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Avis Budget Group (CAR) Outpaces Stock Market Gains: What You Should Know

·3 min read

Avis Budget Group (CAR) closed the most recent trading day at $166.96, moving +1.05% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.34%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 0.02%.

Coming into today, shares of the car rental company had lost 14.8% in the past month. In that same time, the Business Services sector lost 9.44%, while the S&P 500 lost 7.95%.

Investors will be hoping for strength from Avis Budget Group as it approaches its next earnings release. In that report, analysts expect Avis Budget Group to post earnings of $15.07 per share. This would mark year-over-year growth of 40.32%. Meanwhile, our latest consensus estimate is calling for revenue of $3.55 billion, up 18.26% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $47.02 per share and revenue of $11.94 billion, which would represent changes of +109.07% and +28.25%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Avis Budget Group. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.35% higher within the past month. Avis Budget Group is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Avis Budget Group has a Forward P/E ratio of 3.51 right now. For comparison, its industry has an average Forward P/E of 14.98, which means Avis Budget Group is trading at a discount to the group.

The Business - Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 144, putting it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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