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Is Avis Budget Group (CAR) Stock Undervalued Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Avis Budget Group (CAR - Free Report) . CAR is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.02. This compares to its industry's average Forward P/E of 22.14. Over the last 12 months, CAR's Forward P/E has been as high as 185.44 and as low as -790.64, with a median of 15.61.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.93. This compares to its industry's average P/S of 1.3.
Value investors will likely look at more than just these metrics, but the above data helps show that Avis Budget Group is likely undervalued currently. And when considering the strength of its earnings outlook, CAR sticks out at as one of the market's strongest value stocks.
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Is Avis Budget Group (CAR) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Avis Budget Group (CAR - Free Report) . CAR is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.02. This compares to its industry's average Forward P/E of 22.14. Over the last 12 months, CAR's Forward P/E has been as high as 185.44 and as low as -790.64, with a median of 15.61.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.93. This compares to its industry's average P/S of 1.3.
Value investors will likely look at more than just these metrics, but the above data helps show that Avis Budget Group is likely undervalued currently. And when considering the strength of its earnings outlook, CAR sticks out at as one of the market's strongest value stocks.