Why Bloomin' Brands, Inc. (NASDAQ:BLMN) Could Be Worth Watching
Bloomin' Brands, Inc. (NASDAQ:BLMN), is not the largest company out there, but it saw a decent share price growth of 17% on the NASDAQGS over the last few months. The recent share price gains has brought the company back closer to its yearly peak. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s examine Bloomin' Brands’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
View our latest analysis for Bloomin' Brands
Is Bloomin' Brands Still Cheap?
Good news, investors! Bloomin' Brands is still a bargain right now. According to our valuation, the intrinsic value for the stock is $33.72, but it is currently trading at US$26.20 on the share market, meaning that there is still an opportunity to buy now. However, given that Bloomin' Brands’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from Bloomin' Brands?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of Bloomin' Brands, it is expected to deliver a negative earnings growth of -1.9%, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What This Means For You
Are you a shareholder? Although BLMN is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. Consider whether you want to increase your portfolio exposure to BLMN, or whether diversifying into another stock may be a better move for your total risk and return.
Are you a potential investor? If you’ve been keeping tabs on BLMN for some time, but hesitant on making the leap, we recommend you dig deeper into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.
If you want to dive deeper into Bloomin' Brands, you'd also look into what risks it is currently facing. Case in point: We've spotted 3 warning signs for Bloomin' Brands you should be mindful of and 1 of them makes us a bit uncomfortable.
If you are no longer interested in Bloomin' Brands, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
