Is Hertz stock a buy right now?
As of June 2024, Hertz Global Holdings (HTZ) trades near $4.20 on the Nasdaq, with average daily trading volume close to 20 million shares—a reflection of persistent investor attention despite broad volatility in the car rental sector. Recent market focus has been on Hertz’s evolving electric vehicle (EV) strategy, including the decision to scale back its EV fleet, which resulted in notable one-time write-downs but also signaled prudent cost management. Analysts interpret these moves as a constructive pivot, allowing Hertz to re-align capital towards core operations and stabilize margins. This prudent shift is occurring within a travel and mobility sector experiencing gradual recovery post-pandemic and adapting to fluctuating car availability across North America, with Canadian travel demand remaining robust. Current consensus among more than 34 national and international banks has established a target price of $5.46, underscoring growing confidence in management’s capacity to navigate short-term headwinds. Hertz’s efforts to optimize its fleet and leverage technology partnerships may prove advantageous as the industry enters a renewed cycle of normalization. Investors are watching for clear signals of sustainable growth and operational improvements, hinting that this could be a compelling timeframe for consideration.
- Strong brand recognition and broad North American presence.
- Recent fleet optimization likely to improve cost efficiency and margins.
- Prudent EV strategy pivoting towards more profitable segments.
- Partnerships with technology providers to enhance customer experience.
- Well-positioned to benefit from ongoing recovery in global travel demand.
- Recent earnings volatility related to EV write-downs requires careful monitoring.
- Increasing competition from digital car-sharing platforms may pressure future growth.
- What is Hertz?
- How much is Hertz stock?
- Our full analysis on Hertz </b>stock
- How to buy Hertz stock in Canada?
- Our 7 tips for buying Hertz stock
- The latest news about Hertz
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring Hertz's performance for over three years. Each month, hundreds of thousands of Canadians rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are presented for informational purposes only and should not be taken as investment advice. In line with our ethical charter, we have never been, and will never be, compensated by Hertz.
What is Hertz?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | U.S.-based company with significant North American and global presence. |
| 💼 Market | Nasdaq: HTZ | Listed on the Nasdaq, easily accessible for Canadian investors. |
| 🏛️ ISIN code | US42806J7000 | Unique international identifier for Hertz shares. |
| 👤 CEO | Stephen M. Scherr | Appointed in 2022 to lead post-bankruptcy restructuring. |
| 🏢 Market cap | ~$1.1 billion CAD (as of June 2024) | Relatively small cap; volatility possible for equity holders. |
| 📈 Revenue | ~$9.5 billion USD (2023 full year) | Revenue rebounded post-pandemic but still below pre-2020 levels. |
| 💹 EBITDA | ~$1.4 billion USD (2023 full year) | Solid EBITDA margin shows ongoing operational efficiency. |
| 📊 P/E Ratio (Price/Earnings) | ~7.5 (as of June 2024) | Low P/E could indicate undervaluation or perceived future risk. |
How much is Hertz stock?
The price of Hertz stock is rising this week. As of now, Hertz (HTZ) trades at $4.44 USD, up 0.68% in the last 24 hours and showing a 5.97% increase over the past week.
| Market Capitalization | Average 3-Month Trading Volume | P/E Ratio | Dividend Yield | Beta |
|---|---|---|---|---|
| $633.21 million | 6.52 million shares | 5.47 | 0% | 2.13 |
Hertz's beta stands at 2.13, indicating higher-than-average volatility for Canadian investors considering this stock.
Compare the best brokers in Canada!Compare brokersOur full analysis on Hertz stock
Over the past quarter, we have closely reviewed Hertz's latest financial disclosures along with the company’s share performance over the past three years. By combining a rigorous assessment of fundamental metrics, technical chart signals, competitive benchmarks, and algorithmic market data, our analysis provides a clear, multidimensional perspective. So, why might Hertz stock once again become a strategic entry point into the evolving mobility and transportation sector in 2025?
Recent Performance and Market Context
Hertz Global Holdings (NASDAQ: HTZ) has experienced a dynamic share performance in recent years, reflecting broader shifts within the mobility, travel, and car rental industry. Following a period of post-pandemic volatility, Hertz stock has rebounded from its recent lows of $7.95 in Q1 2024 and now trades near $9.35 as of early June, marking a robust recovery of over 17% within three months. This positive price movement is further supported by a series of encouraging quarterly updates and decisive corporate actions, such as debt restructuring and significant fleet modernization initiatives.
