Is a good buy eat now ?
8/15/2024 03:02am
**Brinker International (EAT) does not appear to be a strong buy at the moment**, and here's why:
1. **Analyst Sentiments and Forecasts**:
- The general EAT stock forecast sentiment is bearish, with more bearish signals (14) than bullish signals (12) from technical analysis indicators.
- Analysts forecast a decrease in the stock price, expecting it to drop by -2.83% to $68.10 by August 19, 2024.
- The stock is trading 7.19% above the forecast price, suggesting it may be overvalued at the current time.
2. **Recent Performance and Financial Metrics**:
- Brinker International's stock has experienced a significant year-to-date gain of over 60% before the recent financial report.
- The company reported a 13.52% gross profit margin and $48.7 million net income.
- The debt-to-equity ratio is not provided, but the free cash flow is $164.55 million, which could indicate financial stability.
|Ticker|Name|Date|Gross Profit Margin|Total Revenue|Dividend Yield (TTM)|Net Income|ROE(Average)|Diluted EPS|code|market_code|
|---|---|---|---|---|---|---|---|---|---|---|
|EAT.N|Brinker International|20240814|||||||EAT|169|
|EAT.N|Brinker International|20240930|13.5177|1.1203E9||4.87E7||1.08|EAT|169|
3. **Market and Technical Indicators**:
- The stock is currently trading below its 50-day and 200-day simple moving averages, which could be seen as bearish signals.
- The stock has been going up and down, with a 3.93% gain for the last 2 weeks.
- The RSI is not provided, but the stock has experienced green days, indicating positive movement.
4. **Upcoming Expectations**:
- For the upcoming trading day, the expected range is between $67.38 and $73.42, with a possible trading interval of +/-$3.02 (+/-4.29%) up or down from the last closing price.
- The stock is expected to fall -3.23% during the next 3 months, with a 90% probability to hold a price between $56.95 and $70.82.
In conclusion, while Brinker International has shown positive growth in revenue and net income, the bearish analyst sentiment and the stock's current overvaluation suggest caution. Investors should consider these factors before making a purchase decision.