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Should Value Investors Buy H&E Equipment Services (HEES) Stock?
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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
H&E Equipment Services (HEES - Free Report) is a stock many investors are watching right now. HEES is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.52, which compares to its industry's average of 16.01. HEES's Forward P/E has been as high as 18.06 and as low as 8.27, with a median of 11.28, all within the past year.
We also note that HEES holds a PEG ratio of 0.40. 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 industry has an average PEG of 1.16 right now. Within the past year, HEES's PEG has been as high as 0.66 and as low as 0.23, with a median of 0.37.
Investors should also recognize that HEES has a P/B ratio of 4.89. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.74. Within the past 52 weeks, HEES's P/B has been as high as 5.38 and as low as 2.88, with a median of 4.15.
Finally, we should also recognize that HEES has a P/CF ratio of 4.24. 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. HEES's current P/CF looks attractive when compared to its industry's average P/CF of 11.14. Over the past 52 weeks, HEES's P/CF has been as high as 4.49 and as low as 2.44, with a median of 3.46.
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 are currently trading at a forward earnings multiple of 10.62 and a PEG ratio of 1.65 compared to its industry's P/E and PEG ratios of 16.01 and 1.16, respectively.
Over the past year, KMTUY's P/E has been as high as 11.84, as low as 8.29, with a median of 10.03; its PEG ratio has been as high as 1.69, as low as 0.27, with a median of 0.37 during the same time period.
Komatsu also has a P/B ratio of 1.15 compared to its industry's price-to-book ratio of 6.74. Over the past year, its P/B ratio has been as high as 1.32, as low as 0.87, with a median of 1.08.
Value investors will likely look at more than just these metrics, but the above data helps show that H&E Equipment Services and Komatsu are likely undervalued currently. And when considering the strength of its earnings outlook, HEES and KMTUY sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy H&E Equipment Services (HEES) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
H&E Equipment Services (HEES - Free Report) is a stock many investors are watching right now. HEES is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.52, which compares to its industry's average of 16.01. HEES's Forward P/E has been as high as 18.06 and as low as 8.27, with a median of 11.28, all within the past year.
We also note that HEES holds a PEG ratio of 0.40. 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 industry has an average PEG of 1.16 right now. Within the past year, HEES's PEG has been as high as 0.66 and as low as 0.23, with a median of 0.37.
Investors should also recognize that HEES has a P/B ratio of 4.89. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.74. Within the past 52 weeks, HEES's P/B has been as high as 5.38 and as low as 2.88, with a median of 4.15.
Finally, we should also recognize that HEES has a P/CF ratio of 4.24. 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. HEES's current P/CF looks attractive when compared to its industry's average P/CF of 11.14. Over the past 52 weeks, HEES's P/CF has been as high as 4.49 and as low as 2.44, with a median of 3.46.
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 are currently trading at a forward earnings multiple of 10.62 and a PEG ratio of 1.65 compared to its industry's P/E and PEG ratios of 16.01 and 1.16, respectively.
Over the past year, KMTUY's P/E has been as high as 11.84, as low as 8.29, with a median of 10.03; its PEG ratio has been as high as 1.69, as low as 0.27, with a median of 0.37 during the same time period.
Komatsu also has a P/B ratio of 1.15 compared to its industry's price-to-book ratio of 6.74. Over the past year, its P/B ratio has been as high as 1.32, as low as 0.87, with a median of 1.08.
Value investors will likely look at more than just these metrics, but the above data helps show that H&E Equipment Services and Komatsu are likely undervalued currently. And when considering the strength of its earnings outlook, HEES and KMTUY sticks out as one of the market's strongest value stocks.