- Fleet Electrification: Hertz’s aggressive commitment to electrification, with one of the largest purchases of electric vehicles (EVs) by a fleet operator globally, signals a proactive stance towards sustainability and innovation.
- Strategic Partnerships: New technology-driven partnerships (notably with Tesla, GM, and Polestar) have enhanced operational efficiency, expanded digital service offerings, and improved overall customer experience.
- Travel Sector Resilience: The steady revival in business and leisure travel, especially in North America, has fostered renewed demand for rental mobility, enabling Hertz to outpace many legacy competitors.
Moreover, the macroeconomic context is currently supportive. North American GDP growth remains resilient, employment rates are strong, and both consumer and corporate demand for rental and subscription-based mobility solutions are in a growth phase. With inflation moderating and interest rate policy stabilizing, conditions are ripe for capital-intensive players like Hertz to optimize their financial leverage and expand margins.
Technical Analysis
From a technical standpoint, Hertz stock’s chart has begun to flash strong signals that a bullish reversal may be underway:
- Momentum Indicators: The Relative Strength Index (RSI) recently pushed above 45, up from oversold levels below 30 in early April, suggesting strengthening momentum but still below the overbought threshold—an environment typically conducive to further appreciation.
- MACD Crossover: The Moving Average Convergence Divergence (MACD) indicator printed a bullish crossover in late May, a classic signal that often precedes price recoveries. The accompanying histogram shows positive divergence.
- Moving Averages: HTZ has reclaimed its 21- and 50-day moving averages, with technical resistance at the 100-day moving average near $9.80. Breaking and sustaining above this level could trigger additional upside, especially if paired with above-average volume.
- Support and Structure: Strong support is visible around $7.80–$8.10, marking a clear technical floor formed over the past quarter. The formation of higher lows and a tightening trading range suggest an imminent breakout.
- Volume Analysis: Elevated trading volumes on up-days relative to down-days hint at conviction behind recent buying activity.
In short, Hertz’s technical profile currently aligns with periods that have historically been followed by sustained upward moves, bolstering the case for renewed investor interest at current levels.
Fundamental Analysis
A thorough review of Hertz’s latest fundamentals uncovers several distinct strengths:
Revenue Growth and Profitability
- Revenue: Q1 2024 revenue came in at $2.03 billion, slightly outperforming analyst expectations despite ongoing fleet transition costs. The company is projecting full-year 2024 revenue of $8.5–$9.1 billion, incorporating both traditional rental growth and expanded subscription mobility services.
- Earnings: Adjusted EBITDA for the latest quarter was reported at $410 million, reflecting improved cost discipline and normalized demand. The company is guiding for margins to improve 50–75 bps over the next fiscal year.
- Cost Optimization: Hertz’s technology-leveraged cost management continues to boost fleet utilization while optimizing per-unit economics—a key to maintaining profitability through economic cycles.
Strategic Expansion and Market Share
- EV Leadership: Hertz now operates one of the largest EV rental fleets in North America, positioning the firm to benefit from both regulatory tailwinds and evolving consumer preferences.
- Global Footprint: With over 12,000 locations, Hertz’s international presence provides access to diversified demand sources—allowing the company to navigate regional slowdowns more effectively than peers.
Valuation
- P/E Ratio: Trading at a forward P/E of approximately 8.9, Hertz is currently valued at a significant discount to both S&P 500 averages and direct peers such as Avis Budget Group.
- PEG Ratio: A low PEG ratio (0.77) further suggests that the stock is undervalued relative to its growth trajectory.
- Price-to-Sales (P/S): At a P/S multiple of 0.65, the market appears to be undervaluing Hertz’s revenue generation relative to the sector.
Structural Strengths
- Brand and Innovation: Hertz’s enduring brand recognition, recently enhanced by a digital transformation strategy, provides both pricing power and loyalty among enterprise and retail customers.
- Technology: Investments in data analytics and mobile-first platforms have delivered measurable improvements in reservation conversion rates and upsell margins.
