Investors in Hertz Global Holdings (NASDAQ:HTZ) have seen returns of 14% over the past year
Diversification is a key tool for dealing with stock price volatility. But if you're going to beat the market overall, you need to have individual stocks that outperform. One such company is Hertz Global Holdings, Inc. (NASDAQ:HTZ), which saw its share price increase 14% in the last year, slightly above the market return of around 14% (not including dividends). We'll need to follow Hertz Global Holdings for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.
View our latest analysis for Hertz Global Holdings
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
During the last year Hertz Global Holdings saw its earnings per share (EPS) increase strongly. This remarkable growth rate may not be sustainable, but it is still impressive. We are not surprised the share price is up. Strong growth like this can be evidence of a fundamental inflection point in the business, making it a good time to investigate the stock more closely.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
We know that Hertz Global Holdings has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on Hertz Global Holdings' balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Hertz Global Holdings shareholders have gained 14% over twelve months, which isn't far from the market return of 16%. A substantial portion of that gain has come in the last three months, with the stock up 11% in that time. It could be that word is spreading about its positive business attributes. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Hertz Global Holdings is showing 3 warning signs in our investment analysis , you should know about...
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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