In his first "Executive Decision" segment on Thursday evening, Jim Cramer spoke with Stephen Scherr, CEO of Hertz Global Holdings, Inc. (HTZ) , the 103 year old rental car giant that saw its shares dip 6.8% after reporting an upbeat quarter.
Scherr said the mobility market is changing, and Hertz remains at the center of it, having cleaned up its balance sheet after the company's recent bankruptcy.
Hertz is about a lot more than just travelers at the airport, Scherr added, as the company now rents vehicles to everyone from corporate fleets to Uber (UBER) -- drivers. Both leisure travel and business travel are coming back, he said, and Hertz is near pre-pandemic level.
The company is finding electric cars garner higher rental rates with lower maintenance costs, making them more profitable.
Let's check our own dashboard of charts and indicators on HTZ.
When we look at this daily bar chart of HTZ, below, we can approach it two ways. One view is to say that prices have moved sideways the past 10 months. Another view is that prices have been in a downtrend since November. Prices tested the 50-day moving average line and the recently calculated 200-day line on Thursday. A close below these two indicators would not surprise me.
The On-Balance-Volume (OBV) line has been in a decline since November telling me that sellers of HTZ are more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is just barely above the zero line.
In this weekly Japanese candlestick chart of HTZ, below, we can see a number of small real bodies which suggest a balance between bulls and bears but the chart also shows us several upper shadows telling us that traders are rejecting the highs.
In this daily Point and Figure chart of HTZ, below, we can see a potential downside price target in the $17 area.
Bottom-line strategy: The charts of HTZ are limited on history but the indicators suggest lower prices ahead. Avoid the long side.