H&E Equipment (HEES) Stock Sinks As Market Gains: What You Should Know
H&E Equipment (HEES) closed at $44 in the latest trading session, marking a -0.52% move from the prior day. This change lagged the S&P 500's daily gain of 0.37%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 0.62%.
Coming into today, shares of the construction and industrial equipment service provider had lost 20.74% in the past month. In that same time, the Industrial Products sector lost 0.88%, while the S&P 500 gained 3.71%.
Wall Street will be looking for positivity from H&E Equipment as it approaches its next earnings report date. In that report, analysts expect H&E Equipment to post earnings of $1.01 per share. This would mark year-over-year growth of 124.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $304.03 million, up 11.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.99 per share and revenue of $1.36 billion, which would represent changes of +7.84% and +9.56%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for H&E Equipment. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. H&E Equipment is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, H&E Equipment is holding a Forward P/E ratio of 11.09. Its industry sports an average Forward P/E of 12.85, so we one might conclude that H&E Equipment is trading at a discount comparatively.
Meanwhile, HEES's PEG ratio is currently 1.11. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Construction and Mining industry currently had an average PEG ratio of 1.01 as of yesterday's close.
The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow HEES in the coming trading sessions, be sure to utilize Zacks.com.
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H&E Equipment Services, Inc. (HEES) : Free Stock Analysis Report
