Brinker International (EAT) ended the recent trading session at $144.18, demonstrating a -5.67% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.13%. On the other hand, the Dow registered a loss of 0.27%, and the technology-centric Nasdaq decreased by 0.07%.
The operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy's shares have seen a decrease of 1.94% over the last month, not keeping up with the Retail-Wholesale sector's gain of 2.5% and the S&P 500's gain of 2.71%.
The upcoming earnings release of Brinker International will be of great interest to investors. The company is forecasted to report an EPS of $1.71, showcasing a 80% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.32 billion, reflecting a 15.5% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.16 per share and a revenue of $5.68 billion, representing changes of +14.16% and +5.46%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Brinker International. Such recent modifications usually signify the changing landscape of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.52% lower within the past month. Brinker International is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Brinker International is currently being traded at a Forward P/E ratio of 15.04. This indicates a discount in contrast to its industry's Forward P/E of 20.14.
It's also important to note that EAT currently trades at a PEG ratio of 0.99. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Restaurants industry currently had an average PEG ratio of 2.32 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 182, positioning it in the bottom 27% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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