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Why Avis Budget Group (CAR) Dipped More Than Broader Market Today

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Avis Budget Group (CAR - Free Report) closed the most recent trading day at $113.47, moving -1.54% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.14%. Meanwhile, the Dow experienced a drop of 0.77%, and the technology-dominated Nasdaq saw an increase of 0.17%.

Heading into today, shares of the car rental company had gained 15.19% over the past month, outpacing the Transportation sector's gain of 2.91% and the S&P 500's gain of 5.34% in that time.

Investors will be eagerly watching for the performance of Avis Budget Group in its upcoming earnings disclosure. On that day, Avis Budget Group is projected to report earnings of -$2.31 per share, which would represent a year-over-year decline of 129.92%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.54 billion, indicating a 0.67% decrease compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $15.70 per share and revenue of $12.06 billion, which would represent changes of -62.69% and +0.4%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Avis Budget Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 23.46% decrease. Avis Budget Group currently has a Zacks Rank of #5 (Strong Sell).

With respect to valuation, Avis Budget Group is currently being traded at a Forward P/E ratio of 7.34. For comparison, its industry has an average Forward P/E of 17.37, which means Avis Budget Group is trading at a discount to the group.

The Transportation - Services industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 231, finds itself in the bottom 9% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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