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Should Value Investors Buy Brinker International (EAT) Stock?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Brinker International (EAT - Free Report) . EAT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.02 right now. For comparison, its industry sports an average P/E of 23.48. Over the past 52 weeks, EAT's Forward P/E has been as high as 13.42 and as low as 8.41, with a median of 10.78.
Investors should also note that EAT holds a PEG ratio of 0.72. 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 1.82. Over the past 52 weeks, EAT's PEG has been as high as 1.92 and as low as 0.56, with a median of 1.19.
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 0.5. This compares to its industry's average P/S of 1.02.
Finally, investors will want to recognize that EAT has a P/CF ratio of 6.62. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 18.09. Within the past 12 months, EAT's P/CF has been as high as 7.15 and as low as 4.34, with a median of 6.23.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Brinker International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EAT feels like a great value stock at the moment.
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Should Value Investors Buy Brinker International (EAT) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Brinker International (EAT - Free Report) . EAT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.02 right now. For comparison, its industry sports an average P/E of 23.48. Over the past 52 weeks, EAT's Forward P/E has been as high as 13.42 and as low as 8.41, with a median of 10.78.
Investors should also note that EAT holds a PEG ratio of 0.72. 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 1.82. Over the past 52 weeks, EAT's PEG has been as high as 1.92 and as low as 0.56, with a median of 1.19.
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 0.5. This compares to its industry's average P/S of 1.02.
Finally, investors will want to recognize that EAT has a P/CF ratio of 6.62. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 18.09. Within the past 12 months, EAT's P/CF has been as high as 7.15 and as low as 4.34, with a median of 6.23.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Brinker International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EAT feels like a great value stock at the moment.