Trade-Ideas LLC identified Bloomin Brands ( BLMN) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) 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 $26.9 million.
  • BLMN has traded 210,205 shares today.
  • BLMN traded in a range 208.7% of the normal price range with a price range of $0.93.
  • BLMN traded above its daily resistance level (quality: 181 days, meaning that the stock is crossing a resistance level set by the last 181 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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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 1.6%. BLMN has a PE ratio of 17. 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 1.6 million shares per day over the past 30 days. Bloomin has a market cap of $2.1 billion and is part of the services sector and leisure industry. The stock has a beta of 0.49 and a short float of 4.1% with 3.26 days to cover. Shares are up 2.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Bloomin Brands as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow.

Highlights from the ratings report include:
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to other companies in the Hotels, Restaurants & Leisure industry and the overall market on the basis of return on equity, BLOOMIN' BRANDS INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
  • Although BLMN's debt-to-equity ratio of 3.23 is very high, it is currently less than that of the industry average. Along with this, the company manages to maintain a quick ratio of 0.35, which clearly demonstrates the inability to cover short-term cash needs.
  • 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.

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