Avis Budget Group (CAR) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Avis Budget Group (CAR) closed at $176.43, marking a +0.77% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.16%.

Heading into today, shares of the car rental company had lost 21.81% over the past month, outpacing the Business Services sector's loss of 22.1% and lagging the S&P 500's loss of 5.39% in that time.

Investors will be hoping for strength from Avis Budget Group as it approaches its next earnings release, which is expected to be February 14, 2022. On that day, Avis Budget Group is projected to report earnings of $5.87 per share, which would represent year-over-year growth of 1730.56%. Meanwhile, our latest consensus estimate is calling for revenue of $2.46 billion, up 81.92% from the prior-year quarter.

Any recent changes to analyst estimates for Avis Budget Group should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 4.51% higher within the past month. Avis Budget Group is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Avis Budget Group is holding a Forward P/E ratio of 8.39. For comparison, its industry has an average Forward P/E of 17.31, which means Avis Budget Group is trading at a discount to the group.

We can also see that CAR currently has a PEG ratio of 0.43. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Business - Services industry currently had an average PEG ratio of 0.6 as of yesterday's close.

The Business - Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 99, putting it in the top 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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