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

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Avis Budget Group (CAR - Free Report) closed the most recent trading day at $234.33, moving +1.55% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.74%. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq lost 0.01%.

Heading into today, shares of the car rental company had gained 58.35% over the past month, outpacing the Business Services sector's gain of 1.47% and the S&P 500's gain of 4.58% in that time.

Wall Street will be looking for positivity from Avis Budget Group as it approaches its next earnings report date. This is expected to be October 31, 2022. The company is expected to report EPS of $14.88, up 38.55% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.52 billion, up 17.42% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $47.01 per share and revenue of $11.89 billion, which would represent changes of +109.03% and +27.72%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Avis Budget Group. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.03% lower. Avis Budget Group is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Avis Budget Group currently has a Forward P/E ratio of 4.91. This valuation marks a discount compared to its industry's average Forward P/E of 14.26.

The Business - Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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