H&E Equipment (HEES) Stock Sinks As Market Gains: What You Should Know
H&E Equipment (HEES) closed at $54.93 in the latest trading session, marking a -0.69% move from the prior day. This change lagged the S&P 500's 0.14% gain on the day. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq added 1.54%.
Prior to today's trading, shares of the construction and industrial equipment service provider had gained 8.26% over the past month. This has outpaced the Industrial Products sector's loss of 0.62% and the S&P 500's loss of 4.07% in that time.
H&E Equipment will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.60, up 33.33% from the prior-year quarter. 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.
Any recent changes to analyst estimates for H&E Equipment should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 2.75% higher within the past month. H&E Equipment is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, H&E Equipment is holding a Forward P/E ratio of 13.86. Its industry sports an average Forward P/E of 14.79, so we one might conclude that H&E Equipment is trading at a discount comparatively.
Investors should also note that HEES has a PEG ratio of 1.39 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Manufacturing - Construction and Mining industry currently had an average PEG ratio of 1.35 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 19, which puts it in the top 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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H&E Equipment Services, Inc. (HEES) : Free Stock Analysis Report
