Trade-Ideas: Hertz Global Holdings (HTZ) Is Today's Unusual Social Activity Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Hertz Global Holdings (HTZ) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Hertz Global Holdings as such a stock due to the following factors:
- HTZ has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 5.06 mentions/day.
- HTZ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $203.8 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.EXCLUSIVE OFFER: Get the inside scoop on opportunities in HTZ with the Ticky from Trade-Ideas. See the FREE profile for HTZ NOW at Trade-IdeasMore details on HTZ: Hertz Global Holdings, Inc., through its subsidiaries, engages in the car and equipment rental businesses worldwide. The company operates in two segments, Car Rental and Equipment Rental. HTZ has a PE ratio of 29.5. Currently there are 4 analysts that rate Hertz Global Holdings a buy, 1 analyst rates it a sell, and none rate it a hold.The average volume for Hertz Global Holdings has been 8.5 million shares per day over the past 30 days. Hertz Global has a market cap of $9.1 billion and is part of the services sector and diversified services industry. The stock has a beta of 2.35 and a short float of 2.8% with 0.94 days to cover. Shares are up 39.8% year to date as of the close of trading on Monday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Hertz Global Holdings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 3.4%. Since the same quarter one year prior, revenues rose by 22.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- HERTZ GLOBAL HOLDINGS INC has improved earnings per share by 28.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HERTZ GLOBAL HOLDINGS INC increased its bottom line by earning $0.54 versus $0.38 in the prior year. This year, the market expects an improvement in earnings ($1.74 versus $0.54).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Road & Rail industry average. The net income increased by 30.7% when compared to the same quarter one year prior, rising from $92.89 million to $121.44 million.
- Net operating cash flow has slightly increased to $715.05 million or 7.29% when compared to the same quarter last year. In addition, HERTZ GLOBAL HOLDINGS INC has also modestly surpassed the industry average cash flow growth rate of 3.93%.
- The gross profit margin for HERTZ GLOBAL HOLDINGS INC is rather high; currently it is at 51.50%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, HTZ's net profit margin of 4.47% significantly trails the industry average.
- You can view the full Hertz Global Holdings Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV