Jubilant Foodworks Stock
Jubilant Foodworks stock is forming a 9-week, 17% deep Double Bottom base. The current price is only 3% away from its ideal buy price of INR 3025. This is a bullish sign, but the current price of the stock is still slightly below the 10-week moving average. A prudent approach would be to add the stock to your watchlist. This means you can be ready to pounce as the stock moves above the 10-wma line and breaks out to the ideal entry point.
The key trend lines, 10 and 40-week moving averages are at a comfortable position. The current trends of both the averages are upward and the 10-week moving average is trending above the 40-week moving average. The current price of the stock is trading around -0.2% away from the 10-week moving average.
In the last twelve months, Jubilant Foodworks has rallied nearly 92.4% as compared to 56.8% for the Nifty500. It has a Relative Strength Rating of 68. We definitely would like to see improvement in the rating. At this point we are taking a step back and focusing on the RS Line.
The overall long term trend of the RS Line is upward. In the most recent weeks, the line remained flat. This is not unusual for a leading stock as the stock sets up a base for its next leg up or at the very beginning of a new trend. If Jubilant Foodworks can stage a healthy breakout and close above the pivot price, it could make sense as a CANSLIM trade.
Another key part of the jigsaw is institutional sponsorship. Jubilant Foodworks has an Accumulation/Distribution Rating of 'A'. This represents heavy institutional buying over the past 13 weeks. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.
On the earnings front, Jubilant Foodworks has an excellent EPS Rank of 86, which indicates consistency in earnings. The sales for the stock have grown by 4% over the past three years; however the earnings growth remained muted at -7%. Its 3-years earnings stability is 38, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 28% and 11%, respectively. The 5-years earnings stability is 51. The return on equity for the last reported year is 25%.
The stock belongs to the industry group of Retail-Restaurants. You would still want to see some improvement in the industry group rank for the group. The current industry group rank is 89. The current price of Jubilant Foodworks is -9% off from its 52-week high price and 101% above its 52-week low price