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Market forces can move against you fast. Large, swift moving global trends can make or break a business. Think of how traditional newspaper giants were displaced by online media companies in short order. One company that needs to adapt to the changing environment or go the way of the Dodo is today’s Bear of the Day Avis Budget Group (CAR - Free Report) .
Avis Budget Group, Inc. is a leading provider of vehicle rental services, with operations in more than seventy countries. Through its Avis and Budget brands, the company is the largest general-use vehicle rental company in each of North America, Australia, New Zealand and certain other regions.
The stock is a Zacks Rank #5 (Strong Sell) right now with a Momentum Style Score of F. The major reason for the unfavorable Zacks Rank is the recent bearish behavior from analysts covering the stock. Two analysts have decreased their estimates for the current year while two have also decreased their earnings estimates for next year. The bearish behavior has pushed down our Zacks Consensus Estimate from $3.49 to $3.24 for the current year and has deflated next year’s number from $3.98 to $3.61.
Shares of CAR have underperformed the Business Services industry YTD, with most of that underperformance coming in the last month and a half. CAR is off 20% so far this year while the industry is down 7%.To put that into perspective, the S&P 500 is up 5.5% on the year. The Business Services Industry ranks in the Bottom 15% of our Zacks Industry Rank.
It should come as no surprise that CAR has been selling off for quite some time, in line with the decreased EPS estimates coming from analysts. This is a stock that had been testing the low $40s for most of last winter. A nasty earnings report sent shares sliding from $41 to under $36 on February 16th. Since then shares have continued to slide lower, getting to a fresh 52-week low under $27 before a bit of a relief rally came in and took shares back above $28.
Investors looking for other stocks in the same industry should check out Zacks Rank #1 (Strong Buy) Performant Financial (PFMT - Free Report) and Zacks Rank #2 (Buy) Everi Holdings (EVRI - Free Report) .
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Bear of the Day: Avis Budget (CAR)
Market forces can move against you fast. Large, swift moving global trends can make or break a business. Think of how traditional newspaper giants were displaced by online media companies in short order. One company that needs to adapt to the changing environment or go the way of the Dodo is today’s Bear of the Day Avis Budget Group (CAR - Free Report) .
Avis Budget Group, Inc. is a leading provider of vehicle rental services, with operations in more than seventy countries. Through its Avis and Budget brands, the company is the largest general-use vehicle rental company in each of North America, Australia, New Zealand and certain other regions.
The stock is a Zacks Rank #5 (Strong Sell) right now with a Momentum Style Score of F. The major reason for the unfavorable Zacks Rank is the recent bearish behavior from analysts covering the stock. Two analysts have decreased their estimates for the current year while two have also decreased their earnings estimates for next year. The bearish behavior has pushed down our Zacks Consensus Estimate from $3.49 to $3.24 for the current year and has deflated next year’s number from $3.98 to $3.61.
Shares of CAR have underperformed the Business Services industry YTD, with most of that underperformance coming in the last month and a half. CAR is off 20% so far this year while the industry is down 7%.To put that into perspective, the S&P 500 is up 5.5% on the year. The Business Services Industry ranks in the Bottom 15% of our Zacks Industry Rank.
It should come as no surprise that CAR has been selling off for quite some time, in line with the decreased EPS estimates coming from analysts. This is a stock that had been testing the low $40s for most of last winter. A nasty earnings report sent shares sliding from $41 to under $36 on February 16th. Since then shares have continued to slide lower, getting to a fresh 52-week low under $27 before a bit of a relief rally came in and took shares back above $28.
Investors looking for other stocks in the same industry should check out Zacks Rank #1 (Strong Buy) Performant Financial (PFMT - Free Report) and Zacks Rank #2 (Buy) Everi Holdings (EVRI - Free Report) .
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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