Are Investors Undervaluing Herc Holdings (HRI) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.77, while its industry has an average P/E of 14.16. HRI's Forward P/E has been as high as 12.09 and as low as 6.69, with a median of 8.99, all within the past year.
HRI is also sporting a PEG ratio of 0.77. 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. HRI's PEG compares to its industry's average PEG of 1.17. HRI's PEG has been as high as 0.90 and as low as 0.45, with a median of 0.67, all within the past year.
Finally, investors will want to recognize that HRI has a P/CF ratio of 3.90. 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 current P/CF looks attractive when compared to its industry's average P/CF of 7.87. HRI's P/CF has been as high as 4.51 and as low as 2.67, with a median of 3.48, all within the past year.
These are only a few of the key metrics included in Herc Holdings's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HRI looks like an impressive value stock at the moment.
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Herc Holdings Inc. (HRI) : Free Stock Analysis Report
