With the pandemic receding, the prospects for the car rental sector are picking up again. One of the biggest players in this area is Hertz, who fight it out with Avis Budget Group to lead the world in car rental. Maybe you are figuring out how to buy Hertz stock and profit from the revival of the car rental sector?

Below we show you how to invest in Hertz stock safely with zero commission charged. We explore the ins and outs of Hertz as an investment, and compare it against its biggest rival Avis Budget Group. We also compare two top regulated brokers: eToro and Webull.

How to Buy Hertz Stock – Quick Guide

Let’s kick off by outlining how easy it is to get started with online stock investment:

  1. ✅Step 1: Open an account with eToro – Head to the eToro website. To open a new trading account, click on ‘Start Investing’. Enter your email, and set up a log-in ID and password.
  2. 🔑Step 2: Verification – Because eToro complies with the latest KYC standards set up by international regulators, you will need to supply proof of ID and address.
  3. 💳 Step 3: Deposit – With eToro, depositing funds is easy. You can use debit/credit cards, bank wire, ACH and certain e-wallets. There is no charge for US investors.
  4. 🔎 Step 4: Search for Hertz Stock – How to buy Hertz stock is easy with eToro: just type ‘HTZ’ in the top toolbar to find it.
  5. 🛒 Step 5: Buy – You can buy Hertz stock now with as little as $20 by clicking on the ‘Trade’ button. eToro will hold your Hertz stock until you are ready to sell.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

Step 1: Choose a Stock Broker

Temporarily bankrupted in 2020 as result of global lockdown measures, Hertz bounced back into the market in 2021 with new investors. This firm is a decent investment prospect.

The question is: how to buy Hertz stock in a way that suits you? It all comes down to your choice of broker.

From the best stock trading platforms available in the US, we focus on two: eToro and Webull. Both charge zero commission on stock purchases, and both are comprehensively regulated in the US.

1: eToro — Where to Buy Hertz Stock Cheaply and Safely

etoro logoIs top broker eToro the best place to buy Hertz stock? The answer is yes if you want to get hold of Hertz shares at zero commission with a spread fee of just 0.26%. With eToro, you can buy as little as $20 of Hertz stock in one go. 637,000 eToro investors follow the performance of Hertz stock.

In all, eToro boasts a really impressive choice of over 3,000 stocks. Diversity is the watchword here: you can invest in the best dividend stocks as well as the best penny stocks, for example. By comparison, Webull offers very few international stocks, and these can only be traded as ADRs (American Depositary Receipts).

On top of stocks, eToro offers a range of indices, forex, commodities, crypto coins and an excellent selection of 264 Exchange Traded Funds (ETFs). Newcomers to investing should look into how to trade ETFs. That’s because they offer a great way to spread risk by investing in many companies at once.

How to buy Rivian stocks

Another way of investing in many stocks at once with eToro is by investing in one of its 70 Smart Portfolios. Smart Portfolios are a key part of eToro’s pioneering Social Trading — which centres on helping beginners to learn the ropes.

CopyTrader is the second key part of eToro’s Social Trading. CopyTrader allows you copy other traders with no extra charge (but you do pay normal spread fees and any other trading fees).

Social Trading aside, eToro is counted among the best stock apps on account of its regulation. In the US, the SEC and FinCEN regulates eToro, which is also registered with FINRA. eToro also boasts regulation across Europe and in Australia.

What We Like about eToro

  • Zero commission on stock trades
  • Regulated in the US by the SEC, FinCEN and registered with FINRA
  • Great selection of 3,000 international stocks
  • 25m+ users worldwide
  • SIPC-insured up to $500k per investor
  • Tight spreads on NASDAQ shares (Hertz spread: 0.26%)
  • USD deposits with no fee
  • Free smartphone app
  • Free eToro Money crypto/personal finance wallet
  • Social Trading: CopyTrader and Smart Portfolios
  • One of the best demo trading accounts

Number of Stocks: 3000+
Pricing System: No commission. Spread fee only
Cost of Buying Hertz: Spread fee of just 0.26%

etoro logo

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

2: Webull — How to Buy Hertz Stock From a US-based Broker

webull logoWith 7m account holders, New York-based broker Webull has less than a third of eToro’s 25m users. Launched in 2017, Webull has been in business for a decade less than eToro.

