The great outdoors called and millions answered last year, seeking a safe way to play during the pandemic. Premium recreational boat chain OneWater Marine (ONEW) saw revenue and profits soar in 2020 and early this year. As a result, its IBD SmartSelect Composite Rating jumped to a near-perfect 96 Monday, up from 93 the day before. The question now is: Can it sustain momentum as the economy reopens and people diversify their recreational activities?
The upgrade means OneWater Marine stock is now outperforming 96% of all other stocks in terms of key performance metrics and technical strength. History shows the top market performers tend to have a 95 or higher score as they launch their major climbs.
OneWater Marine Stock Sought By Big Investors
OneWater Marine stock sports a 93 EPS Rating, on a 1-99 scale with 99 tops, meaning its recent quarterly and annual earnings growth tops 93% of all stocks.
Its Accumulation/Distribution Rating of B- shows moderate buying by institutional investors over the last 13 weeks.
In terms of fundamentals, in Q3 the company posted 29% earnings-per-share growth, to $3.04. That followed 914% growth and 999%-plus growth the prior two quarters. However, its sales slid 1% in its most recent quarter, vs. a tough comparison a year ago, to $404.2 million. The prior three quarters, sales grew 30%, 39% and then 74%.
Further, OneWater Marine stock has now climbed above a proper buy zone after breaking out from a 28.96 entry in a cup with handle. See if it offers a new buying opportunity, such as a three-weeks-tight pattern or a rebound off of its 50-day or 10-week line. Be aware that it is a thinly traded stock, with average daily dollar volume under $8 million, making it more subject to volatility.
OneWater Marine stock earns the No. 4 rank among its peers in the Retail-Leisure Products industry group. Dick’s Sporting Goods (DKS) is the No. 1-ranked stock in the group.
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