Are investors undervaluing Avis Budget Group (CAR) right now?

JZacks Rank’s proven system focuses on earnings estimates and estimate reviews to find winning stocks. Nonetheless, we know that our readers all have their own views, so we always review the latest trends in value, growth, and momentum to find solid picks.

Given these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation measures to find stocks that they believe are undervalued by the market as a whole.

Zacks developed the innovative Style Scores system to highlight stocks with specific characteristics. For example, value investors will be interested in stocks with good ratings in the “Value” category. When paired with a high Zacks rating, “A” ratings in the Value category are among the strongest value stocks in the market today.

One company to watch right now is Avis Budget Group (CAR). CAR currently holds a Zacks rank of #1 (strong buy) and a value rating of A. The stock trades with a P/E ratio of 4.80, which compares to its industry average of 10 .88. Over the past 52 weeks, CAR’s P/E Forward has been as high as 37.43 and as low as 4.80, with a median of 10.97.

Investors should also note that CAR holds a PEG ratio of 0.25. This popular figure is similar to the widely used P/E ratio, but the PEG ratio also takes into account a company’s expected EPS growth rate. CAR’s PEG compares to its industry average PEG of 0.61. CAR’s PEG has been as high as 1.36 and as low as 0.16, with a median of 0.48, all over the past year.

Value investors also value the P/S ratio, which is calculated by simply dividing a stock’s price by the company’s sales. This is a preferred metric because revenue can’t really be manipulated, so sales is often a truer performance indicator. CAR has a P/S ratio of 0.7. This compares to its industry average P/S of 0.95.

Another great Business – Services action you might consider is IBEX Limited (IBEX)which is a #1 stock (strong buy) with a value score of A.

Additionally, IBEX Limited has a P/E ratio of 3.22 while its industry price-to-book ratio sits at 1.96. For IBEX, this rating metric has been as high as 5.22, as low as 2.56, with a median of 3.24 over the past year.

Value investors will likely scrutinize more than these metrics, but the data above helps show that Avis Budget Group and IBEX Limited are likely undervalued right now. And considering the strength of its earnings outlook, CAR and IBEX stand out as one of the strongest value stocks in the market.

Zacks names ‘only one best choice for doubling up’

From thousands of stocks, 5 Zacks experts have each picked their favorite to skyrocket by +100% or more in the coming months. Of these 5, Research Director Sheraz Mian selects one to have the most explosive advantage of all.

It’s a little-known chemical company that’s up 65% year-on-year, but still very cheap. With relentless demand, rising earnings estimates for 2022 and $1.5 billion for stock buybacks, retail investors could jump in at any moment.

This company could rival or surpass other recent Zacks stocks which are expected to double, such as Boston Beer Company which jumped +143.0% in just over 9 months and NVIDIA which jumped +175.9% in one. year.

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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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