A wise investment decision involves buying well-performing stocks at the right time while selling those that are at risk. A rise in share price and strong fundamentals signal a stock’s bullish run.
Avis Budget Group, Inc. (CAR - Free Report) is business services stock that has performed extremely well over the past year and has the potential to carry the momentum in near term. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
Why an Attractive Pick?
Share Price Appreciation: A glimpse of the company’s price trend reveals that the stock has had an impressive run on the bourse over the past year. Avis Budget returned a whopping 73.7%, which compared favorably with the industry’s gain of 4.8%.
Solid Rank & VGM Score: Avis Budget has a Zacks Rank #1 (Strong Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2 (Buy) offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: Three estimates for 2018 moved north over the past 60 days versus no southward revisions, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for 2018 climbed 10.1%.
Positive Earnings Surprise History: Avis Budget has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters, with an average beat of 35.4%.
Strong Growth Prospects: The Zacks Consensus Estimate for 2018 earnings of $3.60 reflects year-over-year growth of 26.3%. Moreover, earnings are expected to register 11% growth in 2019.
Growth Drivers: Avis Budget’s expansion strategy has been in full swing, courtesy of alliances, acquisitions and joint ventures. Moreover, in an effort to enhance its global footprint, the company invests in other growing markets where car rental demand is on the rise.
In 2017, Zipcar — the leading car-sharing network and subsidiary of Avis Budget — forayed into Iceland, Taiwan and Costa Rica. Zipcar has a significant presence in over 500 cities and towns across Europe, Asia and North America. By expanding footprint in various countries, Zipcar has widened its global network and coverage to almost all the major regions of the world.
This apart, Avis Budget remains focused on fortifying its fleet with the addition of latest car models from leading manufactures to attract customers. We believe that these strategies along with better customer support systems are likely to boost the company’s top line.
Avis Budget also continues to enhance its technology and improve offerings. The company is consistently trying to simplify customers’ online interaction to make the reservation, pick-up and return process more easy and user-friendly.
Furthermore, it entered into partnerships with various product and technology companies to enhance user experience with mobile and technology capabilities. By virtue of its partnerships with Alphabet and Amazon, users are likely to have voice-controlled access to the Avis Budget’s services via Google Assistant and Amazon Alexa enabled devices.
OtherStocks to Consider
Some other top-ranked stocks worth considering in the broader Business Services sector include Verifone Systems, Inc. (PAY - Free Report) , FLEETCOR Technologies, Inc. (FLT - Free Report) and WEX Inc. (WEX - Free Report) . While Verifone and FLEETCOR Technologies carry a Zacks Rank #2 (Buy), WEX sports a Zacks Rank #1.
The long-term expected earnings per share growth rate for Verifone, FLEETCOR Technologies and WEX is 14.9%, 16.5% and 14.3%, respectively.
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