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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Brinker International (EAT - Free Report) . EAT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.15. This compares to its industry's average Forward P/E of 26.32. Over the past 52 weeks, EAT's Forward P/E has been as high as 12.26 and as low as 9.10, with a median of 10.07.
Investors will also notice that EAT has a PEG ratio of 1.32. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EAT's PEG compares to its industry's average PEG of 2.36. Within the past year, EAT's PEG has been as high as 1.85 and as low as 1.12, with a median of 1.26.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EAT has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.93.
Finally, investors should note that EAT has a P/CF ratio of 5.81. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. EAT's P/CF compares to its industry's average P/CF of 17.37. Within the past 12 months, EAT's P/CF has been as high as 6.19 and as low as 4.69, with a median of 5.48.
Value investors will likely look at more than just these metrics, but the above data helps show that Brinker International is likely undervalued currently. And when considering the strength of its earnings outlook, EAT sticks out at as one of the market's strongest value stocks.
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Brinker International (EAT - Free Report) . EAT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.15. This compares to its industry's average Forward P/E of 26.32. Over the past 52 weeks, EAT's Forward P/E has been as high as 12.26 and as low as 9.10, with a median of 10.07.
Investors will also notice that EAT has a PEG ratio of 1.32. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EAT's PEG compares to its industry's average PEG of 2.36. Within the past year, EAT's PEG has been as high as 1.85 and as low as 1.12, with a median of 1.26.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EAT has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.93.
Finally, investors should note that EAT has a P/CF ratio of 5.81. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. EAT's P/CF compares to its industry's average P/CF of 17.37. Within the past 12 months, EAT's P/CF has been as high as 6.19 and as low as 4.69, with a median of 5.48.
Value investors will likely look at more than just these metrics, but the above data helps show that Brinker International is likely undervalued currently. And when considering the strength of its earnings outlook, EAT sticks out at as one of the market's strongest value stocks.