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Is Hertz (HTZ) Stock Undervalued Right Now?

Zacks Equity Research

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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). HTZ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.11, while its industry has an average P/E of 17.06. Over the past 52 weeks, 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.

Investors should also recognize that HTZ has a P/B ratio of 1.35. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.60. Over the past 12 months, HTZ's P/B has been as high as 1.71 and as low as 0.89, with a median of 1.28.

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.


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