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S&P 500   4,026.12
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Biden eases Venezuela sanctions as opposition talks resume
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Airbnb has a plan to fix cleaning fees
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THE BEST BLACK FRIDAY DEAL YET (Ad)
Cuba's informal market finds new space on growing internet
Railway workers in Austria to strike Monday in pay standoff
S&P 500   4,026.12
DOW   34,347.03
QQQ   286.92
Considerations When Rolling Over a 401(k) into a Roth IRA
See how to make money instead of spending it on Black Friday with this offer (Ad)
Biden eases Venezuela sanctions as opposition talks resume
Whole Foods decision to pull lobster divides enviros, pols
THE BEST BLACK FRIDAY DEAL YET (Ad)
Airbnb has a plan to fix cleaning fees
Saudi viewers angry over apparent ban on World Cup streaming
THE BEST BLACK FRIDAY DEAL YET (Ad)
Cuba's informal market finds new space on growing internet
Railway workers in Austria to strike Monday in pay standoff
S&P 500   4,026.12
DOW   34,347.03
QQQ   286.92
Considerations When Rolling Over a 401(k) into a Roth IRA
See how to make money instead of spending it on Black Friday with this offer (Ad)
Biden eases Venezuela sanctions as opposition talks resume
Whole Foods decision to pull lobster divides enviros, pols
THE BEST BLACK FRIDAY DEAL YET (Ad)
Airbnb has a plan to fix cleaning fees
Saudi viewers angry over apparent ban on World Cup streaming
THE BEST BLACK FRIDAY DEAL YET (Ad)
Cuba's informal market finds new space on growing internet
Railway workers in Austria to strike Monday in pay standoff
S&P 500   4,026.12
DOW   34,347.03
QQQ   286.92
Considerations When Rolling Over a 401(k) into a Roth IRA
See how to make money instead of spending it on Black Friday with this offer (Ad)
Biden eases Venezuela sanctions as opposition talks resume
Whole Foods decision to pull lobster divides enviros, pols
THE BEST BLACK FRIDAY DEAL YET (Ad)
Airbnb has a plan to fix cleaning fees
Saudi viewers angry over apparent ban on World Cup streaming
THE BEST BLACK FRIDAY DEAL YET (Ad)
Cuba's informal market finds new space on growing internet
Railway workers in Austria to strike Monday in pay standoff

3 Stocks With Market-Beating Price Performance

Key Points

  • Digi International boasts accelerating earnings growth and strong price action in 2022.
  • Lamb Weston has been trouncing earnings views; analysts see double-digit earnings growth for the next two years. 
  • Wingstop is expected to post earnings and revenue growth when the company reports later this month. 
3 Stocks With Market-Beating Price PerformanceMid-caps Digi International (NASDAQ: DGII), Lamb Weston Holdings (NYSE: LW) and Wingstop (NASDAQ: WING) all climbed higher recently n heavy trading volume, even as the broader market reversed lower. 

As a whole, mid-caps have been slightly outperforming the S&P 500. The SPDR S&P MidCap 400 ETF (NYSEARCA: MDY) is up 5.53% so far this week, while its large-cap counterpart, the SPDR S&P 500 ETF (ASX: SPY) is up 4.48%.

Mid-caps typically are those with a market capitalization between $2 and $10 billion. They often have fewer shares in float than you’ll find with larger stocks. These characteristics make mid-caps somewhat more volatile and riskier than large caps, at least in terms of broad asset classes.  

Digi International advanced 2.34% in nearly triple average turnover Wednesday, tacking on gains to its recent outperformance, which includes gains of:

  • 1 month: +16.19%
  • 3 months: +58.88
  • Year-to-date: +53.32

The Minnesota-based company specializes in the Internet of Things, which involves connecting products, apps, and services through various wireless devices. Those devices can include factory and industrial settings; household applications, such as appliances and security systems; and automotive gear, among many other examples.

Digi International gapped up 15.66% on August 4 following the company’s fiscal third-quarter report, in which it topped earnings and revenue views, as you can see using MarketBeat data on the stock

Earnings growth accelerated in the past two quarters, from 13% to 80%, while revenue growth accelerated from 8% to 31% in the past three quarters. Its three-year annual earnings growth rate is 34%, while revenue grew 12%. 

