Sprouts Farmers Market stock saw a welcome improvement to its Relative Strength (RS) Rating on Tuesday, rising from 76 to 85.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's unique RS Rating identifies technical performance by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the trailing 52 weeks matches up against the rest of the market.
History shows that the market's biggest winners tend to have an RS Rating of above 80 in the early stages of their moves.
Looking For The Best Stocks To Buy And Watch? Start Here
Is Sprouts Farmers Market Stock A Buy?
Sprouts Farmers Market stock has been trading below its 50- and 200-day moving averages. Now is not an ideal time to jump in since it isn't near a proper buy zone, but see if the supermarket stock goes on to establish and enter a buying range in heavy volume.
While EPS growth dropped last quarter from 13% to 10%, the top line grew 5%, up from 4% in the prior report. The company is expected to report its latest earnings and sales numbers on or around Nov. 4.
Sprouts Farmers Market stock holds the No. 8 rank among its peers in the Retail-Super/Mini Markets industry group. TravelCenters of America and Caseys General Stores are also among the group's highest-rated stocks.