Otherwise the two stock providers are similar. Both offer proper regulation in the US and zero commission on Hertz and other shares. High user-friendliness is also a priority for both brokers.

webull platform screenshot

So how are eToro and Webull different?

Although Webull offers more stocks — with a selection of 5,000 — the vast majority are US-only. eToro offers 900+ international stocks from over 15 exchanges outside the US.

Webull does not offer the credit/debit card options of eToro. And, whereas bank wire deposits are free with eToro, there is a $8 charge with Webull. Withdrawal via bank wire costs a hefty $25 a pop with Webull, compared to eToro’s flat fee of $5 for all types of withdrawals.

Figuring out how to buy Hertz stock with Webull is as easy as it is with eToro. But, given eToro’s ongoing commitment to supporting the newbie trader with powerhouse functions like Smart Portfolios and CopyTrader, we suspect that beginners will find eToro an easier ramp into investing in general. (eToro vs. Webull: more details here)

What We Like about Webull

  • Zero commission on stock purchases
  • Big choice of 5,000+ stocks
  • A US company HQ-ed in New York
  • Regulated in the US by the SEC and FINRA
  • Offers IRA accounts and options (not offered by eToro)
  • Insured up to $500k per investor with the SIPC
  • Great learning area onsite

Number of Stocks: 5000+ (US only)
Pricing System: Spread fee, no commission
Cost of Buying Hertz: Spread fee: not available

webull logo

Your capital is at risk. 

Step 2: Research Hertz Stock

What is Hertz?

Hertz is one of the top two largest car rental firms in the world. Founded in 1918 in Chicago, Illinois, Hertz is now headquartered in Esteros, Florida.

The firm operates from 12,000+ corporate and franchisee outlets in 160+ countries. Hertz is represented by 3 brands: Hertz, Thrifty and Dollar.

The firm has strategic partnerships with Tesla, Uber, Carvana, AWS, Polestar, Lyft and AmexGBT.

In the driving seat at Hertz is new CEO Stephen Scherr. Scherr took the top spot in February 2022, having been Chief Financial Officer at investment bank Goldman Sachs.

In announcing Hertz’s Q1 2022 financial results, Scherr said, ‘Hertz produced a very strong first quarter. Our team delivered on behalf of customers amidst strong demand, reflecting a sharp rebound in travel.’

Hertz vs. Avis Budget Group

When in search of the most undervalued stocks, understanding a company’s balance sheet is important. But it is also key for investors to have an idea of where a company sits in its sector. What’s the competition like?

The main competitor for Hertz is the ABG (Avis Budget Group: buy it with eToro under the ticker ‘CAR’). These are the two biggest publicly-traded businesses in the global car rental market. They are similarly-sized. Hertz has 23,000 employees. ABG has 21,000. Both companies offer a mix of corporate and private use rental.

The Coronavirus Pandemic ravaged the car rental sector globally. Because of lock-downs, people rented cars far less often. A key question here is:

2020: Why did Hertz Have to File for Chapter 11 Bankruptcy Protection in 2020, and ABG Did Not?

In the car rental sector, it is normal for companies to be in debt as a result of funding their vehicle fleets.

  • In 2019, before the pandemic, Hertz had a fleet of 715k vehicles.
  • ABG’s fleet was slightly smaller, at 660k vehicles.
  • In 2019, Hertz was in more debt than ABG, facing higher depreciation costs on the value of the fleet and running with higher operating expenses.

Also, although in 2019 Hertz was renting out its fleet more efficiently in terms of volume — with a fleet utilization ratio of 79% vs. ABG’s 71% — it was making 25% less on average per vehicle.

Hertz’s cashflow dropped to -0.5% of revenue, compared to ABG’s figure of 3%. As a result Hertz could not afford a $400m loan payment and filed for bankruptcy in May 2020. (Figures courtesy of UK investment analysts Motley Fool)

2021: Hertz Emerged from Bankruptcy in Good Shape

Hertz emerged from bankruptcy protection on June 30, 2021. It shed $5bn of debt. A group of investors led by Knighthead Capital Management and Certares Management fronted $5.9 billion in capital. And HTZ stock was listed on the NASDAQ.

