Here's How Much You'd Have If You Invested $1000 in Avis Budget Group a Decade Ago
For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Avis Budget Group (CAR) ten years ago? It may not have been easy to hold on to CAR for all that time, but if you did, how much would your investment be worth today?
Avis Budget Group's Business In-Depth
With that in mind, let's take a look at Avis Budget Group's main business drivers.
Headquartered in Parsippany, N.J., Avis Budget Group operates as a leading vehicle rental operator in North America, Europe and Australasia with an average rental fleet of nearly 650,000 vehicles. The company is a leading global provider of mobility solutions through its three most recognized brands — Avis, Budget and Zipcar. The company has licensees in approximately 175 countries throughout the world.
Along with its licensees, Avis Budget operates in approximately 180 countries with more than 10,000 car and truck rental locations throughout the world.The company usually maintains a leading share of airport car rental revenue in North America, Europe and Australasia, and operates one of the leading truck rental businesses in the United States. Its Zipcar brand is one of the world’s leading car sharing businesses which provides an alternative to traditional vehicle rental and ownership.
Avis Budget mainly generates revenues from vehicle rental operations. These include time & mileage fees charged to our customers for vehicle rentals; sales of loss damage waivers and insurance and other supplemental items in conjunction with vehicle rentals; and payments from customers with respect to certain operating expenses incurred, including gasoline, vehicle licensing fees and concession fees, which provide the right to operate at airports and other locations. Additionally, the company earns revenues for royalties and associated fees from its licensees in conjunction with their vehicle rental transactions.
The company reports its operating results under two segments:
Americas: This segment (79% of 2022 revenues) consists of vehicle rental operations in North America, South America, Central America and the Caribbean, car sharing operations in certain of these markets, and licensees in the areas in which the company does not operate directly.
International: This segment (21%) consists of the company’s vehicle rental operations in Europe, the Middle East, Africa, Asia and Australasia, car sharing operations in certain of these markets, and licensees in the areas in which the company does not operate directly.
As of Dec 31, 2022, Avis Budget employed approximately 24,500 worldwide.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Avis Budget Group ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2013 would be worth $7,312.69, or a 631.27% gain, as of July 11, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
The S&P 500 rose 166.82% and the price of gold increased 48.07% over the same time frame in comparison.
Analysts are anticipating more upside for CAR.
Avis Budget's ability to cater to a wide range of mobility demands and its strategic acquisitions are helping it to strengthen its global foothold. It operates through distinct global brands that focus on different market segments and complement other brands in their respective regional markets. It is focusing on connected vehicle fleet expansion which can prove to be highly valuable in the near future, with technological enhancement efforts are aimed at improving the customer experience. The company's efforts to reward its shareholder through share repurchases are also praiseworthy. Partly, due to these positives, the company's shares have surged 46.7% in the past year.
The stock is up 17.57% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2023. The consensus estimate has moved up as well.
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Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
