Herc Holdings (HRI), a prominent player in the Industrials sector, specifically in Rental & Leasing Services, has been garnering attention from analysts. With an impressive operating margin of 20.41% and a robust net income from continuing operations of
$329.9M, the company's
financial health appears solid. The company's return on equity stands at a strong 32.3%, indicating efficient use of shareholders' funds. The company's operating income is also commendable at
$558.9M. Herc Holdings' shares have been shorted by 1M in the prior month, indicating some investors are betting on the stock price to fall. However, with 5 strong buy recommendations from analysts and a forward dividend rate of 2.53, the company seems to be in a good position for growth. The company's enterprise value to revenue ratio is 2.87, which is reasonable. The stock's 52-week low stands at $93.39, while its real value is estimated at
$132.28, suggesting potential upside. However, investors should be aware of the possible downside price of $132.57 and a maximum drawdown of 16.4%. Overall, Herc Holdings appears to be a promising investment, but as always, potential investors should conduct their own thorough research before making a decision. Herc Holdings is set to announce its earnings tomorrow, with the forthcoming quarterly report anticipated on July 25, 2023. As a significant number of retail investors are showing increasing interest in the trading companies and distributors sector, it is reasonable to scrutinize Herc Holdings' prospects in light of the current economic climate. I will discuss why traders have overlooked this entity since the onset of the recent economic scenario.
What is the right price you would pay to acquire a share of Herc Holdings? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
What is happening with Herc Holdings this year
Annual and quarterly reports issued by Herc Holdings are formal
financial statements that are published yearly and quarterly and sent to Herc stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Herc Holdings often view their annual report as an effective marketing tool to disseminate their perspective on company
future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
Herc Holdings Gross Profit
Herc Holdings Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Herc Holdings previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Herc Holdings Gross Profit growth over the last 10 years. Please check Herc Holdings'
gross profit and other
fundamental indicators for more details.
Is Herc a risky opportunity?
Let's check the volatility. Herc is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Herc (USA Stocks:HRI) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. purchasing a share of a Herc Holdings stock makes you a part-owner of that company.
Herc Holdings Current Consensus
Here is the recent trade recommendation based on an ongoing consensus estimate among financial analysis covering Herc Holdings. The Herc consensus assessment is calculated by taking the average estimates from all of the analysts covering Herc Holdings
| Strong Buy | 5 | 100.0 |
| Buy | 0 | 0.0 |
| Hold | 0 | 0.0 |
| Sell | 0 | 0.0 |
| Strong Sell | 0 | 0.0 |
Herc Holdings (HRI), a prominent player in the Rental & Leasing Services industry, has been garnering attention from investors and analysts alike. With a market capitalization of
$3.85B and a robust net income of $329.9M, the company has demonstrated its financial strength. The company's revenue stands at
$2.74B, with a quarterly revenue growth of 0.303, indicating a positive trend. Despite a high total debt of $3.62B, Herc Holdings maintains a healthy EBITDA of $1.19B and a cash flow from operations of $916.7M. The company's Price to Earnings ratio is 34.25X, and its Price to Book ratio is 3.58X, suggesting that the stock may be undervalued. However, the company's beta of 2.54 indicates a higher level of volatility compared to the market, which could mean higher potential returns but also greater risk. The company's shares are largely owned by institutions, at 92.32%, with only 1.45% owned by insiders. The recent
analyst consensus points towards a target price of $165, suggesting potential upside. However, investors should also consider the company's probability of bankruptcy at 42.62%. In conclusion, while Herc Holdings shows promising growth potential, investors should carefully consider the associated risks.
Will Herc Holdings recent surge continue?
The recent decrease in skewness to 0.42 in Herc Holdings stock could potentially indicate an upcoming drop in volatility. This statistical measure implies that the distribution of the stock's returns is becoming less asymmetrical, potentially leading to a more stable and predictable trading pattern. Despite the company's recent surge, this new data might moderate expectations for continued exponential growth. Investors are advised to monitor the situation closely, as this could indicate a shift from the stock's recent bullish trend. Currently, Herc Holdings exhibits a below-average downside deviation. It has an Information Ratio of 0.1 and a Jensen Alpha of 0.2. However, we recommend investors to further scrutinize Herc Holdings' expected returns to ensure all indicators align with the current outlook about its relatively low value at risk. Understanding different
market volatility trends often assists investors in timing the market. The correct use of volatility indicators allows traders to gauge Herc Holdings' stock risk against market volatility during both bullish and bearish trends.
The increased level of volatility that accompanies bear markets can directly impact
Herc Holdings' stock price, adding stress to investors as they witness the value of their shares plummet. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices fall. In conclusion, the investment potential for Herc Holdings remains robust in August. The analyst overall consensus labels the stock as a
Strong Buy, with all five analysts recommending a strong buy. The valuation market value stands at
$135.79, while the valuation real value is slightly lower at $132.28. However, the analyst target price estimated value is a promising $160, indicating a significant upside potential. The highest and lowest estimated target prices by analysts are $175 and $150 respectively, further emphasizing the potential for growth. Therefore, despite the possible downside price of $132.57, the upside price of $138.32 and the naive expected forecast value of $135.45 suggest that Herc Holdings still has plenty to offer investors in August. .
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Herc Holdings. Please refer to our
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