How To Trade Texas Roadhouse – TXRH – As of 1 June 2017

Here’s my opinion on how to trade TXRH.

how to trade TXRH

The stock is positively structured on multiple timeframes.  

It recently filled the gap created on May 2nd and started to bounce.

With sales growth of 10% over last year and 17% over last quarter, the market is responding positively to Texas Roadhouse.

I would buy the stock anywhere around these levels with a stop below either 1 or 2.  

If price does break below 2, take TXRH off your buy list for the time being.

Here’s the chart:

how to trade TXRH

Here are the metrics as of Thursday 1 June 2017:

how to trade TXRH

Company Profile (via Yahoo Finance): 

Texas Roadhouse, Inc., together with its subsidiaries, operates full-service casual dining restaurants in the United States and internationally. The company operates and franchises its restaurants under the Texas Roadhouse name. It also operates sports restaurants under the Bubba’s 33 name. In addition, the company provides supervisory and administrative services for other franchise restaurants. As of February 21, 2017, it owned and operated 520 restaurants in 49 states and 6 foreign countries. The company was founded in 1993 and is based in Louisville, Kentucky.

Texas Roadhouse, Inc.’s ISS Governance QualityScore as of May 1, 2017 is 3. The pillar scores are Audit: 2; Board: 6; Shareholder Rights: 4; Compensation: 3.

Corporate governance scores courtesy of Institutional Shareholder Services (ISS). Scores indicate decile rank relative to index or region. A decile score of 1 indicates lower governance risk, while a 10 indicates higher governance risk.
The Trader On How To Trade TXRH:
I’m a long time fan of TXRH.  I’ve never eaten there, but the stock’s performance has been sweet for years.
As usual, a purchase a bit lower would have been optimal.  
But in truth, how much better would $48.50 or so have been really?  
At any rate, this formation has historically offered great returns.  As long as you size your position appropriately, then whatever the outcome of the trade, it will be worth the risk.
Trade well,
The Trader