Why the high growth investor may take a look at BRINKER INTERNATIONAL INC (NYSE:EAT).

Our stock screener has flagged BRINKER INTERNATIONAL INC (NYSE:EAT) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:EAT for potential movement.

Technical analysis of EAT

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

Taking everything into account, EAT scores 7 out of 10 in our technical rating. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• Looking at the yearly performance, EAT did better than 98% of all other stocks. We also observe that the gains produced by EAT over the past year are nicely spread over this period.
• EAT is one of the better performing stocks in the Hotels, Restaurants & Leisure industry, it outperforms 99% of 134 stocks in the same industry.
• The short term trend is negative, but the long term trend is still positive. So although the long term is still positive, this may be a trend turning.
• EAT is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.
• In the last month EAT has a been trading in the 131.78 - 168.90 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Our latest full technical report of EAT contains the most current technical analsysis.

Why is EAT a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, EAT has a 7 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, EAT also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 145.43. Right above this resistance zone may be a good entry point. We notice that large players showed an interest for EAT in the last couple of days, which is a good sign.

Growth Examination for EAT

ChartMill assigns a High Growth Momentum Rating (HGM) to every stock. This score ranges from 0 to 10 and evaluates the different growth and profitability aspects, including accelleration, surprises and revisions. EAT scores a 6 out of 10:

Earnings Momentum

• The quarterly earnings of EAT have shown a 183.0% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• EAT has experienced 69.67% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• EAT has achieved significant quarter-to-quarter (Q2Q) revenue growth of 26.45%, signaling its ability to capture market opportunities and drive top-line expansion. This growth underscores the company's effective execution and its potential for continued success.
• Accelerating Sales growth for EAT: the current Q2Q growth of 26.45% exceeds the previous quarter Q2Q growth of 12.49%.
• Sales growth accelerated for 3 quarters in a row.
• Over the past 3 months, analysts have adjusted their EPS Estimate for EAT with a 69.51% change. This highlights the evolving outlook on the company's EPS potential.
• With a track record of beating EPS estimates 3 times in the last 4 quarters, EAT showcases its consistent ability to deliver earnings surprises. This reflects the company's strong execution and its competitive position in the market.

Profitability & Financial Strength

• EAT has experienced notable growth in its operating margin over the past year, reflecting improved operational performance. This growth suggests the company's ability to generate higher profits from its core business activities.
• With positive growth in its profit margin over the past year, EAT showcases its ability to improve profitability.
• EAT has experienced notable growth in its free cash flow (FCF) over the past year, signaling improved cash generation and strong financial performance. This growth suggests the company's ability to generate excess cash for reinvestment or shareholder returns.
• In terms of Return on Equity(ROE), EAT is performing well, achieving a 200.0% ratio. This highlights the company's effective allocation of shareholder investments and signifies its commitment to maximizing returns.

Market Strength

• EAT has exhibited strong Relative Strength(RS) in recent periods, with a current 98.46 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position.

More high growth momentum breakout stocks can be found in our High Growth Momentum Breakout screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.