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Brinker International (EAT) Stock Moves -0.28%: What You Should Know

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The latest trading session saw Brinker International (EAT - Free Report) ending at $132.10, denoting a -0.28% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 1.07%. Meanwhile, the Dow lost 0.97%, and the Nasdaq, a tech-heavy index, lost 1.19%.

Heading into today, shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy had gained 0.15% over the past month, lagging the Retail-Wholesale sector's gain of 0.46% and outpacing the S&P 500's loss of 0.36% 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 forecasted to report an EPS of $1.64, showcasing a 65.66% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.21 billion, indicating a 12.9% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.91 per share and a revenue of $4.83 billion, signifying shifts of +44.15% and +9.31%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Brinker International. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 7.07% increase. Brinker International is currently sporting a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Brinker International is currently exchanging hands at a Forward P/E ratio of 22.43. This indicates a discount in contrast to its industry's Forward P/E of 24.99.

It's also important to note that EAT currently trades at a PEG ratio of 1.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Retail - Restaurants industry stood at 2.31 at the close of the market yesterday.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 80, finds itself in the top 32% echelons of all 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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