Avis Budget Group (CAR) Stock Falls Amid Market Uptick: What Investors Need to Know
Avis Budget Group (CAR) closed at $172.33 in the latest trading session, marking a -0.28% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.73%. Meanwhile, the Dow gained 0.62%, and the Nasdaq, a tech-heavy index, added 0.93%.
Prior to today's trading, shares of the car rental company had lost 4.44% over the past month. This has was narrower than the Transportation sector's loss of 5.64% and lagged the S&P 500's loss of 2.29% in that time.
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. The company is forecasted to report an EPS of $13.69, showcasing a 36.91% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $3.57 billion, indicating a 0.78% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $36.73 per share and a revenue of $12.01 billion, indicating changes of -36.73% and +0.16%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Avis Budget Group. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.36% decrease. Avis Budget Group currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Avis Budget Group currently has a Forward P/E ratio of 4.7. Its industry sports an average Forward P/E of 12.41, so one might conclude that Avis Budget Group is trading at a discount comparatively.
The Transportation - Services industry is part of the Transportation sector. With its current Zacks Industry Rank of 225, this industry ranks in the bottom 11% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
