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Are Investors Undervaluing H&E Equipment Services (HEES) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is H&E Equipment Services (HEES - Free Report) . HEES is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.17. This compares to its industry's average Forward P/E of 14.97. Over the past 52 weeks, HEES's Forward P/E has been as high as 13.82 and as low as 7.96, with a median of 10.31.
Investors should also note that HEES holds a PEG ratio of 0.83. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HEES's PEG compares to its industry's average PEG of 1.48. Over the last 12 months, HEES's PEG has been as high as 1.39 and as low as 0.40, with a median of 0.86.
We should also highlight that HEES has a P/B ratio of 4.04. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 6.47. Over the past year, HEES's P/B has been as high as 5.05 and as low as 2.85, with a median of 3.66.
Finally, investors will want to recognize that HEES has a P/CF ratio of 3.56. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.01. Over the past year, HEES's P/CF has been as high as 4.63 and as low as 2.53, with a median of 3.24.
If you're looking for another solid Manufacturing - Construction and Mining value stock, take a look at Komatsu (KMTUY - Free Report) . KMTUY is a # 2 (Buy) stock with a Value score of A.
Shares of Komatsu currently holds a Forward P/E ratio of 10.41, and its PEG ratio is 1.15. In comparison, its industry sports average P/E and PEG ratios of 14.97 and 1.48.
KMTUY's price-to-earnings ratio has been as high as 11.91 and as low as 8.06, with a median of 10.51, while its PEG ratio has been as high as 2.28 and as low as 0.82, with a median of 1.11, all within the past year.
Komatsu also has a P/B ratio of 1.36 compared to its industry's price-to-book ratio of 6.47. Over the past year, its P/B ratio has been as high as 1.42, as low as 1.06, with a median of 1.25.
These are only a few of the key metrics included in H&E Equipment Services and Komatsu strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, HEES and KMTUY look like an impressive value stock at the moment.
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Are Investors Undervaluing H&E Equipment Services (HEES) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is H&E Equipment Services (HEES - Free Report) . HEES is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.17. This compares to its industry's average Forward P/E of 14.97. Over the past 52 weeks, HEES's Forward P/E has been as high as 13.82 and as low as 7.96, with a median of 10.31.
Investors should also note that HEES holds a PEG ratio of 0.83. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HEES's PEG compares to its industry's average PEG of 1.48. Over the last 12 months, HEES's PEG has been as high as 1.39 and as low as 0.40, with a median of 0.86.
We should also highlight that HEES has a P/B ratio of 4.04. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 6.47. Over the past year, HEES's P/B has been as high as 5.05 and as low as 2.85, with a median of 3.66.
Finally, investors will want to recognize that HEES has a P/CF ratio of 3.56. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.01. Over the past year, HEES's P/CF has been as high as 4.63 and as low as 2.53, with a median of 3.24.
If you're looking for another solid Manufacturing - Construction and Mining value stock, take a look at Komatsu (KMTUY - Free Report) . KMTUY is a # 2 (Buy) stock with a Value score of A.
Shares of Komatsu currently holds a Forward P/E ratio of 10.41, and its PEG ratio is 1.15. In comparison, its industry sports average P/E and PEG ratios of 14.97 and 1.48.
KMTUY's price-to-earnings ratio has been as high as 11.91 and as low as 8.06, with a median of 10.51, while its PEG ratio has been as high as 2.28 and as low as 0.82, with a median of 1.11, all within the past year.
Komatsu also has a P/B ratio of 1.36 compared to its industry's price-to-book ratio of 6.47. Over the past year, its P/B ratio has been as high as 1.42, as low as 1.06, with a median of 1.25.
These are only a few of the key metrics included in H&E Equipment Services and Komatsu strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, HEES and KMTUY look like an impressive value stock at the moment.