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Are Investors Undervaluing Bloomin' Brands (BLMN) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Bloomin' Brands (BLMN - Free Report) . BLMN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 12.17, while its industry has an average P/E of 22.37. Over the last 12 months, BLMN's Forward P/E has been as high as 17.13 and as low as 11.16, with a median of 13.41.

BLMN is also sporting a PEG ratio of 1.27. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BLMN's PEG compares to its industry's average PEG of 1.89. BLMN's PEG has been as high as 1.76 and as low as 1.18, with a median of 1.45, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BLMN has a P/S ratio of 0.44. This compares to its industry's average P/S of 1.

Finally, our model also underscores that BLMN has a P/CF ratio of 5.31. 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. BLMN's P/CF compares to its industry's average P/CF of 17.30. Within the past 12 months, BLMN's P/CF has been as high as 7.20 and as low as 4.66, with a median of 5.51.

These are only a few of the key metrics included in Bloomin' Brands's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, BLMN looks like an impressive value stock at the moment.


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