Breakout for Avis Budget Group in the Charts?

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.

Free Book Preview
Money-Smart Solopreneur

This book gives you the essential guide for easy-to-follow tips and strategies to create more financial success.


3 min read


This story originally appeared on StockNews

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…

The post Breakout for Avis Budget Group in the Charts? appeared first on StockNews.com

Katherine E. Ackerman

Next Post

The Amelia Island Concours included plenty of other fun events

Fri Jun 4 , 2021
Cars & Coffee at the Concours The fairways were alive with local car club classics, muscle cars and the just intriguing on May 22, as the Amelia Island Concours’ d’Elegance’s annual Cars & Coffee at the Concours, presented by Heacock Classic, parked on the same golf greens as the 26th […]

You May Like