Avis Budget Group, Inc. stock trades under the ticker CAR & has shown recent bullishness that traders & investors should take a closer look at.
CAR closed at $195.31/share on 1/14/2022.
Avis Budget Group, Inc. CAR Stock’s Technicals Broken Down
CAR Stock Price: $195.31
10 Day Moving Average: $197.44
50 Day Moving Average: $243.08
200 Day Moving Average: $134.75
On Friday, CAR stock completed a bullish MACD crossover, on below average volume compared to the last year.
Their price is ~2% from their 10 Day Moving Average & ~25% below their 50 Day MA.
CAR stock’s RSI is still in oversold territory, which should help them establish a new price range & begin climbing again.
The $208-level will be an interesting test of resistance, as the broader market indexes are volatile.
Avis Budget Group, Inc. CAR Stock As A Long-Term Investment
CAR stock’s valuation metrics are interesting, with a modest P/E (ttm) of 20.59, however their P/B(mrq) is a bit rich, at 7.14.
They saw 95.6% Quarterly Revenue Growth Y-o-Y after suffering losses from COVID-19 measures the year prior.
CAR stock’s balance sheet is going to require a close look before deciding if it is an appropriate investment for you, as their Total Cash (mrq) is $886M, while they have $17.16B in Total Debt (mrq).
Avis Budget Group, Inc. does not pay a dividend & has a beta of 2.07, meaning that it tends to trade in more aggressive swings than the broader market.
Avis Budget Group, Inc. CAR Stock As A Short-Term Trade Using Options
Traders can use options to harness CAR stock’s momentum, while fighting off broader market volatility.
I am looking at the contracts with the 2/18 expiration date.
The $195 & $200 calls look interesting, although very illiquid with low open interest.
Given that there are multiple weeks of expirations in between though, I expect this to shift as other expiration dates pass.
The $210 & $220 puts also look interesting, with the same open interest issue I mentioned as the calls in the near-term.
Tying It All Together
All-in-all, traders & investors may find CAR stock an interesting addition to their portfolios.
I would be very mindful of their debt structures, especially going into a rising rates environment, but there looks to possibly still be some opportunity here.
It is worth taking a closer look at CAR stock.
*** I DO NOT OWN SHARES OF CAR STOCK ***