Avis Budget Group (CAR) closed the most recent trading day at $198.53, moving -1.46% from the previous trading session. This change lagged the S&P 500's daily loss of 1.22%. At the same time, the Dow lost 0.83%, and the tech-heavy Nasdaq lost 1.56%.
Coming into today, shares of the car rental company had lost 9.97% in the past month. In that same time, the Transportation sector lost 4.27%, while the S&P 500 gained 0.54%.
Investors will be hoping for strength from Avis Budget Group as it approaches its next earnings release. On that day, Avis Budget Group is projected to report earnings of $13.82 per share, which would represent a year-over-year decline of 36.31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.59 billion, up 1.14% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $36.92 per share and revenue of $12.04 billion. These totals would mark changes of -36.4% and +0.34%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Avis Budget Group. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating 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).
In terms of valuation, Avis Budget Group is currently trading at a Forward P/E ratio of 5.46. Its industry sports an average Forward P/E of 15.39, so we 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 183, which puts it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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