Breakout for Avis Budget Group in the Charts?

Avis Budget Group Inc. (CAR) is a provider of automotive vehicle rental and car-sharing services. The company’s brands include Avis, Budget, and Zipcar. Avis targets the premium commercial and leisure segments of the travel industry, while Budget is focused on value-conscious customers…

Avis Budget Group Inc. (CAR) has been enhancing its technology and improving its offerings. For instance, CAR is looking to simplify customers’ online interaction to make the reservation, pick-up and return process easier. CAR is also working on expanding its connected vehicles fleet. This will allow it to streamline operations and cut costs.

CAR had $576 million in cash on hand at the end of the most recent quarter compared to very little short-term debt. Management is also quite efficient judging by its return on equity of 220.3%. While sales are down over the past year, earnings are forecasted to soar 118.6% this quarter.

Its stock is undervalued based on its trailing P/E of 9.2 and appears fairly valued based on its forward P/E ratio of 22.73. The stock has shown bullish momentum and is up 132% for the year as reflected in the chart below. This has led to a Momentum Grade of B in our POWR Ratings system.

Take a look at the 1-year chart of CAR below with added notations…

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