Should Value Investors Buy Avis Budget Group (CAR) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to...
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Avis Budget Group (CAR) is a stock many investors are watching right now. CAR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 18.28, while its industry has an average P/E of 28.38. Over the past 52 weeks, CAR's Forward P/E has been as high as 185.44 and as low as -790.64, with a median of 16.45.
Investors should also note that CAR holds a PEG ratio of 0.66. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CAR's industry currently sports an average PEG of 0.78. Over the last 12 months, CAR's PEG has been as high as 11.83 and as low as 0.16, with a median of 0.31.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Avis Budget Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CAR feels like a great value stock at the moment.
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Avis Budget Group, Inc. (CAR): Free Stock Analysis Report
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