Avis Budget Group Inc ( CAR ) shares are dipping on Friday. The stock is pulling back even as airport delays tied to the partial government shutdown drive more travelers toward rental cars. Here’s what you should know.

Avis Budget Gr stock is holding steady today. Where is CAR stock headed?

Airport Chaos Creates Rental‑Car Demand

Travelers across the U.S. are facing hours‑long security lines as reduced TSA staffing slows airport operations, according to Bloomberg. With air travel becoming increasingly unreliable, investors are betting that more people will choose to drive and rent cars rather than risk missing flights.

"As check‑in lines grow at airports, car rental companies should see a bump as travelers look for alternatives to air travel," stated Dec Mullarkey, managing director at SLC Management.

The partial shutdown has left TSA checkpoints understaffed, creating bottlenecks that have stretched security lines for hours. With reliability deteriorating, more travelers are choosing to rent cars for trips they would normally fly, giving rental‑car companies a lift.

Gains May Be Temporary, But Bookings Stick

Mullarkey cautioned that the rally could fade if TSA funding is restored and airport delays ease. Still, he noted that reservations made during the disruption are unlikely to be canceled, meaning rental‑car companies will keep that revenue even if conditions improve.

Political Tensions Add Pressure To The Stock

The political backdrop is also adding uncertainty for travel‑related names. Homeland Security Secretary Markwayne Mullin praised President Donald Trump's move to ensure TSA employees are paid during the shutdown, but his comments underscored how deep the disruption has become as the standoff enters day 41.

Mullin blamed Democrats for the prolonged shutdown and noted that workers across multiple DHS agencies remain unpaid — a reminder that airport operations could stay unstable even with temporary funding for TSA.

Technical Analysis

Avis Budget ( CAR ) is trading 34.3% above its 20-day SMA and 14% above its 100-day SMA, showing strong short- and intermediate-term upside extension even as the longer-term trend is still being repaired. Shares are up 84.70% over the past 12 months and are currently positioned closer to their 52-week highs than lows.

The RSI is at 77.87, which is firmly overbought and often signals elevated pullback risk if buyers cool off. Meanwhile, MACD is bullish with the MACD line at 3.7383 above the signal line at -0.9407, reinforcing that upside momentum is still in control.

The combination of overbought RSI (above 70) and bullish MACD suggests mixed momentum, where trend strength remains positive but the stock is stretched.

Key Resistance: $139.00

Key Support: $112.50

Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $128.50. Recent analyst moves include:

Morgan Stanley: Equal-Weight (Lowers Target to $97.00) (Mar. 6)

Barclays: Equal-Weight (Lowers Target to $95.00) (Feb. 26)

Morgan Stanley: Downgraded to Equal-Weight (Raises Target to $142.00) (Dec. 8, 2025)

Benzinga Edge Rankings: The Benzinga Edge scorecard for Avis Budget ( CAR ) highlights its strengths and weaknesses compared to the broader market.

Momentum: Bullish (Score: 83.37) — The stock is outperforming the broader market on a trend/momentum basis, which can keep dip-buyers active.

The Verdict: Avis Budget’s Benzinga Edge signal reveals a momentum-driven story, with the scorecard heavily centered on trend strength. With RSI already overbought, the cleaner setup for bulls is holding above $112.50 support while working through $139.00 resistance without a sharp momentum fade.

CAR Price Action: Avis Budget ( CAR ) shares were down 2.71% at $135.80 at the time of publication on Friday, according to Benzinga Pro.

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