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Herc Holdings (HRI) Dips More Than Broader Markets: What You Should Know

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Herc Holdings (HRI) closed the most recent trading day at $113.02, moving -0.2% from the previous trading session. This move lagged the S&P 500's daily loss of 0.08%.

Heading into today, shares of the equipment rental supplier had gained 0.44% over the past month, lagging the Transportation sector's gain of 0.53% and the S&P 500's gain of 1.68% in that time.

Investors will be hoping for strength from HRI as it approaches its next earnings release. On that day, HRI is projected to report earnings of $1.10 per share, which would represent year-over-year growth of 340%. Meanwhile, our latest consensus estimate is calling for revenue of $453.2 million, up 23.15% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.23 per share and revenue of $1.92 billion, which would represent changes of +106.98% and +7.71%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for HRI. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 remained stagnant within the past month. HRI is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, HRI currently has a Forward P/E ratio of 18.17. For comparison, its industry has an average Forward P/E of 16.86, which means HRI is trading at a premium to the group.

Investors should also note that HRI has a PEG ratio of 0.42 right now. 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 Transportation - Equipment and Leasing was holding an average PEG ratio of 0.67 at yesterday's closing price.

The Transportation - Equipment and Leasing industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 131, which puts it in the bottom 49% 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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