Avis Budget Group, Inc. ( CAR Quick Quote CAR - Free Report) is a Business - Services industry stock that has performed well in the past year. Going forward, the stock holds the potential to sustain the momentum. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
Let’s check out what makes Avis Budget an attractive pick.
Price Performance: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse in the past year. Shares of Avis Budget have returned 11.4% in the past year compared with the industry’s growth of 12.8%. Solid Rank: Avis Budget has a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or #2 offer attractive investment opportunities for investors. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Northward Estimate Revisions: One estimate for fiscal 2021 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for fiscal 2021 moved up 6.7%. The Zacks Consensus Estimate for 2021 has narrowed from a loss of 30 cents per share to a loss of 28 cents in the past 90 days. Positive Earnings Surprise History: Avis Budget has an impressive earnings surprise history. The company outpaced the consensus mark in three of the last four quarters (missing the same in one). It has a trailing four-quater earnings surprise of 82.9%, on average. Growth Factors: Avis Budget is focused on expanding its connected vehicles fleet, having crossed the 200,000 connected cars mark in 2019. Expansion of connected cars fleet allows streamlining of operations and cost reduction. It enables enhanced tracking of idle vehicles and automated processing of cars ready to rent.
Avis Budget operates through distinct global brands that focus on different market segments and complement other brands in their respective regional markets. The company’s ability to cater to a wide range of mobility demands helps it expand and strengthen its global foothold through organic growth.
Moreover, the company has an impressive track record of share repurchases. In 2019, the company repurchased 2.2 million shares at a cost of $62 million. In 2018, 2017 and 2016, the company bought back shares worth $200 million, $210 million and $398 million, respectively. Such moves underline the company’s confidence in business and help instill investors’ confidence in the stock by positively impacting earnings per share.
Other Stocks to Consider
Some other top-ranked stocks in the broader Zacks
Business Services sector are ManpowerGroup (and MAN Quick Quote MAN - Free Report) , Huron Consulting ( HURN Quick Quote HURN - Free Report) NV5 Global (. Both ManpowerGroup and NV5 Global carry a Zacks Rank #2, while Huron Consulting sports a Zacks Rank #1. NVEE Quick Quote NVEE - Free Report)
The long-term expected earnings per share (three to five years) growth rate for ManpowerGroup, Huron Consulting and NV5 Global is at 3.5%, 14% and 18%, respectively.
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