Is Herc Holdings (HRI) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company to watch right now is Herc Holdings (HRI). HRI 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 7.94. This compares to its industry's average Forward P/E of 11.79. Over the past year, HRI's Forward P/E has been as high as 11.89 and as low as 6.69, with a median of 9.12.
HRI is also sporting a PEG ratio of 0.68. 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. HRI's PEG compares to its industry's average PEG of 1.01. Within the past year, HRI's PEG has been as high as 0.83 and as low as 0.30, with a median of 0.53.
Finally, we should also recognize that HRI has a P/CF ratio of 3.10. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. HRI's current P/CF looks attractive when compared to its industry's average P/CF of 6.73. HRI's P/CF has been as high as 4.95 and as low as 2.74, with a median of 3.67, all within the past year.
Investors could also keep in mind Ryder System (R), an Transportation - Equipment and Leasing stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Ryder System sports a P/B ratio of 1.54 as well; this compares to its industry's price-to-book ratio of 1.32. In the past 52 weeks, R's P/B has been as high as 1.71, as low as 1.20, with a median of 1.43.
These are only a few of the key metrics included in Herc Holdings and Ryder System strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, HRI and R look like an impressive value stock at the moment.
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Herc Holdings Inc. (HRI) : Free Stock Analysis Report
Ryder System, Inc. (R) : Free Stock Analysis Report
