Quantcast

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


Shutterstock photo

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.

Looking For The Best Stocks To Buy And Watch? Start Here

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.

RELATED:

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



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



More from Investor's Business Daily

Subscribe






Investor's Business Daily
Contributor:

Investor's Business Daily

Investing










Research Brokers before you trade

Want to trade FX?