Avis Budget Group (CAR) Falls More Steeply Than Broader Market: What Investors Need to Know
Avis Budget Group (CAR) closed at $166.47 in the latest trading session, marking a -1.46% move from the prior day. This move lagged the S&P 500's daily loss of 0.07%.
Heading into today, shares of the car rental company had lost 15.71% over the past month, lagging the Transportation sector's gain of 2.67% and the S&P 500's gain of 3.98% in that time.
Market participants will be closely following the financial results of Avis Budget Group in its upcoming release. The company's earnings per share (EPS) are projected to be $4.38, reflecting a 58.13% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.8 billion, reflecting a 0.99% rise from the equivalent quarter last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Avis Budget Group. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Avis Budget Group is currently a Zacks Rank #4 (Sell).
From a valuation perspective, Avis Budget Group is currently exchanging hands at a Forward P/E ratio of 6.8. This expresses a discount compared to the average Forward P/E of 14.35 of its industry.
The Transportation - Services industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 195, finds itself in the bottom 23% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
