AI Trading NASDAQ Tue, 13 Feb

Dear Reader,

The featured asset, Avis Budget Group Inc. (CAR), has shown potential for a high return of 803.5% between June 16, 2021 and December 13, 2023 if traded using the AI strategy. The average trade during this period resulted in an 80.35% return and lasted for 60 days in the long position. A total of 10 positions were taken during this time. Based on a model with a 0.66 accuracy rate for predicting upward trends in the next 2 weeks, the current trading idea suggests a STRONGBUY for CAR with a buy price target of 166.57. The analyst consensus price target is 224.25, indicating potential for further growth.

Avis Budget Group Inc (CAR) is a leading provider of car and truck rental services, car sharing, and ancillary services to both businesses and consumers. Headquartered in Parsippany, New Jersey, the company has a strong presence in the global market and is listed on the NASDAQ exchange under the symbol CAR.

The company has a long-standing history in the transportation industry, with roots dating back to 1946 when Warren Avis opened the first Avis location at Willow Run Airport in Michigan. Over the years, Avis has expanded its services to include not only car rentals but also truck rentals and car sharing through its subsidiary Zipcar. With a strong focus on customer service and innovation, Avis Budget Group has established itself as a trusted and reliable brand in the industry.

Markets and Historic Performance:
Avis Budget Group operates in the TRADE & SERVICES sector, specifically in the SERVICES-AUTO RENTAL & LEASING (NO DRIVERS) industry. The company caters to a diverse customer base, including leisure and business travelers, government agencies, and insurance replacement customers. It also offers long-term rentals and commercial truck rentals to businesses.

The company has a strong financial track record, with a market capitalization of $9.14 billion as of February 12, 2024. In the latest reported quarter, ending on September 30, 2022, Avis Budget Group reported a revenue of $11.79 billion, an increase of 18.2% year-over-year. The company’s profit margin and operating margin for the same period were 23.1% and 36.1%, respectively.

Share Price Performance:
On February 12, 2024, the share price of Avis Budget Group Inc (CAR) was recorded at $166.57. The company’s share price has shown a steady increase over the years, with a 52-week high of $327.80 and a 52-week low of $131.83. The 50-day moving average for the stock was $188.95, and the 200-day moving average was $187.64.

In the past year, the company’s share price has seen a significant increase, rising from $85.27 on February 12, 2023, to $166.57 on the same day in 2024. This represents a 95.2% increase in the company’s share price, highlighting its impressive performance in the market.

Current Company Information:
As of February 12, 2024, Avis Budget Group Inc (CAR) has a trailing price-to-earnings (P/E) ratio of 4.312, which is significantly lower than the industry average of 16.2. This indicates that the company’s stock may be undervalued, making it an attractive investment opportunity.

The company’s latest quarterly earnings growth year-over-year was 107.4%, and its quarterly revenue growth year-over-year was 18.2%. Analysts have a target price of $224.25 for the stock, which is 34.6% higher than the current share price.

In addition to its strong financial performance, Avis Budget Group Inc (CAR) is also committed to environmental sustainability and has implemented various initiatives to reduce its carbon footprint. The company has also recently launched a new mobile app, making it easier for customers to rent and manage vehicles.

In conclusion, Avis Budget Group Inc (CAR) is a well-established and financially sound company with a strong presence in the global transportation market. Its impressive historic performance and current share price make it a promising investment opportunity for those looking to add a stable and innovative company to their portfolio.

Symbol: CAR
AssetType: Common Stock
Name: Avis Budget Group Inc
Description: Avis Budget Group, Inc., offers car and truck rental, car sharing and ancillary services to businesses and consumers. The company is headquartered in Parsippany, New Jersey.
CIK: 723612
Exchange: NASDAQ
Currency: USD
Country: USA
FiscalYearEnd: December
LatestQuarter: 2022-09-30
MarketCapitalization: 9143341000
EBITDA: 4397000000
PERatio: 4.312
PEGRatio: 1.76
BookValue: -11.84
DividendPerShare: 0
DividendYield: 0
EPS: 51.14
RevenuePerShareTTM: 230.43
ProfitMargin: 0.231
OperatingMarginTTM: 0.361
ReturnOnAssetsTTM: 0.114
ReturnOnEquityTTM: -2.731
RevenueTTM: 11792000000
GrossProfitTTM: 4007000000
DilutedEPSTTM: 51.14
QuarterlyEarningsGrowthYOY: 1.074
QuarterlyRevenueGrowthYOY: 0.182
AnalystTargetPrice: 224.25
TrailingPE: 4.312
ForwardPE: 6.47
PriceToSalesRatioTTM: 0.651
PriceToBookRatio: 7.14
EVToRevenue: 2.289
Beta: 2.354
52WeekHigh: 327.8
52WeekLow: 131.83
50DayMovingAverage: 188.95
200DayMovingAverage: 187.64
SharesOutstanding: 41466400
DividendDate: None
ExDividendDate: 2006-02-23

Date Symbol Prediction Model Accuracy Price Target Analyst Target
2024-02-12 CAR STRONGBUY 0.66 166.57 224.25
2024-01-16 CAR WEAKBUY 0.66 159.33 224.25

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The Third Perspective Team