Hertz Global Holdings earnings jump back into profit

Hertz Global Holdings (HTZ) has drawn fresh attention after reporting second quarter 2026 results that shifted from a loss last year to a net income, alongside higher quarterly and half year sales despite recent index removals.

The latest earnings news comes after a volatile spell for Hertz Global Holdings, with a 48.37% 7 day share price return and 12.38% 1 day move, contrasting with a 57.96% decline in 1 year total shareholder return. This suggests recent momentum has picked up after a much weaker longer term experience for shareholders.

If earnings rebounds like Hertz Global Holdings have your attention, this can be a useful moment to scan for other potential recovery or growth ideas through the Simply Wall St screener of 19 top founder-led companies

The share price has rebounded sharply while Hertz Global Holdings still trades below analyst price targets. Is that discount a sign of lingering market caution that makes sense, or is it starting to look overstated as earnings recover?

Most Popular Narrative: 18.2% Undervalued

Hertz Global Holdings last closed at $2.27 while the most followed narrative estimates fair value at $2.78. That gap reflects a model built on specific views about future growth, margins and required returns using a 12.54% discount rate.

The continuous shift towards urbanization and increased use of multi-modal transport solutions (e.g., ride-sharing, public transit, micro-mobility) threatens to reduce reliance on and demand for conventional car rentals, shrinking Hertz's addressable market and impacting future revenue potential.

Want to understand why this narrative still arrives at a higher fair value for Hertz Global Holdings even with those headwinds built in? The crux sits in how revenue is expected to trend, how margins are modeled to change from today, and what future earnings multiple is considered reasonable. Curious which of those levers does most of the heavy lifting in that $2.78 figure.

Result: Fair Value of $2.78 (UNDERVALUED)

However, there are still meaningful risks to this Hertz Global Holdings narrative, including liquidity pressure and ongoing legal actions that could challenge execution and valuation assumptions.

Next Steps

With both risks and rewards in play for Hertz Global Holdings, this is a moment to move quickly and form your own view. To weigh the trade off between potential upside and the issues that could hold the stock back, review the 2 key rewards and 4 important warning signs

Looking for more investment ideas beyond Hertz Global Holdings?

Do not stop your research with Hertz Global Holdings. Use this moment to widen your watchlist and spot other opportunities that could suit your portfolio.

• Spot potential value opportunities early by scanning the market for companies highlighted in the 52 high quality undervalued stocks.
• Strengthen your focus on resilience by checking out stocks featured in the 83 resilient stocks with low risk scores.
• Hunt for underfollowed opportunities by reviewing the screener containing 21 high quality undiscovered gems.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.