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Brinker International (EAT) Stock Declines While Market Improves: Some Information for Investors

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In the latest market close, Brinker International (EAT - Free Report) reached $69.29, with a -1% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.75%. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 1%.

Prior to today's trading, shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy had gained 11.34% over the past month. This has outpaced the Retail-Wholesale sector's gain of 7.86% and the S&P 500's gain of 4.03% in that time.

Market participants will be closely following the financial results of Brinker International in its upcoming release. The company's upcoming EPS is projected at $0.63, signifying a 125% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.08 billion, showing a 6.66% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.64 per share and a revenue of $4.58 billion, representing changes of +13.17% and +3.68%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Brinker International. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.01% lower. Right now, Brinker International possesses a Zacks Rank of #3 (Hold).

Investors should also note Brinker International's current valuation metrics, including its Forward P/E ratio of 15.08. Its industry sports an average Forward P/E of 20.27, so one might conclude that Brinker International is trading at a discount comparatively.

Investors should also note that EAT has a PEG ratio of 1.14 right now. 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. The Retail - Restaurants was holding an average PEG ratio of 2.18 at yesterday's closing price.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 157, positioning it in the bottom 38% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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