Positive

From Nasdaq: 2025-04-02 18:21:00

Avis Budget Group (CAR) shares have surged over 20% in the past week due to President Trump’s 25% tariffs on imported vehicles, which is expected to increase the fleet value for the rental car operator. This has led to positive investor sentiment and optimism about Avis’s pricing leverage for rental car services.

Avis stock, known for its earnings potential, has rebounded from its 52-week lows but is still 43% below its peak last year. Despite recent quarterly earnings beats, EPS estimates for FY25 and FY26 have declined in the past 60 days. However, annual earnings are projected to soar to $8.84 per share in FY25 and $14.47 in FY26.

Avis’s total sales are expected to rise 1% in FY25 and another 2% in FY26 to $12.2 billion. Currently trading at 8.7X forward earnings, CAR is undervalued compared to its industry average of 16.5X. This makes Avis stock attractive to long-term investors, but further decline in EPS estimates may signal a sell rating.

Monitoring the impact of imported vehicle tariffs on Avis’s operations and fleet value will be crucial as it could influence the stock’s performance. With a Zacks Rank #3 (Hold), Avis stock is worth watching for potential buying opportunities. Stay informed with expert-recommended stocks set to double in 2024, offering significant growth potential and low risk.



Read more at Nasdaq: Chase the Rebound in Avis (CAR) Stock Amid Trump’s Auto Tariff Boost?