Analysis Avis Budget Group

Meet Avis, a pioneer in the car rental industry. It is a company founded in 1946 by Warren Avis, which started with just three cars at the Willow Run airport in Detroit. Since then, the company's cars have traveled the roads all over the world.

Avis operates on every continent and has a presence in more than 165 countries, offering its customers a wide range of cars to choose from, no matter where they are or where they are going.

The COVID-19 pandemic affected the entire world. For Avis, this meant adapting to the new conditions. The company had to start disinfecting every car after rentals, and, most importantly, introduced online car reservations and pickup.

And it was the pandemic that made Avis the star of the US stock market. From a level of $13, the stock price rose 3000% in 1.5 years. Aversion to public transportation and demand for used cars led the company to record results in 2021 and 2022.

Avis operates in many countries around the world, with operations in the US, Canada, Mexico, Europe, Australia, New Zealand and elsewhere. It is the US that accounts for the bulk of the company's revenues and profits.

Avis is able to manage its finances very well and generate profits. Changes made during the pandemic resulted in lower costs.

The main problem on the chart is overcoming $245. A climb above this level could send the stock back to the$325 level.

The average valuation on TradingView is $255.

After the pandemic international tourism has taken off again. Companies have returned to posting their employees, and as a result, Avis still has a chance to generate revenue and profits. The low availability of new cars also helped sell the old fleet.

Of course, the company is competing with the best in the business, such as Hertz and Sixt, but also with services such as Uber. However, the company is doing quite well looking at the growing bottom line.

As for risks and rising costs, the development of electric and autonomous cars may require significant investments in fleet and infrastructure. But this is a challenge for any company in this industry.

So is it worth considering investing in the car rental sector? Avis, with its long history, global presence and ability to adapt in challenging environments, could be an interesting option. Time will tell where the company will get to. This is not investment advice but just my opinion. DYOR!

(Some informations taken from Wikipedia and TradingView)