In the latest trading session, Avis Budget Group (CAR) closed at $199.35, marking a +0.86% move from the previous day. This change outpaced the S&P 500's 0.14% gain on the day. Meanwhile, the Dow gained 0.22%, and the Nasdaq, a tech-heavy index, added 0.09%.
Prior to today's trading, shares of the car rental company had lost 13.7% over the past month. This has lagged the Transportation sector's loss of 6.54% and the S&P 500's loss of 1.27% in that time.
Wall Street will be looking for positivity from Avis Budget Group as it approaches its next earnings report date. The company is expected to report EPS of $13.82, down 36.31% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.59 billion, up 1.14% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $36.92 per share and revenue of $12.04 billion, which would represent changes of -36.4% and +0.34%, respectively, from the prior year.
Any recent changes to analyst estimates for Avis Budget Group should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 has moved 2.41% lower. Avis Budget Group currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Avis Budget Group is currently trading at a Forward P/E ratio of 5.35. Its industry sports an average Forward P/E of 15.11, 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 146, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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