Hertz Global Holdings Inc (HTZ): Today's Featured Diversified Services Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Hertz Global Holdings ( HTZ) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day down 0.4%. By the end of trading, Hertz Global Holdings fell 18 cents (-1.3%) to $13.73 on light volume. Throughout the day, four million shares of Hertz Global Holdings exchanged hands as compared to its average daily volume of 6.2 million shares. The stock ranged in price between $13.50-$13.85 after having opened the day at $13.82 as compared to the previous trading day's close of $13.91. Other companies within the Diversified Services industry that declined today were: ENGlobal Corporation ( ENG), down 11.5%, China HGS Real Estate ( HGSH), down 10.3%, Research Frontiers ( REFR), down 9%, and Innovaro ( INV), down 8.8%.
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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. Hertz Global Holdings has a market cap of $5.77 billion and is part of the services sector. The company has a P/E ratio of 20.5, below the average diversified services industry P/E ratio of 20.8 and above the S&P 500 P/E ratio of 17.7. Shares are up 17.2% year to date as of the close of trading on Thursday. Currently there are four analysts that rate Hertz Global Holdings a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Hertz Global Holdings as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, SuperMedia ( SPMD), up 10.8%, ATA ( ATAI), up 8.8%, General Employment ( JOB), up 8.3%, and Cinedigm Digital Cinema ( CIDM), up 8%, were all gainers within the diversified services industry with New Oriental Education & Technology Group I ( EDU) being today's featured diversified services industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the diversified services industry could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the diversified services industry could consider ProShares Ultra Short Consumer Sers ( SCC).

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