Avis Budget Group (CAR) exceeds stock market gains: what you need to know

AVis Budget Group (CAR) closed at $160.83 last trading session, marking a +0.25% move from the previous day. That move topped the S&P 500’s 0.22% daily gain. Meanwhile, the Dow Jones lost 0.13% and the tech-heavy Nasdaq gained 0.2%.

Heading into today, shares of the car rental company had lost 10.73% over the past month, lagging the business services sector’s 7.62% loss and the 8.32% loss of the S&P 500 during this period.

Investors are hoping for Avis Budget Group’s strength as it approaches its next earnings release. In this report, analysts expect Avis Budget Group to post earnings of $12.13 per share. This would mark a year-over-year growth of 105.59%. Meanwhile, Zacks’ consensus estimate for revenue calls for net sales of $3.11 billion, up 31.25% from the year-ago period.

For the full year, our Zacks consensus estimates call for earnings of $39.29 per share and revenue of $11.46 billion, which would represent changes of +74.7% and +23, 1%, respectively, compared to the previous year.

Investors might also notice recent changes in analyst estimates for Avis Budget Group. These revisions help show the ever-changing nature of short-term trading trends. Thus, positive revisions to estimates reflect analysts’ optimism about the company’s business and profitability.

Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.

The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable, externally audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate rose 9.3% in the month last. Avis Budget Group is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, Avis Budget Group is currently trading at a forward P/E ratio of 4.08. For comparison, its industry has an average Forward P/E of 12.65, which means Avis Budget Group is trading at a discount to the group.

Investors should also note that CAR has a PEG ratio of 0.21 at this time. This measure is used in the same way as the famous P/E ratio, but the PEG ratio also takes into account the growth rate of the stock’s expected earnings. Corporates – Services stocks hold, on average, a PEG ratio of 0.73 based on yesterday’s closing prices.

The Business – Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 146, which places it in the bottom 43% of all 250+ industries.

The Zacks Industry Rankings are ranked from best to worst in terms of the average Zacks Ranking of individual companies in each of these industries. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and more, at Zacks.com.

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Avis Budget Group, Inc. (CAR): Free Inventory Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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