Avis Budget Group Inc (CAR): Today's Featured Diversified Services Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Avis Budget Group ( CAR) pushed the Diversified Services industry higher today making it today's featured diversified services winner. The industry as a whole closed the day down 0.3%. By the end of trading, Avis Budget Group rose 36 cents (1.4%) to $26.47 on heavy volume. Throughout the day, 2.6 million shares of Avis Budget Group exchanged hands as compared to its average daily volume of 1.7 million shares. The stock ranged in a price between $26-$26.49 after having opened the day at $26.16 as compared to the previous trading day's close of $26.11. Other companies within the Diversified Services industry that increased today were: Innotrac Corporation ( INOC), up 10.1%, RLJ Entertainment ( RLJE), up 8.9%, ENGlobal Corporation ( ENG), up 7.9%, and Newtek Business Services ( NEWT), up 6.2%.
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Avis Budget Group, Inc., together with its subsidiaries, provides car and truck rentals, and ancillary services to businesses and consumers worldwide. Avis Budget Group has a market cap of $2.77 billion and is part of the services sector. The company has a P/E ratio of 10.7, below the S&P 500 P/E ratio of 17.7. Shares are up 31.7% year to date as of the close of trading on Monday. Currently there are three analysts that rate Avis Budget Group a buy, no analysts rate it a sell, and one rates it a hold.

TheStreet Ratings rates Avis Budget Group as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and solid stock price performance. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

On the negative front, Ambow Education ( AMBO), down 6.9%, YY ( YY), down 6.6%, PFSweb ( PFSW), down 6.3%, and Swisher Hygiene ( SWSH), down 4.8%, were all laggards within the diversified services industry with MasterCard Incorporated ( MA) being today's diversified services industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the diversified services industry could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the diversified services industry could consider ProShares Ultra Short Consumer Sers ( SCC).

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