From Nasdaq: 2025-05-02 12:20:00

Shares of Hertz Global Holdings (NASDAQ: HTZ) surged after billionaire Bill Ackman disclosed a 19.8% stake in the company. Ackman cited undervaluation due to a Tesla mishap and potential for significant ROI from new management and capital structure. The stock soared 73% in April, but recent pullback suggests overbuying.

Ackman’s bullish stance on Hertz is met with skepticism due to historical industry underperformance, bankruptcy, and lack of profitability. Economic indicators signal industry cyclicality and vulnerability to recession. Tariffs may hinder Hertz’s edge in used car prices. Airlines and Airbnb hint at slowing travel demand, potentially impacting Hertz’s Q1 earnings.

Investors are cautioned against buying Hertz Global stock despite Ackman’s optimism. The Motley Fool’s Stock Advisor team excludes Hertz from their top 10 stock picks. Past recommendations like Netflix and Nvidia yielded enormous returns. Stock Advisor has outperformed the S&P 500 with an 889% average return. Join to access their latest top 10 list.



Read more at Nasdaq: Why Hertz Stock Soared 73% in April