Avis Budget (CAR) Soars 65% — Here’s Why

Avis Budget Inc. (NASDAQ:CAR) is one of the 10 Stocks With Monster Returns.

Avis Budget zoomed by 64.6 percent week-on-week, primarily driven by last week’s developments in the Middle East.

The rally can also be attributed to the stock’s short interest, which forced bearish investors to rapidly cover positions as prices climbed.

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It is worth noting that Avis Budget Group Inc. (NASDAQ:CAR) is a highly shorted company, with at least 20 percent of its float sold short, giving room for potential breakout rallies.

Short-selling aside, Avis Budget Inc. (NASDAQ:CAR) is benefitting from the uncertainties in the ongoing peace talks between the US and Iran, whose war over the past few weeks has sent global crude oil prices spiking.

This, on the other hand, sparked good news for used car and car rental stocks like Avis Budget Group Inc. (NASDAQ:CAR) and Hertz Global Holdings, as travelers look for alternative modes of transportation to mitigate risks from the oil spikes.

Last year, the company narrowed its net loss by 51 percent to $889 million from $1.82 billion in 2024. Revenues decreased by 1.6 percent to $11.6 billion from $11.79 billion year-on-year.

In the fourth quarter alone, Avis Budget Group Inc. (NASDAQ:CAR) incurred an attributable net loss of $747 million, or 61.8 percent lower than the $1.958 billion year-on-year. Revenues dipped 1.7 percent to $2.66 billion from $2.7 billion year-on-year.

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