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Is Brinker International (EAT) Stock Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Brinker International (EAT - Free Report) . EAT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.40, which compares to its industry's average of 23.87. EAT's Forward P/E has been as high as 13.42 and as low as 8.41, with a median of 10.75, all within the past year.
We also note that EAT holds a PEG ratio of 0.69. 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 1.78. Over the past 52 weeks, EAT's PEG has been as high as 1.92 and as low as 0.56, with a median of 1.45.
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 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 0.48. This compares to its industry's average P/S of 0.93.
Finally, our model also underscores that EAT has a P/CF ratio of 6.17. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.15. Over the past 52 weeks, EAT's P/CF has been as high as 7.61 and as low as 4.34, with a median of 6.28.
Another great Retail - Restaurants stock you could consider is Carrols Restaurant Group (TAST - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Additionally, Carrols Restaurant Group has a P/B ratio of 2.82 while its industry's price-to-book ratio sits at -28.39. For TAST, this valuation metric has been as high as 2.83, as low as 0.67, with a median of 1.88 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Brinker International and Carrols Restaurant Group are likely undervalued currently. And when considering the strength of its earnings outlook, EAT and TAST sticks out as one of the market's strongest value stocks.
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Is Brinker International (EAT) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Brinker International (EAT - Free Report) . EAT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 11.40, which compares to its industry's average of 23.87. EAT's Forward P/E has been as high as 13.42 and as low as 8.41, with a median of 10.75, all within the past year.
We also note that EAT holds a PEG ratio of 0.69. 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 1.78. Over the past 52 weeks, EAT's PEG has been as high as 1.92 and as low as 0.56, with a median of 1.45.
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 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 0.48. This compares to its industry's average P/S of 0.93.
Finally, our model also underscores that EAT has a P/CF ratio of 6.17. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 18.15. Over the past 52 weeks, EAT's P/CF has been as high as 7.61 and as low as 4.34, with a median of 6.28.
Another great Retail - Restaurants stock you could consider is Carrols Restaurant Group (TAST - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Additionally, Carrols Restaurant Group has a P/B ratio of 2.82 while its industry's price-to-book ratio sits at -28.39. For TAST, this valuation metric has been as high as 2.83, as low as 0.67, with a median of 1.88 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Brinker International and Carrols Restaurant Group are likely undervalued currently. And when considering the strength of its earnings outlook, EAT and TAST sticks out as one of the market's strongest value stocks.