Detailed Stock Report

Last Close33.47 (USD)2018 September 17NASDAQ Exchange

Avg Daily Vol1.8M

52-Week High50.88

Trailing PE7.0

Annual Div--

ROE155.4%

LTG Forecast15.3%

1-Mo Return-4.2%

Market Cap2.7B

52-Week Low29.94

Forward PE9.5

Dividend Yield--

Annual Rev9.1B

Inst Own>100%

3-Mo Return-18.9%

AVERAGE SCORE

NEUTRAL OUTLOOK: CAR's current score isrelatively in-line with the market.

Score Averages

Passenger Transport. Svcs. Group: 7.4 Mid Market Cap: 6.0Transportation Sector: 6.6 S&P 500 Index: 6.8

Positive

Neutral

Negative

Average Score Trend (4-Week Moving Avg)

2015-09 2016-09 2017-09 2018-09

Peers -6M -3M -1M -1W Current 1Y Trend

SAVE 4 6 8 8 8

CAR 4 3 7 6 7

HRI 6 8 6 6 6

HTZ 3 3 5 5 5

EHIC 3 3 3 2 2

HIGHLIGHTS THOMSON REUTERS I/B/E/S MEAN- The score for Avis Budget Group Inc reached 7 this week, its

best value over the past year.

- The recent change in the Average Score was primarily due toan improvement in the Price Momentum component score.

Buy Mean recommendation from all analysts coveringthe company on a standardized 5-point scale.9 Analysts

Sell Reduce Hold Buy StrongBuy

PRICE AND VOLUME CHARTS1-Year Return: -4.7% 5-Year Return: 9.3%

BUSINESS SUMMARYAvis Budget Group Inc. is a provider of vehicle rental and car sharing services. The Company operates three brands, which include Avis, Budget andZipcar. Avis and Budget are rental car suppliers. It also owns Payless, which is a car rental brand; Apex, which is a car rental brand in New Zealandand Australia; Maggiore, a vehicle rental brand in Italy, and France Cars, which operates light commercial vehicle fleets in France. The Companyoperates in two segments: Americas and International. The Americas segment provides and licenses the Company's brands to third parties for vehiclerentals and ancillary products and services in North America, South America, Central America and the Caribbean, and operates its car sharingbusiness in certain of these markets. The International segment provides and licenses the Company's brands to third parties for vehicle rentals andancillary products and services in Europe, the Middle East, Africa, Asia, Australia and New Zealand.

AVIS BUDGET GROUP INC (CAR-O)Transportation / Passenger Transport. Svcs. / Passenger Transp. Grnd & Sea

STOCKREPORTS+DETAILED STOCK REPORT

Report Date: 2018 September 18

Page 1 of 12© 2018 Thomson Reuters. All rights reserved.

INDICATOR COMPONENTS

The AVERAGE SCORE combines the quantitative analysis of six widely-used investment decision making tools: Earnings,Fundamental, Relative Valuation, Risk, Price Momentum and Insider Trading. A simple average of the underlying component ratings isnormally distributed to rank stocks on a 1-10 scale (10 being awarded to the most favorable). These factors may be evaluated differentlyusing alternative methodologies and the importance of individual factors varies across industries, market capitalization and investmentstyles. Additional criteria should always be used to evaluate a stock.

Earnings Fundamental Relative Valuation Risk Price Momentum Insider Trading

OPTIMIZED SCORE

Historically, companies with an optimized scoreof 5 have tended to perform in-line with themarket over the following 12-month period.

As an alternative approach to equally weighting each of the six factors, independentresearch firm, Verus Analytics, conducted a backtest to empirically determine theoptimal factor blend. Results and weighting vary across four different marketcapitalization categories. For large cap stocks, price momentum and insider tradinghistorically provided the most explanatory power among the six factors and areweighted heavily in the current optimized score. Among the small cap universe, theearnings and fundamental factors joined with insider trading and price momentum toexplain returns.

PEER ANALYSIS Currency in USD

PRICE MOMENTUM VALUATION FUNDAMENTAL ANALYSTS

AverageScore Ticker

Price(2018-09-17)

