Would Mark Minervini consider BELLRING BRANDS INC (NYSE:BRBR) a top stock pick?

Our stock screener has spotted BELLRING BRANDS INC (NYSE:BRBR) as a stocks which checks several boxes as specified by Mark Minervini. We will dive into an analysis below.

Checking the Minervini Trend Template.

The Minervini Trend Template is a set of technical criteria designed to identify stocks in strong uptrends. We can check all the boxes for BRBR:

• ✔ Relative Strength is above 70.
• ✔ Current price is within 25% of it's 52-week high.
• ✔ Current price is at least 30% above it's 52-week low.
• ✔ The current price is above the 50-, 150- and 200-day SMA price line.
• ✔ The SMA(200) is trending upwards.
• ✔ The SMA(150) is above the SMA(200)
• ✔ The SMA(50) is above the SMA(150) and the SMA(200)

Growth Examination for BRBR

Every stock receives a High Growth Momentum Rating (HGM) from ChartMill, ranging from 0 to 10. This rating assesses various growth and profitability aspects, including historical and projected EPS and revenue growth. BRBR boasts a 6 out of 10:

Explosive Earnings Growth

• With a favorable trend in its quarter-to-quarter (Q2Q) earnings per share (EPS), BRBR highlights its ability to generate increasing profitability, showcasing a 34.88% growth.
• BRBR shows accelerating EPS growth: when comparing the current Q2Q growth of 34.88% to the previous quarter Q2Q growth of 24.39%, we see the growth rate improving.
• BRBR has experienced 46.48% growth in EPS over a 12 month period, demonstrating its ability to generate sustained and positive earnings momentum.
• The EPS of BRBR has shown consistent growth over a 3-year period, indicating the company's ability to generate increasing earnings over time.
• BRBR has achieved 23.82% growth in its revenue over the previous quarter, signaling positive momentum in its financial performance and potential market opportunities.
• The sales growth of BRBR is accelerating: the current Q2Q growth of 23.82% is above the previous quarter Q2Q growth of 17.6%. Sales momentum and acceleration are key for high growth systems.
• Sales acceleration happened 2 quarters in a row.
• BRBR has demonstrated strong 1-year revenue growth of 21.0%, reflecting revenue momentum and its ability to generate consistent top-line expansion. This growth underscores the company's strong market position and its potential for future success.
• Analysts' average next Quarter EPS Estimate for BRBR has witnessed a 8.94% change in the last 3 months, underscoring the evolving market expectations towards the company's EPS prospects.
• With a track record of beating EPS estimates in the last 4 quarters, BRBR 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

• The operating margin of BRBR 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.
• BRBR has experienced growth in its profit margin over the past year, reflecting improved operational performance.
• BRBR 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.

Strong Market Performance

• BRBR has achieved an impressive Relative Strength (RS) rating of 90.24, showcasing its ability to outperform the broader market.

Why is BRBR a setup?

ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. BRBR currently has a 8 as setup rating:

BRBR has only a medium technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 71.30, a Stop Loss order could be placed below this zone.

For an up to date full technical analysis you can check the technical report of BRBR

Final Thoughts

Our High Growth Momentum + Trend Template screen will find you more ideas which meet the Minervini criteria.

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.