Harte-Hanks (HHS) Gains As Market Dips: What You Should Know
Harte-Hanks (HHS) closed the most recent trading day at $10.90, moving +1.4% from the previous trading session. This change outpaced the S&P 500's 0.33% loss on the day. Elsewhere, the Dow lost 0.1%, while the tech-heavy Nasdaq lost 0.25%.
Heading into today, shares of the marketing company had lost 24.46% over the past month, lagging the Business Services sector's loss of 15.34% and the S&P 500's loss of 11.67% in that time.
Harte-Hanks will be looking to display strength as it nears its next earnings release. On that day, Harte-Hanks is projected to report earnings of $0.41 per share, which would represent a year-over-year decline of 21.15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $50.88 million, up 2.57% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.70 per share and revenue of $200.98 million, which would represent changes of -45.16% and +3.28%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Harte-Hanks. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Harte-Hanks currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Harte-Hanks is holding a Forward P/E ratio of 6.32. For comparison, its industry has an average Forward P/E of 9.7, which means Harte-Hanks is trading at a discount to the group.
Also, we should mention that HHS has a PEG ratio of 0.53. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Advertising and Marketing was holding an average PEG ratio of 1.03 at yesterday's closing price.
The Advertising and Marketing industry is part of the Business Services sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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