Brinker International (EAT) closed at $185.00 in the latest trading session, marking a -1.19% move from the prior day. This move was narrower than the S&P 500's daily loss of 1.21%. Elsewhere, the Dow lost 0.97%, while the tech-heavy Nasdaq lost 2.15%.
The operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy's shares have seen an increase of 10.22% over the last month, surpassing the Retail-Wholesale sector's gain of 2.27% and the S&P 500's gain of 0.42%.
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 $3.07 per share. This would mark year-over-year growth of 23.29%. Our most recent consensus estimate is calling for quarterly revenue of $1.53 billion, up 4.7% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $10.76 per share and a revenue of $5.8 billion, demonstrating changes of +20.9% and +7.81%, respectively, from the preceding year.
Any recent changes to analyst estimates for Brinker International should also be noted by investors. 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 shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.34% decrease. As of now, Brinker International holds a Zacks Rank of #3 (Hold).
In terms of valuation, Brinker International is presently being traded at a Forward P/E ratio of 15.12. Its industry sports an average Forward P/E of 20.11, so one might conclude that Brinker International is trading at a discount comparatively.
Investors should also note that EAT has a PEG ratio of 1.11 right now. 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. The Retail - Restaurants industry currently had an average PEG ratio of 1.96 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 209, positioning it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWant 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 Report
This article originally published on Zacks Investment Research (zacks.com).