Hertz Global Holdings (HTZ) Is Today's Strong On High Volume Stock

Trade-Ideas LLC identified Hertz Global Holdings (HTZ) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Hertz Global Holdings

(

HTZ

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Hertz Global Holdings as such a stock due to the following factors:

  • HTZ has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $167.9 million.
  • HTZ has traded 1.1 million shares today.
  • HTZ is trading at 6.05 times the normal volume for the stock at this time of day.
  • HTZ is trading at a new high 4.03% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on HTZ:

Hertz Global Holdings, Inc., through its subsidiaries, rents and leases cars and trucks in the United States and internationally. It operates in four segments: U.S. Car Rental, International Car Rental, Worldwide Equipment Rental, and All Other Operations. Currently there are 3 analysts that rate Hertz Global Holdings a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Hertz Global Holdings has been 7.6 million shares per day over the past 30 days. Hertz Global has a market cap of $7.1 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.61 and a short float of 6.9% with 2.68 days to cover. Shares are down 38.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Hertz Global Holdings as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Road & Rail industry. The net income increased by 59.1% when compared to the same quarter one year prior, rising from $149.00 million to $237.00 million.
  • The gross profit margin for HERTZ GLOBAL HOLDINGS INC is rather high; currently it is at 50.05%. 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 7.96% significantly trails the industry average.
  • HERTZ GLOBAL HOLDINGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HERTZ GLOBAL HOLDINGS INC swung to a loss, reporting -$0.18 versus $0.76 in the prior year. This year, the market expects an improvement in earnings ($0.74 versus -$0.18).
  • The debt-to-equity ratio is very high at 7.10 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Road & Rail industry and the overall market, HERTZ GLOBAL HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.

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