Avis Budget Group (CAR) Rises But Trails Market: What Investors Should Know
Avis Budget Group (CAR) ended the recent trading session at $188.73, demonstrating a +0.05% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.59%. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.66%.
Heading into today, shares of the car rental company had lost 0.23% over the past month, lagging the Transportation sector's gain of 8.79% and the S&P 500's gain of 5.16% in that time.
The investment community will be closely monitoring the performance of Avis Budget Group in its forthcoming earnings report. The company's upcoming EPS is projected at $4.38, signifying a 58.13% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.8 billion, indicating a 0.99% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $40.18 per share and revenue of $12.04 billion, indicating changes of -30.78% and +0.39%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Avis Budget Group should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Avis Budget Group possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Avis Budget Group has a Forward P/E ratio of 4.69 right now. This indicates a discount in contrast to its industry's Forward P/E of 15.36.
The Transportation - Services industry is part of the Transportation sector. With its current Zacks Industry Rank of 203, this industry ranks in the bottom 20% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CAR in the coming trading sessions, be sure to utilize Zacks.com.
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Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
