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2400.0
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2023-07-26 00:00:00 UTC
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5 Broker-Favored Stocks to Watch as Q2 Earnings Start Strong
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AAL
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https://www.nasdaq.com/articles/5-broker-favored-stocks-to-watch-as-q2-earnings-start-strong
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nan
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nan
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Agreed that the Q2 earnings season is in its nascent stage with only a handful of companies having reported their financial numbers thus far but the start to the earnings season has been quite impressive. A high proportion of companies have reported better-than-expected earnings per share so far in Q2. An earnings beat generally leads to stock price appreciation.
The reassuring earnings picture apart, signs of easing inflation and the consequent improvement in the purchasing power of consumers are further tailwinds. Investors would like to take advantage of this rosy scenario and design their portfolios with appropriate stocks for high returns.
However, the task of designing one’s portfolio with potential winners is anything but an easy one. The task becomes even more difficult when one tries to select a winning portfolio without proper guidance.
With a plethora of stocks flooding the market at any point in time, it is highly likely that an investor ends up making a wrong choice while designing one’s portfolio. Moreover, time constraints make the task of making proper choices harder.
The choice of improper stocks can adversely impact returns, thereby ruining the very objective of investing one’s hard-earned money in the highly unpredictable stock market. In a bid to avoid such a scenario, investors usually rely on guidance from proper sources.
Broker Advice – The Way Forward
In the field of investing, brokers are deemed to be experts with thorough knowledge. Brokers, irrespective of their types (sell-side, buy-side or independent), have at their disposal a lot more information on a company and its prospects than individual investors.
To attain their objective, they go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations. Broker opinion should thus act as a valuable guide for investors while deciding their course of action (buy, sell or hold) on a particular stock.
Earnings Estimate Revisions – A Winning Pointer
Since brokers indulge in meticulous research, the question of their actions being arbitrary does not arise. The direction of the estimate revisions serves as an important pointer regarding the price of a stock. In fact, a rating upgrade normally leads to stock price appreciation and vice versa.
Given the expertise of brokers in investment matters, it is natural for investors to believe that there is a solid reason/logic behind their improving the recommendation on a particular stock. Estimates can move north for a number of reasons — favorable earnings performance, a bullish guidance, product launch or any favorable macro scenario.
To take care of the earnings performance, we have designed a screen based on improving analyst recommendations and upward estimate revisions over the last four weeks.
Revenues Performance Not to be Ignored
According to many market watchers, a revenue beat is more creditable for a company than a mere earnings outperformance. Therefore, one must take top-line performance into consideration as well while formulating a winning strategy. We have included in our screen the price/sales ratio, which serves as a strong complementary valuation metric.
Screening Criteria
# (Up- Down Rating)/ Total (4 weeks) =Top #75: This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks.
% change in Q (1) est. (4 weeks) = Top #10: This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter.
To ensure that the strategy is a winning one, covering all bases, we added the following screening parameters:
Price-to-Sales = Bot%10: The lower the ratio the better, companies meeting this criteria are in the bottom 10% of our universe of over 7,700 stocks with respect to this ratio.
Price greater than 5: A stock trading below $5 will not likely create significant interest for most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days: Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000: This gives us stocks that are the top 3000 if one judges by market capitalization.
Com/ADR/Canadian= Com: This eliminates the ADR and Canadian stocks.
Here are five of the 10 stocks that passed the screen test:
American Airlines AAL is based in Fort Worth, TX. The gradual increase in air travel demand (particularly for leisure) is aiding AAL. However, high operating costs are hurting the bottom line.
Over the past 60 days, the stock has seen the Zacks Consensus Estimate for 2023 earnings being revised 14.4% upward. AAL currently carries a Zacks Rank #3 (Hold).
The Greenbrier Companies GBX is a leading supplier of transportation equipment and services to the railroad and related industries. GBX’s manufacturing segment produces double-stack intermodal railcars, conventional railcars and marine vessels, and performs repair and refurbishment activities for both intermodal and conventional railcars.
GBX is also engaged in complementary leasing and services activities. Greenbrier Europe is an end-to-end freight railcar manufacturing, engineering and repair business with operations in Poland & Romania and serves customers across Europe and the Middle East. We are impressed by the company’s efforts to pay dividends even in the current uncertain scenario. GBX currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Brentwood, TN-based Delek US Holdings DK is an independent refiner, transporter and marketer of petroleum products. DK’s extensive downstream operations within the Permian Basin grant it a fairly significant competitive edge over its peers in the long term.
Delek US Holdings currently carries a Zacks Rank #3. DK surpassed the Zacks Consensus Estimate for earnings in three of the past four quarters (missing the mark in the other one).
CVR Energy CVI is an independent refiner and marketer of high-value transportation fuels. CVI is also a producer of ammonia and urea ammonia nitrate fertilizers. Its petroleum business includes a full-coking sour crude refinery in Coffeyville, KS. The company’s efforts to reward its shareholders underline its strong financial position. The robust Nitrogen Fertilizer unit supports growth.
CVR Energy, currently carrying a Zacks Rank #3, surpassed the Zacks Consensus Estimate in each of the past four quarters by an average of 23.75%. The Zacks Consensus Estimate for its current-year earnings has improved 5.82% over the past 60 days.
Brighthouse Financial BHF is one of the largest providers of annuity and life insurance products in the United States. A compelling suite of life and annuity products, strong market presence, exit from the transition service agreement and growing individual insurance and investment income should drive growth for this Zacks Rank #3 insurer.
The Zacks Consensus Estimate for current-year earnings has increased 28.91% from the year-ago actual earnings figure. The company surpassed the Zacks Consensus Estimate for earnings in two of the past four quarters (missing the mark in the other two).
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and backtest them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CVR Energy Inc. (CVI) : Free Stock Analysis Report
Delek US Holdings, Inc. (DK) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Greenbrier Companies, Inc. (The) (GBX) : Free Stock Analysis Report
Brighthouse Financial, Inc. (BHF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Here are five of the 10 stocks that passed the screen test: American Airlines AAL is based in Fort Worth, TX. The gradual increase in air travel demand (particularly for leisure) is aiding AAL. AAL currently carries a Zacks Rank #3 (Hold).
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Click to get this free report CVR Energy Inc. (CVI) : Free Stock Analysis Report Delek US Holdings, Inc. (DK) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Greenbrier Companies, Inc. (The) (GBX) : Free Stock Analysis Report Brighthouse Financial, Inc. (BHF) : Free Stock Analysis Report To read this article on Zacks.com click here. Here are five of the 10 stocks that passed the screen test: American Airlines AAL is based in Fort Worth, TX. The gradual increase in air travel demand (particularly for leisure) is aiding AAL.
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Click to get this free report CVR Energy Inc. (CVI) : Free Stock Analysis Report Delek US Holdings, Inc. (DK) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Greenbrier Companies, Inc. (The) (GBX) : Free Stock Analysis Report Brighthouse Financial, Inc. (BHF) : Free Stock Analysis Report To read this article on Zacks.com click here. Here are five of the 10 stocks that passed the screen test: American Airlines AAL is based in Fort Worth, TX. The gradual increase in air travel demand (particularly for leisure) is aiding AAL.
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Here are five of the 10 stocks that passed the screen test: American Airlines AAL is based in Fort Worth, TX. The gradual increase in air travel demand (particularly for leisure) is aiding AAL. AAL currently carries a Zacks Rank #3 (Hold).
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2401.0
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2023-07-25 00:00:00 UTC
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Unusual Put Option Trade in American Airlines Group (AAL) Worth $288.25K
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AAL
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https://www.nasdaq.com/articles/unusual-put-option-trade-in-american-airlines-group-aal-worth-%24288.25k
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nan
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nan
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On July 25, 2023 at 10:50:44 ET an unusually large $288.25K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $18.00 / share, expiring in 24 day(s) (on August 18, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 2.72 sigmas above the mean, placing it in the 99.98th percentile of all recent large trades made in AAL options.
This trade was first picked up on Fintel's real time Options Flow tool, where unusual option trades are highlighted.
What is the Fund Sentiment?
There are 1036 funds or institutions reporting positions in American Airlines Group. This is an increase of 40 owner(s) or 4.02% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 4.98%. Total shares owned by institutions increased in the last three months by 28.54% to 508,984K shares.
The put/call ratio of AAL is 3.08, indicating a bearish outlook.
Analyst Price Forecast Suggests 5.37% Upside
As of July 6, 2023, the average one-year price target for American Airlines Group is 17.79. The forecasts range from a low of 11.11 to a high of $27.30. The average price target represents an increase of 5.37% from its latest reported closing price of 16.88.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Airlines Group is 51,177MM, a decrease of 3.25%. The projected annual non-GAAP EPS is 1.52.
What are Other Shareholders Doing?
Primecap Management holds 37,738K shares representing 5.78% ownership of the company. In it's prior filing, the firm reported owning 38,099K shares, representing a decrease of 0.95%. The firm increased its portfolio allocation in AAL by 9.40% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 20,146K shares representing 3.08% ownership of the company. In it's prior filing, the firm reported owning 19,733K shares, representing an increase of 2.05%. The firm increased its portfolio allocation in AAL by 9.31% over the last quarter.
VPMCX - Vanguard PRIMECAP Fund Investor Shares holds 19,321K shares representing 2.96% ownership of the company. In it's prior filing, the firm reported owning 19,365K shares, representing a decrease of 0.23%. The firm increased its portfolio allocation in AAL by 9.19% over the last quarter.
Renaissance Technologies holds 15,723K shares representing 2.41% ownership of the company. In it's prior filing, the firm reported owning 9,251K shares, representing an increase of 41.16%. The firm increased its portfolio allocation in AAL by 91.15% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 15,180K shares representing 2.32% ownership of the company. In it's prior filing, the firm reported owning 15,024K shares, representing an increase of 1.03%. The firm increased its portfolio allocation in AAL by 8.66% over the last quarter.
American Airlines Group Background Information
(This description is provided by the company.)
American Airlines Group Inc. is the parent company of American Airlines. Together with regional partner American Eagle, American Airlines offers an average of nearly 6,700 flights daily to 350 destinations in 50 countries. American Airlines is a founding member of the oneworld® alliance, whose members and members-elect offer nearly 14,250 flights daily to 1,000 destinations in 150 countries.
Key filings for this company:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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On July 25, 2023 at 10:50:44 ET an unusually large $288.25K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $18.00 / share, expiring in 24 day(s) (on August 18, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 2.72 sigmas above the mean, placing it in the 99.98th percentile of all recent large trades made in AAL options. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 4.98%.
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On July 25, 2023 at 10:50:44 ET an unusually large $288.25K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $18.00 / share, expiring in 24 day(s) (on August 18, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 2.72 sigmas above the mean, placing it in the 99.98th percentile of all recent large trades made in AAL options. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 4.98%.
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On July 25, 2023 at 10:50:44 ET an unusually large $288.25K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $18.00 / share, expiring in 24 day(s) (on August 18, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 2.72 sigmas above the mean, placing it in the 99.98th percentile of all recent large trades made in AAL options. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 4.98%.
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On July 25, 2023 at 10:50:44 ET an unusually large $288.25K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $18.00 / share, expiring in 24 day(s) (on August 18, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 2.72 sigmas above the mean, placing it in the 99.98th percentile of all recent large trades made in AAL options. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 4.98%.
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2402.0
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2023-07-25 00:00:00 UTC
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Morgan Stanley Reiterates American Airlines Group (AAL) Equal-Weight Recommendation
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AAL
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https://www.nasdaq.com/articles/morgan-stanley-reiterates-american-airlines-group-aal-equal-weight-recommendation-0
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nan
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nan
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Fintel reports that on July 25, 2023, Morgan Stanley reiterated coverage of American Airlines Group (NASDAQ:AAL) with a Equal-Weight recommendation.
Analyst Price Forecast Suggests 5.37% Upside
As of July 6, 2023, the average one-year price target for American Airlines Group is 17.79. The forecasts range from a low of 11.11 to a high of $27.30. The average price target represents an increase of 5.37% from its latest reported closing price of 16.88.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Airlines Group is 51,177MM, a decrease of 3.25%. The projected annual non-GAAP EPS is 1.52.
What is the Fund Sentiment?
There are 1036 funds or institutions reporting positions in American Airlines Group. This is an increase of 40 owner(s) or 4.02% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 4.98%. Total shares owned by institutions increased in the last three months by 28.54% to 508,984K shares.
The put/call ratio of AAL is 3.08, indicating a bearish outlook.
What are Other Shareholders Doing?
Primecap Management holds 37,738K shares representing 5.78% ownership of the company. In it's prior filing, the firm reported owning 38,099K shares, representing a decrease of 0.95%. The firm increased its portfolio allocation in AAL by 9.40% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 20,146K shares representing 3.08% ownership of the company. In it's prior filing, the firm reported owning 19,733K shares, representing an increase of 2.05%. The firm increased its portfolio allocation in AAL by 9.31% over the last quarter.
VPMCX - Vanguard PRIMECAP Fund Investor Shares holds 19,321K shares representing 2.96% ownership of the company. In it's prior filing, the firm reported owning 19,365K shares, representing a decrease of 0.23%. The firm increased its portfolio allocation in AAL by 9.19% over the last quarter.
Renaissance Technologies holds 15,723K shares representing 2.41% ownership of the company. In it's prior filing, the firm reported owning 9,251K shares, representing an increase of 41.16%. The firm increased its portfolio allocation in AAL by 91.15% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 15,180K shares representing 2.32% ownership of the company. In it's prior filing, the firm reported owning 15,024K shares, representing an increase of 1.03%. The firm increased its portfolio allocation in AAL by 8.66% over the last quarter.
American Airlines Group Background Information
(This description is provided by the company.)
American Airlines Group Inc. is the parent company of American Airlines. Together with regional partner American Eagle, American Airlines offers an average of nearly 6,700 flights daily to 350 destinations in 50 countries. American Airlines is a founding member of the oneworld® alliance, whose members and members-elect offer nearly 14,250 flights daily to 1,000 destinations in 150 countries.
Additional reading:
AMERICAN AIRLINES REPORTS SECOND-QUARTER 2023 FINANCIAL RESULTS
Investor Relations Update July 20, 2023
Certain of the statements contained in this presentation should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigat
Supplemental Agreement No. 19, dated as of April 23, 2023, to Purchase Agreement No. 3219 dated as of October 15, 2008, by and between American Airlines, Inc. and The Boeing Company.*
Supplemental Agreement No. 29, dated as of May 23, 2023, to Purchase Agreement No. 03735 dated as of February 1, 2013, between American Airlines, Inc. and the Boeing Company.*
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on July 25, 2023, Morgan Stanley reiterated coverage of American Airlines Group (NASDAQ:AAL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 4.98%. The put/call ratio of AAL is 3.08, indicating a bearish outlook.
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Fintel reports that on July 25, 2023, Morgan Stanley reiterated coverage of American Airlines Group (NASDAQ:AAL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 4.98%. The put/call ratio of AAL is 3.08, indicating a bearish outlook.
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Fintel reports that on July 25, 2023, Morgan Stanley reiterated coverage of American Airlines Group (NASDAQ:AAL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 4.98%. The put/call ratio of AAL is 3.08, indicating a bearish outlook.
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Fintel reports that on July 25, 2023, Morgan Stanley reiterated coverage of American Airlines Group (NASDAQ:AAL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 4.98%. The put/call ratio of AAL is 3.08, indicating a bearish outlook.
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2403.0
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2023-07-25 00:00:00 UTC
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Stocks Close Higher on Big Tech Earnings Optimism
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AAL
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https://www.nasdaq.com/articles/stocks-close-higher-on-big-tech-earnings-optimism
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nan
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nan
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What you need to know…
The S&P 500 Index ($SPX) (SPY) Tuesday closed up +0.28%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.08%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.73%.
Stocks on Tuesday moved higher, with the S&P 500 posting a 15-1/2 month high and the Dow Jones Industrials posting a 17-1/2 month high. Earnings optimism on Tuesday underpinned stock prices, with mega-cap tech companies Microsoft and Alphabet due to report after Tuesday’s close. Stocks also found support after Tuesday’s news showed U.S. July consumer confidence rose more than expected to a 2-year high, bolstering the outlook for a soft landing of the U.S. economy.
Global stock bourses had carryover support from Tuesday’s rally in China’s Shanghai Composite Stock Index by more than +2% as market sentiment improved after Chinese leaders at this week’s Politburo meeting laid out a pre-growth tone that was more dovish than markets expected. Also, Tuesday’s action by the IMF to boost its global growth outlook for this year supported equity markets.
However, stock gains were tempered Tuesday after the 10-year T-note yield rose to a 1-1/2 week high. Also, uncertainty over what the Fed might say regarding interest rates and the economy following the Tue/Wed FOMC meeting limited the upside in stocks.
The U.S. May S&P CoreLogic composite-20 home price index fell -1.70% y/y, a smaller decline than expectations of -2.35% y/y.
The Conference Board U.S. Jul consumer confidence index rose +6.9 to a 2-year high of 117.0, stronger than expectations of 112.0.
The U.S. Jul Richmond Fed manufacturing survey fell -1 to -9, a smaller decline than expectations of -10.
In Tuesday’s World Economic Outlook, the International Monetary Fund (IMF) raised its global 2023 GDP forecast to 3.0% from an April estimate of 2.8%.
The markets are expecting the Fed and the ECB this week to both raise their respective interest rates by 25 bp and will look for guidance from the central banks to see if more rate hikes are likely.
The markets are discounting the odds at 97% for a +25 bp rate hike at the Tue/Wed FOMC meeting. The markets are anticipating a peak funds rate of 5.42% by November, which is +34 bp higher than the current effective federal funds rate of 5.08%.
Global bond yields Tuesday moved mostly higher. The 10-year T-note yield climbed to a 1-1/2 week high of 3.920% and finished up +2.9 bp at 3.902%. The 10-year German bund yield was unchanged at 2.425%. The 10-year UK Gilt yield rose +1.2 to 4.268%.
Overseas stock markets Tuesday settled mixed. The Euro Stoxx 50 closed up +0.19%. China’s Shanghai Composite Index today closed up +2.13%. Japan’s Nikkei Stock Index closed down -0.06%.
Today’s stock movers…
Packaging Corp (PKG) closed up more than +10% to lead gainers in the S&P 500 after reporting Q2 adjusted EPS of $2.31, above the consensus of $1.95.
MSCI Inc (MSCI) closed up more than +9% after reporting Q2 adjusted EPS of $3.26, better than the consensus of $3.12.
PulteGroup (PHM) closed up more than +6% after reporting Q2 revenue of $4.19 billion, above the consensus of $4.00 billion.
General Electric (GE) closed up more than +6% after reporting Q2 adjusted revenue of $15.90 billion, better than the consensus of $14.73 billion, and raised its full-year adjusted free cash flow to $4.1 billion-$4.6 billion from a previous forecast of $3.6 billion-$4.2 billion.
3M Co (MMM) closed up more than +5% to lead gainers in the Dow Jones Industrials after reporting Q2 net sales of $8.33 billion, well above the consensus of $7.86 billion.
F5 Inc (FFIV) closed up more than +5% after reporting Q3 net revenue of $702.6 million, above the consensus of $699.3 million, and said it was “confident in our ability to achieve our target of double-digit non-GAAP earnings growth for fiscal year 2023.”
U.S.-listed Chinese stocks rallied in pre-market trading after China’s pledge to support the economy bolstered speculation that fresh stimulus measures were on the way. As a result, PDD Holdings (PDD) closed up more than +5% to lead gainers in the Nasdaq 100. Also, Alibaba Group Holding (BABA), Baidu (BIDU), NetEase (NTES), and JD.com (JD) closed up more than +1%.
NXP Semiconductors (NXPI) closed up more than +4% after reporting Q2 revenue of $3.30 billion, above the consensus of $3.21 billion, and forecast Q3 revenue of $3.30 billion-$3.50 billion, the midpoint well above the consensus of $3.31 billion.
Datadog (DDOG) closed up more than +3% in the Nasdaq 100 after Wolfe Research upgraded the stock to outperform from peer perform.
Raytheon Technologies (RTX) closed down more than -10% to lead losers in the S&P 500 after cutting its full-year free cash flow estimate to $4.3 billion from a previous estimate of $4.8 billion, below the consensus of $4.82 billion.
Airline stocks were on the defensive Tuesday after Alaska Air Group warned that declining airfares could hurt Q3 results and that demand for domestic travel has softened. As a result, Alaska Air Group (ALK) closed down more than -9%. Also, Southwest Airlines (LUV) closed down more than -4%, and United Airlines Holdings (UAL) closed down more than -3%. In addition, Delta Air Lines (DAL) closed down more than -2%, and American Airlines Group (AAL) closed down more than -1%,
Invesco Ltd (IVZ) closed down more than -7% after reporting Q2 adjusted EPS of 31 cents, weaker than the consensus of 39 cents.
Dover Corp (DOV) closed down more than -3% after reporting Q2 adjusted EPS of $2.05, below the consensus of $2.20, and lowered eh upper end of its full-year adjusted EPS forecast to $8.85-$9.00 from a prior view of $8.85-$9.05.
Whirlpool (WHR) closed down more than -2% after reporting Q2 net sales of $4.79 billion, weaker than the consensus of $4.81 billion.
Avery Denison (AVY) closed down more than -1% after reporting Q2 net sales of $2.09 billion, below the consensus of $2.18 billion.
Across the markets…
September 10-year T-notes (ZNU23) Tuesday closed down -14.5 ticks, and the 10-year T-note yield rose +2.9 bp to 3.902%. Sep T-notes Tuesday fell to a 1-1/2 week low, and the 10-year T-note yield rose to a 1-1/2 week high of 3.920%. Stronger than expected U.S. economic news today on May S&P CoreLogic composite-20 home prices and the Conference Board Jul consumer confidence index weighed on T-note prices. Also, expectations for the Fed to raise the fed funds target range by 25 bp on Wednesday undercut T-note prices.
T-note prices recovered from their worst levels Tuesday on strong demand for the Treasury’s $43 billion auction of 5-year T-notes with a bid-to-cover ratio of 2.60, well above the 10-auction average of 2.48. Also, speculation that the Fed may pause its interest rate hike campaign following the Tue/Wed FOMC meeting supported T-notes.
More Stock Market News from Barchart
Could GE Be Ready for a Revival? Can China’s Economic Policies Spark a Growth Rebound? Stock Gains Muted Ahead of Mega-Cap Tech Earnings and FOMC Results Oracle Corp Stock Is Treading Water - Ideal for Traders Shorting OTM Puts
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, Delta Air Lines (DAL) closed down more than -2%, and American Airlines Group (AAL) closed down more than -1%, Invesco Ltd (IVZ) closed down more than -7% after reporting Q2 adjusted EPS of 31 cents, weaker than the consensus of 39 cents. Stocks also found support after Tuesday’s news showed U.S. July consumer confidence rose more than expected to a 2-year high, bolstering the outlook for a soft landing of the U.S. economy. In Tuesday’s World Economic Outlook, the International Monetary Fund (IMF) raised its global 2023 GDP forecast to 3.0% from an April estimate of 2.8%.
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In addition, Delta Air Lines (DAL) closed down more than -2%, and American Airlines Group (AAL) closed down more than -1%, Invesco Ltd (IVZ) closed down more than -7% after reporting Q2 adjusted EPS of 31 cents, weaker than the consensus of 39 cents. The Conference Board U.S. Jul consumer confidence index rose +6.9 to a 2-year high of 117.0, stronger than expectations of 112.0. General Electric (GE) closed up more than +6% after reporting Q2 adjusted revenue of $15.90 billion, better than the consensus of $14.73 billion, and raised its full-year adjusted free cash flow to $4.1 billion-$4.6 billion from a previous forecast of $3.6 billion-$4.2 billion.
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In addition, Delta Air Lines (DAL) closed down more than -2%, and American Airlines Group (AAL) closed down more than -1%, Invesco Ltd (IVZ) closed down more than -7% after reporting Q2 adjusted EPS of 31 cents, weaker than the consensus of 39 cents. What you need to know… The S&P 500 Index ($SPX) (SPY) Tuesday closed up +0.28%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +0.08%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.73%. General Electric (GE) closed up more than +6% after reporting Q2 adjusted revenue of $15.90 billion, better than the consensus of $14.73 billion, and raised its full-year adjusted free cash flow to $4.1 billion-$4.6 billion from a previous forecast of $3.6 billion-$4.2 billion.
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In addition, Delta Air Lines (DAL) closed down more than -2%, and American Airlines Group (AAL) closed down more than -1%, Invesco Ltd (IVZ) closed down more than -7% after reporting Q2 adjusted EPS of 31 cents, weaker than the consensus of 39 cents. However, stock gains were tempered Tuesday after the 10-year T-note yield rose to a 1-1/2 week high. 3M Co (MMM) closed up more than +5% to lead gainers in the Dow Jones Industrials after reporting Q2 net sales of $8.33 billion, well above the consensus of $7.86 billion.
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2404.0
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2023-07-25 00:00:00 UTC
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Stock Gains Muted Ahead of Mega-Cap Tech Earnings and FOMC Results
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AAL
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https://www.nasdaq.com/articles/stock-gains-muted-ahead-of-mega-cap-tech-earnings-and-fomc-results
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What you need to know…
The S&P 500 Index ($SPX) (SPY) today is up +0.14%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.06%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.40%.
Stocks this morning are moderately higher. Trading activity is muted today, ahead of a raft of mega-cap stock earnings results, with Microsoft and Alphabet due to report after today’s close. Also, uncertainty over what the Fed might say regarding interest rates and the economy following the Tue/Wed FOMC meeting is keeping traders sidelined.
Stocks found support after today’s news showed the Conference Board U.S. July consumer confidence index rose more than expected to a 2-week high. Also, today’s action by the IMF to boost its global growth outlook for this year supported equity markets. However, stock gains were tempered after the 10-year T-note yield rose to a 1-1/2 week high.
Global stock bourses have carryover support from today’s rally in China’s Shanghai Composite Stock Index by more than +2% as market sentiment improved after Chinese leaders at this week’s Politburo meeting laid out a pre-growth tone that was more dovish than markets expected.
The U.S. May S&P CoreLogic composite-20 home price index fell -1.70% y/y, a smaller decline than expectations of -2.35% y/y.
The Conference Board U.S. Jul consumer confidence index rose +6.9 to a 2-year high of 117.0, stronger than expectations of 112.0.
The U.S. Jul Richmond Fed manufacturing survey fell -1 to -9, a smaller decline than expectations of -10.
In its World Economic Outlook released today, the International Monetary Fund (IMF) raised its global 2023 GDP forecast to 3.0% from an April estimate of 2.8%.
The markets are expecting the Fed and the ECB this week to both raise their respective interest rates by 25 bp and will look for guidance from the central banks to see if more rate hikes are likely.
The markets are discounting the odds at 97% for a +25 bp rate hike at the Tue/Wed FOMC meeting. The markets are anticipating a peak funds rate of 5.42% by November, which is +34 bp higher than the current effective federal funds rate of 5.08%.
Global bond yields are higher. The 10-year T-note yield climbed to a 1-1/2 week high of 3.920% and is up +3.2 bp to 3.904%. The 10-year German bund yield is up +2.4 bp at 2.449%. The 10-year UK Gilt yield is up +3.0 at 4.286%.
Overseas stock markets are mixed. The Euro Stoxx 50 is up +0.22%. China’s Shanghai Composite Index today closed up +2.13%. Japan’s Nikkei Stock Index closed down -0.06%.
Today’s stock movers…
Packaging Corp (PKG) is up more than +10% to lead gainers in the S&P 500 after reporting Q2 adjusted EPS of $2.31, above the consensus of $1.95.
F5 Inc (FFIV) is up more than +5% after reporting Q3 net revenue of $702.6 million, above the consensus of $699.3 million, and said it was “confident in our ability to achieve our target of double-digit non-GAAP earnings growth for fiscal year 2023.”
General Electric (GE) is up more than +6% after reporting Q2 adjusted revenue of $15.90 billion, better than the consensus of $14.73 billion, and raised its full-year adjusted free cash flow to $4.1 billion-$4.6 billion from a previous forecast of $3.6 billion-$4.2 billion.
Sherwin-Williams (SHW) is up more than +4% after reporting Q2 net sales of $6.24 billion, stronger than the consensus of $6.01 billion.
MSCI Inc (MSCI) is up more than +6% after reporting Q2 adjusted EPS of $3.26, better than the consensus of $3.12.
3M Co (MMM) is up more than +5% to lead gainers in the Dow Jones Industrials after reporting Q2 net sales of $8.33 billion, well above the consensus of $7.86 billion.
Datadog (DDOG) is up more than +3% to lead gainers in the Nasdaq 100 after Wolfe Research upgraded the stock to outperform from peer perform.
U.S.-listed Chinese stocks rallied in pre-market trading after China’s pledge to support the economy bolstered speculation that fresh stimulus measures were on the way. As a result, PDD Holdings (PDD) is up more than +3%. Also, Alibaba Group Holding (BABA), Baidu (BIDU), NetEase (NTES), and JD.com (JD) are all up more than +1%.
NXP Semiconductors (NXPI) is up more than +3% after reporting Q2 revenue of $3.30 billion, above the consensus of $3.21 billion, and forecast Q3 revenue of $3.30 billion-$3.50 billion, the midpoint well above the consensus of $3.31 billion.
Raytheon Technologies (RTX) is down more than -13% to lead losers in the S&P 500 after cutting its full-year free cash flow estimate to $4.3 billion from a previous estimate of $4.8 billion, below the consensus of $4.82 billion.
Airline stocks are on the defensive today after Alaska Air Group warned that declining airfares could hurt Q3 results and that demand for domestic travel has softened. As a result, Alaska Air Group (ALK) is down more than -10%. Also, Southwest Airlines (LUV) is down more than -5%, and United Airlines Holdings (UAL) is down more than -4%. In addition, American Airlines Group (AAL) and Delta Air Lines (DAL) are down more than -3%.
Invesco Ltd (IVZ) is down more than -5% after reporting Q2 adjusted EPS of 31 cents, weaker than the consensus of 39 cents.
Dover Corp (DOV) is down more than -4% after reporting Q2 adjusted EPS of $2.05, below the consensus of $2.20, and lowered eh upper end of its full-year adjusted EPS forecast to $8.85-$9.00 from a prior view of $8.85-$9.05.
Avery Denison (AVY) is down more than -3% after reporting Q2 net sales of $2.09 billion, below the consensus of $2.18 billion.
Whirlpool (WHR) is down more than -3% after reporting Q2 net sales of $4.79 billion, weaker than the consensus of $4.81 billion.
Tractor Supply Co (TSCO) is down more than -2% after Bank of America Global Research downgraded the stock to neutral from buy.
Across the markets…
September 10-year T-notes (ZNU23) today are down -13 ticks, and the 10-year T-note yield is up +3.2 bp at 3.904%. Sep T-notes today fell to a 1-1/2 week low, and the 10-year T-note yield rose to a 1-1/2 week high of 3.920%. Stronger than expected U.S. economic news today on May S&P CoreLogic composite-20 home prices and the Conference Board U.S. Jul consumer confidence index is weighing on T-note prices. Supply pressures are also undercutting T-note prices as the Treasury will auction $43 billion of 5-year T-notes later today as part of this week’s $144 billion auction package of T-notes and floating-rate T-notes.
The dollar index (DXY00) today is up by +0.17% and climbed to a 2-week high. Higher T-note yields today are supporting moderate gains in the dollar. Also, expectations for the Fed to raise the fed funds target range by 25 bp following the conclusion of the Tue/Wed FOMC meeting is bullish for the dollar. The dollar raced to its high today after the Conference Board U.S. Jul consumer confidence index rose more than expected to a 2-year high.
EUR/USD (^EURUSD) today is down by -0.29% and posted a 1-1/2 week low. A stronger dollar today is weighing on the euro. Also, a slump in German business confidence undercut EUR/USD after the German Jul IFO business climate fell more than expected to an 8-month low. In addition, the euro weakened after the ECB’s Quarterly Bank Lending Survey indicated slack demand for corporate loans.
The German Jul IFO business climate fell -1.3 to an 8-month low of 87.3, weaker than expectations of 88.0.
USD/JPY (^USDJPY) is down by -0.11%. The yen today is slightly higher on the prospects for additional stimulus measures in China after China’s Politburo signaled more support for the economy. An increase in China’s economic growth would benefit Japan, China’s third-largest trading partner. Gains in the yen were limited due to higher T-note yields.
August gold (GCQ3) today is down -3.1 (-0.16%), and Sep silver (SIU23) is up +0.199 (+0.81%). Precious metals prices this morning are mixed, with gold falling to a 1-week low. Today’s rally in the dollar index to a 2-week high is bearish for metals prices. Also, higher global bond yields today are negative for precious metals prices. In addition, expectations for the Fed and ECB to raise interest rates this week are undercutting metals. Silver prices found support today after China’s Politburo signaled more support for China’s economy, which should boost China’s demand for industrial metals.
More Stock Market News from Barchart
Is Plug Power a Good Renewable Energy Stock to Buy Now? Fed July Meeting: Will Powell Kill the Stock Rally? Markets Today: Stocks Edge Higher as Earnings Season Ramps Up
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, American Airlines Group (AAL) and Delta Air Lines (DAL) are down more than -3%. Stocks found support after today’s news showed the Conference Board U.S. July consumer confidence index rose more than expected to a 2-week high. Airline stocks are on the defensive today after Alaska Air Group warned that declining airfares could hurt Q3 results and that demand for domestic travel has softened.
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In addition, American Airlines Group (AAL) and Delta Air Lines (DAL) are down more than -3%. F5 Inc (FFIV) is up more than +5% after reporting Q3 net revenue of $702.6 million, above the consensus of $699.3 million, and said it was “confident in our ability to achieve our target of double-digit non-GAAP earnings growth for fiscal year 2023.” General Electric (GE) is up more than +6% after reporting Q2 adjusted revenue of $15.90 billion, better than the consensus of $14.73 billion, and raised its full-year adjusted free cash flow to $4.1 billion-$4.6 billion from a previous forecast of $3.6 billion-$4.2 billion. Stronger than expected U.S. economic news today on May S&P CoreLogic composite-20 home prices and the Conference Board U.S. Jul consumer confidence index is weighing on T-note prices.
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In addition, American Airlines Group (AAL) and Delta Air Lines (DAL) are down more than -3%. Global stock bourses have carryover support from today’s rally in China’s Shanghai Composite Stock Index by more than +2% as market sentiment improved after Chinese leaders at this week’s Politburo meeting laid out a pre-growth tone that was more dovish than markets expected. F5 Inc (FFIV) is up more than +5% after reporting Q3 net revenue of $702.6 million, above the consensus of $699.3 million, and said it was “confident in our ability to achieve our target of double-digit non-GAAP earnings growth for fiscal year 2023.” General Electric (GE) is up more than +6% after reporting Q2 adjusted revenue of $15.90 billion, better than the consensus of $14.73 billion, and raised its full-year adjusted free cash flow to $4.1 billion-$4.6 billion from a previous forecast of $3.6 billion-$4.2 billion.
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In addition, American Airlines Group (AAL) and Delta Air Lines (DAL) are down more than -3%. Higher T-note yields today are supporting moderate gains in the dollar. Today’s rally in the dollar index to a 2-week high is bearish for metals prices.
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2405.0
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2023-07-25 00:00:00 UTC
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Analysts Predict 10% Gains Ahead For The Holdings of FNX
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AAL
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https://www.nasdaq.com/articles/analysts-predict-10-gains-ahead-for-the-holdings-of-fnx
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the First Trust Mid Cap Core AlphaDEX Fund ETF (Symbol: FNX), we found that the implied analyst target price for the ETF based upon its underlying holdings is $109.25 per unit.
With FNX trading at a recent price near $99.68 per unit, that means that analysts see 9.60% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FNX's underlying holdings with notable upside to their analyst target prices are Lantheus Holdings Inc (Symbol: LNTH), SeaWorld Entertainment Inc. (Symbol: SEAS), and American Airlines Group Inc (Symbol: AAL). Although LNTH has traded at a recent price of $84.41/share, the average analyst target is 45.12% higher at $122.50/share. Similarly, SEAS has 34.07% upside from the recent share price of $53.78 if the average analyst target price of $72.11/share is reached, and analysts on average are expecting AAL to reach a target price of $19.25/share, which is 17.61% above the recent price of $16.37. Below is a twelve month price history chart comparing the stock performance of LNTH, SEAS, and AAL:
Below is a summary table of the current analyst target prices discussed above:
NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET
First Trust Mid Cap Core AlphaDEX Fund ETF FNX $99.68 $109.25 9.60%
Lantheus Holdings Inc LNTH $84.41 $122.50 45.12%
SeaWorld Entertainment Inc. SEAS $53.78 $72.11 34.07%
American Airlines Group Inc AAL $16.37 $19.25 17.61%
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
Also see:
CSCO RSI
Funds Holding HW
WWAY Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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First Trust Mid Cap Core AlphaDEX Fund ETF FNX $99.68 $109.25 9.60% Lantheus Holdings Inc LNTH $84.41 $122.50 45.12% SeaWorld Entertainment Inc. SEAS $53.78 $72.11 34.07% American Airlines Group Inc AAL $16.37 $19.25 17.61% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FNX's underlying holdings with notable upside to their analyst target prices are Lantheus Holdings Inc (Symbol: LNTH), SeaWorld Entertainment Inc. (Symbol: SEAS), and American Airlines Group Inc (Symbol: AAL). Similarly, SEAS has 34.07% upside from the recent share price of $53.78 if the average analyst target price of $72.11/share is reached, and analysts on average are expecting AAL to reach a target price of $19.25/share, which is 17.61% above the recent price of $16.37.
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Three of FNX's underlying holdings with notable upside to their analyst target prices are Lantheus Holdings Inc (Symbol: LNTH), SeaWorld Entertainment Inc. (Symbol: SEAS), and American Airlines Group Inc (Symbol: AAL). First Trust Mid Cap Core AlphaDEX Fund ETF FNX $99.68 $109.25 9.60% Lantheus Holdings Inc LNTH $84.41 $122.50 45.12% SeaWorld Entertainment Inc. SEAS $53.78 $72.11 34.07% American Airlines Group Inc AAL $16.37 $19.25 17.61% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Similarly, SEAS has 34.07% upside from the recent share price of $53.78 if the average analyst target price of $72.11/share is reached, and analysts on average are expecting AAL to reach a target price of $19.25/share, which is 17.61% above the recent price of $16.37.
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Similarly, SEAS has 34.07% upside from the recent share price of $53.78 if the average analyst target price of $72.11/share is reached, and analysts on average are expecting AAL to reach a target price of $19.25/share, which is 17.61% above the recent price of $16.37. Three of FNX's underlying holdings with notable upside to their analyst target prices are Lantheus Holdings Inc (Symbol: LNTH), SeaWorld Entertainment Inc. (Symbol: SEAS), and American Airlines Group Inc (Symbol: AAL). Below is a twelve month price history chart comparing the stock performance of LNTH, SEAS, and AAL: Below is a summary table of the current analyst target prices discussed above:
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First Trust Mid Cap Core AlphaDEX Fund ETF FNX $99.68 $109.25 9.60% Lantheus Holdings Inc LNTH $84.41 $122.50 45.12% SeaWorld Entertainment Inc. SEAS $53.78 $72.11 34.07% American Airlines Group Inc AAL $16.37 $19.25 17.61% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of FNX's underlying holdings with notable upside to their analyst target prices are Lantheus Holdings Inc (Symbol: LNTH), SeaWorld Entertainment Inc. (Symbol: SEAS), and American Airlines Group Inc (Symbol: AAL). Similarly, SEAS has 34.07% upside from the recent share price of $53.78 if the average analyst target price of $72.11/share is reached, and analysts on average are expecting AAL to reach a target price of $19.25/share, which is 17.61% above the recent price of $16.37.
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2406.0
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2023-07-25 00:00:00 UTC
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Airlines shares hit turbulence on Alaska's dour forecast, RTX engine problem
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AAL
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https://www.nasdaq.com/articles/airlines-shares-hit-turbulence-on-alaskas-dour-forecast-rtx-engine-problem
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By Shivansh Tiwary
July 25 (Reuters) - U.S. airlines stocks tumbled on Tuesday as investors were spooked by downbeat forecasts from Alaska Air Group ALK.N and a warning on jet engines by aerospace giant RTX RTX.N.
Investors have been on the guard after U.S. inflation data in July showed a third consecutive monthly decline in fares, with prices dropping at their fastest pace since February 2021.
Alaska said it expects total revenue in the third quarter to be flat to up 3%, compared with a 6.8% rise in the second. Its revenue growth forecast for 2023 missed Wall Street estimates.
"The third-quarter guide looks a little softer than we had anticipated," Citi analyst Stephen Trent said in a research note.
Alaska's shares plunged 9.3% in afternoon trade, dragging United Airlines UAL.O, American Airlines AAL.O, Southwest Airlines LUV.N and Delta Air DAL.N down between 2.5% and 5%.
The S&P 1500 passenger airlines index has climbed 28.3% so far this year, powered by a surge in air travel demand since the end of the COVID-19 pandemic.
RTX, formerly Raytheon, said a "significant portion" of its Pratt & Whitney GTF engines that power Airbus A320neo jets will need "accelerated removals and inspections".
The problem will force an inspection of 1,200 out of more than 3,000 engines over the next nine to 12 months, the company added, sending its stock plunging 14%.
The recall issue is generally casting a shadow over the aerospace and airline stocks, said Art Hogan, chief market strategist at B Riley Wealth in Boston.
"You've got the potential for flight cancellations, if airlines have to take any of their planes offline and have them retrofitted with whatever parts are deemed necessary to be replaced," he added.
Spirit Airlines SAVE.N and Jetblue Airways JBLU.O, which are waiting to complete a merger, operate A320neo planes, according to Cirium data.
Jetblue's shares fell about 5%, while those of ultra-low-cost carrier Spirit Airlines declined about 3%.
Paris-listed shares of Airbus AIR.PA fell 2%.
(Reporting by Shivansh Tiwary in Bengaluru; Additional reporting by Johann M Cherian and Tim Hepher; Editing by Sriraj Kalluvila)
((Shivansh.Tiwary@thomsonreuters.com; +91 9708363192;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alaska's shares plunged 9.3% in afternoon trade, dragging United Airlines UAL.O, American Airlines AAL.O, Southwest Airlines LUV.N and Delta Air DAL.N down between 2.5% and 5%. By Shivansh Tiwary July 25 (Reuters) - U.S. airlines stocks tumbled on Tuesday as investors were spooked by downbeat forecasts from Alaska Air Group ALK.N and a warning on jet engines by aerospace giant RTX RTX.N. Investors have been on the guard after U.S. inflation data in July showed a third consecutive monthly decline in fares, with prices dropping at their fastest pace since February 2021.
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Alaska's shares plunged 9.3% in afternoon trade, dragging United Airlines UAL.O, American Airlines AAL.O, Southwest Airlines LUV.N and Delta Air DAL.N down between 2.5% and 5%. By Shivansh Tiwary July 25 (Reuters) - U.S. airlines stocks tumbled on Tuesday as investors were spooked by downbeat forecasts from Alaska Air Group ALK.N and a warning on jet engines by aerospace giant RTX RTX.N. RTX, formerly Raytheon, said a "significant portion" of its Pratt & Whitney GTF engines that power Airbus A320neo jets will need "accelerated removals and inspections".
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Alaska's shares plunged 9.3% in afternoon trade, dragging United Airlines UAL.O, American Airlines AAL.O, Southwest Airlines LUV.N and Delta Air DAL.N down between 2.5% and 5%. By Shivansh Tiwary July 25 (Reuters) - U.S. airlines stocks tumbled on Tuesday as investors were spooked by downbeat forecasts from Alaska Air Group ALK.N and a warning on jet engines by aerospace giant RTX RTX.N. Jetblue's shares fell about 5%, while those of ultra-low-cost carrier Spirit Airlines declined about 3%.
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Alaska's shares plunged 9.3% in afternoon trade, dragging United Airlines UAL.O, American Airlines AAL.O, Southwest Airlines LUV.N and Delta Air DAL.N down between 2.5% and 5%. Investors have been on the guard after U.S. inflation data in July showed a third consecutive monthly decline in fares, with prices dropping at their fastest pace since February 2021. RTX, formerly Raytheon, said a "significant portion" of its Pratt & Whitney GTF engines that power Airbus A320neo jets will need "accelerated removals and inspections".
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2407.0
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2023-07-25 00:00:00 UTC
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Citigroup Maintains American Airlines Group (AAL) Neutral Recommendation
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https://www.nasdaq.com/articles/citigroup-maintains-american-airlines-group-aal-neutral-recommendation-0
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Fintel reports that on July 24, 2023, Citigroup maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation.
Analyst Price Forecast Suggests 5.37% Upside
As of July 6, 2023, the average one-year price target for American Airlines Group is 17.79. The forecasts range from a low of 11.11 to a high of $27.30. The average price target represents an increase of 5.37% from its latest reported closing price of 16.88.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Airlines Group is 51,177MM, a decrease of 3.25%. The projected annual non-GAAP EPS is 1.52.
What is the Fund Sentiment?
There are 1036 funds or institutions reporting positions in American Airlines Group. This is an increase of 40 owner(s) or 4.02% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 4.98%. Total shares owned by institutions increased in the last three months by 28.54% to 508,984K shares.
The put/call ratio of AAL is 3.08, indicating a bearish outlook.
What are Other Shareholders Doing?
Primecap Management holds 37,738K shares representing 5.78% ownership of the company. In it's prior filing, the firm reported owning 38,099K shares, representing a decrease of 0.95%. The firm increased its portfolio allocation in AAL by 9.40% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 20,146K shares representing 3.08% ownership of the company. In it's prior filing, the firm reported owning 19,733K shares, representing an increase of 2.05%. The firm increased its portfolio allocation in AAL by 9.31% over the last quarter.
