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Is Brinker International (EAT) a Great Value Stock Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Brinker International (EAT - Free Report) is a stock many investors are watching right now. EAT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.23 right now. For comparison, its industry sports an average P/E of 23.69. Over the past year, EAT's Forward P/E has been as high as 13.96 and as low as 9.95, with a median of 12.06.
We also note that EAT holds a PEG ratio of 1.27. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EAT's industry has an average PEG of 2.01 right now. Over the last 12 months, EAT's PEG has been as high as 1.57 and as low as 0.91, with a median of 1.26.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EAT has a P/S ratio of 0.53. This compares to its industry's average P/S of 1.
Finally, our model also underscores that EAT has a P/CF ratio of 5.79. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. EAT's P/CF compares to its industry's average P/CF of 17.33. Over the past 52 weeks, EAT's P/CF has been as high as 8.40 and as low as 5.29, with a median of 6.82.
These are just a handful of the figures considered in Brinker International's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EAT is an impressive value stock right now.
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Is Brinker International (EAT) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Brinker International (EAT - Free Report) is a stock many investors are watching right now. EAT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.23 right now. For comparison, its industry sports an average P/E of 23.69. Over the past year, EAT's Forward P/E has been as high as 13.96 and as low as 9.95, with a median of 12.06.
We also note that EAT holds a PEG ratio of 1.27. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EAT's industry has an average PEG of 2.01 right now. Over the last 12 months, EAT's PEG has been as high as 1.57 and as low as 0.91, with a median of 1.26.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EAT has a P/S ratio of 0.53. This compares to its industry's average P/S of 1.
Finally, our model also underscores that EAT has a P/CF ratio of 5.79. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. EAT's P/CF compares to its industry's average P/CF of 17.33. Over the past 52 weeks, EAT's P/CF has been as high as 8.40 and as low as 5.29, with a median of 6.82.
These are just a handful of the figures considered in Brinker International's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EAT is an impressive value stock right now.