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Are Investors Undervaluing Brinker International (EAT) Right Now?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Brinker International (EAT - Free Report) . EAT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.93 right now. For comparison, its industry sports an average P/E of 24.06. Over the past year, EAT's Forward P/E has been as high as 13.42 and as low as 8.41, with a median of 10.75.
EAT is also sporting a PEG ratio of 0.72. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EAT's PEG compares to its industry's average PEG of 1.78. Over the last 12 months, EAT's PEG has been as high as 1.92 and as low as 0.56, with a median of 1.21.
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 0.48. This compares to its industry's average P/S of 1.06.
Finally, our model also underscores that EAT has a P/CF ratio of 6.52. 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. EAT's current P/CF looks attractive when compared to its industry's average P/CF of 18.43. Over the past year, EAT's P/CF has been as high as 7.40 and as low as 4.34, with a median of 6.23.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Brinker International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EAT feels like a great value stock at the moment.
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Are Investors Undervaluing Brinker International (EAT) Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Brinker International (EAT - Free Report) . EAT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.93 right now. For comparison, its industry sports an average P/E of 24.06. Over the past year, EAT's Forward P/E has been as high as 13.42 and as low as 8.41, with a median of 10.75.
EAT is also sporting a PEG ratio of 0.72. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EAT's PEG compares to its industry's average PEG of 1.78. Over the last 12 months, EAT's PEG has been as high as 1.92 and as low as 0.56, with a median of 1.21.
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 0.48. This compares to its industry's average P/S of 1.06.
Finally, our model also underscores that EAT has a P/CF ratio of 6.52. 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. EAT's current P/CF looks attractive when compared to its industry's average P/CF of 18.43. Over the past year, EAT's P/CF has been as high as 7.40 and as low as 4.34, with a median of 6.23.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Brinker International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EAT feels like a great value stock at the moment.