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

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 0.5%. By the end of trading, Hertz Global Holdings fell 26 cents (-1.2%) to $21.11 on light volume. Throughout the day, 4.2 million shares of Hertz Global Holdings exchanged hands as compared to its average daily volume of 6.6 million shares. The stock ranged in price between $20.82-$21.43 after having opened the day at $21.19 as compared to the previous trading day's close of $21.37. Other companies within the Diversified Services industry that declined today were: Acquity Group Ltd ADR ( AQ), down 15.1%, Fortune Industries ( FFI), down 14.8%, PDI ( PDII), down 7.1%, and SuperMedia ( SPMD), down 6.3%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $8.97 billion and is part of the services sector. The company has a P/E ratio of 39.4, above the S&P 500 P/E ratio of 17.7. Shares are up 29.2% year to date as of the close of trading on Wednesday. Currently there are four analysts that rate Hertz Global Holdings a buy, one analyst rates 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 revenue growth, solid stock price performance, expanding profit margins, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Daegis ( DAEG), up 17.7%, Acacia Research Coroporation ( ACTG), up 5.5%, ENGlobal Corporation ( ENG), up 5.5%, and Mastech Holdings ( MHH), up 5.4%, were all gainers within the diversified services industry with Zillow ( Z) 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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Dow Hits Intraday Record but Inflation Numbers Cause Jitters Elsewhere

Hertz Stock Tumbles as Morgan Stanley Downgrades on Valuation Concerns

Uber and Lyft Have Run Over the Car Industry

'Cloud Wars' Intensify; Staples Shows Some Staying Power -- ICYMI Friday

CarMax, Avis Still Assessing Hurricane Harvey's Catastrophe