6 Reasons Why You Must Add Avis Budget (CAR) to Your Portfolio
Avis Budget Group, Inc. CAR has performed well in the year-to-date period, holding promises to sustain the momentum. If you haven’t yet cashed in on its share price rally, it’s time you add the stock to your portfolio.
Let’s look into the factors that make the stock worth betting on.
An Outperformer: The stock has rallied 13.4% in the year-to-date period against the 40.7% plunge of the industry it belongs to.
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Solid Rank & VGM Score: Avis Budget currently has a Zacks Rank #2 (Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, CAR appears an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Three earnings estimates for 2022 have moved north in the past 60 days versus no southbound revision, indicating analysts’ confidence in the stock. The Zacks Consensus Estimate for 2022 earnings has moved up 5.3% in the past 60 days.
Positive Earnings Surprise History: Avis Budget has an impressive earnings surprise history. CAR’s bottom line outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average being 67.2%.
Strong Prospects: The Zacks Consensus Estimate for 2022 earnings is pegged at $51.73, implying 130% growth from the year-ago reported figure.
Key Driving Factors: Avis Budget continues to enhance its technology and improve offerings. CAR partnered with various product and technology companies to enrich the user experience with mobile and technology capabilities.
Avis Budget has an impressive track record of rewarding its shareholders through share repurchases. In 2021, 2020 and 2019, CAR bought back shares worth $1.46 billion, $119 million and $67 million, respectively. Such moves underpin its confidence in business and help raise investors’ optimism on the stock by driving the earnings per share.
Other Stocks to Consider
Investors interested in the broader Zacks Business Services sector can also consider stocks like Booz Allen Hamilton Holding Corporation BAH, Paychex, Inc. PAYX and Cross Country Healthcare, Inc. CCRN.
Booz Allen carries a Zacks Rank #2 at present. BAH has a long-term earnings growth expectation of 7.5%.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8%, on average.
Paychex carries a Zacks Rank of 2 at present. PAYX has a long-term earnings growth expectation of 7.5%.
Paychex delivered a trailing four-quarter earnings surprise of 8.6%, on average.
Cross Country Healthcare carries a Zacks Rank of 2 at present, currently. CCRN has a long-term earnings growth expectation of 6%.
CCRN delivered a trailing four-quarter earnings surprise of 10.1%, on average.
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Paychex, Inc. (PAYX) : Free Stock Analysis Report
Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report
Cross Country Healthcare, Inc. (CCRN) : Free Stock Analysis Report
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