1-MoReturn

3-MoReturn

1-YrReturn

MarketCap

TrailingPE

ForwardPE

DividendYield

NetMargin

LTGForecast

I/B/E/SMean

# ofAnalysts

10 DAL 57.96 4.2% 5.0% 20.1% 40.0B 12.4 9.8 2.4% 7.7% 16.4% Buy 17

9 JBLU 19.64 4.5% 2.3% 1.3% 6.0B 7.8 13.3 -- 11.3% 12.9% Hold 16

NR LTM 9.55 -0.5% -17.8% -30.5% 5.0B 28.9 18.0 0.8% 2.2% 53.8% Hold 16

8 SAVE 49.27 10.2% 24.4% 46.2% 3.4B 12.3 13.4 -- 9.5% 5.2% Buy 15

10 SKYW 60.40 -1.1% 5.6% 51.8% 3.2B 6.8 11.6 0.7% 14.7% 17.9% Buy 6

NR CEA 30.07 6.3% -29.7% 17.3% 2.7B 9.2 -- 1.3% 3.9% -- -- --

7 CAR 33.47 -4.2% -18.9% -4.7% 2.7B 7.0 9.5 -- 4.5% 15.3% Buy 9

5 HTZ 18.66 -10.7% 6.0% -9.3% 1.6B 3.0 -- -- 4.9% -- Hold 9

6 HRI 50.55 -1.4% -13.7% 12.6% 1.5B 6.7 35.8 -- 11.6% -- Buy 7

NR GSH 20.85 -8.3% -26.5% -25.6% 603M 1043.0 613.2 3.0% 6.0% -- -- --

2 EHIC 10.75 -15.8% -19.9% 7.9% 373M 42.2 22.3 -- 4.5% -- Buy 2

7.1 Average 32.83 -1.5% -7.6% 7.9% 6.1B 107.2 83.0 1.6% 7.3% 20.3% Buy 10.8

PEER COMPANIESDAL Delta Air Lines Inc CEA China Eastern Airlines CorpJBLU JetBlue Airways Corp HTZ Hertz Global Holdings IncLTM LATAM Airlines Group HRI Herc Holdings IncSAVE Spirit Airlines Inc GSH Guangshen Railway CoSKYW SkyWest Inc EHIC eHi Car Services





EARNINGS

POSITIVE OUTLOOK: Strong earnings withrecent analyst upgrades or a history ofsurpassing consensus estimates.

Currency in USD

Earnings Score Averages


Positive

Neutral

Negative

Earnings Score Trend (4-Week Moving Avg)

2015-09 2016-09 2017-09 2018-09


CAR 1 1 9 10 10

SAVE 7 10 10 10 10

HTZ 5 1 4 8 8

HRI 4 9 9 10 7

EHIC 4 2 3 2 2

EARNINGS INDICATORSEarnings Surprises

(33.3% weight)Estimate Revisions

(33.3% weight)Recommendation Changes

(33.3% weight)

SAVE

CARHRI

HTZEHIC

HTZCARSAVE

EHICHRI

CARHRISAVE

EHICHTZ

Last 4 Quarters Last 4 Weeks Last 120 Days

# Positive Surprises (> 2%) 2 # Up Revisions 2 # Broker Upgrades 1# Negative Surprises (< -2%) 0 # Down Revisions 1 # Broker Downgrades 0# In-Line Surprises (within 2%) 2 Avg Up Revisions 22.2%Avg Surprise 19.8% Avg Down Revisions -11.1%

HIGHLIGHTS PRICE TARGET- Avis Budget Group Inc currently has an Earnings Rating of 10, which is

significantly more bullish than the Passenger Transp Grnd & Seaindustry average of 6.8. CAR scores a bullish 7 or greater for all threecomponent ratings.

- Over the past 4 quarters, the company has reported 2 positive, 0negative, and 2 in-line surprises. The average surprise for this timeperiod has been 19.8%. Most recently on 2018-08-07, the companyreported quarterly earnings of 0.57 per share, relatively in-line with theconsensus of 0.57.

- CAR's current quarter consensus estimate has remained relativelyunchanged over the past 90 days at 3.52. Estimates within its industryhave moved an average of 6.0% during the same time period.

The chart indicates where analysts predict the stock price will be withinthe next 12 months, as compared to the current price.

60.00

54.00

48.00

42.00

36.00

30.00Current Price

(USD)Price Target

33.47

MEAN

HIGH

LOW

12-Month Price Target

Mean (USD) 46.00High 60.00Low 30.00Target vs. Current 37.4%# of Analysts 7





EARNINGS PER SHARE

Earnings per share (EPS) is calculatedby dividing a company's earnings by thenumber of shares outstanding. Analyststend to interpret a pattern of increasingearnings as a sign of strength and flator falling earnings as a sign ofweakness.

The charts provide a comparisonbetween a company's actual andestimated EPS, including the high andlow forecasts.

