The Zacks Machinery – Construction and Mining industry has been notably strong in 2022, up more than 13% and widely outperforming the S&P 500.
In addition, the industry is currently ranked in the top 6% (15 out of 248) of all Zacks Industries.
According to studies, 50% of a stock's price movement can be attributed to its group, making it clear why it’s critical for investors to target stocks in a thriving industry.
A company residing in the industry, H&E Equipment Services , has seen its near-term earnings outlook turn visibly bright over the last several months, landing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
H&E Equipment Services has established itself as one of the largest equipment rental companies in the United States, focusing on heavy construction and industrial equipment.
Let’s take a closer look at how the company currently stacks up.
Share Performance
Over the last three months, HEES shares have gone on a stellar run, tacking on more than 45% in value and leaving the S&P 500 in the dust.
Image Source: Zacks Investment Research
And over the last month, HEES shares have continued on their market-beating trajectory, up nearly 10% vs. the S&P 500’s marginal 0.8% gain.
Image Source: Zacks Investment Research
Clearly, buyers have been in control of this stock as of late.
Valuation
H&E Equipment Services’ valuation multiples aren’t stretched; the company’s shares currently trade at a 13.9X forward earnings multiple, nicely beneath the 16.6X five-year median and the Zacks industry average of 16.6X.
Image Source: Zacks Investment Research
Further, the company’s forward price-to-sales ratio currently works out to be 1.4X, below its Zacks industry average.
Image Source: Zacks Investment Research
HEES sports a Style Score of an “A” for Value.
Quarterly Performance
HEES has been on an impressive earnings streak, exceeding earnings and revenue estimates in four consecutive quarters.
Just in its latest release, the company penciled in a 22% bottom-line beat paired with a 7.3% sales surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Additionally, it’s worth noting that all four of the company’s latest EPS beats have been greater than 18%.
Dividends
And for the cherry on top, HEES rewards its shareholders handsomely; the company’s annual dividend currently yields a solid 2.4%, nicely above its Zacks industry average of roughly 2%.
Image Source: Zacks Investment Research
The company’s payout ratio sits at a sustainable 39%.
Bottom Line
A stellar strategy that investors can implement to find expected winners is by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
H&E Equipment Services would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
Bull of the Day: H&E Equipment Services (HEES)
The Zacks Machinery – Construction and Mining industry has been notably strong in 2022, up more than 13% and widely outperforming the S&P 500.
In addition, the industry is currently ranked in the top 6% (15 out of 248) of all Zacks Industries.
According to studies, 50% of a stock's price movement can be attributed to its group, making it clear why it’s critical for investors to target stocks in a thriving industry.
A company residing in the industry, H&E Equipment Services , has seen its near-term earnings outlook turn visibly bright over the last several months, landing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Image Source: Zacks Investment Research
H&E Equipment Services has established itself as one of the largest equipment rental companies in the United States, focusing on heavy construction and industrial equipment.
Let’s take a closer look at how the company currently stacks up.
Share Performance
Over the last three months, HEES shares have gone on a stellar run, tacking on more than 45% in value and leaving the S&P 500 in the dust.
Image Source: Zacks Investment Research
And over the last month, HEES shares have continued on their market-beating trajectory, up nearly 10% vs. the S&P 500’s marginal 0.8% gain.
Image Source: Zacks Investment Research
Clearly, buyers have been in control of this stock as of late.
Valuation
H&E Equipment Services’ valuation multiples aren’t stretched; the company’s shares currently trade at a 13.9X forward earnings multiple, nicely beneath the 16.6X five-year median and the Zacks industry average of 16.6X.
Image Source: Zacks Investment Research
Further, the company’s forward price-to-sales ratio currently works out to be 1.4X, below its Zacks industry average.
Image Source: Zacks Investment Research
HEES sports a Style Score of an “A” for Value.
Quarterly Performance
HEES has been on an impressive earnings streak, exceeding earnings and revenue estimates in four consecutive quarters.
Just in its latest release, the company penciled in a 22% bottom-line beat paired with a 7.3% sales surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Additionally, it’s worth noting that all four of the company’s latest EPS beats have been greater than 18%.
Dividends
And for the cherry on top, HEES rewards its shareholders handsomely; the company’s annual dividend currently yields a solid 2.4%, nicely above its Zacks industry average of roughly 2%.
Image Source: Zacks Investment Research
The company’s payout ratio sits at a sustainable 39%.
Bottom Line
A stellar strategy that investors can implement to find expected winners is by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
H&E Equipment Services would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).