With the pandemic waning and the economy for now growing nicely, car rental companies like Hertz Global are positioned for strong growth. On Monday Hertz stock gapped up more than 5%. Also on Monday, the Relative Strength (RS) Rating for Hertz climbed to 74, up from 63 last week. It's a welcome improvement. But it's still a bit below the ideal 80 RS Rating that the best stocks to buy and watch have, the ones CAN SLIM investors look for.
The upgraded 74 RS Rating shows that Estero, Fla.-based car rental giant Hertz's stock has outperformed 74% of all stocks over the past 52 weeks in terms of price performance.
Big Money Investors Bullish On Hertz Stock
Among its other key ratings, Hertz stock has a strong B Accumulation/Distribution Rating, on an A+ to E scale with A+ terrific and E dismal. The bullish B rating shows that institutional investors like ETFs and mutual funds are fairly heavy buyers. Similarly, the Leisure-Services group as a whole has an outstanding A+ A/D Rating.
Although it was profitable every quarter and grew revenue every quarter last year, on a year-over-year basis, earnings fell most of the year amid the bear market. As a result, Hertz has a weak 19 EPS Rating. Look for that to improve as soon as the current quarter. Its Composite Rating is a middling 67. IBD's Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better, so Hertz has some work to do there too.
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Hertz Up 37% In 2-1/2 Months
Hertz stock is trying to complete a cup with handle with a 20.44 buy point. See if it can break out in heavy trading. In Monday afternoon trading Hertz was up more than 5% at 19.88. It's climbed about 37% from a 14.49 low on Dec. 22.
Last quarter, Hertz reported a 45% dip in earnings on a year-over-year basis to 50 cents per share. Sales edged up 4% to $2.04 billion.
Hertz stock earns the No. 24 rank among its peers in the Leisure-Services industry group. Life Time Group and Xponential Fitness are among the group's highest-rated stocks.
IBD's unique RS Rating measures technical performance by using a 1 (worst) to 99 (best) score that identifies how a stock's price action over the last 52 weeks compares to the rest of the market.
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