Shares of Avis Budget Group (NASDAQ:CAR) gained 18.5% in January, according to data from S&P Global Market Intelligence. After posting big sell-offs in 2018's final quarter, the stock rebounded thanks to momentum in the broader market and news about evolving connected-car functionality for the company's vehicle fleet.
Avis Budget Group's stock fell 31.5% across 2018's final quarter, pushing its share price to a two-year low at the end of last year. The stock ended 2018 off more than 50% from its 52-week high, and it looks like the big sell-offs primed shares for a rebound as investors became more confident in the overall market.
Avis published a press release on Jan. 7 detailing its move to expand its partnership with Continental to add the company's key-as-a-service technology to 50,000 vehicles across its European and U.S. fleets. Improving feature sets among its vehicles and tailoring offerings to shifting consumer tastes are important parts of the company's growth strategy, but it seems like momentum in the broader market was the biggest factor in last month's stock gains.
Avis Budget Group stock has continued to climb in February, with shares trading up roughly 3.6% in the month so far after Goldman Sachs updated its rating on the company from a sell to a buy and issued a $35 price target.
Avis is scheduled to report fourth-quarter earnings after market close on Feb. 20. Shares trade at roughly 7.5 times this year's expected earnings.