4.000

3.000

2.000

1.000

0.000

-1.00017-09 17-12 18-03 18-06 18-09 18-12

Actuals Estimates

3.100

0.450

-0.740

0.570

MEANHIGH

LOW

Quarterly 18-09 18-12Mean 3.515 0.194High 3.611 0.380Low 3.380 0.010# of Analysts 9 9

4.800

4.400

4.000

3.600

3.200

2.8002016 2017 2018 2019

Actuals Estimates

2.930 2.850

MEAN

HIGH

LOW

Annual 2018 2019Mean 3.518 3.871High 3.800 4.430Low 3.320 3.510# of Analysts 9 9

MEAN ESTIMATE TREND ANALYST RECOMMENDATIONSQ

18-09Q

18-12Y

2018Y

2019Price

TargetCurrent 3.515 0.194 3.518 3.871 46.0030 Days Ago 3.520 0.237 3.574 3.898 47.1090 Days Ago 3.553 0.217 3.596 3.985 51.00% Change (90 Days) -1.1% -10.6% -2.2% -2.9% -9.8%

Current Fiscal Year End: 18-12Next Expected Report Date: 2018-11-05

Thomson Reuters I/B/E/S Mean: Buy (9 Analysts)

Strong Buy

Buy

Hold

Reduce

Sell

2

4

1

2

0

EARNINGS SURPRISESComparing a company's actual earnings to the mean expectation ofanalysts results in a difference referred to as a 'positive' or 'negative'surprise. Research has shown that when a company reports asurprise, it is often followed by more of the same surprise type.

Surprise Detail (Last 6 Periods)

SurpriseType

AnnounceDate

Period EndDate

ActualEPS

MeanEPS

Surprise(%)

In-Line 2018-08-07 2018-06-30 0.570 0.570 0.0%Positive 2018-05-02 2018-03-31 -0.740 -1.019 27.4%Positive 2018-02-21 2017-12-31 0.450 0.215 109.3%In-Line 2017-11-06 2017-09-30 3.100 3.041 1.9%Negative 2017-08-07 2017-06-30 0.300 0.523 -42.6%Negative 2017-05-03 2017-03-31 -0.940 -0.521 -80.4%

Surprise Summary (Last 12 Quarters)

Surprise Type Amount PercentPositive Quarters (> 2%) 4 33.3%Negative Quarters (< -2%) 5 41.7%In-Line Quarters (within 2%) 3 25.0%

ANNUAL REVENUEA pattern of increasing sales inconjunction with a rising EPS mayinfluence a buy recommendation, whileflat or falling sales and falteringearnings may explain a sellrecommendation. A rising EPS with flator falling sales may result fromincreased cost efficiency and margins,rather than market expansion. Thischart shows the sales forecast trend ofall analysts and the highest and lowestprojections for the current and nextfiscal year.

9.6B

9.4B

9.2B

9.0B

8.8B

8.6B2016 2017 2018 2019

Actuals Estimates

8.7B

8.8B

MEAN

HIGH

LOW

2018 2019Mean 9.2B 9.4BHigh 9.3B 9.6BLow 9.1B 9.3BForecasted Growth 3.6% 6.4%# of Analysts 8 8





FUNDAMENTAL

NEUTRAL OUTLOOK: Fundamentals relativelyin-line with the market.

Fundamental Score Averages


Positive

Neutral

Negative

Fundamental Score Trend

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q22016 2017

PeersQ3

2017Q4

2017Q1

2018Q2

2018 Current 3Y Trend

SAVE 2 6 1 1 5

CAR 6 5 2 2 4

HRI 1 8 2 2 4

EHIC 4 6 NR NR 3

HTZ 2 4 2 2 3

FUNDAMENTAL INDICATORSProfitability(25% weight)

Debt(25% weight)

Earnings Quality(25% weight)

Dividend(25% weight)

HRI

EHICHTZCARSAVE

SAVE

CAREHICHTZHRI

CARHTZSAVEEHICHRI

CAREHICHRIHTZSAVE

Revenue Growth 5.3%For year over yearending 2018-06Gross Margin 12.3%For latest 12 monthsending 2018-06Return On Equity 155.4%For interim periodending 2018-06Net Margin 4.5%For latest 12 monthsending 2018-06

Current Ratio 1.2For interim periodending 2018-06Debt-to-Capital 95.7%For annual periodending 2017-12Interest Funding 26.2%For interim periodending 2018-03Interest Coverage 1.3For interim periodending 2018-06

Oper. Cash Yield 551.0%For latest 12 monthsending 2018-06Accruals -0.7%For latest 12 monthsending 2017-12Days Sales In Inv. --For annual periodending --Days Sales In Rec. 35.7For annual periodending 2017-12

Dividend Growth --For year over yearending --Dividend Payout --For latest 12 monthsending --Dividend Coverage --For annual periodending --Current Div. Yield --For latest 12 monthsending --

HIGHLIGHTS- The Fundamental Rating for Avis Budget Group Inc improved

significantly over the last quarter from 2 to 4. The averageFundamental Rating for its Passenger Transp. Grnd & Sea industry is3.5 and the S&P 500 index average is 6.0.

- The return on equity of 155.4% for CAR is the highest within itsPassenger Transp. Grnd & Sea industry.

- The debt-to-capital of 95.7% for CAR is the highest within itsPassenger Transp. Grnd & Sea industry.

