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Are Investors Undervaluing Herc Holdings (HRI) Right Now?
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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, 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Herc Holdings (HRI - Free Report) is a stock many investors are watching right now. HRI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HRI has a P/S ratio of 1.03. This compares to its industry's average P/S of 1.6.
Finally, investors should note that HRI has a P/CF ratio of 3.42. 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. HRI's P/CF compares to its industry's average P/CF of 4.93. Within the past 12 months, HRI's P/CF has been as high as 3.50 and as low as 0.71, with a median of 2.25.
Value investors will likely look at more than just these metrics, but the above data helps show that Herc Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, HRI sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Herc Holdings (HRI) 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, 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Herc Holdings (HRI - Free Report) is a stock many investors are watching right now. HRI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HRI has a P/S ratio of 1.03. This compares to its industry's average P/S of 1.6.
Finally, investors should note that HRI has a P/CF ratio of 3.42. 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. HRI's P/CF compares to its industry's average P/CF of 4.93. Within the past 12 months, HRI's P/CF has been as high as 3.50 and as low as 0.71, with a median of 2.25.
Value investors will likely look at more than just these metrics, but the above data helps show that Herc Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, HRI sticks out at as one of the market's strongest value stocks.