Brinker International (EAT) closed at $184.02 in the latest trading session, marking a +2.05% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.11% for the day. Meanwhile, the Dow experienced a rise of 0.91%, and the technology-dominated Nasdaq saw a decrease of 0.82%.
Prior to today's trading, shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy had gained 2.51% lagged the Retail-Wholesale sector's gain of 2.53% and the S&P 500's gain of 5.17%.
Investors will be eagerly watching for the performance of Brinker International in its upcoming earnings disclosure. In that report, analysts expect Brinker International to post earnings of $2.39 per share. This would mark year-over-year growth of 48.45%. Our most recent consensus estimate is calling for quarterly revenue of $1.4 billion, up 16.17% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.79 per share and a revenue of $5.35 billion, signifying shifts of +114.39% and 0%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Brinker International. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% higher. Right now, Brinker International possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Brinker International is currently trading at a Forward P/E ratio of 20.51. For comparison, its industry has an average Forward P/E of 22.7, which means Brinker International is trading at a discount to the group.
We can also see that EAT currently has a PEG ratio of 0.51. 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 2.56.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 148, positioning it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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