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Brinker International (EAT) Increases Despite Market Slip: Here's What You Need to Know

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The most recent trading session ended with Brinker International (EAT - Free Report) standing at $66.50, reflecting a +1.96% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 1.39%. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq lost 2.77%.

The operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy's shares have seen a decrease of 4.17% over the last month, not keeping up with the Retail-Wholesale sector's gain of 3.78% and the S&P 500's gain of 4.43%.

The investment community will be closely monitoring the performance of Brinker International in its forthcoming earnings report. On that day, Brinker International is projected to report earnings of $1.55 per share, which would represent year-over-year growth of 11.51%. At the same time, our most recent consensus estimate is projecting a revenue of $1.15 billion, reflecting a 6.53% rise from the equivalent quarter last year.

Investors should also take note of any recent adjustments to analyst estimates for Brinker International. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.87% higher. Currently, Brinker International is carrying a Zacks Rank of #2 (Buy).

Investors should also note Brinker International's current valuation metrics, including its Forward P/E ratio of 14.33. This expresses a discount compared to the average Forward P/E of 18.8 of its industry.

It is also worth noting that EAT currently has a PEG ratio of 0.7. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants industry had an average PEG ratio of 1.89 as trading concluded yesterday.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 150, positioning it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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