Is Herc Holdings (HRI) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Herc Holdings (HRI). HRI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.41. This compares to its industry's average Forward P/E of 11.33. HRI's Forward P/E has been as high as 21.52 and as low as 6.23, with a median of 11.63, all within the past year.
Investors should also note that HRI holds a PEG ratio of 0.35. 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. HRI's PEG compares to its industry's average PEG of 0.81. Over the last 12 months, HRI's PEG has been as high as 0.42 and as low as 0.20, with a median of 0.29.
Finally, our model also underscores that HRI has a P/CF ratio of 4.16. 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. HRI's P/CF compares to its industry's average P/CF of 7.24. Over the past 52 weeks, HRI's P/CF has been as high as 9.04 and as low as 3.30, with a median of 6.35.
Another great Transportation - Equipment and Leasing stock you could consider is Ryder System (R), which is a # 2 (Buy) stock with a Value Score of A.
Additionally, Ryder System has a P/B ratio of 1.32 while its industry's price-to-book ratio sits at 1.45. For R, this valuation metric has been as high as 1.95, as low as 1.22, with a median of 1.50 over the past year.
These are just a handful of the figures considered in Herc Holdings and Ryder System'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 HRI and R is an impressive value stock right now.
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