Is H&E Equipment Services (HEES) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
H&E Equipment Services (HEES) is a stock many investors are watching right now. HEES is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.77, which compares to its industry's average of 12.98. Over the last 12 months, HEES's Forward P/E has been as high as 14.03 and as low as 7.96, with a median of 10.79.
We also note that HEES holds a PEG ratio of 0.87. 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. HEES's PEG compares to its industry's average PEG of 1.03. Over the last 12 months, HEES's PEG has been as high as 1.39 and as low as 0.34, with a median of 0.79.
We should also highlight that HEES has a P/B ratio of 3.45. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 6.23. Over the past year, HEES's P/B has been as high as 5.05 and as low as 2.85, with a median of 3.83.
Finally, our model also underscores that HEES has a P/CF ratio of 3.04. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. HEES's current P/CF looks attractive when compared to its industry's average P/CF of 10.06. HEES's P/CF has been as high as 4.63 and as low as 2.49, with a median of 3.39, all within the past year.
These are only a few of the key metrics included in H&E Equipment Services's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HEES looks like an impressive value stock at the moment.
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H&E Equipment Services, Inc. (HEES) : Free Stock Analysis Report
