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

Zacks Equity Research

Malibu Boats (MBUU) closed the most recent trading day at $36.27, moving -1.09% from the previous trading session. This change lagged the S&P 500's 0.36% gain on the day. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 0.27%.

Coming into today, shares of the maker of performance sports boats had lost 5.88% in the past month. In that same time, the Consumer Discretionary sector gained 2.92%, while the S&P 500 gained 3.98%.

MBUU will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.96, up 26.32% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $185.98 million, up 34.13% from the prior-year quarter.

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.

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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. MBUU is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that MBUU has a Forward P/E ratio of 8.86 right now. For comparison, its industry has an average Forward P/E of 15.95, which means MBUU is trading at a discount to the group.

It is also worth noting that MBUU currently has a PEG ratio of 0.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Leisure and Recreation Products stocks are, on average, holding a PEG ratio of 1 based on yesterday's closing prices.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 97, putting it in the top 38% 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.

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

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