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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Brinker International (EAT - Free Report) is a stock many investors are watching right now. 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 14.94 right now. For comparison, its industry sports an average P/E of 22.88. Over the last 12 months, EAT's Forward P/E has been as high as 14.94 and as low as 8.41, with a median of 11.03.
Investors will also notice that EAT has a PEG ratio of 0.79. 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. EAT's PEG compares to its industry's average PEG of 1.92. EAT's PEG has been as high as 1.92 and as low as 0.56, with a median of 0.74, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EAT has a P/S ratio of 0.66. This compares to its industry's average P/S of 0.84.
Finally, investors should note that EAT has a P/CF ratio of 9.10. 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 17.25. EAT's P/CF has been as high as 9.10 and as low as 4.34, with a median of 6.22, all within the past year.
These are just a handful of the figures considered in Brinker International's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EAT is an impressive value stock right now.
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Brinker International (EAT - Free Report) is a stock many investors are watching right now. 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 14.94 right now. For comparison, its industry sports an average P/E of 22.88. Over the last 12 months, EAT's Forward P/E has been as high as 14.94 and as low as 8.41, with a median of 11.03.
Investors will also notice that EAT has a PEG ratio of 0.79. 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. EAT's PEG compares to its industry's average PEG of 1.92. EAT's PEG has been as high as 1.92 and as low as 0.56, with a median of 0.74, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EAT has a P/S ratio of 0.66. This compares to its industry's average P/S of 0.84.
Finally, investors should note that EAT has a P/CF ratio of 9.10. 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 17.25. EAT's P/CF has been as high as 9.10 and as low as 4.34, with a median of 6.22, all within the past year.
These are just a handful of the figures considered in Brinker International's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EAT is an impressive value stock right now.