Sprouts Farmers Market Shows Market Leadership With Jump To 84 RS Rating

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One important metric to look for in a stock is an 80 or higher Relative Strength Rating . Sprouts Farmers Market ( SFM ) just hit that mark, with a jump from 80 to 84 Wednesday.

[ibd-display-video id=2881825 width=50 float=left autostart=true] IBD's proprietary rating measures share price movement with a 1 (worst) to 99 (best) score. The grade shows how a stock's price performance over the last 52 weeks compares to all the other stocks in our database.

History reveals that the best stocks often have an 80 or higher RS Rating as they launch their biggest price moves.

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The IBD 50 stock broke out earlier, but has fallen back below the prior 26.08 entry from a consolidation . If a stock you're tracking clears a buy point then retreats 7% or more below the original entry price, it's considered a failed base. Wait for the stock to set up and breakout from a new base and buy point. Also understand that the most recent consolidation is a later-stage base, and those involve more risk.

Regarding fundamentals, Sprouts Farmers Market has posted three quarters of rising earnings growth. Sales growth has also increased during the same period.

The company earns the No. 1 rank among its peers in the Retail-Super/Mini Markets industry group. Murphy USA ( MUSA ) and Kroger ( KR ) are also among the group's highest-rated stocks.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks
Referenced Symbols: SFM , MUSA , KR

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