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 $68.9 million.
  • HTZ has traded 875,958 shares today.
  • HTZ is trading at 3.82 times the normal volume for the stock at this time of day.
  • HTZ is trading at a new low 10.00% 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 9.8 million shares per day over the past 30 days. Hertz Global has a market cap of $3.9 billion and is part of the services sector and diversified services industry. The stock has a beta of 2.14 and a short float of 8.2% with 3.75 days to cover. Shares are down 39.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Hertz Global Holdings as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • 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.
  • HTZ's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 63.41%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • Net operating cash flow has declined marginally to $1,232.00 million or 7.15% when compared to the same quarter last year. Despite a decrease in cash flow of 7.15%, HERTZ GLOBAL HOLDINGS INC is in line with the industry average cash flow growth rate of -14.01%.
  • Despite the weak revenue results, HTZ has outperformed against the industry average of 16.9%. Since the same quarter one year prior, revenues slightly dropped by 4.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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