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Strength Seen in Avis Budget (CAR): Can Its 6% Jump Turn into More Strength?

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Avis Budget Group (CAR - Free Report) shares ended the last trading session 6% higher at $163.83. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 16.5% loss over the past four weeks.

The stock is benefiting from the company’s acquisitions and technology enhancement initiatives.

This car rental company is expected to post quarterly earnings of $12.13 per share in its upcoming report, which represents a year-over-year change of +105.6%. Revenues are expected to be $3.11 billion, up 31.3% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Avis Budget, the consensus EPS estimate for the quarter has been revised 6.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CAR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Avis Budget belongs to the Zacks Business - Services industry. Another stock from the same industry, Crawford & Company B (CRD.B - Free Report) , closed the last trading session 2% higher at $7.30. Over the past month, CRD.B has returned -3.2%.

For Crawford & Company B, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.17. This represents a change of -34.6% from what the company reported a year ago. Crawford & Company B currently has a Zacks Rank of #4 (Sell).


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