Press Release: Fitch Rates Hertz Vehicle Financing Iii Llc 2025-5 And 2025-6, Affirms Outstanding Notes -3

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Universal Logistics and the rest of the ground transportation stocks fared in Q2.

The growth of e-commerce and global trade continues to drive demand for shipping services, especially last-mile delivery, presenting opportunities for ground transportation companies. The industry continues to invest in data, analytics, and autonomous fleets to optimize efficiency and find the most cost-effective routes. Despite the essential services this industry provides, ground transportation companies are still at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs can influence profit margins.

The 16 ground transportation stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Universal Logistics

Founded in 1932, Universal Logistics is a provider of customized transportation and logistics solutions operating throughout the United States and in Mexico, Canada, and Colombia.

Universal Logistics reported revenues of $393.8 million, down 14.8% year on year. This print fell short of analysts’ expectations by 1.2%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EPS estimates and a slight miss of analysts’ revenue estimates.

"Universal's results for the second quarter, although muted, were broadly in-line with our previously guided expectations," stated Tim Phillips, Universal's CEO.

The stock is down 40.5% since reporting and currently trades at $16.31.

Read our full report on Universal Logistics here, it’s free for active Edge members.

Best Q2: Hertz

Started with a dozen Model T Fords, Hertz is a global car rental company providing vehicle rental services to leisure and business travelers.

Hertz reported revenues of $2.48 billion, down 3.8% year on year, outperforming analysts’ expectations by 3.1%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Hertz delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 5.1% since reporting. It currently trades at $5.21.

Is now the time to buy Hertz? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q2: Heartland Express

Founded by the son of a trucker, Heartland Express offers full-truckload deliveries across the United States and Mexico.

Heartland Express reported revenues of $210.4 million, down 23.4% year on year, falling short of analysts’ expectations by 10.4%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

Heartland Express delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 1.8% since the results and currently trades at $8.83.

Read our full analysis of Heartland Express’s results here.

RXO

With access to millions of trucks, RXO offers full-truckload, less-than-truckload, and last-mile deliveries.

RXO reported revenues of $1.42 billion, up 36.6% year on year. This result was in line with analysts’ expectations. Taking a step back, it was a softer quarter as it produced a significant miss of analysts’ EBITDA estimates and EPS in line with analysts’ estimates.

RXO delivered the fastest revenue growth among its peers. The stock is down 18.7% since reporting and currently trades at $14.32.

Read our full, actionable report on RXO here, it’s free for active Edge members.

XPO

Owning a mobile game simulating freight operations for the Tour de France, XPO is a transportation company specializing in expedited shipping services.

XPO reported revenues of $2.11 billion, up 2.8% year on year. This number beat analysts’ expectations by 1.9%. It was a strong quarter as it also produced an impressive beat of analysts’ European Transportationrevenue estimates and a solid beat of analysts’ revenue estimates.

The stock is up 12% since reporting and currently trades at $139.77.

Read our full, actionable report on XPO here, it’s free for active Edge members.

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the ground transportation industry, including Avis Budget Group and its peers.

The growth of e-commerce and global trade continues to drive demand for shipping services, especially last-mile delivery, presenting opportunities for ground transportation companies. The industry continues to invest in data, analytics, and autonomous fleets to optimize efficiency and find the most cost-effective routes. Despite the essential services this industry provides, ground transportation companies are still at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs can influence profit margins.

The 14 ground transportation stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.7%.

While some ground transportation stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.1% since the latest earnings results.

Avis Budget Group

The parent company of brands such as Zipcar and Budget Truck Rental, Avis is a provider of car rental and mobility solutions.

Avis Budget Group reported revenues of $3.52 billion, up 1.1% year on year. This print exceeded analysts’ expectations by 1.8%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.

“This quarter marked meaningful progress for Avis Budget Group as we returned to revenue growth while continuing to invest in our future. We remain focused on leading the industry through innovation and a steadfast commitment to delivering an exceptional customer experience,” said Brian Choi, Avis Budget Group Chief Executive Officer.

Unsurprisingly, the stock is down 19.6% since reporting and currently trades at $132.68.

Is now the time to buy Avis Budget Group? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Hertz

Started with a dozen Model T Fords, Hertz is a global car rental company providing vehicle rental services to leisure and business travelers.

Hertz reported revenues of $2.48 billion, down 3.8% year on year, outperforming analysts’ expectations by 3.1%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates.

Hertz achieved the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 3.8% since reporting. It currently trades at $5.15.

Is now the time to buy Hertz? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: U-Haul

Founded by a husband and wife duo, U-Haul is a provider of rental trucks and storage facilities.

U-Haul reported revenues of $1.72 billion, up 3.7% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

The stock is flat since the results and currently trades at $53.36.

Read our full analysis of U-Haul’s results here.

Ryder

As one of the first companies to introduce the idea of leasing trucks, Ryder provides rental vehicles to businesses and delivers packages directly to homes or businesses.

Ryder reported revenues of $3.17 billion, flat year on year. This number came in 0.7% below analysts' expectations. Taking a step back, it was a satisfactory quarter as it also logged a solid beat of analysts’ adjusted operating income estimates but EPS guidance for next quarter missing analysts’ expectations.

Ryder had the weakest performance against analyst estimates among its peers. The stock is down 5.9% since reporting and currently trades at $171.97.

Read our full, actionable report on Ryder here, it’s free for active Edge members.

