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Brinker International (EAT) Stock Sinks As Market Gains: Here's Why
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Brinker International (EAT - Free Report) closed at $126.68 in the latest trading session, marking a -4.73% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.41% for the day. Meanwhile, the Dow experienced a rise of 0.18%, and the technology-dominated Nasdaq saw an increase of 0.31%.
The operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy's stock has dropped by 14.75% in the past month, falling short of the Retail-Wholesale sector's gain of 1.09% and the S&P 500's gain of 3.15%.
Analysts and investors alike will be keeping a close eye on the performance of Brinker International in its upcoming earnings disclosure. In that report, analysts expect Brinker International to post earnings of $1.71 per share. This would mark year-over-year growth of 80%. In the meantime, our current consensus estimate forecasts the revenue to be $1.32 billion, indicating a 15.5% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.16 per share and revenue of $5.68 billion, which would represent changes of +14.16% and +5.46%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Brinker International. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Brinker International is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Brinker International is currently trading at a Forward P/E ratio of 13.09. This denotes a discount relative to the industry average Forward P/E of 23.58.
It is also worth noting that EAT currently has a PEG ratio of 0.86. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.32.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 199, this industry ranks in the bottom 20% of all industries, numbering over 250.
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.
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Brinker International (EAT) Stock Sinks As Market Gains: Here's Why
Brinker International (EAT - Free Report) closed at $126.68 in the latest trading session, marking a -4.73% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.41% for the day. Meanwhile, the Dow experienced a rise of 0.18%, and the technology-dominated Nasdaq saw an increase of 0.31%.
The operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy's stock has dropped by 14.75% in the past month, falling short of the Retail-Wholesale sector's gain of 1.09% and the S&P 500's gain of 3.15%.
Analysts and investors alike will be keeping a close eye on the performance of Brinker International in its upcoming earnings disclosure. In that report, analysts expect Brinker International to post earnings of $1.71 per share. This would mark year-over-year growth of 80%. In the meantime, our current consensus estimate forecasts the revenue to be $1.32 billion, indicating a 15.5% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.16 per share and revenue of $5.68 billion, which would represent changes of +14.16% and +5.46%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Brinker International. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Brinker International is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Brinker International is currently trading at a Forward P/E ratio of 13.09. This denotes a discount relative to the industry average Forward P/E of 23.58.
It is also worth noting that EAT currently has a PEG ratio of 0.86. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.32.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 199, this industry ranks in the bottom 20% of all industries, numbering over 250.
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.