Avis Budget Group (CAR) isn’t exactly a confidence-inspiring name right now, with CAR stock losing roughly 22% in the past six months. It’s also starting the new year off on the wrong foot, down more than 6%. Adding to the skepticism, the Barchart Technical Opinion indicator rates CAR as a 100% Strong Sell. It doesn’t get more emphatic than that. However, certain data points suggest a surprise may be on the horizon.
Here's the breakdown: Avis is scheduled to release its next earnings report on Feb. 18 after the market close. Now, I’m not going to sit here and pretend that I know what the company is going to deliver — your guess is as good as mine. However, what we can say is that certain trading patterns within the options market have signaled that Avis posting an earnings surprise represents a non-trivial possibility.
