Should Value Investors Buy Avis Budget Group (CAR) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Avis Budget Group (CAR). CAR is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 8.08, while its industry has an average P/E of 19.47. Over the past year, CAR's Forward P/E has been as high as 9.99 and as low as 3.12, with a median of 6.68.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CAR has a P/S ratio of 0.77. This compares to its industry's average P/S of 0.88.
Investors could also keep in mind Mitie Group (MITFY), an Business - Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Furthermore, Mitie Group holds a P/B ratio of 3.52 and its industry's price-to-book ratio is 3.70. MITFY's P/B has been as high as 3.78, as low as 1.68, with a median of 2.76 over the past 12 months.
These are only a few of the key metrics included in Avis Budget Group and Mitie Group 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 MITFY look like an impressive value stock at the moment.
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Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
Mitie Group PLC. (MITFY) : Free Stock Analysis Report
