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 Hertz Global Holdings ( HTZ) as a pre-market mover with heavy 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 $219.3 million.
- HTZ traded 2.4 million shares today in the pre-market hours as of 9:13 AM, representing 29% of its average daily volume.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in HTZ with the Ticky from Trade-Ideas. See the FREE profile for HTZ NOW at Trade-Ideas More details on HTZ: Hertz Global Holdings, Inc., through its subsidiaries, offers car and equipment rental businesses worldwide. The company operates in two segments, Car Rental and Equipment Rental. HTZ has a PE ratio of 40.6. Currently there are 5 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 9.1 million shares per day over the past 30 days. Hertz Global has a market cap of $12.6 billion and is part of the services sector and diversified services industry. The stock has a beta of 2.35 and a short float of 3.3% with 1.22 days to cover. Shares are down 2.2% year-to-date as of the close of trading on Friday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Hertz Global Holdings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, expanding profit margins and increase in stock price during the past year. 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 4.8%. 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 10.71%.
- 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 ($1.70 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.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full Hertz Global Holdings Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.