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Are You a Value Investor? This 1 Stock Could Be the Perfect Pick

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

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.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

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Brinker International (EAT)

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 corporation from September 1983 and completed the acquisition of Maggiano’s in August 1995.

EAT is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 12.2X for the current fiscal year compared to the Retail - Restaurants industry's P/E of 21X. Additionally, EAT has a PEG Ratio of 0.7 and a Price/Cash Flow ratio of 6.8X. Value investors should also note EAT's Price/Sales ratio of 0.5X.

A company's earnings performance is important for value investors as well. For fiscal 2024, five analysts revised their earnings estimate higher in the last 60 days for EAT, while the Zacks Consensus Estimate has increased $0.02 to $3.71 per share. EAT also holds an average earnings surprise of 212.7%.

Investors should take the time to consider EAT for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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Brinker International, Inc. (EAT) : Free Stock Analysis Report

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Zacks Investment Research