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Are Investors Undervaluing Avis Budget Group (CAR) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Avis Budget Group (CAR - Free Report) . CAR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.02, which compares to its industry's average of 16.14. Over the past year, CAR's Forward P/E has been as high as 15.49 and as low as 3.12, with a median of 6.74.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CAR has a P/S ratio of 0.65. This compares to its industry's average P/S of 1.

Another great Business - Services stock you could consider is Crawford & Company (CRD.B - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Crawford & Company sports a P/B ratio of 3.27 as well; this compares to its industry's price-to-book ratio of 3.41. In the past 52 weeks, CRD.B's P/B has been as high as 3.39, as low as 1.37, with a median of 1.79.

These are just a handful of the figures considered in Avis Budget Group and Crawford & Company's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CAR and CRD.B is an impressive value stock right now.


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Avis Budget Group, Inc. (CAR) - free report >>

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