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Should Value Investors Buy H&E Equipment Services (HEES) Stock?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is H&E Equipment Services (HEES - Free Report) . HEES is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.87. This compares to its industry's average Forward P/E of 13.29. Over the past year, HEES's Forward P/E has been as high as 14.03 and as low as 8.27, with a median of 11.07.
HEES is also sporting a PEG ratio of 0.89. 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. HEES's PEG compares to its industry's average PEG of 1.05. Within the past year, HEES's PEG has been as high as 1.39 and as low as 0.23, with a median of 0.42.
Investors should also recognize that HEES has a P/B ratio of 3.28. 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 company's current P/B looks solid when compared to its industry's average P/B of 5.77. Over the past 12 months, HEES's P/B has been as high as 5.05 and as low as 2.88, with a median of 3.92.
Finally, we should also recognize that HEES has a P/CF ratio of 3. 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 stock's P/CF looks attractive against its industry's average P/CF of 9.43. Over the past year, HEES's P/CF has been as high as 4.63 and as low as 2.44, with a median of 3.41.
Terex (TEX - Free Report) may be another strong Manufacturing - Construction and Mining stock to add to your shortlist. TEX is a # 2 (Buy) stock with a Value grade of A.
Shares of Terex are currently trading at a forward earnings multiple of 8.77 and a PEG ratio of 0.47 compared to its industry's P/E and PEG ratios of 13.29 and 1.05, respectively.
Over the past year, TEX's P/E has been as high as 12.24, as low as 6.36, with a median of 8.61; its PEG ratio has been as high as 0.65, as low as 0.36, with a median of 0.42 during the same time period.
Furthermore, Terex holds a P/B ratio of 2.50 and its industry's price-to-book ratio is 5.77. TEX's P/B has been as high as 3.45, as low as 1.73, with a median of 2.41 over the past 12 months.
These are only a few of the key metrics included in H&E Equipment Services and Terex 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 TEX look like an impressive value stock at the moment.
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Should Value Investors Buy H&E Equipment Services (HEES) Stock?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One company value investors might notice is H&E Equipment Services (HEES - Free Report) . HEES is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 8.87. This compares to its industry's average Forward P/E of 13.29. Over the past year, HEES's Forward P/E has been as high as 14.03 and as low as 8.27, with a median of 11.07.
HEES is also sporting a PEG ratio of 0.89. 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. HEES's PEG compares to its industry's average PEG of 1.05. Within the past year, HEES's PEG has been as high as 1.39 and as low as 0.23, with a median of 0.42.
Investors should also recognize that HEES has a P/B ratio of 3.28. 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 company's current P/B looks solid when compared to its industry's average P/B of 5.77. Over the past 12 months, HEES's P/B has been as high as 5.05 and as low as 2.88, with a median of 3.92.
Finally, we should also recognize that HEES has a P/CF ratio of 3. 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 stock's P/CF looks attractive against its industry's average P/CF of 9.43. Over the past year, HEES's P/CF has been as high as 4.63 and as low as 2.44, with a median of 3.41.
Terex (TEX - Free Report) may be another strong Manufacturing - Construction and Mining stock to add to your shortlist. TEX is a # 2 (Buy) stock with a Value grade of A.
Shares of Terex are currently trading at a forward earnings multiple of 8.77 and a PEG ratio of 0.47 compared to its industry's P/E and PEG ratios of 13.29 and 1.05, respectively.
Over the past year, TEX's P/E has been as high as 12.24, as low as 6.36, with a median of 8.61; its PEG ratio has been as high as 0.65, as low as 0.36, with a median of 0.42 during the same time period.
Furthermore, Terex holds a P/B ratio of 2.50 and its industry's price-to-book ratio is 5.77. TEX's P/B has been as high as 3.45, as low as 1.73, with a median of 2.41 over the past 12 months.
These are only a few of the key metrics included in H&E Equipment Services and Terex 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 TEX look like an impressive value stock at the moment.