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

Avis Budget soared by 23.27 percent on Monday to finish at $608.80 apiece, amid another round of short squeeze.

The stock is a highly shorted company, with at least 20 percent of its float sold short, giving room for potential breakout rallies.

Photo by Vladimir Srajber on Pexels

The rally came despite Barclays’ “sell” recommendation for its stock following the sharp short squeeze occurring over the past few weeks.

Barclays said that the rally was a “supply-demand mismatch” with two holders accounting for 71 percent of outright ownership, and over 100 percent of economic interest given outstanding swaps.

“All of this leads to uncertainty about how long this will last and whether CAR stock can go higher,” Barclays said.

Even with the improvements in the car fundamentals, Barclays said that the rally cannot be justified.

Year-to-date, Avis Budget Inc. (NASDAQ:CAR) has already gone up by 374 percent.

Last year, Avis Budget Inc. (NASDAQ:CAR) 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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