Are Investors Undervaluing H&E Equipment Services (HEES) 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 value investors might notice is H&E Equipment Services (HEES). HEES is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.78, which compares to its industry's average of 16.27. Over the past 52 weeks, HEES's Forward P/E has been as high as 12.68 and as low as 7.96, with a median of 10.40.

We also note that HEES holds a PEG ratio of 0.83. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HEES's PEG compares to its industry's average PEG of 1.45. Over the last 12 months, HEES's PEG has been as high as 1.06 and as low as 0.63, with a median of 0.84.

Investors should also recognize that HEES has a P/B ratio of 4.18. The P/B is a method of comparing a stock's market value to 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 7.40. Over the past year, HEES's P/B has been as high as 4.49 and as low as 2.85, with a median of 3.63.

Finally, we should also recognize that HEES has a P/CF ratio of 3.93. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.87. Over the past year, HEES's P/CF has been as high as 4.21 and as low as 2.53, with a median of 3.25.

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.

Free Report – The Bitcoin Profit Phenomenon

Zacks Investment Research has released a Special Report to help you pursue massive profits from the world’s first and largest decentralized form of money.

No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%.

Zacks predicts another significant surge. Click below for Bitcoin: A Tumultuous Yet Resilient History.

Download Now – Today It’s FREE >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

H&E Equipment Services, Inc. (HEES) : Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.