VPMCX - Vanguard PRIMECAP Fund Investor Shares holds 19,321K shares representing 2.96% ownership of the company. In it's prior filing, the firm reported owning 19,365K shares, representing a decrease of 0.23%. The firm increased its portfolio allocation in AAL by 9.19% over the last quarter.
Renaissance Technologies holds 15,723K shares representing 2.41% ownership of the company. In it's prior filing, the firm reported owning 9,251K shares, representing an increase of 41.16%. The firm increased its portfolio allocation in AAL by 91.15% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 15,180K shares representing 2.32% ownership of the company. In it's prior filing, the firm reported owning 15,024K shares, representing an increase of 1.03%. The firm increased its portfolio allocation in AAL by 8.66% over the last quarter.
American Airlines Group Background Information
(This description is provided by the company.)
American Airlines Group Inc. is the parent company of American Airlines. Together with regional partner American Eagle, American Airlines offers an average of nearly 6,700 flights daily to 350 destinations in 50 countries. American Airlines is a founding member of the oneworld® alliance, whose members and members-elect offer nearly 14,250 flights daily to 1,000 destinations in 150 countries.
Additional reading:
AMERICAN AIRLINES REPORTS SECOND-QUARTER 2023 FINANCIAL RESULTS
Investor Relations Update July 20, 2023
Certain of the statements contained in this presentation should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigat
Supplemental Agreement No. 19, dated as of April 23, 2023, to Purchase Agreement No. 3219 dated as of October 15, 2008, by and between American Airlines, Inc. and The Boeing Company.*
Supplemental Agreement No. 29, dated as of May 23, 2023, to Purchase Agreement No. 03735 dated as of February 1, 2013, between American Airlines, Inc. and the Boeing Company.*
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on July 24, 2023, Citigroup maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 4.98%. The put/call ratio of AAL is 3.08, indicating a bearish outlook.
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Fintel reports that on July 24, 2023, Citigroup maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 4.98%. The put/call ratio of AAL is 3.08, indicating a bearish outlook.
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Fintel reports that on July 24, 2023, Citigroup maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 4.98%. The put/call ratio of AAL is 3.08, indicating a bearish outlook.
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Fintel reports that on July 24, 2023, Citigroup maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 4.98%. The put/call ratio of AAL is 3.08, indicating a bearish outlook.
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2408.0
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2023-07-25 00:00:00 UTC
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Anglo American's Kumba Iron Ore profit falls on weaker prices
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AAL
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https://www.nasdaq.com/articles/anglo-americans-kumba-iron-ore-profit-falls-on-weaker-prices
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nan
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nan
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Adds details, dividend
July 25 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J reported a 17% decline in half-year profit on Tuesday due to softer iron ore prices and persistent rail logistics problems.
Kumba, 70% owned by global mining giant Anglo American Plc AAL.L, said its headline earnings per share (HEPS) came in at 30.04 rand ($1.70) for the six months to June 30, down from 36.13 rand last year.
The miner's average realised export price was 22% lower at $106 per wet metric ton (wmt), compared to $136/wmt in the first half of 2022.
Although production increased 6% to 18.8 million tons during the first half of 2023 compared to last year, sales volumes were 4% lower at 18.9 million tons as persistent rail problems - derailments and cable theft - continue to throttle exports.
Kumba declared an interim dividend of 22.60 rand, returning $413.42 million to shareholders.
($1 = 17.6578 rand)
(Reporting by Nelson Banya; Editing by Kim Coghill and Subhranshu Sahu)
((Nelson.Banya@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Kumba, 70% owned by global mining giant Anglo American Plc AAL.L, said its headline earnings per share (HEPS) came in at 30.04 rand ($1.70) for the six months to June 30, down from 36.13 rand last year. Adds details, dividend July 25 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J reported a 17% decline in half-year profit on Tuesday due to softer iron ore prices and persistent rail logistics problems. The miner's average realised export price was 22% lower at $106 per wet metric ton (wmt), compared to $136/wmt in the first half of 2022.
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Kumba, 70% owned by global mining giant Anglo American Plc AAL.L, said its headline earnings per share (HEPS) came in at 30.04 rand ($1.70) for the six months to June 30, down from 36.13 rand last year. Adds details, dividend July 25 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J reported a 17% decline in half-year profit on Tuesday due to softer iron ore prices and persistent rail logistics problems. The miner's average realised export price was 22% lower at $106 per wet metric ton (wmt), compared to $136/wmt in the first half of 2022.
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Kumba, 70% owned by global mining giant Anglo American Plc AAL.L, said its headline earnings per share (HEPS) came in at 30.04 rand ($1.70) for the six months to June 30, down from 36.13 rand last year. Adds details, dividend July 25 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J reported a 17% decline in half-year profit on Tuesday due to softer iron ore prices and persistent rail logistics problems. Although production increased 6% to 18.8 million tons during the first half of 2023 compared to last year, sales volumes were 4% lower at 18.9 million tons as persistent rail problems - derailments and cable theft - continue to throttle exports.
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Kumba, 70% owned by global mining giant Anglo American Plc AAL.L, said its headline earnings per share (HEPS) came in at 30.04 rand ($1.70) for the six months to June 30, down from 36.13 rand last year. Adds details, dividend July 25 (Reuters) - South Africa's Kumba Iron Ore KIOJ.J reported a 17% decline in half-year profit on Tuesday due to softer iron ore prices and persistent rail logistics problems. The miner's average realised export price was 22% lower at $106 per wet metric ton (wmt), compared to $136/wmt in the first half of 2022.
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2409.0
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2023-07-25 00:00:00 UTC
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Markets Today: Stocks Edge Higher as Earnings Season Ramps Up
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AAL
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https://www.nasdaq.com/articles/markets-today%3A-stocks-edge-higher-as-earnings-season-ramps-up
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nan
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nan
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Morning Markets
September E-Mini S&P 500 futures (ESU23) this morning are up +0.04%, and Sep Nasdaq 100 E-Mini futures (NQU23) are up +0.29%.
Stock indexes this morning are slightly higher ahead of a raft of mega-cap stock earnings results, with Microsoft and Alphabet due to report their first earnings since the AI craze began after today’s close. A jump in the 10-year T-note yield to a 1-1/2 week high today limits the upside in stock index futures. Market activity may be muted through tomorrow afternoon on uncertainty over what the Fed might say regarding interest rates and the economy following the Tue/Wed FOMC meeting.
Global stock bourses have carryover support from today’s rally in China’s Shanghai Composite Stock Index by more than +2% as market sentiment improved after Chinese leaders at this week’s Politburo meeting laid out a pre-growth tone that was more dovish than markets expected.
The markets are expecting the Fed and the ECB this week to both raise their respective interest rates by 25 bp and will look for guidance from the central banks to see if more rate hikes are likely.
The markets are discounting the odds at 97% for a +25 bp rate hike at the Tue/Wed FOMC meeting. The markets are anticipating a peak funds rate of 5.42% by November, which is +34 bp higher than the current effective federal funds rate of 5.08%.
Global bond yields are higher. The 10-year T-note yield climbed to a 1-1/2 week high of 3.904% and is up +2.2 bp to 3.894%. The 10-year German bund yield is up +2.1 bp at 2.446%. The 10-year UK Gilt yield is up +0.6 at 4.262%.
Overseas stock markets are mixed. The Euro Stoxx 50 is up +0.21%. China’s Shanghai Composite Index today closed up +2.13%. Japan’s Nikkei Stock Index closed down -0.06%.
The Euro Stoxx 50 today is slightly higher. Some positive corporate quarterly earnings results are boosting stocks today. Unilever Plc is up more than +4% after reporting stronger-than-expected Q2 sales. Also, Remy Cointreau rallied more than +6% as booming spirit sales in China boosted its Q1 revenue. On the negative side, Bayer AG fell more than -2% after cutting its outlook for the year amid persistently low prices for agriculture products. Also, a dismal business outlook reading from German was negative for stocks and the euro after the German Jul IFO fell more than expected to an 8-month low.
The German Jul IFO business climate fell -1.3 to an 8-month low of 87.3, weaker than expectations of 88.0.
China’s Shanghai Composite today rallied to a 1-week high and closed sharply higher. Chinese stocks rose sharply today as market sentiment improved after this week’s Politburo meeting laid out a pre-growth tone that was more dovish than markets expected. The ruling Communist Party’s 24-member Politburo, China’s top decision-making body led by President Xi Jinping, promised “counter-cyclical” policies, which imply an easing bias. Property stocks surged after the Politburo signaled an “adjustment” of restrictions in the property sector and to “adjust and optimize property policies timely.” Also, the likelihood that the PBOC would cut interest rates further supported gains in stocks as the Politburo signaled “aggregate” monetary policy tools would be used to revive growth. In addition, the Politburo vowed to speed up the issuance and use of local government special bonds, a strategy typically used to boost infrastructure growth.
Supporting today’s rally in Chinese stocks is an influx of foreign buying. Overseas investors purchased a net 19 billion yuan ($2.7 billion) of onshore stocks via the trading links with Hong Kong, the biggest daily inflow since December 2021.
Japan’s Nikkei Stock Index today closed slightly lower. Japanese stocks were in a holding pattern today, awaiting interest rate decisions Wednesday from the Federal Reserve and on Friday from the Bank of Japan. Weakness in Japanese cosmetics firms weighed on the overall market after Piper Sandler downgraded Estee Lauder on Monday to neutral from overweight on downside risks such as weakness in China. On the positive side, Japanese companies that supply Apple rose after Bloomberg reported that Apple is asking suppliers to produce about 85 million new iPhones this year, about the same as last year. Also, defense-related stocks may move higher after Kyodo reported after the close that the Japanese government is making preparations to ease a ban on exporting defense equipment jointly developed with other countries to third nations.
Pre-Market U.S. Stock Movers
Walmart (WMT) rose more than +1% in pre-market trading after Piper Sandler upgraded the stock to overweight from neutral.
General Electric (GE) climbed more than +3% in pre-market trading after reporting Q2 adjusted revenue of $15.90 billion, better than the consensus of $14.73 billion, and raised its full-year adjusted free cash flow to $4.1 billion-$4.6 billion from a previous forecast of $3.6 billion-$4.2 billion.
Verizon Communications (VZ) is up more than +2% in pre-market trading after reporting Q2 adjusted EPS of $1.21, stronger than the consensus of $1.16.
NXP Semiconductors (NXPI) gained more than +1% in pre-market trading after reporting Q2 revenue of $3.30 billion, above the consensus of $3.21 billion, and forecast Q3 revenue of $3.30 billion-$3.50 billion, the midpoint well above the consensus of $3.31 billion..
U.S.-listed Chinese stocks rallied in pre-market trading after China’s pledge to support the economy bolstered speculation that fresh stimulus measures were on the way. As a result, Alibaba Group Holding (BABA), Baidu (BIDU), PDD Holdings (PDD), NetEase (NTES), and JD.com (JD) are all up more than +1%.
Datadog (DDOG) climbed more than +3% in pre-market trading after Wolfe Research upgraded the stock to outperform from peer perform.
F5 Inc (FFIV) jumped more than +8% in pre-market trading after reporting Q3 net revenue of $702.6 million, above the consensus of $699.3 million, and said it was “confident in our ability to achieve our target of double-digit non-GAAP earnings growth for fiscal year 2023.”
Alaska Air Group (ALK) tumbled more than -4% in pre-market trading after warning that declining airfares can hurt Q3 results and that there was a softening in demand for domestic travel. Other airline stocks fell as well, with United Airlines Holdings (UAL), American Airlines Group (AAL), Delta Air Lines (DAL), and Southwest Airlines (LUV) down more than -1%.
Rackspace Technology (RXT) dropped more than -4% in pre-market trading after Citigroup downgraded the stock to sell from neutral, saying the valuation does not reflect the estimated downside potential.
Danaher (DHR) fell more than -5% in pre-market trading after reporting Q2 adjusted free cash flow of $1.59 billion, below the consensus of $1.73 billion.
Raytheon Technologies (RTX) slid more than -3% in pre-market trading after cutting its full-year free cash flow estimate to $4.3 billion from a previous estimate of $4.8 billion, below the consensus of $4.82 billion.
Goldman Sachs (GS) slid nearly -1% in pre-market trading after Citigroup downgraded the stock to neutral from buy.
Today’s U.S. Earnings Reports (7/25/2023)
3M Co (MMM), Alaska Air Group Inc (ALK), Alphabet Inc (GOOGL), Archer-Daniels-Midland Co (ADM), Avery Dennison Corp (AVY), Biogen Inc (BIIB), Chubb Ltd (CB), Corning Inc (GLW), CoStar Group Inc (CSGP), Danaher Corp (DHR), Dover Corp (DOV), Dow Inc (DOW), EQT Corp (EQT), GE HealthCare Technologies Inc (GEHC), General Electric Co (GE), General Motors Co (GM), Invesco Ltd (IVZ), Kimberly-Clark Corp (KMB), Lamb Weston Holdings Inc (LW), Microsoft Corp (MSFT), Moody's Corp (MCO), MSCI Inc (MSCI), NextEra Energy Inc (NEE), Nucor Corp (NUE), NVR Inc (NVR), PACCAR Inc (PCAR), PulteGroup Inc (PHM), Raytheon Technologies Corp (RTX), Robert Half Inc (RHI), Sherwin-Williams Co/The (SHW), Texas Instruments Inc (TXN), Universal Health Services Inc (UHS), Verizon Communications Inc (VZ), Visa Inc (V), Waste Management Inc (WM).
More Stock Market News from Barchart
ROKU Earnings: Iron Condor Could See 27% Return On RiskS&P Futures Tick Higher Ahead of FOMC Meeting, Microsoft and Alphabet Earnings on TapStocks End Moderately Higher as Earnings Season Heats Up$1.08 Billion?? Here’s How Much Money the Powerball Winner Actually Won
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other airline stocks fell as well, with United Airlines Holdings (UAL), American Airlines Group (AAL), Delta Air Lines (DAL), and Southwest Airlines (LUV) down more than -1%. The ruling Communist Party’s 24-member Politburo, China’s top decision-making body led by President Xi Jinping, promised “counter-cyclical” policies, which imply an easing bias. Also, defense-related stocks may move higher after Kyodo reported after the close that the Japanese government is making preparations to ease a ban on exporting defense equipment jointly developed with other countries to third nations.
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Other airline stocks fell as well, with United Airlines Holdings (UAL), American Airlines Group (AAL), Delta Air Lines (DAL), and Southwest Airlines (LUV) down more than -1%. Chinese stocks rose sharply today as market sentiment improved after this week’s Politburo meeting laid out a pre-growth tone that was more dovish than markets expected. General Electric (GE) climbed more than +3% in pre-market trading after reporting Q2 adjusted revenue of $15.90 billion, better than the consensus of $14.73 billion, and raised its full-year adjusted free cash flow to $4.1 billion-$4.6 billion from a previous forecast of $3.6 billion-$4.2 billion.
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Other airline stocks fell as well, with United Airlines Holdings (UAL), American Airlines Group (AAL), Delta Air Lines (DAL), and Southwest Airlines (LUV) down more than -1%. Global stock bourses have carryover support from today’s rally in China’s Shanghai Composite Stock Index by more than +2% as market sentiment improved after Chinese leaders at this week’s Politburo meeting laid out a pre-growth tone that was more dovish than markets expected. NXP Semiconductors (NXPI) gained more than +1% in pre-market trading after reporting Q2 revenue of $3.30 billion, above the consensus of $3.21 billion, and forecast Q3 revenue of $3.30 billion-$3.50 billion, the midpoint well above the consensus of $3.31 billion.. U.S.-listed Chinese stocks rallied in pre-market trading after China’s pledge to support the economy bolstered speculation that fresh stimulus measures were on the way.
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Other airline stocks fell as well, with United Airlines Holdings (UAL), American Airlines Group (AAL), Delta Air Lines (DAL), and Southwest Airlines (LUV) down more than -1%. Stock indexes this morning are slightly higher ahead of a raft of mega-cap stock earnings results, with Microsoft and Alphabet due to report their first earnings since the AI craze began after today’s close. China’s Shanghai Composite today rallied to a 1-week high and closed sharply higher.
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2410.0
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2023-07-24 00:00:00 UTC
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FedEx pilots reject tentative deal, supervised talks likely
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AAL
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https://www.nasdaq.com/articles/fedex-pilots-reject-tentative-deal-supervised-talks-likely
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nan
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nan
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Adds FedEx comment, details on other pilot contracts, share price, PIX
July 24 (Reuters) - FedEx pilots have rejected a tentative contract deal with the parcel delivery firm and the two sides will reopen negotiations, likely under the supervision of the National Mediation Board, the company and the pilots' union said on Monday.
The Air Line Pilots Association (ALPA) did not detail the reasons for the rejection or the vote tally. FedEx FDX.Nsaid the pilot union's vote will "have no impact on our service."
FedEx shares were near flat in midday trading, down 0.4% to $258.69.
"Our members have spoken and we will now regroup," Captain Chris Norman, FedEx ALPA chair, said in a statement. The union represents 6,000 FedEx pilots.
The tentative FedEx deal included a 30% pay increase and a 30% increase to the pilots' legacy pensions.
Earlier this month United Airlines UAL.O and its pilots - also represented by ALPA -- announced a tentative deal that included a cumulative pay increase of up to 40.2%.
American Airlines AAL.O and the Allied Pilots Association are revising their tentative deal following the United agreement. Over the weekend, American Airlines pilots indefinitely postponed their ratification vote after the airline boosted its offer.
With fewer pilots and rebounding demand, U.S. unions have enjoyed enhanced bargaining power in negotiationsduring the part year.
United Airlines pilots reach labor agreement, boost pay https://www.reuters.com/business/aerospace-defense/united-airlines-pilots-reach-agreement-principle-receive-about-35-pay-increase-2023-07-15/
American Airlines pilots seek better contract ahead of vote https://www.reuters.com/business/aerospace-defense/american-airlines-pilot-union-work-improvements-tentative-contract-agreement-2023-07-19/
(Reporting by Priyamvada C in Bengaluru and Lisa Baertlein in Los Angeles; Editing by Devika Syamnath and Susan Heavey)
((lisa.baertlein@reuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O and the Allied Pilots Association are revising their tentative deal following the United agreement. Earlier this month United Airlines UAL.O and its pilots - also represented by ALPA -- announced a tentative deal that included a cumulative pay increase of up to 40.2%. With fewer pilots and rebounding demand, U.S. unions have enjoyed enhanced bargaining power in negotiationsduring the part year.
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American Airlines AAL.O and the Allied Pilots Association are revising their tentative deal following the United agreement. The tentative FedEx deal included a 30% pay increase and a 30% increase to the pilots' legacy pensions. Earlier this month United Airlines UAL.O and its pilots - also represented by ALPA -- announced a tentative deal that included a cumulative pay increase of up to 40.2%.
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American Airlines AAL.O and the Allied Pilots Association are revising their tentative deal following the United agreement. Adds FedEx comment, details on other pilot contracts, share price, PIX July 24 (Reuters) - FedEx pilots have rejected a tentative contract deal with the parcel delivery firm and the two sides will reopen negotiations, likely under the supervision of the National Mediation Board, the company and the pilots' union said on Monday. Earlier this month United Airlines UAL.O and its pilots - also represented by ALPA -- announced a tentative deal that included a cumulative pay increase of up to 40.2%.
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American Airlines AAL.O and the Allied Pilots Association are revising their tentative deal following the United agreement. The union represents 6,000 FedEx pilots. Earlier this month United Airlines UAL.O and its pilots - also represented by ALPA -- announced a tentative deal that included a cumulative pay increase of up to 40.2%.
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2411.0
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2023-07-24 00:00:00 UTC
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Oshkosh and EagleBank have been highlighted as Zacks Bull and Bear of the Day
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AAL
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https://www.nasdaq.com/articles/oshkosh-and-eaglebank-have-been-highlighted-as-zacks-bull-and-bear-of-the-day
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nan
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nan
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For Immediate Release
Chicago, IL – July 24, 2023 – Zacks Equity Research shares Oshkosh OSK as the Bull of the Day and Eagle Bancorp EGBN as the Bear of the Day. In addition, Zacks Equity Research provides analysis on United Airlines UAL, Delta Air Lines DAL and American Airlines AAL.
Here is a synopsis of all five stocks.
Bull of the Day:
Finally, after a scorching hot July for most of the country as well as the stock market, things have cooled a bit. A two-day pullback on Wall Street has folks reaching for their shopping list. That means that plenty of the names which were pushing up through all-time highs in the middle of last week have come down off their highs. You may be tempted to jump in and buy everything with both hands. You have to make sure you look before you leap. Not every name out there is worth your hard-earned cash.
One way to mitigate your long-term risk is by buying stocks with strong earnings trends. Lucky for you, the Zacks Rank offers up a cheat sheet, a Cliff’s Notes of sorts to get right to the root of the issue. Stocks in the good graces of our Zacks Rank have the strongest earnings trends when compared to the rest of the broad market.
Oshkosh is currently in the good graces of our Zacks Rank, checking in with a Zacks Rank #1 (Strong Buy). Established in 1917, WI-based Oshkosh Corporation is a producer and seller of a varied range of vehicle bodies and specialty vehicles. It is also engaged in equipment financing and leasing solutions for its customers, primarily through third-party funding arrangements.
The reason for the favorable Zacks Rank is that over the last week alone, analysts have come out and increased their earnings estimates for the current quarter, next quarter, and current year. Look back over the last thirty days, and you’ll see analysts also increasing their estimates for next year. The bullish moves have pushed up our Zacks Consensus Estimates for the current year from $5.53 to $6.11 while next year’s number is up from $7.50 to $7.62.
That $6.11 current year Zacks Consensus Estimate is good for 76.59% growth, with next year coming in at 24.71%. That’s on sales growth of 5.5% this year and 5% next year.
Bear of the Day:
There’s no question that the stock market has been red hot. All year, tech stocks have been screaming off the lows. There was a big bump in the road though. That bump came in the way of some very high-profile negativity in the banking sector. Most notably, smaller regional banks took an absolute dive after the bankruptcy of Silicon Valley Bank.
For the astute investor, it was a great time to come in and scoop up some bank stocks off the lows. It was truly a “throwing the baby out with the bathwater” scenario, as so many great banks lost tons in market value. Now that the dust has settled, a lot of those banks have rallied back to pre-panic levels. It may feel tempting to run out and buy more bank shares.
Look for banks with the strongest earnings trends and try to avoid those with the weakest trends. It could mean that profits are at risk in the intermediate term. One such stock is today’s Bear of the Day, Eagle Bancorp. EAGLE BANCORP is the holding company for EagleBank. The Bank is headquartered in Bethesda, Maryland, and conducts full service commercial banking services through nine offices, located in Montgomery County, Maryland and Washington, D.C. The Company focuses on building relationships with businesses, professionals and individuals in its marketplace.
Eagle is a Zacks Rank #5 (Strong Sell) in the Banks – Northeast industry which ranks in the Bottom 4% of our Zacks Industry Rank. The reason for the unfavorable rank is that over the last thirty days, analysts have cut their earnings estimates for the current quarter, next quarter, current year and next year. The bearish sentiment has cut our Zacks Consensus Estimate for the current year down from $4.47 to $2.93 while next year’s number is off from $4.50 to $3.77.
Additional content:
What to Make of Airline Earnings So Far
Results from some of the leading airline companies are in, and we can identify some broad trends therein.
Trend number one is international travel has come roaring back. And it isn’t just the Pacific region, though that is benefiting from China and Japan opening up, as well as alliances with local operators. Although Europe is experiencing heat waves, that doesn’t seem to be deterring travelers. South America too is going strong.
The second trend is that the recovery seems to be broad-based, across leisure and business.
Pent-up demand for international travel is the strongest driver of leisure travel. The lifting of pandemic-related restrictions and testing is really pushing it, particularly on the international side. The trend is currently expected to continue for a while, as people usually make their travel plans in advance. The hybrid work environment is also a driver for leisure travel because of the flexibility it allows. The segment will also benefit as people divert funds from other discretionary activities to catch up on travel.
Business travel is also coming back, as pandemic-related measures are removed. The hybrid work environment is a slight negative for business travel because people are not as easily available to do physical meetings. But this situation continues to evolve and more people continue to come back. 2024 could be when things normalize to a great extent.
As far as profitability is concerned, the situation is positive because jet fuel prices have dropped substantially. Additionally, capacity adds have been slower of late as suppliers struggle with supply chain issues, labor costs, etc. Limited capacity and surging demand is the recipe for stronger pricing, and lower fuel cost offers flexibility to operators to lower prices without sacrificing margins, if the economy does take a turn for the worse. Airport capacity is also a sticking factor, and this is leading to increased demand for widebody aircraft that can carry more passengers per flight.
Here's a quick recap of three airlines:
United Airlines Holdings, Inc.
The Zacks Rank #3 (Hold) company beat the Zacks Consensus earnings estimate by 26.1%, which came on top of a revenue beat of 1.8%. The full-year guidance for per share earnings was raised by a dollar to $11-$12.
The strong results were attributed to ongoing strength in its international business, as it continues to expand its global network and increase connectivity at new locations. In order to make the most of the growing demand in the Pacific region, it announced new flights to Manila, Hong Kong, Taipei and Tokyo. The company has placed the largest ever order for widebody aircraft with Boeing in December last year. Additionally, it has implemented the United Next program to deploy technology and other measures to bring down cost.
UAL estimates for 2023 and 20242 are up a respective 5% and 3%.
Delta Air Lines, Inc.
#2 (Buy) ranked Delta beat the Zacks Consensus revenue estimate by 3.9% and earnings estimate by 10.7%. Management raised the 2023 outlook to $6-$7 and maintained free cash flow expectation of $3 billion.
Despite a 17% increase in capacity, total revenue per available seat mile (TRASM increased 1%, driven by international passenger revenue, which grew 61%. The greatest strength was in Southern European destinations, but both the Pacific region and South America/Caribbean were also up strongly. Delta is seeing declining non-fuel unit costs as we move through the year, driven by scale efficiencies and double-digit decline in fuel cost.
The 2023 estimate is up nearly 21% while the 2024 estimate is up 6% in the last 30 days.
American Airlines Group Inc.
American Airlines beat on revenue by 2.3% and on earnings by 21.5%. The Zacks Rank #3 company’s full-year earnings guidance was raised to between $3.00 and $3.75 a share.
Like the others, American is seeing significant declines in fuel cost. But unlike them, it expects labor costs to increase in the near term (pilots are going to be paid on par with United and flight attendants are looking for 35% pay hikes). The airline also expects a decline in the revenue per seat mile as it runs more flights during the current quarter. Therefore, the near-term outlook spoke to increased uncertainty and hit share prices.
AAL estimates are up 5% for 2023 and 3% for 2024 in the last 30 days.
Bottom Line
There are several positive factors driving airlines stocks right now, not the least of which is the economic growth we’ve had over the last few years that was not supported by normal business activity. Now that pandemic-era restrictions are lifted, the expansion in the economy should generate growth in travel. While these factors are positive for all airlines, those with international exposure and pricing power are no doubt the ones that will outshine others.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Eagle Bancorp, Inc. (EGBN) : Free Stock Analysis Report
Oshkosh Corporation (OSK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, Zacks Equity Research provides analysis on United Airlines UAL, Delta Air Lines DAL and American Airlines AAL. AAL estimates are up 5% for 2023 and 3% for 2024 in the last 30 days. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Eagle Bancorp, Inc. (EGBN) : Free Stock Analysis Report Oshkosh Corporation (OSK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In addition, Zacks Equity Research provides analysis on United Airlines UAL, Delta Air Lines DAL and American Airlines AAL. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Eagle Bancorp, Inc. (EGBN) : Free Stock Analysis Report Oshkosh Corporation (OSK) : Free Stock Analysis Report To read this article on Zacks.com click here. AAL estimates are up 5% for 2023 and 3% for 2024 in the last 30 days.
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Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Eagle Bancorp, Inc. (EGBN) : Free Stock Analysis Report Oshkosh Corporation (OSK) : Free Stock Analysis Report To read this article on Zacks.com click here. In addition, Zacks Equity Research provides analysis on United Airlines UAL, Delta Air Lines DAL and American Airlines AAL. AAL estimates are up 5% for 2023 and 3% for 2024 in the last 30 days.
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In addition, Zacks Equity Research provides analysis on United Airlines UAL, Delta Air Lines DAL and American Airlines AAL. AAL estimates are up 5% for 2023 and 3% for 2024 in the last 30 days. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Eagle Bancorp, Inc. (EGBN) : Free Stock Analysis Report Oshkosh Corporation (OSK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2412.0
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2023-07-24 00:00:00 UTC
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Validea Detailed Fundamental Analysis - AAL
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AAL
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https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-aal-1
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nan
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nan
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. This strategy looks for companies returning cash to shareholders via dividends, buybacks and debt paydown.
AMERICAN AIRLINES GROUP INC (AAL) is a large-cap value stock in the Airline industry. The rating using this strategy is 70% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
UNIVERSE: PASS
NET PAYOUT YIELD: FAIL
QUALITY AND DEBT: PASS
VALUATION: PASS
RELATIVE STRENGTH: PASS
SHAREHOLDER YIELD: FAIL
Detailed Analysis of AMERICAN AIRLINES GROUP INC
AAL Guru Analysis
AAL Fundamental Analysis
More Information on Meb Faber
Meb Faber Portfolio
About Meb Faber: Meb Faber is the founder of Cambria Investments. His research has covered a wide spectrum of the investment world, including topics like shareholder yield, trend following, global asset allocation and home country bias. His shareholder yield strategy, which is based on his book "Shareholder Yield" and forms the basis for an ETF of the same name, looks for companies that are focused on creating value for shareholders by returning cash to them in the form of dividends, share buybacks and debt paydown. Meb is also the author of 4 other books and numerous white papers on investing related topics.
Additional Research Links
Top Large-Cap Growth Stocks
Factor-Based Stock Portfolios
Dividend Aristocrats 2023
High Insider Ownership Stocks
Top S&P 500 Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. AMERICAN AIRLINES GROUP INC (AAL) is a large-cap value stock in the Airline industry.
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Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Meb Faber Meb Faber Portfolio About Meb Faber: Meb Faber is the founder of Cambria Investments. Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL).
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Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Meb Faber Meb Faber Portfolio About Meb Faber: Meb Faber is the founder of Cambria Investments. Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber.
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Meb Faber Meb Faber Portfolio About Meb Faber: Meb Faber is the founder of Cambria Investments. Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber.
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2413.0
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2023-07-24 00:00:00 UTC
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Amplats H1 profit falls sharply, new CEO announcement 'imminent'
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AAL
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https://www.nasdaq.com/articles/amplats-h1-profit-falls-sharply-new-ceo-announcement-imminent
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nan
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nan
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Adds CEO comment on successor's appointment in paras 3-4
July 24 (Reuters) - South Africa's Anglo American Platinum AMSJ.J on Monday posted a 71% decline in half-year profit due to weaker platinum group metal (PGM) prices and lower production.
Amplats' headline earnings per share (HEPS) - the main measure of corporate profit in South Africa - fell to 29.84 rand ($1.66) in the half-year that ended June 30, from 101.40 rand a year ago.
Amplats CEO Natascha Viljoen, who will soon leave the company to join Newmont CorpNEM.Nas chief operating officer, said the appointment of her successor was imminent.
"The process is quite robust and the announcement is imminent," Viljoen said on a media call, without giving a date.
The world's top PGM company by value said its realised basket price per PGM ounce of $1,885 was 29% lower compared to the same period last year.
Refined PGM production from Amplats' owned production decreased by 13% to 1.7 million ounces, due to planned maintenance and asset integrity work at its processing operations, as well as the impact of South Africa's electricity shortages.
Amplats declared a dividend of 12 rand per share, down from 81 rand per share during the same period last year, returning 3.2 billion rand to shareholders.
($1 = 17.9924 rand)
(Reporting by Nelson Banya Editing by Bernadette Baum and Louise Heavens)
((Nelson.Banya@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds CEO comment on successor's appointment in paras 3-4 July 24 (Reuters) - South Africa's Anglo American Platinum AMSJ.J on Monday posted a 71% decline in half-year profit due to weaker platinum group metal (PGM) prices and lower production. Amplats CEO Natascha Viljoen, who will soon leave the company to join Newmont CorpNEM.Nas chief operating officer, said the appointment of her successor was imminent. "The process is quite robust and the announcement is imminent," Viljoen said on a media call, without giving a date.
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Adds CEO comment on successor's appointment in paras 3-4 July 24 (Reuters) - South Africa's Anglo American Platinum AMSJ.J on Monday posted a 71% decline in half-year profit due to weaker platinum group metal (PGM) prices and lower production. Refined PGM production from Amplats' owned production decreased by 13% to 1.7 million ounces, due to planned maintenance and asset integrity work at its processing operations, as well as the impact of South Africa's electricity shortages. Amplats declared a dividend of 12 rand per share, down from 81 rand per share during the same period last year, returning 3.2 billion rand to shareholders.
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Adds CEO comment on successor's appointment in paras 3-4 July 24 (Reuters) - South Africa's Anglo American Platinum AMSJ.J on Monday posted a 71% decline in half-year profit due to weaker platinum group metal (PGM) prices and lower production. Amplats' headline earnings per share (HEPS) - the main measure of corporate profit in South Africa - fell to 29.84 rand ($1.66) in the half-year that ended June 30, from 101.40 rand a year ago. Amplats declared a dividend of 12 rand per share, down from 81 rand per share during the same period last year, returning 3.2 billion rand to shareholders.
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Adds CEO comment on successor's appointment in paras 3-4 July 24 (Reuters) - South Africa's Anglo American Platinum AMSJ.J on Monday posted a 71% decline in half-year profit due to weaker platinum group metal (PGM) prices and lower production. Amplats' headline earnings per share (HEPS) - the main measure of corporate profit in South Africa - fell to 29.84 rand ($1.66) in the half-year that ended June 30, from 101.40 rand a year ago. Amplats CEO Natascha Viljoen, who will soon leave the company to join Newmont CorpNEM.Nas chief operating officer, said the appointment of her successor was imminent.
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2414.0
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2023-07-24 00:00:00 UTC
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S.Africa's Amplats posts 71% fall in half-year profit
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AAL
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https://www.nasdaq.com/articles/s.africas-amplats-posts-71-fall-in-half-year-profit
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nan
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nan
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July 24 (Reuters) - South Africa's Anglo American Platinum AMSJ.J on Monday posted a 71% decline in half-year profit due to weaker platinum group metal (PGM) prices and lower production.
Amplats' headline earnings per share (HEPS) - the main measure of corporate profit in South Africa - fell to 29.84 rand ($1.66) in the half-year that ended June 30, from 101.40 rand a year ago.
($1 = 17.9760 rand)
(Reporting by Nelson Banya Editing by Bernadette Baum)
((Nelson.Banya@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
July 24 (Reuters) - South Africa's Anglo American Platinum AMSJ.J on Monday posted a 71% decline in half-year profit due to weaker platinum group metal (PGM) prices and lower production. Amplats' headline earnings per share (HEPS) - the main measure of corporate profit in South Africa - fell to 29.84 rand ($1.66) in the half-year that ended June 30, from 101.40 rand a year ago. ($1 = 17.9760 rand) (Reporting by Nelson Banya Editing by Bernadette Baum) ((Nelson.Banya@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 24 (Reuters) - South Africa's Anglo American Platinum AMSJ.J on Monday posted a 71% decline in half-year profit due to weaker platinum group metal (PGM) prices and lower production. Amplats' headline earnings per share (HEPS) - the main measure of corporate profit in South Africa - fell to 29.84 rand ($1.66) in the half-year that ended June 30, from 101.40 rand a year ago. ($1 = 17.9760 rand) (Reporting by Nelson Banya Editing by Bernadette Baum) ((Nelson.Banya@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 24 (Reuters) - South Africa's Anglo American Platinum AMSJ.J on Monday posted a 71% decline in half-year profit due to weaker platinum group metal (PGM) prices and lower production. Amplats' headline earnings per share (HEPS) - the main measure of corporate profit in South Africa - fell to 29.84 rand ($1.66) in the half-year that ended June 30, from 101.40 rand a year ago. ($1 = 17.9760 rand) (Reporting by Nelson Banya Editing by Bernadette Baum) ((Nelson.Banya@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 24 (Reuters) - South Africa's Anglo American Platinum AMSJ.J on Monday posted a 71% decline in half-year profit due to weaker platinum group metal (PGM) prices and lower production. Amplats' headline earnings per share (HEPS) - the main measure of corporate profit in South Africa - fell to 29.84 rand ($1.66) in the half-year that ended June 30, from 101.40 rand a year ago. ($1 = 17.9760 rand) (Reporting by Nelson Banya Editing by Bernadette Baum) ((Nelson.Banya@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2415.0
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2023-07-23 00:00:00 UTC
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United Airlines Stock Is a High-Risk, High-Reward Buy
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AAL
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https://www.nasdaq.com/articles/united-airlines-stock-is-a-high-risk-high-reward-buy
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
United Airlines (NYSE:UAL) stock had a muted reaction to record earnings this week.
The company earned $881 million, $2.66 per share, under GAAP, on revenue of $25.6 billion for the three months ending in June. This compared with a loss of $1.05 billion, $3.22 per share, a year earlier, as total revenue jumped 30%.
United reported non-GAAP earnings of $3.24 per share and a pre-tax margin of 9.8%, as it paid down $1 billion in high-coupon debt.
Either the stock is an enormous bargain, or there’s something going on below the surface for investors to worry about.
A Closer Look at UAL Stock
Airline stocks were volatile before COVID, but the pandemic buried many, including United.
The company still has $19.6 billion in net debt, under GAAP, which turned $3.8 billion of operating cash flow to just $2 billion in free cash flow during the June quarter. The debt will take years more to clear.
Then there are basic operations in a time of accelerating climate change. United’s hub at Newark was hit hard by storms around New York in late June, creating gridlock and cancelling flights across the network.
Dealing with the problem will mean scheduling fewer flights, especially to Newark, which United had just made its international gateway. United now handles 57% of all flights there.
After first blaming the Federal Aviation Administration for its problems, CEO Scott Kirby backed down, apologizing to Transportation Secretary Pete Buttigieg. It didn’t help when Kirby flew to meet the crisis on a private jet.
Fuel prices are volatile, and United’s recent contract with its pilots will increase pressure on earnings. The agreement raises some salaries as much as 40% and will cost $10 billion over four years. The airline acted because the whole industry faces a pilot shortage.
The Bull Case
The UAL stock price is attracting bargain hunters. The airline’s expansion has been a financial success, and new routes to Asia will keep it growing. United starts flying direct to Manila in October and is also expanding service to Japan, Hong Kong, and Taipei.
Tipranks currently lists 11 analysts following United, with 6 saying buy and just 1 saying sell. The average forecast of 19 analysts a Yahoo saw earnings averaging $9.73 this year and $11.19 per share next year, with half of them recently hiking their estimates.
Small wonder that our Charles Munyi recently called United one of three large cap stocks to buy now. Airlines may be stumbling, but their stocks are not.
The Bottom Line
If interest rates have topped out and the tech rally is broadening, United stock should benefit.
Most airline stocks are still dirt cheap. The PE of Delta Airlines (NYSE:DAL) is below 11 and that of American Airlines (NYSE:AAL) is below 7.
“God willing and the creek don’t rise,” as the saying goes, United is a buy here.
The problem is that God doesn’t seem willing, and the creek is rising. Climate change is creating uncertainty, and wars aren’t helping.
The case for United is based on growing international travel, especially to Asia. It’s also based on Kirby getting a handle on operating problems, which is also uncertain.
But where there are big risks, there are also big rewards. The potential rewards with United are substantial.
As of this writing, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack.
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The post United Airlines Stock Is a High-Risk, High-Reward Buy appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The PE of Delta Airlines (NYSE:DAL) is below 11 and that of American Airlines (NYSE:AAL) is below 7. United’s hub at Newark was hit hard by storms around New York in late June, creating gridlock and cancelling flights across the network. More From InvestorPlace ChatGPT IPO Could Shock the World, Make This Move Before the Announcement Musk’s “Project Omega” May Be Set to Mint New Millionaires.
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The PE of Delta Airlines (NYSE:DAL) is below 11 and that of American Airlines (NYSE:AAL) is below 7. InvestorPlace - Stock Market News, Stock Advice & Trading Tips United Airlines (NYSE:UAL) stock had a muted reaction to record earnings this week. A Closer Look at UAL Stock Airline stocks were volatile before COVID, but the pandemic buried many, including United.
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The PE of Delta Airlines (NYSE:DAL) is below 11 and that of American Airlines (NYSE:AAL) is below 7. InvestorPlace - Stock Market News, Stock Advice & Trading Tips United Airlines (NYSE:UAL) stock had a muted reaction to record earnings this week. A Closer Look at UAL Stock Airline stocks were volatile before COVID, but the pandemic buried many, including United.
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The PE of Delta Airlines (NYSE:DAL) is below 11 and that of American Airlines (NYSE:AAL) is below 7. InvestorPlace - Stock Market News, Stock Advice & Trading Tips United Airlines (NYSE:UAL) stock had a muted reaction to record earnings this week. This compared with a loss of $1.05 billion, $3.22 per share, a year earlier, as total revenue jumped 30%.
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2416.0
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2023-07-21 00:00:00 UTC
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Susquehanna Maintains American Airlines Group (AAL) Neutral Recommendation
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AAL
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https://www.nasdaq.com/articles/susquehanna-maintains-american-airlines-group-aal-neutral-recommendation-1
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nan
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nan
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Fintel reports that on July 21, 2023, Susquehanna maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation.
Analyst Price Forecast Suggests 2.11% Upside
As of July 6, 2023, the average one-year price target for American Airlines Group is 17.79. The forecasts range from a low of 11.11 to a high of $27.30. The average price target represents an increase of 2.11% from its latest reported closing price of 17.42.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Airlines Group is 51,177MM, a decrease of 3.25%. The projected annual non-GAAP EPS is 1.52.
What is the Fund Sentiment?
There are 1036 funds or institutions reporting positions in American Airlines Group. This is an increase of 40 owner(s) or 4.02% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 6.81%. Total shares owned by institutions increased in the last three months by 28.53% to 508,964K shares.
The put/call ratio of AAL is 2.74, indicating a bearish outlook.
What are Other Shareholders Doing?
Bank Julius Baer & Co. Ltd, Zurich holds 96,300K shares representing 14.75% ownership of the company. In it's prior filing, the firm reported owning 98K shares, representing an increase of 99.90%. The firm increased its portfolio allocation in AAL by 12.90% over the last quarter.
Primecap Management holds 37,738K shares representing 5.78% ownership of the company. In it's prior filing, the firm reported owning 38,099K shares, representing a decrease of 0.95%. The firm increased its portfolio allocation in AAL by 9.40% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 20,146K shares representing 3.09% ownership of the company. In it's prior filing, the firm reported owning 19,733K shares, representing an increase of 2.05%. The firm increased its portfolio allocation in AAL by 9.31% over the last quarter.
VPMCX - Vanguard PRIMECAP Fund Investor Shares holds 19,321K shares representing 2.96% ownership of the company. In it's prior filing, the firm reported owning 19,365K shares, representing a decrease of 0.23%. The firm increased its portfolio allocation in AAL by 9.19% over the last quarter.
Renaissance Technologies holds 15,723K shares representing 2.41% ownership of the company. In it's prior filing, the firm reported owning 9,251K shares, representing an increase of 41.16%. The firm increased its portfolio allocation in AAL by 91.15% over the last quarter.
American Airlines Group Background Information
(This description is provided by the company.)
American Airlines Group Inc. is the parent company of American Airlines. Together with regional partner American Eagle, American Airlines offers an average of nearly 6,700 flights daily to 350 destinations in 50 countries. American Airlines is a founding member of the oneworld® alliance, whose members and members-elect offer nearly 14,250 flights daily to 1,000 destinations in 150 countries.
Additional reading:
AMERICAN AIRLINES REPORTS SECOND-QUARTER 2023 FINANCIAL RESULTS
Investor Relations Update July 20, 2023
Certain of the statements contained in this presentation should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigat
Supplemental Agreement No. 19, dated as of April 23, 2023, to Purchase Agreement No. 3219 dated as of October 15, 2008, by and between American Airlines, Inc. and The Boeing Company.*
Supplemental Agreement No. 29, dated as of May 23, 2023, to Purchase Agreement No. 03735 dated as of February 1, 2013, between American Airlines, Inc. and the Boeing Company.*
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on July 21, 2023, Susquehanna maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 6.81%. The put/call ratio of AAL is 2.74, indicating a bearish outlook.
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Fintel reports that on July 21, 2023, Susquehanna maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 6.81%. The put/call ratio of AAL is 2.74, indicating a bearish outlook.
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Fintel reports that on July 21, 2023, Susquehanna maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 6.81%. The put/call ratio of AAL is 2.74, indicating a bearish outlook.
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Fintel reports that on July 21, 2023, Susquehanna maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 6.81%. The put/call ratio of AAL is 2.74, indicating a bearish outlook.
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2417.0
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2023-07-21 00:00:00 UTC
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FOCUS-Shifting trends in travel demand bedevil US airlines
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AAL
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https://www.nasdaq.com/articles/focus-shifting-trends-in-travel-demand-bedevil-us-airlines
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nan
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nan
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By Rajesh Kumar Singh
CHICAGO, July 21 (Reuters) - Consumers continue to splurge on air tickets. But travel patterns are shifting so often, partly due to work-life changes wrought by the pandemic, that airlines must constantly adapt on booking plane seats and remain cautious in forecasting demand and revenue.
That situation can result in lost revenue for the carriers if they guess wrong on the best time to sell seats, while their caution in estimating revenue is taking a toll on their shares as Wall Street interprets that as a sign of slowing consumer demand.
American Airlines AAL.O Chief Financial Officer Devon May attributed the challenge to the difficulty in forecasting demand. For investors, this has raised the risk of confusion.
"We're getting better at it, but demand trends are still a little bit different today than they were back in 2019," he told Reuters.