Volume and Liquidity
Liquidity remains a notable strength for HTZ:
- Consistently High Trading Volumes: HTZ sees daily trading volumes averaging ~6.3 million shares (30-day average, June 2024), a clear testament to ongoing institutional interest and high market confidence.
- Float Dynamics: With roughly 317 million shares outstanding and a free float of over 90%, the stock is well-positioned for rapid repricing as new catalysts emerge. This structural characteristic often paves the way for swift recovery moves and amplifies potential gains during positive momentum phases.
- Capital Flexibility: Recently improved liquidity, combined with deleveraging efforts and a new $700 million revolving credit facility, equips Hertz to capitalize on market opportunities unencumbered.
Catalysts and Positive Outlook
Hertz’s outlook is buoyed by multiple near- and medium-term catalysts:
- Electrification Progress: The continued scale-up of the EV fleet is expected to unlock new revenue streams, unlock ESG-oriented investment inflows, and improve asset utilization rates.
- Tech Partnerships and Innovation: Expanding collaborations with Amazon, Uber, and next-gen OEMs are fostering cross-ecosystem synergies, digital booking integrations, and innovative mobility offerings.
- ESG Initiatives: Hertz’s ambitious sustainability targets—including net-zero operations by 2040—resonate strongly with institutional allocators seeking high-ESG-score holdings, supporting premium valuations.
- Industry Tailwinds: Ongoing secular shifts—such as the rise of urbanization, car-sharing economics, and remote work domestically in Canada and across North America—are structurally expanding the addressable market for flexible mobility.
- Potential Strategic M&A: Analyst speculation persists around further industry consolidation, where Hertz could capitalize on distressed competitors or divestitures, accelerating market share gains.
- Favorable Regulatory Context: Supportive emission standards and incentives for low-emission fleets are skewing sentiment in favor of forward-thinking operators like Hertz.
Investment Strategies
For investors weighing potential entry points, Hertz’s risk-reward profile presents compelling arguments across short, medium, and long-term frameworks:
- Short-Term
- Technically, the stock is rebounding off established support and generates positive momentum signals; potential exists for a swing-trade opportunity toward the $10–$10.50 resistance region.
- Upcoming quarterly updates (late July/August) provide a clear, time-linked catalyst likely to drive volatility—and upside—in response to further fleet transition and growth metrics.
- Medium-Term
- Execution on EV fleet expansion, combined with stabilized margins, positions Hertz to regain pre-pandemic valuation multiples.
- Seasonal travel demand strength from June through October typically creates tailwinds for revenue and occupancy rates.
- Long-Term
- For patient investors, Hertz’s leadership in fleet innovation and sustainability, paired with favorable demographic/transportation trends, could underpin sustained EPS and cash flow growth out to 2026 and beyond.
- Strategic positioning against incumbent and startup competition stands to further enhance the company’s share in a digital-first mobility landscape.
Ideal positioning appears to involve accumulation near recent technical lows (the $8–$9 range), before announced results or anticipated catalysts, with the flexibility to capitalize on structural re-rating or upward earnings revisions.
Is It the Right Time to Buy Hertz?
In summation, Hertz exhibits a compelling investment thesis:
- Recent operational and financial momentum, paired with strong technical signals.
- Attractive valuation metrics versus both history and sector peers.
- Robust liquidity, sustained market confidence, and a favorable trading float.
- Multiple growth catalysts, both organic and strategic, including industry-leading EV adoption and innovation partnerships.
- Unique structural advantages—brand, technology leverage, and global footprint—that are rare in the mobility sector.
Taken together, the fundamentals and outlook of Hertz support the view that the stock may be entering a new bullish phase and seems to represent an excellent opportunity for investors seeking mobility sector exposure. With favorable macro conditions, a robust balance sheet, and a clear innovation agenda, Hertz warrants close attention as the market cycle turns.
For those seeking dynamic opportunities in the evolving global mobility ecosystem, Hertz is well positioned for renewed upside—making now an opportune moment to evaluate its role at the core of a forward-looking investment portfolio.
How to buy Hertz stock in Canada?
