BRINKER INTERNATIONAL INC (NYSE:EAT) has been identified as a high-growth momentum stock that aligns with Mark Minervini’s Trend Template. The company, which operates Chili’s Grill & Bar and Maggiano’s Little Italy, demonstrates strong technical and fundamental characteristics that make it a compelling candidate for growth-focused investors.
Why EAT Fits the Minervini Trend Template
Minervini’s strategy focuses on stocks exhibiting strong uptrends, supported by key technical criteria. EAT meets these requirements:
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Price Above Key Moving Averages:
- Current price ($168.47) is above the 50-day ($147.59), 150-day ($141.20), and 200-day SMA ($124.83).
- The 50-day SMA is above both the 150-day and 200-day SMAs, confirming bullish momentum.
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Upward-Trending Moving Averages:
- The 200-day SMA has been rising, indicating a sustained long-term uptrend.
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Strong Relative Strength:
- EAT has a ChartMill Relative Strength (CRS) score of 96.97, meaning it outperforms nearly 97% of all stocks.
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Price Near 52-Week High:
- The stock is trading within 12.3% of its 52-week high ($192.22), a sign of continued strength.
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Significant Recovery from Lows:
- EAT is up 138.5% over the past year, far exceeding the 30% threshold Minervini looks for.
High Growth Momentum Fundamentals
Beyond technical strength, EAT shows robust growth metrics:
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Earnings Growth:
- EPS (TTM) grew 105.6% year-over-year.
- Quarterly EPS growth accelerated, with the latest quarter up 114.5% YoY.
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Revenue Expansion:
- Revenue (TTM) increased 19.8% YoY.
- Recent quarterly sales grew 26.1% compared to the same quarter last year.
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Profitability Improvements:
- Profit margins expanded to 8.35% in the latest quarter, up from 3.51% in the prior fiscal year.
- Free cash flow per share surged 517.3% over the past year.
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Positive Revisions & Estimate Beats:
- Analysts have raised next-year EPS estimates by 4.66% over the past three months.
- The company has beaten EPS estimates in 3 of the last 4 quarters, with an average beat of 21.2%.
Technical Report Summary
EAT has a perfect technical rating of 10/10, reflecting strong price momentum and trend consistency. While the stock is extended in the short term, its long-term uptrend remains intact. Key support levels are found between $146.60 and $150.20, backed by multiple moving averages and trendlines.
For a deeper analysis, review the full technical report on EAT.
Our High Growth Momentum + Trend Template screener lists more stocks that fit this strategy.
Disclaimer
This is not investment advice. Always conduct your own research before making investment decisions.