Worries about future demand were a reason American Airlines' stock fell 6% on Thursday even after it raised its full-year earnings forecast. Investors were concerned the hike was modest following the company's performance in the second quarter, analysts said.
American is not alone in this struggle. In March, United Airlines UAL.O had to change its earnings forecast for the first quarter from a profit to a loss because it overestimated demand for business travel in January and February.
In the June quarter, United held back seats for summer travel and made them available closer to the peak travel dates at higher fares in a bid to maximize revenue. It was a risky bet as booking data from the previous quarter had shown customers were booking trips well in advance.
United's move paid off, helping it generate record quarterly revenue. The company's chief commercial officer, Andrew Nocella, said that was another sign that seasonal travel patterns have changed.
"The summer peak period is more spread out relative to the past," he said on Thursday on a conference call.
Airlines can no longer afford to rely on historical booking data because hybrid or remote work arrangements have allowed customers more flexibility to plan travel, said Henry Harteveldt, founder of travel consultancy Atmosphere Research Group.
As a result, airlines are leaning more on artificial intelligence and are hiring data scientists to better align seat sales, ticket pricing and flight scheduling with changing booking trends, he said.
Yet airlines face the risk of failing to keep pace with ever-shifting travel patterns and missing financial forecasts.
"This is a very difficult path to walk," Harteveldt said. "Airlines are going to take a more conservative view of things."
INVESTOR CAUTION
That caution is stoking worries among investors, who are not sure travel spending will hold up.
Rahul Sen Sharma, co-CEO at financial services firm Indxx, said investors are concerned corporate travel has still not recovered to pre-pandemic levels, making airlines highly reliant on price-sensitive leisure travelers.
"The high value customers haven't really come back," said Sharma, who tracks airline stocks. "They're the ones that drive profitability."
Airlines, however, say business travel has changed fundamentally since the pandemic. Delta Air Lines DAL.N CEO Ed Bastian said while people are not traveling a lot for work, hybrid work arrangements have led to a 50% jump in personal trips versus the pre-pandemic period.
American's CFO, May, cited frequent upgrades to the industry's earnings forecasts as evidence that the urge to travel remains strong.
"It's a different demand profile than what we've seen in the past," he said. "But our systems are catching up."
Booking trends for international trips have also changed.
Delta said Southern Europe's summer travel season is now longer than it used to be, prompting the airline to adjust its network.
Delta has extended schedules for its seasonal flights to many European destinations into November and December. It also plans to resume services in February and March instead of April and May.
"We're going to have a really great summer," Delta President Glen Hauenstein said. "Our goal is to have a great winter as well.
(Reporting by Rajesh Kumar Singh in Chicago Editing by Ben Klayman and Matthew Lewis)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O Chief Financial Officer Devon May attributed the challenge to the difficulty in forecasting demand. But travel patterns are shifting so often, partly due to work-life changes wrought by the pandemic, that airlines must constantly adapt on booking plane seats and remain cautious in forecasting demand and revenue. In March, United Airlines UAL.O had to change its earnings forecast for the first quarter from a profit to a loss because it overestimated demand for business travel in January and February.
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American Airlines AAL.O Chief Financial Officer Devon May attributed the challenge to the difficulty in forecasting demand. By Rajesh Kumar Singh CHICAGO, July 21 (Reuters) - Consumers continue to splurge on air tickets. Airlines can no longer afford to rely on historical booking data because hybrid or remote work arrangements have allowed customers more flexibility to plan travel, said Henry Harteveldt, founder of travel consultancy Atmosphere Research Group.
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American Airlines AAL.O Chief Financial Officer Devon May attributed the challenge to the difficulty in forecasting demand. But travel patterns are shifting so often, partly due to work-life changes wrought by the pandemic, that airlines must constantly adapt on booking plane seats and remain cautious in forecasting demand and revenue. In March, United Airlines UAL.O had to change its earnings forecast for the first quarter from a profit to a loss because it overestimated demand for business travel in January and February.
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American Airlines AAL.O Chief Financial Officer Devon May attributed the challenge to the difficulty in forecasting demand. But travel patterns are shifting so often, partly due to work-life changes wrought by the pandemic, that airlines must constantly adapt on booking plane seats and remain cautious in forecasting demand and revenue. Worries about future demand were a reason American Airlines' stock fell 6% on Thursday even after it raised its full-year earnings forecast.
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2418.0
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2023-07-21 00:00:00 UTC
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What to Make of Airlines Earnings So Far
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AAL
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https://www.nasdaq.com/articles/what-to-make-of-airlines-earnings-so-far
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nan
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nan
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Results from some of the leading airline companies are in, and we can identify some broad trends therein.
Trend number one is international travel has come roaring back. And it isn’t just the Pacific region, though that is benefiting from China and Japan opening up, as well as alliances with local operators. Although Europe is experiencing heat waves, that doesn’t seem to be deterring travelers. South America too is going strong.
The second trend is that the recovery seems to be broad-based, across leisure and business.
Pent-up demand for international travel is the strongest driver of leisure travel. The lifting of pandemic-related restrictions and testing is really pushing it, particularly on the international side. The trend is currently expected to continue for a while, as people usually make their travel plans in advance. The hybrid work environment is also a driver for leisure travel because of the flexibility it allows. The segment will also benefit as people divert funds from other discretionary activity to catch up on travel.
Business travel is also coming back, as pandemic-related measures are removed. The hybrid work environment is a slight negative for business travel because people are not as easily available to do physical meetings. But this situation continues to evolve and more people continue to come back. 2024 could be when things normalize to a great extent.
As far as profitability is concerned, the situation is positive because jet fuel prices have dropped substantially. Additionally, capacity adds have been slower of late as suppliers struggle with supply chain issues, labor costs, etc. Limited capacity and surging demand is the recipe for stronger pricing, and lower fuel cost offers flexibility to operators to lower prices without sacrificing margins, if the economy does take a turn for the worse. Airport capacity is also a sticking factor, and this is leading to increased demand for widebody aircraft, that can carry more passengers per flight.
Here's a quick recap of three airlines:
United Airlines Holdings, Inc. (UAL)
The Zacks Rank #3 (Hold) company beat the Zacks Consensus earnings estimate by 26.1%, which came on top of a revenue beat of 1.8%. The full-year guidance for per share earnings was raised by a dollar to $11-$12.
The strong results were attributed to ongoing strength in its international business, as it continues to expand its global network and increase connectivity at new locations. In order to make the most of the growing demand in the Pacific region, it announced new flights to Manila, Hong Kong, Taipei and Tokyo. The company has placed the largest ever order for widebody aircraft with Boeing in December last year. Additionally, it has implemented the United Next program to deploy technology and other measures to bring down cost.
UAL estimates for 2023 and 20242 are up a respective 5% and 3%.
Delta Air Lines, Inc. (DAL)
#2 (Buy) ranked Delta beat the Zacks Consensus revenue estimate by 3.9% and earnings estimate by 10.7%. Management raised the 2023 outlook to $6-$7 and maintained free cash flow expectation of $3 billion.
Despite a 17% increase in capacity, total revenue per available seat mile (TRASM increased 1%, driven by international passenger revenue, which grew 61%. The greatest strength was in Southern European destinations, but both the Pacific region and South America/Caribbean were also up strongly. Delta is seeing declining non-fuel unit costs as we move through the year, driven by scale efficiencies and double-digit decline in fuel cost.
The 2023 estimate is up nearly 21% while the 2024 estimate is up 6% in the last 30 days.
American Airlines Group Inc. (AAL)
American Airlines beat on revenue by 2.3% and on earnings by 21.5%. The Zacks Rank #3 company’s full-year earnings guidance was raised to between $3.00 and $3.75 a share.
Like the others, American is seeing significant decline in fuel cost. But unlike them, it expects labor costs to increase in the near term (pilots are going to be paid on par with United and flight attendants are looking for 35% pay hikes). The airline also expects a decline in the revenue per seat mile as it runs more flights during the current quarter. Therefore, the near-term outlook spoke to increased uncertainty and hit share prices.
AAL estimates are up 5% for 2023 and 3% for 2024 in the last 30 days.
Bottom Line
There are several positive factors driving airlines stocks right now, not the least of which is the economic growth we’ve had over the last few years that was not supported by normal business activity. Now that pandemic-era restrictions are lifted, the expansion in the economy should generate growth in travel. While these factors are positive for all airlines, those with international exposure and pricing power are no doubt the ones that will outshine others.
One-Month Price Performance
Image Source: Zacks Investment Research
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc. (AAL) American Airlines beat on revenue by 2.3% and on earnings by 21.5%. AAL estimates are up 5% for 2023 and 3% for 2024 in the last 30 days. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. (AAL) American Airlines beat on revenue by 2.3% and on earnings by 21.5%. AAL estimates are up 5% for 2023 and 3% for 2024 in the last 30 days.
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Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. (AAL) American Airlines beat on revenue by 2.3% and on earnings by 21.5%. AAL estimates are up 5% for 2023 and 3% for 2024 in the last 30 days.
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American Airlines Group Inc. (AAL) American Airlines beat on revenue by 2.3% and on earnings by 21.5%. AAL estimates are up 5% for 2023 and 3% for 2024 in the last 30 days. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2419.0
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2023-07-21 00:00:00 UTC
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Airline Stock Roundup: AAL & UAL's Q2 Earnings Beat, ALGT's June Traffic & More
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-aal-uals-q2-earnings-beat-algts-june-traffic-more
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In the past week, sector heavyweights like American Airlines AAL and United Airlines UAL reported earnings for second-quarter 2023. Results were aided by upbeat air travel demand and declining fuel costs. Driven by the upbeat air-travel demand scenario, both UAL and AAL lifted their respective earnings per share views for the current year.
Allegiant Travel Company ALGT reported impressive traffic numbers for June on the back of buoyant passenger volumes. Delta Air Lines DAL and partner China Eastern Airlines simplified the baggage check-in procedure for China flights in a passenger-friendly move.
Recap of the Past Week’s Most Important Stories
1. American Airlines’ second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. Results were aided by lower costs and higher revenues. Operating revenues of $14,055 million increased 4.7% year over year. The top line beat the Zacks Consensus Estimate of $13,736.3 million. Passenger revenues, accounting for 92.3% of the top line, increased to $12,978 million from $12,223 million a year ago, driven by strong air travel demand, mainly on the domestic front. Demand was particularly strong in June on the back of an increase in close-in bookings.
Management raised its earnings per share outlook for the current year, driven by rosy air-travel-demand scenario. The company now expects 2023 earnings (on an adjusted basis) in the band of $3-$3.75 per share (earlier view was in the $2.5-$3.5 per share range). American Airlines currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
2. United Airlines reported second-quarter 2023 earnings per share of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year. Operating revenues of $14,178 million beat the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues increased 17.1% year over year due to upbeat air travel demand. The year-over-year increase in the top line was driven by a 20.1% rise in passenger revenues. UAL expects 2023 earnings per share in the band of $11-$12 (prior view: $10-$12).
3. At Allegiant, scheduled traffic (measured in revenue passenger miles) increased 2.3% from the June 2022 levels. Capacity (measured in available seat miles) for scheduled service inched up 2.1% from the June 2022 reading.
With the traffic increase outweighing capacity expansion, the load factor (percentage of seats filled by passengers) in May improved 0.2 points to 90.1% from the year-ago period’s levels. For the total system (including scheduled service and fixed fee contract), Allegiant carried 3.7% more passengers in June from the year-ago period’s level.
Total departures (scheduled services) increased 2.3% in June from the year-ago levels. However, its average stage length (miles) fell 0.2%. Fuel price per gallon in June is estimated to have been $2.64 compared with $2.58 in May. Fuel price per gallon for the second quarter is expected to be $2.69.
More traffic updates are available in the previous week’s write-up.
4. The customers of Delta who are traveling from the United States to interior China via China Eastern's connecting flights at Shanghai-Pudong International Airport can now check in their bags to their final destination in China. This customer-friendly procedure is called TransChina. We remind investors that in 2018, Delta, with the aid of partner China Eastern, became the first foreign carrier in China to have offered this service. Due to COVID-19, this procedure was suspended in 2020. Delta aims to resume this as the first foreign airline on Jul 17.
Price Performance
The following table shows the price movement of the major airline players over the past week and during the past six months.
Image Source: Zacks Investment Research
The table above shows that airline stocks exhibited a mixed trend with respect to price in the past week. The NYSE ARCA Airline Index declined marginally over the past week to $76.58. Over the course of the past six months, the sector tracker has surged 21.5%.
What's Next in the Airline Space?
Investors will look forward to the second-quarter 2023 earnings report of Alaska Air Group ALK, scheduled to be out on Jul 25.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
Allegiant Travel Company (ALGT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the past week, sector heavyweights like American Airlines AAL and United Airlines UAL reported earnings for second-quarter 2023. Driven by the upbeat air-travel demand scenario, both UAL and AAL lifted their respective earnings per share views for the current year. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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In the past week, sector heavyweights like American Airlines AAL and United Airlines UAL reported earnings for second-quarter 2023. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here. Driven by the upbeat air-travel demand scenario, both UAL and AAL lifted their respective earnings per share views for the current year.
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In the past week, sector heavyweights like American Airlines AAL and United Airlines UAL reported earnings for second-quarter 2023. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here. Driven by the upbeat air-travel demand scenario, both UAL and AAL lifted their respective earnings per share views for the current year.
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In the past week, sector heavyweights like American Airlines AAL and United Airlines UAL reported earnings for second-quarter 2023. Driven by the upbeat air-travel demand scenario, both UAL and AAL lifted their respective earnings per share views for the current year. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2420.0
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2023-07-20 00:00:00 UTC
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Q2 Beats for J&J, American; Jobless Claims, Philly Fed Lower
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AAL
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https://www.nasdaq.com/articles/q2-beats-for-jj-american-jobless-claims-philly-fed-lower
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Today being Thursday, we see new Initial Jobless Claims for last week hitting the tape. These numbers continue to surprise to the downside, putting up 228K new claims; a range of 230-240K were expected by analysts. Today’s headline is the lowest tally since cycle lows in mid-May of 225K. Up until the middle of last month, initial claims had been nudging higher — over 260+ three weeks in a row — which seemed to match headwinds in the overall labor market. Yet employment apparently remains uncommonly resilient.
Similarly with Continuing Claims (reported a week in arrears from new claims): 1.754 million, while up +33K from the slightly downwardly revised 1.722 million the previous week, are still lower than analyst estimates and remain stubbornly below 1.8 million — now the case for the 10th straight week. While this resiliency is very good in guarding our economy against recession, it is also fodder for the Fed to consider continuing to raise interest rates to more fully snuff out inflation, which strong employment tends to promote.
Also in today’s pre-market, a new Philly Fed survey is out: -13.5 makes it 11 straight negative prints for this productivity metric for the sixth-biggest city in the U.S. While off cycle lows of -31.3 back in April of this year, it is nevertheless the second-straight month sub-13. Following an Empire State read earlier this week that was also lower, we are seeing a slowing in manufacturing which is consistent with a slowing economy — again bringing the Fed’s decisions into focus. This looks to be the fulcrum for the Fed to consider: higher employment versus lower productivity.
Johnson & Johnson JNJ is out with Q2 earnings results ahead of today’s open, with solid beats on the top-line — $25.53 billion in revenues, +3.43% over the Zacks consensus — and bottom: earnings of $2.80 per share, +7.28% above expectations. Strength in its MedTech space was a catalyst for the healthcare giant, and as a result, J&J has increased its full-year guidance projections. Shares are up slightly on the news, but still down nearly -10% year to date, vastly underperforming the markets. For more on JNJ’s earnings, click here.
American Airlines AAL similarly left Q2 estimates in the dust this morning: earnings of $1.92 per share on all-time record quarterly revenues of $14.06 billion for the quarter easily surpassed the $1.58 per share and $13.74 billion expected. Full-year earnings guidance was increased on the top-end to a range of $3.00-3.75 per share. Yet shares are trading -1.5% on the news, as some airfares are reportedly coming down (peak airfare now passed?) and questions about a new labor deal for American pilots currently lie in the cut.
After the opening bell this morning, we’ll take a look at June Existing Home Sales, which are expected to tick down slightly to 4.2 million — basically in-line with the previous few months, but well below the 5+ million existing home sales numbers we were seeing back in June of last year. Also, Leading Economic Indicators for June are expected to prove incrementally to -0.6% fro -0.7% reported a month ago.
Questions or comments about this article and/or author? Click here>>
7 Best Stocks for the Next 30 Days
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Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand-picked 7 your immediate attention.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Invesco QQQ (QQQ): ETF Research Reports
SPDR S&P 500 ETF (SPY): ETF Research Reports
SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL similarly left Q2 estimates in the dust this morning: earnings of $1.92 per share on all-time record quarterly revenues of $14.06 billion for the quarter easily surpassed the $1.58 per share and $13.74 billion expected. Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here. Up until the middle of last month, initial claims had been nudging higher — over 260+ three weeks in a row — which seemed to match headwinds in the overall labor market.
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Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here. American Airlines AAL similarly left Q2 estimates in the dust this morning: earnings of $1.92 per share on all-time record quarterly revenues of $14.06 billion for the quarter easily surpassed the $1.58 per share and $13.74 billion expected. Similarly with Continuing Claims (reported a week in arrears from new claims): 1.754 million, while up +33K from the slightly downwardly revised 1.722 million the previous week, are still lower than analyst estimates and remain stubbornly below 1.8 million — now the case for the 10th straight week.
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Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here. American Airlines AAL similarly left Q2 estimates in the dust this morning: earnings of $1.92 per share on all-time record quarterly revenues of $14.06 billion for the quarter easily surpassed the $1.58 per share and $13.74 billion expected. Similarly with Continuing Claims (reported a week in arrears from new claims): 1.754 million, while up +33K from the slightly downwardly revised 1.722 million the previous week, are still lower than analyst estimates and remain stubbornly below 1.8 million — now the case for the 10th straight week.
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American Airlines AAL similarly left Q2 estimates in the dust this morning: earnings of $1.92 per share on all-time record quarterly revenues of $14.06 billion for the quarter easily surpassed the $1.58 per share and $13.74 billion expected. Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here. Similarly with Continuing Claims (reported a week in arrears from new claims): 1.754 million, while up +33K from the slightly downwardly revised 1.722 million the previous week, are still lower than analyst estimates and remain stubbornly below 1.8 million — now the case for the 10th straight week.
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2421.0
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2023-07-20 00:00:00 UTC
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Notable Thursday Option Activity: PPG, AAL, ULTA
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AAL
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https://www.nasdaq.com/articles/notable-thursday-option-activity%3A-ppg-aal-ulta
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in PPG Industries Inc (Symbol: PPG), where a total volume of 12,289 contracts has been traded thus far today, a contract volume which is representative of approximately 1.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 85% of PPG's average daily trading volume over the past month, of 1.4 million shares. Particularly high volume was seen for the $142 strike put option expiring July 21, 2023, with 3,880 contracts trading so far today, representing approximately 388,000 underlying shares of PPG. Below is a chart showing PPG's trailing twelve month trading history, with the $142 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) options are showing a volume of 167,212 contracts thus far today. That number of contracts represents approximately 16.7 million underlying shares, working out to a sizeable 76.5% of AAL's average daily trading volume over the past month, of 21.9 million shares. Especially high volume was seen for the $18 strike call option expiring July 21, 2023, with 18,414 contracts trading so far today, representing approximately 1.8 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $18 strike highlighted in orange:
And Ulta Beauty Inc (Symbol: ULTA) options are showing a volume of 4,537 contracts thus far today. That number of contracts represents approximately 453,700 underlying shares, working out to a sizeable 68.5% of ULTA's average daily trading volume over the past month, of 662,035 shares. Particularly high volume was seen for the $465 strike put option expiring July 21, 2023, with 348 contracts trading so far today, representing approximately 34,800 underlying shares of ULTA. Below is a chart showing ULTA's trailing twelve month trading history, with the $465 strike highlighted in orange:
For the various different available expirations for PPG options, AAL options, or ULTA options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
Funds Holding HNR
FTI Average Annual Return
MITK YTD Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $18 strike call option expiring July 21, 2023, with 18,414 contracts trading so far today, representing approximately 1.8 million underlying shares of AAL. Below is a chart showing PPG's trailing twelve month trading history, with the $142 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 167,212 contracts thus far today. That number of contracts represents approximately 16.7 million underlying shares, working out to a sizeable 76.5% of AAL's average daily trading volume over the past month, of 21.9 million shares.
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That number of contracts represents approximately 16.7 million underlying shares, working out to a sizeable 76.5% of AAL's average daily trading volume over the past month, of 21.9 million shares. Especially high volume was seen for the $18 strike call option expiring July 21, 2023, with 18,414 contracts trading so far today, representing approximately 1.8 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $18 strike highlighted in orange: And Ulta Beauty Inc (Symbol: ULTA) options are showing a volume of 4,537 contracts thus far today.
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That number of contracts represents approximately 16.7 million underlying shares, working out to a sizeable 76.5% of AAL's average daily trading volume over the past month, of 21.9 million shares. Especially high volume was seen for the $18 strike call option expiring July 21, 2023, with 18,414 contracts trading so far today, representing approximately 1.8 million underlying shares of AAL. Below is a chart showing PPG's trailing twelve month trading history, with the $142 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 167,212 contracts thus far today.
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Below is a chart showing ULTA's trailing twelve month trading history, with the $465 strike highlighted in orange: For the various different available expirations for PPG options, AAL options, or ULTA options, visit StockOptionsChannel.com. Below is a chart showing PPG's trailing twelve month trading history, with the $142 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 167,212 contracts thus far today. That number of contracts represents approximately 16.7 million underlying shares, working out to a sizeable 76.5% of AAL's average daily trading volume over the past month, of 21.9 million shares.
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2422.0
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2023-07-20 00:00:00 UTC
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American Airlines Beats Earnings, Thinking Of Buying?
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AAL
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https://www.nasdaq.com/articles/american-airlines-beats-earnings-thinking-of-buying
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nan
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nan
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Airline giant American Airlines Group (NASDAQ: AAL) reported second-quarter 2023 earnings results. The stock is trading down 6% in early trading as investors digest the report, perhaps providing an opportunity for patient value investors to buy in.
Investing in momentum is one thing; investing before the momentum even hits a stock is another world completely. The United States economy seems to be all over the place when figuring out its direction for the coming quarters.
Now that earnings season kicks off for the summer, some pockets, such as banking stocks and consumer discretionary names, will give attentive buyers the chance to get in before momentum hits.
Within the airline's peer group, American is making its way into a long-term value investment, as markets have left the stock behind along with analysts.
Today's earnings can be a prerequisite for investors to begin to understand what will be driving a potential rally in the coming months.
Earnings expectations for the future are disconnected from analyst price targets. This dynamic may be changing soon. Those considering buying American Airlines should be wary of timing before the clock runs out.
Value Time Bomb
American Airlines stock is down by 4.0% during Thursday's trading session, a confusing reaction to an otherwise bullish earnings report. Investors will get a stunning blow when reading the leading headline within the company's press release.
Record quarterly revenue of $14.1 billion, representing a twelve-month advance of 4.7% when markets were expecting net sales to decline. This is important for existing - and on the fence - investors because, as volumes and sales recover along with margins, a surprise gift from management may be in the works.
The airline decided to suspend its dividend with reasonable cause, as the COVID-19 pandemic hit the industry with its best shot, drying up free cash flows for all operators.
Today, however, American has generated an excess of $1.2 billion in free cash flow for the quarter, which significantly aids the climb back to affording a dividend payout once again.
Considering that historically speaking, Americans had paid an average dividend yield of 1.0% to 1.5%, investors may be on the brink of a dividend comeback.
Domestic flight demand, as well as a steady recovery in international markets due to COVID-19 restrictions easing, are pushing the outlook for the full-year 2023 financials even higher than previously pointed out.
The new range for earnings per share is set to fall between $3.00 and $3.75 for the period, representing a massive increase from fiscal 2022 EPS of $0.19.
Sporting a gigantic growth prospect, American Airlines becomes a severely underrated stock in the sector, as markets and analysts seem to be missing the big picture.
Closing the Gap
Investors can close the loop on just how much of a value play American Airlines could be; by spreading out valuation multiples across the entire sector, the actual discount to growth begins to shine for American investors.
By looking at the forward price-to-earnings ratio, rather than a traditional P/E, investors can start to assess where markets are valuing the future perceived earnings for a given company.
Considering that American Airlines is looking to post a near 30x growth in earnings for the next twelve months, it would be fair to assume that markets are looking to jump all over the stock, right?
Competitors like Southwest Airlines (NYSE: LUV) and Delta Airlines (NYSE: DAL) are trading at significantly higher valuation multiples than American, at 9.8x and 6.5x, respectively.
This compares to American's 5.6x forward P/E; this can be taken as a sign of favoritism in markets gravitating away from American and toward competitors. However, it also opens up the way for longer-term value rotations, especially now that earnings expectations have turned so explosive.
By paying attention to where markets are ignorant, investors can gain an immediate edge in future growth in the stock.
A further vote of confidence stems from the airline's balance sheets, where Fitch ratings have decided to boost the credit rating by two notches.
Showcasing its new B+ rating by the agency will begin to attract more institutional-level investments into the stock. As financials improve further - along with the desirable free cash flow - investors can hope to gain from both dividends and appreciation in the stock.
Considering that American financials have increased significantly since the dark days of COVID-19 lockdowns, the stock should have been following suit, yet the chart shows a stagnant stock price as a beast waiting to be awakened.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Airline giant American Airlines Group (NASDAQ: AAL) reported second-quarter 2023 earnings results. Now that earnings season kicks off for the summer, some pockets, such as banking stocks and consumer discretionary names, will give attentive buyers the chance to get in before momentum hits. Today, however, American has generated an excess of $1.2 billion in free cash flow for the quarter, which significantly aids the climb back to affording a dividend payout once again.
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Airline giant American Airlines Group (NASDAQ: AAL) reported second-quarter 2023 earnings results. Today, however, American has generated an excess of $1.2 billion in free cash flow for the quarter, which significantly aids the climb back to affording a dividend payout once again. Competitors like Southwest Airlines (NYSE: LUV) and Delta Airlines (NYSE: DAL) are trading at significantly higher valuation multiples than American, at 9.8x and 6.5x, respectively.
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Airline giant American Airlines Group (NASDAQ: AAL) reported second-quarter 2023 earnings results. Value Time Bomb American Airlines stock is down by 4.0% during Thursday's trading session, a confusing reaction to an otherwise bullish earnings report. Closing the Gap Investors can close the loop on just how much of a value play American Airlines could be; by spreading out valuation multiples across the entire sector, the actual discount to growth begins to shine for American investors.
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Airline giant American Airlines Group (NASDAQ: AAL) reported second-quarter 2023 earnings results. Within the airline's peer group, American is making its way into a long-term value investment, as markets have left the stock behind along with analysts. By looking at the forward price-to-earnings ratio, rather than a traditional P/E, investors can start to assess where markets are valuing the future perceived earnings for a given company.
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2423.0
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2023-07-20 00:00:00 UTC
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Aviation bill upping pilot retirement age to 67 passed by US House
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AAL
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https://www.nasdaq.com/articles/aviation-bill-upping-pilot-retirement-age-to-67-passed-by-us-house
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nan
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By David Shepardson
WASHINGTON, July 20 (Reuters) - The U.S. House of Representatives on Thursday voted to pass legislation that would raise the mandatory commercial pilot retirement age to 67 from 65 and make other aviation reforms, with the Senate now set to consider its own measure.
The vote in the Republican-led House was 351-69 to pass the bill that would reauthorize U.S. Federal Aviation Administration (FAA) aviation safety and infrastructure programs for the next five years.
The Air Line Pilots Association has said hiking the retirement age could cause airline scheduling and pilot training issues and require reopening pilot contracts. Current international rules would still prevent pilots older than 65 from flying in most countries outside the United States.
The Regional Airline Association supports the pilot age hike, saying it "allows retention of more experienced captains, who can in turn fly alongside and mentor new first officers, helping to stabilize attrition."
The White House said this week it opposed a House bill provision that would rescind a 2012 Transportation Department regulation requiring airlines to advertise full fares including government fees and taxes. The House measure also did not include a provision sought by President Joe Biden to compensate passengers for delays or set minimum airline seat sizes.
The House measure would bar airlines from charging fees to allow families to sit together on flights. The House opted to retain pilot training rules that were adopted after a 2009 fatal passenger airplane crash near Buffalo. The bill did not include language allowing additional round-trip flights at Washington Reagan National Airport as sought by Delta Air Lines DAL.N.
Airlines for America, an industry trade group, praised the House passage and said it "underscores the need to hire more air traffic controllers to ensure our airspace is adequately staffed."
The Democratic-led Senate Appropriations Committee unanimously approved funding for the FAA on Thursday. That measure would allow the agency to hire 1,800 additional controllers next year. The Senate Commerce Committee could take up the FAA reauthorization bill as early as next week.
The Senate bill has been held up by a dispute over whether to change pilot training requirements that were imposed after the February 2009 crash of Colgan Air Flight 3407 near Buffalo that killed 50 people, the last major U.S. passenger airline fatal crash.
US House to weigh bill allowing older pilots, other aviation reforms
(Reporting by David Shepardson; Editing by Will Dunham and Jonathan Oatis)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Shepardson WASHINGTON, July 20 (Reuters) - The U.S. House of Representatives on Thursday voted to pass legislation that would raise the mandatory commercial pilot retirement age to 67 from 65 and make other aviation reforms, with the Senate now set to consider its own measure. The Regional Airline Association supports the pilot age hike, saying it "allows retention of more experienced captains, who can in turn fly alongside and mentor new first officers, helping to stabilize attrition." Airlines for America, an industry trade group, praised the House passage and said it "underscores the need to hire more air traffic controllers to ensure our airspace is adequately staffed."
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The Air Line Pilots Association has said hiking the retirement age could cause airline scheduling and pilot training issues and require reopening pilot contracts. The Senate bill has been held up by a dispute over whether to change pilot training requirements that were imposed after the February 2009 crash of Colgan Air Flight 3407 near Buffalo that killed 50 people, the last major U.S. passenger airline fatal crash. US House to weigh bill allowing older pilots, other aviation reforms (Reporting by David Shepardson; Editing by Will Dunham and Jonathan Oatis) ((David.Shepardson@thomsonreuters.com; 2028988324;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Shepardson WASHINGTON, July 20 (Reuters) - The U.S. House of Representatives on Thursday voted to pass legislation that would raise the mandatory commercial pilot retirement age to 67 from 65 and make other aviation reforms, with the Senate now set to consider its own measure. The Air Line Pilots Association has said hiking the retirement age could cause airline scheduling and pilot training issues and require reopening pilot contracts. The Senate bill has been held up by a dispute over whether to change pilot training requirements that were imposed after the February 2009 crash of Colgan Air Flight 3407 near Buffalo that killed 50 people, the last major U.S. passenger airline fatal crash.
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By David Shepardson WASHINGTON, July 20 (Reuters) - The U.S. House of Representatives on Thursday voted to pass legislation that would raise the mandatory commercial pilot retirement age to 67 from 65 and make other aviation reforms, with the Senate now set to consider its own measure. The Air Line Pilots Association has said hiking the retirement age could cause airline scheduling and pilot training issues and require reopening pilot contracts. The White House said this week it opposed a House bill provision that would rescind a 2012 Transportation Department regulation requiring airlines to advertise full fares including government fees and taxes.
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2424.0
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2023-07-20 00:00:00 UTC
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Compared to Estimates, American Airlines (AAL) Q2 Earnings: A Look at Key Metrics
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AAL
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https://www.nasdaq.com/articles/compared-to-estimates-american-airlines-aal-q2-earnings%3A-a-look-at-key-metrics
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American Airlines (AAL) reported $14.06 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 4.7%. EPS of $1.92 for the same period compares to $0.76 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $13.74 billion, representing a surprise of +2.32%. The company delivered an EPS surprise of +21.52%, with the consensus EPS estimate being $1.58.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how American Airlines performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Operating cost per ASM excluding net special items and fuel - Total: 13.16 cents versus 13.26 cents estimated by four analysts on average.
Operating cost per ASM excluding net special items - Total: 17.06 cents versus the four-analyst average estimate of 17.35 cents.
Passenger load factor (percent) - Total: 86.2% compared to the 84.5% average estimate based on four analysts.
Average aircraft fuel price including related taxes - Total: 2.62 $/gal versus 2.65 $/gal estimated by four analysts on average.
Passenger revenue per ASM - Total: 18.63 cents compared to the 18.03 cents average estimate based on four analysts.
Total revenue per ASM - Total: 20.18 cents compared to the 19.77 cents average estimate based on four analysts.
Available seat miles - Total: 69658 million versus the four-analyst average estimate of 69138.45 million.
Yield - Total: 21.62 cents versus 21.46 cents estimated by three analysts on average.
Fuel consumption - Total: 1041 MGal compared to the 1054.41 MGal average estimate based on three analysts.
Revenue- Passenger: $12.98 billion versus $12.47 billion estimated by five analysts on average.
Revenue- Other: $880 million versus the four-analyst average estimate of $861.05 million. The reported number represents a year-over-year change of +1%.
Revenue- Cargo: $197 million versus the four-analyst average estimate of $271.25 million. The reported number represents a year-over-year change of -39.9%.
View all Key Company Metrics for American Airlines here>>>
Shares of American Airlines have returned +14.1% over the past month versus the Zacks S&P 500 composite's +3.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand-picked 7 your immediate attention.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL) reported $14.06 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 4.7%. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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American Airlines (AAL) reported $14.06 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 4.7%. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Here is how American Airlines performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Operating cost per ASM excluding net special items and fuel - Total: 13.16 cents versus 13.26 cents estimated by four analysts on average.
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American Airlines (AAL) reported $14.06 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 4.7%. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Here is how American Airlines performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Operating cost per ASM excluding net special items and fuel - Total: 13.16 cents versus 13.26 cents estimated by four analysts on average.
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American Airlines (AAL) reported $14.06 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 4.7%. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Here is how American Airlines performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Operating cost per ASM excluding net special items and fuel - Total: 13.16 cents versus 13.26 cents estimated by four analysts on average.
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2425.0
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2023-07-20 00:00:00 UTC
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American Airlines Slips Despite Impressive Q2 Results, Outlook
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AAL
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https://www.nasdaq.com/articles/american-airlines-slips-despite-impressive-q2-results-outlook
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nan
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(RTTNews) - American Airlines Group Inc. (AAL) shares are falling more than 6 percent on Thursday morning trade, despite reporting higher third-quarter results that came in above estimates. The company also raised its third-quarter and full-year earnings outlook.
In this space, on July 13th, Delta Air Lines Inc. (DAL) had raised its full-year earnings outlook and projected third-quarter earnings in the range of $2.20 - $2.50 per share on 11 - 14 percent growth in revenues.
Currently, shares are at $17.42, down 6.33 percent from the previous close of $18.60 on a volume of 21,576,991.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) shares are falling more than 6 percent on Thursday morning trade, despite reporting higher third-quarter results that came in above estimates. The company also raised its third-quarter and full-year earnings outlook. In this space, on July 13th, Delta Air Lines Inc. (DAL) had raised its full-year earnings outlook and projected third-quarter earnings in the range of $2.20 - $2.50 per share on 11 - 14 percent growth in revenues.
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(RTTNews) - American Airlines Group Inc. (AAL) shares are falling more than 6 percent on Thursday morning trade, despite reporting higher third-quarter results that came in above estimates. The company also raised its third-quarter and full-year earnings outlook. In this space, on July 13th, Delta Air Lines Inc. (DAL) had raised its full-year earnings outlook and projected third-quarter earnings in the range of $2.20 - $2.50 per share on 11 - 14 percent growth in revenues.
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(RTTNews) - American Airlines Group Inc. (AAL) shares are falling more than 6 percent on Thursday morning trade, despite reporting higher third-quarter results that came in above estimates. In this space, on July 13th, Delta Air Lines Inc. (DAL) had raised its full-year earnings outlook and projected third-quarter earnings in the range of $2.20 - $2.50 per share on 11 - 14 percent growth in revenues. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) shares are falling more than 6 percent on Thursday morning trade, despite reporting higher third-quarter results that came in above estimates. The company also raised its third-quarter and full-year earnings outlook. In this space, on July 13th, Delta Air Lines Inc. (DAL) had raised its full-year earnings outlook and projected third-quarter earnings in the range of $2.20 - $2.50 per share on 11 - 14 percent growth in revenues.
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2426.0
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2023-07-20 00:00:00 UTC
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Weekly Jobless Claims Below Expectations
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AAL
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https://www.nasdaq.com/articles/weekly-jobless-claims-below-expectations-0
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nan
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Today being Thursday, we see new Initial Jobless Claims for last week hitting the tape. These numbers continue to surprise to the downside, putting up 228K new claims; a range of 230-240K were expected by analysts. Today’s headline is the lowest tally since cycle lows in mid-May of 225K. Up until the middle of last month, initial claims had been nudging higher — over 260+ three weeks in a row — which seemed to match headwinds in the overall labor market. Yet employment apparently remains uncommonly resilient.
Similarly with Continuing Claims (reported a week in arrears from new claims): 1.754 million, while up +33K from the slightly downwardly revised 1.722 million the previous week, are still lower than analyst estimates and remain stubbornly below 1.8 million — now the case for the 10th straight week. While this resiliency is very good in guarding our economy against recession, it is also fodder for the Fed to consider continuing to raise interest rates to more fully snuff out inflation, which strong employment tends to promote.
Also in today’s pre-market, a new Philly Fed survey is out: -13.5 makes it 11 straight negative prints for this productivity metric for the sixth-biggest city in the U.S. While off cycle lows of -31.3 back in April of this year, it is nevertheless the second-straight month sub-13. Following an Empire State read earlier this week that was also lower, we are seeing a slowing in manufacturing which is consistent with a slowing economy — again bringing the Fed’s decisions into focus. This looks to be the fulcrum for the Fed to consider: higher employment versus lower productivity.
Johnson & Johnson JNJ is out with Q2 earnings results ahead of today’s open, with solid beats on the top-line — $25.53 billion in revenues, +3.43% over the Zacks consensus — and bottom: earnings of $2.80 per share, +7.28% above expectations. Strength in its MedTech space was a catalyst for the healthcare giant, and as a result, J&J has increased its full-year guidance projections. Shares are up slightly on the news, but still down nearly -10% year to date, vastly underperforming the markets.
American Airlines AAL similarly left Q2 estimates in the dust this morning: earnings of $1.92 per share on all-time record quarterly revenues of $14.06 billion for the quarter easily surpassed the $1.58 per share and $13.74 billion expected. Full-year earnings guidance was increased on the top-end to a range of $3.00-3.75 per share. Yet shares are trading -1.5% on the news, as some airfares are reportedly coming down (peak airfare now passed?) and questions about a new labor deal for American pilots currently lie in the cut.
After the opening bell this morning, we’ll take a look at June Existing Home Sales, which are expected to tick down slightly to 4.2 million — basically in-line with the previous few months, but well below the 5+ million existing home sales numbers we were seeing back in June of last year. Also, Leading Economic Indicators for June are expected to prove incrementally to -0.6% fro -0.7% reported a month ago.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL similarly left Q2 estimates in the dust this morning: earnings of $1.92 per share on all-time record quarterly revenues of $14.06 billion for the quarter easily surpassed the $1.58 per share and $13.74 billion expected. Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Up until the middle of last month, initial claims had been nudging higher — over 260+ three weeks in a row — which seemed to match headwinds in the overall labor market.
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Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL similarly left Q2 estimates in the dust this morning: earnings of $1.92 per share on all-time record quarterly revenues of $14.06 billion for the quarter easily surpassed the $1.58 per share and $13.74 billion expected. Similarly with Continuing Claims (reported a week in arrears from new claims): 1.754 million, while up +33K from the slightly downwardly revised 1.722 million the previous week, are still lower than analyst estimates and remain stubbornly below 1.8 million — now the case for the 10th straight week.
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Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL similarly left Q2 estimates in the dust this morning: earnings of $1.92 per share on all-time record quarterly revenues of $14.06 billion for the quarter easily surpassed the $1.58 per share and $13.74 billion expected. Similarly with Continuing Claims (reported a week in arrears from new claims): 1.754 million, while up +33K from the slightly downwardly revised 1.722 million the previous week, are still lower than analyst estimates and remain stubbornly below 1.8 million — now the case for the 10th straight week.
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American Airlines AAL similarly left Q2 estimates in the dust this morning: earnings of $1.92 per share on all-time record quarterly revenues of $14.06 billion for the quarter easily surpassed the $1.58 per share and $13.74 billion expected. Click to get this free report Johnson & Johnson (JNJ) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Similarly with Continuing Claims (reported a week in arrears from new claims): 1.754 million, while up +33K from the slightly downwardly revised 1.722 million the previous week, are still lower than analyst estimates and remain stubbornly below 1.8 million — now the case for the 10th straight week.
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2427.0
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2023-07-20 00:00:00 UTC
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US airlines see no letup in travel demand despite broader economic concerns
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AAL
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https://www.nasdaq.com/articles/us-airlines-see-no-letup-in-travel-demand-despite-broader-economic-concerns
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nan
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By Rajesh Kumar Singh
CHICAGO, July 20 (Reuters) - A rush among travelers to make up for lost time during the pandemic is producing bumper airline earnings. And executives at U.S. carriers don't see a letup in demand even as rising living costs stretch household budgets and add to worries about the industry's pricing power.
American Airlines AAL.O on Thursday raised its earnings forecast for 2023 after profit in the second quarter topped Wall Street estimates.
The Texas-based carrier is the latest to offer an upbeat outlook. United AirlinesUAL.O and Delta Air LinesDAL.N have also raised their earnings estimates as consumers cut spending on goods in favor of experiences.
"It's indicative of our belief that the economy is strong, demand is strong," American CEO Robert Isom said on an earnings call.
The number of passengers moving through airport checkpoints has been averaging above pre-pandemic levels since mid-May and hit a four-year high last month, U.S. Transportation Security Administration data showed.
International bookings are especially strong after the lifting of pandemic-related restrictions. Data from travel website Kayak, for example, shows searches by U.S.-based customers for summer travel to Europe are up 55% from last year.
Airlines say travel has become the topmost priority for consumers, but capacity constraints at airlines will not let them catch up with demand for anytime soon, helping sustain the post-pandemic travel boom.
These "very constraints and challenges are going to set the table for improved financial results for the airline industry," said United CEO Scott Kirby.
But with the U.S. central bank aggressively trying to tamp down inflation, airlines continue to face questions about travel spending.
Those concerns have not allowed airline shares to bounce back to pre-pandemic levels despite a rebound in the industry's revenue.
PRICING POWER WEAKENING?
Strong demand has bolstered airfares, allowing carriers to offset higher costs.
But inflation data shows airline ticket prices have peaked. American's earnings report reinforced that view as its total revenue per available seat mile, a proxy for pricing power, in the September quarter is forecast to be down about 4.5% to 6.5% from last year.
Shares of American and Delta were down 6% and 1.5%, respectively. United's shares were up 1%.
Airline executives say the drop in ticket prices is primarily a reflection of cooling fuel prices and higher capacity and not a result of waning demand. They point to frequent upgrades to airline earnings forecasts as an evidence of strong travel spending.
American Airlines shares drop on early signs of weakening pricing power
United Airlines posts record high quarterly earnings, lifts full-year outlook
Delta forecasts stronger earnings on post-pandemic travel boom
FACTBOX-Pilots seek new contracts with airlines amid booming travel demand
GRAPHIC-American Airlines revenue https://tmsnrt.rs/43tmopi
GRAPHIC-American Airlines earnings https://tmsnrt.rs/46ZNuaD
GRAPHIC-United Airlines Holdings revenue https://tmsnrt.rs/3pVZYPK
GRAPHIC-United Airlines Holdings earnings https://tmsnrt.rs/3O3hHg6
(Reporting by Rajesh Kumar Singh Editing by Nick Zieminski)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL.O on Thursday raised its earnings forecast for 2023 after profit in the second quarter topped Wall Street estimates. By Rajesh Kumar Singh CHICAGO, July 20 (Reuters) - A rush among travelers to make up for lost time during the pandemic is producing bumper airline earnings. The number of passengers moving through airport checkpoints has been averaging above pre-pandemic levels since mid-May and hit a four-year high last month, U.S. Transportation Security Administration data showed.
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American Airlines AAL.O on Thursday raised its earnings forecast for 2023 after profit in the second quarter topped Wall Street estimates. But inflation data shows airline ticket prices have peaked. Airline executives say the drop in ticket prices is primarily a reflection of cooling fuel prices and higher capacity and not a result of waning demand.
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American Airlines AAL.O on Thursday raised its earnings forecast for 2023 after profit in the second quarter topped Wall Street estimates. Airlines say travel has become the topmost priority for consumers, but capacity constraints at airlines will not let them catch up with demand for anytime soon, helping sustain the post-pandemic travel boom. They point to frequent upgrades to airline earnings forecasts as an evidence of strong travel spending.
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American Airlines AAL.O on Thursday raised its earnings forecast for 2023 after profit in the second quarter topped Wall Street estimates. But inflation data shows airline ticket prices have peaked. United's shares were up 1%.
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2428.0
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2023-07-20 00:00:00 UTC
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American Airlines Group Inc Q2 Profit Increases, beats estimates
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc-q2-profit-increases-beats-estimates
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nan
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(RTTNews) - American Airlines Group Inc (AAL) released earnings for its second quarter that increased from the same period last year and beat the Street estimates.
The company's earnings totaled $1.34 billion, or $1.88 per share. This compares with $476 million, or $0.68 per share, in last year's second quarter.
Excluding items, American Airlines Group Inc reported adjusted earnings of $1.37 billion or $1.92 per share for the period.
Analysts on average had expected the company to earn $1.58 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 4.8% to $14.06 billion from $13.42 billion last year.