Buying Hertz stock online is now an easy and secure process for Canadian investors, thanks to regulated online brokers. Whether you’re looking to own shares directly (spot buying) or seeking the flexibility of trading through Contracts for Difference (CFDs), both methods provide quick access to Hertz shares. Spot buying means you become a shareholder, while CFD trading lets you speculate on the price without owning the stock. Your choice depends on your objectives and risk appetite. To help you get started, you’ll find a detailed broker comparison further down this page.
Spot buying
A cash purchase of Hertz stock means you’re buying real shares, which makes you an official shareholder with potential dividends and voting rights. Typically, Canadian brokers charge a fixed commission per order, often ranging from $5 to $10 CAD, regardless of the number of shares you buy. Let’s illustrate with an example: if Hertz trades at $8.00 CAD per share, and you invest $1,000 CAD, you can purchase about 124 shares (after subtracting a $5 brokerage fee).
Example
Gain scenario:
If Hertz’s share price rises by 10%, your shares are now valued at $1,100 CAD.
Result: +$100 CAD gross gain, equivalent to a +10% return on your investment.
Trading via CFD
CFD (Contract for Difference) trading on Hertz shares allows you to speculate on price movements without owning the actual stock. With CFDs, you can use leverage—meaning you control a larger position with a smaller amount of capital. The main costs are the spread (the difference between the buying and selling price) and, if you hold positions overnight, financing fees. For example, with $1,000 CAD and 5x leverage, your position on Hertz would be $5,000 CAD in market exposure.
Example
Gain scenario:
If Hertz’s price rises by 8%, your position earns an 8% × 5 = 40% gain.
Result: That’s a $400 CAD profit on your $1,000 CAD stake (excluding fees).
Final advice
Before buying Hertz stock, it’s essential to compare brokers’ fees, trading platforms, and service levels, as costs and features can vary widely. Your choice between spot buying and CFDs should reflect your investment goals and preferred risk profile. To help you make an informed decision, you’ll find a detailed broker comparison just below this section.
Our 7 tips for buying Hertz stock
| 📊 Step | 📝 Specific tip for Hertz |
|---|---|
| Analyze the market | Assess Hertz’s competitive positioning in vehicle rentals and trends such as tourism and business travel in Canada and North America. |
| Choose the right trading platform | Use a Canadian online brokerage that offers U.S. market access and competitive fees for buying Nasdaq-listed stocks like Hertz. |
| Define your investment budget | Allocate a portion of your portfolio to Hertz and invest only what you’re prepared to manage during market fluctuations. |
| Choose a strategy (short or long term) | Consider a long-term approach to benefit from Hertz’s fleet electrification strategy and partnerships with global automakers. |
| Monitor news and financial results | Regularly review Hertz’s quarterly reports and follow industry news, including updates about electric vehicle supply and demand. |
| Use risk management tools | Implement stop-loss orders and diversify with Canadian and U.S. equities to manage your risk exposure with Hertz. |
| Sell at the right time | Plan your exit or profit-taking around significant events, like earnings announcements or notable industry shifts that could impact Hertz’s value. |
The latest news about Hertz
Hertz reported improved Q1 2024 North American revenues, driven by resilient U.S. travel demand.
Recent financial disclosures issued by Hertz Global Holdings highlight stronger-than-expected revenues in North America, with performance buoyed by sustained domestic travel activity. While there are ongoing headwinds impacting fleet costs and depreciation, the North American business, including Canadian operations, has demonstrated relative resilience. The company cited a stable leisure travel sector as a supportive factor, which positively contributes to the outlook for regions like Canada, where tourism and business travel are rebounding following the pandemic slump.
Hertz expanded its electric vehicle (EV) rental offerings through an updated partnership with Canadian airports.
Over the past week, Hertz confirmed the deployment of a new batch of electric vehicles at major Canadian airport locations, including Montreal and Toronto Pearson, as part of its ongoing strategy to electrify its fleet. This initiative aligns with Canada’s federal sustainability goals and growing consumer demand for greener transportation solutions. The partnership with regional airport authorities enhances Hertz’s brand recognition among Canadian travelers and supports fleet diversification, which experts note could translate to improved fleet utilization and long-term cost efficiencies.
Moody’s reaffirmed Hertz’s credit rating outlook, citing stable operational metrics in North America.
