Hertz Global Holdings (HTZ) Weak On High Volume Today

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

Trade-Ideas LLC identified

Hertz Global Holdings

(

HTZ

) as a weak 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 $99.2 million.
  • HTZ has traded 1.1 million shares today.
  • HTZ is trading at 5.95 times the normal volume for the stock at this time of day.
  • HTZ is trading at a new low 6.05% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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 7.3 million shares per day over the past 30 days. Hertz Global has a market cap of $8.9 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.51 and a short float of 7.3% with 5.55 days to cover. Shares are down 20.4% 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 good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Highlights from the ratings report include:

  • Net operating cash flow has slightly increased to $669.00 million or 4.20% 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 -3.83%.
  • 46.49% is the gross profit margin for HERTZ GLOBAL HOLDINGS INC which we consider to be strong. 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 0.85% significantly trails the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.3%. Since the same quarter one year prior, revenues slightly dropped by 4.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The debt-to-equity ratio is very high at 7.41 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. 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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