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Avis Budget Group (CAR) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Avis Budget Group (CAR - Free Report) closed at $178.37, marking a +0.27% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.02%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq added 0.22%.

Prior to today's trading, shares of the car rental company had lost 18.84% over the past month. This has lagged the Transportation sector's loss of 4.78% and the S&P 500's loss of 2.86% in that time.

Avis Budget Group will be looking to display strength as it nears its next earnings release. On that day, Avis Budget Group is projected to report earnings of $13.73 per share, which would represent a year-over-year decline of 36.73%. Our most recent consensus estimate is calling for quarterly revenue of $3.57 billion, up 0.78% from the year-ago period.

CAR's full-year Zacks Consensus Estimates are calling for earnings of $36.87 per share and revenue of $12.02 billion. These results would represent year-over-year changes of -36.49% and +0.2%, respectively.

Investors might also notice recent changes to analyst estimates for Avis Budget Group. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 0.15% lower. Avis Budget Group currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Avis Budget Group currently has a Forward P/E ratio of 4.83. This represents a discount compared to its industry's average Forward P/E of 13.63.

The Transportation - Services industry is part of the Transportation sector. This group has a Zacks Industry Rank of 204, putting it in the bottom 20% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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