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Is Avis Budget Group (CAR) a Great Value Stock 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company value investors might notice is Avis Budget Group (CAR - Free Report) . CAR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.13, while its industry has an average P/E of 12.78. CAR's Forward P/E has been as high as 37.43 and as low as 7.23, with a median of 13.01, all within the past year.

We also note that CAR holds a PEG ratio of 0.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CAR's industry has an average PEG of 0.67 right now. Over the past 52 weeks, CAR's PEG has been as high as 1.36 and as low as 0.16, with a median of 0.50.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CAR has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.08.

Another great Business - Services stock you could consider is Everi (EVRI - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Additionally, Everi has a P/B ratio of 8.39 while its industry's price-to-book ratio sits at 2.37. For EVRI, this valuation metric has been as high as 126.64, as low as 7.91, with a median of 29.99 over the past year.

These are just a handful of the figures considered in Avis Budget Group and Everi's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CAR and EVRI is an impressive value stock right now.


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Avis Budget Group, Inc. (CAR) - free report >>

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