Hertz Global Holdings Inc. (NASDAQ:HTZ) is one of them The best low-cost stocks to buy for under $5. On February 26, Hertz Global reported financial turnaround for Q4 and full year 2025, driven by its turnaround strategy. The company has improved profits by more than $2 billion annually, with 2025 revenue reaching $8.5 billion. The CEO highlighted that these gains were supported by a 44% improvement in depreciation per unit and a 200 basis point increase in fleet utilization.
Despite a challenging environment, Hertz delivered its strongest year-over-year earnings performance in nearly two years, with cash flow of $1.5 billion at the end of Q4. Q4 results were hit by more than $100 million in temporary disruptions, including government shutdowns, technology vendor shutdowns, and high levels of vehicle recalls. Additionally, a non-cash depreciation charge of $60 million was recorded due to a third-party residual value revaluation.
However, operational discipline led to a 6% year-over-year improvement in adjusted direct operating costs per transaction day. The customer experience also saw a huge improvement, with the Net Promoter Score increasing by nearly 50% year-on-year, reflecting improved fleet quality and service reliability. For 2026, Hertz Global Holdings Inc. (NASDAQ:HTZ) expects mid-single-digit earnings growth in the first quarter, supported by a positive pricing environment and improving residual values.
Hertz Global Holdings Inc. (NASDAQ:HTZ) operates as a car rental company. It has two divisions: American RAC and International RAC.
While we acknowledge HTZ’s potential as an investment, we believe some AI stocks offer higher potential and lower risk. If you’re looking for the most undervalued AI stocks that stand to benefit significantly from Trump-era tariffs and the offshore trend, check out our free report Best short-term AI stocks.
Read more: The 40 most popular stocks among hedge funds heading into 2026 and the 12 most promising microcap stocks, according to analysts.
Disclosure: None. Follow the inside port on Google News.