- The operating cash yield for CAR is the highest within its PassengerTransp. Grnd & Sea industry.

- Avis Budget Group Inc does not currently pay a dividend. Of 5 firmswithin the Passenger Transp. Grnd & Sea industry, it is among the 4companies without a dividend.





RELATIVE VALUATION

POSITIVE OUTLOOK: Multiples significantlybelow the market or the stock's historic norms.

Relative Valuation Score Averages


Positive

Neutral

Negative

Relative Valuation Score Trend (4-Week Moving Avg)

2015-09 2016-09 2017-09 2018-09


CAR 5 10 10 10 10

HTZ 8 8 8 8 8

HRI 6 9 7 8 7

SAVE 5 6 5 5 5

EHIC 1 2 2 2 4

RELATIVE VALUATION INDICATORSForward PEG

(50% weight)Trailing PE(25% weight)

Forward PE(25% weight)

CAR

SAVE

EHICHRIHTZ

CARHRIHTZSAVE

EHIC

CAR

SAVEEHIC

HRI

HTZ

Forward PEG 0.6

5-Yr Average 1.1

Rel. to 5-Yr Avg. 42% Discount

S&P 500 Index 1.1

Rel. to S&P 500 44% Discount

Trailing PE 7.0

5-Yr Average 29.6


S&P 500 Index 23.9


Forward PE 9.5

5-Yr Average 13.1


S&P 500 Index 17.4


HIGHLIGHTS- Avis Budget Group Inc currently has a Relative Valuation Rating of 10

which is significantly above the S&P 500 index average rating of 5.3.- CAR's Trailing P/E, Forward P/E, and Forward PEG multiples are all

significantly below (less expensive than) their 5-year averages.- Based on Forward PEG, CAR currently trades at a 56% Discount to its

Passenger Transp Grnd & Sea industry peers. On average, thecompany has traded at a 36% Discount over the past five years.

- Based on Trailing P/E, CAR currently trades at a 18% Premium to itsPassenger Transp Grnd & Sea industry peers. On average, thecompany has traded at a >100% Premium over the past five years.

- Based on Forward P/E, CAR currently trades at a 56% Discount to itsPassenger Transp Grnd & Sea industry peers. On average, thecompany has traded at a 58% Discount over the past five years.





PRICE TO SALESThe most recent week's close price divided by the revenue per share.

Price to Sales: 0.35-Year Average: 0.5

S&P 500 Index Average: 2.1Passenger Transp. Grnd & Sea Industry Average: 0.3

0.200.300.400.500.600.700.800.901.001.101.20

20182017201620152014

5-Yr Average

TRAILING PEThe most recent week's close price divided by the sum of the four mostrecently reported quarterly earnings.

Trailing PE: 7.05-Year Average: 29.6


05

1015202530354045

>50

20182017201620152014

5-Yr Average

FORWARD PEThe most recent week's close price divided by the sum of the fourupcoming quarterly consensus estimates.

Forward PE: 9.55-Year Average: 13.1


68

101214161820222426

20182017201620152014

5-Yr Average

FORWARD PEGThe Forward P/E divided by the five-year forecasted growth rate.

Forward PEG: 0.65-Year Average: 1.1


0.00.51.01.52.02.53.03.54.04.5

>5.0

20182017201620152014

5-Yr Average





RISK

NEUTRAL OUTLOOK: Moderate risk (mediumvolatility).

Risk Score Averages


Positive

Neutral

Negative

Risk Score Trend (4-Week Moving Avg)

2015-09 2016-09 2017-09 2018-09


SAVE 4 6 7 7 7

HRI 6 6 6 6 6

CAR 5 5 5 5 5

EHIC 6 6 5 5 4

HTZ 2 2 2 2 2

RISK INDICATORSMagnitude of Returns

(25% weight)Volatility

(25% weight)Beta (1-year)(25% weight)

Correlation(25% weight)

SAVEEHICHRI

CARHTZ

SAVEEHICHRICAR

HTZ

SAVE

EHICHTZCARHRI

HRICAR

SAVEHTZ

EHIC

Daily Returns (Last 90 Days)Best 8.3%Worst -15.2%Monthly Returns (Last 60 Months)Best 27.1%Worst -28.7%

Standard DeviationLast 90 Days 3.39Last 60 Months 12.67Intra-Day Swing (Last 90 Days)Average 3.9%Largest 13.1%

Beta vs. S&P 500 1.39Positive Days Only 0.52Negative Days Only 1.04Beta vs. Group 1.69Positive Days Only 1.28Negative Days Only 2.61

Correlation vs. S&P 500Last 90 Days 30%Last 60 Months 44%Correlation vs. GroupLast 90 Days 62%Last 60 Months 59%

HIGHLIGHTS- Avis Budget Group Inc currently has a Risk Rating of 5, which

is significantly below the S&P 500 index average rating of 8.1.- On days when the market is up, CAR tends to lag the S&P 500

index. On days when the market is down, the stock generallyperforms in-line with the index.