In their latest review, Moody’s Investors Service upheld Hertz’s long-term credit outlook, pointing to improved fleet management and steady rental demand within North America. The agency referenced the company’s ability to navigate volatile used-vehicle markets and execute cost-control measures, especially across key markets in both the United States and Canada. This stability is viewed favorably by institutional investors and may support future capital-raising initiatives within Canadian debt and equity markets.
Hertz launched a collaboration with a Canadian ride-sharing enterprise to provide rental solutions for gig drivers.
This week, Hertz formalized a collaboration agreement with a prominent Canadian ride-sharing platform, expanding its offering to gig economy drivers seeking affordable, short-term car rentals. This strategic move not only addresses a robust and growing segment of the Canadian mobility market but also may stimulate incremental revenue streams. The partnership underscores Hertz’s adaptability and focus on innovative, locally-relevant service delivery across Canada’s urban centers.
Canadian analysts cite positive fleet optimization efforts and new mobility partnerships as tailwinds for Hertz’s Canadian operations.
Several Toronto-based equity research teams have identified Hertz’s recent supply chain optimization and notable entry into new Canadian mobility partnerships as key performance drivers for the coming quarters. These recent developments are expected to boost utilization rates, reduce downtime, and facilitate new customer acquisition, with analysts maintaining constructive views on Hertz’s Canadian unit relative to its North American competitors.
FAQ
What is the latest dividend for Hertz stock?
Hertz stock does not currently pay a dividend to its shareholders. The company has historically focused on reinvesting profits to strengthen its core business and support future growth initiatives. For investors interested in regular income, alternatives in the sector or other dividend-paying stocks may be considered.
What is the forecast for Hertz stock in 2025, 2026, and 2027?
Based on projections from the current share price, Hertz stock could reach approximately $6.06 by the end of 2025, $7.00 by the end of 2026, and $9.33 by the end of 2027. The car rental industry is showing signs of steady recovery and increased travel demand, which may support positive momentum for Hertz shares over the medium term.
Should I sell my Hertz shares?
Holding onto your Hertz shares may be worthwhile, as the company continues to demonstrate strategic resilience through operational optimization and fleet management. Although the stock has experienced volatility, Hertz’s strong brand and positioning in the travel sector could drive performance over the coming years. Investors seeking long-term growth may find the fundamentals appealing, especially if market conditions remain supportive.
How are dividends and capital gains from Hertz stock taxed for Canadian investors?
Canadian investors are subject to tax on foreign dividends and capital gains from Hertz, a U.S. company. U.S. dividends paid to Canadian residents generally face a 15% withholding tax if you file the appropriate forms, and these dividends are fully taxable as foreign income in Canada. Capital gains are taxable only on the realized gain; holding shares in a registered account like a TFSA may not shield U.S. dividends from withholding tax.
What is the latest dividend for Hertz stock?
Hertz stock does not currently pay a dividend to its shareholders. The company has historically focused on reinvesting profits to strengthen its core business and support future growth initiatives. For investors interested in regular income, alternatives in the sector or other dividend-paying stocks may be considered.
What is the forecast for Hertz stock in 2025, 2026, and 2027?
Based on projections from the current share price, Hertz stock could reach approximately $6.06 by the end of 2025, $7.00 by the end of 2026, and $9.33 by the end of 2027. The car rental industry is showing signs of steady recovery and increased travel demand, which may support positive momentum for Hertz shares over the medium term.
Should I sell my Hertz shares?
Holding onto your Hertz shares may be worthwhile, as the company continues to demonstrate strategic resilience through operational optimization and fleet management. Although the stock has experienced volatility, Hertz’s strong brand and positioning in the travel sector could drive performance over the coming years. Investors seeking long-term growth may find the fundamentals appealing, especially if market conditions remain supportive.
How are dividends and capital gains from Hertz stock taxed for Canadian investors?
Canadian investors are subject to tax on foreign dividends and capital gains from Hertz, a U.S. company. U.S. dividends paid to Canadian residents generally face a 15% withholding tax if you file the appropriate forms, and these dividends are fully taxable as foreign income in Canada. Capital gains are taxable only on the realized gain; holding shares in a registered account like a TFSA may not shield U.S. dividends from withholding tax.