American Airlines Group Inc earnings at a glance (GAAP) :
-Earnings (Q2): $1.34 Bln. vs. $476 Mln. last year. -EPS (Q2): $1.88 vs. $0.68 last year. -Analyst Estimate: $1.58 -Revenue (Q2): $14.06 Bln vs. $13.42 Bln last year.
-Guidance: Next quarter EPS guidance: $0.85 - $0.95 Full year EPS guidance: $3.00 - $3.75
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc (AAL) released earnings for its second quarter that increased from the same period last year and beat the Street estimates. Excluding items, American Airlines Group Inc reported adjusted earnings of $1.37 billion or $1.92 per share for the period. Analysts on average had expected the company to earn $1.58 per share, according to figures compiled by Thomson Reuters.
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(RTTNews) - American Airlines Group Inc (AAL) released earnings for its second quarter that increased from the same period last year and beat the Street estimates. Excluding items, American Airlines Group Inc reported adjusted earnings of $1.37 billion or $1.92 per share for the period. American Airlines Group Inc earnings at a glance (GAAP) : -Earnings (Q2): $1.34 Bln.
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(RTTNews) - American Airlines Group Inc (AAL) released earnings for its second quarter that increased from the same period last year and beat the Street estimates. Excluding items, American Airlines Group Inc reported adjusted earnings of $1.37 billion or $1.92 per share for the period. The company's revenue for the quarter rose 4.8% to $14.06 billion from $13.42 billion last year.
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(RTTNews) - American Airlines Group Inc (AAL) released earnings for its second quarter that increased from the same period last year and beat the Street estimates. The company's earnings totaled $1.34 billion, or $1.88 per share. Excluding items, American Airlines Group Inc reported adjusted earnings of $1.37 billion or $1.92 per share for the period.
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2429.0
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2023-07-20 00:00:00 UTC
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American Airlines Q2 Results Top Estimates; Lifts FY Profit View
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AAL
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https://www.nasdaq.com/articles/american-airlines-q2-results-top-estimates-lifts-fy-profit-view
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(RTTNews) - American Airlines Group Inc. (AAL) reported that its second quarter net income climbed to $1.34 billion or $1.88 per share from $476 million or $0.68 per share in the prior year.
"It was another fantastic quarter for American, driven by the hard work of our team to deliver a reliable operation for our customers and the continued strong demand for our product," said American's CEO Robert Isom.
Quarterly earnings per share, excluding net special items, were $1.92 compared to $0.76 last year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.58 per share for the second quarter. Analysts' estimates typically exclude special items.
Total operating revenues for the quarter rose to $14.06 billion from $13.42 billion in the prior year, driven by continued broad-based demand strength and American's completion factor performance in the quarter. Analysts expected revenue of $13.74 billion for the quarter.
The company expects its third-quarter 2023 adjusted earnings per share to be between $0.85 and $0.95. Analysts project third-quarter earnings of $0.90 per share.
American now expects its full-year 2023 adjusted earnings per share to be between $3.00 and $3.75. The company's forecasts include the estimated impact of anticipated new labor agreements. Analysts expect annual earnings of $3.08 per share.
The company said in May that it expected annual adjusted earnings per share to be between $2.50 and $3.50.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) reported that its second quarter net income climbed to $1.34 billion or $1.88 per share from $476 million or $0.68 per share in the prior year. Quarterly earnings per share, excluding net special items, were $1.92 compared to $0.76 last year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.58 per share for the second quarter.
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(RTTNews) - American Airlines Group Inc. (AAL) reported that its second quarter net income climbed to $1.34 billion or $1.88 per share from $476 million or $0.68 per share in the prior year. Quarterly earnings per share, excluding net special items, were $1.92 compared to $0.76 last year. Total operating revenues for the quarter rose to $14.06 billion from $13.42 billion in the prior year, driven by continued broad-based demand strength and American's completion factor performance in the quarter.
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(RTTNews) - American Airlines Group Inc. (AAL) reported that its second quarter net income climbed to $1.34 billion or $1.88 per share from $476 million or $0.68 per share in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.58 per share for the second quarter. The company expects its third-quarter 2023 adjusted earnings per share to be between $0.85 and $0.95.
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(RTTNews) - American Airlines Group Inc. (AAL) reported that its second quarter net income climbed to $1.34 billion or $1.88 per share from $476 million or $0.68 per share in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.58 per share for the second quarter. Analysts' estimates typically exclude special items.
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2430.0
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2023-07-20 00:00:00 UTC
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American Airlines Boosts FY23 Outlook As Q3 Results Top Estimates
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AAL
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https://www.nasdaq.com/articles/american-airlines-boosts-fy23-outlook-as-q3-results-top-estimates
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nan
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nan
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(RTTNews) - American Airlines Group, Inc. (AAL) reported Thursday a net profit for the second quarter that almost tripled from last year, reflecting operating revenue growth and lower operating expense, primarily aircraft fuel expenses. Adjusted earnings per share and quarterly operating revenues topped analysts' estimates. The company also raised its outlook for the full-year 2023.
"Our operation is performing at historically strong levels, and we have worked to refresh our fleet and build a comprehensive global network, all of which helped to produce record revenues in the second quarter," said CEO Robert Isom.
American and its regional partners operated nearly 500,000 flights in the second quarter, with an average load factor of approximately 86 percent.
In the second quarter, American achieved its best-ever April, May and June controllable completion factors and delivered 11 more combined zero-cancellation days versus the same period last year.
For the second quarter, net income soared to $1.34 billion or $1.88 per share from $476 million or $0.68 per share in the prior-year quarter.
Excluding items, adjusted earnings for the quarter was $1.92 per share, compared to $0.76 per share in the year-ago quarter.
On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $1.58 per share for the quarter. Analysts' estimates typically exclude special items.
Operating revenues for the quarter grew 4.7 percent to a record $14.06 billion from $13.42 billion in the same quarter last year, driven by continued broad-based demand strength and American's completion factor performance in the quarter. Analysts expected revenues of $13.74 billion for the quarter.
Looking ahead, the company expects adjusted earnings for the third quarter in a range of $0.85 to $0.95 per share, while the Street is looking for $0.90 per share.
For fiscal 2023, the company raised its adjusted earnings to a range of $3.00 to $3.75 per share from the prior forecast range of $2.50 to $3.50 per share. Analysts expect annual earnings of $3.08 per share.
"We will build on this momentum the rest of the year and continue to prioritize reliability, profitability, accountability and strengthening our balance sheet," Isom added.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group, Inc. (AAL) reported Thursday a net profit for the second quarter that almost tripled from last year, reflecting operating revenue growth and lower operating expense, primarily aircraft fuel expenses. "Our operation is performing at historically strong levels, and we have worked to refresh our fleet and build a comprehensive global network, all of which helped to produce record revenues in the second quarter," said CEO Robert Isom. In the second quarter, American achieved its best-ever April, May and June controllable completion factors and delivered 11 more combined zero-cancellation days versus the same period last year.
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(RTTNews) - American Airlines Group, Inc. (AAL) reported Thursday a net profit for the second quarter that almost tripled from last year, reflecting operating revenue growth and lower operating expense, primarily aircraft fuel expenses. Adjusted earnings per share and quarterly operating revenues topped analysts' estimates. Operating revenues for the quarter grew 4.7 percent to a record $14.06 billion from $13.42 billion in the same quarter last year, driven by continued broad-based demand strength and American's completion factor performance in the quarter.
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(RTTNews) - American Airlines Group, Inc. (AAL) reported Thursday a net profit for the second quarter that almost tripled from last year, reflecting operating revenue growth and lower operating expense, primarily aircraft fuel expenses. Excluding items, adjusted earnings for the quarter was $1.92 per share, compared to $0.76 per share in the year-ago quarter. Operating revenues for the quarter grew 4.7 percent to a record $14.06 billion from $13.42 billion in the same quarter last year, driven by continued broad-based demand strength and American's completion factor performance in the quarter.
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(RTTNews) - American Airlines Group, Inc. (AAL) reported Thursday a net profit for the second quarter that almost tripled from last year, reflecting operating revenue growth and lower operating expense, primarily aircraft fuel expenses. Operating revenues for the quarter grew 4.7 percent to a record $14.06 billion from $13.42 billion in the same quarter last year, driven by continued broad-based demand strength and American's completion factor performance in the quarter. Analysts expected revenues of $13.74 billion for the quarter.
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2431.0
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2023-07-20 00:00:00 UTC
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American Airlines raises 2023 profit forecast on travel boom
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AAL
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https://www.nasdaq.com/articles/american-airlines-raises-2023-profit-forecast-on-travel-boom
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nan
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nan
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Adds Q2 profit in paragraph 6
July 20 (Reuters) - American Airlines AAL.O raised its annual forecast for adjusted profit on Thursday, powered by strong demand for domestic and international travel despite fears of a looming economic slowdown.
Major airlines have been benefiting from an unprecedented surge in travel demand as consumers, faced with constrained budgets, cut expenditures on goods to spend on experiences.
Boosting profits, jet fuel costs in North America are down about 30% from a year ago, but there are signs flight fares might be cooling off.
The company said it expects an adjusted profit of $3.00 to $3.75 per share for 2023 compared with its prior outlook of $2.50 to $3.50 per share.
Peers United AirlinesUAL.O and Delta Air LinesDAL.N have also raised their 2023 profit expectations after reporting bumper earnings in the quarter.
American Airlines' net income for the second quarter ended June 30 was $1.34 billion, or $1.88 per share, compared with $476 million, or $0.68 per share, a year earlier.
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Arun Koyyur)
((Shivansh.Tiwary@thomsonreuters.com; +91 9708363192;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds Q2 profit in paragraph 6 July 20 (Reuters) - American Airlines AAL.O raised its annual forecast for adjusted profit on Thursday, powered by strong demand for domestic and international travel despite fears of a looming economic slowdown. Major airlines have been benefiting from an unprecedented surge in travel demand as consumers, faced with constrained budgets, cut expenditures on goods to spend on experiences. Boosting profits, jet fuel costs in North America are down about 30% from a year ago, but there are signs flight fares might be cooling off.
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Adds Q2 profit in paragraph 6 July 20 (Reuters) - American Airlines AAL.O raised its annual forecast for adjusted profit on Thursday, powered by strong demand for domestic and international travel despite fears of a looming economic slowdown. The company said it expects an adjusted profit of $3.00 to $3.75 per share for 2023 compared with its prior outlook of $2.50 to $3.50 per share. Peers United AirlinesUAL.O and Delta Air LinesDAL.N have also raised their 2023 profit expectations after reporting bumper earnings in the quarter.
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Adds Q2 profit in paragraph 6 July 20 (Reuters) - American Airlines AAL.O raised its annual forecast for adjusted profit on Thursday, powered by strong demand for domestic and international travel despite fears of a looming economic slowdown. The company said it expects an adjusted profit of $3.00 to $3.75 per share for 2023 compared with its prior outlook of $2.50 to $3.50 per share. American Airlines' net income for the second quarter ended June 30 was $1.34 billion, or $1.88 per share, compared with $476 million, or $0.68 per share, a year earlier.
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Adds Q2 profit in paragraph 6 July 20 (Reuters) - American Airlines AAL.O raised its annual forecast for adjusted profit on Thursday, powered by strong demand for domestic and international travel despite fears of a looming economic slowdown. Major airlines have been benefiting from an unprecedented surge in travel demand as consumers, faced with constrained budgets, cut expenditures on goods to spend on experiences. Boosting profits, jet fuel costs in North America are down about 30% from a year ago, but there are signs flight fares might be cooling off.
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2432.0
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2023-07-20 00:00:00 UTC
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American Airlines Group Q2 23 Earnings Conference Call At 8:30 AM ET
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-q2-23-earnings-conference-call-at-8%3A30-am-et
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nan
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nan
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(RTTNews) - American Airlines Group Inc (AAL) will host a conference call at 8:30 AM ET on July 20, 2023, to discuss Q2 23 earnings results.
To access the live webcast, log on to https://americanairlines.gcs-web.com/events/event-details/q2-2023-american-airlines-group-inc-earnings-conference-call
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc (AAL) will host a conference call at 8:30 AM ET on July 20, 2023, to discuss Q2 23 earnings results. To access the live webcast, log on to https://americanairlines.gcs-web.com/events/event-details/q2-2023-american-airlines-group-inc-earnings-conference-call The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc (AAL) will host a conference call at 8:30 AM ET on July 20, 2023, to discuss Q2 23 earnings results. To access the live webcast, log on to https://americanairlines.gcs-web.com/events/event-details/q2-2023-american-airlines-group-inc-earnings-conference-call The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc (AAL) will host a conference call at 8:30 AM ET on July 20, 2023, to discuss Q2 23 earnings results. To access the live webcast, log on to https://americanairlines.gcs-web.com/events/event-details/q2-2023-american-airlines-group-inc-earnings-conference-call The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc (AAL) will host a conference call at 8:30 AM ET on July 20, 2023, to discuss Q2 23 earnings results. To access the live webcast, log on to https://americanairlines.gcs-web.com/events/event-details/q2-2023-american-airlines-group-inc-earnings-conference-call The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2433.0
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2023-07-20 00:00:00 UTC
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European shares extend gains as traders digest mixed earnings
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AAL
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https://www.nasdaq.com/articles/european-shares-extend-gains-as-traders-digest-mixed-earnings
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nan
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nan
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By Amruta Khandekar
July 20 (Reuters) - European shares advanced on Thursday as investors assessed mixed earnings from companies in the region, although semiconductor stocks saw a heavy selloff after Taiwanese chipmaker TSMC delivered a downbeat sales forecast.
The pan-European STOXX 600 index .STOXX was up 0.3% by 0817 GMT after a subdued open.
On the flip side, disappointing results from big U.S. names NetflixNFLO.F and TeslaTSLA.F kept markets on edge, with their Frankfurt-listed shares falling 7.7% and 3.8%, respectively.
The technology sub-index .SX8P, which gained nearly 23% so far this year, was the biggest sectoral loser in Europe with a 2% drop.
SaabSAABb.ST climbed 3.5% after the Swedish defence group raised its organic sales growth forecast, while Norwegian telecoms operator TelenorTEL.OL gained 5.1% after reporting second-quarter earnings slightly above expectations.
Shares of Volvo CarsVOLCARb.ST dropped 2.5% after the carmaker posted a 54% fall in its second-quarter operating earnings.
Investor focus is also on key central bank meetings due next week, with traders expecting the European Central Bank to deliver a 25-basis-point rate hike.
Among other stocks, ElectroluxELUXb.ST dropped 14.6% to the bottom of the STOXX 600 after Europe's biggest home appliances maker swung to a loss in the second quarter, followed by a 10% drop in EssityESSITYa.ST after its second-quarter core earnings missed estimates.
(Reporting by Amruta Khandekar; Editing by Varun H K and Sherry Jacob-Phillips)
((Amruta.Khandekar@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Amruta Khandekar July 20 (Reuters) - European shares advanced on Thursday as investors assessed mixed earnings from companies in the region, although semiconductor stocks saw a heavy selloff after Taiwanese chipmaker TSMC delivered a downbeat sales forecast. On the flip side, disappointing results from big U.S. names NetflixNFLO.F and TeslaTSLA.F kept markets on edge, with their Frankfurt-listed shares falling 7.7% and 3.8%, respectively. SaabSAABb.ST climbed 3.5% after the Swedish defence group raised its organic sales growth forecast, while Norwegian telecoms operator TelenorTEL.OL gained 5.1% after reporting second-quarter earnings slightly above expectations.
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By Amruta Khandekar July 20 (Reuters) - European shares advanced on Thursday as investors assessed mixed earnings from companies in the region, although semiconductor stocks saw a heavy selloff after Taiwanese chipmaker TSMC delivered a downbeat sales forecast. SaabSAABb.ST climbed 3.5% after the Swedish defence group raised its organic sales growth forecast, while Norwegian telecoms operator TelenorTEL.OL gained 5.1% after reporting second-quarter earnings slightly above expectations. Investor focus is also on key central bank meetings due next week, with traders expecting the European Central Bank to deliver a 25-basis-point rate hike.
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By Amruta Khandekar July 20 (Reuters) - European shares advanced on Thursday as investors assessed mixed earnings from companies in the region, although semiconductor stocks saw a heavy selloff after Taiwanese chipmaker TSMC delivered a downbeat sales forecast. SaabSAABb.ST climbed 3.5% after the Swedish defence group raised its organic sales growth forecast, while Norwegian telecoms operator TelenorTEL.OL gained 5.1% after reporting second-quarter earnings slightly above expectations. Among other stocks, ElectroluxELUXb.ST dropped 14.6% to the bottom of the STOXX 600 after Europe's biggest home appliances maker swung to a loss in the second quarter, followed by a 10% drop in EssityESSITYa.ST after its second-quarter core earnings missed estimates.
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By Amruta Khandekar July 20 (Reuters) - European shares advanced on Thursday as investors assessed mixed earnings from companies in the region, although semiconductor stocks saw a heavy selloff after Taiwanese chipmaker TSMC delivered a downbeat sales forecast. Shares of Volvo CarsVOLCARb.ST dropped 2.5% after the carmaker posted a 54% fall in its second-quarter operating earnings. Among other stocks, ElectroluxELUXb.ST dropped 14.6% to the bottom of the STOXX 600 after Europe's biggest home appliances maker swung to a loss in the second quarter, followed by a 10% drop in EssityESSITYa.ST after its second-quarter core earnings missed estimates.
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2434.0
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2023-07-20 00:00:00 UTC
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Global miner Anglo American's first-half copper production surges 42%
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AAL
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https://www.nasdaq.com/articles/global-miner-anglo-americans-first-half-copper-production-surges-42
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nan
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nan
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Updates with more details
LONDON, July 20 (Reuters) - Global miner Anglo American AAL.L said on Thursday its first-half copper production surged 42%, underpinned by the ramp-up of its Quellaveco mine operations in Peru.
Copper production rose to 387,200 metric tons in the first half from 273,400 metric tons a year before, it said.
An increase in copper demand for applications from solar panels to electric cars is set to steepen sharply in coming years as the world moves toward green energy and electrification.
The London-listed company left its full-year outlook unchanged for volumes of the metals it produces, but increased its unit costs for copper and nickel to reflect stronger local currencies.
Anglo expects to reach between 840,000 and 930,000 metric tons of copper production this year.
Iron ore production rose 12% to 30.7 million metric tons in the first half.
Platinum metals group unit Amplats AMSJ.J on Monday warned that half-year profit could slide as much as 75%.
Rough diamond production fell by 2%. Anglo's diamonds unit De Beers Group on July 1 struck a new long-term sales deal with the government of Botswana, where they jointly own Africa's largest diamond producer Debswana.
(Reporting by Clara Denina, Chandini Monnappa; Editing by Sherry Jacob-Phillips and Jan Harvey)
((Clara.Denina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Updates with more details LONDON, July 20 (Reuters) - Global miner Anglo American AAL.L said on Thursday its first-half copper production surged 42%, underpinned by the ramp-up of its Quellaveco mine operations in Peru. An increase in copper demand for applications from solar panels to electric cars is set to steepen sharply in coming years as the world moves toward green energy and electrification. The London-listed company left its full-year outlook unchanged for volumes of the metals it produces, but increased its unit costs for copper and nickel to reflect stronger local currencies.
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Updates with more details LONDON, July 20 (Reuters) - Global miner Anglo American AAL.L said on Thursday its first-half copper production surged 42%, underpinned by the ramp-up of its Quellaveco mine operations in Peru. Copper production rose to 387,200 metric tons in the first half from 273,400 metric tons a year before, it said. Anglo expects to reach between 840,000 and 930,000 metric tons of copper production this year.
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Updates with more details LONDON, July 20 (Reuters) - Global miner Anglo American AAL.L said on Thursday its first-half copper production surged 42%, underpinned by the ramp-up of its Quellaveco mine operations in Peru. Copper production rose to 387,200 metric tons in the first half from 273,400 metric tons a year before, it said. Anglo expects to reach between 840,000 and 930,000 metric tons of copper production this year.
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Updates with more details LONDON, July 20 (Reuters) - Global miner Anglo American AAL.L said on Thursday its first-half copper production surged 42%, underpinned by the ramp-up of its Quellaveco mine operations in Peru. Copper production rose to 387,200 metric tons in the first half from 273,400 metric tons a year before, it said. An increase in copper demand for applications from solar panels to electric cars is set to steepen sharply in coming years as the world moves toward green energy and electrification.
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2435.0
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2023-07-20 00:00:00 UTC
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American Airlines (AAL) Beats Q2 Earnings and Revenue Estimates
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-beats-q2-earnings-and-revenue-estimates
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nan
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nan
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American Airlines (AAL) came out with quarterly earnings of $1.92 per share, beating the Zacks Consensus Estimate of $1.58 per share. This compares to earnings of $0.76 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 21.52%. A quarter ago, it was expected that this world's largest airline would post earnings of $0.04 per share when it actually produced earnings of $0.05, delivering a surprise of 25%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
American Airlines, which belongs to the Zacks Transportation - Airline industry, posted revenues of $14.06 billion for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 2.32%. This compares to year-ago revenues of $13.42 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
American Airlines shares have added about 46.2% since the beginning of the year versus the S&P 500's gain of 18.9%.
What's Next for American Airlines?
While American Airlines has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for American Airlines: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.84 on $13.8 billion in revenues for the coming quarter and $3.03 on $53.03 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Airline is currently in the top 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
JetBlue Airways (JBLU), another stock in the same industry, has yet to report results for the quarter ended June 2023. The results are expected to be released on August 1.
This airline is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of +185.1%. The consensus EPS estimate for the quarter has been revised 2.5% higher over the last 30 days to the current level.
JetBlue Airways' revenues are expected to be $2.61 billion, up 6.8% from the year-ago quarter.
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American Airlines Group Inc. (AAL) : Free Stock Analysis Report
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To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL) came out with quarterly earnings of $1.92 per share, beating the Zacks Consensus Estimate of $1.58 per share. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report To read this article on Zacks.com click here. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) came out with quarterly earnings of $1.92 per share, beating the Zacks Consensus Estimate of $1.58 per share. American Airlines, which belongs to the Zacks Transportation - Airline industry, posted revenues of $14.06 billion for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 2.32%.
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American Airlines (AAL) came out with quarterly earnings of $1.92 per share, beating the Zacks Consensus Estimate of $1.58 per share. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines, which belongs to the Zacks Transportation - Airline industry, posted revenues of $14.06 billion for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 2.32%.
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American Airlines (AAL) came out with quarterly earnings of $1.92 per share, beating the Zacks Consensus Estimate of $1.58 per share. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines, which belongs to the Zacks Transportation - Airline industry, posted revenues of $14.06 billion for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 2.32%.
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2436.0
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2023-07-19 00:00:00 UTC
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Union Pacific (UNP) Gears Up for Q2 Earnings: What's in Store?
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AAL
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https://www.nasdaq.com/articles/union-pacific-unp-gears-up-for-q2-earnings%3A-whats-in-store
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nan
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nan
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Union Pacific Corporation UNP is scheduled to report second-quarter 2023 results on Jul 26, before market open.
UNP has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the preceding four quarters (missed once), the average beat being 2.28%.
Union Pacific Corporation Price and EPS Surprise
Union Pacific Corporation price-eps-surprise | Union Pacific Corporation Quote
The Zacks Consensus Estimate for second-quarter 2023 earnings has declined 4.5% over the past 90 days.
Given this backdrop, let’s check out the factors that might have influenced Union Pacific’s performance in the quarter under review.
We expect Union Pacific’s performance to have been hurt by soft revenues due to weak freight demand. The Zacks Consensus Estimate for quarterly revenues is currently pegged at $6.13 billion, reflecting a 2.2% decline from second-quarter 2022 actuals.
Freight revenues account for bulk of the top line. Our estimate for freight revenues indicates a 2.1% decline from second-quarter 2022 levels. Our projection for other revenues suggests a 3.3% decline from the figure reported in second-quarter 2022.
On the flip side, lower expenses, mainly due to a decline in fuel costs, are likely to have aided the bottom-line performance. Our estimate for operating expenses (adjusted) indicates a 2.2% decrease from second-quarter 2022 actuals. We expect fuel costs to be down 9.5% from the prior-year qurter’s levels.
Owing to lower costs, operating ratio (operating expenses as a percentage of revenues) is likely to have improved sequentially. Our second-quarter 2023 estimate for this key metric is currently pegged at 60.2% compared with 62.1% reported in first-quarter 2023. A lower value of this metric is preferable.
The uptick in overall volumes as labor woes ease is an added positive. Our estimate for second-quarter 2023 volumes currently implies a 1.6% increase from year-ago quarter’s reported figure.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for UNP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Union Pacific currently has an Earnings ESP of -1.16% (the Most Accurate Estimate is currently pegged at $2.72 per share, which is 3 cents below the Zacks Consensus Estimate) and a Zacks Rank #3.
Highlights of Q1
Union Pacific's first-quarter 2023 earnings of $2.67 per share handily surpassed the Zacks Consensus Estimate of $2.57. Moreover, the bottom line improved 3.9% on a year-over-year basis. Operating revenues of $6,056 million missed the Zacks Consensus Estimate of $6,072.6 million.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on their second-quarter 2023 earnings.
American Airlines AAL has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20.
AAL delivered a trailing four-quarter earnings surprise of 12.9%, on average. The Zacks Consensus Estimate for AAL’s second-quarter 2023 earnings suggests a surge of more than 100% from the year-ago reported figure.
JetBlue Airways JBLU has an Earnings ESP of +12.50% and a Zacks Rank #2. JBLU will release results on Aug 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
JBLU has an expected earnings growth rate of 192.5% for the current year. The company has surpassed the Zacks Consensus Estimate in two of the past four quarters, missing twice. The average miss is 78.36%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
Union Pacific Corporation (UNP) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20. AAL delivered a trailing four-quarter earnings surprise of 12.9%, on average.
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Click to get this free report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report Union Pacific Corporation (UNP) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20.
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Click to get this free report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report Union Pacific Corporation (UNP) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20.
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The Zacks Consensus Estimate for AAL’s second-quarter 2023 earnings suggests a surge of more than 100% from the year-ago reported figure. American Airlines AAL has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20.
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2437.0
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2023-07-19 00:00:00 UTC
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AAL Factor-Based Stock Analysis
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AAL
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https://www.nasdaq.com/articles/aal-factor-based-stock-analysis-0
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nan
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nan
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. This strategy looks for companies returning cash to shareholders via dividends, buybacks and debt paydown.
AMERICAN AIRLINES GROUP INC (AAL) is a large-cap value stock in the Airline industry. The rating using this strategy is 70% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
UNIVERSE: PASS
NET PAYOUT YIELD: FAIL
QUALITY AND DEBT: PASS
VALUATION: PASS
RELATIVE STRENGTH: PASS
SHAREHOLDER YIELD: FAIL
Detailed Analysis of AMERICAN AIRLINES GROUP INC
AAL Guru Analysis
AAL Fundamental Analysis
More Information on Meb Faber
Meb Faber Portfolio
About Meb Faber: Meb Faber is the founder of Cambria Investments. His research has covered a wide spectrum of the investment world, including topics like shareholder yield, trend following, global asset allocation and home country bias. His shareholder yield strategy, which is based on his book "Shareholder Yield" and forms the basis for an ETF of the same name, looks for companies that are focused on creating value for shareholders by returning cash to them in the form of dividends, share buybacks and debt paydown. Meb is also the author of 4 other books and numerous white papers on investing related topics.
Additional Research Links
Top Large-Cap Growth Stocks
Factor-Based Stock Portfolios
Dividend Aristocrats 2023
High Insider Ownership Stocks
Top S&P 500 Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. AMERICAN AIRLINES GROUP INC (AAL) is a large-cap value stock in the Airline industry.
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Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Meb Faber Meb Faber Portfolio About Meb Faber: Meb Faber is the founder of Cambria Investments. Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL).
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Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Meb Faber Meb Faber Portfolio About Meb Faber: Meb Faber is the founder of Cambria Investments. Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber.
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Meb Faber Meb Faber Portfolio About Meb Faber: Meb Faber is the founder of Cambria Investments. Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber.
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2438.0
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2023-07-19 00:00:00 UTC
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J.B. Hunt (JBHT) Q2 Earnings & Revenues Lag Estimates, Down Y/Y
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AAL
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https://www.nasdaq.com/articles/j.b.-hunt-jbht-q2-earnings-revenues-lag-estimates-down-y-y
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nan
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nan
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J.B. Hunt Transport Services, Inc.’s JBHT second-quarter 2023 earnings of $1.81 per share missed the Zacks Consensus Estimate of $1.97 and declined 25.2% year over year.
Total operating revenues of $3,132.6 million also lagged the Zacks Consensus Estimate of $3,347.5 million and fell 18.4% year over year. The downfall was due to a decline in revenue per load of 24% in Integrated Capacity Solutions, 13% in Intermodal, 21% in Truckload, and a 4% decline in productivity in Dedicated Capacity Solutions, on the back of changes in customer rate, freight mix and lower fuel surcharge revenue.
Total operating revenues, excluding fuel surcharges, decreased 14% year over year.
Operating income for the second quarter decreased 23% year over year to $270.7 million, owing to lower revenue across all the business segments, lower volumes and customer rates.
J.B. Hunt Transport Services, Inc. Price, Consensus and EPS Surprise
J.B. Hunt Transport Services, Inc. price-consensus-eps-surprise-chart | J.B. Hunt Transport Services, Inc. Quote
Net interest expense for the second quarter increased 14% year over year due to higher effective interest rates.
Operating expenses fell 17.9% to $2,861.91 million.
Segmental Highlights
Intermodal division generated quarterly revenues of $1.49 billion, down 19% year over year, owing to a 7% decrease in volume and a 13% decrease in gross revenue per load, resulting from changes in the mix of freight, customer rates and fuel surcharge revenues. Revenue per load, excluding fuel surcharge revenue, fell 7% year over year. Eastern network loads declined 6%, while transcontinental loads fell 8%.
Operating income fell 29% year over year in the second quarter due to lower customer rates and volume and the resulting impact on absorbing network and equipment costs.
Dedicated Contract Services segment revenues fell 2% from the year-ago period to $888 million due to a 4% decrease in productivity (revenue per truck per week) versus the prior period.
Operating income grew 21% year over year due to the maturing of new business onboarded over the trailing 12 months. This benefit was partially offset by higher professional driver and non-driver wages and benefits and equipment-related and maintenance expenses.
Integrated Capacity Solutions revenues decreased 43% year over year to $344 million. Segmental volumes decreased 26%. Revenue per load fell 24% owing to lower contractual and transactional rates and changes in customer freight mix.
JBHT reported an operating loss of $4.4 million against the operating income of $23.2 million in the year-ago quarter. The loss wasdue to lower gross profit, partially offset by lower personnel and insurance-related expenses and reduced technology costs.
Truckload revenues fell 16% to $192 million. Excluding fuel surcharge revenues, segmental revenues fell 15%, primarily owing to a 20% decline in revenue per load, partially offset by a 6% increase in load volume. At the second-quarter end, total tractors and trailers were 2,068 and 15,358 compared with the year-ago quarter’s figures of 2,015 and 12,770, respectively.
Operating income fell 81% year over year to $3.8 million due to a decline in revenues.
Final Mile Services revenues fell 19% year over year to $224 million due to general weakness in demand across many of the industry verticals served.
Operating income increased 12% year over year on the back of internal efforts to improve revenue quality and manage costs.
Liquidity & Buyback
J.B. Hunt exited the second quarter with cash and cash equivalents of $295.92 million compared with $52.60 million at the first quarter of 2023-end. Long-term debt was $1,195.30 million compared with $991.71million at the end of first-quarter 2023.
Net capital expenditures for the second quarter were $473.94 million compared with $308.96 million in the year-ago period.
In the second quarter of 2023, JBHT purchased almost 315,000 shares for $53 million. As of Jun 30, 2023, JBHT had approximately $467 million remaining under its share repurchase authorization.
Currently, J.B. Hunt carries a Zacks Rank #3 (Hold).
Upcoming Releases
Here are a few stocks from the broader Zacks Transportation sector slated to release their second-quarter 2023earnings.
Copa Holdings, S.A. (CPA) has an Earnings ESP of +0.82% and a Zacks Rank #2 (Buy). CPA will release results on Aug 9. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Copa Holdings has an expected earnings growth rate of more than 100% for second-quarter 2023. CPA delivered a trailing four-quarter earnings surprise of 14.60%, on average.
The Zacks Consensus Estimate for CPA’s second-quarter 2023 earnings has been revised upward by 94% in the past 90 days.
American Airlines (AAL) has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20.
American Airlines has an expected earnings growth rate of more than 100% for second-quarter 2023. AAL delivered a trailing four-quarter earnings surprise of 12.90%, on average.
The Zacks Consensus Estimate for AAL’s second-quarter 2023 earnings has been revised upward by 50.9% in the past 90 days.
Alaska Air (ALK) has an Earnings ESP of +0.72% and a Zacks Rank #3. ALK will release results on Jul 25.
Alaska Air has an expected earnings growth rate of 21% for second-quarter 2023.
The Zacks Consensus Estimate for ALK’s second-quarter 2023 earnings has been revised upward by 36.1% in the past 90 days.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL) has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20. AAL delivered a trailing four-quarter earnings surprise of 12.90%, on average.
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Click to get this free report J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20.
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Click to get this free report J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20.
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American Airlines (AAL) has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20. AAL delivered a trailing four-quarter earnings surprise of 12.90%, on average.
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2439.0
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2023-07-19 00:00:00 UTC
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American Airlines pilots seek better contract ahead of vote
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AAL
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https://www.nasdaq.com/articles/american-airlines-pilots-seek-better-contract-ahead-of-vote
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nan
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nan
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By Rajesh Kumar Singh
CHICAGO, July 19 (Reuters) - American Airlines AAL.O and its pilot union have begun negotiations to improve their tentative contract agreement on Tuesday ahead of a crucial vote on the contract, according to a union memo seen by Reuters.
The Texas-based carrier's pilots are due to start voting Monday on a that provides for a pay increase of about 42% and other benefits. But the Allied Pilots Association (APA), which represents them, warned ratification was in "jeopardy" after United Airlines UAL.O raised the benchmark in its pilots' contract.
"Our respective bargaining teams have committed to working around the clock beginning tonight for the next few days to address crucial improvements," APA's head Ed Sicher told the pilots in a memo on Tuesday.
U.S. union employees are piling pressure on their employers for better contracts amid frustration with stagnant pay, high healthcare costs, scanty sick time and uncertain scheduling.
In the memo, Sicher said American Airlines CEO Robert Isom has "acknowledged that significant improvements must be made" to the agreement.
A union spokesperson said the talks began on Tuesday and will continue on Wednesday.
American Airlines declined to comment. On Tuesday, the company said it would work with the union to take care of its pilots.
American's union has said United's contract will lead to at least a 2% pay gap between American and United pilots. United's contract also offers better back pay, as well as more days off for junior pilots and sick time, it added.
"Is management serious about doing what's required? Do they understand the need for a genuinely competitive pilot contract?" Sicher wrote in the memo. "Time will tell, and it won't take long."
In a separate memo Tuesday night, American's pilot union instructed its staff to prepare for informational picketing by the close of business on Monday in case talks fail.
Airline unions negotiate their contracts in a so-called pattern bargaining process where a deal at one carrier acts as a benchmark for other agreements.
An industry-wide pilot shortage and a booming travel demand have also handed unions enhanced bargaining power.
(Reporting by Rajesh Kumar Singh, Editing by Franklin Paul, Aurora Ellis and Susan Heavey)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Rajesh Kumar Singh CHICAGO, July 19 (Reuters) - American Airlines AAL.O and its pilot union have begun negotiations to improve their tentative contract agreement on Tuesday ahead of a crucial vote on the contract, according to a union memo seen by Reuters. "Our respective bargaining teams have committed to working around the clock beginning tonight for the next few days to address crucial improvements," APA's head Ed Sicher told the pilots in a memo on Tuesday. U.S. union employees are piling pressure on their employers for better contracts amid frustration with stagnant pay, high healthcare costs, scanty sick time and uncertain scheduling.
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By Rajesh Kumar Singh CHICAGO, July 19 (Reuters) - American Airlines AAL.O and its pilot union have begun negotiations to improve their tentative contract agreement on Tuesday ahead of a crucial vote on the contract, according to a union memo seen by Reuters. "Our respective bargaining teams have committed to working around the clock beginning tonight for the next few days to address crucial improvements," APA's head Ed Sicher told the pilots in a memo on Tuesday. In a separate memo Tuesday night, American's pilot union instructed its staff to prepare for informational picketing by the close of business on Monday in case talks fail.
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By Rajesh Kumar Singh CHICAGO, July 19 (Reuters) - American Airlines AAL.O and its pilot union have begun negotiations to improve their tentative contract agreement on Tuesday ahead of a crucial vote on the contract, according to a union memo seen by Reuters. But the Allied Pilots Association (APA), which represents them, warned ratification was in "jeopardy" after United Airlines UAL.O raised the benchmark in its pilots' contract. American's union has said United's contract will lead to at least a 2% pay gap between American and United pilots.
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By Rajesh Kumar Singh CHICAGO, July 19 (Reuters) - American Airlines AAL.O and its pilot union have begun negotiations to improve their tentative contract agreement on Tuesday ahead of a crucial vote on the contract, according to a union memo seen by Reuters. "Our respective bargaining teams have committed to working around the clock beginning tonight for the next few days to address crucial improvements," APA's head Ed Sicher told the pilots in a memo on Tuesday. American's union has said United's contract will lead to at least a 2% pay gap between American and United pilots.
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2440.0
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2023-07-19 00:00:00 UTC
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American Airlines (NASDAQ:AAL) Q2 Earnings Preview: Prospects Look Bright
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AAL
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https://www.nasdaq.com/articles/american-airlines-nasdaq%3Aaal-q2-earnings-preview%3A-prospects-look-bright
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nan
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nan
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American Airlines (NASDAQ:AAL) is set to announce its second-quarter 2023 earnings results on July 20 before the market opens. The recovery in air travel demand to pre-pandemic levels during the to-be-reported quarter might have supported AAL’s performance. Additionally, the decline in fuel prices, which is seen as a positive factor for the airline industry this year, has likely contributed to the company's bottom-line expansion.
Overall, the Street expects AAL to post earnings of $1.58 per share in Q2 compared with $0.76 in the prior-year period. Meanwhile, revenue expectations are pegged at $13.74 billion, representing a year-over-year jump of 2.4%.
In a research note to investors last week, Barclays analyst Brandon Oglenski noted that U.S. travel demand has been strong this summer, even amid macro uncertainty. Furthermore, the analyst expressed optimism that AAL’s Q2 results could be positively impacted by solid yields and lower jet fuel prices.
Oglenski raised his price target on AAL stock to $18 from $15 while maintaining a Sell rating on the stock.
Technical Analysis on AAL Stock Indicates a Buy
Ahead of the Q2 earnings release, most technical indicators indicate that AAL stock is a Buy. According to TipRanks’ easy-to-understand technical analysis tool, the stock’s Moving Averages Convergence Divergence indicator is 0.76, making it a Buy. Further, AAL’s Price Rate of Change is 10.58, which also signals an uptrend.
What is AAL Stock’s Price Target?
Overall, Wall Street is sidelined on the stock, with a Hold consensus rating. This is based on two Buy, seven Hold, and two Sell recommendations assigned in the past three months. The average AAL stock price target of $19.04 implies 1.9% upside potential from here. Shares of the company are up 46.6% year-to-date.
Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Furthermore, the analyst expressed optimism that AAL’s Q2 results could be positively impacted by solid yields and lower jet fuel prices. American Airlines (NASDAQ:AAL) is set to announce its second-quarter 2023 earnings results on July 20 before the market opens. The recovery in air travel demand to pre-pandemic levels during the to-be-reported quarter might have supported AAL’s performance.
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Technical Analysis on AAL Stock Indicates a Buy Ahead of the Q2 earnings release, most technical indicators indicate that AAL stock is a Buy. The average AAL stock price target of $19.04 implies 1.9% upside potential from here. American Airlines (NASDAQ:AAL) is set to announce its second-quarter 2023 earnings results on July 20 before the market opens.
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Oglenski raised his price target on AAL stock to $18 from $15 while maintaining a Sell rating on the stock. Technical Analysis on AAL Stock Indicates a Buy Ahead of the Q2 earnings release, most technical indicators indicate that AAL stock is a Buy. What is AAL Stock’s Price Target?
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Oglenski raised his price target on AAL stock to $18 from $15 while maintaining a Sell rating on the stock. American Airlines (NASDAQ:AAL) is set to announce its second-quarter 2023 earnings results on July 20 before the market opens. The recovery in air travel demand to pre-pandemic levels during the to-be-reported quarter might have supported AAL’s performance.
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2441.0
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2023-07-19 00:00:00 UTC
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What's in the Cards for Covenant (CVLG) in Q2 Earnings?
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AAL
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https://www.nasdaq.com/articles/whats-in-the-cards-for-covenant-cvlg-in-q2-earnings
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nan
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Covenant Logistics Group, Inc. CVLG is scheduled to report second-quarter 2023 results on Jul 26 after market close.
The Zacks Consensus Estimate for CVLG’s second-quarter 2023 earnings declined 10.5% to 85 cents per share over the past 60 days. However, the company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average beat being 10.6%.
Against this backdrop, let’s take a look at the factors likely to have shaped the company’s June-quarter performance.
Given supply-chain woes and inflationary pressure, freight demand has slowed down. Therefore, we expect this trucking company’s performance in the to-be-reported quarter to have been dented by lower freight revenues. Due to lower freight revenues, total revenues for CVLG’s truckload operations are likely to have been hit in the quarter under review.
Also, rising fuel cost is likely to affect bottom-line results. The consensus estimate for quarterly earnings indicates a 47.9% decline year over year.
Covenant Logistics Group, Inc. Price and EPS Surprise
Covenant Logistics Group, Inc. price-eps-surprise | Covenant Logistics Group, Inc. Quote
What Does the Zacks Model Say?
The proven Zacks model does not conclusively predict an earnings beat for Covenant this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Covenant has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Covenant currently carries a Zacks Rank #3.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on their second-quarter 2023 earnings.
American Airlines AAL has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20.
AAL delivered a trailing four-quarter earnings surprise of 12.9%, on average. The Zacks Consensus Estimate for AAL’s second-quarter 2023 earnings suggests a surge of more than 100% from the year-ago reported figure.
JetBlue Airways JBLU has an Earnings ESP of +12.50% and a Zacks Rank #2. JBLU will release results on Aug 1.
JBLU has an expected earnings growth rate of 192.5% for the current year. The company has surpassed the Zacks Consensus Estimate in two of the past four quarters, missing twice.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Covenant Logistics Group, Inc. (CVLG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20. AAL delivered a trailing four-quarter earnings surprise of 12.9%, on average.
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Click to get this free report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Covenant Logistics Group, Inc. (CVLG) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20.
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Click to get this free report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Covenant Logistics Group, Inc. (CVLG) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20.
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American Airlines AAL has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20. AAL delivered a trailing four-quarter earnings surprise of 12.9%, on average.
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2442.0
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2023-07-19 00:00:00 UTC
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American Airlines, pilot union to work on improvements to tentative contract agreement - union memo
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AAL
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https://www.nasdaq.com/articles/american-airlines-pilot-union-to-work-on-improvements-to-tentative-contract-agreement
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nan
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nan
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By Rajesh Kumar Singh
CHICAGO, July 19 (Reuters) - American Airlines AAL.O and its pilot union have begun negotiations to improve the tentative contact agreement after the company's CEO spoke with the union's chief on Tuesday, according to a union memo seen by Reuters.
The Texas-based carrier's pilots are due to start voting Monday on a new four-year deal that provides for a pay increase of about 42% and other benefits. But the Allied Pilots Association (APA), which represents American pilots, warned that the ratification of the deal was in "jeopardy" after United Airlines UAL.O raised the benchmark with its own deal.
"Our respective bargaining teams have committed to working around the clock beginning tonight for the next few days to address crucial improvements to the TA (tentative agreement)," APA's head Ed Sicher told the pilots in a memo on Tuesday.
A union spokesperson said the talks began on Tuesday and will continue on Wednesday.
American Airlines declined to comment.
(Reporting by Rajesh Kumar Singh, Editing by Franklin Paul)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Rajesh Kumar Singh CHICAGO, July 19 (Reuters) - American Airlines AAL.O and its pilot union have begun negotiations to improve the tentative contact agreement after the company's CEO spoke with the union's chief on Tuesday, according to a union memo seen by Reuters. The Texas-based carrier's pilots are due to start voting Monday on a new four-year deal that provides for a pay increase of about 42% and other benefits. "Our respective bargaining teams have committed to working around the clock beginning tonight for the next few days to address crucial improvements to the TA (tentative agreement)," APA's head Ed Sicher told the pilots in a memo on Tuesday.
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By Rajesh Kumar Singh CHICAGO, July 19 (Reuters) - American Airlines AAL.O and its pilot union have begun negotiations to improve the tentative contact agreement after the company's CEO spoke with the union's chief on Tuesday, according to a union memo seen by Reuters. But the Allied Pilots Association (APA), which represents American pilots, warned that the ratification of the deal was in "jeopardy" after United Airlines UAL.O raised the benchmark with its own deal. (Reporting by Rajesh Kumar Singh, Editing by Franklin Paul) ((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Rajesh Kumar Singh CHICAGO, July 19 (Reuters) - American Airlines AAL.O and its pilot union have begun negotiations to improve the tentative contact agreement after the company's CEO spoke with the union's chief on Tuesday, according to a union memo seen by Reuters. But the Allied Pilots Association (APA), which represents American pilots, warned that the ratification of the deal was in "jeopardy" after United Airlines UAL.O raised the benchmark with its own deal. "Our respective bargaining teams have committed to working around the clock beginning tonight for the next few days to address crucial improvements to the TA (tentative agreement)," APA's head Ed Sicher told the pilots in a memo on Tuesday.
