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Should Value Investors Buy Brinker International (EAT) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.30, while its industry has an average P/E of 24.99. Over the last 12 months, EAT's Forward P/E has been as high as 12.77 and as low as 5.54, with a median of 8.95.
Investors should also note that EAT holds a PEG ratio of 1.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EAT's PEG compares to its industry's average PEG of 1.85. EAT's PEG has been as high as 1.75 and as low as 0.47, with a median of 0.85, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EAT has a P/S ratio of 0.45. This compares to its industry's average P/S of 1.14.
Finally, investors will want to recognize that EAT has a P/CF ratio of 7.54. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 20.40. Over the past year, EAT's P/CF has been as high as 7.62 and as low as 3.22, with a median of 5.20.
If you're looking for another solid Retail - Restaurants value stock, take a look at Dave & Buster's Entertainment (PLAY - Free Report) . PLAY is a # 2 (Buy) stock with a Value score of A.
Dave & Buster's Entertainment is currently trading with a Forward P/E ratio of 12.43 while its PEG ratio sits at 0.68. Both of the company's metrics compare favorably to its industry's average P/E of 24.99 and average PEG ratio of 1.85.
Over the last 12 months, PLAY's P/E has been as high as 17, as low as 8.46, with a median of 11.21, and its PEG ratio has been as high as 1.13, as low as 0.56, with a median of 0.75.
Dave & Buster's Entertainment also has a P/B ratio of 5.89 compared to its industry's price-to-book ratio of -20.97. Over the past year, its P/B ratio has been as high as 8.77, as low as 4.23, with a median of 5.31.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Brinker International and Dave & Buster's Entertainment are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EAT and PLAY feels like a great value stock at the moment.
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Should Value Investors Buy Brinker International (EAT) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.30, while its industry has an average P/E of 24.99. Over the last 12 months, EAT's Forward P/E has been as high as 12.77 and as low as 5.54, with a median of 8.95.
Investors should also note that EAT holds a PEG ratio of 1.73. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EAT's PEG compares to its industry's average PEG of 1.85. EAT's PEG has been as high as 1.75 and as low as 0.47, with a median of 0.85, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EAT has a P/S ratio of 0.45. This compares to its industry's average P/S of 1.14.
Finally, investors will want to recognize that EAT has a P/CF ratio of 7.54. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 20.40. Over the past year, EAT's P/CF has been as high as 7.62 and as low as 3.22, with a median of 5.20.
If you're looking for another solid Retail - Restaurants value stock, take a look at Dave & Buster's Entertainment (PLAY - Free Report) . PLAY is a # 2 (Buy) stock with a Value score of A.
Dave & Buster's Entertainment is currently trading with a Forward P/E ratio of 12.43 while its PEG ratio sits at 0.68. Both of the company's metrics compare favorably to its industry's average P/E of 24.99 and average PEG ratio of 1.85.
Over the last 12 months, PLAY's P/E has been as high as 17, as low as 8.46, with a median of 11.21, and its PEG ratio has been as high as 1.13, as low as 0.56, with a median of 0.75.
Dave & Buster's Entertainment also has a P/B ratio of 5.89 compared to its industry's price-to-book ratio of -20.97. Over the past year, its P/B ratio has been as high as 8.77, as low as 4.23, with a median of 5.31.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Brinker International and Dave & Buster's Entertainment are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EAT and PLAY feels like a great value stock at the moment.