Time New York: Sat 19 Aug 09:18 am  |  Save 15% on H&R Block Online

  
caticonslite_bm_alt

3 Reasons Momentum Stock Investors Will Love H&E Equipment Services (HEES)

Zacks

Many investors like to look for momentum in stocks, but this can be very tough to define. There is great debate regarding which metrics are the best to focus on in this regard, and which are not really quality indicators of future performance. Fortunately, with our new style score system we have identified the key statistics to pay close attention to and thus which stocks might be the best for momentum investors in the near term.

This method discovered several great candidates for momentum-oriented investors, but today let’s focus in on H&E Equipment Services, Inc. HEES as this stock is looking especially impressive right now. And while there are numerous ways in which this company could be a great choice, we have highlighted three of the most vital reasons for HEES’s status as a solid momentum stock below:

Short Term Price Change for H&E Equipment Services

A great place to look for finding momentum stocks is by inspecting short term price activity. This can help to reflect the current interest in a stock and if buyers or sellers have the upper hand right now. It is especially useful to compare it to the industry as this can help investors pinpoint the top companies in a particular area.


With a one week price change of 1.29% compared to an industry average of 0.77%, HEES is certainly well-positioned in this regard. The stock is also looking quite well from a longer time frame too, as the four week price change compares favourably with the industry at large as well.

H&E Equipment Services, Inc. Price and Consensus

Quarter EPS Estimate Change for H&E Equipment Services Stock

While looking at price performance or full year earnings can be essential to understanding a momentum stock, you shouldn’t forget about the current quarter EPS and the trend in estimates there. This change can signal how a stock might perform in the next earnings season which is obviously vital for momentum investors.

Right now, HEES is seeing a nice trend over the past month when it comes to this quarter’s earnings estimate projections. In the time frame, EPS estimates for H&E Equipment Services have gone up by 11.11% compared to an industry average move of 7.96%, suggesting that not only is HEES heading in the right direction, but it is seeing an increase relative to the industry too.

HEES Earnings Estimate Revisions Moving in the Right Direction

While the great momentum factors outlined in the preceding paragraphs might be enough for some investors, we should also take into account broad earnings estimate revision trends. A nice path here can really help to show us a promising stock, and we have actually been seeing that with HEES as of late too.

Over the past two months, one earnings estimate has gone higher compared to none lower for the full year. These revisions have helped to boost the consensus estimate as two months ago HEES was expected to post earnings of $1.05 per share for the full year, though today it looks to have EPS of $1.18 for the full year, representing a solid increase which is something that should definitely be welcomed news to would-be investors.

Bottom Line

Given these factors, investors shouldn’t be surprised to note that we have HEES as a security with a Zacks Rank #1 (Strong Buy) and a Momentum Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

So if you are looking for a fresh pick that has potential to move in the right direction, definitely keep HEES on your short list as this looks be a stock that is very well-positioned to soar in the near term.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.