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Hertz Global (HTZ) Stock Gains on Share Repurchase Program

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Hertz Global Holdings HTZ, which completed its Chapter 11 restructuring process in June this year, unveiled a large stock repurchase program. The move is in line with its efforts to realign its finances after exiting bankruptcy protection, aided by strong demand for used cars during the pandemic.

The share-holder friendly plan, approved by Hertz’s board, naturally found favor with investors. As evidence, shares of HTZ gained 6% on Nov 29, closing the trading session at $25.30.

Per management, this car-rental entity, currently carrying a Zacks Rank #3 (Hold), intends to buy back up to $2 billion of its common shares. The repurchase program takes effect immediately and will initially comprise the remaining $200-million amount authorized for buyback at the time of Hertz’s NASDAQ listing earlier this month.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The announcement pertaining to the $2-billion buyback plan comes close on the heels of Hertz reaching a deal with the majority holder of its $1.5 billion of preferred stock. HTZ further announced that it aims to maintain a Net Corporate Leverage of not more than 1.5X.

Key Picks

Some better-ranked stocks in the Transportation sectorare as follows:

ArcBest Corporation ARCB currently sports a Zacks Rank #1 (Strong Buy). ARCB has a stellar earnings surprise history as its bottom line outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 27.4%.

Shares of ArcBest have rallied more than 100% so far this year. Improving freight conditions in the United States bode well for ARCB. Solid customer demand and higher market rates are supporting growth at ARCB.

Knight-Swift Transportation Holdings KNX also flaunts a Zacks Rank of 1 at present. KNX’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 14%.

Shares of Knight-Swift have surged 39.1% so far this year. A strong performance of its logistics segment is aiding growth. Efforts to reward its shareholders also bode well.

Old Dominion Freight Line ODFL currently carries a Zacks Rank #2 (Buy). ODFL’s earnings trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average being 5.2%.

Shares of Old Dominion have soared more than 83% so far this year. Improved freight market conditions are aiding ODFL. Efforts to reward its shareholders also augur well.


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Hertz Global Holdings, Inc. (HTZ) : Free Stock Analysis Report
 
Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report
 
KnightSwift Transportation Holdings Inc. (KNX) : Free Stock Analysis Report
 
ArcBest Corporation (ARCB) : Free Stock Analysis Report
 
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