Avis Budget Group (CAR) Falls More Steeply Than Broader Market: What Investors Need to Know
Avis Budget Group (CAR) closed the most recent trading day at $175.65, moving -0.91% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.57% for the day. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, lost 1.64%.
Coming into today, shares of the car rental company had lost 8.34% in the past month. In that same time, the Transportation sector gained 4.57%, while the S&P 500 gained 4%.
The investment community will be closely monitoring the performance of Avis Budget Group in its forthcoming earnings report. In that report, analysts expect Avis Budget Group to post earnings of $4.38 per share. This would mark a year-over-year decline of 58.13%. Meanwhile, our latest consensus estimate is calling for revenue of $2.8 billion, up 0.99% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Avis Budget Group. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Avis Budget Group is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, Avis Budget Group is holding a Forward P/E ratio of 7.13. This valuation marks a discount compared to its industry's average Forward P/E of 14.72.
The Transportation - Services industry is part of the Transportation sector. With its current Zacks Industry Rank of 187, this industry ranks in the bottom 26% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
