Avis Budget Group Stock Buy Hold or Sell Recommendation
| CAR Stock | USD 103.30 0.68 0.66% |
Considering the 90-day investment horizon and your complete indifference towards market risk, our recommendation regarding Avis Budget Group is 'Strong Hold'. Macroaxis provides Avis Budget buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CAR positions. The advice algorithm takes into account all of Avis Budget's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Avis Budget's buy or sell advice are summarized below:
Real Value 131.97 | Target Price 234.5 | Hype Value 101.02 | Market Value 103.3 | Naive Value 104.33 |
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Avis Budget Group given historical horizon and risk tolerance towards Avis Budget. When Macroaxis issues a 'buy' or 'sell' recommendation for Avis Budget Group, the advice is generated through an automated system that utilizes algorithms and statistical models.
Avis |
Execute Avis Budget Buy or Sell Advice
The Avis recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Avis Budget Group. Macroaxis does not own or have any residual interests in Avis Budget Group or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Avis Budget's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Avis Budget Trading Alerts and Improvement Suggestions
| Avis Budget Group generated a negative expected return over the last 90 days | |
| Avis Budget Group has high historical volatility and very poor performance | |
| The company has 26.45 B in debt. Avis Budget Group has a current ratio of 0.74, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Avis Budget until it has trouble settling it off, either with new capital or with free cash flow. So, Avis Budget's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Avis Budget Group sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Avis to invest in growth at high rates of return. When we think about Avis Budget's use of debt, we should always consider it together with cash and equity. | |
| Avis Budget Group has a frail financial position based on the latest SEC disclosures | |
| Over 96.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from finance.yahoo.com: Minister Boissonnault highlights Budget investments to support every generation and build more homes for Canadians |
Avis Budget Returns Distribution Density
The distribution of Avis Budget's historical returns is an attempt to chart the uncertainty of Avis Budget's future price movements. The chart of the probability distribution of Avis Budget daily returns describes the distribution of returns around its average expected value. We use Avis Budget Group price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Avis Budget returns is essential to provide solid investment advice for Avis Budget.
| Mean Return | -0.62 | Value At Risk | -5.35 | Potential Upside | 4.99 | Standard Deviation | 4.04 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Avis Budget historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Avis Stock Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Avis Budget is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Avis Budget Group backward and forwards among themselves. Avis Budget's institutional investor refers to the entity that pools money to purchase Avis Budget's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Dimensional Fund Advisors, Inc. | 2023-12-31 | 296.4 K | Bank Of Nova Scotia | 2023-12-31 | 289.8 K | Citadel Advisors Llc | 2023-09-30 | 271.3 K | Bank Of New York Mellon Corp | 2023-12-31 | 234.5 K | Arrowstreet Capital Limited Partnership | 2023-12-31 | 229.2 K | Think Investments Lp | 2023-09-30 | 190.5 K | Norges Bank | 2023-12-31 | 170.6 K | Millennium Management Llc | 2023-12-31 | 155.8 K | Morgan Stanley - Brokerage Accounts | 2023-12-31 | 155.5 K | Srs Investment Management, Llc | 2023-12-31 | 17.1 M | Fmr Inc | 2023-12-31 | 4.2 M |
Avis Budget Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 165M | (135M) | (139M) | 16M | (13M) | (12.4M) | |
| Free Cash Flow | (91M) | 3.9B | (2.6B) | 576M | (11.6B) | (11.0B) | |
| Depreciation | 3.1B | 2.6B | 2.5B | 2.8B | 3.5B | 1.8B | |
| Other Non Cash Items | (866M) | (813M) | (923M) | (814M) | (608M) | (577.6M) | |
| Capital Expenditures | 2.7B | 3.3B | 6.1B | 4.1B | 15.5B | 16.2B | |
| Net Income | 302M | (684M) | 1.3B | 2.8B | 1.6B | 1.7B | |
| End Period Cash Flow | 900M | 765M | 626M | 642M | 559M | 609.9M | |
| Change To Netincome | (74M) | (298M) | 1.9B | 713M | 820.0M | 860.9M | |
| Investments | (2.8B) | 3.2B | (6.3B) | (4.3B) | (7.7B) | (7.3B) | |
| Change Receivables | 10M | 115M | (143M) | (97M) | (87.3M) | (82.9M) | |
| Net Borrowings | 251M | (26M) | 4.4B | (8M) | (9.2M) | (8.7M) |
Avis Budget Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Avis Budget or Ground Transportation sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Avis Budget's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Avis stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over NYSE Composite | -0.92 | |
β | Beta against NYSE Composite | 3.33 | |
σ | Overall volatility | 4.10 | |
Ir | Information ratio | -0.18 |
Avis Budget Volatility Alert
Avis Budget Group exhibits very low volatility with skewness of -2.53 and kurtosis of 13.5. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Avis Budget's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Avis Budget's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Avis Budget Implied Volatility
Avis Budget's implied volatility exposes the market's sentiment of Avis Budget Group stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Avis Budget's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Avis Budget stock will not fluctuate a lot when Avis Budget's options are near their expiration.
