Why Avis Budget Group Popped 11% Tuesday

Shares of Avis Budget Group (NASDAQ: CAR), one of the nation's largest vehicle rental companies, are jumping 11% higher Tuesday morning after a bear pulled its rating, investors digested a Hertz (NYSE: HTZ) bankruptcy, and the market cheered a potential vaccine for COVID-19.

Broader markets are rising after data showed U.S. consumer confidence moved higher in May, suggesting the worst of the COVID-19 impacts could be behind us and a gradual economic recovery could be ahead. That's obviously great news for Avis Budget Group, whose business relies largely on consumers traveling.

There were also a number of positive developments regarding the battle against COVID-19. Merck announced a list of efforts it was taking in the fight, including agreements to work on a vaccine and antiviral treatment. Novavax also began human testing of its coronavirus vaccine candidate and could have preliminary data as soon as July.

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Source Fool.com