We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Avis Budget Group (CAR) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Avis Budget Group (CAR - Free Report) closed at $299.70 in the latest trading session, marking a +0.55% move from the prior day. The stock lagged the S&P 500's daily gain of 0.57%. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq lost 0.11%.
Prior to today's trading, shares of the car rental company had gained 13.39% over the past month. This has outpaced the Business Services sector's loss of 7.15% and the S&P 500's loss of 5.26% in that time.
Avis Budget Group will be looking to display strength as it nears its next earnings release, which is expected to be May 2, 2022. On that day, Avis Budget Group is projected to report earnings of $3.42 per share, which would represent year-over-year growth of 843.48%. Our most recent consensus estimate is calling for quarterly revenue of $2.18 billion, up 59.09% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $22.41 per share and revenue of $10.48 billion. These totals would mark changes of -0.36% and +12.57%, respectively, from last year.
Any recent changes to analyst estimates for Avis Budget Group should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Avis Budget Group is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Avis Budget Group has a Forward P/E ratio of 13.3 right now. Its industry sports an average Forward P/E of 16.58, so we one might conclude that Avis Budget Group is trading at a discount comparatively.
We can also see that CAR currently has a PEG ratio of 0.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Business - Services was holding an average PEG ratio of 0.79 at yesterday's closing price.
The Business - Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Avis Budget Group (CAR) Gains But Lags Market: What You Should Know
Avis Budget Group (CAR - Free Report) closed at $299.70 in the latest trading session, marking a +0.55% move from the prior day. The stock lagged the S&P 500's daily gain of 0.57%. At the same time, the Dow added 0.7%, and the tech-heavy Nasdaq lost 0.11%.
Prior to today's trading, shares of the car rental company had gained 13.39% over the past month. This has outpaced the Business Services sector's loss of 7.15% and the S&P 500's loss of 5.26% in that time.
Avis Budget Group will be looking to display strength as it nears its next earnings release, which is expected to be May 2, 2022. On that day, Avis Budget Group is projected to report earnings of $3.42 per share, which would represent year-over-year growth of 843.48%. Our most recent consensus estimate is calling for quarterly revenue of $2.18 billion, up 59.09% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $22.41 per share and revenue of $10.48 billion. These totals would mark changes of -0.36% and +12.57%, respectively, from last year.
Any recent changes to analyst estimates for Avis Budget Group should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Avis Budget Group is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Avis Budget Group has a Forward P/E ratio of 13.3 right now. Its industry sports an average Forward P/E of 16.58, so we one might conclude that Avis Budget Group is trading at a discount comparatively.
We can also see that CAR currently has a PEG ratio of 0.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Business - Services was holding an average PEG ratio of 0.79 at yesterday's closing price.
The Business - Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.