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TTEC vs. Avis Budget: Which Turnaround Stock is Better Positioned?
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Key Takeaways
TTEC is using AI tools to improve hiring, retention, and customer experience performance.
CAR saw pricing improve as tighter fleet management supported operational discipline.
CAR shares surged over 500% in April before collapsing amid speculative trading volatility.
Both TTEC Holdings (TTEC - Free Report) and Avis Budget Group (CAR - Free Report) are consumer-focused service companies working through turnaround efforts amid operational and macroeconomic challenges.
Despite near-term pressures, both companies are pursuing efficiency improvements and strategic initiatives to stabilize performance. Their recovery potential makes them appealing turnaround and long-term investment opportunities for investors seeking rebound plays.
TTEC: AI Strategy, Free Cash Flow Recovery
TTEC is addressing a market gap by combining its proprietary tools with AI to deliver secure, fast solutions for clients. The company aims to integrate leading technology partnerships with its customized software to optimize clients’ technology infrastructure. Its strategy focuses on using AI to support associates, reduce unnecessary costs and drive insight-based growth.
Importantly, TTEC’s AI strategy is designed to enhance, not replace, human interaction. During the first-quarter 2026 earnings call, CEO Kenneth Tuchman stated that the company’s objective is to improve the human-and-technology interface by automating repetitive tasks. This enables associates to use tailored insights to deliver more personalized, higher-value customer experiences.
The strategy has already shown positive results. TTEC reported a 25% increase in interview-to-hire rates, along with early improvements in hiring quality and employee retention. In learning and performance management, more than 100 Engage clients and over 25,000 associates are now using the TTEC Perform platform.
The company has also seen better net promoter scores and improved quality metrics through AI-powered coaching and support tools. Its accent-softening and language-translation platforms have also delivered encouraging results.
Overall, TTEC’s AI-driven approach is helping improve client engagement, support deal wins and strengthen operational performance. The strategy is designed to remain durable over the long term, positioning TTEC as a differentiated end-to-end customer experience transformation partner and helping it capture opportunities in the growing CX transformation market.
TTEC ended 2025 with a strong improvement in free cash flow (FCF). After reporting a negative FCF of $104 million in 2024, the company recovered significantly and generated $83 million in FCF in 2025. Management attributed the 2024 weakness mainly to the discontinuation of its accounts receivable factoring facility. In 2025, however, internal cash generation stabilized, supporting the recovery.
During the first quarter of 2026, TTEC generated $23 million in FCF, slightly higher than $22 million in the year-ago quarter and a notable improvement from the negative $9 million in the previous quarter.
The improvement in FCF also strengthened the company’s liquidity position. TTEC’s current ratio stood at 2.01 in the first quarter of 2026, improving from 1.96 in the year-ago quarter and 1.89 in the previous quarter. A current ratio above 1 is generally viewed positively by investors, as it indicates that the company is capable of meeting its short-term obligations efficiently.
CAR: Pricing Recovery, Partnerships, April Stock Collapse
Avis Budget Group’s Americas business recently delivered its first positive pricing quarter in a long time, signaling that industry conditions may finally be stabilizing. The improvement appears to have been supported by disciplined fleet reductions and tighter supply management across the rental market. Rather than aggressively pursuing volume growth, the company has focused more on improving vehicle utilization and preserving pricing quality. Careful control of fleet size has strengthened operational efficiency while helping reduce unnecessary pressure on margins. These developments suggest that Avis Budget is prioritizing profitability and operational discipline over short-term expansion. If pricing trends continue improving while industry supply remains constrained, the company could experience a stronger earnings recovery even without a major acceleration in overall travel demand.
A growing focus on technology-driven mobility initiatives is becoming an increasingly important part of Avis Budget’s long-term strategy. The company’s partnership with Waymo may expand into additional cities over time, strengthening its exposure to evolving transportation trends and autonomous mobility solutions. Rather than operating purely as a traditional rental car business, Avis Budget appears to be positioning itself within the broader future mobility ecosystem. The company has also continued expanding premium service initiatives such as Avis First, which aim to improve customer loyalty and enhance the travel experience. These initiatives indicate a greater emphasis on differentiated offerings instead of relying solely on cyclical rental demand. If autonomous transportation adoption accelerates in the coming years, Avis Budget’s early involvement with Waymo could potentially become a meaningful strategic advantage.
