Back to top

Image: Bigstock

Should Value Investors Buy Hertz (HTZ) Stock?

Read MoreHide Full Article

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Hertz (HTZ - Free Report) . HTZ is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 9.53. This compares to its industry's average Forward P/E of 16.42. Over the last 12 months, HTZ's Forward P/E has been as high as 1,265.90 and as low as -275.67, with a median of 20.12.

Another valuation metric that we should highlight is HTZ's P/B ratio of 2.08. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.43. HTZ's P/B has been as high as 2.31 and as low as 0.89, with a median of 1.31, over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Hertz is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HTZ feels like a great value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Hertz Global Holdings, Inc. (HTZ) - free report >>

Published in