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Should Value Investors Buy MarineMax (HZO) Stock?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 holding a Zacks Rank of #2 (Buy) and a Value grade of A.

We should also highlight that HZO has a P/B ratio of 2.01. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. HZO's current P/B looks attractive when compared to its industry's average P/B of 5.76. Over the past year, HZO's P/B has been as high as 2.23 and as low as 0.44, with a median of 1.28.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.6. This compares to its industry's average P/S of 0.7.

Finally, investors should note that HZO has a P/CF ratio of 9.68. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. HZO's current P/CF looks attractive when compared to its industry's average P/CF of 14.79. Over the past year, HZO's P/CF has been as high as 10.83 and as low as 3.32, with a median of 8.24.

These are only a few of the key metrics included in MarineMax's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HZO looks like an impressive value stock at the moment.


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