Hertz Capitalizes on TSA Delays with Increased Rentals
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy HTZ?
Source: stocktwits
- Surge in Customer Demand: Currently, 33% of Hertz's customers are renting cars for road trips to circumvent TSA delays, indicating a strong consumer shift towards alternative transportation methods, which is expected to drive growth in Hertz's rental business.
- Positive Market Reaction: Hertz's stock soared over 16% in Thursday morning trading, reflecting investor optimism about the company's ability to capitalize on market opportunities arising from TSA delays, thereby boosting market confidence.
- Significant Traffic Increase: Hertz experienced a 15% rise in website search traffic, suggesting that consumers are actively seeking backup plans for delays, a trend that could further enhance Hertz's market share and brand influence.
- Flexible Strategic Adjustments: Hertz's allowance for customers to book cars at neighborhood locations to avoid airport disruptions not only improves customer experience but may also enhance customer loyalty, further solidifying its market position.
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Analyst Views on HTZ
Wall Street analysts forecast HTZ stock price to rise
3 Analyst Rating
0 Buy
2 Hold
1 Sell
Moderate Sell
Current: 4.600
Low
3.00
Averages
4.83
High
6.00
Current: 4.600
Low
3.00
Averages
4.83
High
6.00
About HTZ
Hertz Global Holdings, Inc. is a car rental and mobility solutions provider. The Company's subsidiaries and licensees operate the Hertz, Dollar, Thrifty and Firefly vehicle rental brands with more than 11,000 rental locations in 160 countries around the globe, as well as the Hertz Car Sales brand, which offers a range of used cars for sale online and at locations across the United States, and the Hertz 24/7 car sharing business in Europe. The Company's segments include Americas RAC and International RAC. Its Americas RAC segment includes rental of vehicles, as well as sales of vehicles and value-added services, in the United States, Canada, Latin America and the Caribbean. The Company's International RAC segment includes rental of vehicles, as well as sales of vehicles and value-added services, in locations other than the United States, Canada, Latin America and the Caribbean. The Company has franchisees and partners that operate rental locations under its brands.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Impact of Airport Chaos: As the partial government shutdown affects domestic airports, more travelers are opting for rental cars, with Hertz Global experiencing a roughly 15% surge in web traffic, reflecting consumers' adaptability in response to airport congestion.
- Notable Short Selling Risks: As of mid-March, 23.5% of Avis Budget's float was still sold short, which could trigger a short squeeze that drives the stock price sharply higher, while also facing risks from economic downturns or global unrest.
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