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Is Brinker International (EAT) Stock Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.49 right now. For comparison, its industry sports an average P/E of 21.10. Over the past year, EAT's Forward P/E has been as high as 18.06 and as low as 8.41, with a median of 11.47.
EAT is also sporting a PEG ratio of 0.63. 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 1.43. Over the last 12 months, EAT's PEG has been as high as 1.70 and as low as 0.56, with a median of 0.72.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.67. This compares to its industry's average P/S of 0.85.
Finally, our model also underscores that EAT has a P/CF ratio of 8.88. 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 current P/CF looks attractive when compared to its industry's average P/CF of 18.33. Within the past 12 months, EAT's P/CF has been as high as 10.50 and as low as 4.34, with a median of 6.30.
These are only a few of the key metrics included in Brinker International's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, EAT looks like an impressive value stock at the moment.
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Is Brinker International (EAT) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.49 right now. For comparison, its industry sports an average P/E of 21.10. Over the past year, EAT's Forward P/E has been as high as 18.06 and as low as 8.41, with a median of 11.47.
EAT is also sporting a PEG ratio of 0.63. 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 1.43. Over the last 12 months, EAT's PEG has been as high as 1.70 and as low as 0.56, with a median of 0.72.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.67. This compares to its industry's average P/S of 0.85.
Finally, our model also underscores that EAT has a P/CF ratio of 8.88. 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 current P/CF looks attractive when compared to its industry's average P/CF of 18.33. Within the past 12 months, EAT's P/CF has been as high as 10.50 and as low as 4.34, with a median of 6.30.
These are only a few of the key metrics included in Brinker International's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, EAT looks like an impressive value stock at the moment.