Is Hertz Global Holdings, Inc. (HRT) will beat estimates again in its next earnings report?

Are you looking for a stock that has consistently beaten earnings estimates and could be well-positioned to continue that streak in the next quarterly report? Hertz Global Holdings, Inc. (HTZ), which belongs to the Zacks Transportation – Services industry, could be an excellent candidate to consider.

Looking at the last two reports, this company has had a strong streak of beating earnings estimates. Over the last two quarters, the company has exceeded estimates by an average of 6.27%.

For the most recent quarter, Hertz Global Holdings, Inc. was expected to. will see earnings of $0.46 per share, but instead reported earnings of $0.50 per share, representing a surprise of 8.70%. The consensus estimate for the prior quarter was $1.04 per share when it actually delivered $1.08 per share, representing a surprise of 3.85%.

With this earnings history in mind, the latest estimates for Hertz Global Holdings, Inc. in fact, the company’s Zacks Earnings ESP (Expected Surprise ESP) has risen, which is a great sign of improving earnings, especially when you combine this metric with a nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks in this combination, the number of stocks that beat the consensus could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimates to the Zacks Consensus Estimates for the quarter; The Most Accurate Estimate is the Zacks Consensus version, which is defined in terms of change. The idea is that analysts reviewing their estimates just before an earnings release have the latest information, which could potentially be more accurate than what they and other consensus participants had previously predicted.

Hertz Global Holdings, Inc. it currently has an earnings ESP of +14.58%, which suggests analysts are becoming optimistic given its near-term earnings potential. When you combine this positive Earnings ESP with the stock’s Zacks Rank #3 (Hold), it shows that another rally is likely just around the corner. The company’s next earnings report is expected to be released on April 27, 2023.

When earnings ESP turns negative, investors should remember that this will reduce the predictive power of this metric. However, a negative value does not indicate a company’s lack of profits.

Many companies end up beating consensus EPS estimates, but that may not be the only basis for their stock’s rise. On the other hand, some stocks may hold even if they fall short of the consensus price.

For this reason, it is very important to check a company’s earnings ESP before its quarterly release to increase the chances of success. Use our Earnings ESP filter to find the best stocks to buy or sell before they report.

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