Why Zipcar's Shares Are Surging

The following video is part of our "Motley Fool Conversations" series, in which industrials editors/analysts Isaac Pino and Brendan Byrnes discuss topics around the investing world.

In today's edition, Isaac reflects on new developments for Zipcar's stock, which spiked 9% during the first two days of trading this week on the news that Morgan Stanley initiated coverage on the stock. A respected Morgan Stanley auto analyst expressed bullishness on Zipcar, noting that the stock could be undervalued trading around $10 per share. In his opinion, "Zipcar offers a premium service and cars that people want to drive at the best locations with a brand not associated with a tired rent-a-car industry." Isaac believes his comments speak volumes about this rule-breaking company's future prospects.

Zipcar's IPO raised awareness for the company, but the company's stock has lagged the broader market since. Over time, investors will better understand these game-changing companies, and the strongest will thrive. We've identified a recent IPO stock that's poised for tremendous growth in our recent report, "Forget Facebook -- Here's the Tech IPO You Should Be Buying," which details a much better social-media stock that has a longer runway for growth than Facebook. The report won't be available forever, so click here to get access today -- it's totally free.

At the time thisarticle was published Brendan Byrnesowns shares of Ford.Isaac Pinoowns shares of Zipcar. The Motley Fool owns shares of Ford, Hertz Global Holdings, and Zipcar.Motley Fool newsletter services recommendFord, General Motors, Tesla Motors, and Zipcar. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.