Saia

Pivoting its business model after realizing there was more success in delivering produce than selling it, Saia is a provider of freight transportation solutions.

Saia reported revenues of $839.6 million, flat year on year. This print beat analysts’ expectations by 1%. It was an exceptional quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is up 13.2% since reporting and currently trades at $314.10.

Read our full, actionable report on Saia here, it’s free for active Edge members.

What Happened?

A number of stocks fell in the afternoon session after markets faded the Nvidia rally in the morning session, as investors remained uncertain about future rate cuts. 

While the trading day began with significant enthusiasm, pushing the Dow Jones Industrial Average up more than 700 points and the Nasdaq Composite up 2.6%, momentum quickly evaporated as the session wore on. The primary catalyst for this sharp reversal was a stronger-than-expected jobs report, which reduced the implied odds of a December interest rate cut to less than 40%.This macroeconomic anxiety overshadowed stellar corporate performance. Nvidia initially surged 5% on blockbuster earnings and CEO Jensen Huang's bullish outlook on "off the charts" demand for Blackwell chips. However, the stock eventually turned negative, acting as a heavy weight that dragged the broader indices into the red. The sell-off partly reflects a deepening caution regarding high-flying tech valuations in a "higher-for-longer" rate environment. 

Consequently, investors appeared to rotate capital away from volatile growth sectors and toward defensive staples, evidenced by Walmart's 6% gain following its own earnings beat. Ultimately, the market could not sustain the morning's euphoria, as traders prioritized rate realities over AI potential.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Construction and Maintenance Services company Limbach fell 3.2%. Is now the time to buy Limbach? Access our full analysis report here, it’s free for active Edge members.
• Ground Transportation company Hertz fell 3.7%. Is now the time to buy Hertz? Access our full analysis report here, it’s free for active Edge members.
• Engineering and Design Services company AECOM fell 5.7%. Is now the time to buy AECOM? Access our full analysis report here, it’s free for active Edge members.
• Aerospace company Boeing fell 3.3%. Is now the time to buy Boeing? Access our full analysis report here, it’s free for active Edge members.
• Waste Management company Perma-Fix fell 6.3%. Is now the time to buy Perma-Fix? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Perma-Fix (PESI)

Perma-Fix’s shares are extremely volatile and have had 31 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 8 days ago when the stock dropped 10.8% on the news that the company reported third-quarter results that revealed a significant revenue decline in its Services segment. That segment's revenue fell to $4.3 million from $7.7 million in the same period of the previous year. The company stated this drop was mainly due to delays in Department of Energy and Department of Defense projects, along with slower timing for new awards. Adding to investor concerns, Perma-Fix noted that its expansion into the PFAS market was progressing slower than initially hoped. The company also reported a non-GAAP loss of $0.10 per share during the quarter. These challenges appeared to outweigh positive results in other areas, such as the Treatment segment.

Perma-Fix is up 4.6% since the beginning of the year, but at $11.25 per share, it is still trading 27% below its 52-week high of $15.41 from November 2025. Investors who bought $1,000 worth of Perma-Fix’s shares 5 years ago would now be looking at an investment worth $1,733.

What Happened?

A number of stocks fell in the morning session after concerns regarding lofty artificial intelligence valuations triggered a pullback in the technology sector. 

Nvidia slid 3% ahead of its earnings report, dragging down fellow "Magnificent Seven" peers despite a major partnership announcement with Anthropic, as investors increasingly question the durability of the AI rally.Market sentiment was further dampened by Bitcoin dropping below $90,000, signaling reduced risk appetite, and growing anxiety that the Federal Reserve may pause rate cuts in December, with the implied probability of a cut falling to roughly 50%. 

Adding to the weakness, Home Depot shares declined following an earnings miss and a cut to its full-year outlook. This combination of continued de-risking and valuation skepticism put the S&P 500 on pace for its fourth consecutive daily decline.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Ground Transportation company Hertz fell 2.5%. Is now the time to buy Hertz? Access our full analysis report here, it’s free for active Edge members.
• Aerospace company AerSale fell 1%. Is now the time to buy AerSale? Access our full analysis report here, it’s free for active Edge members.
• Electrical Systems company Methode Electronics fell 3.6%. Is now the time to buy Methode Electronics? Access our full analysis report here, it’s free for active Edge members.
• Renewable Energy company First Solar fell 0.9%. Is now the time to buy First Solar? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Methode Electronics (MEI)

Methode Electronics’s shares are extremely volatile and have had 32 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 6 days ago when the stock gained 3.4% on the news that investors continued to pile into value-oriented names amid growing valuation concerns. 

This shift reflected growing caution over high valuations within the technology and artificial intelligence (AI) spheres. As market participants reassessed risk, they reallocated capital from growth-heavy indices, like the Nasdaq, to companies in areas like industrials and financials, perceived to be more reasonably priced.Contributing to the positive momentum, markets remained hopeful that a prolonged 40-day government shutdown would be over.The U.S. Senate approved a compromise funding package, which was pending a vote in the House. The potential end to the shutdown brought a sense of relief to markets.

Methode Electronics is down 41.5% since the beginning of the year, and at $6.92 per share, it is trading 50.7% below its 52-week high of $14.02 from December 2024. Investors who bought $1,000 worth of Methode Electronics’s shares 5 years ago would now be looking at an investment worth $192.30.