Should Value Investors Buy H&E Equipment Services (HEES) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 stock to keep an eye on is H&E Equipment Services (HEES). HEES is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.89, while its industry has an average P/E of 14.05. HEES's Forward P/E has been as high as 14.03 and as low as 7.96, with a median of 10.42, all within the past year.
HEES is also sporting a PEG ratio of 0.81. 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. HEES's industry has an average PEG of 1.06 right now. Over the past 52 weeks, HEES's PEG has been as high as 1.39 and as low as 0.37, with a median of 0.86.
Investors should also recognize that HEES has a P/B ratio of 3.96. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.94. HEES's P/B has been as high as 5.05 and as low as 2.85, with a median of 3.70, over the past year.
Finally, investors will want to recognize that HEES has a P/CF ratio of 3.48. 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. HEES's current P/CF looks attractive when compared to its industry's average P/CF of 10.08. Over the past 52 weeks, HEES's P/CF has been as high as 4.63 and as low as 2.53, with a median of 3.26.
These are only a few of the key metrics included in H&E Equipment Services'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, HEES looks like an impressive value stock at the moment.
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H&E Equipment Services, Inc. (HEES) : Free Stock Analysis Report
