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Malibu Boats (MBUU) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Malibu Boats (MBUU) closed at $32.34 in the latest trading session, marking a +1.13% move from the prior day. This change outpaced the S&P 500's 0.47% gain on the day. Elsewhere, the Dow lost 0.29%, while the tech-heavy Nasdaq added 0.85%.

Coming into today, shares of the maker of performance sports boats had lost 12.19% in the past month. In that same time, the Consumer Discretionary sector lost 0.32%, while the S&P 500 gained 2.08%.

MBUU will be looking to display strength as it nears its next earnings release. On that day, MBUU is projected to report earnings of $0.96 per share, which would represent year-over-year growth of 26.32%. Our most recent consensus estimate is calling for quarterly revenue of $185.98 million, up 34.13% from the year-ago period.

Any recent changes to analyst estimates for MBUU should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 1.24% lower. MBUU is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, MBUU is holding a Forward P/E ratio of 7.82. For comparison, its industry has an average Forward P/E of 15.83, which means MBUU is trading at a discount to the group.

We can also see 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 1.28 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 183, putting it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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