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Should Value Investors Buy Avis Budget Group (CAR) Stock?
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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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest 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 a Value grade of A. The stock is trading with P/E ratio of 8.07 right now. For comparison, its industry sports an average P/E of 17.47. Over the past 52 weeks, CAR's Forward P/E has been as high as 15.49 and as low as 3.12, with a median of 7.01.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CAR has a P/S ratio of 0.69. This compares to its industry's average P/S of 1.11.
If you're looking for another solid Business - Services value stock, take a look at Crawford & Company (CRD.B - Free Report) . CRD.B is a # 1 (Strong Buy) stock with a Value score of A.
Furthermore, Crawford & Company holds a P/B ratio of 1.80 and its industry's price-to-book ratio is 3.99. CRD.B's P/B has been as high as 2.03, as low as 1.37, with a median of 1.76 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Avis Budget Group and Crawford & Company are likely undervalued currently. And when considering the strength of its earnings outlook, CAR and CRD.B sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Avis Budget Group (CAR) Stock?
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest 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 a Value grade of A. The stock is trading with P/E ratio of 8.07 right now. For comparison, its industry sports an average P/E of 17.47. Over the past 52 weeks, CAR's Forward P/E has been as high as 15.49 and as low as 3.12, with a median of 7.01.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CAR has a P/S ratio of 0.69. This compares to its industry's average P/S of 1.11.
If you're looking for another solid Business - Services value stock, take a look at Crawford & Company (CRD.B - Free Report) . CRD.B is a # 1 (Strong Buy) stock with a Value score of A.
Furthermore, Crawford & Company holds a P/B ratio of 1.80 and its industry's price-to-book ratio is 3.99. CRD.B's P/B has been as high as 2.03, as low as 1.37, with a median of 1.76 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Avis Budget Group and Crawford & Company are likely undervalued currently. And when considering the strength of its earnings outlook, CAR and CRD.B sticks out as one of the market's strongest value stocks.