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Harte-Hanks (HHS) Gains But Lags Market: What You Should Know
Harte-Hanks (HHS - Free Report) closed at $9.51 in the latest trading session, marking a +0.11% move from the prior day. This change lagged the S&P 500's 0.89% gain on the day. At the same time, the Dow added 1.2%, and the tech-heavy Nasdaq lost 0.68%.
Heading into today, shares of the marketing company had lost 14.57% over the past month, lagging the Business Services sector's loss of 6.25% and the S&P 500's loss of 3.9% in that time.
Harte-Hanks will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.26, down 33.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $50.7 million, up 3.34% from the year-ago period.
HHS's full-year Zacks Consensus Estimates are calling for earnings of $1.70 per share and revenue of $226.5 million. These results would represent year-over-year changes of -64.21% and +9.8%, respectively.
Investors might also notice recent changes to analyst estimates for Harte-Hanks. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.56% lower. Harte-Hanks is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Harte-Hanks has a Forward P/E ratio of 5.59 right now. For comparison, its industry has an average Forward P/E of 10.48, which means Harte-Hanks is trading at a discount to the group.
We can also see that HHS currently has a PEG ratio of 0.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Advertising and Marketing stocks are, on average, holding a PEG ratio of 1.48 based on yesterday's closing prices.
The Advertising and Marketing industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow HHS in the coming trading sessions, be sure to utilize Zacks.com.