Dutch Bros Inc-Class A (NYSE:BROS) – A Strong Growth Stock Meeting Minervini’s Criteria

Dutch Bros Inc-Class A (NYSE:BROS) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template. The company, known for its handcrafted beverages and expanding drive-thru shops, demonstrates strong technical and fundamental characteristics that make it a candidate for further analysis.

Why BROS Fits the Minervini Trend Template

The Minervini Trend Template focuses on stocks exhibiting strong uptrends, confirmed by moving averages and relative strength. Here’s how BROS meets these criteria:

• Price Above Key Moving Averages: The stock is trading above its 50-day ($62.04), 150-day ($57.11), and 200-day ($51.02) moving averages, confirming a bullish trend.
• Upward-Sloping Moving Averages: The 150-day and 200-day moving averages are rising, indicating sustained upward momentum.
• Relative Strength: With a ChartMill Relative Strength score of 95.88, BROS outperforms nearly 96% of all stocks, a key factor in Minervini’s strategy.
• 52-Week Performance: The stock is currently 173% above its 52-week low ($26.96) and within 15% of its 52-week high ($86.88), showing strong price momentum.

High Growth Fundamentals

Beyond technical strength, BROS displays robust growth metrics:

• Earnings Growth: EPS grew 40% year-over-year (TTM), with recent quarterly growth accelerating (55.6% in the latest quarter).
• Revenue Growth: Sales increased 30.4% over the past year, with consistent quarterly growth above 27%.
• Profitability Improvements: The profit margin expanded to 4.32% in the latest quarter, up from 1.05% in the prior quarter.
• Analyst Revisions: EPS and revenue estimates for next year have been revised upward by 8.15% over the past three months, signaling improving expectations.

Technical Outlook

The stock currently holds a perfect 10/10 technical rating from ChartMill, reflecting its strong trend and market leadership. However, the setup quality is rated 3/10, suggesting the stock may be extended in the short term. Key support levels are at $61.72-$62.04, while resistance sits near $73.73.

For a deeper technical breakdown, review the full technical report here.

Our High Growth Momentum + Trend Template screener lists more stocks with similar growth and technical strength.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.