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Avis Budget Group (CAR) Gains As Market Dips: What You Should Know

In the latest trading session, Avis Budget Group (CAR) closed at $202.53, marking a +0.15% move from the previous day.

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This story originally appeared on Zacks

Avis Budget Group (CAR) closed at $202.53 in the latest trading session, marking a +0.15% move from the prior day. This change outpaced the S&P 500's 0.06% loss on the day. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq lost 0.3%.

- Zacks

Heading into today, shares of the car rental company had lost 23.78% over the past month, lagging the Business Services sector's loss of 8.62% and the S&P 500's gain of 5.76% in that time.

Investors will be hoping for strength from Avis Budget Group as it approaches its next earnings release. In that report, analysts expect Avis Budget Group to post earnings of $5.87 per share. This would mark year-over-year growth of 1730.56%. Our most recent consensus estimate is calling for quarterly revenue of $2.46 billion, up 81.92% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Avis Budget Group. These revisions help to show the ever-changing nature 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Avis Budget Group is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Avis Budget Group is currently trading at a Forward P/E ratio of 10.12. This represents a discount compared to its industry's average Forward P/E of 17.51.

Also, we should mention that CAR has a PEG ratio of 0.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CAR's industry had an average PEG ratio of 0.68 as of yesterday's close.

The Business - Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 119, which puts it in the top 47% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.



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