In a welcome move, Wingstop saw its Relative Strength Rating improve from 69 to 76 on Tuesday. It is not quite 'cooking with gas', but getting closer as it clears the 200-day moving average.
When you're researching the best stocks to buy and watch, be sure to pay attention to relative price strength.
IBD's proprietary RS Rating measures market leadership by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
Decades of market research shows that the best stocks often have an RS Rating north of 80 as they begin their largest price moves. See if Wingstop can continue to show renewed price strength and clear that threshold.
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Wingstop is trying to complete a consolidation with a 223.77 entry. Now that it has cleared key moving averages, let's see if it can also clear the breakout price in heavy trading.
Wingstop posted 27% earnings growth last quarter, while sales growth came in at 28%.
The company earns the No. 9 rank among its peers in the Retail-Restaurants industry group. Flanigan's Enterp and First Watch Restaurant are also among the group's highest-rated stocks.
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