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Are Investors Undervaluing MarineMax (HZO) Right Now?

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 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 #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.04 right now. For comparison, its industry sports an average P/E of 17.47. Over the last 12 months, HZO's Forward P/E has been as high as 19.70 and as low as 4, with a median of 11.21.

Finally, our model also underscores that HZO has a P/CF ratio of 9.08. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. HZO's current P/CF looks attractive when compared to its industry's average P/CF of 14.79. Over the past 52 weeks, HZO's P/CF has been as high as 10.83 and as low as 3.32, with a median of 7.87.

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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