New Stocks Added to Zacks Rank #5 List on July 14th

Three stocks have been added to the Zacks Rank #5 (Strong Sell) List: Aperam S.A. (APEMY), Avis Budget Group (CAR), and Baidu (BIDU). The Zacks Consensus Estimate for their current year earnings has been revised downward by 13.5%, 54.6%, and 9.5%, respectively.

Shares of Avis Budget Group Inc. (NASDAQ: CAR) have surged to a 52-week high of $190.25, reflecting a robust rally for the car rental company. Over the past year, the stock has delivered an 82.41% gain, with even more impressive short-term performance, up 110.26% over six months and 120.57% year-to-date. The company’s market capitalization stands at $6.65 billion, underscoring investor optimism about its operational resilience and strategic direction [1].

The surge in Avis Budget's stock price is attributed to strong travel demand and favorable tailwinds in the mobility sector. Analysts anticipate the company returning to profitability by 2025, bolstering bullish sentiment despite mixed earnings guidance. Recently, Avis Budget appointed Daniel Cunha as Chief Financial Officer, effective July 1, 2025, replacing Izzy Martins. Additionally, the company expanded its senior notes offering to $600 million from the originally planned $500 million, with proceeds earmarked for general corporate purposes, including debt reduction [1].

Despite the positive market sentiment, not all analysts are aligned. Goldman Sachs recently cut its price target on the stock from $100 to $87 while maintaining a Neutral rating, citing concerns over Q2 revenue expectations and Q1 EBITDA results [1]. In related corporate news, Resources Connection Inc. (NASDAQ: RGP) announced changes to its Board of Directors, bringing in Jeffrey H. Fox and Filip Gydé, while two veteran directors plan to retire by 2025 [1].

Deutsche Bank raised its price target on Avis Budget Group to $196.00 from $130.00, citing factors such as elevated short interest in rental stocks, Pershing Square’s disclosed position in Hertz, and favorable fleet costs as key drivers of the sector’s performance. The bank also noted growing optimism about the potential roles of car rental companies in the emerging autonomous taxi ecosystem [2].

Despite caution from some quarters, the new high for Avis Budget reflects broad investor confidence in the company’s growth story and its positioning within a rebounding travel industry.

References:
[1] https://ih.advfn.com/market-news/article/12448/avis-budget-group-stock-hits-52-week-high-at-190-25-amid-strong-market-momentum
[2] https://www.investing.com/news/analyst-ratings/avis-budget-group-stock-price-target-raised-to-196-from-130-at-deutsche-bank-93CH-4130633