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By Rajesh Kumar Singh CHICAGO, July 19 (Reuters) - American Airlines AAL.O and its pilot union have begun negotiations to improve the tentative contact agreement after the company's CEO spoke with the union's chief on Tuesday, according to a union memo seen by Reuters. The Texas-based carrier's pilots are due to start voting Monday on a new four-year deal that provides for a pay increase of about 42% and other benefits. But the Allied Pilots Association (APA), which represents American pilots, warned that the ratification of the deal was in "jeopardy" after United Airlines UAL.O raised the benchmark with its own deal.
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2443.0
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2023-07-18 00:00:00 UTC
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EXCLUSIVE-American Airlines pilot deal in 'jeopardy' after United's contract agreement -union memo
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AAL
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https://www.nasdaq.com/articles/exclusive-american-airlines-pilot-deal-in-jeopardy-after-uniteds-contract-agreement-0
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nan
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nan
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By Rajesh Kumar Singh
CHICAGO, July 18 (Reuters) - American Airlines' AAL.O pilot union has warned that the ratification of the company's new contract deal is in "jeopardy" as United Airlines UAL.O has raised the benchmark with its own deal, according a union memo seen by Reuters.
American pilots are due to start voting next week on a that provides for a pay increase of about 42% and other benefits.
But the Allied Pilots Association (APA), which represents over 15,000 American pilots, said the proposed pay rates as well as some quality of life items in the agreement pale in comparison with those in United's preliminary deal.
"Management is fully aware that the proposed UAL (United) deal has now put the ratification of our TA (tentative agreement) in jeopardy," the union said in the memo.
It asked the company to further improve the contract to "meet the new industry standards" if it wants to have a deal that can be ratified by its pilots.
"Surely AA (American Airlines) management cannot expect our pilots to accept an agreement that puts us behind our contemporaries at other airlines for at least the next four years," the union said.
(Reporting by Rajesh Kumar Singh; Editing by Sonali Paul)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Rajesh Kumar Singh CHICAGO, July 18 (Reuters) - American Airlines' AAL.O pilot union has warned that the ratification of the company's new contract deal is in "jeopardy" as United Airlines UAL.O has raised the benchmark with its own deal, according a union memo seen by Reuters. "Management is fully aware that the proposed UAL (United) deal has now put the ratification of our TA (tentative agreement) in jeopardy," the union said in the memo. It asked the company to further improve the contract to "meet the new industry standards" if it wants to have a deal that can be ratified by its pilots.
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By Rajesh Kumar Singh CHICAGO, July 18 (Reuters) - American Airlines' AAL.O pilot union has warned that the ratification of the company's new contract deal is in "jeopardy" as United Airlines UAL.O has raised the benchmark with its own deal, according a union memo seen by Reuters. "Surely AA (American Airlines) management cannot expect our pilots to accept an agreement that puts us behind our contemporaries at other airlines for at least the next four years," the union said. (Reporting by Rajesh Kumar Singh; Editing by Sonali Paul) ((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Rajesh Kumar Singh CHICAGO, July 18 (Reuters) - American Airlines' AAL.O pilot union has warned that the ratification of the company's new contract deal is in "jeopardy" as United Airlines UAL.O has raised the benchmark with its own deal, according a union memo seen by Reuters. But the Allied Pilots Association (APA), which represents over 15,000 American pilots, said the proposed pay rates as well as some quality of life items in the agreement pale in comparison with those in United's preliminary deal. "Surely AA (American Airlines) management cannot expect our pilots to accept an agreement that puts us behind our contemporaries at other airlines for at least the next four years," the union said.
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By Rajesh Kumar Singh CHICAGO, July 18 (Reuters) - American Airlines' AAL.O pilot union has warned that the ratification of the company's new contract deal is in "jeopardy" as United Airlines UAL.O has raised the benchmark with its own deal, according a union memo seen by Reuters. American pilots are due to start voting next week on a that provides for a pay increase of about 42% and other benefits. But the Allied Pilots Association (APA), which represents over 15,000 American pilots, said the proposed pay rates as well as some quality of life items in the agreement pale in comparison with those in United's preliminary deal.
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2444.0
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2023-07-18 00:00:00 UTC
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EXCLUSIVE-American Airlines pilot deal in 'jeopardy' after United's contract agreement - union memo
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AAL
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https://www.nasdaq.com/articles/exclusive-american-airlines-pilot-deal-in-jeopardy-after-uniteds-contract-agreement-union
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nan
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nan
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CHICAGO, July 18 (Reuters) - American Airlines' UAL.O pilot contract agreement is in "jeopardy" as United Airlines UAL.O has changed the "playing field" with its own deal, the Texas-based carrier's union said in a memo seen by Reuters.
American pilots are due to start voting next week on a that provides for about 42% pay increase and other benefits.
(Reporting by Rajesh Kumar Singh)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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CHICAGO, July 18 (Reuters) - American Airlines' UAL.O pilot contract agreement is in "jeopardy" as United Airlines UAL.O has changed the "playing field" with its own deal, the Texas-based carrier's union said in a memo seen by Reuters. American pilots are due to start voting next week on a that provides for about 42% pay increase and other benefits. (Reporting by Rajesh Kumar Singh) ((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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CHICAGO, July 18 (Reuters) - American Airlines' UAL.O pilot contract agreement is in "jeopardy" as United Airlines UAL.O has changed the "playing field" with its own deal, the Texas-based carrier's union said in a memo seen by Reuters. American pilots are due to start voting next week on a that provides for about 42% pay increase and other benefits. (Reporting by Rajesh Kumar Singh) ((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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CHICAGO, July 18 (Reuters) - American Airlines' UAL.O pilot contract agreement is in "jeopardy" as United Airlines UAL.O has changed the "playing field" with its own deal, the Texas-based carrier's union said in a memo seen by Reuters. American pilots are due to start voting next week on a that provides for about 42% pay increase and other benefits. (Reporting by Rajesh Kumar Singh) ((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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CHICAGO, July 18 (Reuters) - American Airlines' UAL.O pilot contract agreement is in "jeopardy" as United Airlines UAL.O has changed the "playing field" with its own deal, the Texas-based carrier's union said in a memo seen by Reuters. American pilots are due to start voting next week on a that provides for about 42% pay increase and other benefits. (Reporting by Rajesh Kumar Singh) ((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2445.0
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2023-07-18 00:00:00 UTC
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Previewing Airline Earnings: Time to Buy?
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AAL
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https://www.nasdaq.com/articles/previewing-airline-earnings%3A-time-to-buy
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nan
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nan
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Earnings season shifts into a higher gear this week, with a full slate of companies scheduled to unveil quarterly results. It’ll be a mighty important period, especially following the incredible first half for the market.
And soon, we’ll hear from United Airlines UAL and American Airlines AAL. United Airlines will report on Wednesday, July 19th, after the market’s close, whereas American Airlines will deliver its results on Thursday, July 20th, before the market’s open.
But how does each stack up heading into their respective release? We can use results from a peer, Delta Air Lines DAL, as a small guide.
Delta Air Lines Q2
DAL’s results beat expectations thanks to continued strength in travel demand, exceeding the Zacks Consensus EPS estimate by 10% and delivering a positive 4% sales surprise. Earnings saw strong year-over-year growth, whereas quarterly revenue reflected a quarterly record.
As we can see below, the company’s top line has recovered nicely from the 2020 shock, with revenues now eclipsing pre-pandemic levels.
Image Source: Zacks Investment Research
Delta was firing on all cylinders throughout Q2; adjusted operating income of $2.5 billion reflected a quarterly record, with an operating margin of 17.1%. In addition, operating cash flow totaled $2.6 billion, whereas free cash flow reached $1.1 billion.
International demand was scorching hot, with international passenger revenue reaching a quarterly record and improving 66% year-over-year on the back of record profitability. And domestic demand also remained strong, with revenues growing 8% from the year-ago period.
As we can see from these results, the company had a record-breaking quarter. To top it off, the company raised its full-year EPS guidance to $6 – $7 and reiterated its previous cash flow guidance of $3 billion.
Analysts have raised their expectations for the upcoming release following the robust results, with the $2.21 per share estimate being revised notably higher over the recent term.
Image Source: Zacks Investment Research
Now, let’s take a closer look at how expectations stack up for UAL and AAL.
United Airlines
Analysts have also become bullish on UAL’s quarter to be released, with the $3.99 per share estimate up roughly 7% since the end of April. The company is forecasted to post big growth, with the estimate reflecting a 180% improvement from the year-ago period.
Image Source: Zacks Investment Research
Our consensus revenue estimate stands at $13.9 billion, 15% higher year-over-year. It’s worth noting that the quarterly estimate has seen zero change over the last several months, with analysts primarily keeping their expectations muted throughout.
American Airlines
Like UAL, analysts have taken their estimates notably higher for the upcoming release over the last several months, with the current $1.58 per share estimate up 27%. The quarterly estimate implies an improvement of roughly 105% year-over-year.
Image Source: Zacks Investment Research
The company is expected to post modest revenue growth, with the $13.7 billion consensus estimate reflecting 2% higher sales. In addition, the quarterly estimate has been modestly revised downward by 1% since the end of April.
Bottom Line
With earnings season shifting into a higher gear this week, investors will have plenty of quarterly prints to remain busy with for some time.
We’ve already heard from Delta Air Lines DAL, with the company breaking multiple records and posting robust results on the back of continued strength in travel demand.
And soon, we’ll hear from United Airlines UAL and American Airlines AAL. Analysts have been bullish for both companies’ quarters to be reported, with positive earnings estimate revisions hitting the tape.
In addition, both companies currently have a positive Earnings ESP Score heading into their prints.
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Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And soon, we’ll hear from United Airlines UAL and American Airlines AAL. Image Source: Zacks Investment Research Now, let’s take a closer look at how expectations stack up for UAL and AAL. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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And soon, we’ll hear from United Airlines UAL and American Airlines AAL. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Now, let’s take a closer look at how expectations stack up for UAL and AAL.
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And soon, we’ll hear from United Airlines UAL and American Airlines AAL. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Now, let’s take a closer look at how expectations stack up for UAL and AAL.
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And soon, we’ll hear from United Airlines UAL and American Airlines AAL. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Image Source: Zacks Investment Research Now, let’s take a closer look at how expectations stack up for UAL and AAL.
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2446.0
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2023-07-18 00:00:00 UTC
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Old Dominion (ODFL) Gears up for Q2 Earnings: What's in Store?
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AAL
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https://www.nasdaq.com/articles/old-dominion-odfl-gears-up-for-q2-earnings%3A-whats-in-store
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nan
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nan
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Old Dominion Freight Line ODFL is scheduled to report second-quarter 2023 results on Jul 26, before market open.
The company has an impressive earnings surprise history. Its earnings beat the Zacks Consensus Estimate in three of the preceding four quarters and missed once, the average beat being 5.28%.
Given this backdrop, let’s check out the factors that might have influenced Old Dominion’s performance in the quarter under review.
We expect Old Dominion’s performance to have been hurt by soft revenues due to weak freight demand. The Zacks Consensus Estimate for quarterly revenues is currently pegged at $1.45 billion, reflecting a 13.3% decline from second-quarter 2022 actuals.
Bulk of the revenues are generated by the Less-Than-Truckload or LTL Service unit. Our estimate for segmental revenues indicates a 13.3% decline from second-quarter 2022 levels. We expect revenues from other sources to be down 19.1% from the the second-quarter 2022 actuals.
On the flip side, lower expenses led by the company’s cost-control initiatives are likely to have aided the bottom-line performance. Due to cost-control exercises, our estimate for salaries, wages and benefits represents a 10% decrease from the prior-year quarter’s levels. Our estimate for operating expenses indicates an 8.2% decrease from second-quarter 2022 actuals.
Despite lower expenses, the top-line weakness, as a result of lackluster freight-demand scenario, is likely to have led to a deterioration in operating ratio (operating expenses as a percentage of revenues). Our estimate for this key metric is currently pegged at 73.5% compared with 69.5% reported in second-quarter 2022. A lower value of this metric is preferable.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for ODFL this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Old Dominion has an Earnings ESP of -1.33% and a Zacks Rank #3.
Highlights of Q1
ODFL's first-quarter 2023 earnings per share of $2.58 fell short of the Zacks Consensus Estimate of $2.69 and declined 0.8% year over year. Revenues of $1,442.1 million lagged the Zacks Consensus Estimate of $1,488.5 million and decreased 3.7% year over year. The downside was due to lackluster LTL revenues. The LTL services unit logged a total revenues of $1,424.37 million, down 3.5% year over year. Revenues from other services fell 17.4% to $17.76 million.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on their second-quarter 2023 earnings.
American Airlines AAL has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20.
AAL delivered a trailing four-quarter earnings surprise of 12.9%, on average. The Zacks Consensus Estimate for AAL’s second-quarter 2023 earnings suggests a surge of more than 100% from the year-ago reported figure.
JetBlue Airways JBLU has an Earnings ESP of +12.50% and a Zacks Rank #2. JBLU will release results on Aug 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
JBLU has an expected earnings growth rate of 192.5% for the current year. The company has surpassed the Zacks Consensus Estimate in two of the past four quarters, missing twice.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20. AAL delivered a trailing four-quarter earnings surprise of 12.9%, on average.
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Click to get this free report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20.
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The Zacks Consensus Estimate for AAL’s second-quarter 2023 earnings suggests a surge of more than 100% from the year-ago reported figure. Click to get this free report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL has an Earnings ESP of +1.94% and a Zacks Rank #3.
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American Airlines AAL has an Earnings ESP of +1.94% and a Zacks Rank #3. AAL will release results on Jul 20. AAL delivered a trailing four-quarter earnings surprise of 12.9%, on average.
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2447.0
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2023-07-18 00:00:00 UTC
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Is a Beat in Store for Alaska Air (ALK) in Q2 Earnings?
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AAL
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https://www.nasdaq.com/articles/is-a-beat-in-store-for-alaska-air-alk-in-q2-earnings
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nan
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nan
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Alaska Air Group, Inc. (ALK) is scheduled to report second-quarter 2023 results on Jul 25, before market open.
The company has surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once. The average miss is 2.27%. The Zacks Consensus Estimate for the company’s second-quarter earnings has been revised 40.8% upward over the past 90 days.
Let’s see how things have shaped up for Alaska Air this earnings season.
Q2 Expectations
The Zacks Consensus Estimate for Alaska Air’s second-quarter 2023 revenues is pegged at $2.78 billion, indicating 4.57% growth year over year. The top line is likely to have been aided bycontinued recovery in air-travel demand.
On the back of upbeat air-travel demand and favorable pricing, the company expects to boost its fleet and workforce to meet the anticipated high demand. ALK expects second-quarter 2023 total revenues to increase 2.5-5.5% from the second quarter of 2022 actuals. To match the upbeat demand, capacity in the June quarter is expected to expand 6-9%. Our estimate indicates an increase of 8.8% year over year.
However, expenses related to fuel prices are likely to have weighed on ALK’s bottom-line growth. The second-quarter economic fuel cost per gallon is projected in the $2.95-$3.15 range. Our estimate is pegged at $3.02 per gallon.
Cost per available seat mile, excluding fuel and special items, is expected to grow 1-3% year over year. Our estimate indicates an increase of 2.9% year over year. High labor costs are likely to have led to an uptick in the metric.
What Our Model Says
Our proven model predicts an earnings beat for Alaska Air this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Alaska Air has an Earnings ESP of +0.72% and a Zacks Rank #3.
Alaska Air Group, Inc. Price and EPS Surprise
Alaska Air Group, Inc. price-eps-surprise | Alaska Air Group, Inc. Quote
Highlights of Q1
Alaska Air reported first-quarter 2023 loss of 62 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents. In the year-ago quarter, ALK incurred a loss of $1.33 per share.
Operating revenues of $ 2,196 million missed the Zacks Consensus Estimate of $2,202.5 million. The top line jumped 31% year over year.
Other Stocks to Consider
Here are a few stocks from the Zacks Airline industry that investors may consider, as our model shows that these have the right combination of elements to beat their second-quarter 2023 earnings:
Copa Holdings, S.A. (CPA) has an Earnings ESP of +0.82% and a Zacks Rank #2. CPA will release results on Aug 9. You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings has an expected earnings growth rate of more than 100% for second-quarter 2023. CPA delivered a trailing four-quarter earnings surprise of 14.60%, on average.
The Zacks Consensus Estimate for CPA’s second-quarter 2023 earnings has been revised upward by 94% in the past 90 days.
American Airlines (AAL) has an Earnings ESP of +0.53% and a Zacks Rank #3. AAL will release results on Jul 20.
American Airlines has an expected earnings growth rate of more than 100% for second-quarter 2023. AAL delivered a trailing four-quarter earnings surprise of 12.90%, on average.
The Zacks Consensus Estimate for AAL’s second-quarter 2023 earnings has been revised upward by 50.9% in the past 90 days.
United Airlines (UAL) has an Earnings ESP of +4.87% and a Zacks Rank #3. UAL will release results on Jul 19.
UAL has an expected earnings growth rate of more than 100% for second-quarter 2023. UAL delivered a trailing four-quarter earnings surprise of 9.14%, on average.
The Zacks Consensus Estimate for UAL’s second-quarter 2023 earnings has been revised upward by 14.3% in the past 90 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines (AAL) has an Earnings ESP of +0.53% and a Zacks Rank #3. AAL will release results on Jul 20. AAL delivered a trailing four-quarter earnings surprise of 12.90%, on average.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) has an Earnings ESP of +0.53% and a Zacks Rank #3. AAL will release results on Jul 20.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) has an Earnings ESP of +0.53% and a Zacks Rank #3. AAL will release results on Jul 20.
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American Airlines (AAL) has an Earnings ESP of +0.53% and a Zacks Rank #3. AAL will release results on Jul 20. AAL delivered a trailing four-quarter earnings surprise of 12.90%, on average.
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2448.0
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2023-07-18 00:00:00 UTC
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Transportation Stocks' Jul 20 Q2 Earnings Roaster: AAL, CSX & KNX
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AAL
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https://www.nasdaq.com/articles/transportation-stocks-jul-20-q2-earnings-roaster%3A-aal-csx-knx
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nan
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nan
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The Zacks Transportation sector is widely diversified. It houses airlines, railroads, shipping and trucking companies, to name a few.
The gradual uptick in the economic scenario implies that trading volumes are consistently rising. This bodes well for the entire sector.
However, economic uncertainty might have affected the second-quarter performance. Headwinds like supply-chain woes, inflationary pressure and high fuel costs, a key input cost for any transportation player, are likely to have hurt the second-quarter 2023 performance of transportation companies.
Given this backdrop, investors interested in the Zacks Transportation sector keenly await the results of American Airlines Group Inc. AAL, CSX Corporation CSX and Knight-Swift Transportation Holdings Inc. KNX, scheduled to be released on Jul 20.
Our quantitative model predicts earnings beat for a company if it has a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This combination increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Let’s delve deeper.
We expect upbeat air-travel demand, particularly on the domestic front, to have boosted American Airlines’ top-line performance in the to-be-reported quarter. Passenger revenues, which account for the bulk of the top line, are likely to have been high, boosting total revenues. Driven by the uptick, AAL expects second-quarter 2023 adjusted operating margin in the range of 12.5-14.5%. Owing to upbeat traffic, load factor (percentage of seats filled by passengers) is likely to have been impressive in the June quarter.
Our proven model predicts earnings beat for American Airlines this season as AAL has an Earnings ESP of +0.53% and a Zacks Rank #3 at present. Our model predicted a positive surprise for AAL earlier as well, when its second-quarter earnings preview article was issued. At that time, AAL had an Earnings ESP of +2.69%, while the Zacks Rank was #3.
American Airlines Group Inc. Price and EPS Surprise
American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote
We expect coal revenues to have been impressive primarily due to high export-coal prices in second-quarter 2023, in turn aiding CSX’s performance. We estimate coal revenues to increase 18.1% during second-quarter 2023 from second-quarter 2022 actuals. Moreover, supply-chain disruptions including labor and equipment shortages are expected to have hurt CSX’s second-quarter performance.
Our proven model does not conclusively predict an earnings beat for CSX this season as the company has an Earnings ESP of -0.68% and a Zacks Rank #3 at present. Our model did not predict a positive surprise for CSX earlier as well, when its second-quarter earnings preview article was issued. At that time, CSX had the same Earnings ESP and Zacks Rank.
CSX Corporation Price and EPS Surprise
CSX Corporation price-eps-surprise | CSX Corporation Quote
Knight-Swift’s second-quarter 2023 performance is expected to have been weighed down by the soft ness pertaining to freight demand. Driver shortage continues to be a major challenge for the trucking industry. As old drivers retire, trucking companies find it difficult to hire drivers since the job does not appeal to the younger generation. Further, escalating operating expenses, led by high fuel costs, are likely to have dented the prospects of the truck transport providers. High costs related to driver wages, equipment, maintenance, fuel and other expenses are likely to have restricted Knight-Swift’s bottom-line growth.
Our proven model does not conclusively predict an earnings beat for KNX this season as the company has an Earnings ESP of -19.08% and a Zacks Rank #3 at present. Notably, our model had also not predicted a positive surprise for KNX earlier as well, when its second-quarter earnings preview article was issued. At that time too, KNX had an Earnings ESP of -19.08% and a Zacks Rank #3.
Knight-Swift Transportation Holdings Inc. Price and EPS Surprise
Knight-Swift Transportation Holdings Inc. price-eps-surprise | Knight-Swift Transportation Holdings Inc. Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
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CSX Corporation (CSX) : Free Stock Analysis Report
Knight-Swift Transportation Holdings Inc. (KNX) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Given this backdrop, investors interested in the Zacks Transportation sector keenly await the results of American Airlines Group Inc. AAL, CSX Corporation CSX and Knight-Swift Transportation Holdings Inc. KNX, scheduled to be released on Jul 20. Driven by the uptick, AAL expects second-quarter 2023 adjusted operating margin in the range of 12.5-14.5%. Our proven model predicts earnings beat for American Airlines this season as AAL has an Earnings ESP of +0.53% and a Zacks Rank #3 at present.
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Click to get this free report CSX Corporation (CSX) : Free Stock Analysis Report Knight-Swift Transportation Holdings Inc. (KNX) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Given this backdrop, investors interested in the Zacks Transportation sector keenly await the results of American Airlines Group Inc. AAL, CSX Corporation CSX and Knight-Swift Transportation Holdings Inc. KNX, scheduled to be released on Jul 20. Driven by the uptick, AAL expects second-quarter 2023 adjusted operating margin in the range of 12.5-14.5%.
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Click to get this free report CSX Corporation (CSX) : Free Stock Analysis Report Knight-Swift Transportation Holdings Inc. (KNX) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Given this backdrop, investors interested in the Zacks Transportation sector keenly await the results of American Airlines Group Inc. AAL, CSX Corporation CSX and Knight-Swift Transportation Holdings Inc. KNX, scheduled to be released on Jul 20. Driven by the uptick, AAL expects second-quarter 2023 adjusted operating margin in the range of 12.5-14.5%.
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Our proven model predicts earnings beat for American Airlines this season as AAL has an Earnings ESP of +0.53% and a Zacks Rank #3 at present. Given this backdrop, investors interested in the Zacks Transportation sector keenly await the results of American Airlines Group Inc. AAL, CSX Corporation CSX and Knight-Swift Transportation Holdings Inc. KNX, scheduled to be released on Jul 20. Driven by the uptick, AAL expects second-quarter 2023 adjusted operating margin in the range of 12.5-14.5%.
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2449.0
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2023-07-18 00:00:00 UTC
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Alaska Air Group (ALK) Earnings Expected to Grow: What to Know Ahead of Next Week's Release
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AAL
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https://www.nasdaq.com/articles/alaska-air-group-alk-earnings-expected-to-grow%3A-what-to-know-ahead-of-next-weeks-release-1
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nan
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Alaska Air Group (ALK) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 25. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This airline is expected to post quarterly earnings of $2.69 per share in its upcoming report, which represents a year-over-year change of +22.8%.
Revenues are expected to be $2.78 billion, up 4.6% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 1.44% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Alaska Air?
For Alaska Air, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.72%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Alaska Air will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Alaska Air would post a loss of $0.48 per share when it actually produced a loss of $0.62, delivering a surprise of -29.17%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Alaska Air appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected Results
Another stock from the Zacks Transportation - Airline industry, American Airlines (AAL), is soon expected to post earnings of $1.58 per share for the quarter ended June 2023. This estimate indicates a year-over-year change of +107.9%. Revenues for the quarter are expected to be $13.71 billion, up 2.1% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for American Airlines has been revised 3.4% up to the current level. Nevertheless, the company now has an Earnings ESP of 1.94%, reflecting a higher Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that American Airlines will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
As the electric vehicle revolution expands, investors have a chance to target huge gains. Millions of lithium batteries are being made & demand is expected to increase 889%.
Download the brand-new FREE report revealing 5 EV battery stocks set to soar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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An Industry Player's Expected Results Another stock from the Zacks Transportation - Airline industry, American Airlines (AAL), is soon expected to post earnings of $1.58 per share for the quarter ended June 2023. Click to get this free report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
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An Industry Player's Expected Results Another stock from the Zacks Transportation - Airline industry, American Airlines (AAL), is soon expected to post earnings of $1.58 per share for the quarter ended June 2023. Click to get this free report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Alaska Air Group (ALK) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2023.
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An Industry Player's Expected Results Another stock from the Zacks Transportation - Airline industry, American Airlines (AAL), is soon expected to post earnings of $1.58 per share for the quarter ended June 2023. Click to get this free report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate.
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An Industry Player's Expected Results Another stock from the Zacks Transportation - Airline industry, American Airlines (AAL), is soon expected to post earnings of $1.58 per share for the quarter ended June 2023. Click to get this free report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Alaska Air Group (ALK) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2023.
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2450.0
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2023-07-18 00:00:00 UTC
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FOCUS-United Airlines grapples with pilots avoiding the captain's chair
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AAL
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https://www.nasdaq.com/articles/focus-united-airlines-grapples-with-pilots-avoiding-the-captains-chair
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By Rajesh Kumar Singh
CHICAGO, July 18 (Reuters) - United Airlines UAL.O first officer Phil Anderson has turned down opportunities to be promoted to captain as he does not want the unpredictable schedule that comes with the bigger paycheck.
Anderson is one of many who have passed on that promotion at United, and analysts and union officials said a resulting shortage of captains - who function as head pilots - could cut the number of flights available to travelers by next summer. One industry official dubbed it the "no one wants to be a junior captain syndrome."
Some smaller regional carriers have already been forced to reduce their flights by as much as 20% due to staffing constraints, said Robert Mann, a former airline executive who now runs a consulting firm. If pilots refuse to take the captain's seat, Mann warned that airlines like United could face the same problem even as consumers are returning more to travel.
"You can't fly with two first officers," he said. "You have to have a captain."
Finding pilots willing to take career upgrades is not just a United problem.
At American Airlines AAL.O, more than 7,000 pilots have chosen not to take a captain's job, according to union-supplied data. Dennis Tajer, a spokesman for American's pilots union, said the number of pilots declining promotions has at least doubled in the past seven years.
A first officer helps navigate and operate flights, but a captain is the pilot in command of the plane and is responsible for its safety. While both are union jobs, they fall in different categories and have different pay rates.
At United, bids for 978 captain vacancies, or about 50% of the vacancies posted, have gone unfilled in the past year, United pilot union data shows. In June, 96 of 198 openings went unfilled.
Currently, the Chicago-based carrier has about 5,900 captains and 7,500 first officers, according to its union data.
Airlines tend to start training captains after the summer travel rush.
United, scheduled to report earnings on Wednesday, has sought to encourage pilots to become junior captains with a that includes provisions such as premium pay, more days off, and restrictions on involuntary and some standby assignments. The agreement must still be finalized and ratified.
QUALITY OF LIFE
Garth Thompson, United's pilot union head, said the deal would "go a long way" toward ensuring United is sufficiently staffed with captains for 2024 and beyond. But some pilots said it was too early to assess its impact even as they called the proposed changes big improvements.
United did not comment for this story, but CEO Scott Kirby on LinkedIn previously said the deal would deliver "meaningful" quality-of-life improvements for pilots.
Delta Air Lines DAL.N and American have tried to address work-life complaints with measures such as premium pay and restrictions on four- or five-day trips in new pilot contracts.
Mann said increased flight cancellations and delays at U.S. airlines are largely responsible for work-life complaints.
"It's not necessarily what's in the agreement, but what happens every day in the real world," Mann said. "The biggest complaints come with the least reliable schedule."
Multiple pilots at United told Reuters that senior first officers have been avoiding promotions as they do not want to surrender seniority in their current job category to become a junior captain and risk more disruption to their personal lives.
Under current work rules, pilots said they can be forced to involuntarily accept assignments on days off and that trips can be changed or extended "on a whim."
Seniority affords pilots some schedule certainty as it lets them choose and trade trips, and plan vacations. But a change in their job category or airline base or the equipment they fly can affect their seniority.
A captain's pay is better, but junior pilots, currently, face greater risks of being subjected to unpredictable flying schedules, more on-call duty and assignments on short notice.
Taking a captain's job would have boosted Anderson's pay by 40%, but the 48-year-old pilot said it would have been costly.
"If I did that, I would've ended up divorced and seeing my kids every other weekend," said the Indiana resident, who has three young children.
Top-of-the-scale hourly wages for a 737 United first officer, in the new contract, will range from about $231 to $232, compared with about $311 to $312 for the most junior captain in the same aircraft.
A failure to substantially improve work rules was a major reason why United pilots overwhelmingly rejected a deal last year.
Greg Sumner was among those who voted against the deal. The 50-year-old pilot has moved back to first officer's chair after spending two years as a junior captain.
Sumner said his time in the captain's seat was "rough" as he was often on standby and would receive phone calls from the crew scheduling team at "all hours of the night."
"The biggest takeaway from that time was fatigue," Sumner said. "I was tired all the time."
(Reporting by Rajesh Kumar Singh in Chicago; Additional reporting by Allison Lampert in Montreal Editing by Ben Klayman and Matthew Lewis)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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At American Airlines AAL.O, more than 7,000 pilots have chosen not to take a captain's job, according to union-supplied data. By Rajesh Kumar Singh CHICAGO, July 18 (Reuters) - United Airlines UAL.O first officer Phil Anderson has turned down opportunities to be promoted to captain as he does not want the unpredictable schedule that comes with the bigger paycheck. Anderson is one of many who have passed on that promotion at United, and analysts and union officials said a resulting shortage of captains - who function as head pilots - could cut the number of flights available to travelers by next summer.
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At American Airlines AAL.O, more than 7,000 pilots have chosen not to take a captain's job, according to union-supplied data. By Rajesh Kumar Singh CHICAGO, July 18 (Reuters) - United Airlines UAL.O first officer Phil Anderson has turned down opportunities to be promoted to captain as he does not want the unpredictable schedule that comes with the bigger paycheck. At United, bids for 978 captain vacancies, or about 50% of the vacancies posted, have gone unfilled in the past year, United pilot union data shows.
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At American Airlines AAL.O, more than 7,000 pilots have chosen not to take a captain's job, according to union-supplied data. At United, bids for 978 captain vacancies, or about 50% of the vacancies posted, have gone unfilled in the past year, United pilot union data shows. United, scheduled to report earnings on Wednesday, has sought to encourage pilots to become junior captains with a that includes provisions such as premium pay, more days off, and restrictions on involuntary and some standby assignments.
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At American Airlines AAL.O, more than 7,000 pilots have chosen not to take a captain's job, according to union-supplied data. Anderson is one of many who have passed on that promotion at United, and analysts and union officials said a resulting shortage of captains - who function as head pilots - could cut the number of flights available to travelers by next summer. "You have to have a captain."
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2451.0
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2023-07-17 00:00:00 UTC
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What's in the Cards for Knight-Swift (KNX) in Q2 Earnings?
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AAL
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https://www.nasdaq.com/articles/whats-in-the-cards-for-knight-swift-knx-in-q2-earnings
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Knight-Swift Transportation Holdings Inc. (KNX) is scheduled to report second-quarter 2023 results on Jul 20, after market close.
Let’s see how things have shaped up for Knight-Swiftthis earnings season.
Q2 Expectations
The Zacks Consensus Estimate for Knight-Swift’s second-quarter 2023 revenues is pegged at $1.60 billion, indicating a 18.67% decline year over year. The top line is expected to have been weighed down due to soft freight demand.
Moreover, driver shortage continues to be a major challenge facing the trucking industry. As old drivers retire, trucking companies find it difficult to hire drivers since the job does not appeal to the younger generation. Further, escalating operating expenses, led by high fuel costs, are likely to have dented the prospects of the truck transport providers.
High costs related to driver wages, equipment, maintenance, fuel and other expenses are likely to have restricted Knight-Swift’s bottom-line growth. Notably, the Zacks Consensus Estimate for KNX’s second-quarter 2023 earnings per share (EPS) has been revised downward by 37.1% in the past 90 days to 61 cents.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Knight-Swift this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Knight-Swift has an Earnings ESP of -19.08% and a Zacks Rank #3.
Knight-Swift Transportation Holdings Inc. Price and EPS Surprise
Knight-Swift Transportation Holdings Inc. price-eps-surprise | Knight-Swift Transportation Holdings Inc. Quote
Highlights of Q1
Knight-Swift's first-quarter 2023 EPS (excluding 9 cents from non-recurring items) of 73 cents missed the Zacks Consensus Estimate of 83 cents and fell 45.9% year over year.
Total revenues of $1,636.9 million also underperformed the Zacks Consensus Estimate of $1,656.3 million. The top line plunged 10.4% year over year due to soft freight demand.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on their second-quarter 2023 earnings:
Copa Holdings, S.A. (CPA) has an Earnings ESP of +0.82% and a Zacks Rank #2. CPA will release results on Aug 9. You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings has an expected earnings growth rate of more than 100% for second-quarter 2023. CPA delivered a trailing four-quarter earnings surprise of 14.60%, on average.
The Zacks Consensus Estimate for CPA’s second-quarter 2023 earnings has been revised upward by 94% in the past 90 days.
American Airlines (AAL) has an Earnings ESP of +0.53% and a Zacks Rank #3. AAL will release results on Jul 20.
American Airlines has an expected earnings growth rate of more than 100% for second-quarter 2023. AAL delivered a trailing four-quarter earnings surprise of 12.90%, on average.
The Zacks Consensus Estimate for AAL’s second-quarter 2023 earnings has been revised upward by 50.9% in the past 90 days.
Alaska Air (ALK) has an Earnings ESP of +0.72% and a Zacks Rank #3. ALK will release results on Jul 25.
Alaska Air has an expected earnings growth rate of 21% for second-quarter 2023.
The Zacks Consensus Estimate for ALK’s second-quarter 2023 earnings has been revised upward by 36.1% in the past 90 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Knight-Swift Transportation Holdings Inc. (KNX) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL) has an Earnings ESP of +0.53% and a Zacks Rank #3. AAL will release results on Jul 20. AAL delivered a trailing four-quarter earnings surprise of 12.90%, on average.
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Click to get this free report Knight-Swift Transportation Holdings Inc. (KNX) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) has an Earnings ESP of +0.53% and a Zacks Rank #3. AAL will release results on Jul 20.
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Click to get this free report Knight-Swift Transportation Holdings Inc. (KNX) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) has an Earnings ESP of +0.53% and a Zacks Rank #3. AAL will release results on Jul 20.
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American Airlines (AAL) has an Earnings ESP of +0.53% and a Zacks Rank #3. AAL will release results on Jul 20. AAL delivered a trailing four-quarter earnings surprise of 12.90%, on average.
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2452.0
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2023-07-17 00:00:00 UTC
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Amplats warns of profit slide on lower metal prices and power crisis
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AAL
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https://www.nasdaq.com/articles/amplats-warns-of-profit-slide-on-lower-metal-prices-and-power-crisis
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nan
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July 17 (Reuters) - Anglo American Platinum (Amplats) AMSJ.J expects half-year profit to slump as much as 75%, hit by weaker metal prices and the impact on production from power shortages in South Africa, the company said on Monday.
The world's top producer of platinum group metals (PGM), which are used mostly by automakers, forecast a drop in headline earnings per share (HEPS) to between 25.44 rand and 35.69 rand ($1.41-$1.98) in the six months to June 30, down from 101.40 rand a year earlier.
Prices of rhodium and palladium, key PGMs in Amplats' basket of metals, declined by 47% and 29% respectively compared with the first half of 2022, the company said.
The electricity crisis in South Africa, where state-owned utility Eskom's ageing coal-fired plants are struggling to generate sufficient power, has also affected operations at Amplats and its rivals.
The company said it deferred production of 66,400 ounces of metal, equivalent to nearly 2% of the miner's total 2022 PGM output, in the first half of the year owing to the power crisis.
Rival Sibanye StillwaterSSWJ.J has warned that South Africa - the world's biggest PGM producer - faces an up 20% drop in output as a result of the power crisis, tightening global supplies at a time when No.2 producer Russia has been hit by sanctions-related operational problems after its invasion of Ukraine.
Amplats will release half-year results on July 24.
($1 = 18.0222 rand)
(Reporting by Nelson Banya Editing by David Goodman)
((Nelson.Banya@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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July 17 (Reuters) - Anglo American Platinum (Amplats) AMSJ.J expects half-year profit to slump as much as 75%, hit by weaker metal prices and the impact on production from power shortages in South Africa, the company said on Monday. The electricity crisis in South Africa, where state-owned utility Eskom's ageing coal-fired plants are struggling to generate sufficient power, has also affected operations at Amplats and its rivals. The company said it deferred production of 66,400 ounces of metal, equivalent to nearly 2% of the miner's total 2022 PGM output, in the first half of the year owing to the power crisis.
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July 17 (Reuters) - Anglo American Platinum (Amplats) AMSJ.J expects half-year profit to slump as much as 75%, hit by weaker metal prices and the impact on production from power shortages in South Africa, the company said on Monday. The world's top producer of platinum group metals (PGM), which are used mostly by automakers, forecast a drop in headline earnings per share (HEPS) to between 25.44 rand and 35.69 rand ($1.41-$1.98) in the six months to June 30, down from 101.40 rand a year earlier. Rival Sibanye StillwaterSSWJ.J has warned that South Africa - the world's biggest PGM producer - faces an up 20% drop in output as a result of the power crisis, tightening global supplies at a time when No.2 producer Russia has been hit by sanctions-related operational problems after its invasion of Ukraine.
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July 17 (Reuters) - Anglo American Platinum (Amplats) AMSJ.J expects half-year profit to slump as much as 75%, hit by weaker metal prices and the impact on production from power shortages in South Africa, the company said on Monday. The world's top producer of platinum group metals (PGM), which are used mostly by automakers, forecast a drop in headline earnings per share (HEPS) to between 25.44 rand and 35.69 rand ($1.41-$1.98) in the six months to June 30, down from 101.40 rand a year earlier. Rival Sibanye StillwaterSSWJ.J has warned that South Africa - the world's biggest PGM producer - faces an up 20% drop in output as a result of the power crisis, tightening global supplies at a time when No.2 producer Russia has been hit by sanctions-related operational problems after its invasion of Ukraine.
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July 17 (Reuters) - Anglo American Platinum (Amplats) AMSJ.J expects half-year profit to slump as much as 75%, hit by weaker metal prices and the impact on production from power shortages in South Africa, the company said on Monday. Prices of rhodium and palladium, key PGMs in Amplats' basket of metals, declined by 47% and 29% respectively compared with the first half of 2022, the company said. Rival Sibanye StillwaterSSWJ.J has warned that South Africa - the world's biggest PGM producer - faces an up 20% drop in output as a result of the power crisis, tightening global supplies at a time when No.2 producer Russia has been hit by sanctions-related operational problems after its invasion of Ukraine.
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2453.0
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2023-07-15 00:00:00 UTC
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United Airlines pilots reach labor agreement, boost pay
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AAL
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https://www.nasdaq.com/articles/united-airlines-pilots-reach-labor-agreement-boost-pay
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nan
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Adds background on recent labor negotiations, recasts first paragraph, third paragraph
CHICAGO, July 15 (Reuters) - United Airlines UAL.O and its pilots on Saturday reached a labor agreement that will give the latter a significant pay increase, after the union rejected an earlier offer last year instead to seek even higher wages with pilots in short supply.
The pilots will get cumulative 34.5%-40.2% increase in pay raises in a new four-year contract, the Air Line Pilots Association (ALPA) said.
With fewer pilots, the group has been enjoying enhanced bargaining power. Consumers have kept up spending on travel even with inflation high, and the industry is short thousands of pilots.
ALPA represents about 14,000 pilots at the Chicago-based carrier. It said it reached an agreement in principle with United management, which includes substantial improvements to compensation, as well as advancements in quality of life, vacation, and other benefits.
"We're pleased to have reached an agreement with ALPA," United Airlines CEO Scott Kirby said. "The four-year agreement, once ratified, will deliver a meaningful pay raise and quality of life improvements for our pilots while putting the airline on track to achieve the incredible potential of our United Next strategy," he added.
The deal comes months after pilots at Delta Air Lines DAL.Nratified a new contract that includes over $7 billion in cumulative increases in pay and benefits over four years.
Industry officials say Delta's new contract has become a new benchmark for contract negotiations in North America. Rival American Airlines AAL.Oin May alsoreached a labor deal.
United, Delta, American Airlines and Southwest Airlines LUV.N are estimated to hire about 8,000 pilots this year.
In the past two years, unions across the aerospace, construction, airline and rail industries have rebuffed initial offers from management, seeking higher wages in a tight labor market.
United pilots turned down a deal last year that included more than 14.5% in cumulative wage increases and enhanced overtime and training pay.
Analysts at Jefferies estimate the United States is short about 10,000 pilots. This supply-demand gap is projected to last until 2027.
Senators propose raising U.S. commercial pilots' mandatory retirement age
American Airlines pilots union sets April strike authorization vote
American Airlines prepared to match Delta's pilot pay rates -CEO
Delta pilots ratify new contract, raise 'the bar' for rival airlines
United Airlines reaches contracts with better pay for 30,000 ground workers
Delta earnings beat estimates as travel demand remains strong
GRAPHIC-Airlines' expenses soar https://tmsnrt.rs/406NcLl
(Reporting by Rajesh Kumar Singh and Baranjot Kaur in Bengaluru Editing by Nick Zieminski, Diane Craft and Aurora Ellis)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rival American Airlines AAL.Oin May alsoreached a labor deal. "The four-year agreement, once ratified, will deliver a meaningful pay raise and quality of life improvements for our pilots while putting the airline on track to achieve the incredible potential of our United Next strategy," he added. In the past two years, unions across the aerospace, construction, airline and rail industries have rebuffed initial offers from management, seeking higher wages in a tight labor market.
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Rival American Airlines AAL.Oin May alsoreached a labor deal. Adds background on recent labor negotiations, recasts first paragraph, third paragraph CHICAGO, July 15 (Reuters) - United Airlines UAL.O and its pilots on Saturday reached a labor agreement that will give the latter a significant pay increase, after the union rejected an earlier offer last year instead to seek even higher wages with pilots in short supply. The pilots will get cumulative 34.5%-40.2% increase in pay raises in a new four-year contract, the Air Line Pilots Association (ALPA) said.
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Rival American Airlines AAL.Oin May alsoreached a labor deal. Adds background on recent labor negotiations, recasts first paragraph, third paragraph CHICAGO, July 15 (Reuters) - United Airlines UAL.O and its pilots on Saturday reached a labor agreement that will give the latter a significant pay increase, after the union rejected an earlier offer last year instead to seek even higher wages with pilots in short supply. United, Delta, American Airlines and Southwest Airlines LUV.N are estimated to hire about 8,000 pilots this year.
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Rival American Airlines AAL.Oin May alsoreached a labor deal. The pilots will get cumulative 34.5%-40.2% increase in pay raises in a new four-year contract, the Air Line Pilots Association (ALPA) said. United, Delta, American Airlines and Southwest Airlines LUV.N are estimated to hire about 8,000 pilots this year.
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2454.0
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2023-07-14 00:00:00 UTC
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Is a Beat in Store for American Airlines (AAL) in Q2 Earnings?
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AAL
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https://www.nasdaq.com/articles/is-a-beat-in-store-for-american-airlines-aal-in-q2-earnings
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nan
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American Airlines AAL is scheduled to report second-quarter 2023 results on Jul 20 before market open.
The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the preceding four quarters (missed once), the average beat being 12.9%. The Zacks Consensus Estimate for second-quarter earnings has been revised 32.56% upward over the past 60 days.
Given this backdrop, let's delve deeper into the factors that are likely to have influenced AAL’s second-quarter 2023 performance.
We expect upbeat air-travel demand, particularly on the domestic front, to have boosted American Airlines’ top-line performance in the to-be-reported quarter.
Passenger revenues, which account for the bulk of the top line, are likely to have been high, in turn, boosting total revenues. Our estimate for passenger revenues is pegged at $12.52 billion, indicating a 2.5% rise year over year.
Driven by the uptick, AAL expects second-quarter 2023 adjusted operating margin in the range of 12.5-14.5%. Our estimate is pegged at 12.9%. The carrier projects total revenue per available seat miles (a measure of unit revenue) to decline 1-3% from second-quarter 2022 actuals. Our estimate hints at a 2.9% decline.
Driven by upbeat traffic, load factor (percentage of seats filled by passengers) is likely to have been impressive in the June quarter. The Zacks Consensus Estimate is pegged at 85%.
However, high fuel cost might have affected the bottom-line performance in the quarter under review. Fuel cost per gallon in second-quarter 2023 is anticipated in the $2.55-$2.65 band. Our estimate is pegged at $2.61. Even though fuel price has come down from the highs witnessed earlier, it still remains at an elevated level.
Non-fuel unit costs are likely to increase 3.5-5.5%. Our estimate hints at a 4.1% increase. High labor costs are likely to have pushed up the non-fuel unit costs in the to-be-reported quarter. Our estimate for expenses on salaries, wages and benefits indicates a 10.4% increase from second-quarter 2022 actuals.