This has turned the tables on rival ABG to some extent.

Commenting in November 2021, top stock analysts SeekingAlpha concluded that the two stocks are still comparable, with different strengths and weaknesses: ‘so Avis has over $5 billion more debt, and the equity trades for another $2.4 billion compared to Hertz. In exchange, you get more vehicles and about 10% more earnings last quarter.’

Let’s review a few key metrics from Hertz’ balance sheet and see where it stands today.

Hertz Stock Price – How Much is Hertz Stock Worth?

Having figured out how to buy Hertz stock for zero commission with top brokers eToro and Webull, the challenge now is to figure out how much the stock is actually worth. Is it good value?

HTZ stock is priced today at just over $19 dollars ($19.07).

You can see from the chart below that the price went through some dark days over the course of 2020 and early 2021 as bankruptcy measures were in place. But having found institutional investors and listed on the NASDAQ in July 2021, Hertz’s fortunes changed for the better. The stock peaked at over $35 in early November 2021 and has since fallen to bounce off a support level around $16.

Hertz: Key Metrics

Metric Definition Shows?
EPS (Earnings Per Share) Profit divided by number of shares outstanding How much profit a company is making compared to the number of shares outstanding
P/E Ratio (Price/Earnings per Share Ratio) Price of a share divided by EPS How much the company is valued at by the markets

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

Hertz EPS (Earnings Per Share): $0.87

From Hertz’s Q1 2022 figures, we can see that its adjusted EPS is $0.87. This compares unfavourably to ABG’s EPS figure of $9.99.

This means that Hertz’s rival ABG is delivering far more profit per share. But does this mean that Hertz is badly run? No. According to broker eToro, its gross profit margin is 42%, which is 3.5% better than ABG’s figure of 38.5%.

Hertz P/E Ratio: 3.39 

Hertz’s P/E ratio is just 3.39 vs. ABG’s P/E ratio of 6.33.

ABG is trading at roughly twice the price as Hertz if earnings per share are equalised. This means in simple terms that the market currently rates ABG as being twice the value of Hertz.

Does this mean that ABG is simply better set-up? Or is Hertz undervalued? Recent price movements suggest that Hertz might well be undervalued (see below).

Hertz Stock Price Prediction

  • The average Hertz stock price prediction of 6 analysts compiled by eToro for May 2023 is $28.83.
  • The Hertz stock price is currently $19.
  • If this average prediction comes true, then — within 12 months — HTZ stock will be worth over 50% what it is now.
  • The highest estimate for May 2023 from the 6 analysts reported by eToro is $36.
  • The lowest estimate is $23.

Hertz Stock Dividends

‘Dividends’ are payments which companies sometimes make to shareholders. These payments are not compulsory, and can come and go.

Because the car rental sector was so badly hit by the pandemic, it is not the place to find the best dividend stocks. Neither Hertz nor its rival ABG have said that they will pay dividends this year.

Is Hertz Stock a Good Buy?

Before you settle on how to buy HTZ stock in a way that best suits your budget and experience, you need to confirm that you want to buy it at all!

Here are four positive factors backing Hertz as one of the best undervalued stocks:

1: Technical Charting Suggests Hertz is Undervalued

Below you can see a chart showing HTZ’s price performance since September 2021. Thanks to eToro’s powerful charting function, we can use it to get an idea of how the price is performing now compared to historically.

On the chart are two lines:

  • Red line: 200-day Moving Average
    This shows the average price over the last 200 days
  • Green Line: 50-day Moving Average
    This shows the average price over the last 50 days

‘Golden Cross’ and ‘Death Cross’: Opportunity Knocks?

You can see that at the beginning of 2022, the green line (50-day MA) rose to cross the red line (200-day MA). In technical charting, this is called a ‘Golden Cross’. This means, in simple terms, that the share price is doing a lot better than it has been for a while.

Then at the beginning of April 2022, the red line (200-day MA) rose to cross the green line (50-day MA). This is called — rather dramatically — a ‘Death Cross’. It means that the price is now doing worse than it has been for a while.

