Brinker International (EAT – Free Report) ended the recent trading session at $139.52, demonstrating a +2% swing from the preceding day’s closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.16%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq lost 0.06%.
Heading into today, shares of the operator of restaurant chains Chili’s Grill & Bar and Maggiano’s Little Italy had gained 7.74% over the past month, outpacing the Retail-Wholesale sector’s loss of 4.84% and the S&P 500’s loss of 2.8% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Brinker International in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.64, indicating a 65.66% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.21 billion, up 12.9% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.91 per share and revenue of $4.83 billion, indicating changes of +44.15% and +9.31%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Brinker International. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 7.07% higher. Brinker International is currently a Zacks Rank #2 (Buy).
With respect to valuation, Brinker International is currently being traded at a Forward P/E ratio of 23.16. This signifies no noticeable deviation in comparison to the average Forward P/E of 23.16 for its industry.
It is also worth noting that EAT currently has a PEG ratio of 1.41. 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. By the end of yesterday’s trading, the Retail – Restaurants industry had an average PEG ratio of 2.02.
The Retail – Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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