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Hyster-Yale (HY) Rises But Trails Market: What Investors Should Know

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The latest trading session saw Hyster-Yale (HY - Free Report) ending at $45.19, denoting a +1.41% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 1.77%. Meanwhile, the Dow experienced a rise of 1.42%, and the technology-dominated Nasdaq saw an increase of 2.28%.

The maker of lift trucks and aftermarket parts's shares have seen a decrease of 14.42% over the last month, not keeping up with the Industrial Products sector's loss of 4.51% and the S&P 500's loss of 5.73%.

The upcoming earnings release of Hyster-Yale will be of great interest to investors. The company is expected to report EPS of $0.47, down 83.96% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $947.8 million, indicating a 10.29% decrease compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.05 per share and a revenue of $3.91 billion, indicating changes of -77.17% and -9.19%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Hyster-Yale. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the past month, there's been a 62.06% fall in the Zacks Consensus EPS estimate. Hyster-Yale currently has a Zacks Rank of #5 (Strong Sell).

In the context of valuation, Hyster-Yale is at present trading with a Forward P/E ratio of 21.79. This represents a premium compared to its industry's average Forward P/E of 17.09.

The Manufacturing - Construction and Mining industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 208, finds itself in the bottom 18% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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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