Avis Budget (CAR, $98.79) gets rating boost from Bank of America
Avis Budget shares rose Thursday, following a rating boost from Bank of America.
Bank of America upgraded rating on the car rental company’s shares to buy from neutral.
“Many of the macro factors driving ‘over-earning’ by the company in 2021 will likely persist well into 2022,” BofA analysts wrote in a commentary. The factors include limited incoming vehicle supply and tight average fleet, higher revenue per day from the ongoing supply/demand imbalance and moderated per unit fleet cost from elevated used vehicle pricing.
“Combined with ongoing execution by Avis, this should result in upward revisions to 2022 and beyond estimates that do not appear appreciated by the stock,” the analysts said.
Bank of America has a target price of $125 on Avis shares, up from $90.
CAR in upward trend: price rose above 50-day moving average on April 17, 2025
CAR moved above its 50-day moving average on April 17, 2025 date and that indicates a change from a downward trend to an upward trend. In of 31 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on April 17, 2025. You may want to consider a long position or call options on CAR as a result. In of 73 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for CAR just turned positive on March 26, 2025. Looking at past instances where CAR's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
The 10-day moving average for CAR crossed bullishly above the 50-day moving average on April 23, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CAR advanced for three days, in of 300 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 234 cases where CAR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 of 62 cases within the following month. The odds of a continued downward trend are .
CAR broke above its upper Bollinger Band on April 17, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Price Growth Rating for this company is (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 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CAR’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 67, placing this stock worse than average.
The Tickeron Valuation Rating of (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 (4.961). P/E Ratio (2.989) is within average values for comparable stocks, (55.984). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (3.039). CAR has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.042). P/S Ratio (0.385) is also within normal values, averaging (3.471).
The Tickeron SMR rating for this company is (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.
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an oparator of vehicle rental and car sharing services
Industry FinanceRentalLeasing