Avis Budget Group (CAR – Analyst Report) was the Bear of the Day back on April 18, just before the company posted a huge miss 154% below the Zacks Consensus Estimate. Just the other day, the stock again became a Zacks Rank #5 (Strong Sell) and is again the Bear of the Day.
CAR missed the Zacks Consensus Estimate of a loss of $0.11 by $0.17 for a 154% negative earnings surprise in the most recent quarter.
Avis Budget Group is a provider of vehicle rental and car sharing services. The Company operates three brands, which include Avis, Budget and Zipcar. Avis is a rental car supplier and Budget is a rental vehicle supplier. It also owns Payless, which a car rental brand, and Apex, which is a car rental brand in New Zealand and Australia.
Usually when a stock is the Bear of the Day, the earnings history is filled with misses. This is not the case for CAR, as there are two misses over the last five quarters that have been reported.
The Zacks Consensus Estimate has been falling over the last several months. The FY16 estimate stood at $3.59 in January but fallen to $2.90 in July.
Next year has also saw a big move lower in estimates with the 2017 Zacks Consensus Estimate moving from $3.87 in January to $3.30 in July.
Zacks has developed a chart that helps investors see how earnings estimates have impacted the price of the stock over the last several years. We call this chart the price and consensus chart, and each color coded lines represents analyst estimates over a designated year. As estimates increase, the stock tends to follow. The Zacks Rank is impacted by earnings estimate increases, beats and incorporates the idea of analyst agreement and magnitude. As a Zacks Rank #5 (Strong Sell) we see that estimates are moving higher.
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Brian Bolan is a Stock Strategist for Zacks.com. He is the Editor in charge of theZacks Stocks Under $10, an investor service , where he recommends the stocks in the portfolio.
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