Strong And Under The Radar Today: MarineMax (HZO)

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 $5.1 million.
  • HZO is making at least a new 3-day high.
  • HZO has a PE ratio of 111.
  • HZO is mentioned 0.32 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 111. Currently there are 5 analysts that rate MarineMax a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for MarineMax has been 315,400 shares per day over the past 30 days. MarineMax has a market cap of $622.1 million and is part of the services sector and specialty retail industry. The stock has a beta of 0.47 and a short float of 10.8% with 14.01 days to cover. Shares are up 25.2% year-to-date as of the close of trading on Wednesday.

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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 robust revenue growth, compelling growth in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 9.1%. Since the same quarter one year prior, revenues rose by 26.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving 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 119.7% when compared to the same quarter one year prior, rising from -$1.98 million to $0.39 million.
  • Net operating cash flow has significantly increased by 186.63% to $16.58 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 16.83%.
  • Powered by its strong earnings growth of 125.00% and other important driving factors, this stock has surged by 58.16% 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 ($0.85 versus $0.46).

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