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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 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.
One company value investors might notice is Brinker International (EAT - Free Report) . EAT is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 14.56, which compares to its industry's average of 21.52. EAT's Forward P/E has been as high as 18.06 and as low as 8.41, with a median of 11.47, all within the past year.
EAT is also sporting a PEG ratio of 0.71. 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 industry currently sports an average PEG of 1.46. Over the last 12 months, EAT's PEG has been as high as 1.72 and as low as 0.56, with a median of 0.74.
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 0.68. This compares to its industry's average P/S of 0.79.
Finally, investors will want to recognize that EAT has a P/CF ratio of 9.25. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. EAT's P/CF compares to its industry's average P/CF of 18.75. Over the past 52 weeks, EAT's P/CF has been as high as 10.50 and as low as 4.34, with a median of 6.30.
Investors could also keep in mind El Pollo Loco (LOCO - Free Report) , an Retail - Restaurants stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, El Pollo Loco has a P/B ratio of 1.32 while its industry's price-to-book ratio sits at -58.79. For LOCO, this valuation metric has been as high as 1.38, as low as 1, with a median of 1.18 over the past year.
These are only a few of the key metrics included in Brinker International and El Pollo Loco strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EAT and LOCO look like an impressive 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 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.
One company value investors might notice is Brinker International (EAT - Free Report) . EAT is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 14.56, which compares to its industry's average of 21.52. EAT's Forward P/E has been as high as 18.06 and as low as 8.41, with a median of 11.47, all within the past year.
EAT is also sporting a PEG ratio of 0.71. 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 industry currently sports an average PEG of 1.46. Over the last 12 months, EAT's PEG has been as high as 1.72 and as low as 0.56, with a median of 0.74.
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 0.68. This compares to its industry's average P/S of 0.79.
Finally, investors will want to recognize that EAT has a P/CF ratio of 9.25. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. EAT's P/CF compares to its industry's average P/CF of 18.75. Over the past 52 weeks, EAT's P/CF has been as high as 10.50 and as low as 4.34, with a median of 6.30.
Investors could also keep in mind El Pollo Loco (LOCO - Free Report) , an Retail - Restaurants stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, El Pollo Loco has a P/B ratio of 1.32 while its industry's price-to-book ratio sits at -58.79. For LOCO, this valuation metric has been as high as 1.38, as low as 1, with a median of 1.18 over the past year.
These are only a few of the key metrics included in Brinker International and El Pollo Loco strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EAT and LOCO look like an impressive value stock at the moment.