Trade-Ideas LLC identified Bloomin Brands ( BLMN) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Bloomin Brands as such a stock due to the following factors:

  • BLMN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $43.1 million.
  • BLMN has traded 250,839 shares today.
  • BLMN is trading at 4.39 times the normal volume for the stock at this time of day.
  • BLMN is trading at a new high 3.02% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in BLMN with the Ticky from Trade-Ideas. See the FREE profile for BLMN NOW at Trade-Ideas

More details on BLMN:

Bloomin' Brands, Inc., through its subsidiaries, owns and operates casual, upscale casual, and fine dining restaurants primarily in the United States. The stock currently has a dividend yield of 1.8%. BLMN has a PE ratio of 12. Currently there are 6 analysts that rate Bloomin Brands a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Bloomin Brands has been 1.7 million shares per day over the past 30 days. Bloomin has a market cap of $1.9 billion and is part of the services sector and leisure industry. The stock has a beta of 0.59 and a short float of 3.4% with 1.58 days to cover. Shares are down 7.9% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Bloomin Brands as a hold. The company's strongest point has been its expanding profit margins. At the same time, however, we also find weaknesses including unimpressive growth in net income and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • BLOOMIN' BRANDS INC's earnings per share declined by 17.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BLOOMIN' BRANDS INC increased its bottom line by earning $1.00 versus $0.71 in the prior year. This year, the market expects an improvement in earnings ($1.40 versus $1.00).
  • BLMN, with its decline in revenue, underperformed when compared the industry average of 12.9%. Since the same quarter one year prior, revenues slightly dropped by 5.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Looking at the price performance of BLMN's shares over the past 12 months, there is not much good news to report: the stock is down 39.89%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • The gross profit margin for BLOOMIN' BRANDS INC is rather low; currently it is at 16.65%. Regardless of BLMN's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, BLMN's net profit margin of 1.68% is significantly lower than the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Hotels, Restaurants & Leisure industry average. The net income has decreased by 21.0% when compared to the same quarter one year ago, dropping from $22.41 million to $17.70 million.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.