Brinker International (EAT): My Best Stock for May 2025
Brinker International (EAT) is the owner of Chili's which is offering up a delicious combination of growth and value for investors making it my Stock of the Week selection.
This story originally appeared on WallStreetZen
I added Brinker International (EAT) to my Zen Investor portfolio on May 7th. Since then it has provided a rocket ride higher for investors.
The best part is that today traders are taking some profits off the table providing a well timed pullback allowing new investors to get on board at a better price. Here is the rest of the story…
You know them better as the restaurant company that owns Chili's. They are on a hell of an earnings momentum run since late 2022 where EPS has risen 3X and the share price has rallied 6X from valley to recent peak.
Just like most stocks, they hit the skids earlier this year. But the continued sell off after their most recent beat and raise is a bit of a head scratcher.
From what I see their only concern with tariffs is the cost of avocados. If that is your biggest problem...then you don't really have a problem as the growth prospects for the Chili's brand should remain quite robust.
This is best seen in the $8.78 EPS estimate for this year which is more than twice as good as last year at only $4.10. The pace of growth is expected to moderate into 2026 yet still impressive with a $9.79 outlook.
The Zen Ratings are picking up on the fundamental attractiveness of shares with an A rating overall. Even better than that it is in the top 2% of all stocks analyzed plus;
Top 20% Value
Top 7% Growth
Top 6% Financials
In my book Growth and Financials are the most important components of the Zen Ratings to increase the odds of more earnings beats ahead to propel shares higher.
Top analysts are also picking up what EAT is putting down. Like the $170 target from John Tower of Citigroup. Even better is the $208 street high target from the analyst at Goldman Sachs.
With shares trading under $150, and such a bright earnings outlook, then you should be happy to EAT up these shares on the fortunate dip given their stellar upside prospects.
What To Do Next?
Brinker International (EAT) is just one of the stellar 18 stocks found in my Zen Investor portfolio.
I pick these stocks based upon their attractiveness in our proven Zen Ratings model. Plus keying in on lessons learned over my 45 year investing career.
Over that time I have seen 7 bear markets, 8 bull markets, and just about everything between.
Analyzing this current investment landscape led me to add new 3 stocks earlier in May that are perfectly suited for this market environment.
The only way to see these top picks is to become a Zen Investor member.
Gladly that is a very simple process. And right now comes with the ability to save up to 50% on your membership.
Discover the Zen Investor & My Top Stocks Now >
Wishing you a world of investment success!
Steve Reitmeister…but everyone calls me Reity (pronounced 'Righty')
Editor of the Zen Investor
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