Brinker International (EAT) Surpasses Market Returns: Some Facts Worth Knowing

In the latest close session, Brinker International (EAT) was up +1.02% at $166.18. The stock's performance was ahead of the S&P 500's daily gain of 0.32%. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.26%. Shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy have depreciated by 8.01% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 3.84%, and the S&P 500's gain of 4.51%.Market participants will be closely following the financial results of Brinker International in its upcoming release. The company's earnings per share (EPS) are projected to be $2.4, reflecting a 49.07% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.4 billion, indicating a 16.17% increase compared to the same quarter of the previous year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.81 per share and revenue of $5.35 billion, indicating changes of +114.88% and 0%, respectively, compared to the previous year. Investors might also notice recent changes to analyst estimates for Brinker International. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. 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. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.06% upward. Brinker International is holding a Zacks Rank of #2 (Buy) right now. Investors should also note Brinker International's current valuation metrics, including its Forward P/E ratio of 17.02. This represents a discount compared to its industry average Forward P/E of 20.84. Meanwhile, EAT's PEG ratio is currently 0.43. 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. EAT's industry had an average PEG ratio of 2.65 as of yesterday's close. The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 39% of all 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. Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions. Should You Invest in Brinker International, Inc. (EAT)?Before you invest in Brinker International, Inc. (EAT), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks