Avis Budget Group (CAR) Stock Falls Amid Market Uptick: What Investors Need to Know
The most recent trading session ended with Avis Budget Group (CAR) standing at $167.95, reflecting a -1.04% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.29%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq gained 0.43%.
The car rental company's stock has dropped by 6.89% in the past month, falling short of the Transportation sector's loss of 2.99% and the S&P 500's gain of 2.08%.
The upcoming earnings release of Avis Budget Group will be of great interest to investors. The company's earnings report is expected on February 12, 2024. It is anticipated that the company will report an EPS of $4.38, marking a 58.13% fall compared to the same quarter of the previous year. 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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Avis Budget Group. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Avis Budget Group holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Avis Budget Group is currently exchanging hands at a Forward P/E ratio of 6.83. Its industry sports an average Forward P/E of 15.17, so one might conclude that Avis Budget Group is trading at a discount comparatively.
The Transportation - Services industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
