Hertz Global (HTZ) Appoints Its New CEO Amid Challenges
Hertz Global Holdings HTZ has announced the appointment of Gil West, former chief operating officer (COO) of Delta Air Lines DAL and General Motor’s GM Cruise unit, as its new chief executive officer (CEO) effective Apr 1. West will succeed Stephen Scherr, who will step down on Mar 31.
West joined DAL in 2008 and was associated with the airline for 12 years. He was elevated to the COO’s post in 2014. At DAL, he was responsible for the company’s worldwide operations. He was associated with General Motor’s Cruise unit from 2021 to 2023.
West's extensive experience in operationally intensive businesses, particularly in transportation and travel, positions him well to lead Hertz through its current challenges and capitalize on opportunities. With more than 27,000 employees worldwide, HTZ aims to leverage West's leadership to deliver outstanding service to its customers and drive shareholder value. The appointment of West reflects Hertz's commitment to strategic initiatives to improve technology, enhance commercial partnerships and revitalize its value brands.
West's success record in leading large teams and orchestrating operational turnarounds, particularly during his tenure at Delta, instills confidence in his ability to steer Hertz toward long-term success.
The appointment of Westat Hertzcomes at a crucial time, as the company faces challenges from higher repair costs and weak demand for its electric vehicles, among others. Due to the challenges, HTZ shares have declined 27.1% year to date compared with its industry’s 7.7% fall.
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West, through his vast experience, is anticipated to guide Hertz out of the current tough phase. His vision for the company’s future, coupled with his experience in the transportation and mobility sectors, could align well with HTZ's goals and contribute to its growth trajectory.
In conclusion, the appointment of West as CEO is a milestone for Hertz as the company navigates through a period of transition. West's leadership, coupled with the company’s already underway initiatives, positions Hertz for long-term success in a dynamic automotive landscape.
Zacks Rank and Stock to Consider
HTZ currently carries a Zacks Rank #4 (Sell).
A better-ranked stock in the Zacks Transportation sector is SkyWest SKYW, currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SkyWest's fleet modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s 2024 earnings has improved 26.3% over the past 90 days. Shares of SkyWest have surged 258.4% in the past year.
The company has an expected earnings growth rate of more than 100% for 2024. SKYW delivered a trailing four-quarter earnings surprise of 128.02%, on average.
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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
Hertz Global Holdings, Inc. (HTZ) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