AAL projects adjusted earnings per share (excluding net special items) to be between $1.45 and $1.65. The mid-point of the revised guidance ($1.55) is lower than the Zacks Consensus Estimate of $1.71.
What Our Model Says
Our proven model predicts an earnings beat for AAL this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
American Airlines has an Earnings ESP of +2.69% (the Most Accurate Estimate is pegged at $1.76 per share at present, higher than the Zacks Consensus Estimate by 5 cents) and presently carries a Zacks Rank #3.
Highlights of Q1
American Airlines’ first-quarter 2023 earnings (excluding 3 cents from non-recurring items) of 5 cents per share surpassed the Zacks Consensus Estimate by a penny despite higher costs. In the year-ago quarter, AAL incurred a loss of $2.32 per share. Operating revenues of $12,189 million increased 37% year over year, reflecting upbeat air-travel demand. However, the top line missed the Zacks Consensus Estimate of $12,198.9 million.
Other Stocks to Consider
Here are a few other stocks from the Zacks Airline industry that investors may also consider, as our model shows that these too have the right combination of elements to beat on their second-quarter 2023 earnings.
United Airlines UAL has an Earnings ESP of +3.89% and a Zacks Rank #3. UAL will release results on Jul 19. You can see the complete list of today’s Zacks #1 Rank stocks here.
Given the buoyant scenario with respect to air-travel demand, passenger revenues are likely to have been high, in turn, aiding UAL’s results. The Zacks Consensus Estimate for second-quarter earnings has been revised 6.91% upward over the past 60 days.
JetBlue Airways JBLU has an Earnings ESP of +12.50% and a Zacks Rank #3. JBLU will release results on Aug 1.
We expect upbeat air-travel demand to aid JBLU’s results too. The Zacks Consensus Estimate for second-quarter earnings has been revised 11.11% upward over the past 60 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines AAL is scheduled to report second-quarter 2023 results on Jul 20 before market open. Given this backdrop, let's delve deeper into the factors that are likely to have influenced AAL’s second-quarter 2023 performance. Driven by the uptick, AAL expects second-quarter 2023 adjusted operating margin in the range of 12.5-14.5%.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL is scheduled to report second-quarter 2023 results on Jul 20 before market open. Given this backdrop, let's delve deeper into the factors that are likely to have influenced AAL’s second-quarter 2023 performance.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL is scheduled to report second-quarter 2023 results on Jul 20 before market open. Given this backdrop, let's delve deeper into the factors that are likely to have influenced AAL’s second-quarter 2023 performance.
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American Airlines AAL is scheduled to report second-quarter 2023 results on Jul 20 before market open. Given this backdrop, let's delve deeper into the factors that are likely to have influenced AAL’s second-quarter 2023 performance. Driven by the uptick, AAL expects second-quarter 2023 adjusted operating margin in the range of 12.5-14.5%.
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2455.0
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2023-07-14 00:00:00 UTC
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American Airlines, JetBlue to halt codeshare flights from July 21
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AAL
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https://www.nasdaq.com/articles/american-airlines-jetblue-to-halt-codeshare-flights-from-july-21
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By David Shepardson
July 14 (Reuters) - American Airlines AAL.O and JetBlue Airways JBLU.O said Friday they will begin to wind down their Northeast Alliance on July 21 after a U.S. judge's order in May that they end the agreement.
JetBlue said last week it would terminate the three-year-old alliance, which allowed the two carriers to coordinate flights and pool revenue.
Both airlines said starting July 21, American and JetBlue customers will no longer be able to book new codeshare bookings on the other airlines.
JetBlue has said it will not appeal the ruling, but American Airlines says it still plans to challenge U.S. District Judge Leo Sorokin's decision that found the partnership "substantially" diminished competition in the domestic airline market.
American is the largest U.S. airline by fleet size while JetBlue is the sixth largest. The alliance's dissolution is a setback to American's strategy to grow revenue by relying more heavily on alliance partners to ferry passengers in uncompetitive markets.
The Northeast Alliance helped American compete in the New York market, where it had been losing money. It allowed American to move away from unprofitable routes while maintaining a presence in New York and letting it feed traffic to its global partners.
JetBlue argues terminating its alliance with American renders "entirely moot" the U.S. Justice Department's objections that led it to file suit to block its merger deal with Spirit Airlines SAVE.N, which would be the biggest in the U.S. airline industry since American and US Airways merged in 2013.
A trial on the department's suit to block the deal is set for October.
The airlines said they are working "to minimize disruption to customers." For customers with travel already booked, frequent flyer numbers will need to be added to the booking before July 21, they said.
Customers can accrue frequent flyer credit for all tickets purchased prior to July 21 as long as account numbers are added before that date, they said.
(Reporting by David Shepardson; Editing by Conor Humphries)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By David Shepardson July 14 (Reuters) - American Airlines AAL.O and JetBlue Airways JBLU.O said Friday they will begin to wind down their Northeast Alliance on July 21 after a U.S. judge's order in May that they end the agreement. JetBlue said last week it would terminate the three-year-old alliance, which allowed the two carriers to coordinate flights and pool revenue. It allowed American to move away from unprofitable routes while maintaining a presence in New York and letting it feed traffic to its global partners.
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By David Shepardson July 14 (Reuters) - American Airlines AAL.O and JetBlue Airways JBLU.O said Friday they will begin to wind down their Northeast Alliance on July 21 after a U.S. judge's order in May that they end the agreement. Both airlines said starting July 21, American and JetBlue customers will no longer be able to book new codeshare bookings on the other airlines. For customers with travel already booked, frequent flyer numbers will need to be added to the booking before July 21, they said.
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By David Shepardson July 14 (Reuters) - American Airlines AAL.O and JetBlue Airways JBLU.O said Friday they will begin to wind down their Northeast Alliance on July 21 after a U.S. judge's order in May that they end the agreement. Both airlines said starting July 21, American and JetBlue customers will no longer be able to book new codeshare bookings on the other airlines. JetBlue argues terminating its alliance with American renders "entirely moot" the U.S. Justice Department's objections that led it to file suit to block its merger deal with Spirit Airlines SAVE.N, which would be the biggest in the U.S. airline industry since American and US Airways merged in 2013.
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By David Shepardson July 14 (Reuters) - American Airlines AAL.O and JetBlue Airways JBLU.O said Friday they will begin to wind down their Northeast Alliance on July 21 after a U.S. judge's order in May that they end the agreement. Both airlines said starting July 21, American and JetBlue customers will no longer be able to book new codeshare bookings on the other airlines. The alliance's dissolution is a setback to American's strategy to grow revenue by relying more heavily on alliance partners to ferry passengers in uncompetitive markets.
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2456.0
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2023-07-14 00:00:00 UTC
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What To Expect From American Airlines' Q2?
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AAL
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https://www.nasdaq.com/articles/what-to-expect-from-american-airlines-q2
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nan
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American Airlines (NASDAQ: AAL) will report its Q2 2023 results on Thursday, July 20. We expect the company’s revenues to come in at $13.6 billion, slightly below the consensus estimate of $13.7 billion. This would mark year-over-year growth of about 1%. Earnings are likely to come in at about $1.52 on a per-share and adjusted basis, slightly below the $1.54 consensus estimate. See our interactive dashboard analysis on American Airlines Earnings Preview for more details on how American Airlines’ revenues and earnings will likely trend for the quarter. So, what are some of the trends that are likely to drive American Airlines’ results?
The company will likely continue to benefit from the robust travel demand. It should see a continued rise in total available seat miles (ASM), and the passenger load factor will likely remain strong. However, it will be a tough comparison with the prior-year quarter, which saw a record travel demand. The average ticket price has also cooled this year while overall capacity has expanded. Looking at Q1 2023, American Airlines’ revenues were up 37%, led by a 42% rise in Passenger revenue. While the ASMs were up 9% in Q1, passenger revenue per available seat mile (PRASM) surged 30% to 17.08 cents.
Looking at the bottom line, American Airlines reported a $0.05 earnings per share on an adjusted basis in Q1, compared to a $2.32 loss per share in the prior-year quarter. The company’s average fuel price per gallon stood at $3.28 in Q1, and it should be lower in Q2 vs. its prior-year figure of $4.03. The average U.S. Gulf Coast Kerosene Jet fuel price per gallon fell from $3.90 (end of June last year) to $2.20 now. Now that fuel prices have cooled compared to last year, the company will likely see its operating margin expand. After seeing a sharp decline from 6.7% in 2019 to -60.1% in 2020 due to the impact of the pandemic, American Airlines operating margin has gradually recovered to 3.3% in 2022. Our American Airlines Operating Income Comparison dashboard has more details.
Looking at AAL’s stock price, we believe that it is fully valued. We estimate American Airlines’ valuation to be $18 per share, aligning with its current price of $19. Our forecast is based on a 6x P/E multiple for AAL and expected earnings of $2.90 on a per-share and adjusted basis for the full-year 2023. The company has guided for adjusted EPS to be in the range of $2.50 to $3.50 for the full-year 2023.
American Airlines has high debt levels, which increased from $24.3 billion in 2019 to $38.1 billion in 2022, while its total cash increased from around $4.0 billion to $13.4 billion over the same period, primarily due to additional debt raised, as heavy negative operating cash flows in 2020 of $6.5 billion almost completely wiped out positive operating cash flows in 2019, 2021, and 2022. The high debt burden is a near-term risk that the company faces. As of Q1 2023, the total debt for AAL stood at $35.1 billion. Given that interest rates remain elevated, the company’s cost to serve its debt will likely remain high in the near term, weighing on its overall bottom-line growth.
While American Airlines stock looks fully valued, check out how other American Airlines Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since 2016.
Returns Jul 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
AAL Return 4% 46% -60%
S&P 500 Return -1% 15% 97%
Trefis Multi-Strategy Portfolio 2% 21% 288%
[1] Month-to-date and year-to-date as of 7/11/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (NASDAQ: AAL) will report its Q2 2023 results on Thursday, July 20. Looking at AAL’s stock price, we believe that it is fully valued. Our forecast is based on a 6x P/E multiple for AAL and expected earnings of $2.90 on a per-share and adjusted basis for the full-year 2023.
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Total [2] AAL Return 4% 46% -60% S&P 500 Return -1% 15% 97% Trefis Multi-Strategy Portfolio 2% 21% 288% [1] Month-to-date and year-to-date as of 7/11/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines (NASDAQ: AAL) will report its Q2 2023 results on Thursday, July 20. Looking at AAL’s stock price, we believe that it is fully valued.
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Total [2] AAL Return 4% 46% -60% S&P 500 Return -1% 15% 97% Trefis Multi-Strategy Portfolio 2% 21% 288% [1] Month-to-date and year-to-date as of 7/11/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines (NASDAQ: AAL) will report its Q2 2023 results on Thursday, July 20. Looking at AAL’s stock price, we believe that it is fully valued.
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As of Q1 2023, the total debt for AAL stood at $35.1 billion. Total [2] AAL Return 4% 46% -60% S&P 500 Return -1% 15% 97% Trefis Multi-Strategy Portfolio 2% 21% 288% [1] Month-to-date and year-to-date as of 7/11/2023 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines (NASDAQ: AAL) will report its Q2 2023 results on Thursday, July 20.
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2457.0
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2023-07-14 00:00:00 UTC
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JetBlue Announces Next Steps On Wind Down Of Northeast Alliance With American Airlines
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AAL
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https://www.nasdaq.com/articles/jetblue-announces-next-steps-on-wind-down-of-northeast-alliance-with-american-airlines
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nan
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(RTTNews) - JetBlue Airways Corp. (JBLU) announced Friday the next steps of the wind down of its Northeast Alliance with American Airlines, Inc., a subsidiary of American Airlines Group Inc. (AAL).
JetBlue said its customers will no longer be able to book new codeshare bookings on American Airlines and vice versa from July 21, 2023. For customers with travel already booked, TrueBlue or AAdvantage numbers will need to be added to the booking before July 21, 2023 in order to earn points, tiles and reciprocal perks.
Customers can accrue TrueBlue points for all tickets purchased prior to July 21, 2023, as long as their TrueBlue number is added to the booking before July 21, 2023.
Meanwhile, JetBlue noted that customers who have booked travel for the months ahead can remain confident in their plans. To the extent any individual customers are impacted, JetBlue will reach out individually for any required re-accommodation or refund.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - JetBlue Airways Corp. (JBLU) announced Friday the next steps of the wind down of its Northeast Alliance with American Airlines, Inc., a subsidiary of American Airlines Group Inc. (AAL). For customers with travel already booked, TrueBlue or AAdvantage numbers will need to be added to the booking before July 21, 2023 in order to earn points, tiles and reciprocal perks. Meanwhile, JetBlue noted that customers who have booked travel for the months ahead can remain confident in their plans.
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(RTTNews) - JetBlue Airways Corp. (JBLU) announced Friday the next steps of the wind down of its Northeast Alliance with American Airlines, Inc., a subsidiary of American Airlines Group Inc. (AAL). For customers with travel already booked, TrueBlue or AAdvantage numbers will need to be added to the booking before July 21, 2023 in order to earn points, tiles and reciprocal perks. Customers can accrue TrueBlue points for all tickets purchased prior to July 21, 2023, as long as their TrueBlue number is added to the booking before July 21, 2023.
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(RTTNews) - JetBlue Airways Corp. (JBLU) announced Friday the next steps of the wind down of its Northeast Alliance with American Airlines, Inc., a subsidiary of American Airlines Group Inc. (AAL). JetBlue said its customers will no longer be able to book new codeshare bookings on American Airlines and vice versa from July 21, 2023. For customers with travel already booked, TrueBlue or AAdvantage numbers will need to be added to the booking before July 21, 2023 in order to earn points, tiles and reciprocal perks.
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(RTTNews) - JetBlue Airways Corp. (JBLU) announced Friday the next steps of the wind down of its Northeast Alliance with American Airlines, Inc., a subsidiary of American Airlines Group Inc. (AAL). JetBlue said its customers will no longer be able to book new codeshare bookings on American Airlines and vice versa from July 21, 2023. For customers with travel already booked, TrueBlue or AAdvantage numbers will need to be added to the booking before July 21, 2023 in order to earn points, tiles and reciprocal perks.
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2458.0
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2023-07-14 00:00:00 UTC
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Validea Detailed Fundamental Analysis - AAL
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AAL
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https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-aal-0
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nan
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. This strategy looks for companies returning cash to shareholders via dividends, buybacks and debt paydown.
AMERICAN AIRLINES GROUP INC (AAL) is a large-cap value stock in the Airline industry. The rating using this strategy is 70% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
UNIVERSE: PASS
NET PAYOUT YIELD: FAIL
QUALITY AND DEBT: PASS
VALUATION: PASS
RELATIVE STRENGTH: PASS
SHAREHOLDER YIELD: FAIL
Detailed Analysis of AMERICAN AIRLINES GROUP INC
AAL Guru Analysis
AAL Fundamental Analysis
More Information on Meb Faber
Meb Faber Portfolio
About Meb Faber: Meb Faber is the founder of Cambria Investments. His research has covered a wide spectrum of the investment world, including topics like shareholder yield, trend following, global asset allocation and home country bias. His shareholder yield strategy, which is based on his book "Shareholder Yield" and forms the basis for an ETF of the same name, looks for companies that are focused on creating value for shareholders by returning cash to them in the form of dividends, share buybacks and debt paydown. Meb is also the author of 4 other books and numerous white papers on investing related topics.
Additional Research Links
Top Large-Cap Growth Stocks
Factor-Based Stock Portfolios
Dividend Aristocrats 2023
High Insider Ownership Stocks
Top S&P 500 Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. AMERICAN AIRLINES GROUP INC (AAL) is a large-cap value stock in the Airline industry.
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Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Meb Faber Meb Faber Portfolio About Meb Faber: Meb Faber is the founder of Cambria Investments. Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL).
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Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Meb Faber Meb Faber Portfolio About Meb Faber: Meb Faber is the founder of Cambria Investments. Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber.
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Meb Faber Meb Faber Portfolio About Meb Faber: Meb Faber is the founder of Cambria Investments. Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber.
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2459.0
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2023-07-13 00:00:00 UTC
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Is it Time to Buy Airline Stocks After Delta's (DAL) Earnings Beat?
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AAL
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https://www.nasdaq.com/articles/is-it-time-to-buy-airline-stocks-after-deltas-dal-earnings-beat
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Investors may be wondering if it’s time to buy airline stocks after Delta Air Lines' (DAL) second-quarter results helped reconfirm travel demand remains higher.
Delta beat quarterly top and bottom line expectations this morning with United Airlines (UAL) and American Airlines (AAL) Q2 results approaching on July 19 and 20 respectively.
Let’s see if now is a good time to buy these major airline stocks as earnings continue to roll out.
DAL Q2 Review
Driven by robust travel demand Delta delivered the highest quarterly revenue and probability in the company’s history. Second-quarter sales came in at roughly $15.6 billion with operating income at $2.5 billion and earnings of $2.68 per share.
This impressively topped the Zacks consensus for sales and earnings estimates by 4% and 11% respectively. Year-over-year Q2 earnings soared 86% with sales climbing 13%.
Image Source: Zacks Investment Research
Delta expects pent-up demand for international travel following the pandemic to be a further catalyst going forward. Annual earnings are now forecasted to soar 94% this year at $6.21 per share compared to EPS of $3.20 in 2022. More impressive, fiscal 2024 earnings are expected to jump another 18% at $7.36 per share.
Image Source: Zacks Investment Research
UAL & AAL Q2 Preview
Aforementioned United is scheduled to release its second-quarter results next Wednesday with earnings anticipated to soar 181% at $4.02 per share compared to EPS of $1.43 in Q2 2022. Sales are expected at $13.93 billion up 15% from the prior year quarter.
United’s annual earnings are projected at $9.79 per share skyrocketing 288% from $2.52 a share in 2022. Fiscal 2024 earnings are expected to rise another 11%.
Image Source: Zacks Investment Research
Pivoting to American which will report next Thursday, Q2 earnings are projected to leap 108% at $1.58 per share up from EPS of $0.76 a year ago. Sales are expected to up 2% to $13.71 billion.
Americans’ earnings are forecasted to skyrocket a staggering 506% in fiscal 2023 at $3.03 per share compared to EPS of $0.50 in 2022. Fiscal 2024 earnings are expected to rise another 4%.
Image Source: Zacks Investment Research
Performance
All three of these major airline stocks have climbed just over 45% this year to largely outperform the S&P 500’s +17% and also top the Transportation-Airline Markets’ +38%.
Over the last year, Delta’s performance has led the way now soaring +61% and currently trading at $47 a share. At $55 a share, United is up +46% during this period followed by American’s +29% which stock trades at around $18 a share.
Notably, this has also outperformed the benchmark with only American’s stock trailing the Zacks Subindustry’s +36%.
Image Source: Zacks Investment Research
Bottom Line
At the moment Delta stock currently sports a Zacks Rank #2 (Buy) with United and American landing a Zacks Rank #3 (Hold). Delta’s second-quarter results helped reassure investors that the company is still benefiting from higher travel demand with United and American hoping to do the same next week.
Just Released: Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for 2023?
From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%. Our Director of Research has now combed through 4,000 companies covered by the Zacks Rank and handpicked the best 10 tickers to buy and hold in 2023. Don’t miss your chance to still be among the first to get in on these just-released stocks.
See New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Image Source: Zacks Investment Research UAL & AAL Q2 Preview Aforementioned United is scheduled to release its second-quarter results next Wednesday with earnings anticipated to soar 181% at $4.02 per share compared to EPS of $1.43 in Q2 2022. Delta beat quarterly top and bottom line expectations this morning with United Airlines (UAL) and American Airlines (AAL) Q2 results approaching on July 19 and 20 respectively. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Delta beat quarterly top and bottom line expectations this morning with United Airlines (UAL) and American Airlines (AAL) Q2 results approaching on July 19 and 20 respectively. Image Source: Zacks Investment Research UAL & AAL Q2 Preview Aforementioned United is scheduled to release its second-quarter results next Wednesday with earnings anticipated to soar 181% at $4.02 per share compared to EPS of $1.43 in Q2 2022.
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Image Source: Zacks Investment Research UAL & AAL Q2 Preview Aforementioned United is scheduled to release its second-quarter results next Wednesday with earnings anticipated to soar 181% at $4.02 per share compared to EPS of $1.43 in Q2 2022. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Delta beat quarterly top and bottom line expectations this morning with United Airlines (UAL) and American Airlines (AAL) Q2 results approaching on July 19 and 20 respectively.
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Image Source: Zacks Investment Research UAL & AAL Q2 Preview Aforementioned United is scheduled to release its second-quarter results next Wednesday with earnings anticipated to soar 181% at $4.02 per share compared to EPS of $1.43 in Q2 2022. Delta beat quarterly top and bottom line expectations this morning with United Airlines (UAL) and American Airlines (AAL) Q2 results approaching on July 19 and 20 respectively. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2460.0
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2023-07-13 00:00:00 UTC
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CSX Gears Up to Report Q2 Earnings: What's in the Offing?
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AAL
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https://www.nasdaq.com/articles/csx-gears-up-to-report-q2-earnings%3A-whats-in-the-offing
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CSX Corporation CSX is scheduled to report second-quarter 2023 results on Jul 20, after market close.
The stock has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 7.8%. The consensus estimate for second-quarter earnings has declined 2% to 49 cents per share over the past 60 days.
Given this backdrop, let’s examine the factors that are likely to have influenced CSX’s performance in the quarter to be reported.
We expect coal revenues to have been impressive primarily due to high export-coal prices. We estimate coal revenues to increase 18.1% during second-quarter 2023 from second-quarter 2022 actuals.
CSX Corporation Price and EPS Surprise
CSX Corporation price-eps-surprise | CSX Corporation Quote
However, the Zacks Consensus Estimate for second-quarter revenues indicates a 2.2% decrease year over year. Our model estimates Intermodal and Merchandise revenues to decline 24% and 2.7%, respectively, from second-quarter 2022 actuals.
Moreover, supply-chain disruptions including labor and equipment shortages are expected to have hurt CSX’s second-quarter performance. The Zacks Consensus Estimate for second-quarter earnings suggests a fall of 2% year over year.
What Our Model Says
Our proven model does not conclusively predict earnings beat for CSX this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
CSX has an Earnings ESP of -0.68% and a Zacks Rank #3.
Q1 Highlights
Quarterly earnings of 48 cents per share beat the Zacks Consensus Estimate of 42 cents and improved 23.1% year over year. Total revenues of $3,706 million outperformed the Zacks Consensus Estimate of $3,599.1 million. The top line increased 9% year over year on the back of solid volume growth in merchandise and coal, higher fuel surcharge and pricing gains. Overall revenues per unit increased 9%.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on their second-quarter 2023 earnings.
American Airlines Group Inc. AAL has an Earnings ESP of +1.16% and a Zacks Rank #3. AAL will release results on Jul 20. You can see the complete list of today’s Zacks #1 Rank stocks here.
AAL delivered a trailing four-quarter earnings surprise of 12.9%, on average. The Zacks Consensus Estimate for AAL’s second-quarter 2023 earnings has surged more than 100% year over year.
JetBlue Airways Corporation JBLU has an Earnings ESP of +28.76% and a Zacks Rank #3. JBLU will release results on Aug 1.
JBLU has an expected earnings growth rate of 188.8% for the current year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Just Released: Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for 2023?
From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%. Our Director of Research has now combed through 4,000 companies covered by the Zacks Rank and handpicked the best 10 tickers to buy and hold in 2023. Don’t miss your chance to still be among the first to get in on these just-released stocks.
See New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CSX Corporation (CSX) : Free Stock Analysis Report
JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc. AAL has an Earnings ESP of +1.16% and a Zacks Rank #3. AAL will release results on Jul 20. AAL delivered a trailing four-quarter earnings surprise of 12.9%, on average.
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Click to get this free report CSX Corporation (CSX) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. AAL has an Earnings ESP of +1.16% and a Zacks Rank #3. AAL will release results on Jul 20.
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The Zacks Consensus Estimate for AAL’s second-quarter 2023 earnings has surged more than 100% year over year. Click to get this free report CSX Corporation (CSX) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. AAL has an Earnings ESP of +1.16% and a Zacks Rank #3.
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The Zacks Consensus Estimate for AAL’s second-quarter 2023 earnings has surged more than 100% year over year. American Airlines Group Inc. AAL has an Earnings ESP of +1.16% and a Zacks Rank #3. AAL will release results on Jul 20.
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2461.0
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2023-07-13 00:00:00 UTC
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Barclays Maintains American Airlines Group (AAL) Underweight Recommendation
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https://www.nasdaq.com/articles/barclays-maintains-american-airlines-group-aal-underweight-recommendation
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Fintel reports that on July 13, 2023, Barclays maintained coverage of American Airlines Group (NASDAQ:AAL) with a Underweight recommendation.
Analyst Price Forecast Suggests 4.22% Downside
As of July 6, 2023, the average one-year price target for American Airlines Group is 17.79. The forecasts range from a low of 11.11 to a high of $27.30. The average price target represents a decrease of 4.22% from its latest reported closing price of 18.57.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Airlines Group is 51,177MM, a decrease of 2.07%. The projected annual non-GAAP EPS is 1.52.
What is the Fund Sentiment?
There are 1039 funds or institutions reporting positions in American Airlines Group. This is an increase of 29 owner(s) or 2.87% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 8.39%. Total shares owned by institutions increased in the last three months by 4.21% to 413,180K shares.
The put/call ratio of AAL is 2.97, indicating a bearish outlook.
What are Other Shareholders Doing?
Primecap Management holds 37,738K shares representing 5.78% ownership of the company. In it's prior filing, the firm reported owning 38,099K shares, representing a decrease of 0.95%. The firm increased its portfolio allocation in AAL by 9.40% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 20,146K shares representing 3.09% ownership of the company. In it's prior filing, the firm reported owning 19,733K shares, representing an increase of 2.05%. The firm increased its portfolio allocation in AAL by 9.31% over the last quarter.
VPMCX - Vanguard PRIMECAP Fund Investor Shares holds 19,321K shares representing 2.96% ownership of the company. In it's prior filing, the firm reported owning 19,365K shares, representing a decrease of 0.23%. The firm increased its portfolio allocation in AAL by 9.19% over the last quarter.
Renaissance Technologies holds 15,723K shares representing 2.41% ownership of the company. In it's prior filing, the firm reported owning 9,251K shares, representing an increase of 41.16%. The firm increased its portfolio allocation in AAL by 91.15% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 15,180K shares representing 2.33% ownership of the company. In it's prior filing, the firm reported owning 15,024K shares, representing an increase of 1.03%. The firm increased its portfolio allocation in AAL by 8.66% over the last quarter.
American Airlines Group Background Information
(This description is provided by the company.)
American Airlines Group Inc. is the parent company of American Airlines. Together with regional partner American Eagle, American Airlines offers an average of nearly 6,700 flights daily to 350 destinations in 50 countries. American Airlines is a founding member of the oneworld® alliance, whose members and members-elect offer nearly 14,250 flights daily to 1,000 destinations in 150 countries.
Additional reading:
AMERICAN AIRLINES GROUP INC. 2023 INCENTIVE AWARD PLAN ARTICLE I.
AMERICAN AIRLINES REPORTS FIRST-QUARTER 2023 FINANCIAL RESULTS
Investor Relations Update April 27, 2023
Certain of the statements contained in this presentation should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigat
Letter Agreement, dated as of January 19, 2023, to Purchase Agreement No. 3219 dated as of October 15, 2008, by and between American Airlines, Inc. and The Boeing Company.*
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on July 13, 2023, Barclays maintained coverage of American Airlines Group (NASDAQ:AAL) with a Underweight recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 8.39%. The put/call ratio of AAL is 2.97, indicating a bearish outlook.
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Fintel reports that on July 13, 2023, Barclays maintained coverage of American Airlines Group (NASDAQ:AAL) with a Underweight recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 8.39%. The put/call ratio of AAL is 2.97, indicating a bearish outlook.
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Fintel reports that on July 13, 2023, Barclays maintained coverage of American Airlines Group (NASDAQ:AAL) with a Underweight recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 8.39%. The put/call ratio of AAL is 2.97, indicating a bearish outlook.
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Fintel reports that on July 13, 2023, Barclays maintained coverage of American Airlines Group (NASDAQ:AAL) with a Underweight recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 8.39%. The put/call ratio of AAL is 2.97, indicating a bearish outlook.
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2462.0
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2023-07-13 00:00:00 UTC
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US STOCKS-Wall St set to extend rally on signs of disinflation
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-extend-rally-on-signs-of-disinflation
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Delta rises on FY profit forecast raise
PepsiCo gains on lifting FY revenue, profit outlook
Weekly jobless claims rise less than expended
June PPI at 0.1% vs est of 0.4%
Futures up: Dow 0.20%, S&P 0.38%, Nasdaq 0.74%
Updated at 08:45 a.m. ET/1245 GMT
By Johann M Cherian and Bansari Mayur Kamdar
July 13 (Reuters) - Wall Street was set to open higher on Thursday after producer prices data provided further evidence of inflation cooling in the world's largest economy, and stoked hopes that the Federal Reserve will soon end its monetary policy tightening.
A Labor Department report showed the producer prices index (PPI) cooled to 0.1% in June from 0.9% in May. Economists polled by Reuters expected producer inflation to have eased to 0.4%.
"This is further confirmation that inflation in the pipeline is beginning to wane," said Peter Cardillo, chief market economist at Spartan Capital Securities.
Traders continue to expect a 21% probability that the central bank will hike borrowing costs in its November meeting. IRPR
Markets have fully priced in a 25-basis-point rate hike later in July.
Rate-sensitive megacap growth names like Apple AAPL.O and Alphabet GOOGL.O added 0.6% and 1.6%, respectively, in premarket trading.
Slightly weighing on sentiment, a Labor Department report showed the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, indicating that the labor market remains tight
At 08:45 a.m. ET, Dow e-minis 1YMcv1 were up 70 points, or 0.2%, S&P 500 e-minis EScv1 were up 17.25 points, or 0.38%, and Nasdaq 100 e-minis NQcv1 were up 114.5 points, or 0.74%.
As U.S. inflation cools and growth remains resilient, bullish investors are now counting on the second-quarter earnings season to provide more fuel for the rally in stocks.
"The market is in a position to continue to rally, but as the flow of earnings hits Wall Street, investors will be very closely watching forecast rather than results," said Cardillo.
PepsiCoPEP.O added 2.4% on raising its annual revenue and profit forecasts for the second time, banking on resilient demand for its snacks and beverages as well as price hikes.
Delta Air LinesDAL.N gained 3.9% after it lifted its full-year profit outlook following stronger-than-expected second-quarter earnings on a relentless post-pandemic travel boom.
Other airlines including American Airlines AAL.O, United Airlines UAL.O and Southwest Airlines LUV.N added between 2.2% and 2.7%.
Overall, earnings for the S&P 500 constituents are expected to have dropped 6.4% in the second quarter, Refinitiv data showed.
Among other movers, Walt DisneyDIS.N rose 0.7% after the film conglomerate's board extended Chief Executive Officer Robert Iger's contract by two years.
Meta Platforms META.O, which recently launched Twitter-rival Threads, outpaced gains among big growth stocks, adding 1.4%. It is set to release a commercial artificial intelligence (AI) model, as per a report.
Markets will parse remarks by policymakers during the day, including Fed Board Governor Christopher Waller, to gauge the tone of the central bank on monetary policy tightening.
(Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru; Additional reporting by Shashwat Chauhan; Editing by Saumyadeb Chakrabarty and Maju Samuel)
((johann.mcherian@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other airlines including American Airlines AAL.O, United Airlines UAL.O and Southwest Airlines LUV.N added between 2.2% and 2.7%. Delta rises on FY profit forecast raise PepsiCo gains on lifting FY revenue, profit outlook Weekly jobless claims rise less than expended June PPI at 0.1% vs est of 0.4% Futures up: Dow 0.20%, S&P 0.38%, Nasdaq 0.74% Updated at 08:45 a.m. ET/1245 GMT By Johann M Cherian and Bansari Mayur Kamdar July 13 (Reuters) - Wall Street was set to open higher on Thursday after producer prices data provided further evidence of inflation cooling in the world's largest economy, and stoked hopes that the Federal Reserve will soon end its monetary policy tightening. "The market is in a position to continue to rally, but as the flow of earnings hits Wall Street, investors will be very closely watching forecast rather than results," said Cardillo.
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Other airlines including American Airlines AAL.O, United Airlines UAL.O and Southwest Airlines LUV.N added between 2.2% and 2.7%. Delta rises on FY profit forecast raise PepsiCo gains on lifting FY revenue, profit outlook Weekly jobless claims rise less than expended June PPI at 0.1% vs est of 0.4% Futures up: Dow 0.20%, S&P 0.38%, Nasdaq 0.74% Updated at 08:45 a.m. ET/1245 GMT By Johann M Cherian and Bansari Mayur Kamdar July 13 (Reuters) - Wall Street was set to open higher on Thursday after producer prices data provided further evidence of inflation cooling in the world's largest economy, and stoked hopes that the Federal Reserve will soon end its monetary policy tightening. A Labor Department report showed the producer prices index (PPI) cooled to 0.1% in June from 0.9% in May.
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Other airlines including American Airlines AAL.O, United Airlines UAL.O and Southwest Airlines LUV.N added between 2.2% and 2.7%. Delta rises on FY profit forecast raise PepsiCo gains on lifting FY revenue, profit outlook Weekly jobless claims rise less than expended June PPI at 0.1% vs est of 0.4% Futures up: Dow 0.20%, S&P 0.38%, Nasdaq 0.74% Updated at 08:45 a.m. ET/1245 GMT By Johann M Cherian and Bansari Mayur Kamdar July 13 (Reuters) - Wall Street was set to open higher on Thursday after producer prices data provided further evidence of inflation cooling in the world's largest economy, and stoked hopes that the Federal Reserve will soon end its monetary policy tightening. Slightly weighing on sentiment, a Labor Department report showed the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, indicating that the labor market remains tight At 08:45 a.m.
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Other airlines including American Airlines AAL.O, United Airlines UAL.O and Southwest Airlines LUV.N added between 2.2% and 2.7%. Delta rises on FY profit forecast raise PepsiCo gains on lifting FY revenue, profit outlook Weekly jobless claims rise less than expended June PPI at 0.1% vs est of 0.4% Futures up: Dow 0.20%, S&P 0.38%, Nasdaq 0.74% Updated at 08:45 a.m. ET/1245 GMT By Johann M Cherian and Bansari Mayur Kamdar July 13 (Reuters) - Wall Street was set to open higher on Thursday after producer prices data provided further evidence of inflation cooling in the world's largest economy, and stoked hopes that the Federal Reserve will soon end its monetary policy tightening. Traders continue to expect a 21% probability that the central bank will hike borrowing costs in its November meeting.
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2463.0
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2023-07-13 00:00:00 UTC
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FOCUS-Chile miners, facing higher taxes, seek faster permits, lower energy costs
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AAL
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https://www.nasdaq.com/articles/focus-chile-miners-facing-higher-taxes-seek-faster-permits-lower-energy-costs
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By Fabian Cambero
SANTIAGO, July 13 (Reuters) - Now that Chile has passed an increase in mining royalties, copper miners are pushing for incentives to keep investing in production of the metal needed for the renewable energy revolution, with steps such as cuts in energy costs, speeded-up permit approvals and other incentives.
Beginning in 2024, mining royalties will rise to a range of 8% to 26% of operating margin from the current range of 5% to 14%. There will also be a 1% ad valorem tax based on sales for miners that post a profit.
Chile's Mining Council, which comprises large private firms, estimates this will ultimately boost the average tax rate of 44.7%, exceeding the top of the range of 38-to-44% in competing countries such as Peru and Australia.
"We're hoping that this competitive disadvantage is somehow compensated with other public policy actions that encourage investment," said the association's head of studies, Jose Tomas Morel.
The elevated royalty is the latest flashpoint between the mining industry in the world's No. 1 copper and No. 2 lithium producer and the leftist government of Gabriel Boric, who came to office promising to get the country's mining industry to help pay for expanded social programs. Industry lobbying did prompt a cut in the original royalty rise plan, and some miners have said they will continue to invest.
"Despite being a strong left-wing government, they engaged the industry and sought to understand and work towards an outcome that struck a balance between public needs and what was required to maintain the competitivity of the industry and the country," said Mark Henry, CEO of BHP GroupBHP.AX, Chile's No. 2 player which had initially said the royalty would prompt a review of its $10 billion investment plan in Chile.
"BHP will continue to invest."
Other big miners were more tentative, and some mining executives are skeptical the industry will follow through on an estimated $70 billion in planned investment without additional stimulus. With Chile's aging mines producing less copper, analysts noted that the more mining investment was needed to produce the government's desired revenue increase, even with the higher royalty.
Industry experts are closely watchingwhether Chilean miner Antofagasta's ANTO.Ldecides to invest $3.7 billion to expand its Centinela mine towards year end.
Antofagasta did not respond to a request for comment. In June, CEO Ivan Arriagada told local media the company was reevaluating the project because the new royalty "does impact competitiveness."
"Some projects on the margin will have to be reassessed to determine whether they are viable or not," Arriagada said.
Freeport-McMoRan, one of the world's largest copper producers,has said it will put Chile investment decisions on hold due to political uncertainty.
Boric has pledged investment incentives. The governmentis in talks with mining companies and other interested parties. Miners have yet to provide a detailed list of incentives they are seeking.
Morel said the government should speed up and simplify the permitting process in which projects need hundreds of permits with each taking months to approve. He said the government should also help miners navigate thorny environmental and indigenous regulation issues which can lead to lengthy court cases.
Energy costs are another concern. Chile's mining industry consumes about 15% of the country's total energy output, and the Chilean Copper Commission says energy represents about 11% of miners' costs. The industry would like the government to pass regulations cutting energy costs for miners.
DECLINING PRODUCTION
The mining royalty increase was part of a wider tax reform plan that congress rejected in March. Boric's government hopes to boost total copper revenue for the state up to 0.45% of GDP or about $1.35 billion a year, using the funds to boost programs such as child care, security, health care and education.
Gustavo Lagos, a professor at the mining department at Catholic University in Santiago, said the new royalty might not hit its target since most new projects are focused on compensating for declining production rather than adding supply.
"I think there will be investment, what I don't think is that production will grow more, it will be difficult for us to go above 6 million (metric) tons in Chile and that is what ultimately determines revenue," Lagos said.
Chile's copper supply has fallen due to the natural decline in mineral grades of its oldest deposits, delays in project start-ups, accidents and other problems. Production in 2022 totaled 5.33 million metric tons, down from a record 5.83 million in 2018.
The government is holding talks with business groups and other political actors for a second shot at tax reform, and miners hope this might possibly boost their chances for incentives.
One mining executive, who asked not to be named due to the sensitivity of the issue, said the government might compromise further to try and boost future investment.
"The (projects) that are not carried out are going to come to a point where they are going to negotiate with the government and say 'I'm doing this project but I need another guarantee,'" the executive said.
(Reporting by Fabian Andres Cambero; Editing by Alexander Villegas, Christian Plumb and David Gregorio)
((fabian.cambero@thomsonreuters.com; Twitter: @fab_reuters; +569 62479675;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Chile's Mining Council, which comprises large private firms, estimates this will ultimately boost the average tax rate of 44.7%, exceeding the top of the range of 38-to-44% in competing countries such as Peru and Australia. Gustavo Lagos, a professor at the mining department at Catholic University in Santiago, said the new royalty might not hit its target since most new projects are focused on compensating for declining production rather than adding supply. Chile's copper supply has fallen due to the natural decline in mineral grades of its oldest deposits, delays in project start-ups, accidents and other problems.
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By Fabian Cambero SANTIAGO, July 13 (Reuters) - Now that Chile has passed an increase in mining royalties, copper miners are pushing for incentives to keep investing in production of the metal needed for the renewable energy revolution, with steps such as cuts in energy costs, speeded-up permit approvals and other incentives. Industry experts are closely watchingwhether Chilean miner Antofagasta's ANTO.Ldecides to invest $3.7 billion to expand its Centinela mine towards year end. Boric's government hopes to boost total copper revenue for the state up to 0.45% of GDP or about $1.35 billion a year, using the funds to boost programs such as child care, security, health care and education.
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By Fabian Cambero SANTIAGO, July 13 (Reuters) - Now that Chile has passed an increase in mining royalties, copper miners are pushing for incentives to keep investing in production of the metal needed for the renewable energy revolution, with steps such as cuts in energy costs, speeded-up permit approvals and other incentives. With Chile's aging mines producing less copper, analysts noted that the more mining investment was needed to produce the government's desired revenue increase, even with the higher royalty. Chile's mining industry consumes about 15% of the country's total energy output, and the Chilean Copper Commission says energy represents about 11% of miners' costs.
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By Fabian Cambero SANTIAGO, July 13 (Reuters) - Now that Chile has passed an increase in mining royalties, copper miners are pushing for incentives to keep investing in production of the metal needed for the renewable energy revolution, with steps such as cuts in energy costs, speeded-up permit approvals and other incentives. Industry lobbying did prompt a cut in the original royalty rise plan, and some miners have said they will continue to invest. Freeport-McMoRan, one of the world's largest copper producers,has said it will put Chile investment decisions on hold due to political uncertainty.
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2464.0
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2023-07-13 00:00:00 UTC
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Delta Air forecasts stronger earnings on post-pandemic travel boom
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AAL
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https://www.nasdaq.com/articles/delta-air-forecasts-stronger-earnings-on-post-pandemic-travel-boom
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By Rajesh Kumar Singh
CHICAGO, July 13 (Reuters) - Delta Air Lines DAL.N on Thursday lifted its full-year profit outlook after its second-quarter earnings topped Wall Street estimates on a relentless post-pandemic travel boom.
In an interview, CEO Ed Bastian said that while bookings are expected to follow a seasonal pattern after the Labor Day holiday in September when kids return to school and overall demand remains "quite strong."
"You're going to see continued strong international growth everywhere," Bastian told Reuters. "The domestic environment is going to be quite resilient as well."
Delta'sshares rose 4% in premarket trading after the company said it now expects adjusted earnings of $6-$7 per share this year, compared with its previous forecast of $5-$6 per share.
Shares of other airlines also followed Delta's gains, with American Airlines AAL.O, United Airlines UAL.Oand Southwest Airlines LUV.Nall up about 1.8% before the bell.
It reported an adjusted profit of $2.68 per share for the second quarter, above the $2.40 per share expected by analysts in a Refinitiv survey.
In the quarter through September, the company estimates earnings in the range of $2.20-$2.50 per share. That's higher than the $2.07 expected by Wall Street analysts. Revenue in the quarter is estimated to be up between 11% and 14% from a year ago.
Delta expects non-fuel costs to decline by 1% to 3% in the third quarter from a year ago.
The urge to travel has sent bookings at U.S. carriers soaring. But with higher borrowing costs and high inflation stretching household budgets, questions linger about the sustainability of consumer spending.
U.S. inflation data on Wednesday fueled those concerns as airline fares posted a third straight monthly decline. Year-over-year, fares dropped at their fastest pace since February 2021.
Bastian suggested not to read too much into the data as it compared to a period of time last year when consumers had just started to travel again after the pandemic and the supply was limited, leading to a surge in ticket prices.
"Crazy" increases in ticket prices at that time were not "sustainable," he said. With increased supply, Bastian said fares now have "normalized."
Delta's earnings report shows airlines are still enjoying pricing power. Delta's total revenue per seat mile (TRASM), a proxy for pricing power, was up 1% in the second quarter from a year ago despite a 17% jump in capacity.
Bastian said a high statistical base may impact the company's TRASM in the second half of the year, but it is expected to stay "quite strong."
Delta's air traffic liability, reflecting future bookings, at the end of the April-June quarter was $10.4 billion, up $500 million from a year ago.
Carriers typically rely on big-spending corporate customers to fill high-margin seats after the summer travel season, but recovery in corporate travel remains sluggish.
Bastian said even though people are not traveling a lot for work, hybrid work arrangements have led to a 50% jump in personal trips versus the pre-pandemic period.
"People are traveling for more reasons than just work at an accelerated pace," he said.
(Reporting by Rajesh Kumar Singh; Additional reporting by Shivansh Tiwary in Bengaluru; Editing by Leslie Adler and Maju Samuel)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of other airlines also followed Delta's gains, with American Airlines AAL.O, United Airlines UAL.Oand Southwest Airlines LUV.Nall up about 1.8% before the bell. By Rajesh Kumar Singh CHICAGO, July 13 (Reuters) - Delta Air Lines DAL.N on Thursday lifted its full-year profit outlook after its second-quarter earnings topped Wall Street estimates on a relentless post-pandemic travel boom. In an interview, CEO Ed Bastian said that while bookings are expected to follow a seasonal pattern after the Labor Day holiday in September when kids return to school and overall demand remains "quite strong."
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Shares of other airlines also followed Delta's gains, with American Airlines AAL.O, United Airlines UAL.Oand Southwest Airlines LUV.Nall up about 1.8% before the bell. By Rajesh Kumar Singh CHICAGO, July 13 (Reuters) - Delta Air Lines DAL.N on Thursday lifted its full-year profit outlook after its second-quarter earnings topped Wall Street estimates on a relentless post-pandemic travel boom. Delta'sshares rose 4% in premarket trading after the company said it now expects adjusted earnings of $6-$7 per share this year, compared with its previous forecast of $5-$6 per share.
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Shares of other airlines also followed Delta's gains, with American Airlines AAL.O, United Airlines UAL.Oand Southwest Airlines LUV.Nall up about 1.8% before the bell. By Rajesh Kumar Singh CHICAGO, July 13 (Reuters) - Delta Air Lines DAL.N on Thursday lifted its full-year profit outlook after its second-quarter earnings topped Wall Street estimates on a relentless post-pandemic travel boom. Bastian suggested not to read too much into the data as it compared to a period of time last year when consumers had just started to travel again after the pandemic and the supply was limited, leading to a surge in ticket prices.
