Brinker International Inc. (EAT): Today's Featured Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Brinker International ( EAT) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 1.3%. By the end of trading, Brinker International fell $1.11 (-2.9%) to $37.72 on heavy volume. Throughout the day, 5,321,594 shares of Brinker International exchanged hands as compared to its average daily volume of 1,531,900 shares. The stock ranged in price between $36.52-$38.14 after having opened the day at $36.70 as compared to the previous trading day's close of $38.83. Other companies within the Services sector that declined today were: Mecox Lane ( MCOX), down 10.7%, Daegis ( DAEG), down 9.4%, Newlead Holdings ( NEWL), down 8.8% and Birks & Mayors ( BMJ), down 7.9%.
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Brinker International, Inc. owns, develops, operates, and franchises various restaurant brands primarily in the United States. It operates the restaurants under the Chili's Grill & Bar and Maggiano's Little Italy brand names. Brinker International has a market cap of $2.7 billion and is part of the leisure industry. The company has a P/E ratio of 19.0, above the S&P 500 P/E ratio of 17.7. Shares are up 25.3% year to date as of the close of trading on Monday.

TheStreet Ratings rates Brinker International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Caesars Entertainment ( CZR), down 27.3%, Netflix ( NFLX), down 24.4%, Capella Education Company ( CPLA), down 18.1% and Excel Maritime Carriers ( EXM), down 17.3% , were all gainers within the services sector with Whole Foods Market ( WFM) being today's featured services sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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