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Herc Holdings Inc. (HRI - Free Report) performed well in the past year and has the potential to sustain the momentum in the future. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes HRI an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run over the past six months. Shares of Herc Holdings have gained 29.9% in the past six months, outperforming the 2.4% surge of the Transportation - Equipment and Leasing industry it belongs to.
HRI’s Six-Month Price Comparison
Image Source: Zacks Investment Research
Solid Rank & VGM Score: Herc Holdings presently sportsa Zacks Rank #1 (Strong Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.
Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. The Zacks Consensus Estimate for third-quarter 2026 earnings has moved 19.61% north in the past 60 days. For 2026 and 2027, the consensus mark for earnings has been revised 18.49% and 9.91% upward, respectively, in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Image Source: Zacks Investment Research
Positive Earnings Surprise History: Herc Holdings has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average beat of 60.64%.
Image Source: Zacks Investment Research
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For third-quarter 2026, HRI’s earnings are expected to improve 37.39% year over year. For fourth-quarter 2026, Herc Holdings’ earnings are expected to improve 30.43% year over year.
Growth Factors:Herc Holdings’ larger platform, completed H&E integration and broader specialty network support a more balanced view. Mega project demand, national account activity and cross-selling should aid equipment rental revenues as fleet optimization moves into the seasonal peak. Cash generation and prudent capital allocation provide operating flexibility during integration and deleveraging. Management also sees incremental revenue and cost synergies building through 2026.
Herc Holdings 2026 guidance raises optimism about the stock. The company increased its full-year equipment rental revenue guidance to $4.38-$4.48 billion from $4.28-$4.40 billion. The company now expects adjusted EBITDA of $2.05-$2.13 billion compared with its previous range of $2-$2.1 billion.
SHIP has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 38%.
Schneider presently carries a Zacks Rank #2.
Schneider has an expected earnings growth rate of 65.08% for the current year. Schneider’s earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters (missed the mark in the remaining two quarters), delivering an average miss of 10.01%. The Zacks Consensus Estimate for Schneider’s full-year earnings has moved 14.29% north in the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Here's Why Investors Should Add Herc Holdings Stock to Their Portfolio
Key Takeaways
Herc Holdings Inc. (HRI - Free Report) performed well in the past year and has the potential to sustain the momentum in the future. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes HRI an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run over the past six months. Shares of Herc Holdings have gained 29.9% in the past six months, outperforming the 2.4% surge of the Transportation - Equipment and Leasing industry it belongs to.
HRI’s Six-Month Price Comparison
Solid Rank & VGM Score: Herc Holdings presently sportsa Zacks Rank #1 (Strong Buy) and has a VGM Score of B. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.
Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. The Zacks Consensus Estimate for third-quarter 2026 earnings has moved 19.61% north in the past 60 days. For 2026 and 2027, the consensus mark for earnings has been revised 18.49% and 9.91% upward, respectively, in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Positive Earnings Surprise History: Herc Holdings has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average beat of 60.64%.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For third-quarter 2026, HRI’s earnings are expected to improve 37.39% year over year. For fourth-quarter 2026, Herc Holdings’ earnings are expected to improve 30.43% year over year.
Growth Factors:Herc Holdings’ larger platform, completed H&E integration and broader specialty network support a more balanced view. Mega project demand, national account activity and cross-selling should aid equipment rental revenues as fleet optimization moves into the seasonal peak. Cash generation and prudent capital allocation provide operating flexibility during integration and deleveraging. Management also sees incremental revenue and cost synergies building through 2026.
Herc Holdings 2026 guidance raises optimism about the stock. The company increased its full-year equipment rental revenue guidance to $4.38-$4.48 billion from $4.28-$4.40 billion. The company now expects adjusted EBITDA of $2.05-$2.13 billion compared with its previous range of $2-$2.1 billion.
Other Stocks to Consider
Investors interested in the Zacks Transportation sector may consider Seanergy Maritime Holdings (SHIP - Free Report) and Schneider National, Inc. (SNDR - Free Report) .
Seanergy Maritime Holdings currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
SHIP has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 38%.
Schneider presently carries a Zacks Rank #2.
Schneider has an expected earnings growth rate of 65.08% for the current year. Schneider’s earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters (missed the mark in the remaining two quarters), delivering an average miss of 10.01%. The Zacks Consensus Estimate for Schneider’s full-year earnings has moved 14.29% north in the past 60 days.