Important note

This AI stock analysis for Hertz is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Hertz - AI Stock Analysis

Analysis generated April 18, 2025

Hertz Global Holdings, Inc. (HTZ) is one of the largest vehicle rental companies in the world. Founded in 1918, Hertz operates under the Hertz, Dollar, and Thrifty brands in approximately 10,200 corporate and franchise locations across North America, Europe, the Caribbean, Latin America, Africa, the Middle East, Asia, Australia, and New Zealand. The company offers a wide variety of rental cars, including compact, luxury, and electric vehicles, to both business and leisure travelers.

Fundamental Analysis

The latest revenue figures for Hertz reached $2.04 billion in the last quarter, which represented a decrease of 20.81% compared to the previous quarter and a 6.59% decline compared to the same quarter last year. This decline in revenue is a concerning metric, indicating potential challenges in market demand or operational efficiency.

On a positive note, the net income for the latest quarter was $479 million, marking a significant 64.04% increase compared to the previous quarter. However, this is tempered by a 37.64% decline compared to the same quarter last year, suggesting some underlying instability in profitability.

The EBITDA for the last quarter stood at $493 million, showcasing a robust increase of 256.51% compared to the previous quarter. Despite this impressive short-term growth, there was a 29.17% decline compared to the same quarter last year, which may raise questions about long-term sustainability.

The current P/E ratio of 24 appears to be within a normal range, neither showing signs of being overvalued nor significantly undervalued. However, recent insider selling could be a bearish signal, potentially indicating a lack of confidence among company management regarding future stock price performance.

Technical Analysis

Today’s stock price of Hertz is $8.24, reflecting a dramatic increase of 136.78% over the past month. Compared to a year ago, there's a 38.02% increase, suggesting that the stock has been on an upward trend in both the short and long term.

The 10-day Simple Moving Average (SMA10) is currently at 4.99, higher than the previous SMA10 of 4.53, indicating potential upward momentum in price movement. The Relative Strength Index (RSI) is at 34.2, which is neutral, indicating neither overbought nor oversold conditions.

Alternative Data Analysis

On the job postings front, Hertz has 717 open positions, which is down 24% in the last few months. This decrease may suggest cost-cutting measures or attempts to improve margins, which can be a red flag for growth prospects.

Employee sentiment remains neutral but has improved by 39% in the last couple of months, a positive sign pointing toward better business outlook among the workforce.

Customer acquisition data shows an estimated 8.4 million visitors to their website, up by 16% in recent months, suggesting an increase in potential customer interest. However, user engagement via mobile apps has declined by 28% over the same period, a worrying sign for customer retention.

On social media, Hertz has 72,000 Instagram followers (up 3% recently) and 78,000 Twitter followers (unchanged), indicating mixed but generally increased social engagement.

Lastly, AltIndex’s AI score for Hertz is 44, signaling a “hold” recommendation based on a combination of fundamental, technical, and alternative data analyses.

Conclusion and Recommendation

Hertz offers a mixed picture. While there are significant short-term gains in net income and EBITDA, the year-over-year declines in these metrics and revenue cast some doubt on long-term growth sustainability. The stock has shown a strong bullish trend recently; however, insider selling may hint at internal concerns. Alternative data suggests potential consolidation with reduced job postings but improved employee sentiment and increased website traffic.

Given the current analysis, a cautious approach is recommended. Investors may consider holding existing positions in Hertz, keeping an eye on upcoming earnings reports and market conditions for further insights.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.