Should Value Investors Buy MarineMax (HZO) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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.
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 a P/E ratio of 5.99, which compares to its industry's average of 11.97. HZO's Forward P/E has been as high as 8.86 and as low as 3.87, with a median of 5.91, all within the past year.
Finally, we should also recognize that HZO has a P/CF ratio of 4.39. 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 stock's P/CF looks attractive against its industry's average P/CF of 16.33. HZO's P/CF has been as high as 5.53 and as low as 2.88, with a median of 3.62, all within the past year.
Investors could also keep in mind The ODP Corporation (ODP), an Retail - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
The ODP Corporation is currently trading with a Forward P/E ratio of 7.82 while its PEG ratio sits at 0.56. Both of the company's metrics compare favorably to its industry's average P/E of 11.97 and average PEG ratio of 1.33.
Over the last 12 months, ODP's P/E has been as high as 8.95, as low as 7.68, with a median of 8.32, and its PEG ratio has been as high as 0.61, as low as 0.55, with a median of 0.58.
The ODP Corporation sports a P/B ratio of 1.45 as well; this compares to its industry's price-to-book ratio of 9.23. In the past 52 weeks, ODP's P/B has been as high as 1.89, as low as 1.26, with a median of 1.56.
These figures are just a handful of the metrics value investors tend to look at, but they help show that MarineMax and The ODP Corporation are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HZO and ODP feels like a great value stock at the moment.
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MarineMax, Inc. (HZO) : Free Stock Analysis Report
The ODP Corporation (ODP) : Free Stock Analysis Report
