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Investors Business Daily
Investors Business Daily
Business
INVESTOR'S BUSINESS DAILY and JAMES DETAR

Cheesecake Factory Generates Sweet Profit Gains, Just Below Buy Point

Cheesecake Factory keeps baking in more profits. Over the past four quarters its EPS growth rate has ranged from 20% to above 1,000%. Its stock is just below a fresh buy point. And on Tuesday the Relative Strength (RS) Rating for Cheesecake stock moved up into a higher percentile, as it got a lift from 67 to 74.

Having a 74 RS Rating means that Cheesecake stock tops 74% of stocks for price performance this past year. History reveals that the best-performing stocks typically have an RS Rating north of 80 as they launch their largest climbs. See if Cheesecake Factory can continue to rebound and clear that threshold.

Can You Really Time The Stock Market?

Cheesecake Stock Ratings Shine

Cheesecake stock is up about 44% in the past year. It's currently building a flat base with a 41.34 entry. Tuesday afternoon Cheesecake stock was up nearly 1% to around 41. See if it can break out in volume at least 40% above average.

Among its other ratings, Calabasas Hills, Calif.-based Cheesecake has a strong 84 Composite Rating out of 99, and a near-best 96 EPS Rating. It also sports a B SMR Rating (sales + profit margins + return on equity) on an A-to-E scale.

The company saw both earnings and sales growth rise last quarter. Earnings growth increased from 20% to 24%, or $1.09 per share. Revenue growth rose from 3% to 4%, reaching $904 million. The next quarterly results are expected on or around Oct. 30.

Among Top 6 In Large Restaurant Group

Cheesecake stock holds the No. 6 rank among its peers in the 54-stock Retail-Restaurants industry group. CAVA Group, Texas Roadhouse and Wingstop are among the top five highly rated stocks in the group.

IBD's unique Relative Strength Rating identifies market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price behavior over the last 52 weeks stacks up against all the other stocks in our database.

Please follow James DeTar on X, formerly known as Twitter, @JimDeTar 

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