Brinker International (EAT – Free Report) ended the recent trading session at $136.64, demonstrating a +1.16% swing from the preceding day’s closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.23%. At the same time, the Dow lost 0.91%, and the tech-heavy Nasdaq gained 0.1%.
The operator of restaurant chains Chili’s Grill & Bar and Maggiano’s Little Italy’s shares have seen a decrease of 4.46% over the last month, surpassing the Retail-Wholesale sector’s loss of 11.71% and the S&P 500’s loss of 12.13%.
The upcoming earnings release of Brinker International will be of great interest to investors. The company’s upcoming EPS is projected at $2.43, signifying a 95.97% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.36 billion, reflecting a 21.65% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.30 per share and revenue of $5.24 billion, which would represent changes of +102.44% and +18.65%, respectively, from the prior year.
Any recent changes to analyst estimates for Brinker International should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Brinker International possesses a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Brinker International has a Forward P/E ratio of 16.27 right now. This indicates a discount in contrast to its industry’s Forward P/E of 21.48.
Also, we should mention that EAT has a PEG ratio of 0.43. 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. EAT’s industry had an average PEG ratio of 2.02 as of yesterday’s close.
The Retail – Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 168, placing it within the bottom 33% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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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