Brinker Story

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EAT -- USA Stock  

USD 72.03  1.23  1.74%

With so much uncertainty about the consumer cyclical space, it is fair to review Brinker International against current market trends. As we have suggested previously, Brinker International is beginning its drop as private investors shift to be more bearish due to the increased sector volatility. Brinker International moves indifferently to market moves. The returns on investing in Brinker International and the market returns of the last few months appear unrelated to each other. Stable forward-looking signals of the firm may call for signs of short-horizon price drift for private investors. Brinker International is scheduled to announce its earnings tomorrow. The next fiscal quarter end is expected on the 31st of March 2021.
Published over a month ago
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Is Brinker (NYSE:EAT) outlook positive for March?
The company's average rating is Buy from 17 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Brinker International market sentiment investors' perception of the future value of Brinker. Let us look at a few aspects of Brinker technical analysis. The company has Net Profit Margin of 0.15 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 2.8 %, which entails that for every 100 dollars of revenue, it generated 0.03 of operating income.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Brinker International. In general, we focus on analyzing Brinker International stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Brinker International's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Brinker International's intrinsic value. In addition to deriving basic predictive indicators for Brinker International, we also check how macroeconomic factors affect Brinker International price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Brinker International's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Brinker International in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Brinker International. Your research has to be compared to or analyzed against Brinker International's peers to derive any actionable benefits. When done correctly, Brinker International's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Brinker International.

How does Brinker Stands against Peers?

Analyzing Brinker International competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to Brinker International across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out Brinker International Competition Details

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Brinker International, but it might be worth checking our own buy vs. sell analysis

Closer look at Brinker International Semi Deviation

Brinker International has current Semi Deviation of 3.06. Semi-deviation provides a good measure of downside risk for a equity or a portfolio. It is similar to standard deviation, but it only looks at periods where the returns are less than the target or average level.

Semi-deviation is the square root of semi-variance. Semi-variance is calculated by averaging the deviations of returns that have a result that is less than the mean.

Semi Deviation 
=  
SQRT(SV) 
 = 
3.06
SQRT = Square root notation
SV =   Brinker International semi variance of returns over selected period
Let's now compare Brinker International Semi Deviation to its closest peers:
EAT
BH
BBQ
BDL
CMG
EAT3.059382296845283
BH2.23
BBQ2.23
BDL2.37
CMG1.76

Another small drop for Brinker International

Newest jensen alpha is at 0.52. As of the 31st of January, Brinker International shows the Mean Deviation of 2.69, downside deviation of 3.54, and Risk Adjusted Performance of 0.1371. Brinker International technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to collect data for nineteen technical drivers for Brinker International, which can be compared to its rivals. Please confirm Brinker International information ratio, as well as the relationship between the potential upside and kurtosis to decide if Brinker International is priced correctly, providing market reflects its regular price of 58.88 per share. Given that Brinker International has jensen alpha of 0.5182, we suggest you to validate Brinker International's prevailing market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Brinker International

Whereas some other firms under the restaurants industry are still a bit expensive, Brinker International may offer a potential longer-term growth to private investors. To summarize, as of the 31st of January 2021, our analysis shows that Brinker International moves indifferently to market moves. The firm is overvalued and projects low odds of financial distress for the next 2 years. Our primary 30 days advice on the firm is Cautious Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Brinker International. Please refer to our Terms of Use for any information regarding our disclosure principles.

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