We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy Herc Holdings (HRI) Stock?
Read MoreHide Full Article
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is Herc Holdings (HRI - Free Report) . HRI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We also note that HRI holds a PEG ratio of 0.40. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HRI's industry currently sports an average PEG of 1.10. Over the last 12 months, HRI's PEG has been as high as 22.43 and as low as 0.37, with a median of 1.62.
Finally, our model also underscores that HRI has a P/CF ratio of 5.84. 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. HRI's P/CF compares to its industry's average P/CF of 9.33. Over the past year, HRI's P/CF has been as high as 6.11 and as low as 1.63, with a median of 3.57.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy Herc Holdings (HRI) Stock?
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is Herc Holdings (HRI - Free Report) . HRI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We also note that HRI holds a PEG ratio of 0.40. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HRI's industry currently sports an average PEG of 1.10. Over the last 12 months, HRI's PEG has been as high as 22.43 and as low as 0.37, with a median of 1.62.
Finally, our model also underscores that HRI has a P/CF ratio of 5.84. 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. HRI's P/CF compares to its industry's average P/CF of 9.33. Over the past year, HRI's P/CF has been as high as 6.11 and as low as 1.63, with a median of 3.57.
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.