Simply Good Foods saw a welcome improvement to its Relative Strength (RS) Rating on Thursday, rising from 70 to 75.
This exclusive rating from Investor's Business Daily identifies share price movement with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the last 52 weeks stacks up against all the other stocks in our database.
History reveals that the market's biggest winners tend to have an RS Rating north of 80 as they begin their biggest climbs. See if Simply Good Foods can continue to rebound and clear that threshold.
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Simply Good Foods broke out earlier, but has fallen back below the prior 38.84 entry from a saucer without handle. If a stock you're watching climbs above 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 base and breakout. Also understand that the most recent pattern is a later-stage base, and such bases are more prone to failure.
Earnings growth decreased last quarter from 14% to 11%. But sales moved higher, from 3% to 17%. Keep an eye out for the company's next round of numbers on or around Jan. 9.
Simply Good Foods earns the No. 1 rank among its peers in the Food-Confectionery industry group. Tootsie Roll Indus and Mondelez Intl Cl A are also among the group's highest-rated stocks.
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