Shares of Avis Budget Group Inc. CAR, +8.28% shot up 7.3% in morning trading Friday, putting them on track for an eighth record close in the past month, and enough to pace the Dow Jones Transportation Average’s DJT, +0.76% gainers. The auto rental company’s stock has been by far the best performer among the Dow transports components over the past three months (up 92.4%), year to date (up 263.8%) and for the past year (up 335.3%), while the Dow transports has gained 0.9%, 16.8% and 24.2% over the same periods, respectively, and the Dow Jones Industrial Average DJIA, +0.11% has gained 1.0%, 13.6% and 22.3%. On a bright note for Avis, the government’s September employment report out earlier Friday showed “notable job gains” in the leisure and hospitality and transportation sectors. And analyst Michael Linenberg at Deutsche Bank said after a recent pullback, corporate airline bookings are “once again on the upswing” and are now approaching levels last seen in early July before the most recent surge in COVID-19 cases. Growth recreational and business travel can be a good sign for car rental companies.
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