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Malibu Boats (MBUU) Gains As Market Dips: What You Should Know

Zacks Equity Research

Malibu Boats (MBUU) closed at $30.69 in the latest trading session, marking a +0.03% move from the prior day. This change outpaced the S&P 500's 1.23% loss on the day. Elsewhere, the Dow lost 1.28%, while the tech-heavy Nasdaq lost 1.13%.

Coming into today, shares of the maker of performance sports boats had gained 10.28% in the past month. In that same time, the Consumer Discretionary sector lost 0.1%, while the S&P 500 gained 1.95%.

Investors will be hoping for strength from MBUU as it approaches its next earnings release. The company is expected to report EPS of $0.73, up 8.96% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $153.13 million, up 24.01% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.92 per share and revenue of $734.23 million, which would represent changes of +4.26% and +7.34%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for MBUU. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.83% lower within the past month. MBUU is currently a Zacks Rank #3 (Hold).

Digging into valuation, MBUU currently has a Forward P/E ratio of 7.82. Its industry sports an average Forward P/E of 14.66, so we one might conclude that MBUU is trading at a discount comparatively.

It is also worth noting that MBUU currently has a PEG ratio of 0.78. 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 was holding an average PEG ratio of 1.23 at yesterday's closing price.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 205, putting it in the bottom 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow MBUU in the coming trading sessions, be sure to utilize Zacks.com.


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