Avis Budget Group (CAR) Outpaces Stock Market Gains: What You Should Know
Avis Budget Group (CAR) closed at $160.83 in the latest trading session, marking a +0.25% move from the prior day. This move outpaced the S&P 500's daily gain of 0.22%. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.2%.
Heading into today, shares of the car rental company had lost 10.73% over the past month, lagging the Business Services sector's loss of 7.62% and the S&P 500's loss of 8.32% in that time.
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 $12.13 per share. This would mark year-over-year growth of 105.59%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.11 billion, up 31.25% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $39.29 per share and revenue of $11.46 billion, which would represent changes of +74.7% and +23.1%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Avis Budget Group. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 9.3% higher within the past month. Avis Budget Group is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, Avis Budget Group is currently trading at a Forward P/E ratio of 4.08. For comparison, its industry has an average Forward P/E of 12.65, which means Avis Budget Group is trading at a discount to the group.
Investors should also note that CAR has a PEG ratio of 0.21 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Business - Services stocks are, on average, holding a PEG ratio of 0.73 based on yesterday's closing prices.
The Business - Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 146, putting it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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