Avis Budget Group (CAR) closed the most recent trading day at $180.87, moving +1.4% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.59%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, added 0.83%.
Coming into today, shares of the car rental company had lost 18.9% in the past month. In that same time, the Transportation sector lost 5.02%, while the S&P 500 lost 2.84%.
Avis Budget Group will be looking to display strength as it nears its next earnings release. In that report, analysts expect Avis Budget Group to post earnings of $13.73 per share. This would mark a year-over-year decline of 36.73%. Our most recent consensus estimate is calling for quarterly revenue of $3.57 billion, up 0.78% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $36.87 per share and revenue of $12.02 billion, which would represent changes of -36.49% and +0.2%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Avis Budget Group. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 0.15% lower. Avis Budget Group is currently a Zacks Rank #3 (Hold).
Digging into valuation, Avis Budget Group currently has a Forward P/E ratio of 4.84. Its industry sports an average Forward P/E of 14.2, 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 group has a Zacks Industry Rank of 216, putting it in the bottom 15% 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.
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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