For those looking for quality over quantity, Simply Good Foods is one to check out. It's a small cap stock with about a $1.3 billion run rate, it's near a buy zone, and it boasts some excellent numbers. On Thursday, the Relative Strength Rating for Simply Good Foods stock jumped to 90, up a dozen points from 78 the day before.
The 90 RS Rating puts Denver-based Simply Good Foods stock in the top 10% of all stocks, regardless of industry, in terms of stock price performance. It's an impressive number and what's more impressive is that market research shows that the market's biggest winners often have an RS Rating north of 80 in the early stages of their moves. It easily vaulted above that benchmark.
Simply Good Foods Stock's Other Ratings Even Higher
Simply Good Foods makes and sells Atkins brand diet and nutrition products along with a variety of snacks and health-oriented foods including pizza and prepared meals under the Quest brand.
Among other key ratings, Simply Good Foods has a 96 EPS Rating reflecting robust recent and long-term profit growth. The company also boast a top-notch 98 Composite Rating.
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. Additionally, the food company has an A- Accumulation/Distribution Rating on an A+ to E scale, indicating mutual funds and other big investors are heavy buyers.
Fundamentals Solid
In terms of fundamentals, Simply Good Foods reported a 44% jump in earnings last quarter, to 36 cents per share. That came on a 29% rise in revenue to $296.7 million. The prior three quarters its EPS rose 65%, 45% and 48%. Revenue was up 32%, 17% and 22% in that period.
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Simply Good Foods stock is trying to complete a consolidation with a 43.27 entry. See if it can clear the breakout price in volume at least 40% above average.
Simply Good Foods stock earns the No. 1 rank among its peers in the Food-Confectionery industry group. Hershey is No. 2 and Tootsie Roll Industries is No. 3.
When you're researching the best stocks to buy and watch, be sure to pay attention to relative price strength.
IBD's unique rating measures market leadership 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.
