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Harte-Hanks (HHS) Outpaces Stock Market Gains: What You Should Know

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Harte-Hanks (HHS - Free Report) closed the most recent trading day at $10.70, moving +1.42% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.14%. Elsewhere, the Dow gained 1.12%, while the tech-heavy Nasdaq added 0.04%.

Harte-Hanks will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.41, down 21.15% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $50.88 million, up 2.57% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.70 per share and revenue of $200.98 million, which would represent changes of -45.16% and +3.28%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Harte-Hanks. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Harte-Hanks is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Harte-Hanks is holding a Forward P/E ratio of 6.21. For comparison, its industry has an average Forward P/E of 10.53, which means Harte-Hanks is trading at a discount to the group.

We can also see that HHS currently has a PEG ratio of 0.52. 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 Advertising and Marketing industry currently had an average PEG ratio of 1.11 as of yesterday's close.

The Advertising and Marketing industry is part of the Business Services sector. This group has a Zacks Industry Rank of 134, putting it in the bottom 47% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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