Unprofitable companies can burn through cash quickly, leaving investors exposed if they fail to turn things around.
Without a clear path to profitability, these businesses risk running out of capital or relying on dilutive fundraising.
Global car rental company Hertz (NASDAQ:HTZ) missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 12.8% year on year to $1.81 billion. Its non-GAAP EPS of $1.12 per share was 14.6% below analysts’ consensus estimates.
As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the ground transportation industry, including Hertz (NASDAQ:HTZ) and its peers.
Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street.
Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.
A number of stocks fell in the afternoon session after the major indices pulled back (Nasdaq -1.3%, S&P 500 - 1.4%) as Treasury yields rose, reflecting market anxiety over a draft federal budget that could worsen the already wide US fiscal deficit. A poor auction for 20-year U.S. Treasury bonds further raised concerns, as weak demand implies investors are becoming more cautious about holding long-dated U.S. debt.
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names.
But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
Hertz Global Holdings Inc. (NASDAQ: HTZ) shares are trading lower Tuesday after the company reported disappointing first-quarter financial results that missed both revenue and earnings expectations.
