Should Value Investors Buy MarineMax (HZO) Stock?
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is MarineMax (HZO). HZO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 4.88. This compares to its industry's average Forward P/E of 12.46. Over the last 12 months, HZO's Forward P/E has been as high as 9.80 and as low as 4.54, with a median of 7.27.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HZO has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.56.
Finally, we should also recognize that HZO has a P/CF ratio of 4.58. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.98. Over the past 52 weeks, HZO's P/CF has been as high as 8.15 and as low as 4.08, with a median of 6.77.
Another great Retail - Miscellaneous stock you could consider is Seven and I Holdings Co. (SVNDY), which is a # 1 (Strong Buy) stock with a Value Score of A.
Seven and I Holdings Co. sports a P/B ratio of 1.30 as well; this compares to its industry's price-to-book ratio of 8.16. In the past 52 weeks, SVNDY's P/B has been as high as 1.68, as low as 1.27, with a median of 1.44.
These are only a few of the key metrics included in MarineMax and Seven and I Holdings Co. strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, HZO and SVNDY look like an impressive value stock at the moment.
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MarineMax, Inc. (HZO) : Free Stock Analysis Report
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