Exploring high growth characteristics of BRINKER INTERNATIONAL INC (NYSE:EAT).

Our stockscreener has identified a possible breakout setup on BRINKER INTERNATIONAL INC (NYSE:EAT). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NYSE:EAT for potential opportunities.

What is the technical picture of EAT telling us.

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Taking everything into account, EAT scores 9 out of 10 in our technical rating. Both in the recent history as in the last year, EAT has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that EAT is one of the better performing stocks in the market, outperforming 98% of all stocks. We also observe that the gains produced by EAT over the past year are nicely spread over this period.
• EAT is part of the Hotels, Restaurants & Leisure industry. There are 136 other stocks in this industry. EAT outperforms 98% of them.
• EAT is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so EAT slightly outperforms the market at the moment.
• In the last month EAT has a been trading in the 122.07 - 158.35 range, which is quite wide. It is currently trading near the high of this range.

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

How does the Setup look for EAT

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for EAT is 7:

EAT has an excellent technical rating and 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 150.34. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 135.56, a Stop Loss order could be placed below this zone.

High Growth Analysis for EAT

ChartMill employs its own High Growth Momentum Rating (HGM) system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth and profitability factors, such as EPS and revenue growth, as well as accelleration, surprises and revision history. EAT has earned a 6:

Explosive Earnings Growth

• The earnings per share (EPS) of EAT have shown positive growth on a quarter-to-quarter (Q2Q) basis, with a 183.0% increase. This reflects the company's ability to improve its profitability over time.
• Over the past year, EAT has demonstrated 69.67% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• The recent q2q revenue growth of 26.45% of EAT showcases the company's ability to generate increasing revenue in a short period, reflecting its positive growth trajectory.
• Accelerating Sales growth for EAT: the current Q2Q growth of 26.45% exceeds the previous quarter Q2Q growth of 12.49%.
• Sales acceleration happened 3 quarters in a row.
• EAT has seen a 69.0% change in the average next Quarter EPS Estimate by analysts over the last 3 months, signaling the shifting perception of the company's EPS outlook.
• EAT has surpassed EPS estimates 3 times in the last 4 quarters, reflecting its strong financial performance and effective management. This trend suggests the company's ability to generate positive earnings surprises and drive shareholder value.

Financial Strength & Profitability

• The operating margin of EAT has seen steady growth over the past year, signaling improved profitability. This trend indicates the company's effective cost management and its ability to generate higher returns.
• With a favorable trend in its profit margin over the past year, EAT demonstrates its ability to enhance profitability through efficient operations.
• With a favorable trend in its free cash flow (FCF) over the past year, EAT demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• EAT exhibits a strong Return on Equity (ROE) of 200.0%, indicating the company's ability to generate solid returns on shareholder investments. This metric reflects the company's efficient utilization of equity capital and its profitability.

Strong Market Performance

• The Relative Strength (RS) of EAT has been consistently solid, with a current 98.9 rating. This highlights the stock's ability to exhibit sustained price strength and signifies its competitive advantage.

More ideas for high growth momentum breakouts can be found on ChartMill 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.