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Avis Budget Group (CAR) Rises But Trails Market: What Investors Should Know

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Avis Budget Group (CAR - Free Report) closed the most recent trading day at $108.12, moving +0.39% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.63%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq added 0.82%.

Prior to today's trading, shares of the car rental company had lost 4.05% over the past month. This has lagged the Transportation sector's gain of 0.44% and the S&P 500's gain of 1.76% in that time.

Market participants will be closely following the financial results of Avis Budget Group in its upcoming release. It is anticipated that the company will report an EPS of -$2.27, marking a 129.4% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.54 billion, down 0.67% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $16.33 per share and a revenue of $12.06 billion, indicating changes of -61.19% and +0.4%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Avis Budget Group. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 20.39% lower. Currently, Avis Budget Group is carrying a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Avis Budget Group is presently being traded at a Forward P/E ratio of 6.59. For comparison, its industry has an average Forward P/E of 17.88, which means Avis Budget Group is trading at a discount to the group.

The Transportation - Services industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 231, placing it within the bottom 9% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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