Is H&E Equipment Services (HEES) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 has a Forward P/E ratio of 10.34. This compares to its industry's average Forward P/E of 13.01. Over the past 52 weeks, HEES's Forward P/E has been as high as 14.03 and as low as 7.96, with a median of 10.84.
HEES is also sporting a PEG ratio of 0.92. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HEES's industry currently sports an average PEG of 1.03. HEES's PEG has been as high as 1.39 and as low as 0.34, with a median of 0.72, all within the past year.
Investors should also recognize that HEES has a P/B ratio of 3.64. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 6.22. Within the past 52 weeks, HEES's P/B has been as high as 5.05 and as low as 2.85, with a median of 3.83.
Finally, investors should note that HEES has a P/CF ratio of 3.21. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. HEES's current P/CF looks attractive when compared to its industry's average P/CF of 10.03. Over the past 52 weeks, HEES's P/CF has been as high as 4.63 and as low as 2.49, with a median of 3.39.
These are just a handful of the figures considered in H&E Equipment Services's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that HEES is an impressive value stock right now.
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H&E Equipment Services, Inc. (HEES) : Free Stock Analysis Report
