Is Herc Holdings (HRI) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Herc Holdings (HRI). HRI is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.24 right now. For comparison, its industry sports an average P/E of 13.51. Over the last 12 months, HRI's Forward P/E has been as high as 26.99 and as low as 7.77, with a median of 11.71.
We also note that HRI holds a PEG ratio of 0.93. 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. HRI's PEG compares to its industry's average PEG of 1.13. HRI's PEG has been as high as 4.54 and as low as 0.88, with a median of 1.07, all within the past year.
We should also highlight that HRI has a P/B ratio of 2.07. 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 3.22. HRI's P/B has been as high as 4.60 and as low as 1.92, with a median of 2.82, over the past year.
Finally, investors should note that HRI has a P/CF ratio of 3.99. 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 11.84. Over the past 52 weeks, HRI's P/CF has been as high as 6.01 and as low as 3.05, with a median of 4.25.
Value investors will likely look at more than just these metrics, but the above data helps show that Herc Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, HRI sticks out as one of the market's strongest value stocks.
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Herc Holdings Inc. (HRI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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