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.

5 shares ready to double

Each was handpicked by a Zacks expert as the #1 preferred stock to earn +100% or more in 2021. Previous recommendations have skyrocketed +143.0%, +175.9%, + 498.3% and +673.0%.

Most of the stocks in this report fly under the radar on Wall Street, which provides a great opportunity to get in on the ground floor.

Today, check out these 5 potential home runs >>

Click to get this free report

To read this article on Zacks.com, click here.

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

Comments are closed.