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Is MarineMax (HZO) a Great Value Stock Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

MarineMax (HZO - Free Report) is a stock many investors are watching right now. HZO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.01. This compares to its industry's average Forward P/E of 19.29. Over the last 12 months, HZO's Forward P/E has been as high as 19.70 and as low as 4, with a median of 10.91.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HZO has a P/S ratio of 0.43. This compares to its industry's average P/S of 0.48.

Finally, our model also underscores that HZO has a P/CF ratio of 8.58. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.79. Over the past 52 weeks, HZO's P/CF has been as high as 10.83 and as low as 3.32, with a median of 7.67.

These are just a handful of the figures considered in MarineMax's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that HZO is an impressive value stock right now.


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