It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Based in Dallas, TX, Brinker International owns, operates, develops and franchises various restaurants under Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) brands. The company took over Chili’s, Inc., a Texas-based corporation, in September 1983 and completed the acquisition of Maggiano’s in August 1995.
EAT is a Zacks Rank #1 (Strong Buy) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 16.4X for the current fiscal year compared to the Retail - Restaurants industry's P/E of 23.1X. Additionally, EAT has a PEG Ratio of 0.4 and a Price/Cash Flow ratio of 16.6X. Value investors should also note EAT's Price/Sales ratio of 1.2X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. 10 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $2.32 to $8.15 per share. EAT has an average earnings surprise of 24.7%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding EAT to their portfolios.
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Brinker International, Inc. (EAT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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