Hertz Global Holdings, Inc.
), one of the leading general-use car rental brands, is slated to
report its first-quarter fiscal 2014 earnings on Jun 9. In the
previous quarter, Hertz recorded a negative earnings surprise of
18.8%. Let's see how things are shaping up for this
Factors Influencing this Quarter
The company has been on track to implement strategies related to
effective pricing and optimum use of technological resources. With
continued innovations and product advancements, the company is
likely to enhance efficiency, increase brand recognition, manage
costs well and boost sales. However, the rental industry continues
to be in a nascent stage of economic recovery. This, along with the
Easter shift, makes us cautious about this quarter.
Our proven model does not conclusively show that Hertz is likely to
beat earnings this quarter. That is because a stock needs to have
both a positive
(Expected Surprise Prediction) and a Zacks Rank #1, 2 or 3 for this
to happen. This is not the case here as you will see below:
The Earnings ESP, which represents the difference between the Most
Accurate estimate and the Zacks Consensus Estimate, is currently
pegged at 0.00%. This is because both the Most Accurate estimate
and the Zacks Consensus Estimate stand at 9 cents.
Hertz carries a Zacks Rank #3 (Hold). Though Zacks Rank #1, 2 or 3
increases the predictive power of ESP, the company's ESP of 0.00%
makes surprise prediction difficult.
We caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our model
shows they have the right combination of elements to post an
), Earnings ESP of +6.52% and a Zacks Rank #1 (Strong Buy).
Five Below, Inc.
), Earnings ESP of +7.69% and a Zacks Rank #2 (Buy).
Fortune Brands Home & Security, Inc.
), Earnings ESP of +3.51% and a Zacks Rank #3.
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