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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is MarineMax (HZO). HZO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 4.95, while its industry has an average P/E of 11.52. Over the past 52 weeks, HZO's Forward P/E has been as high as 10.54 and as low as 4.54, with a median of 7.34.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HZO has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.51.
Finally, we should also recognize that HZO has a P/CF ratio of 4.64. 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. HZO's current P/CF looks attractive when compared to its industry's average P/CF of 10.45. Over the past year, HZO's P/CF has been as high as 9.94 and as low as 4.08, with a median of 6.86.
If you're looking for another solid Retail - Miscellaneous value stock, take a look at Seven and I Holdings Co. (SVNDY). SVNDY is a # 2 (Buy) stock with a Value score of A.
Seven and I Holdings Co. also has a P/B ratio of 1.32 compared to its industry's price-to-book ratio of 7.64. Over the past year, its P/B ratio has been as high as 1.68, as low as 1.31, with a median of 1.45.
These are only a few of the key metrics included in MarineMax and Seven and I Holdings Co. strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, HZO and SVNDY look like an impressive value stock at the moment.
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MarineMax, Inc. (HZO) : Free Stock Analysis Report
Seven and I Holdings Co. (SVNDY) : Free Stock Analysis Report
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