Dj Moody's Ratings Announces Completion Of A Periodic Review Of Ratings Of Avis Budget Car Rental, Llc

What Happened?

A number of stocks fell in the afternoon session after the Dow Jones Industrial Average fell as much as 0.7%, reflecting lingering uncertainty, and capping off a volatile week which saw stocks enjoy some relief as President Donald Trump reduced tensions with European allies by backing off his threat of imposing new tariffs. 

Threats of tariffs initially created uncertainty for businesses, as they can lead to higher costs for multinational corporations and disrupt global supply chains. By withdrawing the threat, the administration removed a significant headwind for the market, prompting a relief rally. This development was a key factor in helping major indexes recover from earlier losses, even as some analysts noted that underlying geopolitical risks and market volatility remain concerns for investors.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Building Materials company Tecnoglass fell 3.2%. Is now the time to buy Tecnoglass? Access our full analysis report here, it’s free.
• Agricultural Machinery company Deere fell 2.4%. Is now the time to buy Deere? Access our full analysis report here, it’s free.
• Ground Transportation company Avis Budget Group fell 3.4%. Is now the time to buy Avis Budget Group? Access our full analysis report here, it’s free.
• Commercial Building Products company Insteel fell 2.7%. Is now the time to buy Insteel? Access our full analysis report here, it’s free.
• Heavy Transportation Equipment company REV Group fell 3%. Is now the time to buy REV Group? Access our full analysis report here, it’s free.

Zooming In On Avis Budget Group (CAR)

Avis Budget Group’s shares are very volatile and have had 24 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 10 months ago when the stock gained 21.1% on the news that shares of car rental companies rose as the 25% tariffs announced by President Trump on all vehicles imported into the US suggested new vehicles might be more expensive. 

The thinking on the Street is pretty straightforward: if new cars get more expensive, consumers might hold off on buying.That puts rental and car-sharing companies in a good spot. If buying a new car suddenly feels more expensive, people might start looking for cheaper, more flexible options. Renting for a weekend trip, or even month-to-month deals, start to make a lot more sense.So investors are getting ahead of that curve. They're betting demand for these services picks up, which means better fleet utilization, stronger revenues, and possibly fatter margins for the big rental players.

Avis Budget Group is down 4.8% since the beginning of the year, and at $122.05 per share, it is trading 41.2% below its 52-week high of $207.55 from July 2025. Investors who bought $1,000 worth of Avis Budget Group’s shares 5 years ago would now be looking at an investment worth $2,975.

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the ground transportation industry, including RXO and its peers.

The growth of e-commerce and global trade continues to drive demand for shipping services, especially last-mile delivery, presenting opportunities for ground transportation companies. The industry continues to invest in data, analytics, and autonomous fleets to optimize efficiency and find the most cost-effective routes. Despite the essential services this industry provides, ground transportation companies are still at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs can influence profit margins.

The 16 ground transportation stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates.

Luckily, ground transportation stocks have performed well with share prices up 17.7% on average since the latest earnings results.

RXO

With access to millions of trucks, RXO offers full-truckload, less-than-truckload, and last-mile deliveries.

RXO reported revenues of $1.42 billion, up 36.6% year on year. This print was in line with analysts’ expectations, but overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates.

RXO Chairman and CEO Drew Wilkerson said, “Market conditions tightened late in the third quarter as truckload capacity exits accelerated, which impacted both our buy rates and Brokerage gross margin. We also saw a further weakening of demand across our business as the quarter progressed. Both of these dynamics have continued into the fourth quarter. As we navigate this market, everyone at RXO remains focused on delivering results for our customers, carriers, employees and shareholders.”

RXO pulled off the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 15.2% since reporting and currently trades at $15.75.

Read our full report on RXO here, it’s free.

Best Q3: Hertz

Started with a dozen Model T Fords, Hertz is a global car rental company providing vehicle rental services to leisure and business travelers.

Hertz reported revenues of $2.48 billion, down 3.8% year on year, outperforming analysts’ expectations by 3.1%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Hertz pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 15.2% since reporting. It currently trades at $5.72.

Weakest Q3: Universal Logistics

Founded in 1932, Universal Logistics is a provider of customized transportation and logistics solutions operating throughout the United States and in Mexico, Canada, and Colombia.

Universal Logistics reported revenues of $396.8 million, down 7% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 15.9% since the results and currently trades at $17.76.

Read our full analysis of Universal Logistics’s results here.

Werner

Conducting business in over a 100 countries, Werner offers full-truckload, less-than-truckload, and intermodal delivery services.

Werner reported revenues of $771.5 million, up 3.5% year on year. This print surpassed analysts’ expectations by 1%. More broadly, it was a softer quarter as it logged a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

The stock is up 36.5% since reporting and currently trades at $34.65.

Read our full, actionable report on Werner here, it’s free.

Avis Budget Group

The parent company of brands such as Zipcar and Budget Truck Rental, Avis is a provider of car rental and mobility solutions.

Avis Budget Group reported revenues of $3.52 billion, up 1.1% year on year. This result beat analysts’ expectations by 1.8%. It was a very strong quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EBITDA estimates.

The stock is down 24.2% since reporting and currently trades at $125.06.

Read our full, actionable report on Avis Budget Group here, it’s free.