Trade-Ideas LLC identified

Avis Budget Group

(

CAR

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Avis Budget Group as such a stock due to the following factors:

CAR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $52.8 million.

CAR has traded 180,367 shares today.

CAR is trading at 2.51 times the normal volume for the stock at this time of day.

CAR is trading at a new high 3.08% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on CAR:

Avis Budget Group, Inc., together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary services to businesses and consumers worldwide. The company operates through Americas and International segments. CAR has a PE ratio of 8. Currently there are 4 analysts that rate Avis Budget Group a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Avis Budget Group has been 3.4 million shares per day over the past 30 days. Avis Budget Group has a market cap of $2.4 billion and is part of the services sector and diversified services industry. The stock has a beta of 2.56 and a short float of 17.1% with 6.81 days to cover. Shares are down 30.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Avis Budget Group as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:

The revenue growth came in higher than the industry average of 16.6%. Since the same quarter one year prior, revenues slightly increased by 0.8%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.

The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Road & Rail industry and the overall market, AVIS BUDGET GROUP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.

AVIS BUDGET GROUP INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AVIS BUDGET GROUP INC increased its bottom line by earning $2.96 versus $2.22 in the prior year. This year, the market expects an improvement in earnings ($3.02 versus $2.96).

The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Road & Rail industry. The net income has significantly decreased by 121.7% when compared to the same quarter one year ago, falling from $23.00 million to -$5.00 million.

The debt-to-equity ratio is very high at 28.07 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, CAR maintains a poor quick ratio of 0.74, which illustrates the inability to avoid short-term cash problems.

You can view the full Avis Budget Group Ratings Report.

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