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Shares of other airlines also followed Delta's gains, with American Airlines AAL.O, United Airlines UAL.Oand Southwest Airlines LUV.Nall up about 1.8% before the bell. By Rajesh Kumar Singh CHICAGO, July 13 (Reuters) - Delta Air Lines DAL.N on Thursday lifted its full-year profit outlook after its second-quarter earnings topped Wall Street estimates on a relentless post-pandemic travel boom. Delta expects non-fuel costs to decline by 1% to 3% in the third quarter from a year ago.
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2465.0
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2023-07-13 00:00:00 UTC
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5 U.S. Bigwigs Likely to Win Big in Q2 Earnings
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AAL
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https://www.nasdaq.com/articles/5-u.s.-bigwigs-likely-to-win-big-in-q2-earnings
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nan
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The second-quarter 2023 earnings season will kick start this week as major banks are slated to report their quarterly financial numbers. The season is beginning with tepid expectations as the market’s benchmark — the S&P 500 Index — is likely to witness the third consecutive quarter of earnings decline. Estimates for second-quarter earnings have been declining since April.
Despite a tight labor market, stringent monetary control by the Fed in the last one and a half years and rigorous hiking of interest rate have resulted in the decline in several key economic data. However, Wall Street saw an impressive first-half buoyed by the Fed’s decision to reduce the magnitude of interest rate hike.
Several stocks surged in first-half 2023. Many of them are set to beat on earnings results. This may generate further upside for stocks.
Stocks in Focus
We have narrowed our search to five U.S. corporate behemoths that are poised to beat on second-quarter earnings results next week and provided more than 20% returns year to date. Each of these stocks carries a Zacks Rank #3 (Hold) and has a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that for stocks with the combination of a Zacks Rank #3 or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are anticipated to appreciate after their earnings releases. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The chart below shows the price performance of five stocks mentioned below in the last quarter.
Image Source: Zacks Investment Research
Netflix Inc. NFLX is expected to continue dominating the streaming space, courtesy of its diversified content portfolio, which is attributable to heavy investments in the production and distribution of localized, foreign-language content. NFLX’s efforts to attract viewers through investing in more regional programming have added significantly to its user base.
Netflix has an Earnings ESP of +2.89%. It has an expected earnings growth rate of 13.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the last 30 days. NFLX is set to release earnings results on Jul 19, after the closing bell.
Tesla Inc.’s TSLA record second-quarter 2023 deliveries signal its growing dominance in the electric vehicle market as it continues to expand its production and sales globally. We expect deliveries to see an annualized growth of around 37% in 2023 for TSLA.
Production ramp-up at gigafactory 4 (in Berlin) and 5 (in Austin) and the introduction of new models, including Semi and Cybertruck, are set to support long-term deliveries growth. We anticipate TSLA’s automotive revenues to rise 19% this year.
Tesla has an Earnings ESP of +2.41%. The Zacks Consensus Estimate for current-year earnings has improved 2.9% over the last 30 days. TSLA recorded earnings surprises in three out of the last four reported quarters, with an average beat of 11.7%. The company is set to release earnings results on Jul 19, after the closing bell.
American Airlines Group Inc. AAL has benefitted from Improved air-travel demand, particularly on the domestic front. Recently, AAL’s management lifted its earnings per share forecast for second-quarter 2023, driven primarily by the anticipation of a further surge in air travel demand in the summer season.
American Airlines has an Earnings ESP of +1.16%. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last seven days.
AAL recorded earnings surprises in three out of the last four reported quarters, with an average beat of 12.9%. The company is set to release earnings results on Jul 20, before the opening bell.
United Airlines Holdings Inc. UAL is seeing steady recovery in domestic and international air-travel demand. Owing to robust air-travel demand, UAL expects revenues for the June quarter to grow 14-16% year-over-year. Our second-quarter total revenue estimate hints at a 14.7% year over year increase. For second-quarter 2023, UAL expects capacity to improve by almost 18.5% from the year-ago reported figure.
United Airlines has an Earnings ESP of +2.54%. It has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 10.2% over the last seven days.
UAL recorded earnings surprises in three out of the last four reported quarters, with an average beat of 9.1%. The company is set to release earnings results on Jul 19, after the closing bell.
Capital One Financial Corp. COF is likely to benefit from decent consumer loan demand and higher interest rates. Our estimates for NII and non-interest income suggest a CAGR of 4.9% and 5.1%, respectively, by 2025. We project net loans to increase 4.6% in 2023.
Solid credit card and online banking operations and strategic acquisitions are likely to keep supporting COF’s financials. Recently, COF acquired Velocity Black, to supplement its offerings of customer experiences.
Capital One has an Earnings ESP of +1.32%. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 30 days. COF is set to release earnings results on Jul 20, after the closing bell.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Just Released: Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for 2023?
From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%. Our Director of Research has now combed through 4,000 companies covered by the Zacks Rank and handpicked the best 10 tickers to buy and hold in 2023. Don’t miss your chance to still be among the first to get in on these just-released stocks.
See New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Capital One Financial Corporation (COF) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Recently, AAL’s management lifted its earnings per share forecast for second-quarter 2023, driven primarily by the anticipation of a further surge in air travel demand in the summer season. American Airlines Group Inc. AAL has benefitted from Improved air-travel demand, particularly on the domestic front. AAL recorded earnings surprises in three out of the last four reported quarters, with an average beat of 12.9%.
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American Airlines Group Inc. AAL has benefitted from Improved air-travel demand, particularly on the domestic front. Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Capital One Financial Corporation (COF) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Recently, AAL’s management lifted its earnings per share forecast for second-quarter 2023, driven primarily by the anticipation of a further surge in air travel demand in the summer season.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Netflix, Inc. (NFLX) : Free Stock Analysis Report Capital One Financial Corporation (COF) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. AAL has benefitted from Improved air-travel demand, particularly on the domestic front. Recently, AAL’s management lifted its earnings per share forecast for second-quarter 2023, driven primarily by the anticipation of a further surge in air travel demand in the summer season.
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American Airlines Group Inc. AAL has benefitted from Improved air-travel demand, particularly on the domestic front. Recently, AAL’s management lifted its earnings per share forecast for second-quarter 2023, driven primarily by the anticipation of a further surge in air travel demand in the summer season. AAL recorded earnings surprises in three out of the last four reported quarters, with an average beat of 12.9%.
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2466.0
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2023-07-13 00:00:00 UTC
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Can American Airlines Stock Continue to Soar in the Second Half of 2023?
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AAL
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https://www.nasdaq.com/articles/can-american-airlines-stock-continue-to-soar-in-the-second-half-of-2023
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Shares of American Airlines (AAL) have had a stellar run in 2023 so far. This is due to the continued recovery in the pent-up demand post-pandemic, impressive results and lower fuel costs.
As of yesterday’s close, the stock is up more than 46% year to date (YTD). AAL is up 0.5% today after its competitor, Delta Airlines (DAL), reported record quarterly results this morning.
www.barchart.com
After such an impressive run, will AAL continue to rally in the second half of the year? Or will the share price performance hit some turbulence?
About American Airlines
Founded in April 1926, Fort Worth, TX based American Airlines is one of the largest airline operators globally. As of 2023, it is the largest airline in the world by passengers carried and revenue passenger miles. Notably, its extensive network operates roughly 6,800 flights per day to about 350 destinations in 48 countries.
Meanwhile, a report by database company Statista stated that between February 2022 to January 2023, American Airlines had the highest domestic market share among US airlines at 17.5%, followed by Delta (17.3%) and Southwest Airlines (16.9%).
Solid Results and Upbeat Management Commentary
A compelling case that can be made for the continued rise in American Airlines stock in the second half of 2023 is its robust results for the latest quarter.
Not only did the airline company report a 37% yearly rise in operating revenues to $12.2 billion in the Jan - Mar ‘23 period, it reported a profit of $10 million compared to a mammoth loss of $1.64 billion in the same period a year ago.
The company’s improved results can be attributed to the more than 476,000 flights operated in the first quarter with an average load factor of 80%. Load factor is a critical metric for airlines which measures the percentage of seats occupied by passengers on a particular flight or across an entire airline's operation.
Meanwhile, the company’s operational strength can be gauged from the fact that in Q12023, it generated operating cash flows of $3.3 billion which denotes a blowout growth of 181.3% from the prior year. Unsurprisingly, such solid cash flow generating capability has resulted in the company paring its debt substantially by $850 million in the quarter. Moreover, the management emphasized that it is well on its way to achieving its goal of reducing total debt by $15 billion by 2025.
Moreover, the company also reiterated its full-year 2023 adjusted earnings per share forecast of $2.50-$3.50 per share. Yet, it expects to report EPS between $1.20 and $1.40 in the second quarter which is lower than the consensus forecast of $1.56.
However, a slowdown in revenues from the cargo segment by almost 39% from the previous year to $223 million remains a concern. Further, a yearly jump of 27% in fuel costs, which is considered to be the major cost for an airline, to $3.2 billion can act as a headwind for the company’s profitability. Although fuel costs have largely remained stable, even somewhat on a downward trend, any adverse geopolitical development or supply constraint can throw a spanner in the works for the airline industry.
Valuation Comfort
American Airlines stock is trading at comfortable valuation levels compared to its peers.
With a PE of 7.30, it is much lower than the PE of Southwest Airlines (LUV), 38.71, and Delta Airlines 16.40, even United Airlines (UAL) has a higher PE at 9.69.
In terms of another key valuation metric which is the Price-to-Sales (PS) ratio, American Airlines stock appears to be undervalued.
While Southwest Airlines, United Airlines and Delta Airlines have a PS ratio of 0.94, 0.38 and 0.58, respectively, American Airlines’ PS ratio is a mere 0.23.
Analyst Estimates
However, even with comfortable valuation levels and decent results, analysts are projecting a decline in earnings estimates for American Airlines in FY 2024.
www.barchart.com
Analysts have a “Hold” rating on the stock with mean price target of $18.69, indicating limited upside potential from current levels. Notably, out of 12 analysts covering the stock 2 have a “Strong Buy” rating, 9 have a “Hold” rating and 1 has a “Moderate Sell” rating.
www.barchart.com
Final Takeaway
American Airlines' share price performance has been quite impressive year-to-date.
Which may seem to be surprising as its decent balance sheet position, operational strength, reporting of profits in the latest quarter from a loss in the same period last year, leading market share and relative valuation comfort all allude to the fact that its stellar share price performance in the first half of 2023 should continue in the second half too.
However, analysts, as can be gauged from their caution above, perhaps are a bit sceptical of the sustenance of the American Airlines share price rally in the second half of 2023. Moreover, not only American Airlines, the whole industry’s vulnerability to any negative impact of a rise in fuel prices can also derail the share price growth.
All in all, I believe that the rise in American Airlines' share price is expected to continue in the second half of 2023. Although the rise in the stock price may not be as acute as it was in the first half (due to the probable rise in oil prices), its robust fundamentals and the persistence of demand especially considering the upcoming holiday season are likely to support the share price growth.
On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of American Airlines (AAL) have had a stellar run in 2023 so far. AAL is up 0.5% today after its competitor, Delta Airlines (DAL), reported record quarterly results this morning. www.barchart.com After such an impressive run, will AAL continue to rally in the second half of the year?
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Shares of American Airlines (AAL) have had a stellar run in 2023 so far. AAL is up 0.5% today after its competitor, Delta Airlines (DAL), reported record quarterly results this morning. www.barchart.com After such an impressive run, will AAL continue to rally in the second half of the year?
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Shares of American Airlines (AAL) have had a stellar run in 2023 so far. AAL is up 0.5% today after its competitor, Delta Airlines (DAL), reported record quarterly results this morning. www.barchart.com After such an impressive run, will AAL continue to rally in the second half of the year?
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Shares of American Airlines (AAL) have had a stellar run in 2023 so far. AAL is up 0.5% today after its competitor, Delta Airlines (DAL), reported record quarterly results this morning. www.barchart.com After such an impressive run, will AAL continue to rally in the second half of the year?
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2467.0
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2023-07-13 00:00:00 UTC
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Interesting AAL Put And Call Options For September 1st
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AAL
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https://www.nasdaq.com/articles/interesting-aal-put-and-call-options-for-september-1st
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nan
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nan
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the September 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new September 1st contracts and identified one put and one call contract of particular interest.
The put contract at the $17.00 strike price has a current bid of 39 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $17.00, but will also collect the premium, putting the cost basis of the shares at $16.61 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $18.41/share today.
Because the $17.00 strike represents an approximate 8% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.29% return on the cash commitment, or 16.75% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for American Airlines Group Inc, and highlighting in green where the $17.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $19.00 strike price has a current bid of 76 cents. If an investor was to purchase shares of AAL stock at the current price level of $18.41/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $19.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.33% if the stock gets called away at the September 1st expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $19.00 strike highlighted in red:
Considering the fact that the $19.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 4.13% boost of extra return to the investor, or 30.14% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $18.41) to be 41%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
XLI Options Chain
NVY Videos
TUNE Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $19.00 strike highlighted in red: Considering the fact that the $19.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the September 1st expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $19.00 strike highlighted in red: Considering the fact that the $19.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the September 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new September 1st contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAL's trailing twelve month trading history, with the $19.00 strike highlighted in red: Considering the fact that the $19.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the September 1st expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new September 1st contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new September 1st contracts and identified one put and one call contract of particular interest. Below is a chart showing AAL's trailing twelve month trading history, with the $19.00 strike highlighted in red: Considering the fact that the $19.00 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the September 1st expiration.
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2468.0
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2023-07-12 00:00:00 UTC
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Delta (DAL) Expects Passenger Revenues to Aid Its Q2 Earnings
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AAL
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https://www.nasdaq.com/articles/delta-dal-expects-passenger-revenues-to-aid-its-q2-earnings
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nan
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nan
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Delta Air Lines’ DAL passenger revenues account for bulk of its top line, like most other airlines,. Driven by the buoyant air-travel demand scenario, passenger revenues are likely to have moved north. This, in turn, is expected to boost Delta’s performance, when it reports second-quarter 2023 results on Jul 13.
Passenger Revenues in Q1: A Flashback
Air-travel demand was strong in the first quarter of 2023. Riding on the rosy scenario, passenger revenues, accounting for 81.6% of total revenues, increased 51% year over year to $10,411 million at DAL.
Domestic markets contributed 72.9% to total passenger revenues. Domestic passenger revenues in the March quarter increased 37% year over year. Passenger revenues also improved on the international front at DAL. The stock currently carries a Zacks Rank #2 (Buy).
Passenger Revenues: A Tailwind for Q2 as Well
We expect upbeat air-travel demand, particularly on the domestic front, to have boosted Delta Air Lines’ top-line performance in the to-be-reported quarter. Our estimate indicates a 5.6% increase from the second-quarter 2022 actuals.
Driven by the uptick, DAL’s management expects operating margin for the second quarter to be 16%. Load factor (percentage of seats filled by passengers) is also likely to have been impressive in the June quarter. The Zacks Consensus Estimate for load factor is pegged at 86%, higher than 85% reported in second-quarter 2022.
Backed by strong passenger revenues, management now estimates adjusted earnings per share to be between $2.25 and $2.50 for the quarter under review. The earlier projection was in the range of $2-$2.25. The Zacks Consensus Estimate is currently pegged at $2.42.
Overall Top & Bottom-Line Projections
Mainly owing to buoyant passenger revenues, the consensus mark for quarterly sales is presently pegged at $15.01 billion, implying an 8.57% increase from second-quarter 2022 reported figure. The Zacks Consensus Estimate for earnings currently hints at an increase of 68.06% from second-quarter 2022 levels.
Our Take
High passenger revenues coupled with low fuel costs (oil price declined 6.6% in the Apr-Jun period) are likely to aid Delta’s results when it kicks off the second-quarter earnings season for airlines.
Apart from Delta, we expect the above tailwinds to have aided performances of fellow airline players like United Airlines UAL and American Airlines AAL. While United Airlines is scheduled to report second-quarter 2023 results on Jul 19, American Airlines will release the same on Jul 20. Each stock is currently carrying a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
United Airlines has outpaced the Zacks Consensus Estimate for earnings in three of the last four quarters (missing the consensus mark in the remaining quarter). The average beat is 9.14%. The Zacks Consensus Estimate for second-quarter 2023 earnings has increased 7.96% over the past 60 days.
American Airlines has outpaced the Zacks Consensus Estimate for earnings in three of the last four quarters (missing the consensus mark in the remaining quarter). The average beat is 6.19%. The Zacks Consensus Estimate for second-quarter 2023 earnings has increased 24.03% over the past 60 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apart from Delta, we expect the above tailwinds to have aided performances of fellow airline players like United Airlines UAL and American Airlines AAL. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Passenger Revenues: A Tailwind for Q2 as Well We expect upbeat air-travel demand, particularly on the domestic front, to have boosted Delta Air Lines’ top-line performance in the to-be-reported quarter.
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Apart from Delta, we expect the above tailwinds to have aided performances of fellow airline players like United Airlines UAL and American Airlines AAL. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Delta Air Lines’ DAL passenger revenues account for bulk of its top line, like most other airlines,.
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Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Apart from Delta, we expect the above tailwinds to have aided performances of fellow airline players like United Airlines UAL and American Airlines AAL. United Airlines has outpaced the Zacks Consensus Estimate for earnings in three of the last four quarters (missing the consensus mark in the remaining quarter).
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Apart from Delta, we expect the above tailwinds to have aided performances of fellow airline players like United Airlines UAL and American Airlines AAL. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Delta Air Lines’ DAL passenger revenues account for bulk of its top line, like most other airlines,.
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2469.0
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2023-07-12 00:00:00 UTC
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Susquehanna Maintains American Airlines Group (AAL) Neutral Recommendation
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AAL
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https://www.nasdaq.com/articles/susquehanna-maintains-american-airlines-group-aal-neutral-recommendation-0
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nan
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nan
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Fintel reports that on July 12, 2023, Susquehanna maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation.
Analyst Price Forecast Suggests 5.39% Downside
As of July 6, 2023, the average one-year price target for American Airlines Group is 17.79. The forecasts range from a low of 11.11 to a high of $27.30. The average price target represents a decrease of 5.39% from its latest reported closing price of 18.80.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Airlines Group is 51,177MM, a decrease of 2.07%. The projected annual non-GAAP EPS is 1.52.
What is the Fund Sentiment?
There are 1040 funds or institutions reporting positions in American Airlines Group. This is an increase of 30 owner(s) or 2.97% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 8.24%. Total shares owned by institutions increased in the last three months by 4.21% to 413,194K shares.
The put/call ratio of AAL is 2.96, indicating a bearish outlook.
What are Other Shareholders Doing?
Primecap Management holds 37,738K shares representing 5.78% ownership of the company. In it's prior filing, the firm reported owning 38,099K shares, representing a decrease of 0.95%. The firm increased its portfolio allocation in AAL by 9.40% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 20,146K shares representing 3.09% ownership of the company. In it's prior filing, the firm reported owning 19,733K shares, representing an increase of 2.05%. The firm increased its portfolio allocation in AAL by 9.31% over the last quarter.
VPMCX - Vanguard PRIMECAP Fund Investor Shares holds 19,321K shares representing 2.96% ownership of the company. In it's prior filing, the firm reported owning 19,365K shares, representing a decrease of 0.23%. The firm increased its portfolio allocation in AAL by 9.19% over the last quarter.
Renaissance Technologies holds 15,723K shares representing 2.41% ownership of the company. In it's prior filing, the firm reported owning 9,251K shares, representing an increase of 41.16%. The firm increased its portfolio allocation in AAL by 91.15% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 15,180K shares representing 2.33% ownership of the company. In it's prior filing, the firm reported owning 15,024K shares, representing an increase of 1.03%. The firm increased its portfolio allocation in AAL by 8.66% over the last quarter.
American Airlines Group Background Information
(This description is provided by the company.)
American Airlines Group Inc. is the parent company of American Airlines. Together with regional partner American Eagle, American Airlines offers an average of nearly 6,700 flights daily to 350 destinations in 50 countries. American Airlines is a founding member of the oneworld® alliance, whose members and members-elect offer nearly 14,250 flights daily to 1,000 destinations in 150 countries.
Additional reading:
AMERICAN AIRLINES GROUP INC. 2023 INCENTIVE AWARD PLAN ARTICLE I.
AMERICAN AIRLINES REPORTS FIRST-QUARTER 2023 FINANCIAL RESULTS
Investor Relations Update April 27, 2023
Certain of the statements contained in this presentation should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigat
Letter Agreement, dated as of January 19, 2023, to Purchase Agreement No. 3219 dated as of October 15, 2008, by and between American Airlines, Inc. and The Boeing Company.*
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on July 12, 2023, Susquehanna maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 8.24%. The put/call ratio of AAL is 2.96, indicating a bearish outlook.
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Fintel reports that on July 12, 2023, Susquehanna maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 8.24%. The put/call ratio of AAL is 2.96, indicating a bearish outlook.
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Fintel reports that on July 12, 2023, Susquehanna maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 8.24%. The put/call ratio of AAL is 2.96, indicating a bearish outlook.
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Fintel reports that on July 12, 2023, Susquehanna maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 8.24%. The put/call ratio of AAL is 2.96, indicating a bearish outlook.
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2470.0
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2023-07-12 00:00:00 UTC
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Goldman Sachs Maintains American Airlines Group (AAL) Neutral Recommendation
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AAL
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https://www.nasdaq.com/articles/goldman-sachs-maintains-american-airlines-group-aal-neutral-recommendation-1
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nan
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nan
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Fintel reports that on July 12, 2023, Goldman Sachs maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation.
Analyst Price Forecast Suggests 5.39% Downside
As of July 6, 2023, the average one-year price target for American Airlines Group is 17.79. The forecasts range from a low of 11.11 to a high of $27.30. The average price target represents a decrease of 5.39% from its latest reported closing price of 18.80.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Airlines Group is 51,177MM, a decrease of 2.07%. The projected annual non-GAAP EPS is 1.52.
What is the Fund Sentiment?
There are 1040 funds or institutions reporting positions in American Airlines Group. This is an increase of 30 owner(s) or 2.97% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 8.24%. Total shares owned by institutions increased in the last three months by 4.21% to 413,194K shares.
The put/call ratio of AAL is 2.96, indicating a bearish outlook.
What are Other Shareholders Doing?
Primecap Management holds 37,738K shares representing 5.78% ownership of the company. In it's prior filing, the firm reported owning 38,099K shares, representing a decrease of 0.95%. The firm increased its portfolio allocation in AAL by 9.40% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 20,146K shares representing 3.09% ownership of the company. In it's prior filing, the firm reported owning 19,733K shares, representing an increase of 2.05%. The firm increased its portfolio allocation in AAL by 9.31% over the last quarter.
VPMCX - Vanguard PRIMECAP Fund Investor Shares holds 19,321K shares representing 2.96% ownership of the company. In it's prior filing, the firm reported owning 19,365K shares, representing a decrease of 0.23%. The firm increased its portfolio allocation in AAL by 9.19% over the last quarter.
Renaissance Technologies holds 15,723K shares representing 2.41% ownership of the company. In it's prior filing, the firm reported owning 9,251K shares, representing an increase of 41.16%. The firm increased its portfolio allocation in AAL by 91.15% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 15,180K shares representing 2.33% ownership of the company. In it's prior filing, the firm reported owning 15,024K shares, representing an increase of 1.03%. The firm increased its portfolio allocation in AAL by 8.66% over the last quarter.
American Airlines Group Background Information
(This description is provided by the company.)
American Airlines Group Inc. is the parent company of American Airlines. Together with regional partner American Eagle, American Airlines offers an average of nearly 6,700 flights daily to 350 destinations in 50 countries. American Airlines is a founding member of the oneworld® alliance, whose members and members-elect offer nearly 14,250 flights daily to 1,000 destinations in 150 countries.
Additional reading:
AMERICAN AIRLINES GROUP INC. 2023 INCENTIVE AWARD PLAN ARTICLE I.
AMERICAN AIRLINES REPORTS FIRST-QUARTER 2023 FINANCIAL RESULTS
Investor Relations Update April 27, 2023
Certain of the statements contained in this presentation should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigat
Letter Agreement, dated as of January 19, 2023, to Purchase Agreement No. 3219 dated as of October 15, 2008, by and between American Airlines, Inc. and The Boeing Company.*
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Fintel reports that on July 12, 2023, Goldman Sachs maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 8.24%. The put/call ratio of AAL is 2.96, indicating a bearish outlook.
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Fintel reports that on July 12, 2023, Goldman Sachs maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 8.24%. The put/call ratio of AAL is 2.96, indicating a bearish outlook.
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Fintel reports that on July 12, 2023, Goldman Sachs maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 8.24%. The put/call ratio of AAL is 2.96, indicating a bearish outlook.
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Fintel reports that on July 12, 2023, Goldman Sachs maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. Average portfolio weight of all funds dedicated to AAL is 0.14%, an increase of 8.24%. The put/call ratio of AAL is 2.96, indicating a bearish outlook.
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2471.0
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2023-07-12 00:00:00 UTC
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AAL Crosses Above Average Analyst Target
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AAL
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https://www.nasdaq.com/articles/aal-crosses-above-average-analyst-target-0
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nan
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nan
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In recent trading, shares of American Airlines Group Inc (Symbol: AAL) have crossed above the average analyst 12-month target price of $18.69, changing hands for $18.80/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 13 different analyst targets within the Zacks coverage universe contributing to that average for American Airlines Group Inc, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $11.00. And then on the other side of the spectrum one analyst has a target as high as $29.00. The standard deviation is $5.662.
But the whole reason to look at the average AAL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAL crossing above that average target price of $18.69/share, investors in AAL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $18.69 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover American Airlines Group Inc:
RECENT AAL ANALYST RATINGS BREAKDOWN
» Current 1 Month Ago 2 Month Ago 3 Month Ago
Strong buy ratings: 2 2 2 1
Buy ratings: 0 0 0 0
Hold ratings: 9 11 11 12
Sell ratings: 1 1 1 1
Strong sell ratings: 0 1 1 1
Average rating: 2.75 2.93 2.93 3.07
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on AAL — FREE.
10 ETFs With Most Upside To Analyst Targets »
Also see:
Institutional Holders of TETC
Funds Holding AIF
PCT Average Annual Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In recent trading, shares of American Airlines Group Inc (Symbol: AAL) have crossed above the average analyst 12-month target price of $18.69, changing hands for $18.80/share. And so with AAL crossing above that average target price of $18.69/share, investors in AAL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $18.69 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? But the whole reason to look at the average AAL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
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In recent trading, shares of American Airlines Group Inc (Symbol: AAL) have crossed above the average analyst 12-month target price of $18.69, changing hands for $18.80/share. But the whole reason to look at the average AAL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAL crossing above that average target price of $18.69/share, investors in AAL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $18.69 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
|
And so with AAL crossing above that average target price of $18.69/share, investors in AAL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $18.69 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? In recent trading, shares of American Airlines Group Inc (Symbol: AAL) have crossed above the average analyst 12-month target price of $18.69, changing hands for $18.80/share. But the whole reason to look at the average AAL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes.
|
In recent trading, shares of American Airlines Group Inc (Symbol: AAL) have crossed above the average analyst 12-month target price of $18.69, changing hands for $18.80/share. But the whole reason to look at the average AAL price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with AAL crossing above that average target price of $18.69/share, investors in AAL have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $18.69 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table?
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2472.0
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2023-07-12 00:00:00 UTC
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PREVIEW-US airline stock valuations stuck on runway despite travel boom
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AAL
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https://www.nasdaq.com/articles/preview-us-airline-stock-valuations-stuck-on-runway-despite-travel-boom
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nan
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nan
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By Rajesh Kumar Singh
CHICAGO, July 12 (Reuters) - Relentless travel demand has sent bookings at U.S. carriers soaring, translating into bumper earnings. However, their shares have not shown the same trajectory as questions linger about the sustainability of consumer spending.
Airline shares have suffered because of bearish sentiment about the broader economy as interest rates are up sharply and inflation remains high, analysts said. That's even though consumers have shifted their spending to leisure activities like travel.
US Global Jets ETF JETS.K, an exchange-traded fund that includes airlines and is seen as a proxy for the industry, is down about 30% from pre-pandemic levels even as passenger traffic has hit record highs. In the same timeframe, S&P 500 .SPX has gained about 31%.
Even after a rally in airline stocks so far this year, shares of United Airlines UAL.O and Delta Air Lines DAL.N still trade at 5.2 and 7 times forward profit estimates, respectively, well below the S&P 500's 19.1 multiple.
"It is hard for airlines to decouple from the macro trade," Jefferies analyst Sheila Kahyaoglu said.
Airlines will again have an opportunity to sell their story when they report earnings starting this week.
Delta, which reports second-quarter results Thursday, expects profits to nearly double this year, but its shares are still down 21% from 2019 highs. United has forecast a four-fold jump in earnings, but its shares are down about 40% from pre-pandemic levels.
The number of doubters is up as short interest in airline shares is at 4.9%, compared with little over 3% before the pandemic, TD Cowen data shows.
"Everyone is so bearish, but airlines themselves are doing exceptionally well," said Frank Holmes, CEO at U.S. Global Investors, which owns airline stocks.
The number of passengers moving through airport checkpoints has been averaging above pre-pandemic levels since mid-May and hit a four-year high last month, U.S. Transportation Security Administration data showed.
Strong demand has bolstered airfares, allowing carriers to offset higher costs. Airlines have generated 33% more in sales in the first five months of 2023 versus 2022, Airlines Reporting Corporation (ARC) data shows.
There are still no signs of air travel demand waning as ticket purchases for the rest of 2023 are up 4%, said Steve Solomon, ARC's chief commercial officer.
Ticket prices have eased on improved supplies and a decline in oil prices.
Average domestic round-trip airfare in July is $280, down about 11% from last year, according to online travel agency Hopper. For trips to Europe, round-trip fare is $897, down 0.8%.
Hayley Berg, Hopper's lead economist, said airfares are following a seasonal pattern where they tend to peak in June, but prices are not plummeting.
With high interest rates and rising living costs stretching household budgets, airlines face questions about demand.
Carriers typically rely on big-spending corporate customers to fill high-margin seats after the summer travel season, but recovery in corporate travel remains sluggish.
Airlines have said the shift in consumer spending away from goods and into services will continue to fuel demand. And constrained capacity due to shortages of aircraft, spare parts and labor is expected to continue underpinning airlines' pricing power.
Believers in airline stocks have seen signs of hope this year.
In June, the S&P 1500 airlines index .SPCOMAIR posted its strongest monthly gain since 2021, outperforming the S&P 500 .SPX. After hitting a six-month low in March, cheap valuations along with cooling oil prices sparked a rally in airline stocks, as shares of Delta, United and American Airlines AAL.O have risen more than 45% this year, analysts said.
Global Investors' Holmes said airline shares are poised for even more gains. "There's more upside to the downside."
(Reporting by Rajesh Kumar Singh, editing by Ben Klayman and Nick Zieminski)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After hitting a six-month low in March, cheap valuations along with cooling oil prices sparked a rally in airline stocks, as shares of Delta, United and American Airlines AAL.O have risen more than 45% this year, analysts said. By Rajesh Kumar Singh CHICAGO, July 12 (Reuters) - Relentless travel demand has sent bookings at U.S. carriers soaring, translating into bumper earnings. US Global Jets ETF JETS.K, an exchange-traded fund that includes airlines and is seen as a proxy for the industry, is down about 30% from pre-pandemic levels even as passenger traffic has hit record highs.
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After hitting a six-month low in March, cheap valuations along with cooling oil prices sparked a rally in airline stocks, as shares of Delta, United and American Airlines AAL.O have risen more than 45% this year, analysts said. By Rajesh Kumar Singh CHICAGO, July 12 (Reuters) - Relentless travel demand has sent bookings at U.S. carriers soaring, translating into bumper earnings. Even after a rally in airline stocks so far this year, shares of United Airlines UAL.O and Delta Air Lines DAL.N still trade at 5.2 and 7 times forward profit estimates, respectively, well below the S&P 500's 19.1 multiple.
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After hitting a six-month low in March, cheap valuations along with cooling oil prices sparked a rally in airline stocks, as shares of Delta, United and American Airlines AAL.O have risen more than 45% this year, analysts said. Even after a rally in airline stocks so far this year, shares of United Airlines UAL.O and Delta Air Lines DAL.N still trade at 5.2 and 7 times forward profit estimates, respectively, well below the S&P 500's 19.1 multiple. Airlines have generated 33% more in sales in the first five months of 2023 versus 2022, Airlines Reporting Corporation (ARC) data shows.
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After hitting a six-month low in March, cheap valuations along with cooling oil prices sparked a rally in airline stocks, as shares of Delta, United and American Airlines AAL.O have risen more than 45% this year, analysts said. Airlines have generated 33% more in sales in the first five months of 2023 versus 2022, Airlines Reporting Corporation (ARC) data shows. Average domestic round-trip airfare in July is $280, down about 11% from last year, according to online travel agency Hopper.
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2473.0
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2023-07-12 00:00:00 UTC
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PREVIEW-US airline stock valuations stuck on runway despite travel boom
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AAL
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https://www.nasdaq.com/articles/preview-us-airline-stock-valuations-stuck-on-runway-despite-travel-boom-0
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nan
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nan
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By Rajesh Kumar Singh
CHICAGO, July 12 (Reuters) - Relentless travel demand has sent bookings at U.S. carriers soaring, translating into bumper earnings. However, their shares have not shown the same trajectory as questions linger about the sustainability of consumer spending.
Airline shares have suffered because of bearish sentiment about the broader economy as interest rates are up sharply and inflation remains high, analysts said. That's even though consumers have shifted their spending to leisure activities like travel.
US Global Jets ETF JETS.K, an exchange-traded fund that includes airlines and is seen as a proxy for the industry, is down about 30% from pre-pandemic levels even as passenger traffic has hit record highs. In the same timeframe, S&P 500 .SPX has gained about 31%.
Even after a rally in airline stocks so far this year, shares of United Airlines UAL.O and Delta Air Lines DAL.N still trade at 5.2 and 7 times forward profit estimates, respectively. That's well below the S&P 500's 19.1 multiple and below the industry's average of 8.27, according to Refinitiv Eikon figures.
"It is hard for airlines to decouple from the macro trade," Jefferies analyst Sheila Kahyaoglu said.
Airlines will again have an opportunity to sell their story when they report earnings starting this week.
Delta, which reports second-quarter results Thursday, expects profits to nearly double this year, but its shares are still down 21% from 2019 highs. United has forecast a four-fold jump in earnings this year, but its shares are down about 40% from pre-pandemic levels.
The number of doubters is up as short interest in airline shares is at 4.9%, compared with little over 3% before the pandemic, TD Cowen data shows.
"Everyone is so bearish, but airlines themselves are doing exceptionally well," said Frank Holmes, CEO at U.S. Global Investors, which owns airline stocks.
The number of passengers moving through airport checkpoints has been averaging above pre-pandemic levels since mid-May and hit a four-year high last month, U.S. Transportation Security Administration data showed.
Strong demand has bolstered airfares, allowing carriers to offset higher costs. Airlines have generated 33% more in sales in the first five months of 2023 versus 2022, Airlines Reporting Corporation (ARC) data shows.
There are still no signs of air travel demand waning as ticket purchases for the rest of 2023 are up 4%, said Steve Solomon, ARC's chief commercial officer.
Ticket prices have eased on improved supplies and a decline in oil prices. U.S. inflation data released on Wednesday shows airline fares fell by a seasonally adjusted 8.1% in June from a month earlier, the third straight monthly decline. Year-over-year, fares were down 18.9%, the largest annual drop since February 2021.
Average domestic round-trip airfare in July is $280, down about 11% from last year, according to online travel agency Hopper. For trips to Europe, round-trip fare is $897, down 0.8%.
Hayley Berg, Hopper's lead economist, said airfares are following a seasonal pattern where they tend to peak in June, but prices are not plummeting.
With high interest rates and rising living costs stretching household budgets, airlines face questions about demand.
Carriers typically rely on big-spending corporate customers to fill high-margin seats after the summer travel season, but recovery in corporate travel remains sluggish.
Airlines have said the shift in consumer spending away from goods and into services will continue to fuel demand. Constrained capacity due to shortages of aircraft, spare parts and labor is expected to continue underpinning airlines' pricing power.
Believers in airline stocks have seen signs of hope this year.
In June, the S&P 1500 airlines index .SPCOMAIR posted its strongest monthly gain since 2021, outperforming the S&P 500 .SPX. After hitting a six-month low in March, cheap valuations along with cooling oil prices sparked a rally in airline stocks, as shares of Delta, United and American Airlines AAL.O have risen more than 45% this year, analysts said.
Global Investors' Holmes said airline shares are poised for even more gains. "There's more upside to the downside."
(Reporting by Rajesh Kumar Singh, editing by Ben Klayman and Nick Zieminski)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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After hitting a six-month low in March, cheap valuations along with cooling oil prices sparked a rally in airline stocks, as shares of Delta, United and American Airlines AAL.O have risen more than 45% this year, analysts said. By Rajesh Kumar Singh CHICAGO, July 12 (Reuters) - Relentless travel demand has sent bookings at U.S. carriers soaring, translating into bumper earnings. US Global Jets ETF JETS.K, an exchange-traded fund that includes airlines and is seen as a proxy for the industry, is down about 30% from pre-pandemic levels even as passenger traffic has hit record highs.
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After hitting a six-month low in March, cheap valuations along with cooling oil prices sparked a rally in airline stocks, as shares of Delta, United and American Airlines AAL.O have risen more than 45% this year, analysts said. By Rajesh Kumar Singh CHICAGO, July 12 (Reuters) - Relentless travel demand has sent bookings at U.S. carriers soaring, translating into bumper earnings. Even after a rally in airline stocks so far this year, shares of United Airlines UAL.O and Delta Air Lines DAL.N still trade at 5.2 and 7 times forward profit estimates, respectively.
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After hitting a six-month low in March, cheap valuations along with cooling oil prices sparked a rally in airline stocks, as shares of Delta, United and American Airlines AAL.O have risen more than 45% this year, analysts said. Even after a rally in airline stocks so far this year, shares of United Airlines UAL.O and Delta Air Lines DAL.N still trade at 5.2 and 7 times forward profit estimates, respectively. Airlines have generated 33% more in sales in the first five months of 2023 versus 2022, Airlines Reporting Corporation (ARC) data shows.
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After hitting a six-month low in March, cheap valuations along with cooling oil prices sparked a rally in airline stocks, as shares of Delta, United and American Airlines AAL.O have risen more than 45% this year, analysts said. Even after a rally in airline stocks so far this year, shares of United Airlines UAL.O and Delta Air Lines DAL.N still trade at 5.2 and 7 times forward profit estimates, respectively. The number of passengers moving through airport checkpoints has been averaging above pre-pandemic levels since mid-May and hit a four-year high last month, U.S. Transportation Security Administration data showed.
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2474.0
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2023-07-11 00:00:00 UTC
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American Airlines (AAL) Outpaces Stock Market Gains: What You Should Know
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-outpaces-stock-market-gains%3A-what-you-should-know-8
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In the latest trading session, American Airlines (AAL) closed at $18.80, marking a +1.24% move from the previous day. This change outpaced the S&P 500's 0.67% gain on the day. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 9.29%.
Heading into today, shares of the world's largest airline had gained 15.92% over the past month, outpacing the Transportation sector's gain of 6.61% and the S&P 500's gain of 2.65% in that time.
Wall Street will be looking for positivity from American Airlines as it approaches its next earnings report date. This is expected to be July 20, 2023. The company is expected to report EPS of $1.60, up 110.53% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.71 billion, up 2.16% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.10 per share and revenue of $52.97 billion. These totals would mark changes of +520% and +8.17%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for American Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 4.01% higher. American Airlines is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, American Airlines currently has a Forward P/E ratio of 6. Its industry sports an average Forward P/E of 11.97, so we one might conclude that American Airlines is trading at a discount comparatively.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the latest trading session, American Airlines (AAL) closed at $18.80, marking a +1.24% move from the previous day. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.10 per share and revenue of $52.97 billion.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, American Airlines (AAL) closed at $18.80, marking a +1.24% move from the previous day. Heading into today, shares of the world's largest airline had gained 15.92% over the past month, outpacing the Transportation sector's gain of 6.61% and the S&P 500's gain of 2.65% in that time.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, American Airlines (AAL) closed at $18.80, marking a +1.24% move from the previous day. Heading into today, shares of the world's largest airline had gained 15.92% over the past month, outpacing the Transportation sector's gain of 6.61% and the S&P 500's gain of 2.65% in that time.
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In the latest trading session, American Airlines (AAL) closed at $18.80, marking a +1.24% move from the previous day. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines is currently sporting a Zacks Rank of #3 (Hold).
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2475.0
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2023-07-11 00:00:00 UTC
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What's in the Cards for J.B. Hunt (JBHT) in Q2 Earnings?
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AAL
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https://www.nasdaq.com/articles/whats-in-the-cards-for-j.b.-hunt-jbht-in-q2-earnings
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J.B. Hunt Transport Services, Inc. JBHT is scheduled to report second-quarter 2023 results on Jul 18, after market close.
Let’s see how things have shaped up for J.B. Hunt this earnings season.
Q2 Expectations
The Zacks Consensus Estimate for J.B. Hunt’s second-quarter 2023 revenues is pegged at $3.44 billion, indicating a 10.5% decline year over year. The top line is likely to have been weighed down by weakness across the majority of its segments.
The Zacks Consensus Estimate for the second-quarter Intermodal revenues is pegged at $1,695 million, indicating a 7.5% decline from the year-ago reported figure. JBHT’s Intermodal revenues are likely to reflect a year-over-year decrease owing to a decrease in volume.
The consensus mark for Dedicated Contract Services segment revenues is pegged at $909 million, suggesting a 5.3% rise from the second quarter of 2022 reported number. DCS is expected to have benefited from an increase in average revenue producing trucks and productivity (revenue per truck per week).
The Zacks Consensus Estimate for Integrated Capacity Solutions revenues is pegged at $424 million, hinting at a 31.9% decline from the year-ago reported figure. Lower revenues per load in the company’s transactional business might have weighed on the segment.
The Zacks Consensus Estimate for Truckload revenues is pegged at $215 million, indicating a 20.1% decline from the second quarter of 2022 reported number. Truckload revenues are expected to be hurt by a decline in revenue per load.
The Zacks Consensus Estimate for Final Mile Services revenues is pegged at $250 million, indicating a 7% decrease from the second quarter of 2022 reported number. Lower demand across many industry verticals served might have weighed on the segment.
On the flip side, higher net interest expense is likely to mar J.B. Hunt’s bottom line. JBHT continues to incur higher interest expenses due to higher interest rates. Further, the company’s bottom line is likely to have been hurt by an expected increase in operating expenses due to high fuel costs, purchased transportation costs, salaries, wages and benefits expenses.Notably, the Zacks Consensus Estimate for JBHT’s second-quarter 2023 earnings has been revised downward by 14.5% in the past 90 days to $2.01 per share.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for J.B. Hunt this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
J.B. Hunt has an Earnings ESP of -2.49% and a Zacks Rank #3.
J.B. Hunt Transport Services, Inc. Price and EPS Surprise
J.B. Hunt Transport Services, Inc. price-eps-surprise | J.B. Hunt Transport Services, Inc. Quote
Highlights of Q1
J.B. Hunt’s first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year. Total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat their second-quarter 2023 earnings:
Copa Holdings, S.A. (CPA) has an Earnings ESP of +3.85% and a Zacks Rank #1. CPA will release results on Aug 9. You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings has an expected earnings growth rate of more than 100% for second-quarter 2023. CPA delivered a trailing four-quarter earnings surprise of 14.60%, on average.
The Zacks Consensus Estimate for CPA’s second-quarter 2023 earnings has been revised upward by 94% in the past 90 days.
American Airlines (AAL) has an Earnings ESP of +2.54% and a Zacks Rank #3. AAL will release results on Jul 20.
American Airlines has an expected earnings growth rate of more than 100% for second-quarter 2023. AAL delivered a trailing four-quarter earnings surprise of 12.90%, on average.
The Zacks Consensus Estimate for AAL’s second-quarter 2023 earnings has been revised upward by 50.9% in the past 90 days.
Alaska Air (ALK) has an Earnings ESP of +3.65% and a Zacks Rank #3. ALK will release results on Jul 25.
Alaska Air has an expected earnings growth rate of 21% for second-quarter 2023.
The Zacks Consensus Estimate for ALK’s second-quarter 2023 earnings has been revised upward by 36.1% in the past 90 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL) has an Earnings ESP of +2.54% and a Zacks Rank #3. AAL will release results on Jul 20. AAL delivered a trailing four-quarter earnings surprise of 12.90%, on average.
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Click to get this free report J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) has an Earnings ESP of +2.54% and a Zacks Rank #3. AAL will release results on Jul 20.
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Click to get this free report J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) has an Earnings ESP of +2.54% and a Zacks Rank #3. AAL will release results on Jul 20.
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American Airlines (AAL) has an Earnings ESP of +2.54% and a Zacks Rank #3. AAL will release results on Jul 20. AAL delivered a trailing four-quarter earnings surprise of 12.90%, on average.
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2476.0
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2023-07-11 00:00:00 UTC
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5 Broker-Friendly Stocks to Watch Ahead of Q2 Earnings Season
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AAL
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https://www.nasdaq.com/articles/5-broker-friendly-stocks-to-watch-ahead-of-q2-earnings-season
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Agreed that signs of easing inflation have brought some sort of relief for U.S. stock markets, but the fact remains that we are far from being out of the woods. Most market watchers believe that the Fed will resume its rate hikes as expected at its next meeting slated for Jul 25-26. A 25-basis point rate hike is very likely.
That said, the U.S. stock markets had plenty to cheer about in the first half of 2023, with the three major stock indexes — the Dow, the S&P 500, and the Nasdaq Composite — showing gains.
