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Are Investors Undervaluing Brinker International (EAT) Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10, while its industry has an average P/E of 25.25. Over the past 52 weeks, EAT's Forward P/E has been as high as 13.91 and as low as 9.10, with a median of 11.
EAT is also sporting a PEG ratio of 1.69. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EAT's industry has an average PEG of 2.21 right now. Within the past year, EAT's PEG has been as high as 1.74 and as low as 1.12, with a median of 1.27.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EAT has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.84.
Finally, investors will want to recognize that EAT has a P/CF ratio of 5.33. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. EAT's current P/CF looks attractive when compared to its industry's average P/CF of 18.12. EAT's P/CF has been as high as 7.52 and as low as 4.69, with a median of 5.63, all within the past year.
These are only a few of the key metrics included in Brinker International's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, EAT looks like an impressive value stock at the moment.
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Are Investors Undervaluing Brinker International (EAT) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10, while its industry has an average P/E of 25.25. Over the past 52 weeks, EAT's Forward P/E has been as high as 13.91 and as low as 9.10, with a median of 11.
EAT is also sporting a PEG ratio of 1.69. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EAT's industry has an average PEG of 2.21 right now. Within the past year, EAT's PEG has been as high as 1.74 and as low as 1.12, with a median of 1.27.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EAT has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.84.
Finally, investors will want to recognize that EAT has a P/CF ratio of 5.33. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. EAT's current P/CF looks attractive when compared to its industry's average P/CF of 18.12. EAT's P/CF has been as high as 7.52 and as low as 4.69, with a median of 5.63, all within the past year.
These are only a few of the key metrics included in Brinker International's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, EAT looks like an impressive value stock at the moment.