Sunday, December 10, 2023

H&E Equipment (HEES) Gains As Market Dips: What You Should Know

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H&E Equipment (HEES) closed the most recent trading day at $47.57, moving +0.7% from the previous trading session. This move outpaced the S&P 500’s daily loss of 0.2%. At the same time, the Dow lost 1.14%, and the tech-heavy Nasdaq gained 1.39%.

Heading into today, shares of the construction and industrial equipment service provider had gained 7.85% over the past month, outpacing the Industrial Products sector’s gain of 7.6% and the S&P 500’s gain of 4.01% in that time.

H&E Equipment will be looking to display strength as it nears its next earnings release. In that report, analysts expect H&E Equipment to post earnings of $1.01 per share. This would mark year-over-year growth of 71.19%. Our most recent consensus estimate is calling for quarterly revenue of $327.31 million, up 16.38% from the year-ago period.

Any recent changes to analyst estimates for H&E Equipment should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 1.2% lower. H&E Equipment is currently a Zacks Rank #3 (Hold).

Investors should also note H&E Equipment’s current valuation metrics, including its Forward P/E ratio of 12.31. For comparison, its industry has an average Forward P/E of 14.61, which means H&E Equipment is trading at a discount to the group.

We can also see that HEES currently has a PEG ratio of 0.39. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Manufacturing – Construction and Mining was holding an average PEG ratio of 0.98 at yesterday’s closing price.

The Manufacturing – Construction and Mining industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow HEES in the coming trading sessions, be sure to utilize

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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