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Here's Why Investors Should Retain Avis Budget (CAR) Now

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Avis Budget Group, Inc. (CAR - Free Report) is benefiting from its enhanced technology, connected fleets and shareholder-friendly measures.

Factors That Augur Well

Avis Budget continues to enhance its technology and improve offerings. CAR entered into partnerships with various product and technology companies to enrich the user experience with mobile and technology capabilities.

CAR deepens its focus on  expanding its connected vehicles fleet. Avis Budget's connected car program enables customers to manage their entire rental through the Avis mobile app. Expansion of connected cars fleet allows streamlining of operations and cost reduction. It enables enhanced tracking of idle vehicles, and automated processing of cars ready to be rented out.

Avis Budget has an impressive track record of rewarding its shareholders through share repurchases. In 2021, 2020 and 2019, CAR bought back shares worth $1.46 billion, $119 million and $67 million, respectively. Such moves underline CAR’s confidence in business and help raise investors’ optimism on the stock by driving the earnings per share.

Some Risks

Avis Budget currently has  no plan to pay out cash dividends on common stock. Payment of dividends in the future depends on a lot of factors, such as capital requirements for business, legal and regulatory requirements and covenants associated with certain debt obligations.  

Zacks Rank and Stocks to Consider

Avis Budget currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks  Business Services sector are Broadridge Financial Solutions, Inc. (BR - Free Report) , Paychex, Inc. (PAYX - Free Report) and  Cross Country Healthcare, Inc. (CCRN - Free Report) .

Broadridge carries a Zacks Rank #2 at present. BR’s current-year earnings and revenues are expected to be 9.4% and 7.5%, respectively.

Broadridge delivered a trailing four-quarter earnings surprise of 4.1%, on average.

Paychex carries a Zacks Rank of 2 at present. PAYX has a long-term earnings growth expectation of 7.5%.

Paychex delivered a trailing four-quarter earnings surprise of 8.6%, on average.

Cross Country Healthcare carries a Zacks Rank of 2, currently. CCRN has a long-term earnings growth expectation of 10%.

CCRN delivered a trailing four-quarter earnings surprise of 26%, on average.
 

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