On Wednesday, the Relative Strength (RS) Rating for Avis Budget Group climbed to 91, putting it in the top 9% of all stocks, regardless of industry, for price appreciation over the past year.
Research on more than 100 years of market history reveals that the top-performing stocks typically have an RS Rating over 80 in the early stages of their moves. Avis just flew past that milestone.
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Avis Stock Prized By Big Money Investors
Avis Budget is one of the Big 3 in car rentals companies, along with privately held Enterprise Holdings and Hertz Global. Among its other key ratings Avis stock has an OK 73 Composite Rating, out of 99.
It boasts a standout B+ Accumulation/Distribution Rating on an A+ to E scale. The B+ rating shows that large funds are eager buyers of its stock. One yellow flag is its 41 Earnings Per Share Rating, mainly on its latest quarter report, which shows a smaller year-over-year profit after three straight quarters of triple-digit growth.
Triple-Digit Profit Growth 3 Quarters, Then A Dip
Avis Budget Group reported a 23% year-over-year drop in earnings last quarter to a still hefty $7.72 per share. That came on the heels of 170%, 102% and 48% EPS growth the prior three periods. See if Avis can return to strong growth for the current quarter. Sales rose 5% last quarter to $2.56 billion.
Avis stock is building a cup-without-handle pattern with a 251.26 entry. Wednesday afternoon it was down more than 2% to about 219, although it's up 39% from a 157.55 low on May 16 at the bottom of the cup base. See if the stock can break out in heavy trade. It's a later-stage pattern, and investors should be aware that those can yield good returns but involve more risk.
Avis stock earns the No. 15 rank among its peers in the Leisure-Services industry group. Royal Caribbean Group, OneSpaWorld Holdings and Carnival are among the top 5 highly rated stocks in the group.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary RS Rating tracks technical performance by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
