Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

MarineMax

(

HZO

) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified MarineMax as such a stock due to the following factors:

  • HZO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.4 million.
  • HZO is making at least a new 3-day high.
  • HZO has a PE ratio of 81.2.
  • HZO is mentioned 1.06 times per day on StockTwits.
  • HZO has not yet been mentioned on StockTwits today.
  • HZO is currently in the upper 20% of its 1-year range.
  • HZO is in the upper 35% of its 20-day range.
  • HZO is in the upper 45% of its 5-day range.
  • HZO is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on HZO:

MarineMax, Inc. operates as a recreational boat and yacht retailer in the United States. It sells new and used recreational boats, including pleasure boats, such as sport boats, sport cruisers, sport yachts, and yachts; fishing boats; convertible yachts; motor yachts; jet boats; and ski boats. HZO has a PE ratio of 81.2. Currently there are 4 analysts that rate MarineMax a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for MarineMax has been 284,900 shares per day over the past 30 days. MarineMax has a market cap of $633.8 million and is part of the services sector and specialty retail industry. The stock has a beta of 0.51 and a short float of 7.9% with 6.11 days to cover. Shares are up 27.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates MarineMax as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 12.9%. Since the same quarter one year prior, revenues rose by 44.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 106.3% when compared to the same quarter one year prior, rising from -$3.37 million to $0.21 million.
  • Powered by its strong earnings growth of 107.14% and other important driving factors, this stock has surged by 59.84% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • MARINEMAX INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MARINEMAX INC reported lower earnings of $0.46 versus $0.60 in the prior year. This year, the market expects an improvement in earnings ($0.98 versus $0.46).
  • The debt-to-equity ratio is somewhat low, currently at 0.65, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.19 is very weak and demonstrates a lack of ability to pay short-term obligations.

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