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Is Brinker International (EAT) Stock Undervalued 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Brinker International (EAT - Free Report) . EAT is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.04. This compares to its industry's average Forward P/E of 24.44. Over the last 12 months, EAT's Forward P/E has been as high as 28.31 and as low as 13.04, with a median of 17.42.
Investors should also note that EAT holds a PEG ratio of 0.85. 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 1.94. EAT's PEG has been as high as 1.72 and as low as 0.35, with a median of 0.52, all within the past year.
Finally, we should also recognize that EAT has a P/CF ratio of 10.75. 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 23.16. Over the past year, EAT's P/CF has been as high as 19.36 and as low as 9.71, with a median of 13.93.
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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Is Brinker International (EAT) Stock Undervalued 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Brinker International (EAT - Free Report) . EAT is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.04. This compares to its industry's average Forward P/E of 24.44. Over the last 12 months, EAT's Forward P/E has been as high as 28.31 and as low as 13.04, with a median of 17.42.
Investors should also note that EAT holds a PEG ratio of 0.85. 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 1.94. EAT's PEG has been as high as 1.72 and as low as 0.35, with a median of 0.52, all within the past year.
Finally, we should also recognize that EAT has a P/CF ratio of 10.75. 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 23.16. Over the past year, EAT's P/CF has been as high as 19.36 and as low as 9.71, with a median of 13.93.
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.