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Is Bloomin' Brands (BLMN) a Great Value Stock Right Now?

Zacks Equity Research
·2-min read

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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.

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.

Bloomin' Brands (BLMN) is a stock many investors are watching right now. BLMN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.01. This compares to its industry's average Forward P/E of 26.06. Over the last 12 months, BLMN's Forward P/E has been as high as 14.22 and as low as 9.01, with a median of 12.10.

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Investors will also notice that BLMN has a PEG ratio of 1.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BLMN's PEG compares to its industry's average PEG of 2.34. Over the last 12 months, BLMN's PEG has been as high as 1.59 and as low as 0.96, with a median of 1.24.

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 0.33. This compares to its industry's average P/S of 0.79.

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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Zacks Investment Research