In late March and early April 2026, Avis Budget Group became the center of a major short squeeze after Pentwater Capital Management increased its stake amid heavy short interest. The imbalance between limited float and short positions pushed CAR shares up more than 500%, sending the stock above $700 by April 21, 2026. The rally collapsed rapidly on April 23, when shares plunged more than 48% in one session. The stock has lost roughly 70% of its value within days, falling to near $204 by April 24. The selloff deepened further after disappointing first-quarter 2026 earnings on April 29.
The events highlighted how vulnerable shares can become during periods of speculative trading activity. Unusual shareholder concentration and rapid momentum-driven trading contributed significantly to the extreme volatility seen in the stock. The collapse following the aggressive short squeeze demonstrated how quickly investor sentiment can reverse once speculative momentum fades. Even if the underlying business remains relatively stable, market perception around the company can shift dramatically within a short period of time. This type of volatility may discourage long-term investors seeking greater stability and predictability. The episode also raised concerns that technical trading dynamics could continue overshadowing business fundamentals, creating elevated uncertainty around future share price performance.
Thanks to the volatility, the stock is up 74% in three months but down 8.5% in a month.
How Do Zacks Estimates Compare for TTEC & CAR?
The Zacks Consensus Estimate for TTEC’s 2026 sales indicates a year-over-year decline of 4.9%, and that for EPS indicates year-over-year growth of 9.1%. EPS estimates have not changed over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CAR’s 2026 sales suggests 2.3% year-over-year growth, while EPS is expected to grow 127.8%. EPS estimates have been on a decline over the past 60 days.
Image Source: Zacks Investment Research
UiPath’s Valuation More Attractive Than AppLovin
TTEC is trading at a forward sales multiple of 0.06X, below its 12-month median of 0.08X. CAR’s forward sales multiple stands at 0.49X, above its median of 0.43X.
TTEC Appears Better Positioned
Between TTEC Holdings and Avis Budget Group, TTEC appears to offer the stronger long-term turnaround opportunity. The company is executing a more stable and operationally driven recovery strategy supported by AI-led transformation, improving free cash flow generation, and strengthening liquidity trends. Its focus on enhancing customer experience while improving efficiency positions the business well for durable growth. In contrast, Avis Budget continues to face elevated volatility tied to speculative trading activity and cyclical industry pressures.
TTEC carries a more favorable Zacks Rank #3 (Hold), while CAR holds a weaker Zacks Rank #4 (Sell), further supporting TTEC as the preferred recovery play.
View the Zacks #1 Rank List
Image: Bigstock
TTEC vs. Avis Budget: Which Turnaround Stock is Better Positioned?
Key Takeaways
Both TTEC Holdings (TTEC - Free Report) and Avis Budget Group (CAR - Free Report) are consumer-focused service companies working through turnaround efforts amid operational and macroeconomic challenges.
Despite near-term pressures, both companies are pursuing efficiency improvements and strategic initiatives to stabilize performance. Their recovery potential makes them appealing turnaround and long-term investment opportunities for investors seeking rebound plays.
TTEC: AI Strategy, Free Cash Flow Recovery
TTEC is addressing a market gap by combining its proprietary tools with AI to deliver secure, fast solutions for clients. The company aims to integrate leading technology partnerships with its customized software to optimize clients’ technology infrastructure. Its strategy focuses on using AI to support associates, reduce unnecessary costs and drive insight-based growth.
Importantly, TTEC’s AI strategy is designed to enhance, not replace, human interaction. During the first-quarter 2026 earnings call, CEO Kenneth Tuchman stated that the company’s objective is to improve the human-and-technology interface by automating repetitive tasks. This enables associates to use tailored insights to deliver more personalized, higher-value customer experiences.
The strategy has already shown positive results. TTEC reported a 25% increase in interview-to-hire rates, along with early improvements in hiring quality and employee retention. In learning and performance management, more than 100 Engage clients and over 25,000 associates are now using the TTEC Perform platform.
The company has also seen better net promoter scores and improved quality metrics through AI-powered coaching and support tools. Its accent-softening and language-translation platforms have also delivered encouraging results.
Overall, TTEC’s AI-driven approach is helping improve client engagement, support deal wins and strengthen operational performance. The strategy is designed to remain durable over the long term, positioning TTEC as a differentiated end-to-end customer experience transformation partner and helping it capture opportunities in the growing CX transformation market.
TTEC ended 2025 with a strong improvement in free cash flow (FCF). After reporting a negative FCF of $104 million in 2024, the company recovered significantly and generated $83 million in FCF in 2025. Management attributed the 2024 weakness mainly to the discontinuation of its accounts receivable factoring facility. In 2025, however, internal cash generation stabilized, supporting the recovery.
