Avis Budget Group, Inc CAR Stock Analysis

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

Avis Budget Group, Inc. CAR Stock's Technical Performance Over The Last Year

CAR Stock Price: $195.31

10 Day Moving Average: $197.44

50 Day Moving Average: $243.08

200 Day Moving Average: $134.75

RSI: 37.9

MACD: -11.645

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.