#4 - Avis Budget Group (NASDAQ:CAR)
Rental car prices remain elevated. However, as Americans look to hit the road, their current ride may be looking a little worse for the wear. Particularly since the supply chain is still limiting the supply of new cars. And the global car rental market is expected to grow at a CAGR of 4.6% from now through 2028. That would put global revenue at $141.17 billion.
That bodes well for the fortunes of Avis Budget Group (NASDAQ:CAR) which delivered $9.3 billion in revenue in 2021. The Omicron wave of Covid-19 knocked CAR stock down from its 52-week high. However, that puts its price/earnings ratio at a level where the stock is undervalued. And the company is delivering earnings and revenue at higher levels than before the pre-pandemic.
Interested investors should pay attention to the short interest on CAR stock which sits just above the psychologically important 10% level with over 6 days needed to cover.
About Avis Budget Group
Avis Budget Group, Inc engages in the provision of vehicle sharing and rental services. It operates through the following segments: Americas, International, and Corporate and Other. The Americas segment includes the vehicle rental and car sharing operations in North America, South America, Central America, and the Caribbean.
More- Current Price
- $89.51
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 4 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $133.75 (49.4% Upside)
