Brinker International (EAT) ended the recent trading session at $169.19, demonstrating a -1.22% change from the preceding day's closing price. This change lagged the S&P 500's 0.61% gain on the day. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 0.95%.
The stock of operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy has risen by 1.72% in the past month, leading the Retail-Wholesale sector's gain of 0.8% and undershooting the S&P 500's gain of 3.85%.
Market participants will be closely following the financial results of Brinker International in its upcoming release. 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 entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.79 per share and a revenue of $5.35 billion, representing changes of +114.39% and 0%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Brinker International. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.74% higher. Brinker International currently has a Zacks Rank of #3 (Hold).
Investors should also note Brinker International's current valuation metrics, including its Forward P/E ratio of 17.77. Its industry sports an average Forward P/E of 22.22, so one might conclude that Brinker International is trading at a discount comparatively.
We can additionally observe that EAT currently boasts a PEG ratio of 0.44. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 2.61.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 161, finds itself in the bottom 35% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Brinker International, Inc. (EAT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
