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Avis Budget Group (CAR) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Avis Budget Group (CAR - Free Report) closed at $162.75, marking a -0.59% move from the previous day. This change lagged the S&P 500's daily gain of 1.25%. Meanwhile, the Dow experienced a rise of 0.97%, and the technology-dominated Nasdaq saw an increase of 1.3%.

Shares of the car rental company have depreciated by 2.02% over the course of the past month, outperforming the Transportation sector's loss of 2.61% and lagging the S&P 500's gain of 1.58%.

Analysts and investors alike will be keeping a close eye on the performance of Avis Budget Group in its upcoming earnings disclosure. The company's earnings report is set to go public on February 12, 2024. On that day, Avis Budget Group is projected to report earnings of $4.36 per share, which would represent a year-over-year decline of 58.32%. At the same time, our most recent consensus estimate is projecting a revenue of $2.8 billion, reflecting a 1.03% rise from the equivalent quarter last year.

Investors should also pay attention to any latest changes in analyst estimates for Avis Budget Group. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.47% lower. Right now, Avis Budget Group possesses a Zacks Rank of #4 (Sell).

From a valuation perspective, Avis Budget Group is currently exchanging hands at a Forward P/E ratio of 6.62. This expresses a discount compared to the average Forward P/E of 14.55 of its industry.

The Transportation - Services industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 169, positioning it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.


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