This company is the leading boat and yacht dealer in the U.S., and analysts expect it to grow its earnings by 30% annually over the next five years.
MarineMax, Inc. (HZO)
From Weiss Stock Ratings Heat Maps
Last week, the Internal Revenue Service (IRS) deposited around 90 million stimulus payments. So many people saw their stimulus deposit hit last Wednesday that the Wells Fargo & Co. (WFC) online banking system couldn’t even handle the traffic. There were also another 150,000 checks mailed last week. The latest batch of direct deposits hit accounts yesterday.
I’m not going to get into the specifics of the stimulus plan, but the reality is that many people now have an extra $1,400 in their bank accounts … and they will most likely spend it.
There is, of course, a wide range of things that people will be spending that extra cash on. But two big sectors that will see an influx are:
1) Consumer staples
2) Consumer discretionary
Consumer staples, of course, are companies that either produce or sell products that people buy on a regular basis. Consumer discretionary are those that are generally considered nonessential but are desirable if there is sufficient income. This includes fast-food restaurants, entertainment products and services, clothing and even automobiles.
These two sectors tend to do well over different parts of the economic cycle. But right now, we have a very divided economy. There are consumers that will use that stimulus for staple goods that they have been struggling to get. And we have consumers that have been more fortunate over the course of the pandemic and will consider this money as being “extra.”
Of course, I’m not saying that every company in each of these sectors will thrive. To investigate which ones you should consider, let’s use the Weiss Ratings stock screener.
When entering consumer discretionary into the sector search field, I found there were 30 “B”-rated stocks and 46 “B-”-rated stocks. That’s 76 companies with a “Buy” rating. MarineMax is one of the top three.
MarineMax, Inc. is headquartered in Clearwater, Florida, and is the nation’s largest recreational boat and yacht retailer.
MarineMax recently reported first-quarter results of fiscal year 2021. The company saw record December quarter revenue growth of 35%, and diluted EPS more than doubled.
Sounds like people are starting to part with their dollars and put them into outdoor recreation. Shares are up 486% over the past year and up 109% over the past six months.
This is just one potential way to cash in on the stimulus trend.
Mike Larson, Weiss Stock Ratings Heat Maps, issues@e.weissratings.com; phone: 1-877-934-7778, March 25, 2021