On Mar 1, 2013, Zacks Investment Research upgraded Hertz Global Holdings, Inc. (HTZ - Free Report) to a Zacks Rank #1 (Strong Buy). The company has amassed a solid return of roughly 39% over the past one year.
Why the Upgrade?
Hertz has been witnessing rising earnings estimates on the back of better-than-expected fourth-quarter 2012 results, buoyed by modest economic recovery, new market opportunities, cost containment efforts, improving trends in the equipment rental business and the strategic acquisition of Dollar Thrifty Automotive Group.
Hertz, which competes with Avis Budget Group Inc. (CAR - Free Report) , declared impressive results on Feb 25, 2013, wherein adjusted earnings of 33 cents a share surged 37.5% from 24 cents delivered in the year-ago quarter, and surpassed the Zacks Consensus Estimate of 32 cents by 3.1%.
This car rental company has outperformed the Zacks Consensus Estimate for 11 straight quarters by an average of 51%. The long-term expected earnings growth rate for the stock is 12%.
Total revenue came in at $2,318.5 million, jumping 15.1% year over year and reflecting sales increases of 14% and 21.2% across the car rental and equipment rental segments, respectively. Total revenue also came ahead of the Zacks Consensus Estimate of $2,249 million.
Buoyed by stronger-than-anticipated results, management now expects revenue between $10,850 million and $10,950 million for 2013, and projects earnings in the range of $1.82 to $1.92 per share.
Following sturdy results, the Zacks Consensus Estimate for 2013 rose 2.8% to $1.86 per share over the last 7 days. For 2014, the Zacks Consensus Estimate inched up 0.9% over the same timeframe to $2.30 per share.
Other Stocks to Consider
Other stocks worth considering in the business services sector include, Viad Corp (VVI - Free Report) and SPS Commerce, Inc. (SPSC - Free Report) , both of which carry a Zacks Rank #1 (Strong Buy).