US EditionWhy Hertz and Avis Stocks Are Soaring Today - Avis Budget Gr (NASDAQ:CAR), Hertz Global Holdings (NASDAQ:HTZ)
- On Thursday, shares of Hertz and Avis Budget Group surged, with Hertz jumping 23.8% and Avis Budget gaining 23%.
- The surge followed the announcement of a planned 25% tariff on imported vehicles by Donald Trump, potentially increasing the cost of new vehicles by thousands of dollars.
- The tariff raised expectations that consumers would opt for car rentals, benefiting Hertz and Avis, which are both popular among short sellers, with 14.5% and 13% of their outstanding shares in short positions, respectively, according to LSEG data.
- According to Dennis Dick, chief strategist at the Stock Trader Network, "These rental companies actually benefit from the tariffs because if car prices are going to go up, maybe some people who are like, 'You know what? I'll just rent a car'", further stating that "You get a little bit of a short squeeze here too and that's really, really kick starting this rally".
- While car rental companies experienced gains, General Motors shares were down 8%, and J.P. Morgan analysts suggest that auto parts and services firms like O'Reilly Automotive Inc and AutoZone, both up about 2.5%, and Advance Auto Parts, up 5.4%, could also benefit as consumers hold onto their current vehicles longer.
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Fox Business
Trump's auto tariffs could be boon for rental car companies
President Donald Trump’s recently announced auto tariffs could potentially be a boon for rental car companies. Hertz on Thursday saw its stock price post a jump of over 20%, and another rental car company, Avis, posted a double-digit increase the same day. The jumps that those rental car companies experienced Thursday came the day after the president revealed he was imposing a new 25% auto import tariff in early April.PRESIDENT DONALD TRUMP ANNO…
Why Hertz and Avis Stocks Are Soaring Today - Avis Budget Gr (NASDAQ:CAR), Hertz Global Holdings (NASDAQ:HTZ)
Shares of auto rental companies Hertz Global Holdings Inc (NASDAQ:HTZ) and Avis Budget Group Inc (NASDAQ:CAR) surged on Thursday following the announcement of a 25% tariff on imported cars and key auto parts by President Donald Trump. What To Know: Unlike automakers and parts suppliers facing rising costs, rental car companies stand to benefit as higher vehicle prices could drive greater demand for rentals. With tariffs projected to increase new…
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