10 Cheap Hot Stocks to Buy Right Now

2. Avis Budget Group Inc. (NASDAQ:CAR)

Forward P/E Ratio as of April 16: 3.39

Gain Over the Past 1 Month: 22.79%

Number 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.