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Are Investors Undervaluing Avis Budget Group (CAR) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Avis Budget Group (CAR - Free Report) . CAR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.40 right now. For comparison, its industry sports an average P/E of 16.68. Over the past 52 weeks, CAR's Forward P/E has been as high as 10.51 and as low as 6.01, with a median of 8.43.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CAR has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.79.
Value investors will likely look at more than just these metrics, but the above data helps show that Avis Budget Group is likely undervalued currently. And when considering the strength of its earnings outlook, CAR sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Avis Budget Group (CAR) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Avis Budget Group (CAR - Free Report) . CAR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.40 right now. For comparison, its industry sports an average P/E of 16.68. Over the past 52 weeks, CAR's Forward P/E has been as high as 10.51 and as low as 6.01, with a median of 8.43.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CAR has a P/S ratio of 0.29. This compares to its industry's average P/S of 0.79.
Value investors will likely look at more than just these metrics, but the above data helps show that Avis Budget Group is likely undervalued currently. And when considering the strength of its earnings outlook, CAR sticks out at as one of the market's strongest value stocks.