Tuesday's IBD 50 Stocks To Watch pick, restaurant leader Texas Roadhouse, is approaching a buy point despite the ongoing stock market correction. That makes Texas Roadhouse stock one of the best stocks to watch right now.
Despite its name, Texas Roadhouse is actually headquartered in Louisville, Ky., and yes, it does have restaurants in the Lone Star State. The purveyor of fall-off-the-bone ribs, hand-cut steaks, Texas-size combos and more operates more than 740 restaurants in 49 states and 10 foreign countries.
On Feb. 15, Texas Roadhouse posted accelerating earnings and sales growth. Year-over-year revenue jumped 19% to just under $1.38 billion. Earnings spiked 29% to $1.40 a share. Shares soared more than 10% in response.
Texas Roadhouse is on the IBD Breakout Stocks Index.
The company's first-quarter results are due on May 2. Wall Street expects the company to earn $1.62 a share on sales of $1.3 billion.
Be sure to read how to adjust to changing market conditions, with IBD's new exposure levels.
Texas Roadhouse Stock Nears Latest Buy Point
Texas Roadhouse stock is building a flat base with a 157.12 buy point, according to IBD MarketSurge chart analysis. Meanwhile, an early entry at 155.24 is also in play for more aggressive investors, as the stock rebounds from its 50-day moving average.
Keep in mind the ongoing stock market correction drastically increases the risks of a failed breakout. IBD recommends an equity exposure range of 0%-20% following recent losses on the major stock indexes.
Texas Roadhouse stock boasts a perfect 99 IBD Composite Rating, according to IBD Stock Checkup. That makes it one of the best stocks to watch.
Another big positive is the stock's relative strength line. The RS line is already at new highs ahead of a potential breakout, triggering the bullish blue dot signal. The blue dot appears on IBD MarketSurge charts when an RS line reaches a 52-week high and the stock is building a fresh base or breaking out past a buy point. That's a sign of strong stock market outperformance.
Best Stocks To Watch
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Ascendis Pharma | 161 | Flat base | |
| Datadog | 138.61 | Flat base | |
| Interactive Brokers | 112.50 | Tight area |
Source: IBD Data As Of April 17, 2024
Follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on the best stocks to buy and watch and the stock market.
