Herc Holdings stock just took a punch, sliding about 7% in a single session, while the latest earnings tell a far more mixed story than that one day move suggests. Q2 equipment rental revenue reached US$1.2b and net income landed at US$19m. That is a modest profit on a large revenue base, not a collapse.

The real headline is the squeeze between a high trailing P/E of 101.1x and thin 1% net margins, even after reported earnings over the last year more than doubled. The market appears focused on the valuation strain rather than the operational performance underneath.

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