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

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

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 has a Forward P/E ratio of 7.74. This compares to its industry's average Forward P/E of 18.30. Over the past year, HZO's Forward P/E has been as high as 14 and as low as 7.04, with a median of 8.70.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HZO has a P/S ratio of 0.61. This compares to its industry's average P/S of 0.83.

Finally, investors will want to recognize that HZO has a P/CF ratio of 7.59. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. HZO's P/CF compares to its industry's average P/CF of 22.05. Within the past 12 months, HZO's P/CF has been as high as 13.67 and as low as 6.24, with a median of 8.14.

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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