- In the short term, CAR has shown average correlation (>= 0.2and < 0.4) with the S&P 500 index. The stock has, however,shown high correlation (>= 0.4) with the market in the longterm.

- Over the last 90 days, CAR shares have been more volatilethan the overall market, as the stock's daily price fluctuationshave exceeded that of 99% of S&P 500 index firms.

RISK ANALYSISLast 90 Days Last 60 Months

Peers

BestDaily

Return

WorstDaily

Return

#Days

Up

#Days

Down

LargestIntra-Day

Swing

BestMonthlyReturn

WorstMonthlyReturn

CAR 8.3% -15.2% 39 25 13.1% 27.1% -28.7%

EHIC 7.0% -8.7% 20 35 15.2% 43.5% -32.0%

HRI 4.1% -8.9% 33 31 12.1% 32.1% -37.4%

HTZ 24.6% -11.7% 32 31 18.2% 59.0% -38.1%

SAVE 10.2% -5.9% 39 25 7.3% 25.9% -24.8%

S&P 500 0.9% -1.4% 37 26 1.7% 8.3% -6.3%





PRICE MOMENTUM

NEUTRAL OUTLOOK: Performance relativelyin-line with the market.

Currency in USD

Price Momentum Score Averages


Positive

Neutral

Negative

Price Momentum Score Trend (4-Week Moving Avg)

2015-09 2016-09 2017-09 2018-09


SAVE 6 4 9 10 10

HTZ 2 5 9 7 7

CAR 9 5 5 3 5

HRI 8 6 3 3 5

EHIC 7 9 7 4 3

PRICE MOMENTUM INDICATORSRelative Strength

(70% weight)Seasonality(30% weight)

SAVE

HTZCAR

HRIEHIC

EHICSAVEHTZHRI

CAR

Relative Strength Indicator (Scale from 1 to 100)CAR Industry Avg

Last 1 Month 49 38Last 3 Months 46 43Last 6 Months 48 46

Average Monthly Return (Last 10 Years)SEP OCT NOV

Company Avg 0.1% -2.7% 2.1%Industry Avg 2.0% 5.0% -2.2%Industry Rank 10 of 121 2 of 122 117 of 122

PRICE PERFORMANCEDaily close prices are used to calculate theperformance of the stock as compared to arelevant index over five time periods.

CAR

S&P Mid

1-Week

1-Month

3-Month

YTD

1-Year

3.2%-0.2%

-4.2%0.9%

-18.9%1.8%

-23.7%6.7%

-4.7%15.7%

CAR S&P MidClose Price (2018-09-17) 33.47 2,02852-Week High 50.88 2,05052-Week Low 29.94 1,762

- On 2018-09-17, CAR closed at 33.47, 34.2% below its 52-week high and 11.8% above its 52-week low.

- CAR shares are currently trading 0.2% above their 50-daymoving average of 33.39, and 18.8% below their 200-daymoving average of 41.22.

- The S&P MIDCAP 400 index is currently 1.1% below its 52-week high and 15.2% above its 52-week low.





INSIDER TRADING

NEGATIVE OUTLOOK: Recent or longer-termtrend of selling by company insiders.

Currency in USD

Insider Trading Score Averages


Positive

Neutral

Negative

Insider Trading Score Trend (4-Week Moving Avg)

2015-09 2016-09 2017-09 2018-09


HRI 5 5 5 5 5

HTZ 6 7 5 5 5

SAVE 3 4 4 4 4

CAR 5 3 5 3 3

EHIC NR NR NR NR NR

INSIDER TRADING INDICATORSShort-Term Insider

(70% weight)Long-Term Insider

(30% weight)

SAVE

CAR

EHICHRIHTZ

CARHRIHTZSAVE

EHIC

Most Recent Buys and Sells (Last 90 Days)Insider Name Role Tran Date Tran Type SharesColeman, Leonard S Jr D 2018-08-17 S 13,000

Insider Summary (Last 6 Months)Total Shares Acquired 160,000Total Shares Disposed 39,118Net Shares 120,882Sector Average -60,804

HIGHLIGHTS- Avis Budget Group Inc currently has an Insider Trading Rating of 3,

while the Passenger Transp. Grnd & Sea industry average is 4.33.

- Since the beginning of the current quarter, sales by Avis Budget GroupInc executives have totaled $450,190. Over the past five years, theaverage sell total for Q3 has been $3,559,693.