For our purposes as investors looking to invest in stocks, this ‘Death Cross’ is potentially a good thing. It might mean that the stock price is underpriced: cheap at the price, in other words!

It is certainly true that, when a stock price shows a Death Cross, its performance shortly afterwards often improves as buyers rush in to pick up a bargain. This happens particularly if the business offers strong business fundamentals.

So, despite its bankruptcy protection in 2020, does Hertz still offer a strong business model?

2: Robust Hertz — Still a Contender

Hertz generated revenues of $1.81bn in Q1 2022. That’s 3/4 of rival ABG’s revenues for the same period. But, although it briefly went broke under the pressures of the pandemic in 2020, Hertz is by no means broken. It still operates a sizeable fleet. It now has less debt than rival ABG. And it is expanding under the leadership of new CEO Stephen Scherr, who brings the financial expertise he gained as CFO of investment bank Goldman Sachs.

One key area of focus is the booming EV (Electric Vehicle) sector.

3: Tapping into the EV Phenomenon

Globally, there could be as many as 230m electric vehicles on the road by 2030 (according to the International Energy Agency).

Investors looking to buy into the EV sector have many choices. Some go for the market leader and buy Tesla stock. Others pick a start-up, like Amazon-backed Rivian stock. To take a position in many EV stocks at once, and thereby reduce risk, there are also eToro BatteryTech and Driverless Smart Portfolios to consider.

Just like everyday investors, Hertz is looking to invest in the future of EVs:

  • In 2021, Hertz announced a deal with Tesla to buy 100,000 Model 3 EVs.
  • In 2022, Hertz announced a deal with EV producer Polestar to buy 65,000 vehicles.
  • Across 80 markets globally, Hertz has 1,000 Level 2 electric chargers in place already.
  • Hertz already too offers Tesla for rental in 20 of its international markets. A key partner here is taxi firm Uber; Hertz rents EVs to Uber drivers. Hertz, says CEO Scherr, ‘continues to experience strong driver demand, supported by the increasing earnings these [Uber] drivers can generate by renting from Hertz rather than outright ownership.’

4: Clear Management Focus

CEO Scherr has said that EVs work particularly well for corporate rental clients too. That’s because, ‘they need to rent cars to their employees, but they’re equally, through EV, satisfying their own ESG and carbon footprint objectives.’ CEO Scherr says he wants at least 30% of the Hertz fleet to be electric by 2024.

In other technological developments, Hertz is committed to equipping its entire North American fleet with telematics by the end of 2022.

CEO Scherr explains that, ‘our objective is to provide customers with a seamless digital experience every step of the way – in short, to take the hassle out of renting a car.’ Hertz has already teamed up with Amazon Web Services to roll this innovation out.

Step 3: Open an Account and Buy Hertz Stock

When it comes to how to buy Hertz stock quickly, seasoned broker eToro has the answer.

Sign up

Go to eToro.com. Click on the ‘Start Investing’ button. Then fill out the box with some personal details. Tick the boxes to accept the terms and conditions. Or short-cut this step by signing up with your Facebook or Google account.

etoro open accountVerify

Regulated brokers must by law ensure that new investors are not fraudsters. So everybody must go through some simple KYC (Know Your Customer) steps. With automated software getting better all the time, this step need not be a hassle. Just make sure that you have ready:

  1. Proof of ID: ID card or passport.
  2. Proof of address: Utility bills, rent statements etc.

eToro Verify Account Verification ID

Follow the instructions to get the correct data lodged with eToro. When you are verified, you will receive a notification email.

Deposit

Once verified, you are permitted to deposit funds. Log in to your eToro account. Press the blue ‘Deposit Funds’ button on the left of your interface. Deposit with bank wire, ACH, credit/debit card and e-wallets are all available to US investors with no deposit fee charged.

Search

Find Hertz stock instantly by entering its ticker label ‘htz’ in eToro’s top toolbar.

Click the top Hertz logo to go to Hertz’s homepage. Here you can drill down through Hertz’ balance sheet, review analyst recommendations, access your chatfeed and use powerful charting options.

Or, if you want to buy Hertz stock now, simply press the blue ‘Trade’ button.

