Sonic Has Room to Run

The year-to-date relative performance of fast food restaurant operator Sonic (SONC) to competitors Wendy's (WEN) and McDonald's (MCD) is 37% and 27%, respectively, and the technical picture suggests that the company could build on recent gains.

Sonic (SONC) -- Weekly Source: View Chart » View in New Window »

The weekly chart shows the stock price retracing 38% of the 2011 range earlier this year. It pulled back from that level but held at the April low and is making a higher low. This week it is breaking above its 50- and 200-day moving averages and a downtrend line that has been in place for a year. The relative strength indicator is crossing above its centerline, stochastics are making a bullish crossover, and moving average convergence/divergence is trending higher. Volume is still light, but Chaikin money flow is crossing above its 21-period average....174 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.