In the latest close session, Brinker International (EAT) was down 1.27% at $157.23. The stock's change was less than the S&P 500's daily gain of 0.8%. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq gained 1.6%.
The operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy's shares have seen an increase of 11.54% over the last month, surpassing the Retail-Wholesale sector's gain of 7.22% and the S&P 500's gain of 5.15%.
Investors will be eagerly watching for the performance of Brinker International in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.86, showcasing a 7.52% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.48 billion, up 3.86% from the year-ago period.
EAT's full-year Zacks Consensus Estimates are calling for earnings of $10.7 per share and revenue of $5.81 billion. These results would represent year-over-year changes of +20.22% and +7.94%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.15% increase. Brinker International presently features a Zacks Rank of #3 (Hold).
Investors should also note Brinker International's current valuation metrics, including its Forward P/E ratio of 14.89. This represents a discount compared to its industry average Forward P/E of 19.11.
Also, we should mention that EAT has a PEG ratio of 1.12. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 1.89.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 185, placing it within the bottom 25% of over 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.
To follow EAT in the coming trading sessions, be sure to utilize Zacks.com.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>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 Report
This article originally published on Zacks Investment Research (zacks.com).