Avis Budget Group (CAR) Stock Falls Amid Market Uptick: What Investors Need to Know

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Avis Budget Group (CAR) ended the recent trading session at $166.90, demonstrating a -0.63% swing from the preceding day's closing price. This change lagged the S&P 500's 0.08% gain on the day. On the other hand, the Dow registered a loss of 0.26%, and the technology-centric Nasdaq increased by 0.36%.

The car rental company's stock has dropped by 7.13% in the past month, falling short of the Transportation sector's loss of 2.58% and the S&P 500's gain of 2.4%.

The investment community will be closely monitoring the performance of Avis Budget Group in its forthcoming earnings report. The company is scheduled to release its earnings on February 12, 2024. On that day, Avis Budget Group is projected to report earnings of $4.38 per share, which would represent a year-over-year decline of 58.13%. In the meantime, our current consensus estimate forecasts the revenue to be $2.8 billion, indicating a 0.99% growth compared to the corresponding quarter of the prior year.

Investors should also note any recent changes to analyst estimates for Avis Budget Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. Avis Budget Group is currently a Zacks Rank #3 (Hold).

Investors should also note Avis Budget Group's current valuation metrics, including its Forward P/E ratio of 6.76. This signifies a discount in comparison to the average Forward P/E of 15.05 for its industry.

The Transportation - Services industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 156, positioning it in the bottom 39% of all 250+ industries.

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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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