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Herc Holdings (HRI) Surges 5.3%: Is This an Indication of Further Gains?

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Herc Holdings (HRI - Free Report) shares rallied 5.3% in the last trading session to close at $152.89. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 13.4% gain over the past four weeks.

Herc Holdings is being well-served by the uptick in demand for equipment rental services across HRI's markets. As a result, HRI shares have gained 29.6% in the past six months. Recently, Daiwa Securities Group upped its stake in HRI. Some other large investors like PFS Investments have also boosted their respective stakes in HRI. Riding on the bullishness surrounding the company, KeyCorp lifted its target price on HRI shares.

This equipment rental supplier is expected to post quarterly earnings of $3.50 per share in its upcoming report, which represents a year-over-year change of +42.3%. Revenues are expected to be $773 million, up 33.7% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Herc Holdings, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on HRI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Herc Holdings is a member of the Zacks Transportation - Equipment and Leasing industry. One other stock in the same industry, Ryder (R - Free Report) , finished the last trading session 1.1% lower at $92.48. R has returned 12.8% over the past month.

For Ryder, the consensus EPS estimate for the upcoming report has changed -1.2% over the past month to $3.60. This represents a change of +2.3% from what the company reported a year ago. Ryder currently has a Zacks Rank of #3 (Hold).


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