Brinker International (EAT) closed the most recent trading day at $156.61, moving -1.02% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.21%. On the other hand, the Dow registered a gain of 0.25%, and the technology-centric Nasdaq increased by 0.45%.
Heading into today, shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy had gained 4.11% over the past month, lagging the Retail-Wholesale sector's gain of 5.92% and outpacing the S&P 500's gain of 3.07%.
Market participants will be closely following the financial results of Brinker International in its upcoming release. The company's earnings per share (EPS) are projected to be $1.71, reflecting a 80% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.32 billion, indicating a 15.5% upward movement from the same quarter last 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.
Investors should also pay attention to any latest changes in analyst estimates for Brinker International. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
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 last 30 days, the Zacks Consensus EPS estimate has moved 5.34% higher. Brinker International is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Brinker International currently has a Forward P/E ratio of 15.57. Its industry sports an average Forward P/E of 20.22, so one might conclude that Brinker International is trading at a discount comparatively.
Meanwhile, EAT's PEG ratio is currently 1.02. 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 2.31 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 23% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Brinker International, Inc. (EAT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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