This manufacturer of leisure boats beat analysts’ estimates by $.09 per share last quarter, and the company is expected to grow 22.3% this year.
MCBC Holdings (MCFT)
From Upside
Founded in 1968, MCBC Holdings (MCFT) is a leading maker of leisure boats. Its popular brand, MasterCraft, is sold through an expansive dealer network and in more than 35 countries. So far this year, the shares have surged 12%, fueled by impressive December-quarter results and rising analyst estimates. We see plenty more upside for the stock, reflecting a reasonable valuation and strong operating momentum.
Boat sales are benefiting from growing levels of disposable income and modest financing rates. Also helping is healthy demand from millennials, who are entering their prime spending years.
The stock’s Overall score of 97 ranks No. 1 among its peers in the leisure products group in Quadrix, which earn an average score of 60. The consensus forecasts 27% higher per-share profits in fiscal 2018 ending June on 35% sales growth. MCBC Holdings is being initiated as a Buy.
Richard J. Moroney, CFA, Upside, www.upsidestocks.com, 800-233-5922, April 2, 2018