Car Rental Company Hertz Global Holdings, Inc. (HTZ) now boasts 24X7 55 ExpressRent kiosk locations in New York City to satiate the car rental demand. These kiosks offer services in addition to the company’s existing 15 retail outlets in the city. The company intends to take the count to more than 100 kiosk locations by 2014.
This is indeed good news for New Yorkers. The city has a steady demand for rental vehicles. With the establishment of such kiosks, Hertz will be providing customers with faster, cheaper and easily available rental options. Moreover, its top line will expectedly get a boost as well.
Currently, Hertz has nearly 725 ExpressRent kiosks located over 535 airports and off-airport areas across the U.S. and Europe.
Hertz Global, which competes with Avis Budget Group, Inc. (CAR), is aggressively expanding its operations by opening facilities at new locations and collaborating with other companies to grow business. The latter measure was evident from the company’s earlier announcement of a multi-year partnership agreement with Sentient Jet, a Directional Aviation Capital company.
As per the deal, the card holders of Sentient Jet will have the option to become members of Hertz Platinum. Apart from this, the members will have access to Hertz Dream Cars from 2014.
Hertz Global is the leading airport car rental brand in the United States. Of late, the company’s Hertz brand in the U.S. airport car rental market has been generating weaker volumes, thereby limiting revenue growth.
Hertz is expected to announce third quarter fiscal 2013 results on Nov 5, 2013. Our proven model does not conclusively show that Hertz is likely to beat the Zacks Consensus Estimate this quarter. This is because Hertz carries a Zacks Rank #5 (Strong Sell) and a positive Earnings ESP of 4.23%. For a stock to outperform, it needs both a positive Earnings ESP as well as a Zacks Rank #1, 2 or 3.
Other better-performing stocks in the business services sector that are worth a look include WNS (Holdings) Ltd. (WNS) and comScore, Inc. (SCOR). Both of these carry a Zacks Rank #2 (Buy).