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Avis Budget Group (CAR) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest trading session, Avis Budget Group (CAR - Free Report) closed at $122.46, marking a -0.62% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.11% for the day. On the other hand, the Dow registered a gain of 0.12%, and the technology-centric Nasdaq decreased by 0.12%.

The car rental company's stock has climbed by 14.18% in the past month, exceeding the Transportation sector's gain of 1.53% and the S&P 500's gain of 3.55%.

The investment community will be closely monitoring the performance of Avis Budget Group in its forthcoming earnings report. In that report, analysts expect Avis Budget Group to post earnings of -$2.31 per share. This would mark a year-over-year decline of 129.92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.54 billion, down 0.67% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $15.70 per share and revenue of $12.06 billion, indicating changes of -62.69% and +0.4%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Avis Budget Group. Such recent modifications usually signify the changing landscape of 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 13.29% lower. Avis Budget Group is currently sporting a Zacks Rank of #5 (Strong Sell).

Looking at valuation, Avis Budget Group is presently trading at a Forward P/E ratio of 7.85. This indicates a discount in contrast to its industry's Forward P/E of 17.8.

The Transportation - Services industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 237, placing it within the bottom 6% of over 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.

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