Brinker International (EAT) Gains As Market Dips: What You Should Know

Brinker International (EAT) closed at $132.29 in the latest trading session, marking a +0.14% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.43%. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.9%.

Coming into today, shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy had gained 1.45% in the past month. In that same time, the Retail-Wholesale sector lost 1.31%, while the S&P 500 lost 1.98%.

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 $1.64 per share, which would represent year-over-year growth of 65.66%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.21 billion, indicating a 12.9% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.91 per share and revenue of $4.83 billion, which would represent changes of +44.15% and +9.31%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Brinker International. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.07% higher. Brinker International is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Brinker International is presently being traded at a Forward P/E ratio of 22.36. This expresses a discount compared to the average Forward P/E of 24.65 of its industry.

Meanwhile, EAT's PEG ratio is currently 1.36. 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 was holding an average PEG ratio of 2.27 at yesterday's closing price.