MONTHLY BUYS AND SELLS

0

O N D J F M A M J J A S

BUYS

SELLS

20

20

40

40

$ Market Value (Millions)

Excludesderivativeand optionexercises

TOP INSTITUTIONAL HOLDERS

Institution NameInst.Type

%O/S

SharesHeld

ReportedDate

SRS Investment Inv Mgmt 15.2% 12.0M 2018-06-30The Vanguard Group Inc Inv Mgmt 9.9% 7.83M 2018-06-30BlackRock Institutional Inv Mgmt 9.8% 7.74M 2018-06-30Nomura Securities Co Brokerage 5.1% 4.04M 2018-06-30Glenview Capital Inv Mgmt 4.9% 3.86M 2018-06-30

Updated daily as of 2018-09-17

TOP EXECUTIVE HOLDERS

Insider Name RoleDirect

Shares ValueReportedDate

Nelson, Ronald L OD 0.50M 17.0M 2018-03-16De Shon, Larry D CEO 0.24M 8.32M 2018-03-01Wyshner, David B P 0.17M 5.72M 2017-03-01Mestre, Eduardo G D 99,940 3.40M 2018-08-09Deaver, W. Scott Scott O 85,674 2.92M 2017-12-08

Updated monthly as of 2018-09-16





DETAILED STOCK REPORT TIPS

The Thomson Reuters Stock Report is a comprehensive, company-specific analysis that includes a proprietary Stock Rating along with underlying component indicators and supportive data elements. The report is updated daily, although some of the data elements and the ratings are updated weekly.

Average Score The Average Score combines a quantitative analysis of six widely-used investment decision making tools - Earnings, Fundamental, Relative Valuation, Risk, Price Momentum, and Insider Trading. First, a simple average of the six underlying component ratings is calculated. Then, a normal distribution is used to rank each stock across the market on a scale of 1 to 10, with 10 being most favorable. A score of 8 to 10 is considered positive, 4 to 7 is neutral, and 1 to 3 is negative. These six factors may be evaluated differently using alternative methodologies, and the importance of individual factors varies across groups, market capitalization and investment styles. Additional criteria should always be used to evaluate a stock.

A company must have sufficient data available for at least four of the six component indicators in order to receive an overall Average Score. Approximately 85% of the stocks within the coverage universe meet the criteria to generate a score.

Optimized Score As an alternative to the average score, the Stock Report includes an Optimized Score generated by independent research firm, Verus Analytics. It uses the same six component ratings, but rather than equally weighting each of the factors, the weighting varies by market capitalization of the underlying security based on backtesting research. These scores are also updated weekly and distributed normally on a 1 to 10 scale, with 10 being best. The variable size is assigned monthly by ranking the market capitalization and assigning the appropriate category as follows:

Large - Top 5.55% Mid - Next 13.87% Small - Next 34.68% Micro - Remaining 45.9%

Indicator Components The six indicators that comprise the stock rating are displayed. Like the stock rating, the component rating scale is 1 to 10, with 10 being best. A company will receive an ‘NR’ for No Rating if the required data elements or criteria are not met. A detailed section for each component is included in the report.

Indicator Trends Within each component section, historical score trends are displayed, typically using a 4-week moving average over a timeframe of the past three years. The dotted orange line indicates the average of the scores over those three years. The most recent occurrences of the best and worst scores are also displayed on the chart in grey boxes to put the current score into historical context.

Next to the trend chart for the company, current score averages are included, along with peer company comparisons of values from 6 months ago, 3 months ago, 1 month ago, the most recent value from 1 week ago, and the current score. The four closest industry peers are presented based on similar market capitalization.

Peer Analysis ● The Thomson Reuters Business Classification (TRBC) system is used for

industry comparisons. It is designed to track and display the primary business of a corporation by grouping together correlated companies that offer products and services into similar end markets. The system includes 10 Economic Sectors, 28 Business Sectors, 54 Industry Groups, and 136 Industries.

● The Peer Analysis section of the report compares the company to its ten closest peers. The peers are selected from the industry based on similar market capitalization. The peer listing may have fewer than ten companies if there are fewer than ten companies classified within that industry.

Highlights The Thomson Reuters proprietary automated text-generation system creates highlights summarizing the most noteworthy data. The bullets will vary by company and will change from week to week as different criteria are met.

Earnings The Earnings Rating is based on a combination of three factors: earnings surprises, estimate revisions, and recommendation changes. Each factor is equally weighted. Then, equal deciles are used to rank each stock across the market on a scale of 1 to 10, with 10 being most favorable. A stock needs to have at least two of the three earnings factors in order to receive a score.

● Earnings Surprises - The number of positive and negative surprises within the last 4 quarters.

● Estimate Revisions - The number of up and down revisions and the average percentage change of those revisions within a 4 week period.

● Recommendation Changes - The number of broker upgrades and downgrades in the last 120 days.

Price Target The price target is based on the predictions of analysts covering the stock and shows the high, low and mean price expected within the next 12 months.

