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

Avis Budget Group (CAR) closed the most recent trading day at $154.52, moving +1.01% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.95%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq added 0.15%.

Coming into today, shares of the car rental company had lost 14.56% in the past month. In that same time, the Business Services sector lost 4.78%, while the S&P 500 lost 3.49%.

Investors will be hoping for strength from Avis Budget Group as it approaches its next earnings release. The company is expected to report EPS of $12.13, up 105.59% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.11 billion, up 31.25% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $39.29 per share and revenue of $11.46 billion, which would represent changes of +74.7% and +23.1%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Avis Budget Group. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 9.3% higher. Avis Budget Group is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, Avis Budget Group currently has a Forward P/E ratio of 3.89. For comparison, its industry has an average Forward P/E of 12.75, 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 0.2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CAR's industry had an average PEG ratio of 0.73 as of yesterday's close.

The Business - Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% 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.

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

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