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Brinker International (EAT) Stock Dips While Market Gains: Key Facts

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Brinker International (EAT - Free Report) closed the most recent trading day at $70.12, moving -0.92% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.1% for the day. On the other hand, the Dow registered a loss of 0.08%, and the technology-centric Nasdaq increased by 0.28%.

The operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy's shares have seen an increase of 2.62% over the last month, not keeping up with the Retail-Wholesale sector's gain of 3.31% and the S&P 500's gain of 4.08%.

Investors will be eagerly watching for the performance of Brinker International in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.51, reflecting an 8.63% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.14 billion, reflecting a 6.1% rise from the equivalent quarter last year.

Investors should also pay attention to any latest changes in analyst estimates for Brinker International. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.5% higher. Right now, Brinker International possesses a Zacks Rank of #2 (Buy).

From a valuation perspective, Brinker International is currently exchanging hands at a Forward P/E ratio of 15.76. This valuation marks a discount compared to its industry's average Forward P/E of 18.8.

Also, we should mention that EAT has a PEG ratio of 0.76. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 1.77.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 177, this industry ranks in the bottom 30% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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