Earnings Per Share The quarterly and annual earnings per share are presented when available, along with the mean, high and low. Quarterly data is displayed for the past 4 quarters (actual) and the next 2 quarters (estimated). Annual data is displayed for the past 2 years (actual) and the next 2 years (estimated).

Mean Estimate Trend The mean estimates show how the consensus has changed over the past 30 days and 90 days for the upcoming two quarters and two years. The percentage change is calculated for the company as a means for comparison by measuring the difference between the current consensus estimate and that of 90 days ago.

Analyst Recommendations The I/B/E/S Mean is the average recommendation of all analysts covering the stock, as provided by Thomson Reuters I/B/E/S (Institutional Brokers Estimate System). The recommendations are presented on a five-point standardized scale: strong buy, buy, hold, reduce, and sell.

Earnings Surprises ● The surprise summary includes the total number of quarters (and percentage) in

the past 12 quarters in which earnings surprises were positive, negative, or in-line. In order to be recognized as a positive or negative surprise, the percent must be greater than 2% above or 2% below the consensus, respectively.

● The surprise detail section includes a listing of the company's quarterly earnings reported for the most recent 6 quarters. The consensus analyst estimate is provided to determine if the actual earnings report represented a positive surprise, negative surprise, or in-line result.

Fundamental The Fundamental Rating is based on a combination of four factors: profitability, debt, earnings quality, and dividend. Companies that do not pay a dividend are not penalized. Each factor is equally weighted. Then, equal deciles are used to rank each stock across the market on a scale of 1 to 10, with 10 being most favorable. A stock needs to have at least two of the four fundamental factors present for a given fiscal quarter in order to receive a score.

● Profitability is comprised of four data elements. - Revenue Growth: (Net Sales – Previous Net Sales) / Previous Net Sales - Gross Margin: Gross Profit / Net Sales - Return on Equity: Net Income / Total Equity - Net Margin: Net Profit / Net Sales

● Debt is comprised of four data elements.- Current Ratio: Current Assets / Current Liabilities - Debt-to-Capital: Total Debt / Total Capital - Interest Funding: (Interest Expense on Debt + Preferred Cash Dividends) /

Funds from Operations - Interest Coverage: Earnings before Interest and Taxes / (Interest Expense on

Debt + Preferred Cash Dividends) ● Earnings Quality is comprised of four data elements.

- Operating Cash Yield: (Operating Cash Flow – Net Income) / Net Income - Accruals: (Net Income – Operating Cash Flow – Investing Cash Flow) /

Average Net Operating Assets - Days Sales in Inventory: 365 / (Cost of Goods Sold / Inventory) - Days Sales in Receivables: 365 / (Net Sales / Receivables)

● Dividend is comprised of four data elements. The company must have a current dividend yield. - Dividend Growth Rate: (Dividends per Share – Previous Dividends per Share)

/ Previous Dividends per Share - Dividend Payout: Dividends per Share / Earnings per Share - Dividend Coverage: Funds from Operations / Cash Dividends - Dividend Yield: Annual Dividends per Share / Current Market Price per Share

Indicator Trend The fundamental indicator trend displays quarterly scores over the past three years. The best and worst scores over that timeframe can be easily determined from the values shown on the chart for each quarter.





Relative Valuation The Relative Valuation Rating is based on a combination of three factors: Forward PEG (50% weight), Trailing P/E (25% weight), and Forward P/E (25% weight). After the weightings are considered to combine individual factors, equal deciles are used to rank each stock across the market on a scale of 1 to 10, with 10 being most favorable. These common valuation metrics are evaluated against the overall market, the index, and the company's own historic 5-year averages. A stock needs to have at least one of the three relative valuation factors in order to receive a score.

● Trailing P/E: Close Price / Most Recent 4 Quarters of Earnings ● Forward P/E: Close Price/ Upcoming 4 Quarters of Earnings● Forward PEG: Forward P/E / Long-Term Forecasted Growth Rate

Valuation Averages Negative values are excluded when calculating the averages. A maximum value of 100 is placed on Trailing P/E and Forward P/E, a maximum value of 5 is placed on Forward PEG, and a maximum value of 20 is placed on Price to Sales when calculating the averages. Higher values are rounded down to the maximum for the averages.

Valuation Multiples The valuation multiples provide the Trailing P/E, Forward P/E, Forward PEG, and Price to Sales for the company and the S&P 500 index average. In addition, a comparison of the current company’s values to its 5-year average and an industry average are presented. A discount occurs when the company’s ratio is valued more favorably (lower) than that to which it is compared.

