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 "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) 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 $172.3 million.
- HTZ has traded 1.2 million shares today.
- HTZ traded in a range 10722.8% of the normal price range with a price range of $70.19.
- HTZ traded above its daily resistance level (quality: 531 days, meaning that the stock is crossing a resistance level set by the last 531 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock s movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.
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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 33.8. Currently there are 3 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 6.0 million shares per day over the past 30 days. Hertz Global has a market cap of $10.4 billion and is part of the services sector and diversified services industry. The stock has a beta of 2.46 and a short float of 4.4% with 2.01 days to cover. Shares are up 59.7% year to date as of the close of trading on Monday.
rates Hertz Global Holdings as a
. 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, expanding profit margins and good cash flow from operations. 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 2.6%. 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 ($1.90 versus $0.54).
- 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 30.7% when compared to the same quarter one year prior, rising from $92.89 million to $121.44 million.
- 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.
- Net operating cash flow has slightly increased to $715.05 million or 7.29% when compared to the same quarter last year. Despite an increase in cash flow, HERTZ GLOBAL HOLDINGS INC's average is still marginally south of the industry average growth rate of 12.96%.
- You can view the full Hertz Global Holdings Ratings Report.