There have been far too many negative headlines about Trump’s tariffs (from myself included). So with this article, we’re going to focus on some stocks that are benefiting from them.

Hertz and Avis, the rental car companies that you only think about when Southwest cancels your flight or your car breaks down… are suddenly some of the hottest stocks on the market. For instance, Hertz shot up 22% on Thursday, while Avis jumped 20% (which made it Hertz’s best day since the post-bankruptcy IPO in 2021 and Avis’s strongest since 2022).

The logic is simple here on why these companies had such a great day… if buying a new car suddenly costs thousands more, people may decide to hold off and look for alternatives… like renting. Dennis Dick from Stock Trader Network summed it up well: “These rental companies actually benefit from the tariffs because if car prices are going to go up, maybe some people who are like, ‘You know what? I don’t travel that much. I’ll just rent a car.’”

The tariff could add as much as $12,000 to the price of an average vehicle. As new cars get more expensive, demand for rentals could rise, making Hertz and Avis’s existing fleets even more valuable.

Don’t forget that both Hertz and Avis had been heavily shorted… with 14.5% of Hertz shares and 13% of Avis shares in short positions, the sudden rally forced short sellers to quickly buy back stock, driving prices even higher in what’s known as a short squeeze (just in case you didn’t know).

It’s more than the rental car companies seeing gains. Auto parts retailers are also benefiting, with Advance Auto Parts up 6%, O’Reilly up 3%, and AutoZone up 3% (which I understand isn’t anything to get excited about but stick with me here). If fewer people buy new cars, they’ll hold onto their current ones longer… meaning more maintenance, more repairs, and more trips to the auto parts store.

J.P. Morgan analysts believe this could be more than a temporary jump for Hertz and Avis, noting that consumers are likely to keep their cars longer and look for alternative transportation solutions… both trends that favor rental car companies. For Hertz and Avis, this tariff news is a huge opportunity. If they play their cards right, they could turn this market shift into a lasting advantage.

Stocks.News has positions in Hertz, Avis, Oreillys, Advanced Auto Parts, and Auto Zone mentioned in article.