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Is Bloomin' Brands (BLMN) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Bloomin' Brands (BLMN - Free Report) . BLMN is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Investors will also notice that BLMN has a PEG ratio of 0.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BLMN's industry currently sports an average PEG of 1.91. Over the past 52 weeks, BLMN's PEG has been as high as 0.76 and as low as 0.68, with a median of 0.71.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BLMN has a P/S ratio of 0.49. This compares to its industry's average P/S of 1.03.
Finally, investors should note that BLMN has a P/CF ratio of 7.87. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 20.91. Within the past 12 months, BLMN's P/CF has been as high as 8.99 and as low as 3.99, with a median of 6.65.
Jack In The Box (JACK - Free Report) may be another strong Retail - Restaurants stock to add to your shortlist. JACK is a # 2 (Buy) stock with a Value grade of A.
Jack In The Box is currently trading with a Forward P/E ratio of 14.08 while its PEG ratio sits at 0.83. Both of the company's metrics compare favorably to its industry's average P/E of 25.24 and average PEG ratio of 1.91.
JACK's price-to-earnings ratio has been as high as 14.96 and as low as 8.30, with a median of 12.19, while its PEG ratio has been as high as 0.88 and as low as 0.49, with a median of 0.72, all within the past year.
Jack In The Box also has a P/B ratio of -2.55 compared to its industry's price-to-book ratio of -22.09. Over the past year, its P/B ratio has been as high as -1.52, as low as -2.62, with a median of -2.21.
These are just a handful of the figures considered in Bloomin' Brands and Jack In The Box's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BLMN and JACK is an impressive value stock right now.
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Is Bloomin' Brands (BLMN) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Bloomin' Brands (BLMN - Free Report) . BLMN is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Investors will also notice that BLMN has a PEG ratio of 0.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BLMN's industry currently sports an average PEG of 1.91. Over the past 52 weeks, BLMN's PEG has been as high as 0.76 and as low as 0.68, with a median of 0.71.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BLMN has a P/S ratio of 0.49. This compares to its industry's average P/S of 1.03.
Finally, investors should note that BLMN has a P/CF ratio of 7.87. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 20.91. Within the past 12 months, BLMN's P/CF has been as high as 8.99 and as low as 3.99, with a median of 6.65.
Jack In The Box (JACK - Free Report) may be another strong Retail - Restaurants stock to add to your shortlist. JACK is a # 2 (Buy) stock with a Value grade of A.
Jack In The Box is currently trading with a Forward P/E ratio of 14.08 while its PEG ratio sits at 0.83. Both of the company's metrics compare favorably to its industry's average P/E of 25.24 and average PEG ratio of 1.91.
JACK's price-to-earnings ratio has been as high as 14.96 and as low as 8.30, with a median of 12.19, while its PEG ratio has been as high as 0.88 and as low as 0.49, with a median of 0.72, all within the past year.
Jack In The Box also has a P/B ratio of -2.55 compared to its industry's price-to-book ratio of -22.09. Over the past year, its P/B ratio has been as high as -1.52, as low as -2.62, with a median of -2.21.
These are just a handful of the figures considered in Bloomin' Brands and Jack In The Box's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BLMN and JACK is an impressive value stock right now.