Avis Budget Group (CAR) shares fall as market rises: What you need to know
IIn the last trading session, Avis Budget Group (CAR) closed at $260.58, marking a -1.03% move from the previous day. That move lagged the S&P 500’s 0.34% daily gain. Elsewhere, the Dow Jones gained 0.4%, while the tech-heavy Nasdaq lost 0.47%.
Today, shares of the car rental company have gained 45.15% over the past month. Meanwhile, the business services sector gained 3.05%, while the S&P 500 gained 3.75%.
Wall Street will be looking for positivity from Avis Budget Group as its next earnings release date approaches. In this report, analysts expect Avis Budget Group to post earnings of $6.75 per share. This would mark a year-over-year growth of 1567.39%. Meanwhile, Zacks consensus estimate for revenue calls for net sales of $2.18 billion, up 59.09% from the prior year period.
Zacks Consensus estimates for CAR’s full year call for earnings of $22.41 per share and revenue of $10.48 billion. These results would represent year-over-year variations of -0.36% and +12.57%, respectively.
Investors might also notice recent changes in analyst estimates for Avis Budget Group. Recent revisions tend to reflect the latest 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. Investors can take advantage of this by using the Zacks ranking. This model accounts for these estimation changes and provides a simple and actionable scoring system.
The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable track record of third-party audited success, with No. 1 stocks offering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has risen 3.7% over the past month. Avis Budget Group currently sports a Zacks ranking of #3 (Hold).
Valuation is also important, so investors should note that Avis Budget Group currently has a Forward P/E ratio of 11.75. This valuation marks a discount compared to the average Forward P/E of its sector of 17.52.
Investors should also note that CAR has a PEG ratio of 0.6 at this time. The PEG ratio is similar to the widely used P/E ratio, but this measure also takes into account the company’s expected earnings growth rate. The Commercial – Services sector currently had an average PEG ratio of 0.88 at yesterday’s close.
The Business – Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 232, which places it in the bottom 9% of all 250+ industries.
The Zacks Industry Ranking assesses the strength of our industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to track all of these stock movement metrics, and more, in future trading sessions.
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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.