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H&E Equipment (HEES) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, H&E Equipment (HEES - Free Report) closed at $50.78, marking a +1.2% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.25%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 7.26%.

Heading into today, shares of the construction and industrial equipment service provider had gained 8.83% over the past month, outpacing the Industrial Products sector's gain of 5.14% and the S&P 500's gain of 5.73% in that time.

Investors will be hoping for strength from H&E Equipment as it approaches its next earnings release. The company is expected to report EPS of $1.01, up 71.19% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $327.31 million, up 16.38% from the year-ago period.

It is also important to note the recent changes to analyst estimates for H&E Equipment. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.22% higher. H&E Equipment is currently a Zacks Rank #3 (Hold).

Digging into valuation, H&E Equipment currently has a Forward P/E ratio of 12.92. This represents a discount compared to its industry's average Forward P/E of 15.03.

Meanwhile, HEES's PEG ratio is currently 0.41. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Manufacturing - Construction and Mining was holding an average PEG ratio of 0.99 at yesterday's closing price.

The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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