When considering what names to put on your watch list, look for stocks with an 80 or higher RS Rating. Chefs' Warehouse just cleared that benchmark with an upgrade from 80 to 84.
IBD's unique RS Rating identifies market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price action over the last 52 weeks matches up against the rest of the market.
History shows that the stocks that go on to make the biggest gains typically have an RS Rating north of 80 in the early stages of their moves.
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Chefs' Warehouse is now considered extended and out of buy range after clearing a 43.38 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 line.
Chefs' Warehouse showed 9% EPS growth last quarter. Revenue rose 6%.
Chefs' Warehouse earns the No. 2 rank among its peers in the Food-Miscellaneous Preparation industry group. Fresh Del Monte Produce is the top-ranked stock within the group.
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