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Avis Budget Group (CAR) Gains As Market Dips: What You Should Know

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In the latest trading session, Avis Budget Group (CAR - Free Report) closed at $180.53, marking a +0.18% move from the previous day. This change outpaced the S&P 500's 0.8% loss on the day. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq lost 0.03%.

Coming into today, shares of the car rental company had gained 19.89% in the past month. In that same time, the Business Services sector lost 8.94%, while the S&P 500 lost 5.13%.

Investors will be hoping for strength from Avis Budget Group as it approaches its next earnings release, which is expected to be October 31, 2022. On that day, Avis Budget Group is projected to report earnings of $14.87 per share, which would represent year-over-year growth of 38.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.53 billion, up 17.53% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $46.68 per share and revenue of $11.91 billion, which would represent changes of +107.56% and +27.93%, respectively, from the prior year.

Any recent changes to analyst estimates for Avis Budget Group should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.73% lower. Avis Budget Group currently has a Zacks Rank of #4 (Sell).

Digging into valuation, Avis Budget Group currently has a Forward P/E ratio of 3.86. This valuation marks a discount compared to its industry's average Forward P/E of 13.69.

The Business - Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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