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Why the Market Dipped But Brinker International (EAT) Gained Today
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Brinker International (EAT - Free Report) closed the most recent trading day at $172.07, moving +2.42% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.22%. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw a decrease of 0.66%.
The stock of operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy has risen by 21.56% in the past month, leading the Retail-Wholesale sector's loss of 5.51% and the S&P 500's loss of 1.21%.
Market participants will be closely following the financial results of Brinker International in its upcoming release. The company is expected to report EPS of $3.08, up 23.69% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.53 billion, reflecting a 4.7% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.75 per share and revenue of $5.81 billion. These totals would mark changes of +20.79% and +7.89%, respectively, from last year.
Investors might also notice 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 business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Brinker International is currently a Zacks Rank #2 (Buy).
Investors should also note Brinker International's current valuation metrics, including its Forward P/E ratio of 15.63. For comparison, its industry has an average Forward P/E of 20.37, which means Brinker International is trading at a discount to the group.
We can also see that EAT currently has a PEG ratio of 1.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 2.03.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 191, placing it within the bottom 23% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Why the Market Dipped But Brinker International (EAT) Gained Today
Brinker International (EAT - Free Report) closed the most recent trading day at $172.07, moving +2.42% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.22%. Meanwhile, the Dow experienced a drop of 0.03%, and the technology-dominated Nasdaq saw a decrease of 0.66%.
The stock of operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy has risen by 21.56% in the past month, leading the Retail-Wholesale sector's loss of 5.51% and the S&P 500's loss of 1.21%.
Market participants will be closely following the financial results of Brinker International in its upcoming release. The company is expected to report EPS of $3.08, up 23.69% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.53 billion, reflecting a 4.7% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.75 per share and revenue of $5.81 billion. These totals would mark changes of +20.79% and +7.89%, respectively, from last year.
Investors might also notice 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 business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Brinker International is currently a Zacks Rank #2 (Buy).
Investors should also note Brinker International's current valuation metrics, including its Forward P/E ratio of 15.63. For comparison, its industry has an average Forward P/E of 20.37, which means Brinker International is trading at a discount to the group.
We can also see that EAT currently has a PEG ratio of 1.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 2.03.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 191, placing it within the bottom 23% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.