During the first quarter of 2026, TTEC generated $23 million in FCF, slightly higher than $22 million in the year-ago quarter and a notable improvement from the negative $9 million in the previous quarter.
The improvement in FCF also strengthened the company’s liquidity position. TTEC’s current ratio stood at 2.01 in the first quarter of 2026, improving from 1.96 in the year-ago quarter and 1.89 in the previous quarter. A current ratio above 1 is generally viewed positively by investors, as it indicates that the company is capable of meeting its short-term obligations efficiently.
CAR: Pricing Recovery, Partnerships, April Stock Collapse
Avis Budget Group’s Americas business recently delivered its first positive pricing quarter in a long time, signaling that industry conditions may finally be stabilizing. The improvement appears to have been supported by disciplined fleet reductions and tighter supply management across the rental market. Rather than aggressively pursuing volume growth, the company has focused more on improving vehicle utilization and preserving pricing quality. Careful control of fleet size has strengthened operational efficiency while helping reduce unnecessary pressure on margins. These developments suggest that Avis Budget is prioritizing profitability and operational discipline over short-term expansion. If pricing trends continue improving while industry supply remains constrained, the company could experience a stronger earnings recovery even without a major acceleration in overall travel demand.
A growing focus on technology-driven mobility initiatives is becoming an increasingly important part of Avis Budget’s long-term strategy. The company’s partnership with Waymo may expand into additional cities over time, strengthening its exposure to evolving transportation trends and autonomous mobility solutions. Rather than operating purely as a traditional rental car business, Avis Budget appears to be positioning itself within the broader future mobility ecosystem. The company has also continued expanding premium service initiatives such as Avis First, which aim to improve customer loyalty and enhance the travel experience. These initiatives indicate a greater emphasis on differentiated offerings instead of relying solely on cyclical rental demand. If autonomous transportation adoption accelerates in the coming years, Avis Budget’s early involvement with Waymo could potentially become a meaningful strategic advantage.
In late March and early April 2026, Avis Budget Group became the center of a major short squeeze after Pentwater Capital Management increased its stake amid heavy short interest. The imbalance between limited float and short positions pushed CAR shares up more than 500%, sending the stock above $700 by April 21, 2026. The rally collapsed rapidly on April 23, when shares plunged more than 48% in one session. The stock has lost roughly 70% of its value within days, falling to near $204 by April 24. The selloff deepened further after disappointing first-quarter 2026 earnings on April 29.
The events highlighted how vulnerable shares can become during periods of speculative trading activity. Unusual shareholder concentration and rapid momentum-driven trading contributed significantly to the extreme volatility seen in the stock. The collapse following the aggressive short squeeze demonstrated how quickly investor sentiment can reverse once speculative momentum fades. Even if the underlying business remains relatively stable, market perception around the company can shift dramatically within a short period of time. This type of volatility may discourage long-term investors seeking greater stability and predictability. The episode also raised concerns that technical trading dynamics could continue overshadowing business fundamentals, creating elevated uncertainty around future share price performance.
Thanks to the volatility, the stock is up 74% in three months but down 8.5% in a month.
How Do Zacks Estimates Compare for TTEC & CAR?
The Zacks Consensus Estimate for TTEC’s 2026 sales indicates a year-over-year decline of 4.9%, and that for EPS indicates year-over-year growth of 9.1%. EPS estimates have not changed over the past 60 days.
The Zacks Consensus Estimate for CAR’s 2026 sales suggests 2.3% year-over-year growth, while EPS is expected to grow 127.8%. EPS estimates have been on a decline over the past 60 days.
UiPath’s Valuation More Attractive Than AppLovin
TTEC is trading at a forward sales multiple of 0.06X, below its 12-month median of 0.08X. CAR’s forward sales multiple stands at 0.49X, above its median of 0.43X.
TTEC Appears Better Positioned
Between TTEC Holdings and Avis Budget Group, TTEC appears to offer the stronger long-term turnaround opportunity. The company is executing a more stable and operationally driven recovery strategy supported by AI-led transformation, improving free cash flow generation, and strengthening liquidity trends. Its focus on enhancing customer experience while improving efficiency positions the business well for durable growth. In contrast, Avis Budget continues to face elevated volatility tied to speculative trading activity and cyclical industry pressures.
TTEC carries a more favorable Zacks Rank #3 (Hold), while CAR holds a weaker Zacks Rank #4 (Sell), further supporting TTEC as the preferred recovery play.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.