On Mar 1, 2013, Zacks Investment Research upgraded
Hertz Global Holdings, Inc.
) to a Zacks Rank #1 (Strong Buy). The company has amassed a
solid return of roughly 39% over the past one year.
Why the Upgrade?
Hertz has been witnessing rising earnings estimates on the
back of better-than-expected fourth-quarter 2012 results, buoyed
by modest economic recovery, new market opportunities, cost
containment efforts, improving trends in the equipment rental
business and the strategic acquisition of Dollar Thrifty
Hertz, which competes with
Avis Budget Group Inc.
), declared impressive results on Feb 25, 2013, wherein adjusted
earnings of 33 cents a share surged 37.5% from 24 cents delivered
in the year-ago quarter, and surpassed the Zacks Consensus
Estimate of 32 cents by 3.1%.
This car rental company has outperformed the Zacks Consensus
Estimate for 11 straight quarters by an average of 51%. The
long-term expected earnings growth rate for the stock is 12%.
Total revenue came in at $2,318.5 million, jumping 15.1% year
over year and reflecting sales increases of 14% and 21.2% across
the car rental and equipment rental segments, respectively. Total
revenue also came ahead of the Zacks Consensus Estimate of $2,249
Buoyed by stronger-than-anticipated results, management now
expects revenue between $10,850 million and $10,950 million for
2013, and projects earnings in the range of $1.82 to $1.92 per
Following sturdy results, the Zacks Consensus Estimate for
2013 rose 2.8% to $1.86 per share over the last 7 days. For 2014,
the Zacks Consensus Estimate inched up 0.9% over the same
timeframe to $2.30 per share.
Other Stocks to Consider
Other stocks worth considering in the business services sector
SPS Commerce, Inc.
), both of which carry a Zacks Rank #1 (Strong Buy).
AVIS BUDGET GRP (CAR): Free Stock Analysis
HERTZ GLBL HLDG (HTZ): Free Stock Analysis
SPS COMMERCE (SPSC): Free Stock Analysis
VIAD CORP (VVI): Free Stock Analysis Report
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