Hertz Global Holdings, Inc. (HTZ), Expedia Inc (EXPE): Up 1,500% — And Our Analyst Says It’s Still A ‘Buy’

Hertz Global Holdings, Inc. (NYSE:HTZ) is benefiting from all these trends. It recently acquired Dollar Thrifty, helping to boost Hertz Global Holdings, Inc. (NYSE:HTZ)’s revenue by 22% for the quarter ended June 30 over the same quarter last year. Hertz Global Holdings, Inc. (NYSE:HTZ) was able to raise the price of a daily rental by 3.1% overall, and by 4.4% at U.S. airport locations. Adjusted earnings per share for the second quarter came in at 45 cents per share — a tad higher than Wall Street expectations — but a stunning 28.6% higher than a year earlier.

Action to Take –> Hertz has an attractive valuation, trading at a forward price-to-earnings (P/E) ratio of roughly 12. But Hertz’s annual earnings growth rate should be somewhere north of 30% — or higher, if the European economy starts to recover. At current prices, Hertz is providing solid growth at a discount. Buy Hertz under $26.50 a share.

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– Bob Bogda

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