Wingstop stock saw a welcome improvement to its Relative Strength (RS) Rating on Thursday, with an upgrade from 62 to 81.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This proprietary rating tracks market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price performance over the trailing 52 weeks matches up against other publicly traded companies.
Over 100 years of market history shows that the stocks that go on to make the biggest gains typically have an RS Rating of above 80 as they begin their biggest runs.
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Is Wingstop Stock A Buy?
Wingstop stock is working on a cup without handle with a 178.78 buy point. See if the stock can clear the breakout price in volume at least 40% higher than normal. Read "Looking For The Next Big Stock Market Winners? Start With These 3 Steps" for more tips.
The restaurant chain has been trying out the ghost kitchen concept in Manhattan. Ghost kitchens are small food prep/kiosk-like operations with no waiters or dining rooms, with the goal of serving quick online orders.
Chicken Wings Costs Rise
The chicken wing specialist has been spending more on chicken as inflation rises, thus passing on higher costs to customers. It's also looking at other cuts of chicken to mitigate the higher costs of wings.
Earnings grew 28% last quarter, up from -6% in the prior report. Revenue also increased, from 3% to 14%.
WingStop stock earns the No. 10 rank among its peers in the Retail-Restaurants industry group. Darden Restaurants and Ark Restaurants are also among the group's highest-rated stocks. For more industry news, check out "Retail Industry News And Stocks To Watch."