(Note that the ‘HTZWW’ stock below ‘HTZ’, which also bears the Hertz logo, relates to Hertz warrants issued in 2021. We recommend that you stick to conventional HTZ stock traded on the NASDAQ.)

Buy Hertz Stock

Having pressed the blue ‘Trade’ button, the box illustrated below will open:

  1. Enter how much USD you want to spend.
  2. You can set levels for Stop Loss as well as Take Profit, or come back to these later.
  3. Press ‘Open Trade’ when you are happy to execute your trade.

Usually with eToro’s excellent liquidity, trades go through immediately. Onscreen you will see a notification box briefly appear. On your eToro portfolio, you can review your new Hertz shares.

Well done! You have figured out how to buy Hertz stock. And now you can browse through eToro’s 3000+ other stocks and apply the same simple buying process.

Sell Hertz Stock

To sell your HTZ stock, head to your portfolio. Click on the row that relates to your HTZ stocks. Then click on the red cross that appears at the far right. This opens your selling options, which are convenient because you can sell only a fraction of your HTZ holding if it suits you, rather than the whole lot at once. The proceeds of the sale will be credited to your eToro USD balance immediately.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

Hertz Stock: Buy or Sell?

Should I buy Hertz stock? Or should I sell the Hertz stock I already own? These are the dilemmas facing the investor.

BUY: ‘Moderate Buy’ Say Analysts

One of the advantages of using top broker eToro is that each stock is presented with plenty of useful stats.

Illustrated below is a snapshot from Hertz’s homepage on eToro, which is followed by over half a million eToro investors.

Of 6 professional analysts who have recently commented on Hertz stock, the consensus is a ‘moderate buy’. 4 said ‘buy’ and 2 said ‘hold’. The average price target for May 2023 is $28.83, which is over 50% what HTZ stock is priced at now.

BUY: Hertz Insiders Buy HTZ Stock in 2022

Another useful feature of broker eToro is that you can see the trading activity in HTZ shares amongst top management.

We can see that in 2022, three significant buys have been made:

  • BUY: 01.04.22: Director Evelina Vougessis Machas
  • BUY: 31:03.22: President & COO Paul Stone
  • BUY: 31.03.22: International President Angela Brav

No significant SELL trades have been executed by management since July 2021. This is a positive indicator for the future prospects of the HTZ share price.

BUY: Momentum Trade

It is worth re-iterating that, right now in mid-May 2022, the key technical indicator of the ‘Death Cross’ shows that the Hertz share price has dipped below its long-term average. This does not, as the dramatic ‘Death Cross’ name suggests, necessarily indicate that the share price is doomed! Rather, it shows that the shares are going cheaper than they have done for a while.

It is up to the individual investor to decide whether cheap shares mean that they are undervalued, or that they are in fact valued correctly at a low price because of some business problem facing Hertz.

As we have gleaned above, the general consensus among expert analysts is that Hertz is a ‘moderate buy’.

SELL: Hertz in the Press for the Wrong Reasons

Hertz has been under fire in the American press in 2022. Customers have complained that, whilst negotiating payment wrangles, Hertz has wrongfully accused them of stealing a Hertz vehicle and reported them to the police.

Hertz revealed in court in February 2022 that it reports over 3,000 customers to the US police every year, but that this figure represents only 0.014% of their 25m annual transactions in the US.

This is a serious reputational issue for Hertz. Who wants to hire a car if the rental company will report you to the police if there’s a dispute over payment?

Given the gravity of the situation, it is testament to the resilience of Hertz stock that the price has not collapsed. But it has not.

Conclusion

Above we have explored the strengths and weaknesses of car rental giant Hertz as investment prospect. We have explored how to buy Hertz stock with zero commission, and concluded that top brokers eToro and Webull offer a sound, all-round welcome to beginners.

We conclude that eToro is the best place to buy Hertz stock. Not only does eToro boast reassuring regulation in the US as well as abroad in Europe and Australasia. But, with its CopyTrader and Smart Portfolio functions, eToro is leading the way when it comes to Social Trading. Social Trading takes much of the anxiety out of investing in stocks by always giving the newbie other investors to talk to and learn from.etoro logo

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

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