On Tuesday, Lifeway Foods got an upgrade for its IBD SmartSelect Composite Rating from 92 to 96.
The new rating shows the stock is outpacing 96% of all stocks when it comes to the most important 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 an important benchmark to look for when looking for the best stocks to buy and watch.
Lifeway Foods is currently forming a consolidation, with a 27.29 entry. See if the stock can break out in heavy trade at least 40% above average. Be aware that it is a thinly traded stock, with average daily dollar volume under $8 million. Such stocks may show wider daily or weekly fluctuations than stocks with greater liquidity.
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One weak spot is the company's 73 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.
The company posted a 19% increase in earnings for Q2. Top line growth increased 25%, up from 18% in the prior quarter. That marks three consecutive reports with rising growth. The company's next quarterly report is expected on or around Nov. 14.
Lifeway Foods holds the No. 1 rank among its peers in the Food-Dairy Products industry group. Danone ADR and are also among the group's highest-rated stocks.
