On Monday, BJ's Restaurants got an upgrade on its Relative Strength (RS) Rating. It jumped a full 15 points, from 66 to 81. The upgraded 81 RS Rating shows that BJ's Restaurants stock has outperformed 81% of all stocks for price appreciation this past year.
It's significant in another way. Market research shows that top-performing stocks tend to have an RS Rating north of 80 as they launch their biggest runs.
BJ's Restaurants owns and operates its namesake restaurants and breweries. It also operates under BJ's Pizza and Grill in 30 states.
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BJ's Stock Has Top-Notch Composite
Among other key ratings BJ's stock has a strong 90 Composite Rating. The IBD Composite Rating helps investors easily measure the quality of a stock's fundamental and technical metrics. The best growth stocks have a Composite Rating of 90 or better.
Additionally, it has an 81 EPS Rating, and a C+ Accumulation/Distribution Rating. The C+ rating shows that funds are buying slightly more shares of BJ's than selling.
BJ's Restaurants stock is trying to complete a consolidation with a 36.24 buy point. See if the stock can clear the breakout price in volume at least 40% higher than normal. On Monday, it dropped 3.7% to 30.49 in light volume, in sync with market consolidation. It still trades above both its 50-day moving average and its 200-day.
Profit Grew 150% Last Quarter
Revenue grew 14% last quarter to $341.3 million. But earnings growth was the star last quarter as it rose 150% to 15 cents per share. That was up from 128% year-over-year EPS growth the prior quarter.
BJ's Restaurants stock earns the No. 19 rank among its peers in the hot Retail-Restaurants industry group. Newport Beach, Calif.-based Chipotle Mexican Grill and Louisville, Ky.-based Texas Roadhouse are among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This unique rating tracks technical performance by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the last 52 weeks matches up against the rest of the market.
