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Malibu Boats (MBUU) Gains But Lags Market: What You Should Know

Zacks Equity Research

Malibu Boats (MBUU) closed the most recent trading day at $27.72, moving +0.95% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.3%. Meanwhile, the Dow gained 1.21%, and the Nasdaq, a tech-heavy index, added 1.39%.

Coming into today, shares of the maker of performance sports boats had lost 30.29% in the past month. In that same time, the Consumer Discretionary sector lost 7.48%, while the S&P 500 lost 4.84%.

MBUU will be looking to display strength as it nears its next earnings release. In that report, analysts expect MBUU to post earnings of $0.95 per share. This would mark year-over-year growth of 25%. Our most recent consensus estimate is calling for quarterly revenue 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 revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. The Zacks Consensus EPS estimate has moved 3.62% lower within the past month. MBUU is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, MBUU is holding a Forward P/E ratio of 6.88. For comparison, its industry has an average Forward P/E of 15.25, which means MBUU is trading at a discount to the group.

We can also see that MBUU currently has a PEG ratio of 0.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Leisure and Recreation Products industry currently had an average PEG ratio of 1.2 as of yesterday's close.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 42% 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.

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