U.S. markets open in 4 hours
  • S&P Futures

    3,808.25
    -30.75 (-0.80%)
     
  • Dow Futures

    31,378.00
    -87.00 (-0.28%)
     
  • Nasdaq Futures

    12,425.75
    -238.00 (-1.88%)
     
  • Russell 2000 Futures

    2,172.50
    -17.20 (-0.79%)
     
  • Crude Oil

    65.85
    -0.24 (-0.36%)
     
  • Gold

    1,688.00
    -10.50 (-0.62%)
     
  • Silver

    25.27
    -0.02 (-0.07%)
     
  • EUR/USD

    1.1874
    -0.0051 (-0.43%)
     
  • 10-Yr Bond

    1.5540
    0.0000 (0.00%)
     
  • Vix

    27.59
    -0.98 (-3.43%)
     
  • GBP/USD

    1.3826
    -0.0002 (-0.01%)
     
  • USD/JPY

    108.5380
    +0.1560 (+0.14%)
     
  • BTC-USD

    49,987.86
    -784.73 (-1.55%)
     
  • CMC Crypto 200

    1,011.26
    +68.08 (+7.22%)
     
  • FTSE 100

    6,621.92
    -8.60 (-0.13%)
     
  • Nikkei 225

    28,743.25
    -121.07 (-0.42%)
     

Should You Investigate MarineMax, Inc. (NYSE:HZO) At US$37.23?

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

MarineMax, Inc. (NYSE:HZO), might not be a large cap stock, but it led the NYSE gainers with a relatively large price hike in the past couple of weeks. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Today I will analyse the most recent data on MarineMax’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for MarineMax

Is MarineMax still cheap?

Good news, investors! MarineMax is still a bargain right now according to my price multiple model, which compares the company's price-to-earnings ratio to the industry average. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that MarineMax’s ratio of 10.75x is below its peer average of 19.01x, which indicates the stock is trading at a lower price compared to the Specialty Retail industry. Although, there may be another chance to buy again in the future. This is because MarineMax’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What kind of growth will MarineMax generate?

earnings-and-revenue-growth
earnings-and-revenue-growth

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. MarineMax's earnings over the next few years are expected to increase by 24%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? Since HZO is currently trading below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. With a positive profit outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current price multiple.

Are you a potential investor? If you’ve been keeping an eye on HZO for a while, now might be the time to make a leap. Its prosperous future profit outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy HZO. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

If you'd like to know more about MarineMax as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 2 warning signs for MarineMax and we think they deserve your attention.

If you are no longer interested in MarineMax, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.