If you're trying to build your earnings season watchlist by looking for stocks setting up in a base ahead of earnings, here's one that fits the bill: Highly ranked nutrition and snacks maker Simply Good Foods. It's slated to release its latest numbers on the morning of June 30 and is currently about 20% below a 45.87 buy point. The current formation for Simply Good Foods stock is a first-stage consolidation.
Simply Good Foods No. 1 In Group
Simply Good Foods has an outstanding 97 Composite Rating and earns the No. 1 rank among its peers in the Food-Confectionery industry group. Hershey and Tootsie Roll Industries are also among the group's highest-rated stocks.
Among other key ratings for Simply Good Foods, it boasts a 97 EPS Rating, reflecting strong recent quarters and years profit growth. Its 90 Relative Strength Rating shows that its stock is outperforming 90% of all stocks in terms of price appreciation.
See How IBD Helps You Make More Money In Stocks
Additionally, Simply Good Foods, the parent of the Atkins and Quest branded foods, stands to benefit from a trend to healthy foods and snacks.
Last quarter Simply Good Foods reported 44% higher earnings, on a year-over-year basis, to 36 cents per share. EPS the prior three stanzas rose 65%, 45% and 48%. It reported strong double-digit revenue gains over the past year too. In its most recent quarter, the Denver-based company reported a 29% rise in sales to $296.7 million.
Analysts See Pause In Strong Profit Growth
Analysts polled by FactSet expect EPS to dip 18% for the current quarter, and to rise 14% for the full year.
Buying a stock just ahead of earnings involves risk since you typically don't have enough time to establish a profit cushion before the latest quarterly numbers come out. Following sound buy and sell rules can help minimize exposure.
Simply Good Foods stock was up 2% Friday afternoon at 37.15
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
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