Back to top

Image: Bigstock

Is Bloomin' Brands (BLMN) Stock Undervalued Right Now?

Read MoreHide Full Article

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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 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 is trading with P/E ratio of 7.66 right now. For comparison, its industry sports an average P/E of 21.94. Over the last 12 months, BLMN's Forward P/E has been as high as 13.79 and as low as 6.89, with a median of 8.76.

Finally, we should also recognize that BLMN has a P/CF ratio of 4.94. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 14.23. Over the past year, BLMN's P/CF has been as high as 22.22 and as low as 4.55, with a median of 6.54.

The ONE Group Hospitality (STKS - Free Report) may be another strong Retail - Restaurants stock to add to your shortlist. STKS is a # 2 (Buy) stock with a Value grade of A.

Additionally, The ONE Group Hospitality has a P/B ratio of 4.39 while its industry's price-to-book ratio sits at -16.55. For STKS, this valuation metric has been as high as 16.95, as low as 4.26, with a median of 7.22 over the past year.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Bloomin' Brands, Inc. (BLMN) - free report >>

The ONE Group Hospitality, Inc. (STKS) - free report >>

Published in