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Herc Holdings (HRI) Moves 6.0% Higher: Will This Strength Last?

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Herc Holdings (HRI - Free Report) shares ended the last trading session 6% higher at $114.54. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 27.8% loss over the past four weeks.

In fact, this was the second consecutive day of gain as far as the HRI stock is concerned. HRI is being well-served by upbeat rental revenue growth. Efforts to reward its shareholders also bode well. Driven by the tailwinds, shares of HRI have gained 12.3% over the past six months.

This equipment rental supplier is expected to post quarterly earnings of $2.16 per share in its upcoming report, which represents a year-over-year change of +10.8%. Revenues are expected to be $731.3 million, up 28.9% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and 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 #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Herc Holdings is part of the Zacks Transportation - Equipment and Leasing industry. Greenbrier Companies (GBX - Free Report) , another stock in the same industry, closed the last trading session 0.4% higher at $28.39. GBX has returned -3.7% in the past month.

For Greenbrier, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.33. This represents a change of -13.2% from what the company reported a year ago. Greenbrier currently has a Zacks Rank of #5 (Strong Sell).

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