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Avis Budget Group (CAR) Gains But Lags Market: What You Should Know
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Avis Budget Group (CAR - Free Report) closed the most recent trading day at $151.78, moving +0.5% from the previous trading session. This move lagged the S&P 500's daily gain of 1.92%. Elsewhere, the Dow gained 2.15%, while the tech-heavy Nasdaq added 0.16%.
Coming into today, shares of the car rental company had lost 5.87% in the past month. In that same time, the Business Services sector gained 2.11%, while the S&P 500 gained 1.54%.
Avis Budget Group will be looking to display strength as it nears its next earnings release, which is expected to be August 1, 2022. On that day, Avis Budget Group is projected to report earnings of $12.39 per share, which would represent year-over-year growth of 110%. Our most recent consensus estimate is calling for quarterly revenue of $3.11 billion, up 31.25% from the year-ago period.
CAR's full-year Zacks Consensus Estimates are calling for earnings of $39.20 per share and revenue of $11.61 billion. These results would represent year-over-year changes of +74.3% and +24.71%, respectively.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.12% higher. Avis Budget Group currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note Avis Budget Group's current valuation metrics, including its Forward P/E ratio of 3.85. For comparison, its industry has an average Forward P/E of 13.84, which means Avis Budget Group is trading at a discount to the group.
It is also worth noting 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. The Business - Services industry currently had an average PEG ratio of 0.76 as of yesterday's close.
The Business - Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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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Avis Budget Group (CAR) Gains But Lags Market: What You Should Know
Avis Budget Group (CAR - Free Report) closed the most recent trading day at $151.78, moving +0.5% from the previous trading session. This move lagged the S&P 500's daily gain of 1.92%. Elsewhere, the Dow gained 2.15%, while the tech-heavy Nasdaq added 0.16%.
Coming into today, shares of the car rental company had lost 5.87% in the past month. In that same time, the Business Services sector gained 2.11%, while the S&P 500 gained 1.54%.
Avis Budget Group will be looking to display strength as it nears its next earnings release, which is expected to be August 1, 2022. On that day, Avis Budget Group is projected to report earnings of $12.39 per share, which would represent year-over-year growth of 110%. Our most recent consensus estimate is calling for quarterly revenue of $3.11 billion, up 31.25% from the year-ago period.
CAR's full-year Zacks Consensus Estimates are calling for earnings of $39.20 per share and revenue of $11.61 billion. These results would represent year-over-year changes of +74.3% and +24.71%, respectively.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.12% higher. Avis Budget Group currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note Avis Budget Group's current valuation metrics, including its Forward P/E ratio of 3.85. For comparison, its industry has an average Forward P/E of 13.84, which means Avis Budget Group is trading at a discount to the group.
It is also worth noting 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. The Business - Services industry currently had an average PEG ratio of 0.76 as of yesterday's close.
The Business - Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.