IBD Stock Analysis
- MarineMax stock is nearing a 64.09 buy point on a weekly chart.
- Shares may also form a handle with a 60.97 entry.
- The relative strength line has also spiked higher recently.
Industry Group Ranking
* Not real-time data. All data shown was captured at
12:36PM EDT on
The deal comes after a rush to the outdoors over the past year, as the coronavirus pandemic shut down gyms and many forms of indoor entertainment.
And after growing over the past year, MarineMax’s $63 million deal for Cruisers Yachts will allow it to grow more. MarineMax runs 77 retailer dealership locations. It also operates marina storage services.
MarineMax said the acquisition of Cruisers Yachts ensured it “will always have a premium, American built yacht in its product portfolio.” The deal, MarineMax CEO W. Brett McGill said, helped fill a hole in MarineMax’s product offerings, left after Brunswick (BC) in 2018 stopped selling Sea Ray yachts.
Raymond James analyst Joseph Altobello said in a note on Monday that he expected the deal to add to profit in the first year of operation.
HZO stock may also form a handle on its cup base, and that would present an earlier entry of 60.97, just above Thursday’s intraday high.
Shares hit a record high of 63.99 on March 22, but tumbled in the few days that followed. HZO stock held tight through most of April, and then rallied after the company reported quarterly earnings. The relative strength line has also spiked higher recently.
HZO stock, a member of the IBD 50, has best-possible Composite and EPS ratings of 99.
MarineMax Earnings, ‘Foundational Shift’
MarineMax on April 22 said its fiscal second-quarter revenue jumped 70%. Same-store sales grew more than 45%. Earnings per share soared more than 600%. The company also hiked its full fiscal year earnings outlook.
The company, in its earnings release, said it had been gaining market share on a “foundational shift of new customers embracing the boating lifestyle and many of our existing customers upgrading to larger and newer boats.” HZO stock raced higher on the results.
The pandemic last year left many in the U.S. jobless. But it also left many, better off before the pandemic, flush with savings. While companies geared toward digital services and commerce boomed, those geared toward the outdoors, like Polaris Industries (PII) and Yeti Holdings (YETI), also saw demand increase.
“From the onset of the pandemic, we effectively pivoted to capitalize on the ongoing changes in consumer behavior resulting in sustained record results,” McGill said on the company’s earnings call.
Wedbush analyst James Hardiman, who covers MarineMax stock, said in a note after the results that “we believe that the boat industry should see lasting benefits from the surge in demand starting a year ago, that the addressable market has been meaningfully expanded, and that the margin profile has been enhanced for the industry in general and MarineMax in particular.”
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