Bear of the Day: MarineMax (HZO)
With the US economy firing on all cylinders, you’d expect cyclical consumer trends to show some strength. It’s during times like this where people go out there and spend money on things like new cars, recreational vehicles, and boats. Confidence in the economy allows people to splurge on purchases they wouldn’t make during economic downturns. If a company is in business that should be booming, then you’d expect analysts to be increasing their earnings estimates. If the opposite is happening, then maybe investors can make easier money elsewhere.
Today’s Bear of the Day is a company which should be rocking and rolling in this market but flat out isn’t. I’m talking about Zacks Rank #5 (Strong Sell) MarineMax (HZO). MarineMax, Inc. operates as a recreational boat and yacht retailer in the United States. It sells new and used recreational boats, including pleasure boats, such as sport boats, sport cruisers, sport yachts, and other yachts; motor yachts; convertible yachts; pleasure boats; pontoon boats; fishing boats; ski boats; and jet boats. The company also offers marine parts and accessories that comprise marine electronics; dock and anchoring products consisting of boat fenders, lines, and anchors; boat covers; trailer parts; water sport accessories, such as tubes, lines, wakeboards, and skis; engine parts; oils; lubricants; steering and control systems; corrosion control products; service products; accessories, including propellers and instruments; and a line of boating accessories comprising life jackets, inflatables, and water sports equipment.
The reason for the unfavorable Zacks Rank is the string of earnings estimate revisions to the downside following their last earnings report. Over the last week, five analysts have cut their earnings estimates for the current quarter, while three have done so fur the current year. That’s sent the Zacks Consensus Estimate for the current quarter down from 27 cents to 25 cents, while the current year number has dropped from $1.56 to $1.51.
We have MarineMax as part of our Retail – Miscellaneous industry which ranks in the Top 47% of our Zacks Industry Rank. Investors looking for other ideas within the same industry should check out Zacks Rank #2 (Buy) stocks Tractor Supply (TSCO) and Dick’s Sporting Goods (DKS).
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