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Bull of the Day: MCBC Holdings (MCFT)

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The market may have taken quite a tumble during the month of October but that doesn’t mean there’s anything wrong with the underlying economy. To the contrary, the broad economy is humming along on all cylinders as the US consumer continues to show signs of strength. When the economy is strong, people have a tendency to spend money on fun things they don’t really need. I can’t think of a more fitting description of this than buying a boat. You know what boat stands for right? Bust Out Another Thousand. That’s great for companies like today’s Bull of the Day which is in the boating business.

MCBC Holdings (MCFT - Free Report) is the parent company for MasterCraft boats. MCBC Holdings, Inc., through its subsidiaries, innovates, designs, manufactures, and markets sport boats and outboard boats in North America and internationally. The company's boats are used for water skiing, wakeboarding, wake surfing, and fishing, as well as general recreational boating. It also provides various accessories, such as trailers and aftermarket parts. The company markets its boats under the MasterCraft and NauticStar brands.

The stock is a Zacks Rank #1 (Strong Buy) in an industry which ranks in the Top 9% of our Zacks Industry Rank. A big reason for the favorable Zacks Rank is the recent earnings estimate revisions coming from analysts. Over the last sixty days, seven analysts on Wall Street have increased their earnings estimates for the current year, while three have also increased their numbers for next year. The bullish moves have pushed up our Zacks Consensus Estimates for both periods. The current year number has jumped from $2.28 to $2.64 while next year’s number has gone from $2.62 to $3.08.

The earnings estimate revisions helped underpin a stock that moved from under $28 to over $38 in only two weeks following the company’s last earnings report. Market volatility tugged down on Superman’s cape, bringing the stock back to Earth. A nice day yesterday saw the stock bounce back up into the $30 level. An oversold commodity channel index is coming back up from -200 to the upside. A cross above the zero line with give a fresh buy signal to some technical traders.

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