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
) as a momo momentum 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 $179.5 million.
- HTZ has a PE ratio of 34.8.
- HTZ is currently in the upper 30% of its 1-year range.
- HTZ is in the upper 25% of its 20-day range.
- HTZ is in the upper 35% of its 5-day range.
- HTZ is currently trading above yesterday's high.
- HTZ has experienced a gap between today's open and yesterday's close of 0.1%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.
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More 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 34.8. 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 11.0 million shares per day over the past 30 days. Hertz Global has a market cap of $10.8 billion and is part of the services sector and diversified services industry. The stock has a beta of 2.31 and a short float of 3.3% with 1.08 days to cover. Shares are up 47.5% year to date as of the close of trading on Wednesday.
rates Hertz Global Holdings as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 3.6%. Since the same quarter one year prior, revenues rose by 22.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $1,393.00 million or 43.38% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 4.90%.
- Compared to its closing price of one year ago, HTZ's share price has jumped by 60.79%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- HERTZ GLOBAL HOLDINGS INC's earnings per share declined by 14.5% 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 increased its bottom line by earning $0.54 versus $0.38 in the prior year. This year, the market expects an improvement in earnings ($1.71 versus $0.54).
- The gross profit margin for HERTZ GLOBAL HOLDINGS INC is rather high; currently it is at 53.17%. Regardless of HTZ's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HTZ's net profit margin of 6.99% is significantly lower than the industry average.
- You can view the full Hertz Global Holdings Ratings Report.