Shares of global car rental company Hertz (NASDAQ:HTZ)
jumped 3.1% in the afternoon session after the company announced its new virtual showroom technology has driven a 30% uplift in lead conversions for its Public Carriage Office (PCO) program.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Hertz (NASDAQ:HTZ) and the rest of the ground transportation stocks fared in Q2.
Shares of global car rental company Hertz (NASDAQ:HTZ)
jumped 8.2% in the afternoon session after Pershing Square Holdings recently reiterated its confidence in the company in its second-quarter 2025 investor letter. The investment firm, which began buying shares late last year, noted that it views Hertz as a turnaround story and believes the stock price "can increase by a multiple of our cost in reasonably likely scenarios.".
Many small-cap stocks have limited Wall Street coverage, giving savvy investors the chance to act before everyone else catches on.
But the flip side is that these businesses have increased downside risk because they lack the scale and staying power of their larger competitors.
Stocks trading in the $1-10 range are generally smaller players with less risk than their penny stock counterparts.
But that doesn’t mean the underlying businesses are cheap, and we advise caution as many have questionable fundamentals.
Shares of global car rental company Hertz (NASDAQ:HTZ)
fell 3.3% in the afternoon session after growing concerns from investors regarding the company's financial health and future prospects.
A stock with low volatility can be reassuring, but it doesn’t always mean strong long-term performance.
Investors who prioritize stability may miss out on higher-reward opportunities elsewhere.
Hertz shares jumped 8.57% after announcing a partnership with Amazon to sell certified pre-owned cars online, expanding their digital reach in the growing used car market.
A number of stocks fell in the morning session after markets continued to decline, as investors grew cautious ahead of a key speech by Federal Reserve Chair Jerome Powell. The move came as U.S. equity markets recorded a fifth consecutive day of losses for major indexes like the S&P 500, with technology stocks experiencing the largest declines. Investors have grown wary that the sharp rally in the tech sector since April may have advanced too far. The market-wide caution is largely driven by the upcoming Jackson Hole symposium, a meeting of central bankers, where traders are anxiously awaiting Fed Chair Powell's speech on Friday for guidance on the future path of interest rates.
A second day of selling pressure hit technology stocks tied to the AI theme on Wednesday, as sentiment cooled after an MIT report questioned the broad profitability of the new technology.
Carvana Co (NYSE:CVNA) shares are trading lower Wednesday after Hertz Global Holdings Inc (NASDAQ:HTZ) announced that it will sell certified used cars on Amazon.com Inc (NASDAQ:AMZN) Autos.
A number of stocks fell in the afternoon session after an unexpectedly sharp rise in wholesale inflation fueled concerns about rising costs and their impact on corporate profits. The primary catalyst was the July 2025 Producer Price Index (PPI), a measure of inflation at the wholesale level, which jumped 0.9% against forecasts of a 0.2% rise. This represents the most significant monthly increase in over three years, pointing to mounting cost pressures for manufacturers, with tariffs cited as a key factor. This data complicates the Federal Reserve's upcoming interest rate decisions, as persistent inflation may prevent rate cuts, creating a headwind for cyclical sectors like Industrials.
Shares of global car rental company Hertz (NASDAQ:HTZ)
fell 3.4% in the morning session after ongoing concerns about its financial health and downbeat analyst ratings overshadowed a recent quarterly earnings beat. Even though Hertz recently reported second-quarter earnings that beat expectations, the positive news failed to convince investors of a sustained turnaround. Lingering issues are weighing on the stock, particularly a significant drop in free cash flow, which plummeted to negative $2.7 billion, raising concerns about the company's liquidity. Further adding to the pressure, several analysts maintained a negative outlook. BofA Securities reiterated its "Underperform" rating, citing "macroeconomic uncertainty and signs of travel demand waning." Similarly, Goldman Sachs maintained its "Sell" rating on the stock, believing the longer-term outlook remains challenging despite the recent quarterly performance. With a significant debt load of over $18.4 billion, investors seem to be focusing on these fundamental weaknesses rather than the short-term earnings surprise.
