The IBD SmartSelect Composite Rating for Shake Shack rose from 94 to 96 Wednesday.
The new score means the company is now outperforming 96% of all stocks in terms of the most important fundamental and technical stock-picking criteria. The market's biggest winners often have a 95 or higher grade in the early stages of a new price run, so that's a good starting point when looking for the best stocks to buy and watch.
Shake Shack is unfortunately now out of buy range after breaking out from a 61.39 buy point in a consolidation. Best chance now is to wait for a new pattern to form or maybe a pullback to a key moving average. Then look for a bounce on increased volume.
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One weak spot is the company's 63 EPS Rating, which tracks quarterly and annual earnings-per-share growth. Look for that to improve to 80 or better to show it's in the top 20% of all stocks.
Its Accumulation/Distribution Rating of B shows moderate buying by institutional investors over the last 13 weeks.
SHAK Earnings
The company posted 0% earnings-per-share growth for Q1. Revenue growth climbed 25%, up from 17% in the prior report. That marks one quarter of increasing revenue growth.
Shake Shack earns the No. 5 rank among its peers in the Retail-Restaurants industry group. Chipotle Mexican Grill is the No. 1-ranked stock within the group.
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