Aug. 20, 2025 at 4:06 PM ET6 min read

Hertz Stock Alert: What’s Driving the Price Surge?

Tim BohenAvatar
Written by Tim Bohen
Reviewed by Ben Sturgill Fact-checked by Ellis Hobbs

Hertz Global Holdings Inc.’s stocks have been trading up by 5.63 percent, driven by strong earnings and growth performance.

Key Market Movers

  • Hertz’s Rent2Buy program now includes over 100 cities, making car purchases more customer-friendly. With 80% of participants buying the vehicle they tried, this expansion reflects strong consumer interest.
  • Pershing Square has notably upped its ownership in major companies, including Hertz, possibly indicating confidence in Hertz’s future growth prospects alongside other leading brands like Alphabet and Hilton.

  • Hertz’s Q2 results were stronger than expected, with earnings per share beating predictions and revenues slightly exceeding expectations. This points to operational improvements within the company.

  • Strategic expansions, like the Rent2Buy program and effective cost controls, underscore Hertz’s focus on long-term growth, innovation, and customer satisfaction.

  • Susquehanna’s upward adjustment of Hertz’s price target to $6, from $5, signals a market perception of potential growth, despite retaining a neutral rating.

Candlestick Chart

Live Update At 16:05:20 EST: On Wednesday, August 20, 2025 Hertz Global Holdings Inc stock [NASDAQ: HTZ] is trending up by 5.63%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Overview on Financial Performance

Time and experience have taught me that missed opportunities are part of the game. There’s always another setup around the corner.

In a world where numbers often tell the stories better than words, Hertz’s recent financial statements unmask a tale of transformation and resilience. The company’s latest results demonstrate a commendable progress in efforts to streamline operations amidst an intricate dance of gross margin fluctuations standing at 39.3%.

Financial metrics revealed a nuanced landscape: Hertz achieved a remarkable feat, reporting revenue figures of $9.049 billion. While the enterprise value hints at high market expectations pegged at $21.03 billion, analysts grapple with the undercurrents of debt dynamics, evident in the total liabilities tally nearing $23.59 billion.

Looking inward, the income statement presents a narrative painted with both red and green. A revenue of $2.185 billion this past quarter exceeded analyst estimates while the gross profit amounted to $791 million, adding a shimmer of light against the backdrop of $2.439 billion in total expenses. This dichotomy relays a story of growing pains as Hertz maneuvers through the remnants of past corporate restructurings.

Hertz’s quarterly report showcases a balancing act, spotlighting areas of strategic focus such as enhancing operational efficacy. Depreciation and amortization contributions are acute highlights, reinforcing the capital-intensive nature of this industry. It’s no surprise then that Hertz’s stock’s trajectory aligns with broader economic patterns, and the recent uptick can be credited to this finely tuned operational orchestra where each note hits strategically.

Unpacking the News Impact

Expansion and Strategic Developments

The Rent2Buy program expansion plays a critical role in Hertz’s current momentum. With a broad sweep across over 100 cities, it positions Hertz as a customer-centric innovator in the car sales market. This “try before you buy” concept has proven effective, as highlighted by a staggering 80% conversion rate from rental to purchase, reinforcing Hertz’s strategic foresight in customer acquisition and retention.

This endeavor underscores a customer-first approach, marrying car rental convenience with purchase flexibility. Furthermore, it distinguishes Hertz in the competitive car sales sector, positioning it to leverage automobile industry trends that favor versatile purchasing options.

Financial Tendencies and Investor Confidence

Investors are taking note, as evidenced by Pershing Square’s increased stake—a vote of confidence in Hertz’s potential for rebound and growth. This strategic investment signals investor belief in Hertz’s potential prosperity alongside giants like Alphabet, suggesting a renaissance of sorts within Hertz as a competitive entity.

The revised price target by Susquehanna further amplifies the narrative of potential, even amidst a backdrop of cautious optimism. It underscores the narrative that, while the road may be riddled with challenges, the possibilities for reward remain genuinely enticing if navigated wisely.

More Breaking News

Earnings and Market Perception

Hertz’s earnings unveil a positive story, one facilitated by effective cost management and operational prowess. Beating analyst expectations with narrowed losses suggests an encouraging trend of recovery. Operational efficiency reforms manifest themselves in strategic advancements that bolster both fiscal health and market standing.

The interplay of earnings, market perception, and strategic aspirations is notable here. These components drive Hertz’s narrative, spurring conversations of potential growth as reforms in profitability disciplines set the stage for longer-term success.

In essence, Hertz exemplifies a character in flux, juggling past errors with present-day reforms to craft a forward-looking vision in the rental and sales market. With key players signaling faith and strategic moves underway, the signs point to a spirited pursuit of innovation and growth amidst challenging terrains. As Tim Bohen, lead trainer with StocksToTrade says, “Time and experience have taught me that missed opportunities are part of the game. There’s always another setup around the corner.” This perspective is vital for traders watching Hertz’s evolving narrative.

In reflections of my ten years navigating the lucrative maze of stock analysis, I’ve witnessed many ebbs and flows. This moment with Hertz feels significant. With fresh strategic advances and improved financials, it appears poised for a compelling return to form—reminding me of tales of underdogs rewriting their destinies. As we chart these waters, it helps to remember: the stock market thrives on narratives, and Hertz is certainly crafting a compelling one worth watching closely.

This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.

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