Texas Roadhouse (TXRH) Stock Surges on High Demand and Strong Fundamentals

Texas Roadhouse, Inc. (TXRH) shares have surged, vaulting 14% in 2023. The casual dining restaurant chain recently announced Q4 earnings and raised their quarterly dividend a cool 19% to .55 per share. The latter can be viewed as a positive given management’s belief in the overall outlook.

But there’s another reason to take notice of TXRH stock. Heavy demand has been lifting the shares recently.

Texas Roadhouse Stock Is Under Accumulation

So, what’s accumulation? Said simply, that’s when a stock climbs in price alongside chunky volumes. It’s indicative of institutions betting on the shares.

Smart money managers are always looking for the next outperforming stock. Texas Roadhouse is both attractive on a fundamental basis and momentum basis.

This could set up well for the stock going forward. Let’s check in on the supply and demand for the stock.

Each green bar signals big trading volumes as the stock ramped in price:

Since October, the shares attracted 10 unusual buy signals. Demand for the stock has been high. Those repeated green bars could mean more upside is ahead.

Now, let’s check out the fundamental action grabbing my attention:

Texas Roadhouse Fundamental Analysis

Next, it’s a good idea to check under the hood. Meaning, I want to make sure the fundamental story is strong too. As you can see, TXRH has been growing sales and EPS at a healthy clip. According to Factset,

• 1-year sales growth rate (+15.9%)
• 3-year EPS growth rate (+204.4%)

Marrying great fundamentals with technically superior stocks is a winning recipe over the long-term.

In fact, TXRH has been a top-rated stock multiple times at my research firm, MAPsignals. That means the stock has buy pressure, strong technicals, and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

Let’s wrap up.

Texas Roadhouse Price Prediction

The Texas Roadhouse rally could have further to go. Healthy buying in the shares is signaling to take notice. Shares could be positioned for further upside.

Please note, shares could be extended at these levels given the large accumulation signals.

Disclosure: the author holds no positions in TXRH at the time of publication.

Learn more about the MAPsignals process here.

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