Avis Budget Group Inc. (NASDAQ:CAR) is one of the 10 Stocks With Effortless Gains.

Avis Budget soared to a nearly four-year high on Tuesday amid increased short interest for its stock, while investors placed bets on rental car stocks on expectations that they would benefit from the travel disruptions triggered by the tensions in the Middle East.

In intra-day trading, Avis Budget Group Inc. (NASDAQ:CAR) climbed to its highest price of $256.99 before paring gains to finish the session just up by 20.01 percent at $255.15 apiece.

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Avis Budget Group Inc. (NASDAQ:CAR) is a heavily shorted company, with at least 20 percent of its total float sold short, giving room for potential breakout rallies.

Last year, the company narrowed its net loss by 51 percent to $889 million from $1.82 billion in 2024. Revenues decreased by 1.6 percent to $11.6 billion from $11.79 billion year-on-year.

In the fourth quarter alone, Avis Budget Group Inc. (NASDAQ:CAR) incurred an attributable net loss of $747 million, or 61.8 percent lower than the $1.958 billion year-on-year. Revenues dipped 1.7 percent to $2.66 billion from $2.7 billion year-on-year.

While we acknowledge the potential of CAR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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