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Here's Why Avis Budget Group (CAR) Fell More Than Broader Market

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Avis Budget Group (CAR - Free Report) ended the recent trading session at $172.81, demonstrating a -0.65% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.17%. On the other hand, the Dow registered a loss of 0.58%, and the technology-centric Nasdaq increased by 0.27%.

Shares of the car rental company have depreciated by 4.43% over the course of the past month, outperforming the Transportation sector's loss of 5.81% and lagging the S&P 500's loss of 3.95%.

The upcoming earnings release of Avis Budget Group will be of great interest to investors. The company's earnings report is expected on November 1, 2023. The company's earnings per share (EPS) are projected to be $13.69, reflecting a 36.91% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $3.57 billion, up 0.78% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $36.73 per share and revenue of $12.01 billion. These totals would mark changes of -36.73% and +0.16%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Avis Budget Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 0.19% higher. Avis Budget Group presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Avis Budget Group currently has a Forward P/E ratio of 4.74. This expresses a discount compared to the average Forward P/E of 12.63 of its industry.

The Transportation - Services industry is part of the Transportation sector. This group has a Zacks Industry Rank of 218, putting it in the bottom 14% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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