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Avis Budget Group (CAR) Gains But Lags Market: What You Should Know

In the latest trading session, Avis Budget Group (CAR) closed at $121.42, marking a +0.93% move from the previous day. This change lagged the S&P 500's 1.11% gain on the day. Meanwhile, the Dow experienced a rise of 0.8%, and the technology-dominated Nasdaq saw an increase of 1.24%.

Prior to today's trading, shares of the car rental company had gained 7.9% over the past month. This has outpaced the Transportation sector's gain of 0.33% and the S&P 500's gain of 0.48% in that time.

Investors will be eagerly watching for the performance of Avis Budget Group in its upcoming earnings disclosure. On that day, Avis Budget Group is projected to report earnings of -$2.45 per share, which would represent a year-over-year decline of 131.74%. In the meantime, our current consensus estimate forecasts the revenue to be $2.54 billion, indicating a 0.67% decline compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.55 per share and revenue of $12.05 billion. These totals would mark changes of -63.05% and +0.37%, respectively, from last year.

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Investors should also take note of any recent adjustments to analyst estimates for Avis Budget Group. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

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. The Zacks Consensus EPS estimate has moved 4.77% lower within the past month. Avis Budget Group is currently sporting a Zacks Rank of #5 (Strong Sell).

In the context of valuation, Avis Budget Group is at present trading with a Forward P/E ratio of 7.74. This signifies a discount in comparison to the average Forward P/E of 15.3 for its industry.

The Transportation - Services industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 233, finds itself in the bottom 8% echelons 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report

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