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Hertz News: Why HTZ Stock Is Rocketing 76% Higher Today

Hertz (NYSE:HTZ) is seeing massive gains to HTZ stock despite no new news from the car rental company. So what exactly is behind this movement?

Hertz News: Why HTZ Stock Is Rocketing 76% Higher Today

Source: Eric Glenn/Shutterstock.com

It looks like Hertz is seeing its stock skyrocket today in response to news that travel is starting to increase since the start of the novel coronavirus pandemic. That could be a good sign for the company if travel is able to return to normal levels.

A perfect example of this is American Airlines (NASDAQ:AAL). The air travel company announced on Thursday that it’s expecting much stronger demand during the month of June. That includes domestic travel capacity reaching levels of 55% or more of what they were in the same period of the year prior.

That may not sound great, but it’s a massive improvement over the last couple of months. For comparison, the airline saw an average daily capacity of 32,154 passengers in April. However, those numbers were up to 110,330 passengers near the end of May.

The idea here is that Hertz will benefit from increased air travel. Passengers need transportation after traveling to different parts of the country and car rental services, such as Hertz, fill that need.

It looks like investors are betting on HTZ stock recovering with the travel economy. However, there are problems with that train of thought. Investors should be wary as the company filed for bankruptcy a couple of weeks ago.

HTZ stock was up 76.3% as of Friday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2020/06/what-hertz-news-has-htz-stock-up/.

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