Avis Budget Group’s Rollercoaster Ride Continues
Avis Budget Group (NASDAQ: CAR) has been on a wild ride in the last 24 months, taking investors and traders on a profitable journey. The stock fell from a high of $52.98 in February 2020 to $11 in March 2020 as the COVID-19 pandemic and economic lockdown decimated the rental car industry. However, the company has made a remarkable recovery, with shares currently priced at almost $231.63, representing a gain of 2,057% in the last 22 months.
But what’s behind this incredible turnaround? Industry analysts claim that Avis Budget Group has benefited from changes in legislation in many states that allow rental car companies to charge extra for an additional driver. This change has contributed significantly to the company’s earnings and profitability. The price of used cars, which are typically sold after a few years by rental car companies, has increased by 41% year over year, while new cars have seen a 12.9% increase in price.
Wall Street Analysts’ Estimates
We begin our analysis by looking at the estimates provided by Wall Street analysts. Based on the views of 6 top Wall Street analysts offering 12-month price targets for Avis Budget Group in the last 3 months, the average price target is $195.00, with a high forecast of $260.00 and a low forecast of $164.00. This represents a -15.81% change from the last price of $231.63.
From this initial analysis, we can see that Avis Budget Group is currently above fair value. However, it’s essential to consider other factors before making any investment decisions.
52-Week High-Low Chart
One crucial aspect of stock analysis is evaluating where an asset stands in relation to its 52-week highs. Great stocks tend to consistently make new 52-week highs, and analyzing these charts can provide valuable insights into a company’s performance. The 3-year monthly chart of Avis Budget Group (CAR) shows that the company has traded as high as $545.11 and as low as $62.85 over the last 52 weeks.
Best Case – Worst Case Analysis
To further understand Avis Budget Group’s potential, we examine its performance in comparison to major stock market indexes. Over the past year, CAR is up 226.56%, significantly outperforming the Dow Jones Industrials (3.56%), S&P 500 (23-fold), and other indexes.
We would expect this type of volatility to continue, which means traders should anticipate wild swings in the market and pay attention to the AI forecast when hitting large drawdown levels from recent peaks.
The Vantagepoint A.I. Analysis
Using VantagePoint Software and artificial intelligence, we can analyze trend forecasts by monitoring the slope of the predictive blue line. This line provides a value zone where traders try to purchase the asset at or below the blue line in uptrends.
In studying the chart below, pay close attention to the relationship between the black line (a simple 10-day moving average of price) and the predictive blue line (utilizing Vantagepoint’s patented Neural Network and Intermarket Analysis). The a.i. provided an UP forecast on 3/1/22 at $180.30 per share, which prices have since rallied above.
Fine Tuning Entries with The Neural Net Indicator
At the bottom of the chart is the Neural Network Indicator, predicting future strength and/or weakness in the market. When the Neural Net Indicator is green, it communicates strength; when it’s red, it forecasts short-term weakness.
We advocate that Power Traders cross-reference the chart with the predictive blue line and neural network indicator to create optimal entry and exit points. This "double confirmation" setup looks for the predictive blue line to slope higher and be confirmed by the Neural Net at the bottom of the chart.
VantagePoint Software Daily Price Range Prediction
One of the powerful features in Vantagepoint A.I. Software is the Daily Price Range prediction forecast, which allows traders to fine-tune their entries and exits into the market with exacting precision.
Intermarket Analysis
The Vantagepoint Software’s extraordinary capacity for Intermarket analysis enables us to find assets that are statistically interconnected and key drivers of price. This knowledge can help traders locate other opportunities and uncover industries affecting $CAR’s price movement.
By studying these intangibles, we can often see which ETFs are most likely acquiring $CAR as well as uncovering other industries that affect $CAR price movement.
Suggestion
The trend is UP. Momentum is UP. The stock is overvalued. However, given its incredible turnaround and continued outperformance of the S&P 500 by over 23-fold, we think this trend will continue.
We advise Power Traders to follow the AI trend analysis and practice good money management on all trades. CAR deserves to be on your radar; it might take several months to unfold, but if it makes a new closing high, we believe it will run substantially higher very quickly.
Disclaimer
THERE IS A HIGH DEGREE OF RISK INVOLVED IN TRADING. IT IS NOT PRUDENT OR ADVISABLE TO MAKE TRADING DECISIONS THAT ARE BEYOND YOUR FINANCIAL MEANS OR INVOLVE TRADING CAPITAL THAT YOU ARE NOT WILLING AND CAPABLE OF LOSING.
VantagePoint’s marketing campaigns do not constitute trading advice or an endorsement or recommendation by VantagePoint AI or any associated affiliates of any trading methods, programs, systems, or routines.