On Wednesday, Portillo's cleared an important performance benchmark, with its Relative Strength (RS) Rating climbing into the 90-plus percentile with an improvement to 91, a rise from 87 the day before.
IBD's unique RS Rating measures market leadership by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database.
Decades of market research shows that the best stocks tend to have an RS Rating north of 80 as they launch their largest climbs.
How To Use Stock Charts To Stay Profitable And Protected
Portillo's broke out earlier, but has fallen back below the prior 14.43 entry from a cup without handle. If a stock you're watching breaks past a buy point then declines 7% or more below the original entry price, it's considered a failed base. It's best to wait for the stock to form a new pattern and breakout. Also understand that the latest pattern is a later-stage base, which makes it riskier to establish a new position or add shares to an existing one.
Portillo's posted 31% EPS growth in the latest quarterly report. Revenue increased -2%.
The company earns the No. 11 rank among its peers in the Retail-Restaurants industry group. Dutch Bros, Brinker International and Cheesecake Factory are among the top 5 highly rated stocks within the group.
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