You’ll receive your new Investment Digest issue this afternoon. But this morning,
we have a new growth-and-momentum recommendation for you from Dow Theory
Forecasts Editor Richard Moroney.
“Hertz Global Holdings, Inc. (HTZ, NYSE) is in the fast lane. The rental company,
with a fleet of nearly 760,000 cars, operates roughly 10,400 locations in about
150 countries. Hertz also rents equipment, while a separate unit offers fleet
management services.
“The car-rental industry has consolidated in recent years, leaving only three major
U.S. players — Hertz, Avis Budget Group (CAR), and privately-held Enterprise. Hertz
acquired Dollar Thrifty for $3.2 billion in November and purchased a 20% stake in
China Auto Rental Holdings in April. Favorable pricing trends and improved demand
from business and leisure travelers bode well for growth.
“Finally, with large acquisitions likely behind the company, Hertz can direct its
surging cash flow toward stock repurchases and debt repayment. On April 29,
management reiterated its full-year outlook, which calls for per-share earnings of
$1.82 to $1.92, implying growth of 37% to 44%. Hertz is being initiated as a Buy and
a Long-Term Buy.”
Richard J. Moroney, CFA, Dow Theory Forecasts, www.dowtheory.com,
800-233-5920, 5/20/13