Brinker International (EAT) closed at $144.81 in the latest trading session, marking a -0.42% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.08% for the day. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw an increase of 0.52%.

The operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy's shares have seen a decrease of 5.28% over the last month, surpassing the Retail-Wholesale sector's loss of 9.1% and the S&P 500's loss of 7.33%.

Market participants will be closely following the financial results of Brinker International in its upcoming release. On that day, Brinker International is projected to report earnings of $2.37 per share, which would represent year-over-year growth of 91.13%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.36 billion, up 21.65% from the year-ago period.

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.

Investors should also note any recent changes to analyst estimates for Brinker International. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain 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).

Valuation is also important, so investors should note that Brinker International has a Forward P/E ratio of 17.84 right now. This represents a discount compared to its industry's average Forward P/E of 23.19.

We can also see that EAT currently has a PEG ratio of 0.47. 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 2.12 at yesterday's closing price.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 140, placing it within the bottom 45% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow EAT in the coming trading sessions, be sure to utilize Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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