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Are Investors Undervaluing Avis Budget Group (CAR) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Avis Budget Group (CAR - Free Report) . CAR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 15.22 right now. For comparison, its industry sports an average P/E of 21.72. Over the past 52 weeks, CAR's Forward P/E has been as high as 185.44 and as low as -790.64, with a median of -13.11.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CAR has a P/S ratio of 1. This compares to its industry's average P/S of 1.32.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Avis Budget Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CAR feels like a great value stock at the moment.
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Are Investors Undervaluing Avis Budget Group (CAR) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Avis Budget Group (CAR - Free Report) . CAR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 15.22 right now. For comparison, its industry sports an average P/E of 21.72. Over the past 52 weeks, CAR's Forward P/E has been as high as 185.44 and as low as -790.64, with a median of -13.11.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CAR has a P/S ratio of 1. This compares to its industry's average P/S of 1.32.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Avis Budget Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CAR feels like a great value stock at the moment.