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Is MarineMax (HZO) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.

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.

One company value investors might notice is MarineMax (HZO - Free Report) . HZO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.52, while its industry has an average P/E of 16.95. HZO's Forward P/E has been as high as 19.70 and as low as 4, with a median of 11.21, all within the past year.

We should also highlight that HZO has a P/B ratio of 1.99. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.76. Over the past year, HZO's P/B has been as high as 1.99 and as low as 0.44, with a median of 1.22.

Finally, investors will want to recognize that HZO has a P/CF ratio of 10.60. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid 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 8.14.

These figures are just a handful of the metrics value investors tend to look at, but they help show that MarineMax is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HZO feels like a great value stock at the moment.


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