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Malibu Boats (MBUU) Hits Fresh Highs: Is There Still Room to Run?
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Have you been paying attention to shares of Malibu Boats (MBUU - Free Report) ? Shares have been on the move with the stock up 21.4% over the past month. MBUU hit a new 52-week high of $41.74 in the previous session. Malibu Boats has gained 40.1% since the start of the year compared to the 0.7% move for the Consumer Discretionary sector and the 3.8% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 2, 2018, Malibu Boats reported EPS of $0.89 versus the Zacks Consensus Estimate of $0.71 while it beat the consensus revenue estimate by 11.54%.
For the current fiscal year, Malibu Boats is expected to post earnings of $2.4 per share on $477.09 million in revenues. This represents a 53.85% change in EPS on a 69.22% change in revenues. For the next fiscal year, the company is expected to earn $2.8 per share on $513.04 million in revenues. This represents a year-over-year change of 16.73% and 7.53%, respectively.
Valuation Metrics
Malibu Boats may be at a 52-week high right now, but what might the future hold for MBUU? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Malibu Boats has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 17.4X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 20.7X versus its peer group's average of 17.2X. Additionally, the stock has a PEG ratio of 1.16. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Malibu Boats currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 or 2 (Buy) and Style Scores of A or B, it looks as if Malibu Boats fits the bill. Thus, it seems as though MBUU shares could have a bit more room to run in the near term.
How Does Malibu Boats Stack Up to the Competition?
Shares of Malibu Boats have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also impressive, including Marine Products (MPX - Free Report) , American Public Education (APEI - Free Report) , and NutriSystem , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 25% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MBUU, even beyond its own solid fundamental situation.
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Malibu Boats (MBUU) Hits Fresh Highs: Is There Still Room to Run?
Have you been paying attention to shares of Malibu Boats (MBUU - Free Report) ? Shares have been on the move with the stock up 21.4% over the past month. MBUU hit a new 52-week high of $41.74 in the previous session. Malibu Boats has gained 40.1% since the start of the year compared to the 0.7% move for the Consumer Discretionary sector and the 3.8% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 2, 2018, Malibu Boats reported EPS of $0.89 versus the Zacks Consensus Estimate of $0.71 while it beat the consensus revenue estimate by 11.54%.
For the current fiscal year, Malibu Boats is expected to post earnings of $2.4 per share on $477.09 million in revenues. This represents a 53.85% change in EPS on a 69.22% change in revenues. For the next fiscal year, the company is expected to earn $2.8 per share on $513.04 million in revenues. This represents a year-over-year change of 16.73% and 7.53%, respectively.
Valuation Metrics
Malibu Boats may be at a 52-week high right now, but what might the future hold for MBUU? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Malibu Boats has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 17.4X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 20.7X versus its peer group's average of 17.2X. Additionally, the stock has a PEG ratio of 1.16. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Malibu Boats, Inc. Price and Consensus
Malibu Boats, Inc. Price and Consensus | Malibu Boats, Inc. Quote
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Malibu Boats currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 or 2 (Buy) and Style Scores of A or B, it looks as if Malibu Boats fits the bill. Thus, it seems as though MBUU shares could have a bit more room to run in the near term.
How Does Malibu Boats Stack Up to the Competition?
Shares of Malibu Boats have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also impressive, including Marine Products (MPX - Free Report) , American Public Education (APEI - Free Report) , and NutriSystem , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 25% of all the industries we have in our universe, so it looks like there are some nice tailwinds for MBUU, even beyond its own solid fundamental situation.