Brinker International (EAT) ended the recent trading session at $185.26, demonstrating a +2.56% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.42%. Elsewhere, the Dow saw an upswing of 0.29%, while the tech-heavy Nasdaq appreciated by 0.29%.
The stock of operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy has risen by 13.8% in the past month, leading the Retail-Wholesale sector's gain of 0.24% and the S&P 500's gain of 2.2%.
Market participants will be closely following the financial results of Brinker International in its upcoming release. The company is predicted to post an EPS of $3.08, indicating a 23.69% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.53 billion, indicating a 4.7% increase compared to the same quarter of the previous year.
EAT's full-year Zacks Consensus Estimates are calling for earnings of $10.75 per share and revenue of $5.81 billion. These results would represent year-over-year changes of +20.79% and +7.89%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Brinker International boasts a Zacks Rank of #2 (Buy).
Looking at valuation, Brinker International is presently trading at a Forward P/E ratio of 14.54. Its industry sports an average Forward P/E of 19.93, so one might conclude that Brinker International is trading at a discount comparatively.
We can also see that EAT currently has a PEG ratio of 1.12. 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. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 1.94.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 181, placing it within the bottom 27% of over 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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).