Back to top

Image: Bigstock

Malibu Boats (MBUU) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Malibu Boats (MBUU - Free Report) closed at $30.38 in the latest trading session, marking a -0.43% move from the prior day. This move lagged the S&P 500's daily loss of 0.26%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 0.24%.

Coming into today, shares of the maker of performance sports boats had lost 22.21% in the past month. In that same time, the Consumer Discretionary sector gained 0.61%, while the S&P 500 gained 2.87%.

Wall Street will be looking for positivity from MBUU as it approaches its next earnings report date. On that day, MBUU is projected to report earnings of $0.95 per share, which would represent year-over-year growth of 25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $185.50 million, up 33.78% from the year-ago period.

Investors should also note any recent changes to analyst estimates for MBUU. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.62% lower. MBUU is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note MBUU's current valuation metrics, including its Forward P/E ratio of 7.64. For comparison, its industry has an average Forward P/E of 16.08, which means MBUU is trading at a discount to the group.

We can also see that MBUU currently has a PEG ratio of 0.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Leisure and Recreation Products stocks are, on average, holding a PEG ratio of 1.15 based on yesterday's closing prices.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Malibu Boats, Inc. (MBUU) - free report >>

Published in