One important metric to look for in a stock is an 80 or higher Relative Strength Rating. Yum! Brands just hit that mark, with a jump from 80 to 85 Wednesday.
IBD's proprietary RS Rating identifies technical performance by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the trailing 52 weeks matches up against other publicly traded companies.
History shows that the best stocks tend to have an RS Rating of at least 80 as they begin their biggest runs.
Hone Your Stock-Picking Skills By Focusing On These Factors
Yum! Brands is now considered extended and out of buy range after clearing a 143.20 buy point in a first-stage flat base. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
Yum! Brands saw both earnings and sales growth rise last quarter. Earnings-per-share increased from -5% to 21%. Revenue rose from 7% to 16%.
The company holds the No. 9 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.
RELATED:
Retail Industry News And Stocks To Watch
Stocks With Rising Relative Strength Ratings
Why Should You Use IBD's Relative Strength Rating?
How Relative Strength Line Can Help You Judge A Stock
Ready To Grow Your Investing Skills? Join An IBD Meetup Group!
