The Effectiveness of the Value Investment Theory During the COVID-19 Pandemic: Using the Heavy Asset Industry as an Example

Zhou, Quan; Liu, Yuming

doi:10.2991/aebmr.k.210601.037

Cited by 3 publications

(1 citation statement)

References 7 publications

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“…The company has a customerfocused approach and a wide-range variety of services which makes it popular among individual contractors, businesses, and government agencies. [6] However, even though H&E Equipment is a leading firm in its local service area, it is still less competitive when compared with global leading companies like United Rentals, Here Rentals, and Sunbelt Rentals within the industry.…”

Section: Datamentioning

confidence: 99%

Under the Post-COVID period: Investigation into Business Performance of the Rental-Equipment Industry -- H&E Equipment

Han¹

2023

HBEM

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As the economy continuously developing nowadays, industries like rental equipment sector have been continuously growing and developing into a more competitive player in the global market. As the COVID-19 stresses the importance of the supply-chain issue, rental equipment industry is worth to be an industry that investors should have a focus on. As a leading company in the rental equipment industry, H&E Equipment is taking as an example to conduct the SWOT analysis in order to know its internal and external factors that would affect its overall business performance. By conducting the SWOT analysis, we can conclude that H&E Equipment is a healthy company with growing revenues, has a very strong dealership community, is able to attain its vertical integration. Furthermore, by achieving vertical integration through acquisitions of companies, H&E Equipment expands its industrial landscape and obtains a higher bargaining power. However, it also has limitations like its financial performance comparing to its competitors’, and the influence that the COVID-19 has on the rental equipment industry. To be more specific, the COVID-19 would cause supply-chain issue to the rental equipment industry which would lead to longer time lengths of deals, and limitations in transportation The article is to help the audience understand the business model, objectives, advantages, and limitations fully in order to stay objective in the rental equipement market.

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Section: Datamentioning

confidence: 99%

Under the Post-COVID period: Investigation into Business Performance of the Rental-Equipment Industry -- H&E Equipment

Han¹

2023

HBEM

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Growth vs value investing: Persistence and time trend before and after COVID-19

Monge

Lazcano

Parada

2023

Research in International Business and Finance

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The Implementation of Value Investment Based on Various Indicators for the Building Materials Industry

Mo¹

2023

BCPBM

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With the advent of post COVID-19 era, value investing strategy has popularized again in the global stock markets as the changing economic conditions, rising interest rates and different risk appetites. Therefore, it is reasonable to know how to distinguish between value stocks and growth stocks before investing. This paper aims to examine the application of value investment strategies based on the indicators’ performance of five companies selected from the building materials industry. Besides, valuation metrics are derived from three primary dimensions, i.e., growth, profitability and value per unit of growth. This study first identifies the classification and recent performance of value stocks and then compares the financial indicators of companies with value stocks. According to the analysis, the suitable P/E range of value stocks is from 10 to 20, with returns beginning to rise in 2021. By means of this method (utilizes one indicator to identify value stocks), researchers engaged in the financial industry may discover more characteristics about them. Moreover, results also illustrate that value stocks with excellent indicators are more endurable in preventing outside shocks, whereas growth stocks can outperform in profitability as long as they possess ever-increasing revenue and EBITDA. Thus, value investing still remains profitable and practical in the real world.

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The Effectiveness of the Value Investment Theory During the COVID-19 Pandemic: Using the Heavy Asset Industry as an Example

Cited by 3 publications

References 7 publications

Under the Post-COVID period: Investigation into Business Performance of the Rental-Equipment Industry -- H&E Equipment

Under the Post-COVID period: Investigation into Business Performance of the Rental-Equipment Industry -- H&E Equipment

Growth vs value investing: Persistence and time trend before and after COVID-19

The Implementation of Value Investment Based on Various Indicators for the Building Materials Industry

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