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Harte-Hanks (HHS) Stock Declines While Market Improves: Some Information for Investors

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Harte-Hanks (HHS - Free Report) closed at $7.57 in the latest trading session, marking a -0.26% move from the prior day. This change lagged the S&P 500's 0.09% gain on the day. Meanwhile, the Dow experienced a drop of 0.1%, and the technology-dominated Nasdaq saw an increase of 0.16%.

The the stock of marketing company has risen by 2.71% in the past month, leading the Business Services sector's gain of 1.04% and undershooting the S&P 500's gain of 2.83%.

The investment community will be paying close attention to the earnings performance of Harte-Hanks in its upcoming release. The company's earnings per share (EPS) are projected to be $0.09, reflecting a 12.5% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $46.6 million, showing a 2.43% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $0.68 per share and a revenue of $194.27 million, demonstrating changes of +65.85% and +1.45%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Harte-Hanks. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 18.26% higher. Harte-Hanks is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, Harte-Hanks is currently trading at a Forward P/E ratio of 11.16. This represents a discount compared to its industry's average Forward P/E of 11.99.

It's also important to note that HHS currently trades at a PEG ratio of 0.93. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Advertising and Marketing industry had an average PEG ratio of 2.02 as trading concluded yesterday.

The Advertising and Marketing industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 97, positioning it in the top 39% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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