Malibu Boats, Inc. shares are closing in on important technical levels. The technical chart pattern suggests that the currently tested resistance will be broken and new upside potential arises while volatility is likely to increase. Investors could get ahead of this signal in order to benefit from a better risk/reward ratio.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The prospective high growth for the next fiscal years is among the main assets of the company
● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
● The group usually releases upbeat results with huge surprise rates.
● With a P/E ratio at 14.42 for the current year and 11.91 for next year, earnings multiples are highly attractive compared with competitors.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● The tendency within the weekly time frame is positive above the technical support level at 39.26 USD
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at USD 76.56.
● Technically, the stock approaches a strong medium-term resistance at USD 79.64.
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Malibu Boats, Inc. is a designer, manufacturer and marketer of a diverse range of recreational powerboats, including performance sport boats, sterndrive and outboard boats. The Company's brands include Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes and Cobalt. The Companyâs Malibu segment includes manufacturing, distribution, marketing and sale of Malibu and Axis performance sports boats throughout the world. The Company's product portfolio of premium brands is used for a broad range of recreational boating activities including, among others, water sports, general recreational boating and fishing. The Companyâs Saltwater Fishing segment is engaged in manufacturing, distribution, marketing and sale throughout the world of Pursuit boats and the Maverick Boat Group boats (Maverick, Cobia, Pathfinder and Hewes). The Companyâs Cobalt segment is engaged in manufacturing, distribution, marketing and sale of Cobalt boats throughout the world.