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Sonic has built a wide and loose four-month base. It's seen several wild swings on heavy volume during that time, but has found support at its rising 200-day moving average. It's now 9% off its high.
The firm said last week it will open 200 new drive-in restaurants this year.The hamburger chain sports more than 2,200 stores in 28 states.
Sonic's earnings growth hit a speed bump last quarter, shrinking to 5%. But analysts polled by First Call expect profit to sprout back to 21% and 23% in the next two sessions, more in line with recent performance. Sales have grown by 8% in the last two quarters.
The stock's Relative Strength line is at a new high, a bullish sign. In the last eight weeks, Sonic's Retail-Restaurants group has jumped to 15th from 67thof the 197 industries ...