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Are Investors Undervaluing Herc Holdings (HRI) Right Now?
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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Herc Holdings (HRI - Free Report) . HRI is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HRI has a P/S ratio of 0.72. This compares to its industry's average P/S of 1.26.
Finally, we should also recognize that HRI has a P/CF ratio of 2.47. 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 4.93. Over the past year, HRI's P/CF has been as high as 2.85 and as low as 0.71, with a median of 2.25.
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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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Herc Holdings (HRI - Free Report) . HRI is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. HRI has a P/S ratio of 0.72. This compares to its industry's average P/S of 1.26.
Finally, we should also recognize that HRI has a P/CF ratio of 2.47. 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 4.93. Over the past year, HRI's P/CF has been as high as 2.85 and as low as 0.71, with a median of 2.25.
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.