H&E EQUIPMENT SERVICES, INC.

19.62 +0.08 (+0.41%) Sell

Joy for HEES investors as it manages to marginally outperform broader market

13 min read

H&E EQUIPMENT SERVICES, INC. outperformed today. It surged by +0.41% to close at 19.62. During the last week it fell by -11.42% and saw a maximum drawdown of -13.77% before bouncing back.

[Themes containing HEES]

Buy-and-Hold investors in HEES experienced a maximum drawdown of -50.1% over the last three months. It fell by -40.85% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +8.07%.

Trend

HEES has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 9 Feb, 2016 to 6 Mar, 2018. Over the last 2 years 11 months and 3 days, HEES underperformed the SP500 index on 48% days. Which indicates that on days HEES underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

HEES returned losses on 56% days in the last three months. During this time, it delivered on average -0.73% per day. It delivered it's worst daily return of -16.98%, during this period, on Thursday, 18 Oct, 2018. The longest stort-term trend during this period was 9 losing days, which started on 8 Nov, 2018 and ended on 20 Nov, 2018. This bearish trend lost -18.83% of investor capital.

During the last year HEES had 5 profitable months and 7 loss making months. HEES returned profits in fewer months than SP500 index. HEES was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -34.36% compared to -7.28% returned by SP500 index in Oct 2018. HEES had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered -53.83%.

Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.
-- Ayn Rand

HEES is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in HEES's volatility from 10 Sep, 2018 to 18 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that HEES has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

SP500 index has more chance of extreme outcomes than HEES. Therefore, SP500 must receive a lower allocation than HEES in your portfolio. SP500 index usually has shorter drawdown period than HEES.

Based on your interest in HEES you may find it interesting to know that IMTE, IX and EPIX are all extremely risky investment candidates that must be evaluated carefully. Investors with low risk profile are better off avoiding them till their performance becomes more consistent.

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