What Is Bloomin' Brands, Inc.'s (NASDAQ:BLMN) Share Price Doing?

Bloomin' Brands, Inc. (NASDAQ:BLMN), is not the largest company out there, but it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$16.99 and falling to the lows of US$11.22. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Bloomin' Brands' current trading price of US$11.83 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Bloomin' Brands’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See 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 $19.47, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. 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.

What does the future of Bloomin' Brands look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. However, with an expected decline of -5.1% in revenues over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Bloomin' Brands. This certainty tips the risk-return scale towards higher risk.

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.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Every company has risks, and we've spotted 2 warning signs for Bloomin' Brands (of which 1 is potentially serious!) you should know about.

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.