Shares of rental car company Avis Budget Group (NASDAQ: CAR) soared this week. After nearly moving 50% above last Friday’s close, the stock remained about 38% higher for the week as of mid-day Friday trading, according to data provided by S&P Global Market Intelligence.
Airport chaos is making headlines, and statistics show that long lines at some airport security checkpoints are sending consumers to the rental car counter.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
As the partial government shutdown continues to affect domestic airports, more travelers are considering renting cars. Avis Budget peer Hertz Global is seeing an approximately 15% surge in web traffic, according to reports. That implies that travelers are either avoiding flying to bypass airport congestion or making backup plans in case of missed flights during the spring travel season.
Risks remain high for Avis Budget stock in both directions. Retail traders made the stock a meme stock in 2021, driving it to over $350 per share. As of mid-march, 23.5% of the float was still sold short, according to MarketWatch. That could trigger a short squeeze, pushing the stock sharply higher in a short period. On the other hand, travel and tourism stocks could be hit hard by an economic downturn or global unrest.
Investors who may want to take a more passive approach should likely avoid this name. There are catalysts for more volatility ahead for Avis Budget Group.
Before you buy stock in Avis Budget Group, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Avis Budget Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $503,268!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,049,793!*
Now, it’s worth noting Stock Advisor’s total average return is 898% — a market-crushing outperformance compared to 182% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
