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Should Value Investors Buy Brinker International (EAT) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Brinker International (EAT - Free Report) is a stock many investors are watching right now. EAT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.69, which compares to its industry's average of 25.67. Over the last 12 months, EAT's Forward P/E has been as high as 12.77 and as low as 5.54, with a median of 9.74.
Investors should also note that EAT holds a PEG ratio of 1.50. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EAT's PEG compares to its industry's average PEG of 1.94. EAT's PEG has been as high as 1.75 and as low as 0.47, with a median of 0.87, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EAT has a P/S ratio of 0.41. This compares to its industry's average P/S of 1.04.
Finally, investors will want to recognize that EAT has a P/CF ratio of 6.91. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. EAT's current P/CF looks attractive when compared to its industry's average P/CF of 21.26. Within the past 12 months, EAT's P/CF has been as high as 7.62 and as low as 3.22, with a median of 5.36.
Investors could also keep in mind Jack In The Box (JACK - Free Report) , an Retail - Restaurants stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Jack In The Box currently holds a Forward P/E ratio of 14.12, and its PEG ratio is 0.83. In comparison, its industry sports average P/E and PEG ratios of 25.67 and 1.94.
JACK's Forward P/E has been as high as 14.96 and as low as 8.30, with a median of 12.19. During the same time period, its PEG ratio has been as high as 0.88, as low as 0.49, with a median of 0.72.
Jack In The Box also has a P/B ratio of -2.56 compared to its industry's price-to-book ratio of -22.86. Over the past year, its P/B ratio has been as high as -1.52, as low as -2.62, with a median of -2.21.
Value investors will likely look at more than just these metrics, but the above data helps show that Brinker International and Jack In The Box are likely undervalued currently. And when considering the strength of its earnings outlook, EAT and JACK sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Brinker International (EAT) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Brinker International (EAT - Free Report) is a stock many investors are watching right now. EAT is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.69, which compares to its industry's average of 25.67. Over the last 12 months, EAT's Forward P/E has been as high as 12.77 and as low as 5.54, with a median of 9.74.
Investors should also note that EAT holds a PEG ratio of 1.50. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EAT's PEG compares to its industry's average PEG of 1.94. EAT's PEG has been as high as 1.75 and as low as 0.47, with a median of 0.87, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EAT has a P/S ratio of 0.41. This compares to its industry's average P/S of 1.04.
Finally, investors will want to recognize that EAT has a P/CF ratio of 6.91. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. EAT's current P/CF looks attractive when compared to its industry's average P/CF of 21.26. Within the past 12 months, EAT's P/CF has been as high as 7.62 and as low as 3.22, with a median of 5.36.
Investors could also keep in mind Jack In The Box (JACK - Free Report) , an Retail - Restaurants stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Jack In The Box currently holds a Forward P/E ratio of 14.12, and its PEG ratio is 0.83. In comparison, its industry sports average P/E and PEG ratios of 25.67 and 1.94.
JACK's Forward P/E has been as high as 14.96 and as low as 8.30, with a median of 12.19. During the same time period, its PEG ratio has been as high as 0.88, as low as 0.49, with a median of 0.72.
Jack In The Box also has a P/B ratio of -2.56 compared to its industry's price-to-book ratio of -22.86. Over the past year, its P/B ratio has been as high as -1.52, as low as -2.62, with a median of -2.21.
Value investors will likely look at more than just these metrics, but the above data helps show that Brinker International and Jack In The Box are likely undervalued currently. And when considering the strength of its earnings outlook, EAT and JACK sticks out as one of the market's strongest value stocks.