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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 – Free Report) 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 8.57 right now. For comparison, its industry sports an average P/E of 16.29. Over the last 12 months, HZO’s Forward P/E has been as high as 14.44 and as low as 6.56, with a median of 10.34.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. HZO has a P/S ratio of 0.22. This compares to its industry’s average P/S of 0.61.
Finally, our model also underscores that HZO has a P/CF ratio of 5.51. 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. This stock’s P/CF looks attractive against its industry’s average P/CF of 16.97. Over the past 52 weeks, HZO’s P/CF has been as high as 9.91 and as low as 5.16, with a median of 7.25.
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.
Financial Market Newsflash
No financial news published today. Check back later.
