We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Brinker International (EAT) Stock Sinks As Market Gains: Here's Why
Read MoreHide Full Article
Brinker International (EAT - Free Report) closed at $47.91 in the latest trading session, marking a -0.6% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.15%. Elsewhere, the Dow saw a downswing of 0.02%, while the tech-heavy Nasdaq appreciated by 0.32%.
The operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy's stock has climbed by 0.33% in the past month, falling short of the Retail-Wholesale sector's gain of 1.12% and the S&P 500's gain of 1.65%.
Analysts and investors alike will be keeping a close eye on the performance of Brinker International in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.14, marking a 7.32% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.12 billion, indicating a 3.12% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.70 per share and revenue of $4.34 billion, which would represent changes of +30.74% and +4.89%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Brinker International. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.36% increase. Right now, Brinker International possesses a Zacks Rank of #2 (Buy).
Looking at valuation, Brinker International is presently trading at a Forward P/E ratio of 13.03. For comparison, its industry has an average Forward P/E of 21.52, which means Brinker International is trading at a discount to the group.
Also, we should mention that EAT has a PEG ratio of 0.78. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Restaurants was holding an average PEG ratio of 1.81 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 147, finds itself in the bottom 42% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Brinker International (EAT) Stock Sinks As Market Gains: Here's Why
Brinker International (EAT - Free Report) closed at $47.91 in the latest trading session, marking a -0.6% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.15%. Elsewhere, the Dow saw a downswing of 0.02%, while the tech-heavy Nasdaq appreciated by 0.32%.
The operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy's stock has climbed by 0.33% in the past month, falling short of the Retail-Wholesale sector's gain of 1.12% and the S&P 500's gain of 1.65%.
Analysts and investors alike will be keeping a close eye on the performance of Brinker International in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.14, marking a 7.32% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.12 billion, indicating a 3.12% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.70 per share and revenue of $4.34 billion, which would represent changes of +30.74% and +4.89%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Brinker International. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.36% increase. Right now, Brinker International possesses a Zacks Rank of #2 (Buy).
Looking at valuation, Brinker International is presently trading at a Forward P/E ratio of 13.03. For comparison, its industry has an average Forward P/E of 21.52, which means Brinker International is trading at a discount to the group.
Also, we should mention that EAT has a PEG ratio of 0.78. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Restaurants was holding an average PEG ratio of 1.81 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 147, finds itself in the bottom 42% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.