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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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) and an A for Value. The stock has a Forward P/E ratio of 9.04. This compares to its industry's average Forward P/E of 24.30. Over the past year, BLMN's Forward P/E has been as high as 10.30 and as low as 6.21, with a median of 8.16.
BLMN is also sporting a PEG ratio of 0.74. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BLMN's industry has an average PEG of 1.79 right now. BLMN's PEG has been as high as 0.76 and as low as 0.74, with a median of 0.74, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.51. This compares to its industry's average P/S of 1.11.
Finally, investors should note that BLMN has a P/CF ratio of 8.39. 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 stock's P/CF looks attractive against its industry's average P/CF of 19.96. Within the past 12 months, BLMN's P/CF has been as high as 8.99 and as low as 3.99, with a median of 6.40.
Investors could also keep in mind Brinker International (EAT - Free Report) , an Retail - Restaurants stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Brinker International is currently trading with a Forward P/E ratio of 11.26 while its PEG ratio sits at 1.58. Both of the company's metrics compare favorably to its industry's average P/E of 24.30 and average PEG ratio of 1.79.
EAT's price-to-earnings ratio has been as high as 12.77 and as low as 5.54, with a median of 8.95, while its PEG ratio has been as high as 1.75 and as low as 0.47, with a median of 0.85, all within the past year.
Brinker International also has a P/B ratio of -6.26 compared to its industry's price-to-book ratio of -20.52. Over the past year, its P/B ratio has been as high as -3.16, as low as -6.77, with a median of -4.83.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Bloomin' Brands and Brinker International are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BLMN and EAT feels like a great value stock at the moment.
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Are Investors Undervaluing Bloomin' Brands (BLMN) Right Now?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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) and an A for Value. The stock has a Forward P/E ratio of 9.04. This compares to its industry's average Forward P/E of 24.30. Over the past year, BLMN's Forward P/E has been as high as 10.30 and as low as 6.21, with a median of 8.16.
BLMN is also sporting a PEG ratio of 0.74. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BLMN's industry has an average PEG of 1.79 right now. BLMN's PEG has been as high as 0.76 and as low as 0.74, with a median of 0.74, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.51. This compares to its industry's average P/S of 1.11.
Finally, investors should note that BLMN has a P/CF ratio of 8.39. 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 stock's P/CF looks attractive against its industry's average P/CF of 19.96. Within the past 12 months, BLMN's P/CF has been as high as 8.99 and as low as 3.99, with a median of 6.40.
Investors could also keep in mind Brinker International (EAT - Free Report) , an Retail - Restaurants stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Brinker International is currently trading with a Forward P/E ratio of 11.26 while its PEG ratio sits at 1.58. Both of the company's metrics compare favorably to its industry's average P/E of 24.30 and average PEG ratio of 1.79.
EAT's price-to-earnings ratio has been as high as 12.77 and as low as 5.54, with a median of 8.95, while its PEG ratio has been as high as 1.75 and as low as 0.47, with a median of 0.85, all within the past year.
Brinker International also has a P/B ratio of -6.26 compared to its industry's price-to-book ratio of -20.52. Over the past year, its P/B ratio has been as high as -3.16, as low as -6.77, with a median of -4.83.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Bloomin' Brands and Brinker International are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BLMN and EAT feels like a great value stock at the moment.