Avis Budget Fundamentals Vs Peers
Comparing Avis Budget's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Avis Budget's direct or indirect competition across all of the common fundamentals between Avis Budget and the related equities. This way, we can detect undervalued stocks with similar characteristics as Avis Budget or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Avis Budget's fundamental indicators could also be used in its relative valuation, which is a method of valuing Avis Budget by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Avis Budget to competition |
| Fundamentals | Avis Budget | Peer Average |
| Return On Equity | -2.73 | -0.31 |
| Return On Asset | 0.0636 | -0.14 |
| Profit Margin | 0.14 % | (1.27) % |
| Operating Margin | 0.17 % | (5.51) % |
| Current Valuation | 29.64 B | 16.62 B |
| Shares Outstanding | 35.65 M | 571.82 M |
| Shares Owned By Insiders | 2.80 % | 10.09 % |
| Shares Owned By Institutions | 95.92 % | 39.21 % |
| Number Of Shares Shorted | 3.29 M | 4.71 M |
| Price To Earning | 4.30 X | 28.72 X |
| Price To Book | 7.14 X | 9.51 X |
| Price To Sales | 0.34 X | 11.42 X |
| Revenue | 12.01 B | 9.43 B |
| Gross Profit | 6.01 B | 27.38 B |
| EBITDA | 5.8 B | 3.9 B |
| Net Income | 1.63 B | 570.98 M |
| Cash And Equivalents | 579 M | 2.7 B |
| Cash Per Share | 12.05 X | 5.01 X |
| Total Debt | 26.45 B | 5.32 B |
| Current Ratio | 0.76 X | 2.16 X |
| Book Value Per Share | (9.86) X | 1.93 K |
| Cash Flow From Operations | 3.83 B | 971.22 M |
| Short Ratio | 4.29 X | 4.00 X |
| Earnings Per Share | 42.08 X | 3.12 X |
| Price To Earnings To Growth | 1.76 X | 4.89 X |
| Target Price | 162.14 | |
| Number Of Employees | 18 K | 18.84 K |
| Beta | 2.23 | -0.15 |
| Market Capitalization | 3.66 B | 19.03 B |
| Total Asset | 33.42 B | 29.47 B |
| Retained Earnings | 3.85 B | 9.33 B |
| Working Capital | (520 M) | 1.48 B |
| Current Asset | 1.63 B | 9.34 B |
Avis Budget Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Avis . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Avis Budget Buy or Sell Advice
When is the right time to buy or sell Avis Budget Group? Buying financial instruments such as Avis Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.| 2021 | 2022 | 2023 | 2024 (projected) | Short and Long Term Debt Total | 17.8B | 20.9B | 26.5B | 27.8B | Total Assets | 22.6B | 25.9B | 33.4B | 35.1B |
Use Investing Ideas to Build Portfolios
In addition to having Avis Budget in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Consumer Goods
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Consumer Goods theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Consumer Goods Theme or any other thematic opportunities.
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Check out Avis Budget Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Avis Budget Group information on this page should be used as a complementary analysis to other Avis Budget's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Complementary Tools for Avis Stock analysis
When running Avis Budget's price analysis, check to measure Avis Budget's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Avis Budget is operating at the current time. Most of Avis Budget's value examination focuses on studying past and present price action to predict the probability of Avis Budget's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Avis Budget's price. Additionally, you may evaluate how the addition of Avis Budget to your portfolios can decrease your overall portfolio volatility.
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Is Avis Budget's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Avis Budget. If investors know Avis will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Avis Budget listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.29) | Earnings Share 42.08 | Revenue Per Share 313.525 | Quarterly Revenue Growth (0) | Return On Assets 0.0636 |
The market value of Avis Budget Group is measured differently than its book value, which is the value of Avis that is recorded on the company's balance sheet. Investors also form their own opinion of Avis Budget's value that differs from its market value or its book value, called intrinsic value, which is Avis Budget's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Avis Budget's market value can be influenced by many factors that don't directly affect Avis Budget's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Avis Budget's value and its price as these two are different measures arrived at by different means. Investors typically determine if Avis Budget is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Avis Budget's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.