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 $31.6 million.
  • BLMN has traded 210,791 shares today.
  • BLMN traded in a range 207.4% of the normal price range with a price range of $1.19.
  • BLMN traded above its daily resistance level (quality: 3 days, meaning that the stock is crossing a resistance level set by the last 3 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 1.5%. BLMN has a PE ratio of 23. 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 $2.2 billion and is part of the services sector and leisure industry. The stock has a beta of 0.41 and a short float of 3.9% with 2.70 days to cover. Shares are up 12.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Bloomin Brands as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. 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.
  • BLOOMIN' BRANDS INC's earnings per share declined by 38.3% 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 10.5%. Since the same quarter one year prior, revenues slightly dropped by 3.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The share price of BLOOMIN' BRANDS INC has not done very well: it is down 10.81% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to 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 is one of the factors that makes this stock an attractive investment.

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