Is Avis Budget Group (CAR) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Avis Budget Group (CAR) is a stock many investors are watching right now. CAR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.41, while its industry has an average P/E of 18.63. CAR's Forward P/E has been as high as 9.99 and as low as 3.12, with a median of 6.83, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CAR has a P/S ratio of 0.72. This compares to its industry's average P/S of 0.85.
Another great Business - Services stock you could consider is Crawford & Company (CRD.B), which is a # 2 (Buy) stock with a Value Score of A.
Crawford & Company sports a P/B ratio of 2.69 as well; this compares to its industry's price-to-book ratio of 3.62. In the past 52 weeks, CRD.B's P/B has been as high as 3.21, as low as 1.37, with a median of 2.33.
These are only a few of the key metrics included in Avis Budget Group and Crawford & Company strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CAR and CRD.B look like an impressive value stock at the moment.
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Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
Crawford & Company (CRD.B) : Free Stock Analysis Report
