MarineMax (HZO) Showing Signs Of Being Strong And Under The Radar

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 or Stephanie Link.

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 $2.8 million.
  • HZO is making at least a new 3-day high.
  • HZO has a PE ratio of 22.1.
  • HZO is mentioned 0.61 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 22.1. Currently there are 4 analysts that rate MarineMax a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for MarineMax has been 161,400 shares per day over the past 30 days. MarineMax has a market cap of $433.0 million and is part of the services sector and specialty retail industry. The stock has a beta of 1.60 and a short float of 7% with 11.21 days to cover. Shares are up 9% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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, good cash flow from operations, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 0.5%. Since the same quarter one year prior, revenues rose by 22.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 610.51% to $42.38 million when compared to the same quarter last year. In addition, MARINEMAX INC has also vastly surpassed the industry average cash flow growth rate of 21.80%.
  • Compared to its closing price of one year ago, HZO's share price has jumped by 50.56%, exceeding the performance of the broader market during that same time frame. 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.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Specialty Retail industry and the overall market, MARINEMAX INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • MARINEMAX INC's earnings per share declined by 16.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, MARINEMAX INC increased its bottom line by earning $0.60 versus $0.04 in the prior year. For the next year, the market is expecting a contraction of 35.0% in earnings ($0.39 versus $0.60).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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