That level of fundamental strength is driving the stock price increases. An increase in fourth-quarter guidance also helps.

On a technical basis, the stock is in a buy range, but continue to be cognizant of broad-market volatility that could pull it, and any stock, sharply lower. 
3 Stocks With Market-Beating Price Performance

Lamb Weston is in the decidedly unglamorous business of producing, packaging, and distributing frozen potato products to restaurants, as well as via private-label brands for consumers. But potatoes are apparently in high demand: The stock advanced 4.19% Monday following a better-than-expected fiscal first quarter.


Earnings of $0.75 per share marked a 317% increase over the year-ago quarter. MarketBeat earnings data for Lamb Weston show the company trounced views by $0.26 per share. Revenue was slightly disappointing, coming in at $1.13 billion, versus analyst expectations of $1.14 billion. Still, that was a year-over-year increase of 14%.

Other packaged food stocks have held up well recently, and the industry as a whole is among leaders. On Thursday, large-cap food company ConAgra (NYSE: CAG) reported earnings and revenue that topped Wall Street views.

Lamb Weston shares built upon Wednesday’s gains, rallying in Thursday morning trading. Analysts see the company growing earnings by 36% for the full year, which is fiscal 2023. Next year, that’s expected to rise another 32%, to $3.72. That kind of potential is attracting institutional buyers, MarketBeat data show
3 Stocks With Market-Beating Price Performance

Another food-related mid-cap flashing gains for the week is restaurant franchisor Wingstop

There was no specific company news, but the stock has been the subject of recent positive attention from Wall Street, according to MarketBeat analyst data for the stock. In the past month, Stephens initiated coverage with an overweight rating and Wedbush boosted its price target with a rating of outperform 

As noted previously by MarketBeat, Wingstop is among food-related stocks that have been capitalizing on consumers’ willingness to continue purchasing food, including dining out,  even as they cut back on other discretionary items. 

The consensus rating is “moderate buy,” with a price target of $138.65, a potential upside of 4.21%. 

The company is slated to report its fiscal third quarter on October 26, before the opening bell. Analysts expect earnings of $0.35 per share on revenue of $89.30 million. Those would be increases on both the top- and bottom lines. 

Earnings data compiled by MarketBeat show that Wingstop beat earnings views in the most recent quarter, although revenue lagged. That didn’t stop investors from piling in, as margins came in well above views. 
3 Stocks With Market-Beating Price Performance
3 Stocks With Market-Beating Price Performance

Should you invest $1,000 in Digi International right now?

Before you consider Digi International, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Digi International wasn't on the list.

While Digi International currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Digi International (DGII)
2.1946 of 5 stars
$42.39+0.5%N/A78.50Buy$47.00
Lamb Weston (LW)
2.2146 of 5 stars
$86.15-0.3%1.14%31.10Moderate Buy$88.20
Wingstop (WING)
2.3709 of 5 stars
$155.46-1.9%0.49%110.26Moderate Buy$156.06
Conagra Brands (CAG)
2.0419 of 5 stars
$37.12+0.7%3.56%31.19Hold$36.75
SPDR S&P MidCap 400 ETF Trust (MDY)N/A$467.20+0.5%1.26%N/AN/AN/A
SPDR S&P 500 ETF Trust (SPY)
0 of 5 stars
A$0.00-100.0%N/AN/AN/AN/A
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Kate Stalter

About Kate Stalter

Contributing Author: Retirement, Asset Allocation, and Tax Strategies

Kate Stalter is a Series 65-licensed asset manager, with more than two decades of experience in various areas of financial services. As an investment advisor and financial planner, Kate personally manages client portfolios, with a focus on successful retirement, including asset allocation, income generation and tax strategies. Kate also serves as a capital-markets contributor at Forbes.com, and is an expert columnist for the investment advisory channel at U.S. News & World Report.
Contact Kate Stalter via email at stalterkate@gmail.com.