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Out of the Zacks Medical sector, HCA Healthcare posted a robust Q4 bottom line figure of $5.90 a share which topped the Zacks Consensus of $5.05 a share by 17%. Fourth quarter earnings climbed 27% year over year with sales of $17.3 billion rising 11% and topping Q4 estimates of $16.55 billion by 4%.
As the nation's largest non-governmental operator of acute care hospitals, HCA’s stock is starting to check the boxes sporting a Zacks Rank #2 (Buy) and an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.
To that point, HCA shares still trade at a reasonable 15.4X forward earnings multiple and less than 2X sales despite the company’s steady and lucrative top and bottom line expansion. Offering more value to shareholders HCA boosted its quarterly dividend by 10% and announced an additional share repurchase program for up to $6 billion.
PulteGroup is a Zacks Construction sector stock that was added to the Zacks Rank #1 (Strong Buy) list today after Q4 earnings of $3.28 per share topped estimates by 2% on Tuesday. This was despite the homebuilders' Q4 sales of $4.29 billion missing estimates by -4%. Still, PulteGroup has now surpassed earnings expectations for five consecutive quarters posting an average earnings surprise of 15% in its last four quarterly reports.
Image Source: Zacks Investment Research
The latest earnings beat reconfirmed PulteGroup’s stock is cheap especially in terms of its P/E valuation. To that point, PulteGroup’s stock has soared +76% over the last year but still trades at 9.2X forward earnings which is well below the S&P 500’s 20.4X and even beneath its Zacks Building Products-Home Builders industry average of 10.3X.
Rounding out the list we will navigate to the auto sector and take a look at specialty vehicle manufacturer Oshkosh. Providing its purpose-built vehicles to a variety of end markets Oshkosh stock currently sports a Zacks Rank #2 (Buy) and has an “A” Style Scores grade for Value.
With international operations across the globe Q4 EPS of $2.56 per share easily surpassed estimates of $2.17 a share by 18% and climbed 60% from $1.60 per share a year ago. Quarterly sales of $2.46 billion registered a very slight miss on the top line but did rise 12% YoY.
The favorable quarterly results certainly make Oshkosh’s stock look attractive trading at 10.6X forward earnings which is intriguingly below the benchmark and a 46% discount to its Zacks Automotive-Original Equipment industry average of 19.8X. Furthermore, Oshkosh has surpassed earnings expectations in each of its last four quarterly reports posting an eye-catching average earnings surprise of 47%.
Image Source: Zacks Investment Research
Bottom Line
HCA Healthcare, PulteGroup, and Oshkosh are three value stocks that investors shouldn’t overlook after exceeding their Q4 earnings expectations. Given their attractive valuations now looks like an ideal time to buy as they should be viable investment options for 2024 and beyond as competitive leaders in their respective industries.
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3 Value Stocks to Buy After Beating Q4 Earnings Expectations
In a week headlined by quarterly results from big tech firms several top-rated Zacks stocks are standing out from a variety of sectors as well.
Stronger-than-expected Q4 earnings on Tuesday helped rectify the notion that these stocks are undervalued making now an ideal time to buy.
HCA Healthcare (HCA - Free Report)
Out of the Zacks Medical sector, HCA Healthcare posted a robust Q4 bottom line figure of $5.90 a share which topped the Zacks Consensus of $5.05 a share by 17%. Fourth quarter earnings climbed 27% year over year with sales of $17.3 billion rising 11% and topping Q4 estimates of $16.55 billion by 4%.
As the nation's largest non-governmental operator of acute care hospitals, HCA’s stock is starting to check the boxes sporting a Zacks Rank #2 (Buy) and an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.
To that point, HCA shares still trade at a reasonable 15.4X forward earnings multiple and less than 2X sales despite the company’s steady and lucrative top and bottom line expansion. Offering more value to shareholders HCA boosted its quarterly dividend by 10% and announced an additional share repurchase program for up to $6 billion.
Image Source: Zacks Investment Research
PulteGroup (PHM - Free Report)
PulteGroup is a Zacks Construction sector stock that was added to the Zacks Rank #1 (Strong Buy) list today after Q4 earnings of $3.28 per share topped estimates by 2% on Tuesday. This was despite the homebuilders' Q4 sales of $4.29 billion missing estimates by -4%. Still, PulteGroup has now surpassed earnings expectations for five consecutive quarters posting an average earnings surprise of 15% in its last four quarterly reports.
Image Source: Zacks Investment Research
The latest earnings beat reconfirmed PulteGroup’s stock is cheap especially in terms of its P/E valuation. To that point, PulteGroup’s stock has soared +76% over the last year but still trades at 9.2X forward earnings which is well below the S&P 500’s 20.4X and even beneath its Zacks Building Products-Home Builders industry average of 10.3X.
Image Source: Zacks Investment Research
Oshkosh (OSK - Free Report)
Rounding out the list we will navigate to the auto sector and take a look at specialty vehicle manufacturer Oshkosh. Providing its purpose-built vehicles to a variety of end markets Oshkosh stock currently sports a Zacks Rank #2 (Buy) and has an “A” Style Scores grade for Value.
With international operations across the globe Q4 EPS of $2.56 per share easily surpassed estimates of $2.17 a share by 18% and climbed 60% from $1.60 per share a year ago. Quarterly sales of $2.46 billion registered a very slight miss on the top line but did rise 12% YoY.
The favorable quarterly results certainly make Oshkosh’s stock look attractive trading at 10.6X forward earnings which is intriguingly below the benchmark and a 46% discount to its Zacks Automotive-Original Equipment industry average of 19.8X. Furthermore, Oshkosh has surpassed earnings expectations in each of its last four quarterly reports posting an eye-catching average earnings surprise of 47%.
Image Source: Zacks Investment Research
Bottom Line
HCA Healthcare, PulteGroup, and Oshkosh are three value stocks that investors shouldn’t overlook after exceeding their Q4 earnings expectations. Given their attractive valuations now looks like an ideal time to buy as they should be viable investment options for 2024 and beyond as competitive leaders in their respective industries.