Singapore markets open in 23 minutes
  • Straits Times Index

    3,365.67
    -12.62 (-0.37%)
     
  • S&P 500

    4,076.60
    +58.83 (+1.46%)
     
  • Dow

    34,086.04
    +368.95 (+1.09%)
     
  • Nasdaq

    11,584.55
    +190.74 (+1.67%)
     
  • BTC-USD

    23,054.07
    +271.43 (+1.19%)
     
  • CMC Crypto 200

    523.16
    +4.37 (+0.84%)
     
  • FTSE 100

    7,771.70
    -13.17 (-0.17%)
     
  • Gold

    1,942.20
    -3.10 (-0.16%)
     
  • Crude Oil

    79.05
    +0.18 (+0.23%)
     
  • 10-Yr Bond

    3.5290
    -0.0220 (-0.62%)
     
  • Nikkei

    27,512.39
    +185.28 (+0.68%)
     
  • Hang Seng

    21,842.33
    -227.40 (-1.03%)
     
  • FTSE Bursa Malaysia

    1,485.50
    -13.89 (-0.93%)
     
  • Jakarta Composite Index

    6,839.34
    -33.14 (-0.48%)
     
  • PSE Index

    6,793.25
    -177.72 (-2.55%)
     

Why Avis Budget (CAR) Stock Gained 40.2% in the Past 3 Months

Shares of Avis Budget Group, Inc. CAR have gained 40.2% in the past three months compared with 3.1% rise of the industry it belongs to.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

The upside was primarily driven by enhanced technology, connected vehicles fleet and pro-investor steps.

Reasons for Upside

Avis Budget remains focused on expanding its connected vehicles fleet. The company’s connected car program enables customers to manage their entire rental through the Avis mobile app.

Expansion of connected cars fleet allows streamlining of operations and cost reduction. It enables enhanced tracking of idle vehicles and automated processing of cars ready to rent. Also, it facilitates real-time inventory counts, mileage management and automated maintenance notification.

Additionally, the massive data generated by these vehicles related to road conditions, accident prone zones, location mapping, weather report and user preferences while driving will actually be a much-prized resource for CAR, which can be monetized later.

Avis Budget continues to improve its technology and offerings. CAR is consistent in taking user-friendly steps by simplifying customers’ online interaction for easier reservation, pick-up and return process.

Avis Budget has an impressive track record of rewarding its shareholders through share repurchases. In 2021, 2020 and 2019, the company bought back shares worth $1.46 billion, $119 million and $67 million, respectively. Such moves underline the company’s confidence in business and help instill investors’ confidence in the stock by positively impacting earnings per share.

Favorable Estimate Revision

Driven by the above tailwinds, the Zacks Consensus Estimate for current-year earnings has moved up 12.2% to $52.75 per share in the past 60 days.

Zacks Rank and Stocks to Consider

Avis Budget currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks Business Services sector are Automatic Data Processing, Inc. ADP and Cross Country Healthcare, Inc. CCRN.

Automatic Data Processing carries a Zacks Rank #2 (Buy) at present. ADP has a long-term earnings growth expectation of 12%.

ADP delivered a trailing four-quarter earnings surprise of 3.5%, on average.

Cross Country Healthcare is currently Zacks #2 Ranked. CCRN has a long-term earnings growth expectation of 6%.

CCRN delivered a trailing four-quarter earnings surprise of 10.1%, on average.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report

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

Cross Country Healthcare, Inc. (CCRN) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research