Avis Budget Group
(CAR - Analyst Report
) was the Bear of the Day back on April 18, just before the company posted a huge miss 154% below the Zacks Consensus Estimate. Just the other day, the stock again became a Zacks Rank #5 (Strong Sell) and is again the Bear of the Day.
CAR missed the Zacks Consensus Estimate of a loss of $0.11 by $0.17
154% negative earnings surprise in the most recent quarter.
Avis Budget Group is a provider of vehicle rental and car sharing services. The Company operates three brands, which include Avis, Budget and Zipcar. Avis is a rental car supplier and Budget is a rental vehicle supplier. It also owns Payless, which a car rental brand, and Apex, which is a car rental brand in New Zealand and Australia.
Usually when a stock is the Bear of the Day, the earnings
history is filled with misses. This is not the case for CAR,
as there are two misses over the last five quarters that have
The Zacks Consensus Estimate
has been falling over the last several months. The FY16
estimate stood at $3.59 in January but fallen to $2.90 in July.
Next year has also saw a big move lower in estimates with the
2017 Zacks Consensus Estimate moving from $3.87 in January to $3.30
Zacks has developed a chart that helps investors see how
earnings estimates have
the price of the stock over the last several years. We call
this chart the
consensus chart, and each color coded lines represents
analyst estimates over a
designated year. As estimates increase, the stock tends to
follow. The Zacks
impacted by earnings estimate increases, beats and
incorporates the idea of
agreement and magnitude. As a
Zacks Rank #5 (Strong Sell) we see that estimates are moving
Follow Brian Bolan on twitter at
Brian Bolan is a Stock Strategist
for Zacks.com. He is the Editor in charge of the Zacks Stocks
Under $10, an
service , where he recommends the
stocks in the portfolio.
Brian also runs the brand new Zacks Game
Changers where he looks for stocks that are disrupting
industries and reaping big