Avis Budget (CAR, $357.17) crushes Q3 expectations
Shares of Avis Budget Group as much as tripled on Tuesday, following the company’s third-quarter results.
The car rental company’s adjusted earnings came in at $10.74 a share, compared with $1.13 a share a year earlier. Analysts polled by FactSet had expected earnings of $6.87 a share.
Revenue almost doubled from the year-ago quarter to $3 billion. Analysts expected $2.67 billion.
"Our third quarter results are a testament to our team’s on-going focus around cost discipline and ability to execute operationally,” said Chief Executive Joe Ferraro in a statement.
CAR in downward trend: 10-day moving average broke below 50-day moving average on May 12, 2022
The 10-day Moving Average for CAR crossed bearishly below the 50-day moving average on May 12, 2022. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 10 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 90%.
Current price $205.13 crossed the support line at $205.62 and is trading between $205.62 support and $193.84 resistance lines. Throughout the month of 04/12/22 - 05/13/22, the price experienced a -20% Downtrend. During the week of 05/06/22 - 05/13/22, the stock fell -20%.
The Momentum Indicator moved below the 0 level on May 03, 2022. You may want to consider selling the stock, shorting the stock, or exploring put options on CAR as a result. In 66 of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 76%.
The Moving Average Convergence Divergence Histogram (MACD) for CAR turned negative on April 27, 2022. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In 40 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 80%.
CAR moved below its 50-day Moving Average on May 09, 2022 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CAR declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 76%.
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Stochastic Indicator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +3.80% 3-day Advance, the price is estimated to grow further. Considering data from situations where CAR advanced for three days, in 288 of 346 cases, the price rose further within the following month. The odds of a continued upward trend are 83%.
CAR may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 28%. During the last month, the daily ratio of advancing to declining volumes was 1.03 to 1.
The Tickeron SMR rating for this company is 100 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 95 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 86 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: CAR's P/B Ratio (256.410) is very high in comparison to the industry average of (4.387). P/E Ratio (6.494) is within average values for comparable stocks, (81.331). CAR's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.301). CAR has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.039). P/S Ratio (1.231) is also within normal values, averaging (24.823).
The Tickeron Price Growth Rating for this company is 41 (best 1 - 100 worst), indicating steady price growth. CAR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 32 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock better than average.
The Tickeron Seasonality Score of 20 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
A leasing company (e.g. United Rentals, Inc. ) is typically the legal owner of the asset for the duration of the lease, while the lessee has operating control over the asset while also having some share of the economic risks and returns from the change in the valuation of the underlying asset. Per capita disposable income and corporate earnings or cash flow could be some of the critical metrics for this business – the higher the values of these metrics, the potentially greater ability of consumers/businesses to afford apartments/office spaces for rent. Other finance companies include credit/debit card payment processing companies (e.g. Visa Inc. and Mastercard), private label credit cards providers (e.g. Synchrony Financial) and automobile finance companies (e.g. Credit Acceptance Corporation).
The average market capitalization across the Finance/Rental/Leasing Industry is 7.7B. The market cap for tickers in the group ranges from 10.3K to 428.7B. V holds the highest valuation in this group at 428.7B. The lowest valued company is CAFI at 10.3K.
The average weekly price growth across all stocks in the Finance/Rental/Leasing Industry was -5.6%. For the same Industry, the average monthly price growth was -7.59%, and the average quarterly price growth was -14.06%. SOHI experienced the highest price growth at 61.26%, while WINSF experienced the biggest fall at -70%.
- 5/3/22 8:19 AM: Avis Budget Group (CAR, $280.56) was a top loser this week, declining -6.39%. Expect a Downtrend reversal
- 2/26/22 6:56 AM: Avis Budget Group (CAR, $180.01) was a top weekly gainer, with a +12.19% jump
The average weekly volume growth across all stocks in the Finance/Rental/Leasing Industry was 29.18%. For the same stocks of the Industry, the average monthly volume growth was 47.26% and the average quarterly volume growth was 48.93%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the MA200MA50 Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 43%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.33.
76 stocks in the group of tickers confirmed the negative outlook based on the Aroon indicator with average odds of 74%.
The most notable companies in this group are VISA (NYSE:V), Mastercard (NYSE:MA), American Express Company (NYSE:AXP), PayPal Holdings (NASDAQ:PYPL), Capital One Financial (NYSE:COF), Discover Financial Services (NYSE:DFS), United Rentals (NYSE:URI), Synchrony Financial (NYSE:SYF), SLM Corp (NASDAQ:SLM), Bread Financial Holdings (NYSE:BFH).
The average market capitalization across the group is 10.9B. The market cap for tickers in the group ranges from 0 to 428.7B. V holds the highest valuation in this group at 428.7B. The lowest valued company is SLMBP at 0.
- 5/5/22 4:57 AM: VISA (V, $214.52), market cap jumped by $26.9B
- 4/28/22 6:01 AM: VISA (V, $214.11), market cap jumped by $41.8B
- 3/25/22 6:10 AM: VISA (V, $217.31), market cap jumped by $20.2B
The average weekly price growth across all stocks in the group was -5.68%. For the same group, the average monthly price growth was -11.16%, and the average quarterly price growth was -28.69%. JT experienced the highest price growth at 26.99%, while UPST experienced the biggest fall at -54.55%.
- 5/14/22 4:24 AM: Mr Cooper Group (COOP, $42.79) was a top loser this week, declining -5.25%. Expect a Downtrend reversal
- 5/14/22 4:23 AM: Sentage Holdings (SNTG, $0.6) is a top weekly loser for penny stocks, falling -17.81%
- 5/12/22 5:37 AM: Roan Holdings Group (RAHGF, $0.13) was a top loser this week, declining -7.08%. Expect a Downtrend continuation
The average weekly volume growth across all stocks in the group was 59.77%. For the same stocks of the group, the average monthly volume growth was 118.17% and the average quarterly volume growth was 135.16%
- 5/14/22 4:17 AM: The volume for loanDepot stock increased for four consecutive days, resulting in a record-breaking daily growth of 190% of the 65-Day Volume Moving Average
- 5/13/22 4:50 AM: The volume for loanDepot stock increased for three consecutive days, resulting in a record-breaking daily growth of 208% of the 65-Day Volume Moving Average
- 5/12/22 5:33 AM: The volume for loanDepot stock increased for two consecutive days, resulting in a record-breaking daily growth of 238% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows