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Bull Of The Day: Malibu Boats (MBUU)

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Malibu Boats (MBUU - Free Report) is a Zacks Rank #1 (Strong Buy) and is the Bull of the Day.  A few months ago, this stock landed on my radar screen as I looked at a number of leisure stocks based on the idea that if my neighborhood was blowing up with all those fireworks, others people probably have even more cash for discretionary purchases.  You can read that article later.


Malibu Boats. operates as a designer, manufacturer and marketer of sport boats primarily in the United States. The Company sells its boats under two brands: Malibu and Axis Wake Research. Its sport boats used for water sports including water skiing, wakeboarding and wake surfing as well as for general recreational boating use. Malibu Boats, Inc. is based in Loudon, United States.

Earnings History

The earnings history for this stock looks pretty good with five straight beats of the Zacks Consensus Estimate. 

Malibu Boats, Inc. Price and EPS Surprise

Malibu Boats, Inc. Price and EPS Surprise | Malibu Boats, Inc. Quote


Earnings Estimates

As a Zacks Rank #1 (Strong Buy) we know that estimates have been moving higher. In August the Zacks Consensus Estimate for 2017 saw a four cent increase and was at $1.72.  The stock finished the month of September with a $1.82 number, so an increase of a dime from the previous month.  This acceleration of growth in earnings estimates is just what we like to see.

Here is a table of the estimate revision history for the 2018 calendar year:


MBUU had a great valuation before when I looked at it in July, and now the forward PE is only a little higher.  At 17x it trades at a significant discount to the industry average forward PE of 36x.  The stock also trades at a discount in terms of price to sales, with a 2.3x multiple compared to a 3.8x industry average.  

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