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Yahoo
20-05-2025
- Automotive
- Yahoo
Is SPDR S&P Transportation ETF (XTN) a Strong ETF Right Now?
Designed to provide broad exposure to the Industrials ETFs category of the market, the SPDR S&P Transportation ETF (XTN) is a smart beta exchange traded fund launched on 01/26/2011. The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment. A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns. However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta. Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics. Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns. Because the fund has amassed over $200.99 million, this makes it one of the average sized ETFs in the Industrials ETFs. XTN is managed by State Street Global Advisors. Before fees and expenses, XTN seeks to match the performance of the S&P Transportation Select Industry Index. The S&P Transportation Select Industry Index represents the transportation segment of the S&P Total Market Index. Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio. Operating expenses on an annual basis are 0.35% for XTN, making it one of the least expensive products in the space. It has a 12-month trailing dividend yield of 0.99%. Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis. For XTN, it has heaviest allocation in the Industrials sector --about 100% of the portfolio. When you look at individual holdings, Avis Budget Group Inc (CAR) accounts for about 4.48% of the fund's total assets, followed by Uber Technologies Inc (UBER) and Skywest Inc (SKYW). The top 10 holdings account for about 31.17% of total assets under management. The ETF has lost about -8.90% so far this year and was up about 0.56% in the last one year (as of 05/20/2025). In the past 52-week period, it has traded between $62.77 and $95.17. The fund has a beta of 1.40 and standard deviation of 26.11% for the trailing three-year period, which makes XTN a high risk choice in this particular space. With about 45 holdings, it has more concentrated exposure than peers. SPDR S&P Transportation ETF is a reasonable option for investors seeking to outperform the Industrials ETFs segment of the market. However, there are other ETFs in the space which investors could consider. IShares U.S. Transportation ETF (IYT) tracks Dow Jones Transportation Average Index and the U.S. Global Jets ETF (JETS) tracks U.S. Global Jets Index. IShares U.S. Transportation ETF has $745.48 million in assets, U.S. Global Jets ETF has $850.10 million. IYT has an expense ratio of 0.39% and JETS charges 0.60%. Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Industrials ETFs. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR S&P Transportation ETF (XTN): ETF Research Reports Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report SkyWest, Inc. (SKYW) : Free Stock Analysis Report iShares U.S. Transportation ETF (IYT): ETF Research Reports U.S. Global Jets ETF (JETS): ETF Research Reports Uber Technologies, Inc. (UBER) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Washington Post
07-05-2025
- Automotive
- Washington Post
Avis Budget: Q1 Earnings Snapshot
PARSIPPANY, N.J. — PARSIPPANY, N.J. — Avis Budget Group Inc. (CAR) on Wednesday reported a loss of $505 million in its first quarter. On a per-share basis, the Parsippany, New Jersey-based company said it had a loss of $14.35.
Yahoo
18-04-2025
- Business
- Yahoo
Is Avis Budget Group Inc. (NASDAQ:CAR) a Cheap Hot Stock to Buy Right Now?
We recently published a list of the 10 Cheap Hot Stocks to Buy Right Now. In this article, we are going to take a look at where Avis Budget Group Inc. (NASDAQ:CAR) stands against other cheap hot stocks. Periods of high market volatility can make cheap stocks attractive because sharp price swings may undervalue fundamentally strong growth companies in the short run. This allows selective long-term investors to buy them at a discount and benefit when stability returns and prices recover. On April 17, AB's Jim Tierney and Charles Schwab's Kathy Jones appeared together on CNBC's 'Power Lunch' to discuss how long-term investors should move in the current market. Kathy Jones recommended neglecting the current marked noise and emphasized the importance of sticking to fundamental investment principles during such uncertainty. She advised investors to remain diversified, while keeping in mind their personal risk tolerance and capacity. She says that the current environment is one of considerable uncertainty and volatility, making a conservative, credit-quality-focused fixed income portfolio suitable. Jones thinks that long-term investors seeking income, capital preservation, and diversification from stocks should focus on higher credit quality bonds with a duration of about 5 to 7 years. She believes that this duration can balance earning a fair amount of interest income while minimizing credit risk, volatility, and interest rate risk. Given the current market uncertainty, Jim Tierney encouraged equity investors to seek and be selective about opportunities available to them right now. He's optimistic that attractive investment opportunities still exist despite the challenging environment. Tierney also addressed whether the recent market rebound should prompt investors to sell. He argued that for