10 Oversold Small Cap Stocks to Buy Right Now

5) Bloomin’ Brands, Inc. (NASDAQ:BLMN)

Market Cap (As of October 23): $1.33 billion

Forward P/E (As of October 23): 7.15x

% Decline on a YTD Basis: ~41%

Number of Hedge Fund Holders: 23

Bloomin’ Brands, Inc. (NASDAQ:BLMN) owns and operates casual, upscale casual, and fine dining restaurants in the US and internationally.

Bloomin’ Brands, Inc. (NASDAQ:BLMN) has been actively pursuing several strategic initiatives that can potentially unlock shareholder value. For example, the review of strategic alternatives for its operations in Brazil can lead to a potential sale or restructuring of the Brazilian business. Through potentially divesting or restructuring, Bloomin’ Brands, Inc. (NASDAQ:BLMN) can streamline its operations, reduce exposure to international market risks, and reallocate this capital to more profitable avenues. To enhance shareholder returns, the company has completed an Accelerated Share Repurchase (ASR) program. It also settled obligations related to its 2025 Notes, resulting in an improvement in capital structure and financial flexibility.

Bloomin’ Brands, Inc. (NASDAQ:BLMN)’s flagship brand, Outback Steakhouse, continues to show early signs of progress with comparable sales and traffic surpassing expectations and improving guest metrics.

Moreover, Carrabba’s Italian Grill reflected superior performance and has been serving as the bright spot in its brand lineup. Moving forward, the company’s strong brand portfolio, with well-established casual dining concepts, should continue to act as a potential tailwind.

Bloomin’ Brands, Inc. (NASDAQ:BLMN) has been focusing on restaurant growth, menu improvements, and customer experience in a bid to drive traffic and sales. The company highlighted that marketing spending should remain stable. However, there is openness to increase it, if required. For FY 2024, the company is expecting capital expenditures in the range of $260 million – $270 million and adjusted diluted earnings per share of $2.10 – $2.30.

As per Wall Street, the shares of the company have an average price target of $20.13.