On Tuesday, Dave & Buster's got an upgrade to its Relative Strength (RS) Rating, from 64 to 73. As reported earlier, Dave & Buster's stock soared more than 17% early Tuesday, amid its annual investor day, and a week after it reported outstanding earnings results.
Dave & Buster's Stock A Top performer
The upgraded 73 Relative Strength Rating means Dave & Buster's stock has outpaced 73% of all stocks this past year for price performance.
The Coppell, Texas-based company, just north of Dallas, is just 7 points below a key rating milestone. Market research shows that stocks that go on to make the biggest gains typically have an 80 or better RS Rating in the early stages of their moves. See if Dave & Buster's can continue to show renewed price strength and hit that benchmark.
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Dave & Buster's features a casual dining menu and arcade style games in its restaurants. Among its other key ratings, Dave & Buster's stock has a terrific A Accumulation/Distribution Rating, on an A+ to E scale, showing that funds are eager buyers of its stock. The restaurant chain carries a 95 Composite Rating, out of 99. IBD's Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating.
One weak link is its mild 63 Earnings Per Share Rating. That comes from weak profit growth in the summer and fall last year. Profit growth improved significantly over the last two quarters.
Watchlist candidate Dave & Buster's reported 7% earnings growth last quarter to $1.45 per share. Sales shot up 32% to $597.3 million. The prior quarter it recorded a whopping 54% leap in EPS to 80 cents per share as revenue grew 64% to $563.9 million.
Briefly Clears Buy Point
Dave & Buster's stock cleared a consolidation pattern 45.51 buy point early Tuesday. See if it can clear the breakout price in volume at least 40% above average.
Dave & Buster's stock earns the No. 7 rank among its peers in the 53-stock Retail-Restaurants industry group. Popular burrito chain Chipotle Mexican Grill is No. 1 in the group. And Mexican and Tex-Mex chain Chuy's takes the No. 2 spot among the group's highest-rated stocks. The group itself ranks an excellent No. 13 on IBD's list of 197 industry groups.
When researching the best stocks to buy and watch, relative price strength points out potential big winners.
IBD's proprietary RS Rating tracks market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the trailing 52 weeks matched up against all other stocks.
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