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Should Value Investors Buy Malibu Boats (MBUU) Stock?
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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Malibu Boats (MBUU - Free Report) . MBUU is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We also note that MBUU holds a PEG ratio of 0.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MBUU's PEG compares to its industry's average PEG of 1.94. Over the last 12 months, MBUU's PEG has been as high as 1.10 and as low as 0.60, with a median of 0.76.
Another notable valuation metric for MBUU is its P/B ratio of 3.65. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.56. MBUU's P/B has been as high as 6.60 and as low as 2.50, with a median of 4.36, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MBUU has a P/S ratio of 1.06. This compares to its industry's average P/S of 1.17.
Finally, we should also recognize that MBUU has a P/CF ratio of 8.99. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 27.95. Over the past 52 weeks, MBUU's P/CF has been as high as 21.82 and as low as 6.43, with a median of 11.05.
Value investors will likely look at more than just these metrics, but the above data helps show that Malibu Boats is likely undervalued currently. And when considering the strength of its earnings outlook, MBUU sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Malibu Boats (MBUU) 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.
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.
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 stock to keep an eye on is Malibu Boats (MBUU - Free Report) . MBUU is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We also note that MBUU holds a PEG ratio of 0.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MBUU's PEG compares to its industry's average PEG of 1.94. Over the last 12 months, MBUU's PEG has been as high as 1.10 and as low as 0.60, with a median of 0.76.
Another notable valuation metric for MBUU is its P/B ratio of 3.65. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.56. MBUU's P/B has been as high as 6.60 and as low as 2.50, with a median of 4.36, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MBUU has a P/S ratio of 1.06. This compares to its industry's average P/S of 1.17.
Finally, we should also recognize that MBUU has a P/CF ratio of 8.99. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 27.95. Over the past 52 weeks, MBUU's P/CF has been as high as 21.82 and as low as 6.43, with a median of 11.05.
Value investors will likely look at more than just these metrics, but the above data helps show that Malibu Boats is likely undervalued currently. And when considering the strength of its earnings outlook, MBUU sticks out at as one of the market's strongest value stocks.