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

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.

Avis Budget Group ( CAR) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.7%. By the end of trading, Avis Budget Group fell $2.06 (-6.8%) to $28.04 on heavy volume. Throughout the day, 9,138,562 shares of Avis Budget Group exchanged hands as compared to its average daily volume of 1,441,700 shares. The stock ranged in price between $27.27-$29.83 after having opened the day at $28.35 as compared to the previous trading day's close of $30.10. Other companies within the Services sector that declined today were: Corporate Resource Services ( CRRS), down 20.4%, Hertz Global Holdings ( HTZ), down 16.1%, Dex Media ( DXM), down 9.8% and Speed Commerce ( SPDC), down 9.5%.

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 $3.2 billion and is part of the diversified services industry. Shares are up 51.5% year to date as of the close of trading on Wednesday. Currently there are 3 analysts that rate Avis Budget Group a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Ratings rates Avis Budget Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Newlead Holdings ( NEWL), up 94.4%, FreeSeas ( FREE), up 50.9%, USA Truck ( USAK), up 36.2% and Sino-Global Shipping America ( SINO), up 17.4% , were all gainers within the services sector with Twenty-First Century Fox ( FOXA) being today's featured services sector leader.

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

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
null

If you liked this article you might like

Uber and Lyft Have Run Over the Car Industry

'Cloud Wars' Intensify; Staples Shows Some Staying Power -- ICYMI Friday

CarMax, Avis Still Assessing Hurricane Harvey's Catastrophe

A Pair Trade on Rental Cars