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Is MarineMax (HZO) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 to watch right now is MarineMax (HZO - Free Report) . HZO is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 13.07, while its industry has an average P/E of 23.36. Over the last 12 months, HZO's Forward P/E has been as high as 19.70 and as low as 7.19, with a median of 11.45.

We should also highlight that HZO has a P/B ratio of 2.48. 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. HZO's current P/B looks attractive when compared to its industry's average P/B of 7.27. Over the past 12 months, HZO's P/B has been as high as 2.83 and as low as 0.76, with a median of 1.52.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HZO has a P/S ratio of 0.7. This compares to its industry's average P/S of 0.77.

Finally, investors will want to recognize that HZO has a P/CF ratio of 9.87. 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 24.85. Over the past year, HZO's P/CF has been as high as 13.67 and as low as 5.77, with a median of 8.58.

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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