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6 Reasons to Add Avis Budget (CAR) Stock to Your Portfolio Now

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A prudent investment decision involves buying well-performing stocks at the right time while selling those at risk. A rise in share price and strong fundamentals signal a stock’s bullish run.

Avis Budget Group, Inc. (CAR - Free Report) has performed exceptionally well lately and has the potential to sustain its momentum in the near term. Consequently, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.

What Makes Avis Budget an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse over the past year. Shares of Avis Budget have gained 124.5% over the past year, outperforming the 22.3% decline of the industry it belongs to.

Zacks Investment Research
Image Source: Zacks Investment Research

Solid Rank & VGM Score: Avis Budget currently carries a Zacks Rank #1 (Strong Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for Avis Budget’s second-quarter 2022 earnings has climbed 57% to $11.37 per share. Estimates for 2022 have moved up 66.4%.

Positive Earnings Surprise History: Avis Budget has an impressive earnings surprise history. The company delivered an earnings surprise of 102.1% in the last four quarters, on average.

Earnings Expectations: Earnings growth and stock price gains often serve as indicators of a company’s prospects. For second-quarter 2022, Avis Budget’s earnings are expected to register 92.7% growth. For full-year 2022, the company’s earnings are expected to grow at 59.8% year over year. The company has a long-term earnings growth rate of 19.4%.

Growth Factors: Avis Budget's ability to cater to a wide range of mobility demands helps it expand and strengthen its global foothold through organic growth. It operates through distinct global brands that focus on different market segments and complement other brands in their respective regional markets. CAR’s fleet expansion and technology enhancement efforts are likely to enhance its offerings. Consistency in rewarding its shareholders through share repurchases boosts investor confidence and positively impacts earnings per share.

Other Stocks to Consider

Some other stocks in the broader Business Services sector that investors can consider are Cross Country Healthcare (CCRN - Free Report) , Gartner (IT - Free Report) and Automatic Data Processing (ADP - Free Report) . While Cross Country Healthcare and Gartner sport a Zacks Rank #1, Automatic Data Processing carries a Zacks Rank #2.

Cross Country Healthcare has an expected earnings growth rate of 54.2% for the current year. CCRN has a trailing four-quarter earnings surprise of 29.2%, on average.

Cross Country Healthcare has a long-term earnings growth rate of 6.9%.

Gartner’s shares have risen 10.6% in the past year. IT delivered a trailing four-quarter earnings surprise of 24.2%, on average.

The Zacks Consensus Estimate for Gartner's current-year earnings has moved up 13.6% in the past 90 days.

Automatic Data Processing has an expected earnings growth rate of 15.8% for the current year. Automatic Data Processing has a trailing four-quarter earnings surprise of 6.2%, on average.

Automatic Data Processing has a long-term earnings growth rate of 12%.

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