Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a momo momentum candidate. In addition to specific proprietary factors, Trade-Ideas identified Avis Budget Group as such a stock due to the following factors:
- CAR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $164.5 million.
- CAR has a PE ratio of 61.6.
- CAR is currently in the upper 30% of its 1-year range.
- CAR is in the upper 25% of its 20-day range.
- CAR is in the upper 35% of its 5-day range.
- CAR is currently trading above yesterday's high.
- CAR has experienced a gap between today's open and yesterday's close of 1.1%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.
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More details on CAR:
Avis Budget Group, Inc., together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary services to businesses and consumers worldwide. The company has three segments: North America, International, and Truck Rental. CAR has a PE ratio of 61.6. Currently there are 3 analysts that rate Avis Budget Group a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for Avis Budget Group has been 1.5 million shares per day over the past 30 days. Avis Budget Group has a market cap of $7.2 billion and is part of the services sector and diversified services industry. The stock has a beta of 2.78 and a short float of 16.4% with 6.50 days to cover. Shares are up 69.2% year-to-date as of the close of trading on Thursday.
rates Avis Budget Group as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- CAR's revenue growth has slightly outpaced the industry average of 8.8%. Since the same quarter one year prior, revenues slightly increased by 9.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Road & Rail industry. The net income increased by 192.8% when compared to the same quarter one year prior, rising from -$28.00 million to $26.00 million.
- Net operating cash flow has slightly increased to $621.00 million or 8.18% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.30%.
- Powered by its strong earnings growth of 192.30% and other important driving factors, this stock has surged by 142.65% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- AVIS BUDGET GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AVIS BUDGET GROUP INC reported lower earnings of $0.07 versus $2.39 in the prior year. This year, the market expects an improvement in earnings ($3.00 versus $0.07).
- You can view the full Avis Budget Group Ratings Report.