Sell
Hertz Global (HTZ)
from Dow Theory Forecasts, recommended at $26 in the May 22, 2013 Daily Alert and Investment Digest issue 743.
Hertz shares have shown some life, regaining most of the ground they lost after a disappointing September-quarter report. The stock looks cheap at 11 times estimated 2014 earnings. But its Quadrix scores are rapidly deteriorating, with the Overall rank down to 69 and just two of six category ranks exceeding 50. Analyst estimates for the December quarter and 2014 have fallen precipitously in the past 60 days, and we are not confident that Hertz can meet even the diminished expectations. We are dropping Hertz Global from the Buy and Long-Term Buy lists, and from coverage. Subscribers should sell Hertz.
Richard J. Moroney, CFA, Dow Theory Forecasts, www.dowtheory.com, 800-233-5922, November 18, 2013