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Is MarineMax (HZO) Stock Undervalued Right Now?

Zacks Equity Research
Tilly's (TLYS) closed the most recent trading day at $16.18, moving -0.98% from the previous trading session.

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

MarineMax (HZO) is a stock many investors are watching right now. HZO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.08 right now. For comparison, its industry sports an average P/E of 14.14. Over the last 12 months, HZO's Forward P/E has been as high as 19.52 and as low as 10.94, with a median of 13.80.

HZO is also sporting a PEG ratio of 0.47. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HZO's industry currently sports an average PEG of 1.15. HZO's PEG has been as high as 0.65 and as low as 0.37, with a median of 0.48, all within the past year.

Finally, our model also underscores that HZO has a P/CF ratio of 11.22. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. HZO's current P/CF looks attractive when compared to its industry's average P/CF of 19.12. Over the past year, HZO's P/CF has been as high as 15.66 and as low as 10.15, with a median of 12.86.

These are only a few of the key metrics included in MarineMax's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HZO looks like an impressive value stock at the moment.


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