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Will Hertz Global Holdings, Inc. (HTZ) Gain on Rising Earnings Estimates?

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Investors might want to bet on Hertz Global Holdings, Inc. (HTZ - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.

The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this company, should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

Consensus earnings estimates for the next quarter and full year have moved considerably higher for Hertz Global Holdings, Inc. As there has been strong agreement among the covering analysts in raising estimates.

Current-Quarter Estimate Revisions

The company is expected to earn $1.41 per share for the current quarter, which represents a year-over-year change of +17.5%.

Over the last 30 days, the Zacks Consensus Estimate for Hertz Global Holdings, Inc. has increased 37.07% because four estimates have moved higher compared to no negative revisions.

Current-Year Estimate Revisions

For the full year, the earnings estimate of $4.41 per share represents a change of +0.46% from the year-ago number.

The revisions trend for the current year also appears quite promising for Hertz Global Holdings, Inc. with three estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 19.52%.

Favorable Zacks Rank

The promising estimate revisions have helped Hertz Global Holdings, Inc. earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Investors have been betting on Hertz Global Holdings, Inc. because of its solid estimate revisions, as evident from the stock's 27.2% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.


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