Should Value Investors Buy MarineMax (HZO) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is MarineMax (HZO). HZO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 14. This compares to its industry's average Forward P/E of 28.49. HZO's Forward P/E has been as high as 19.70 and as low as 4, with a median of 11.30, all within the past year.
Investors should also recognize that HZO has a P/B ratio of 2.83. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.76. Within the past 52 weeks, HZO's P/B has been as high as 2.83 and as low as 0.44, with a median of 1.40.
Finally, investors should note that HZO has a P/CF ratio of 13.67. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.79. Over the past 52 weeks, HZO's P/CF has been as high as 13.67 and as low as 3.32, with a median of 8.42.
These figures are just a handful of the metrics value investors tend to look at, but they help show that MarineMax is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HZO feels like a great value stock at the moment.
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