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5 Reasons to Add Avis Budget Group (CAR) Stock in Your Portfolio

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Avis Budget Group, Inc. (CAR - Free Report) , the leading car and truck rentals, car sharing, and ancillary services provider, has performed brilliantly over the past year and has the potential to sustain the momentum in the near term. Consequently, if you have not taken advantage of the share-price appreciation yet, it’s time you add the stock to your portfolio.

What Makes CAR an Attractive Pick?

An Outperformer: A glimpse of 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 returned 445.3%, significantly outperforming the 90.4% growth of the industry it belongs to.

Solid Rank: CAR has a Zacks Rank #1 (Strong Buy) and a Value Growth Momentum Score (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 is a compelling 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. Five estimates for 2022 moved north over the past 60 days versus no southward revision, reflecting analysts’ confidence in the stock. Over the same period, the Zacks Consensus Estimate for 2021 earnings has moved 89.3% north.

Positive Earnings Surprise History: Avis Budget has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in all of the trailing four quarters, delivering an average beat of 76.9%.

Growth Factors: Avis Budget remains focused on structurally improving its business amid the pandemic through cost discipline and operational efficiencies. It is trying to improve and expand its relationships with key original equipment manufacturing partners besides maintaining disciplined fleet buy according to customer demand.

Avis Budget continues to increase its use of technology and improve its offerings through connected cars, the Avis app and the Avis QuickPass offering to increase cost efficiency and customer satisfaction. Although COVID-19 remains a major headwind, the improving travel demand trend bodes well for the company.

Other Stocks to Consider

Some stocks in the broader Business Services sector that investors can consider are Cross Country Healthcare, Inc. (CCRN - Free Report) , sporting a Zacks Rank #1, and Accenture (ACN - Free Report) and Charles River Associates (CRAI - Free Report) , each carrying a Zacks Rank #2 (Buy).

Cross Country Healthcare has an expected earnings growth rate of around 500% for the current fiscal year. CCRN has a trailing four-quarter earnings surprise of 75%, on average.

Cross Country Healthcare’s shares have surged 214.6% so far this year. It has a long-term earnings growth of 21.5%.

Accenture has an expected earnings growth rate of 19.8% for the current year. The company has a trailing four-quarter earnings surprise of 5.3%, on average.

Accenture’s shares have surged 58.5% in the past year. The company has a long-term earnings growth of 10%.

Charles River Associates has an expected earnings growth rate of 61.2% for the current year. The company has a trailing four-quarter earnings surprise of 51%, on average.

Charles River’s shares have surged 82.6% in the past year. The company has a long-term earnings growth of 15.5%.

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