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Should Value Investors Buy Bloomin' Brands (BLMN) Stock?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Bloomin' Brands (BLMN - Free Report) . BLMN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 12.11 right now. For comparison, its industry sports an average P/E of 22.53. BLMN's Forward P/E has been as high as 17.13 and as low as 12.11, with a median of 14.69, all within the past year.
We also note that BLMN holds a PEG ratio of 1.28. 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 PEG compares to its industry's average PEG of 1.72. Over the past 52 weeks, BLMN's PEG has been as high as 1.77 and as low as 1.23, with a median of 1.50.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BLMN has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.87.
Finally, investors should note that BLMN has a P/CF ratio of 5.08. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.03. Within the past 12 months, BLMN's P/CF has been as high as 7.20 and as low as 5.06, with a median of 6.02.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Bloomin' Brands is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BLMN feels like a great value stock at the moment.
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Should Value Investors Buy Bloomin' Brands (BLMN) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Bloomin' Brands (BLMN - Free Report) . BLMN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 12.11 right now. For comparison, its industry sports an average P/E of 22.53. BLMN's Forward P/E has been as high as 17.13 and as low as 12.11, with a median of 14.69, all within the past year.
We also note that BLMN holds a PEG ratio of 1.28. 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 PEG compares to its industry's average PEG of 1.72. Over the past 52 weeks, BLMN's PEG has been as high as 1.77 and as low as 1.23, with a median of 1.50.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BLMN has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.87.
Finally, investors should note that BLMN has a P/CF ratio of 5.08. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.03. Within the past 12 months, BLMN's P/CF has been as high as 7.20 and as low as 5.06, with a median of 6.02.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Bloomin' Brands is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BLMN feels like a great value stock at the moment.