Breakout for Avis Budget Group in the Charts?

NASDAQ: CAR | Avis Budget Group, Inc. News, Ratings, and Charts

CAR – Avis Budget Group Inc (CAR) has been soaring this year, but it has recently met resistance. If the stock breaks through this resistance line, it could be headed for a breakout. Read more to learn how to profit from this trade.

Avis Budget Group Inc (CAR) is a provider of automotive vehicle rental and car-sharing services. The company’s brands include Avis, Budget, and Zipcar. Avis targets the premium commercial and leisure segments of the travel industry, while Budget is focused on value-conscious customers.

The company has been enhancing its technology and improving its offerings. For instance, CAR is looking to simplify customers’ online interaction to make the reservation, pick-up and return process easier. CAR is also working on expanding its connected vehicles fleet. This will allow it to streamline operations and cut costs.

CAR had $576 million in cash on hand at the end of the most recent quarter compared to very little short-term debt. Management is also quite efficient judging by its return on equity of 220.3%. While sales are down over the past year, earnings are forecasted to soar 118.6% this quarter.

Its stock is undervalued based on its trailing P/E of 9.2 and appears fairly valued based on its forward P/E ratio of 22.73. The stock has shown bullish momentum and is up 132% for the year as reflected in the chart below. This has led to a Momentum Grade of B in our POWR Ratings system.

Click Here to Read the Greatest Trading Book Ever Written

Take a look at the 1-year chart of CAR below with added notations:

 

Chart of CAR provided by TradingView

CAR had a great start to 2021, but the stock has recently hit a wall at the $90 level (red). That barrier is also preventing the stock from hitting new 52-week highs. A solid close above that $90 mark should lead to much higher prices for the stock.

CAR has a 52-week resistance at $90. The possible long position on the stock would be on a breakout above that level with a protective stop placed under it.

Want to Discover More Great Trades?

I have explored virtually every flavor of technical analysis and chart pattern known to mankind. The sad fact is that the vast majority of them don’t work at all.

That is why I recently put together this special report to help investors focus on the only 5 chart patterns that matter…the ones that lead to the most timely and profitable stock trades. Click below to get your copy now!

5 WINNING Stock Chart Patterns

Have a good trading day!

Good luck!

Christian Tharp, CMT

@cmtstockcoach


CAR shares fell $1.63 (-1.88%) in premarket trading Thursday. Year-to-date, CAR has gained 129.22%, versus a 12.12% rise in the benchmark S&P 500 index during the same period.


About the Author: Christian Tharp


I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
CARGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Recession is Here...Watch Out Below!

More and more it looks like recession is here. This includes a dramatic decline for ISM Manufacturing discovered this morning. As you likely know, most economist call manufacturing the "canary in the coal mine" for the US economy as it often shows weakness before other areas. In fact, GDP Now from the Atlanta Fed reads it loud and clear with a negative revision for the US economy down to -2.1% for Q2. Ouch! We are going to discuss these new economic facts...what it means for the stock market outlook...and an interesting view on why the S&P 500 (SPY) does not decline in orderly fashion. All that and more is coming your way in this week's commentary…

:  |  News, Ratings, and Charts

4 Ideal Stocks to Add to Your Portfolio in July

While sluggish consumer spending data led to the stock market ending the last trading session of June in the red, a moderate inflation forecast is nurturing hopes over the economy to avoid a recession. Therefore, investors might consider buying quality stocks ARC Document Solutions (ARC), Core Molding Technologies (CMT), DLH Holdings (DLHC), and Friedman Industries (FRD) at their current low price levels to benefit from their big rebounds. Read more…

:  |  News, Ratings, and Charts

Stocks to Fall MUCH FURTHER this Bear Market Cycle

Spoiler alert...the bear market is not over. Unfortunately history shows that the S&P 500 (SPY) has much further to fall to squeeze out excess valuation. That is just a natural part of the bear market process that is properly explained in this timely market commentary. More importantly, this commentary provides a strategy on how to profit in the days and weeks ahead as the market finds its way to bottom. Read on below for more...

:  |  News, Ratings, and Charts

Wall Street Analysts Predict More Than 160% Upside in These Stocks

The high global inflation and hawkish federal reserve are leading to heightened volatility in the market. However, despite the market uncertainties, Wall Street analysts see a more than 160% upside potential in IonQ (IONQ) and Rigetti Computing (RGTI). Thus, these stocks could be ideal additions to your watchlist. Keep reading…

:  |  News, Ratings, and Charts

Stocks to Fall MUCH FURTHER this Bear Market Cycle

Spoiler alert...the bear market is not over. Unfortunately history shows that the S&P 500 (SPY) has much further to fall to squeeze out excess valuation. That is just a natural part of the bear market process that is properly explained in this timely market commentary. More importantly, this commentary provides a strategy on how to profit in the days and weeks ahead as the market finds its way to bottom. Read on below for more...

Read More Stories

More Avis Budget Group, Inc. (CAR) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All CAR News