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Is Bloomin' Brands (BLMN) a Great Value Stock 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Bloomin' Brands (BLMN - Free Report) is a stock many investors are watching right now. BLMN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.20, which compares to its industry's average of 22.87. Over the last 12 months, BLMN's Forward P/E has been as high as 21.02 and as low as 6.89, with a median of 8.82.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.48. This compares to its industry's average P/S of 1.31.

Finally, investors should note that BLMN has a P/CF ratio of 5.65. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. BLMN's current P/CF looks attractive when compared to its industry's average P/CF of 14.47. Within the past 12 months, BLMN's P/CF has been as high as 23.41 and as low as 4.55, with a median of 6.87.

If you're looking for another solid Retail - Restaurants value stock, take a look at Dine Brands Global (DIN - Free Report) . DIN is a # 2 (Buy) stock with a Value score of A.

Dine Brands Global sports a P/B ratio of -5.18 as well; this compares to its industry's price-to-book ratio of -21.89. In the past 52 weeks, DIN's P/B has been as high as -4.34, as low as -6.33, with a median of -5.14.

Value investors will likely look at more than just these metrics, but the above data helps show that Bloomin' Brands and Dine Brands Global are likely undervalued currently. And when considering the strength of its earnings outlook, BLMN and DIN sticks out as one of the market's strongest value stocks.


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