Is MarineMax (HZO) an Undervalued Stock?

Ace River Capital, an investment management company, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned -14.05% in the second quarter, compared to 4.25% and 5.19% returns for the S&P 500 (SPX) and the Russell 2000 (RTY) respectively. The fund returned -22.99% for the full year compared to 16.92% and 8.44% for the indexes. The firm’s goal is to maintain a focused portfolio of small and micro-cap companies with distinct advantages and growth potential within their respective sectors. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Ace River Capital highlighted stocks like MarineMax, Inc. (NYSE:HZO) in its Q2 2024 investor letter. MarineMax, Inc. (NYSE:HZO) is a recreational boat and yacht retailer and superyacht services company The one-month return of MarineMax, Inc. (NYSE:HZO) was -0.72%, and its shares lost 18.21% of their value over the last 52 weeks. On August 5, 2024, MarineMax, Inc. (NYSE:HZO) stock closed at $30.14 per share with a market capitalization of $672.674 million.

Ace River Capital stated the following regarding MarineMax, Inc. (NYSE:HZO) in its Q2 2024 investor letter:

“MarineMax, Inc. (NYSE:HZO) has received buyout interest from Island Capital and OneWater recently. This is positive news and serves as confirmation that the share price is indeed undervalued at these prices. My desire to have ownership in marinas and waterfront real estate in desirable areas is the main thesis for this investment. If a buyout occurs, I will have to reassess and may look to get similar exposure in the new company or elsewhere.”

A large yacht sailing in the open sea with passengers enjoying the sunset.

MarineMax, Inc. (NYSE:HZO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held MarineMax, Inc. (NYSE:HZO) at the end of the first quarter which was 20 in the previous quarter. While we acknowledge the potential of MarineMax, Inc. (NYSE:HZO) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed MarineMax, Inc. (NYSE:HZO) and shared the list of stocks you should not buy according to Jim Cramer. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.