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

Zacks Equity Research

In the latest trading session, Malibu Boats (MBUU) closed at $37.04, marking a +1.45% move from the previous day. This change outpaced the S&P 500's 0.46% gain on the day. Elsewhere, the Dow gained 0.9%, while the tech-heavy Nasdaq added 0.59%.

Coming into today, shares of the maker of performance sports boats had lost 1.32% in the past month. In that same time, the Consumer Discretionary sector gained 4.41%, while the S&P 500 gained 4.04%.

Wall Street will be looking for positivity from MBUU as it approaches its next earnings report date. On that day, MBUU is projected to report earnings of $0.96 per share, which would represent year-over-year growth of 26.32%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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. As a result, we can interpret positive estimate revisions as a good sign for 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 remained stagnant. MBUU is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, MBUU currently has a Forward P/E ratio of 8.82. Its industry sports an average Forward P/E of 16.3, so we one might conclude that MBUU is trading at a discount comparatively.

Investors should also note that MBUU has a PEG ratio of 0.88 right now. 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 0.96 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 187, putting it in the bottom 27% 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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