Yum China Enters Buy Zone, Earns Stock Rating Upgrade

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Yum China ( YUMC ) had its Relative Strength ( RS ) Rating upgraded from 90 to 93 Tuesday.

[ibd-display-video id=2102289 width=50 float=left autostart=true] IBD's proprietary rating identifies price performance with a 1 (worst) to 99 (best) score. The score shows how a stock's price performance over the trailing 52 weeks compares to all the other stocks in our database.

Decades of market research shows that the best stocks tend to have an RS Rating north of 80 in the early stages of their moves.

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Yum China is still inside a buying range after breaking past a 42.22 entry in a consolidation . The proper buying range extends to 5% above the initial entry. Once a stock hits that benchmark, it's best to hold off investing and wait for it to set up another buying opportunity..

Earnings growth fell last quarter from 35% to 8%. But revenue gains moved higher, from 0% to 8%.

Yum China earns the No. 6 rank among its peers in the Retail-Restaurants industry group. Bob Evans Farms ( BOBE ), Restaurant Brands International ( QSR ) and Ruths Hospitality ( RUTH ) are among the top 5 highly rated stocks within the group.


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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: YUMC , RS , QSR , RUTH

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