Growth stocks are appealing to investors due to their above-average financial growth potential. However, finding the right growth stock can be challenging as they come with higher risk and volatility. The Zacks Growth Style Score can help identify promising growth stocks by analyzing a company’s growth prospects beyond traditional measures.
Brinker International (NYSE:EAT) is one such stock recommended by the Zacks system. It has a favorable Growth Score and a top Zacks Rank, indicating strong growth potential.
The stock of Brinker International, which operates restaurant chains like Chili’s Grill & Bar and Maggiano’s Little Italy, stands out for several reasons. Firstly, its projected earnings growth for this year is 41.5%, well above the industry average. This strong earnings growth is a key factor for investors seeking growth opportunities.
Additionally, Brinker International has an impressive asset utilization ratio of 1.72, indicating efficient use of assets to generate sales. The company’s sales growth is also expected to outperform the industry average, further enhancing its growth prospects.
Moreover, positive earnings estimate revisions for Brinker International validate its growth potential. The Zacks Consensus Estimate for the current year has seen an upward trend, signaling optimism among analysts.
Overall, Brinker International’s combination of a strong Growth Score and positive earnings estimate revisions make it a compelling choice for growth investors. With a Zacks Rank #2, the company is well-positioned for outperformance in the market. Investors looking for growth opportunities may consider investing in Brinker International.