Brinker International (EAT) closed at $141.65 in the latest trading session, marking a +1.61% move from the prior day. This change outpaced the S&P 500's 0.64% gain on the day. Elsewhere, the Dow saw an upswing of 0.85%, while the tech-heavy Nasdaq appreciated by 0.31%.

The operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy's stock has dropped by 11.99% in the past month, falling short of the Retail-Wholesale sector's loss of 11.57% and the S&P 500's loss of 7.69%.

The investment community will be closely monitoring the performance of Brinker International in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.37, marking a 91.13% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.36 billion, up 21.65% from the prior-year quarter.

EAT's full-year Zacks Consensus Estimates are calling for earnings of $8.15 per share and revenue of $5.24 billion. These results would represent year-over-year changes of +98.78% and +18.65%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Brinker International. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Brinker International boasts a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Brinker International is currently exchanging hands at a Forward P/E ratio of 17.1. This represents a discount compared to its industry's average Forward P/E of 22.82.

We can also see that EAT currently has a PEG ratio of 0.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Restaurants industry currently had an average PEG ratio of 2.07 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 127, this industry ranks in the top 50% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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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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