Is MarineMax (HZO) Stock Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Neverthe...
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is MarineMax (HZO). HZO is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.12 right now. For comparison, its industry sports an average P/E of 16.65. Over the past 52 weeks, HZO's Forward P/E has been as high as 14 and as low as 7.04, with a median of 9.81.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HZO has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.79.
Finally, our model also underscores that HZO has a P/CF ratio of 6.78. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. HZO's P/CF compares to its industry's average P/CF of 20.31. Within the past 12 months, HZO's P/CF has been as high as 13.67 and as low as 6.49, with a median of 8.26.
These are only a few of the key metrics included in MarineMax's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HZO looks like an impressive value stock at the moment.
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