Krispy Kreme went public in 2021 amid the pandemic, after quickly spreading stores across the country selling its popular fresh doughnuts. Oddly, its stock hasn't kept pace. It hit a 21.69 high in July 2021 and hasn't done much since then. Until now. After two quarters of strong profit growth and rising sales, Krispy Kreme on Tuesday got a rating upgrade as its Relative Strength (RS) Rating rose from 66 to 73. It's trading just below a buy point. Could it be ready for a breakout?
The upgraded 73 RS Rating shows that Krispy Kreme stock outperformed 73% of all stocks in terms of price appreciation over the past year. It's approaching an important milestone. Market research shows that the best-performing stocks typically have an RS Rating north of 80 as they begin their largest runs. See if Krispy Kreme can continue to rebound and hit that benchmark.
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Krispy Kreme stock also has a terrific 90 Composite Rating, out of 99. The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score. The best growth stocks have a Composite Rating of 90 or better.
The Charlotte, N.C.-based doughnut shops operator also has a strong 87 EPS Rating, putting it in the top 13% of all companies for recent quarters and years profit growth, with special emphasis on the two most recent quarters. Its C+ Accumulation/Distribution Rating shows that funds are buying more shares than selling. Further, 223 funds held Krispy Kreme shares in the March-ended quarter, up from 202 last September.
Watchlist candidate Krispy Kreme stock is building a flat base with a 15.89 buy point. See if the stock can break out in heavy volume. On Tuesday, it closed at 14.70, up 2.3% on a strong day for the overall market.
While EPS growth decreased in the company's most recent performance report from 38% a year earlier to 13%, or 9 cents per share, revenue grew 12% to $419 million, up from 9% growth the previous quarter.
Krispy Kreme stock earns the No. 20 rank among its peers in the Retail-Restaurants industry group. Dave & Buster's and Chuy's Holdings are among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
The exclusive Relative Strength Rating from Investor's Business Daily measures market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price movement over the trailing 52 weeks holds up against all the other stocks in our database.
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