Avis Budget Group (CAR) Outpaces Stock Market Gains: What You Should Know
The latest trading session saw Avis Budget Group (CAR) ending at $175.55, denoting a +1.15% adjustment from its last day's close. This change outpaced the S&P 500's 1.06% gain on the day. Elsewhere, the Dow saw an upswing of 0.93%, while the tech-heavy Nasdaq appreciated by 1.2%.
The car rental company's stock has dropped by 12.58% in the past month, falling short of the Transportation sector's loss of 4.12% and the S&P 500's loss of 3%.
Market participants will be closely following the financial results of Avis Budget Group in its upcoming release. The company plans to announce its earnings on November 1, 2023. On that day, Avis Budget Group is projected to report earnings of $13.73 per share, which would represent a year-over-year decline of 36.73%. Meanwhile, the latest consensus estimate predicts the revenue to be $3.57 billion, indicating a 0.78% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $36.87 per share and a revenue of $12.02 billion, representing changes of -36.49% and +0.2%, respectively, from the prior year.
Any recent changes to analyst estimates for Avis Budget Group should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.15% decrease. Avis Budget Group currently has a Zacks Rank of #4 (Sell).
With respect to valuation, Avis Budget Group is currently being traded at a Forward P/E ratio of 4.71. This denotes a discount relative to the industry's average Forward P/E of 12.76.
The Transportation - Services industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 235, placing it within the bottom 7% of over 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.
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Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
