Is Malibu Boats (MBUU) a Great Value Stock Right Now?

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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Malibu Boats (MBUU) is a stock many investors are watching right now. MBUU is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.75. This compares to its industry's average Forward P/E of 18.36. Over the last 12 months, MBUU's Forward P/E has been as high as 12.73 and as low as 6.29, with a median of 9.64.

Another valuation metric that we should highlight is MBUU's P/B ratio of 2.74. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. MBUU's current P/B looks attractive when compared to its industry's average P/B of 6.03. Over the past year, MBUU's P/B has been as high as 5.11 and as low as 2.21, with a median of 3.59.

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. MBUU has a P/S ratio of 1.01. This compares to its industry's average P/S of 1.25.

Another great Leisure and Recreation Products stock you could consider is Vista Outdoor (VSTO), which is a # 2 (Buy) stock with a Value Score of A.

Vista Outdoor also has a P/B ratio of 2.03 compared to its industry's price-to-book ratio of 6.03. Over the past year, its P/B ratio has been as high as 3.60, as low as 1.73, with a median of 2.61.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Malibu Boats and Vista Outdoor are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MBUU and VSTO feels like a great value stock at the moment.

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Malibu Boats, Inc. (MBUU) : Free Stock Analysis Report
 
Vista Outdoor Inc. (VSTO) : Free Stock Analysis Report
 
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