Suddenly, Hertz Global Holdings' (HTZ) stock seems very interesting following a big partnership agreement with Uber Technologies (UBER). Hertz Global will provide its fleet management services for both the autonomous robotaxi and driver-led ride-hailing fleets offered through Uber's platform.
This development alone would not necessarily warrant a discussion on the matter. However, given that the current percentage of HTZ's outstanding shares sold short exceeds 20%, we should consider a short squeeze potential. This stock, in particular, tends to make outsized moves due to its high beta.
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About Hertz Stock
Hertz Global Holdings is a publicly traded rental car company based in Estero, Florida, providing its services through several segments, including airport rentals, off-airport rentals, fleet management, and emerging mobility platform services. Its market capitalization is currently around $2 billion, making it a mid-cap turnaround stock.
Recently, HTZ stock has been trading around $6.27. From the 52-week high of $8.44, it has fallen about 26%. Nevertheless, compared to the low of $3.78 within the same period, the stock currently trades approximately 65% higher. Within the last five sessions, Hertz's stock increased by 9%.
www.barchart.com Due to Hertz's current unprofitable status, valuation remains tricky. It does not have a meaningful trailing and forward price-to-earnings ratio, and its book value per share equals minus $1.47. It also has a profit margin of minus 8.78%. However, its price-to-sales ratio of 0.21 and price-to-cash flow ratio of 1.03 suggest it is valued as a distressed turnaround rather than a growth opportunity.
Hertz Expands Its Uber Partnership
The recent news involves Hertz's expanded relationship with Uber. A Hertz-affiliated company called Oro Mobility will be providing fleet management services for Uber's autonomous robotaxi program. Such services include charging, maintenance, cleaning, repairs, and staff in depots.
It should be noted that the autonomous fleet will be made up of Lucid (LCID) cars with Nuro AV technology onboard, with plans to roll out the service in the San Francisco Bay Area starting this year. This news is important because Hertz is focused on fleet management rather than developing robotaxi technology.
In addition to the autonomous vehicle project, Hertz announced the driver-led fleet management program on Uber's platform. Oro will be supplying Uber's drivers with high-end vehicles in exchange for operating fees. Currently, this service is available in Los Angeles and San Francisco following a successful pilot program in Atlanta. The company is planning a spring release in Northern New Jersey.
Autonomous cars seem more interesting, but fleet management appears to be the more immediate story here. If Hertz can transform fleet expertise into a service model, it might start to receive some recognition for it. Thus, it is possible that part of its operations will be valued quite differently soon.
Hertz Misses on Earnings
Hertz reported its Q4 results, revealing total revenues of $2.0 billion and 2025 yearly revenues totaling $8.5 billion. According to its management, Hertz showed improvements in the pricing of its services and experienced the strongest year-over-year revenue performance since Q1 2024.
Despite improvements, Hertz still posts losses. According to its latest report, Hertz lost a total of $194 million in Q4 and had a full-year net loss of $747 million. Hertz reported diluted EPS of minus $0.72 for Q4 and minus $2.43 for the full year. Despite losses, Hertz managed to improve them significantly on a year-over-year basis.
The company's adjusted corporate EBITDA came in at minus $205 million in Q4 and showed a positive year-over-year change of approximately $150 million. During the whole 2025 fiscal year, Hertz's adjusted corporate EBITDA grew by about $1 billion and came in at minus $339 million. Hertz's management reported a utilization rate of 81% for the full year, up by 200 basis points from the previous year. Depreciation per unit per month dropped 44% from the prior year to $300.
One of the most exciting facts revealed by Hertz in its latest press release is that trends in Q1 2026 are looking good. Hertz estimates a mid-single-digit increase in its revenues, thanks to pricing improvement, internal revenue management optimization, and improving residual values.
This is a turnaround story, not a growth story yet.
What Do Analysts Expect for HTZ Stock?
Currently, HTZ trades near distressed stock levels, so this could be a catalyst for a short squeeze. The consensus estimate on Wall Street is negative for Hertz, with a “Moderate Sell” rating consensus and a mean price target of $4.43, below the current stock price of $6.27, implying a possible downside of approximately 29%. The highest target stands at $5.00, while the lowest stands at $3.00.
www.barchart.com On the date of publication, Yiannis Zourmpanos did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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