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Avis Budget (CAR) Surges 11.6%: Is This an Indication of Further Gains?

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Avis Budget Group (CAR - Free Report) shares soared 11.6% in the last trading session to close at $61.95. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 36.4% loss over the past four weeks.

The stock has recorded this price rise as the company’s improves on the back of growth in the leisure business, driven by robust international inbound and inter-European cross-border leisure travel.

This car rental company is expected to post quarterly loss of $5.49 per share in its upcoming report, which represents a year-over-year change of -71%. Revenues are expected to be $2.53 billion, down 1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Avis Budget, the consensus EPS estimate for the quarter has been revised 46% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CAR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Avis Budget is part of the Zacks Transportation - Services industry. TFI International Inc. (TFII - Free Report) , another stock in the same industry, closed the last trading session 0.8% higher at $82.53. TFII has returned -36.7% in the past month.

For TFI International, the consensus EPS estimate for the upcoming report has changed -32.2% over the past month to $1.04. This represents a change of -16.1% from what the company reported a year ago. TFI International currently has a Zacks Rank of #5 (Strong Sell).


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