long-term investors, slightly lower prices amid a market that has risen about 90% over 5 years present a better entry point. He cautioned against expecting annual gains of 20% every year, noting that such consistently high returns are unrealistic. He highlighted the potential for companies capable of double-digit growth over the next 5 years to perform well despite tariff uncertainties. He advised focusing on firms that manufacture locally in different countries, so that tariff risks can be avoided. He even thinks that the companies with pricing power would be better off if tariffs were implemented in some form. We first sifted through the Finviz stock screener to compile a list of the top cheap stocks with a forward P/E ratio under 15 as of April 16. Then we picked the 10 hot stocks with highest gains over the past 1 month (over 15%), that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database, which tracks the moves of over 900 elite money managers. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A close up shot of a family loading their luggage into a car rental vehicle. Forward P/E Ratio as of April 16: 3.39Number of Hedge Fund Holders: 35 Avis Budget Group Inc. (NASDAQ:CAR) provides car and truck rentals, car sharing, and ancillary products & services to businesses and consumers. It operates the Avis brand, which offers vehicle rental and other mobility solutions to the premium commercial & leisure segments of the travel industry. It also offers the Zipcar brand for car sharing, and the Budget brand for supplying several mobility solutions. In Q4 2024, the Americas generated over $2.1 billion in revenue for the company. Avis' total revenue for 2024 was $2.7 billion. Vehicle utilization in the region was strong in Q4 at over 67%, which was more than 2 points higher year-over-year. This comes from maximizing revenue during peak leisure periods, with Christmas in the US being a record. Pricing was down 2% in Q4 year-over-year, but it showed sequential improvement throughout the quarter. The company started Q1 2025 with substantially fewer cars than in 2024 and will continue to exit older vehicles while rotating in the more cost-effective 2025 models. This rotation resulted in a non-cash impairment in Q4 2024 and is expected to have lingering effects on fleet costs in Q1 2025, with an expected all-in fleet cost per unit per month of ~$400 for the total company. Avis expects a drop in these costs to under $350 in Q2 and around $300 by year-end. Overall, CAR ranks 2nd on our list of the cheap hot stocks to buy right now. While we acknowledge the growth potential of CAR, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CAR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
29-03-2025
- Automotive
- Yahoo
Why Avis Budget Group Inc. (CAR) Surged On Thursday?
We recently published a list of . In this article, we are going to take a look at where Avis Budget Group Inc. (NASDAQ:CAR) stands against other stocks that jumped, defying market uncertainties on Thursday. The stock market extended losses on Thursday, with all the major indices ending in the red as investors continued to sell off positions to minimize risks from the ongoing trade tensions globally. The tech-heavy Nasdaq fell the hardest, down 0.53 percent, followed by the Dow Jones at 0.37 percent, and the S&P 500 at 0.33 percent. The broader market decline was mainly weighed down by shares in automakers following President Donald Trump's announcement of a 25-percent tariff on all vehicles imported to the US. Meanwhile, 10 companies defied a broader market pessimism amid fresh company developments that buoyed buying appetite. Two gold miners were particularly notable as investors sought safer assets amid the economic uncertainties. In this article, we listed Thursday's 10 best performers and detailed the reasons behind their gains. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5 million in trading volume. A close up shot of a family loading their luggage into a car rental vehicle. Avis Budget surged by 20.49 percent on Thursday to end at $74.16 apiece on investor confidence that its core car rental business would benefit from the imposition of a 25-percent tariff on new cars manufactured outside the US. Earlier this week, President Donald Trump announced that the US would begin to impose a 25-percent levy on all vehicles made outside the US beginning April 2. In a report by Reuters, Stock Trader Network chief strategist Dennis Dick said that rental companies will actually benefit from the tariffs 'because if car prices are going to go up, maybe some people who are like, 'You know what? I don't travel that much. I'll just rent a car.' 'You get a little bit of a short squeeze here too and that's really, really kickstarting this rally,' he added. JP Morgan also posted confidence that some automotive parts and services firms could benefit from the new tariff announcements as consumers are likely to hold on to existing cars longer than usual, with repair frequency and size both benefiting the sector. Overall, CAR ranks 3rd on our list of stocks that jumped, defying market uncertainties on Thursday. While we acknowledge the potential of CAR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as CAR but trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