Risk The Risk Rating displays stocks on a scale of 1 to 10 with 10 being awarded to the least risky stocks. It is derived by looking at a series of long-term (5-year) and short-term (90-day) stock performance measures including volatility, magnitude of returns, beta, and correlation. Each factor is equally weighted. Then, equal deciles are used to rank each stock across the market. A stock needs to have at least two of the four risk factors in order to receive a score.

● Magnitude of Returns – The best / worst daily returns in the past 90 days and the best / worst monthly returns in the past 60 months.

● Volatility – The standard deviation of the stock price over the last 90 days and last 60 months, along with the average and largest intra-day stock swing.

● Beta – Measures the tendency of a security’s returns to respond to swings in the market, based on the beta of the company versus the relevant index.

● Correlation – Determines how closely the returns of the stock and the relevant index move together, measured over the last 90 days and last 60 months.

Risk Analysis Price analysis for the company and the S&P 500 is provided over two time periods. Daily analysis is provided for the last 90 days, whereas monthly statistics are used for the last 60 months.

Price Momentum The Price Momentum Rating is based on a combination of two technical performance factors: relative strength (70% weight) and seasonality (30% weight). After the weightings are considered to combine individual factors, equal deciles are used to rank each stock across the market on a scale of 1 to 10, with 10 being most favorable. A stock needs to have data for the relative strength factor in order to receive a score.

● Relative Strength – The relative strength of the company for the last 1 month, 3 months, and 6 months on a scale of 1 to 100.

● Seasonality – The average monthly return (price performance) for the currentmonth and next 2 months for the company and industry, over the past 10 years. A lower industry rank indicates a higher return.

Price Performance Daily close prices are used to calculate the price performance of the stock. The performance of the S&P 500 is also displayed as a means of comparison.

Insider Trading The Insider Trading Rating is based on short-term (70% weight) and long-term (30% weight) legal insider trading behavior. After the weightings are considered to combine individual factors, a function similar to a normal distribution is used to rank each stock across the market on a scale of 1 to 10, with 10 being most favorable. A stock needs to have at least one of the two insider trading factors in order to receive a score.

● Short-Term Insider – Uses insider buy and sell transactions within the past 90 days. This factor is based on the Thomson Reuters quantitative insider trading model that considers the insider's role, consensus, number of shares, market capitalization of the company, and the historic stock performance following trades by the given insider.

● Long-Term Insider – Looks at buying, selling and option exercise decisions over the past six months relative to other stocks within the same business sector. The net shares are presented alongside the business sector average as a means of comparison.

Monthly Buys and Sells The total market value of open-market buying and selling is displayed by month in the chart for easy comparison. Transactions by trusts and corporations are excluded, along with buys greater than $10 million and sales greater than $50 million. Transactions for the exercise of derivatives and option exercises are excluded from the totals.

Institutional Holders The top five institutional holders of the company are listed in descending order, based on their total share holdings. Possible values for the institution type include Brokerage, Funds, Inv Mgmt, or Strategic.

Executive Holders The top five executive insiders of the company are listed in descending order, based on their total direct common share holdings (options are not considered). Indirect holdings are excluded, as the owner may not actually have investment discretion over these shares. This table is updated monthly. Insiders who have not filed any transactions or holdings over the past two years are excluded as this may indicate that the individual is no longer associated with the company. Additionally, direct shares held must be greater than 1,000 to be considered.

Insider Roles These role codes may appear in the data for recent insider buys and sells or top executive holders:

AF - Affiliate IA - Investment Advisor AI - Affiliate of Advisor MC - Member of Committee B - Beneficial Owner MD - Managing Director C - Controller O - Officer CB - Chairman OB - Officer / Beneficial Owner CEO - Chief Executive Officer OD - Officer / Director CFO - Chief Financial Officer OE - Other Executive CI - Chief Investment Officer OS - Officer of Subsidiary CO - Chief Operating Officer OT - Officer / Treasurer CT - Chief Technology Officer OX - Divisional Officer D - Director P - President DO - Director / Beneficial Owner R - Retired DS - Indirect Shareholder S - Secretary EC - Member of Exec Committee SH - Shareholder EVP - Exec Vice President SVP - Senior Vice President FO - Former T - Trustee GC - General Counsel UT - Unknown GP - General Partner VC - Vice Chairman H - Officer / Director / Owner VP - Vice President

DISCLAIMER

Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. All information in this report is assumed to be accurate to the best of our ability. Thomson Reuters is not liable for any errors or delays in Thomson Reuters content, or for any actions taken in reliance on such content.

Any forward-looking statements included in the Thomson Reuters content are based on certain assumptions and are subject to a number of risks and uncertainties that could cause actual results to differ materially from current expectations. There is no assurance that any forward-looking statements will materialize.

The content in this Thomson Reuters report does not constitute investment advice or a recommendation to buy or sell securities of any kind. Past performance is not a guarantee of future results. Investors should consider this report as only a single factor when making an investment decision.





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