General Motors (GM), Avis Budget (CAR) stocks rise on upbeat business outlook

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General Motors (GM), Avis Budget (CAR) stocks rise on upbeat business outlook

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 General Motors (GM), Avis Budget (CAR) stocks rise on upbeat business outlook
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Highlights

  • General Motors Company (NYSE: GM) reveals plans to double its revenue by 2030.

  • The stock of Avis Budget Group, Inc. (NASDAQ: CAR) surged 256.8% YTD.

  • The revenue of CAR soared 212% YoY in Q2, FY21.

Stocks of General Motors Company (NYSE: GM) and Avis Budget Group, Inc. (NASDAQ: CAR) rose 3% and 8%, respectively, in intraday trading on Friday.

The GM stock traded at US$58.16, up 3.05%, while the CAR stock traded at US$136.39, up 7.86%, at around 1:27 pm ET from their previous closing prices.

Let’s explore how these stocks have performed recently.

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General Motors Company (NYSE: GM)

General Motors is a Michigan-based automotive firm that manufactures cars, trucks, and vehicle parts.

The company has been in the limelight after revealing plans to double its revenue by 2030. On Wednesday, GM said it will scale up its EV production and launch an automatic vehicle by 2023.

It also said that it would keep its electric vehicle cost at US$30,000, cheaper than its rivals.

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General Motors’ market cap is US$84.65 billion, the P/E ratio is 6.75, and the forward P/E one year is 9.38. Its EPS is US$8.64. The 52-week highest and lowest stock prices were US$64.30 and US$30.95, respectively. Its trading volume was 31,005,970 on October 7.

General Motors’ revenue was US$34.2 billion in Q2, FY21, versus US$16.8 billion in the year-ago quarter. Its net income was US$2.8 billion against a loss of US$0.8 billion in Q2 of FY 2020. The company expects its full-year net income to be between US$7.7 billion and US$9.2 billion.

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Trending Stocks: General Motors (GM) and Avis Budget Group (CAR)

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Avis Budget Group, Inc. (NASDAQ: CAR)

Avis Budget Group is a vehicle rental company based in New Jersey. It is the parent company of brands like Avis Car Rental, Budget Car Rental, etc.

Car rental companies have witnessed robust gains amid chip shortages and production delays faced by the automobile companies. In addition, consumer demand for personal vehicles has been growing. As a result, car rental companies are likely to gain the most from this trend. Avis plans to report its third-quarter results on November 1 after the markets close.

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Avis Budget Group’s market cap is US$9.15 billion, the P/E ratio is 54.15, and the forward P/E one year is 9.38. Its EPS is US$2.54. The 52-week highest and lowest stock prices were US$131.22 and US$28.20, respectively. Its share volume on October 7 was 2,206,587.

The total revenue of the company jumped 212% YoY to US$2.37 billion in Q2, FY21. It reported a net income of US$398 million, compared to a loss of US$481 million in the previous year's Q2.

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Bottomline

These stocks maintained steady growth in the recent trading sessions amid demand for new cars or personal ride-hailing services. The GM stock jumped 39.32%, while CAR rose 256.8% YTD. According to analysts, this trend will likely gain further momentum as the economy and the pandemic situation improve. However, investors should evaluate the companies carefully before investing in the stock market.

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