Against this backdrop, the Q2 earnings season is knocking on the doors. Earnings reports from companies from various sectors are likely to flood the markets soon. Investors would like to add stocks with the potential to surpass earnings expectations to their respective portfolios. This is because an earnings beat generally leads to stock price appreciation.
However, the task of designing one’s portfolio with potential outperformers is quite a daunting one. The task becomes even more difficult in this current uncertain scenario. Naturally, individual investors will find it next to impossible to design a winning portfolio of stocks without proper guidance amid this turbulence.
The choice of improper stocks can adversely impact returns, ruining the objective of investing one’s hard-earned money in the highly unpredictable stock market. In a bid to avoid such a scenario, investors usually rely on guidance from proper sources.
In the field of investing, brokers are deemed to be experts with thorough knowledge. We believe that investors should keep an eye on broker-favorite stocks like American Airlines AAL, Boise Cascade BCC, Avnet AVT, Cleveland-Cliffs CLF and Brighthouse Financial BHF for impressive returns.
Why Is Broker Advice Important?
Brokers scrutinize publicly available financial documents and attend company conference calls and other presentations. Since broker recommendation (buy, sell or hold) of a stock comes after thoroughly analyzing the nitty-gritty associated with the company, it is perfect for investors to be guided by their direction of estimate revisions while deciding their course of action on a particular stock.
The estimate revisions serve as an important pointer regarding the price of a stock. In fact, a rating upgrade generally leads to stock price appreciation. Similarly, the price of a stock may plummet following a rating downgrade. Estimates can move north for a number of reasons, including a favorable earnings performance, bullish guidance, product launch or an optimistic macro scenario. To take care of the earnings performance, we designed a screen based on improving analyst recommendations and upward estimate revisions over the last four weeks.
Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it is taken into consideration. The price/sales ratio takes care of the company’s top line, making the strategy foolproof.
Screening Criteria
# (Up- Down Rating)/ Total (4 weeks) =Top #75: This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks.
% change in Q (1) est. (4 weeks) = Top #10: This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter.
To ensure that the strategy is a winning one, covering all bases, we have added the following screening parameters:
Price-to-Sales = Bot%10: The lower the ratio, the better. Companies meeting this criterion are in bottom 10% of our universe of over 7,700 stocks with respect to this ratio.
Price greater than 5: A stock trading below $5 will not likely create significant interest for most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days: Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000: This gives us stocks that are the top 3000 if one judges by market capitalization.
Com/ADR/Canadian= Com: This takes out the ADR and Canadian stocks.
Here are five of the 10 stocks that made it through the screen:
American Airlines: It is based in Fort Worth, TX. The gradual increase in air travel demand (particularly for leisure) is aiding AAL. However, high operating costs are hurting the bottom line.
Over the past 60 days, the Zacks Consensus Estimate for 2023 earnings has been revised 13% upward. AAL currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boise Cascade Company: Based in Boise, ID, this company makes wood products and distributes building materials in the United States as well as Canada. Although BCC acknowledges that the industry will face challenges during 2023, given the current economic uncertainties and weaker near-term demand for new residential construction, it remains well-positioned to execute the growth initiatives started in 2022.
Boise Cascade, currently carrying a Zacks Rank #2 (Buy), has also been increasing commodity offerings that will instill growth in the existing and underserved markets, and across its entire national footprint. The Zacks Consensus Estimate for current-year earnings has increased 5.4% over the past 60 days.
Avnet is benefiting from robust demand for its products across Asia, Europe, the Middle East and Africa regions. Improvement in the Americas also served as a tailwind. Its continued focus on boosting IoT capabilities is helping it expand in the newer markets and win customers. Moreover, cost-saving efforts are aiding profitability.
Avnet, currently carrying a Zacks Rank of 3, has an impressive surprise history, with its earnings surpassing the Zacks Consensus Estimate in each of the last four quarters, the average being 7.99%.
Cleveland-Cliffs is a leading iron ore producer in the United States. It supplies differentiated iron ore pellets under long-term contracts to major blast furnace steel producers in North America. The Mining and Pelletizing operation gains from low-cost, high-quality iron ore pellet production with substantial logistics and transportation advantages to serve the Great Lakes steel market. The company should gain from its merger with AK Steel Holding Corporation.
Over the past 60 days, the Zacks Consensus Estimate for CLF’s current-quarter earnings has been revised 4.3% upward. Cleveland-Cliffs currently carries a Zacks Rank #3.
Brighthouse Financial is one of the largest providers of annuity and life insurance products in the United States. A compelling suite of life and annuity products, strong market presence, exit from the transition service agreement and growing individual insurance and investment income should drive growth for this Zacks Rank #3 insurer.
The Zacks Consensus Estimate for current-year earnings has increased 28% from the year-ago actual earnings figure. The company has surpassed the Zacks Consensus Estimate for earnings in two of the past four quarters (missing the mark in the other two).
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Avnet, Inc. (AVT) : Free Stock Analysis Report
Cleveland-Cliffs Inc. (CLF) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
Brighthouse Financial, Inc. (BHF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We believe that investors should keep an eye on broker-favorite stocks like American Airlines AAL, Boise Cascade BCC, Avnet AVT, Cleveland-Cliffs CLF and Brighthouse Financial BHF for impressive returns. The gradual increase in air travel demand (particularly for leisure) is aiding AAL. AAL currently carries a Zacks Rank #3 (Hold).
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We believe that investors should keep an eye on broker-favorite stocks like American Airlines AAL, Boise Cascade BCC, Avnet AVT, Cleveland-Cliffs CLF and Brighthouse Financial BHF for impressive returns. Click to get this free report Avnet, Inc. (AVT) : Free Stock Analysis Report Cleveland-Cliffs Inc. (CLF) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Boise Cascade, L.L.C. The gradual increase in air travel demand (particularly for leisure) is aiding AAL.
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Click to get this free report Avnet, Inc. (AVT) : Free Stock Analysis Report Cleveland-Cliffs Inc. (CLF) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Boise Cascade, L.L.C. We believe that investors should keep an eye on broker-favorite stocks like American Airlines AAL, Boise Cascade BCC, Avnet AVT, Cleveland-Cliffs CLF and Brighthouse Financial BHF for impressive returns. The gradual increase in air travel demand (particularly for leisure) is aiding AAL.
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We believe that investors should keep an eye on broker-favorite stocks like American Airlines AAL, Boise Cascade BCC, Avnet AVT, Cleveland-Cliffs CLF and Brighthouse Financial BHF for impressive returns. The gradual increase in air travel demand (particularly for leisure) is aiding AAL. AAL currently carries a Zacks Rank #3 (Hold).
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2477.0
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2023-07-10 00:00:00 UTC
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Validea Detailed Fundamental Analysis - AAL
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AAL
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https://www.nasdaq.com/articles/validea-detailed-fundamental-analysis-aal
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. This strategy looks for companies returning cash to shareholders via dividends, buybacks and debt paydown.
AMERICAN AIRLINES GROUP INC (AAL) is a large-cap value stock in the Airline industry. The rating using this strategy is 70% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
UNIVERSE: PASS
NET PAYOUT YIELD: FAIL
QUALITY AND DEBT: PASS
VALUATION: PASS
RELATIVE STRENGTH: PASS
SHAREHOLDER YIELD: FAIL
Detailed Analysis of AMERICAN AIRLINES GROUP INC
AAL Guru Analysis
AAL Fundamental Analysis
More Information on Meb Faber
Meb Faber Portfolio
About Meb Faber: Meb Faber is the founder of Cambria Investments. His research has covered a wide spectrum of the investment world, including topics like shareholder yield, trend following, global asset allocation and home country bias. His shareholder yield strategy, which is based on his book "Shareholder Yield" and forms the basis for an ETF of the same name, looks for companies that are focused on creating value for shareholders by returning cash to them in the form of dividends, share buybacks and debt paydown. Meb is also the author of 4 other books and numerous white papers on investing related topics.
Additional Research Links
Top Large-Cap Growth Stocks
Factor-Based Stock Portfolios
Dividend Aristocrats 2023
High Insider Ownership Stocks
Top S&P 500 Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. AMERICAN AIRLINES GROUP INC (AAL) is a large-cap value stock in the Airline industry.
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Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Meb Faber Meb Faber Portfolio About Meb Faber: Meb Faber is the founder of Cambria Investments. Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL).
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Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Meb Faber Meb Faber Portfolio About Meb Faber: Meb Faber is the founder of Cambria Investments. Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber.
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Meb Faber Meb Faber Portfolio About Meb Faber: Meb Faber is the founder of Cambria Investments. Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber.
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2478.0
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2023-07-07 00:00:00 UTC
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Company News for Jul 7, 2023
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AAL
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https://www.nasdaq.com/articles/company-news-for-jul-7-2023
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JetBlue Airways Corp.’s JBLU shares plunged 7.2% after the company plans to end its agreement with American Airlines Group Inc. AAL in the northeastern United States.
Ford Motor Co.’s F shares tumbled 2.4% after the company reported that its second-quarter 2023 electric vehicle sales dropped 2.8% to 14,843 units.
Shares of Moderna Inc. MRNA plummeted 4.3% on concerns about its mRNA drug development program in China following that country’s growing tension with United States.
Shares of Genius Sports Ltd. GENI soared 25.7% after the company extended its strategic partnership with the National Football League till the end of the 2027-28 session.
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Ford Motor Company (F) : Free Stock Analysis Report
JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
Moderna, Inc. (MRNA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Genius Sports Limited (GENI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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JetBlue Airways Corp.’s JBLU shares plunged 7.2% after the company plans to end its agreement with American Airlines Group Inc. AAL in the northeastern United States. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report Moderna, Inc. (MRNA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Genius Sports Limited (GENI) : Free Stock Analysis Report To read this article on Zacks.com click here. Ford Motor Co.’s F shares tumbled 2.4% after the company reported that its second-quarter 2023 electric vehicle sales dropped 2.8% to 14,843 units.
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JetBlue Airways Corp.’s JBLU shares plunged 7.2% after the company plans to end its agreement with American Airlines Group Inc. AAL in the northeastern United States. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report Moderna, Inc. (MRNA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Genius Sports Limited (GENI) : Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Genius Sports Ltd. GENI soared 25.7% after the company extended its strategic partnership with the National Football League till the end of the 2027-28 session.
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JetBlue Airways Corp.’s JBLU shares plunged 7.2% after the company plans to end its agreement with American Airlines Group Inc. AAL in the northeastern United States. Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report Moderna, Inc. (MRNA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Genius Sports Limited (GENI) : Free Stock Analysis Report To read this article on Zacks.com click here. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Click to get this free report Ford Motor Company (F) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report Moderna, Inc. (MRNA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Genius Sports Limited (GENI) : Free Stock Analysis Report To read this article on Zacks.com click here. JetBlue Airways Corp.’s JBLU shares plunged 7.2% after the company plans to end its agreement with American Airlines Group Inc. AAL in the northeastern United States. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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2479.0
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2023-07-07 00:00:00 UTC
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2 Airlines Whose PE Ratios Scream Good Value
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AAL
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https://www.nasdaq.com/articles/2-airlines-whose-pe-ratios-scream-good-value
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nan
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nan
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We wrote about Amazon Inc (NASDAQ: AMZN) yesterday and how its elevated price-to-earnings (PE) ratio is likely giving investors cause for concern, notwithstanding its recent rally. While it may be one of the better know stocks out there with a frothy PE number, there are plenty of well-known stocks at the other end of the range.
Remember, a low PE ratio suggests a stock is cheap in a good way. It can often signal an enticing opportunity, as it conveys to investors that the stock is priced modestly in relation to its earnings and is possible while at the same time offering a metric to help screen out stocks with inflated valuations driven by market hype.
When screening for stocks that fall into this category, two names from the same industry jumped out at us straightaway, American Airlines Group Inc (NASDAQ: AAL) and United Airlines Holding Inc (NASDAQ: UAL). Let’s jump into each of them and analyze the case for getting involved.
American Airlines
With a PE ratio of 7, America is trading at historically cheap levels right now, even after the rally its shares have posted. Since the start of the year, they’ve tacked on more than 45% and are back trading at 52-week highs. But even with this recent run, you’d be hard-pressed to call them overbought or overvalued. The stock spent much of the years before the pandemic with a PE ratio that ranged between 8-30, which is what we must compare the current print against, given America posted pandemic fuelled losses up to the end of last year. So on the face of it, American shares look quite attractive here.
The airline industry as a whole has been benefiting from record traffic numbers, which have sent trailing twelve-month revenue numbers up above even their pre-pandemic record highs. And with America also having returned to full profitability, investors haven’t been slow about getting involved. But for those of us on the sidelines also looking to gain some airline exposure, America’s PE ratio of 7 should give firm peace of mind that we haven’t missed the boat.
Technically, the stock is also attractive, with a run of higher highs and higher lows underpinning the multi-month rally. There’s an argument to be made that shares are approaching some key resistance around the $20 mark, in addition to the stock’s RSI print of 84 which suggests shares might be overbought in the near term. But given the longer-term fundamental picture feels so undervalued, any pullback from here is just opening up an even wider opportunity.
United Airlines
United shares have managed to outperform American since the start of the year, posting an impressive 47% return. And this is reflected in their PE ratio of 10, which has already moved up from the 7.5 it was after March’s earnings report. But all in all, it’s still impressively lower than the 17 it started the year with, coming after United also posted its first quarterly profit since March 2020.
And just like America, United is well positioned to capitalize on the industry’s better-than-expected passenger numbers. Sure, there have been some negative headlines due to delays and cancellations recently, but the July 4th weekend still saw airport traffic numbers smashed nationwide. Just like American, United Airlines is poised to continue to do well in this environment, and its PE ratio tells us it’s not too late to get involved.
United’s shares are also in a strong technical pattern and at their highest level in two years. If they can continue to push up toward the $60 mark, it’s easy to see them breaking out beyond that. Their RSI is also elevated, so some near-term cooling wouldn’t be out of the question, but any weakness from here only improves their PE ratio and strengthens the argument that they’re good value.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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When screening for stocks that fall into this category, two names from the same industry jumped out at us straightaway, American Airlines Group Inc (NASDAQ: AAL) and United Airlines Holding Inc (NASDAQ: UAL). We wrote about Amazon Inc (NASDAQ: AMZN) yesterday and how its elevated price-to-earnings (PE) ratio is likely giving investors cause for concern, notwithstanding its recent rally. But for those of us on the sidelines also looking to gain some airline exposure, America’s PE ratio of 7 should give firm peace of mind that we haven’t missed the boat.
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When screening for stocks that fall into this category, two names from the same industry jumped out at us straightaway, American Airlines Group Inc (NASDAQ: AAL) and United Airlines Holding Inc (NASDAQ: UAL). Remember, a low PE ratio suggests a stock is cheap in a good way. American Airlines With a PE ratio of 7, America is trading at historically cheap levels right now, even after the rally its shares have posted.
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When screening for stocks that fall into this category, two names from the same industry jumped out at us straightaway, American Airlines Group Inc (NASDAQ: AAL) and United Airlines Holding Inc (NASDAQ: UAL). American Airlines With a PE ratio of 7, America is trading at historically cheap levels right now, even after the rally its shares have posted. The stock spent much of the years before the pandemic with a PE ratio that ranged between 8-30, which is what we must compare the current print against, given America posted pandemic fuelled losses up to the end of last year.
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When screening for stocks that fall into this category, two names from the same industry jumped out at us straightaway, American Airlines Group Inc (NASDAQ: AAL) and United Airlines Holding Inc (NASDAQ: UAL). American Airlines With a PE ratio of 7, America is trading at historically cheap levels right now, even after the rally its shares have posted. United Airlines United shares have managed to outperform American since the start of the year, posting an impressive 47% return.
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2480.0
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2023-07-07 00:00:00 UTC
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JetBlue Ends Alliance With American, Chance Of Spirit Merger?
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AAL
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https://www.nasdaq.com/articles/jetblue-ends-alliance-with-american-chance-of-spirit-merger
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nan
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JetBlue Airlines (NASDAQ: JBLU) stock is declining by as much as 6.5% during Thursday's trading session, even after initially positive news regarding a tough but strategic decision by management. Executives have decided to break away from the airline's alliance with American Airlines (NASDAQ: AAL).
After an eight-year-long winter in the stock, JetBlue has decided that it is time to finish the objective it had set to achieve a year ago. Ending a passenger-sharing agreement with American Airlines may keep FTC (Federal Trade Commission) and Justice Department blockades from prohibiting the acquisition once more; now, JetBlue is voluntarily becoming a minor representative of the U.S. airline industry.
Considering that American Airlines' stock only declined by approximately 2.5% during the same session, it can be taken as an initial reaction by the broader market, implying JetBlue has more to lose in this deal than American after ending the alliance. Increasing the odds of a successful acquisition would make JetBlue the fifth-largest airline operator in the nation, providing it with more aircraft and routes, which is especially important when aircraft manufacturers like Boeing (NYSE: BA) are struggling to keep up with demand.
The stock's decline on Thursday, taken individually from the news, could be a smoke screen after investors dig into the roots of perception.
Market Preference
Now that Southwest Airlines (NYSE: LUV) has made it into The Goldman Sachs Group (NYSE: GS) 'Conviction' list, markets are also sending in their votes regarding what money 'likes' in the airline sector. By placing Southwest at one of the highest P/E ratios, markets are telling investors that they are willing to pay a higher premium for each dollar of the underlying business's current - and future - earnings, a preference not to be taken lightly.
Now that investors understand the market's preference for smaller airlines over the large ones like American Airlines or even Delta Airlines (NYSE: DAL), a 'rally by association' trend can begin to develop for JetBlue.
When investors break down the price action in JetBlue's chart, it can become evident that ending this alliance and striving for the long-awaited merger are two catalysts that would help the stock find a bottom. Historically speaking, JetBlue's price-to-book valuation multiples, which can act as a reliable proxy for valuation apart from the mere stock price, are beginning to lay the rest of the foundation needed for a price recovery.
Sporting a current 0.8x P/B multiple, JetBlue is assumed to be trading at a 20% discount to its book value. It is also significantly lower than its normalized ranges of 1.5x to 2.5x. JetBlue analyst ratings may begin to seem a little conservative to those investors who understand the ramifications of a discount to book value, as the top-side price target only offers a 14.5% potential ceiling.
Structured Future
JetBlue's high price of $27.2 per share in 2015 marked the last high for the stock, followed by a multi-year decline to today's less than $10.0 per share. The last time the stock peaked was in 2021 for a price of $21.7 per share; all of this, put into perspective, can point investors to two significant price levels that analysts may be too cautious to recognize and risk their accuracy reputations.
Taking Wall Street's 'Bear Market' definition, which suggests a 20% retracement from all-time - or recent - high prices, JetBlue's $17.4 level can act as a relative resistance level for traders to attempt to test once more before finding direction.
The catalyst needed may lie within the Spirit merger, considering Spirit Airlines (NYSE: SAVE) carries an enterprise value of 6.8 billion; JetBlue will need to dig deep into its pockets to make the transaction happen. Looking into JetBlue's financials, it would seem impossible for the company to realize an all-cash transaction, so financing will be necessary for this merger to be realized.
Luckily for JetBlue investors, the deal was reached before the airline's sector recovered in the past twelve months, where the agreed value to be paid was a significantly lower $3.8 billion. JetBlue agreed to pay $33.5 per share, which would be an 88.5% premium to today's prices. This assumes that Spirit's $6.2 billion in debt would be assumed or refinanced by the new combined entity.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Executives have decided to break away from the airline's alliance with American Airlines (NASDAQ: AAL). JetBlue Airlines (NASDAQ: JBLU) stock is declining by as much as 6.5% during Thursday's trading session, even after initially positive news regarding a tough but strategic decision by management. By placing Southwest at one of the highest P/E ratios, markets are telling investors that they are willing to pay a higher premium for each dollar of the underlying business's current - and future - earnings, a preference not to be taken lightly.
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Executives have decided to break away from the airline's alliance with American Airlines (NASDAQ: AAL). Taking Wall Street's 'Bear Market' definition, which suggests a 20% retracement from all-time - or recent - high prices, JetBlue's $17.4 level can act as a relative resistance level for traders to attempt to test once more before finding direction. The catalyst needed may lie within the Spirit merger, considering Spirit Airlines (NYSE: SAVE) carries an enterprise value of 6.8 billion; JetBlue will need to dig deep into its pockets to make the transaction happen.
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Executives have decided to break away from the airline's alliance with American Airlines (NASDAQ: AAL). Ending a passenger-sharing agreement with American Airlines may keep FTC (Federal Trade Commission) and Justice Department blockades from prohibiting the acquisition once more; now, JetBlue is voluntarily becoming a minor representative of the U.S. airline industry. Considering that American Airlines' stock only declined by approximately 2.5% during the same session, it can be taken as an initial reaction by the broader market, implying JetBlue has more to lose in this deal than American after ending the alliance.
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Executives have decided to break away from the airline's alliance with American Airlines (NASDAQ: AAL). Considering that American Airlines' stock only declined by approximately 2.5% during the same session, it can be taken as an initial reaction by the broader market, implying JetBlue has more to lose in this deal than American after ending the alliance. The catalyst needed may lie within the Spirit merger, considering Spirit Airlines (NYSE: SAVE) carries an enterprise value of 6.8 billion; JetBlue will need to dig deep into its pockets to make the transaction happen.
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2481.0
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2023-07-06 00:00:00 UTC
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Airline Stock Roundup: JBLU's Expansion Update, DAL's Deal, RYAAY's Traffic & More
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-jblus-expansion-update-dals-deal-ryaays-traffic-more
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nan
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nan
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In the past week, JetBlue Airways JBLU management announced that it has commenced operating non-stop daily flights to Paris from New York's John F. Kennedy International or JFK Airport.
Delta Air Lines DAL was also in the news, courtesy of its deal with El Al Israel Airlines in an attempt to boost connectivity between the United States and Israel. European carrier, Ryanair Holdings RYAAY grabbed headlines by virtue of its stellar traffic numbers for the month of June despite multiple flight cancellations.
Recap of the Past Week’s Most Important Stories
1. DAL’s agreement with El Al Israel Airlines involves reciprocal codeshare and frequent flyer benefits, allowing passengers to earn and redeem miles on both carriers. Initially, customers will be able to check in for their entire journey and have their boarding passes issued and bags checked through to their destination. We believe that the decision to ink a deal with El Al is a prudent move by Delta’s management. By expanding its network and improving connectivity, this Atlanta-based carrier can attract more customers and generate additional revenues. The ability to earn and redeem miles on both carriers will also appeal to frequent flyers, potentially increasing customer loyalty. Delta currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Delta was also in the news recently courtesy of its bullish guidance for the second quarter of 2023, owing to the highly impressive air travel demand scenario. That news was covered in detail in the previous week's writeup.
2. The launch of flights to Paris marks JetBlue's expansion into continental Europe, filling a gap in its network and meeting the demands of its customer base. With daily flights connecting New York to Paris, the success of its London service and upcoming routes to Amsterdam, JetBlue is disrupting the dominance of high-fare legacy carriers in the transatlantic market. The airline’s decision to expand its presence in the transatlantic market is a prudent one given the upbeat air travel demand scenario. The routes should generate significant traffic, in turn boosting JetBlue’s top line.
3. Despite having to cancel over 900 flights in June due to air traffic control strikes, Ryanair carried the maximum passengers ever in a month. The low-cost carrier transported 17.4 million passengers, compared with 15.9 million in June 2022. Load factor (% of seats filled with passengers) was an impressive 95% for the month.
4. According to a Reuters report, JetBlue Airways’ management has decided not to appeal against the federal judge’s ruling in May to terminate the alliance with American Airlines AAL in the Northeast as it was anti-competitive. JetBlue’s management, however, strongly disagrees with the court ruling. Despite that, JBLU will not appeal against the decision to save its impending $3.8 billion buyout of Spirit Airlines SAVE.
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The table above shows that all airline stocks traded in the green over the past week, resulting in the NYSE ARCA Airline Index gaining 2.1% to $79.14. Over the course of the past six months, the NYSE ARCA Airline Index has appreciated 41.3%.
What’s Next in the Airline Space?
Delta is scheduled to kickstart the second-quarter earnings season for airlines on Jul 13. Investors will keenly await DAL’s performance amid this bullish air-travel demand scenario.
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Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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According to a Reuters report, JetBlue Airways’ management has decided not to appeal against the federal judge’s ruling in May to terminate the alliance with American Airlines AAL in the Northeast as it was anti-competitive. Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report To read this article on Zacks.com click here. In the past week, JetBlue Airways JBLU management announced that it has commenced operating non-stop daily flights to Paris from New York's John F. Kennedy International or JFK Airport.
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Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report To read this article on Zacks.com click here. According to a Reuters report, JetBlue Airways’ management has decided not to appeal against the federal judge’s ruling in May to terminate the alliance with American Airlines AAL in the Northeast as it was anti-competitive. In the past week, JetBlue Airways JBLU management announced that it has commenced operating non-stop daily flights to Paris from New York's John F. Kennedy International or JFK Airport.
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Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report To read this article on Zacks.com click here. According to a Reuters report, JetBlue Airways’ management has decided not to appeal against the federal judge’s ruling in May to terminate the alliance with American Airlines AAL in the Northeast as it was anti-competitive. Delta Air Lines DAL was also in the news, courtesy of its deal with El Al Israel Airlines in an attempt to boost connectivity between the United States and Israel.
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According to a Reuters report, JetBlue Airways’ management has decided not to appeal against the federal judge’s ruling in May to terminate the alliance with American Airlines AAL in the Northeast as it was anti-competitive. Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report To read this article on Zacks.com click here. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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2482.0
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2023-07-06 00:00:00 UTC
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Morgan Stanley Reiterates American Airlines Group (AAL) Equal-Weight Recommendation
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AAL
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https://www.nasdaq.com/articles/morgan-stanley-reiterates-american-airlines-group-aal-equal-weight-recommendation
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nan
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nan
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Fintel reports that on July 6, 2023, Morgan Stanley reiterated coverage of American Airlines Group (NASDAQ:AAL) with a Equal-Weight recommendation.
Analyst Price Forecast Suggests 2.91% Downside
As of July 6, 2023, the average one-year price target for American Airlines Group is 17.79. The forecasts range from a low of 11.11 to a high of $27.30. The average price target represents a decrease of 2.91% from its latest reported closing price of 18.32.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Airlines Group is 51,177MM, a decrease of 2.07%. The projected annual non-GAAP EPS is 1.52.
What is the Fund Sentiment?
There are 1042 funds or institutions reporting positions in American Airlines Group. This is an increase of 30 owner(s) or 2.96% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 11.39%. Total shares owned by institutions increased in the last three months by 3.93% to 412,785K shares.
The put/call ratio of AAL is 3.05, indicating a bearish outlook.
What are Other Shareholders Doing?
Primecap Management holds 37,738K shares representing 5.78% ownership of the company. In it's prior filing, the firm reported owning 38,099K shares, representing a decrease of 0.95%. The firm increased its portfolio allocation in AAL by 9.40% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 20,146K shares representing 3.09% ownership of the company. In it's prior filing, the firm reported owning 19,733K shares, representing an increase of 2.05%. The firm increased its portfolio allocation in AAL by 9.31% over the last quarter.
VPMCX - Vanguard PRIMECAP Fund Investor Shares holds 19,321K shares representing 2.96% ownership of the company. In it's prior filing, the firm reported owning 19,365K shares, representing a decrease of 0.23%. The firm increased its portfolio allocation in AAL by 9.19% over the last quarter.
Renaissance Technologies holds 15,723K shares representing 2.41% ownership of the company. In it's prior filing, the firm reported owning 9,251K shares, representing an increase of 41.16%. The firm increased its portfolio allocation in AAL by 91.15% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 15,180K shares representing 2.33% ownership of the company. In it's prior filing, the firm reported owning 15,024K shares, representing an increase of 1.03%. The firm increased its portfolio allocation in AAL by 8.66% over the last quarter.
American Airlines Group Background Information
(This description is provided by the company.)
American Airlines Group Inc. is the parent company of American Airlines. Together with regional partner American Eagle, American Airlines offers an average of nearly 6,700 flights daily to 350 destinations in 50 countries. American Airlines is a founding member of the oneworld® alliance, whose members and members-elect offer nearly 14,250 flights daily to 1,000 destinations in 150 countries.
Additional reading:
AMERICAN AIRLINES GROUP INC. 2023 INCENTIVE AWARD PLAN ARTICLE I.
AMERICAN AIRLINES REPORTS FIRST-QUARTER 2023 FINANCIAL RESULTS
Investor Relations Update April 27, 2023
Certain of the statements contained in this presentation should be considered forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigat
Letter Agreement, dated as of January 19, 2023, to Purchase Agreement No. 3219 dated as of October 15, 2008, by and between American Airlines, Inc. and The Boeing Company.*
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fintel reports that on July 6, 2023, Morgan Stanley reiterated coverage of American Airlines Group (NASDAQ:AAL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 11.39%. The put/call ratio of AAL is 3.05, indicating a bearish outlook.
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Fintel reports that on July 6, 2023, Morgan Stanley reiterated coverage of American Airlines Group (NASDAQ:AAL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 11.39%. The put/call ratio of AAL is 3.05, indicating a bearish outlook.
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Fintel reports that on July 6, 2023, Morgan Stanley reiterated coverage of American Airlines Group (NASDAQ:AAL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 11.39%. The put/call ratio of AAL is 3.05, indicating a bearish outlook.
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Fintel reports that on July 6, 2023, Morgan Stanley reiterated coverage of American Airlines Group (NASDAQ:AAL) with a Equal-Weight recommendation. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 11.39%. The put/call ratio of AAL is 3.05, indicating a bearish outlook.
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2483.0
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2023-07-06 00:00:00 UTC
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US STOCKS-Wall St ends lower as labor market strength stokes rate-hike fears
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-st-ends-lower-as-labor-market-strength-stokes-rate-hike-fears
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nan
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nan
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By Lewis Krauskopf, Bansari Mayur Kamdar and Johann M Cherian
July 6 (Reuters) - Wall Street's main indexes ended lower on Thursday in a broad selloff after data showing a strong labor market boosted bond yields and fanned fears the Federal Reserve will be aggressive in raising U.S. interest rates.
Private payrolls surged far more than expected in June, data showed, suggesting the labor market remained on solid ground despite growing risks of a recession. A separate report showed U.S. job openings dropped in May, but remained at higher levels.
A day before the monthly U.S employment report, evidence of a solid labor market spurred expectations the Fed will keep interest rates higher for longer to tame inflation that remains above its target.
“We don’t see any softening in the labor market,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. “The Fed doesn’t have to worry about the jobs market. When you look at their mandate, they have no reason not to keep hiking and to keep hiking for a while.”
According to preliminary data, the S&P 500 .SPX lost 35.41 points, or 0.80%, to end at 4,411.41 points, while the Nasdaq Composite .IXIC lost 113.64 points, or 0.82%, to 13,678.01. The Dow Jones Industrial Average .DJI fell 370.90 points, or 1.08%, to 33,917.74.
Energy .SPNY and consumer discretionary .SPLRCD were among the biggest declining S&P 500 sectors.
Treasury yields jumped following the labor market data. The benchmark 10-year yield US10YT=RR burst above 4% while the two-year US2YT=RR Treasury yield, which typically moves in step with interest rate expectations, hit a 16-year high.
U.S. interest rate futures saw an increased probability of another rate hike by the Federal Reserve in November, according to CME's FedWatch.
The Fed did not hike rates at its June meeting but is widely expected to resume increases at its meeting later this month. Dallas Fed President Lorie Logan said there was a case for a rate rise at the June policy meeting.
In company news, Exxon Mobil Corp XOM.N shares fell after the oil major signaled second-quarter operating profits fell sharply on lower natural gas prices and weaker oil refining margins.
Second-quarter corporate reports will arrive in the coming weeks with S&P 500 earnings expected to fall 5.7% from the year-ago period, according to Refinitiv data.
“You have a situation where rates are going higher, profits are not really moving," said King Lip, chief strategist at Baker Avenue Wealth Management. "That’s usually not a good combination for stocks.”
JetBlue AirwaysJBLU.O shares dropped a day after the company said it would follow a U.S. judge's May order to end its alliance with American Airlines AAL.O to protect a planned purchase of Spirit Airlines.
(Reporting by Lewis Krauskopf in New York, Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Editing by Vinay Dwivedi, Shinjini Ganguli and David Gregorio)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"That’s usually not a good combination for stocks.” JetBlue AirwaysJBLU.O shares dropped a day after the company said it would follow a U.S. judge's May order to end its alliance with American Airlines AAL.O to protect a planned purchase of Spirit Airlines. By Lewis Krauskopf, Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street's main indexes ended lower on Thursday in a broad selloff after data showing a strong labor market boosted bond yields and fanned fears the Federal Reserve will be aggressive in raising U.S. interest rates. Private payrolls surged far more than expected in June, data showed, suggesting the labor market remained on solid ground despite growing risks of a recession.
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"That’s usually not a good combination for stocks.” JetBlue AirwaysJBLU.O shares dropped a day after the company said it would follow a U.S. judge's May order to end its alliance with American Airlines AAL.O to protect a planned purchase of Spirit Airlines. By Lewis Krauskopf, Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street's main indexes ended lower on Thursday in a broad selloff after data showing a strong labor market boosted bond yields and fanned fears the Federal Reserve will be aggressive in raising U.S. interest rates. Private payrolls surged far more than expected in June, data showed, suggesting the labor market remained on solid ground despite growing risks of a recession.
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"That’s usually not a good combination for stocks.” JetBlue AirwaysJBLU.O shares dropped a day after the company said it would follow a U.S. judge's May order to end its alliance with American Airlines AAL.O to protect a planned purchase of Spirit Airlines. By Lewis Krauskopf, Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street's main indexes ended lower on Thursday in a broad selloff after data showing a strong labor market boosted bond yields and fanned fears the Federal Reserve will be aggressive in raising U.S. interest rates. A day before the monthly U.S employment report, evidence of a solid labor market spurred expectations the Fed will keep interest rates higher for longer to tame inflation that remains above its target.
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"That’s usually not a good combination for stocks.” JetBlue AirwaysJBLU.O shares dropped a day after the company said it would follow a U.S. judge's May order to end its alliance with American Airlines AAL.O to protect a planned purchase of Spirit Airlines. By Lewis Krauskopf, Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street's main indexes ended lower on Thursday in a broad selloff after data showing a strong labor market boosted bond yields and fanned fears the Federal Reserve will be aggressive in raising U.S. interest rates. The Dow Jones Industrial Average .DJI fell 370.90 points, or 1.08%, to 33,917.74.
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2484.0
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2023-07-06 00:00:00 UTC
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ANALYSIS-Will abandoning American help JetBlue's Spirit merger? Not by much
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AAL
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https://www.nasdaq.com/articles/analysis-will-abandoning-american-help-jetblues-spirit-merger-not-by-much
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nan
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nan
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By Rajesh Kumar Singh and Diane Bartz
CHICAGO/WASHINGTON, July 6 (Reuters) - JetBlue Airways' JBLU.Odecision to abandon its alliance with American Airlines AAL.O has improved its chances in the trial over a $3.8 billion deal to buy Spirit Airlines SAVE.N, but may not be enough to hand it a victory, antitrust experts said.
In its lawsuit filed in March aimed at stopping JetBlue's purchase of Spirit, the U.S. Justice Department (DOJ) cited as evidence JetBlue's alliance with American at airports in New York and Boston several times.
Calling the partnership a "de facto merger," the DOJ argued that JetBlue's proposed purchase of Spirit, a Florida-based ultra-low cost carrier, would lead to further industry concentration.
On Wednesday, JetBlue CEO Robin Hayes said ending the partnership with American has taken the DOJ's "misplaced" concerns off the table and would help when the Spirit case goes to trial in October.
Eleanor Fox, an antitrust professor at New York University School of Law, said JetBlue would have found it even harder to win the Spirit trial by being in alliance with American because it had made the carrier a bigger player in certain markets.
"It improves the chances that JetBlue-Spirit will win the trial," Fox said.
Former Federal Trade Commission Chairman William Kovacic, who now teaches at George Washington University law school, said the airline had to choose between the alliance and the Spirit merger as both could not survive regulatory scrutiny.
The alliance had allowed JetBlue access to American's airport slots and customers, letting it add new routes and operate more flights out of airports in New York and Boston.
New York-based JetBlue, however, views the Spirit deal as a way to expand its domestic footprint amid persistent labor and aircraft shortages. It tried to buy Virgin America in 2016, but lost out to Alaska Air Group ALK.N.
To address antitrust concerns, JetBlue last month agreed to divest all holdings of Spirit at New York's LaGuardia Airport to Frontier Group Holdings ULCC.O if it succeeds in closing the deal.
James Speta, a Northwestern University law professor, is unsure the dissolution of the Northeast Alliance and the planned divestiture will be enough for JetBlue to prevail in the DOJ lawsuit.
A JetBlue-Spirit combination will "significantly" change the U.S. landscape of low-cost airlines and lead to further consolidation, he said.
American, Delta DAL.N, United UAL.O and Southwest Airlines LUV.N control nearly 80% of the U.S. airline industry.
In its lawsuit, the DOJ said Spirit's acquisition would leave tens of millions of travelers to face higher fares and fewer options.
"There's still an argument to be made against the merger," Speta said.
(Reporting by Rajesh Kumar Singh in Chicago and Diane Bartz in Washington; Additional reporting by David Shepardson; Editing by Richard Chang)
((rajeshkumar.singh@thomsonreuters.com; +1-312-408-8537; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Rajesh Kumar Singh and Diane Bartz CHICAGO/WASHINGTON, July 6 (Reuters) - JetBlue Airways' JBLU.Odecision to abandon its alliance with American Airlines AAL.O has improved its chances in the trial over a $3.8 billion deal to buy Spirit Airlines SAVE.N, but may not be enough to hand it a victory, antitrust experts said. Calling the partnership a "de facto merger," the DOJ argued that JetBlue's proposed purchase of Spirit, a Florida-based ultra-low cost carrier, would lead to further industry concentration. Eleanor Fox, an antitrust professor at New York University School of Law, said JetBlue would have found it even harder to win the Spirit trial by being in alliance with American because it had made the carrier a bigger player in certain markets.
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By Rajesh Kumar Singh and Diane Bartz CHICAGO/WASHINGTON, July 6 (Reuters) - JetBlue Airways' JBLU.Odecision to abandon its alliance with American Airlines AAL.O has improved its chances in the trial over a $3.8 billion deal to buy Spirit Airlines SAVE.N, but may not be enough to hand it a victory, antitrust experts said. Eleanor Fox, an antitrust professor at New York University School of Law, said JetBlue would have found it even harder to win the Spirit trial by being in alliance with American because it had made the carrier a bigger player in certain markets. (Reporting by Rajesh Kumar Singh in Chicago and Diane Bartz in Washington; Additional reporting by David Shepardson; Editing by Richard Chang) ((rajeshkumar.singh@thomsonreuters.com; +1-312-408-8537; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Rajesh Kumar Singh and Diane Bartz CHICAGO/WASHINGTON, July 6 (Reuters) - JetBlue Airways' JBLU.Odecision to abandon its alliance with American Airlines AAL.O has improved its chances in the trial over a $3.8 billion deal to buy Spirit Airlines SAVE.N, but may not be enough to hand it a victory, antitrust experts said. In its lawsuit filed in March aimed at stopping JetBlue's purchase of Spirit, the U.S. Justice Department (DOJ) cited as evidence JetBlue's alliance with American at airports in New York and Boston several times. Eleanor Fox, an antitrust professor at New York University School of Law, said JetBlue would have found it even harder to win the Spirit trial by being in alliance with American because it had made the carrier a bigger player in certain markets.
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By Rajesh Kumar Singh and Diane Bartz CHICAGO/WASHINGTON, July 6 (Reuters) - JetBlue Airways' JBLU.Odecision to abandon its alliance with American Airlines AAL.O has improved its chances in the trial over a $3.8 billion deal to buy Spirit Airlines SAVE.N, but may not be enough to hand it a victory, antitrust experts said. Eleanor Fox, an antitrust professor at New York University School of Law, said JetBlue would have found it even harder to win the Spirit trial by being in alliance with American because it had made the carrier a bigger player in certain markets. "It improves the chances that JetBlue-Spirit will win the trial," Fox said.
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2485.0
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2023-07-06 00:00:00 UTC
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AAL August 25th Options Begin Trading
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AAL
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https://www.nasdaq.com/articles/aal-august-25th-options-begin-trading
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nan
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nan
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the August 25th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new August 25th contracts and identified one put and one call contract of particular interest.
The put contract at the $17.50 strike price has a current bid of 80 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $17.50, but will also collect the premium, putting the cost basis of the shares at $16.70 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $17.68/share today.
Because the $17.50 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 4.57% return on the cash commitment, or 33.37% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for American Airlines Group Inc, and highlighting in green where the $17.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $18.50 strike price has a current bid of 65 cents. If an investor was to purchase shares of AAL stock at the current price level of $17.68/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $18.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.31% if the stock gets called away at the August 25th expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $18.50 strike highlighted in red:
Considering the fact that the $18.50 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 3.68% boost of extra return to the investor, or 26.84% annualized, which we refer to as the YieldBoost.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $17.68) to be 43%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
HITT Videos
NLSN Historical Stock Prices
CDI Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $18.50 strike highlighted in red: Considering the fact that the $18.50 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the August 25th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $18.50 strike highlighted in red: Considering the fact that the $18.50 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the August 25th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new August 25th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAL's trailing twelve month trading history, with the $18.50 strike highlighted in red: Considering the fact that the $18.50 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the August 25th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new August 25th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAL's trailing twelve month trading history, with the $18.50 strike highlighted in red: Considering the fact that the $18.50 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the August 25th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new August 25th contracts and identified one put and one call contract of particular interest.
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2486.0
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2023-07-06 00:00:00 UTC
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Wall St logs sharp losses as labor market strength stokes rate-hike fears
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AAL
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https://www.nasdaq.com/articles/wall-st-logs-sharp-losses-as-labor-market-strength-stokes-rate-hike-fears
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nan
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nan
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By Lewis Krauskopf, Bansari Mayur Kamdar and Johann M Cherian
July 6 (Reuters) - Wall Street's main indexes ended sharply lower on Thursday in a broad sell-off after data showing a strong labor market boosted bond yields and fanned fears the Federal Reserve will be aggressive in raising U.S. interest rates.
The S&P 500 posted its biggest daily percentage drop since May 23. The Dow logged its biggest single-day fall since May 2.
Private payrolls surged far more than expected in June, data showed, suggesting the labor market remained solid despite growing risks of a recession. A separate report showed U.S. job openings dropped in May, but remained at elevated levels.
A day before the monthly U.S employment report, evidence of a solid labor market spurred expectations the Fed will keep interest rates higher for longer to tame stubborn inflation.
“We don’t see any softening in the labor market,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. “The Fed doesn’t have to worry about the jobs market. When you look at their mandate, they have no reason not to keep hiking and to keep hiking for a while.”
The Dow Jones Industrial Average .DJI fell 366.38 points, or 1.07%, to 33,922.26, the S&P 500 .SPX lost 35.23 points, or 0.79%, to 4,411.59 and the Nasdaq Composite .IXIC dropped 112.61 points, or 0.82%, to 13,679.04.
All 11 S&P 500 sectors ended down. Energy .SPNY led declines among the sectors, dropping about 2.5%, while consumer discretionary .SPLRCD slumped nearly 1.7%.
Gains in megacap stocks mitigated declines for the major indexes, which ended above their session lows. Microsoft MSFT.O rose 0.9% while Apple AAPL.O was up 0.3%.
Treasury yields jumped following the labor market data. The benchmark 10-year yield US10YT=RR burst above 4% while the two-year US2YT=RR Treasury yield, which typically moves in step with interest rate expectations, hit a 16-year high.
U.S. interest rate futures saw an increased probability of another rate hike by the Federal Reserve in November, according to CME's FedWatch.
The Fed did not hike rates in June but is widely expected to resume increases at its July meeting. Dallas Fed President Lorie Logan said there was a case for a rate rise at the June policy meeting.
In company news, Exxon Mobil Corp XOM.N shares fell 3.7% after the oil major signaled a sharp fall in second-quarter operating profits on lower natural gas prices and weaker oil refining margins.
Second-quarter corporate reports will arrive in coming weeks with S&P 500 earnings expected to fall 5.7% from a year-ago, according to Refinitiv data.
“You have a situation where rates are going higher, profits are not really moving," said King Lip, chief strategist at Baker Avenue Wealth Management. "That’s usually not a good combination for stocks.”
JetBlue AirwaysJBLU.O shares dropped 7.2% a day after the company said it would follow a U.S. judge's May order to end its alliance with American Airlines AAL.O to protect a planned purchase of Spirit Airlines.
Declining issues outnumbered advancing ones on the NYSE by a 6.01-to-1 ratio; on Nasdaq, a 3.25-to-1 ratio favored decliners.
The S&P 500 posted 4 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 27 new highs and 118 new lows.
About 11.7 billion shares changed hands in U.S. exchanges, compared with the 11.1 billion daily average over the last 20 sessions.
(Reporting by Lewis Krauskopf in New York, Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Editing by Vinay Dwivedi, Shinjini Ganguli and David Gregorio)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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"That’s usually not a good combination for stocks.” JetBlue AirwaysJBLU.O shares dropped 7.2% a day after the company said it would follow a U.S. judge's May order to end its alliance with American Airlines AAL.O to protect a planned purchase of Spirit Airlines. By Lewis Krauskopf, Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street's main indexes ended sharply lower on Thursday in a broad sell-off after data showing a strong labor market boosted bond yields and fanned fears the Federal Reserve will be aggressive in raising U.S. interest rates. Private payrolls surged far more than expected in June, data showed, suggesting the labor market remained solid despite growing risks of a recession.
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"That’s usually not a good combination for stocks.” JetBlue AirwaysJBLU.O shares dropped 7.2% a day after the company said it would follow a U.S. judge's May order to end its alliance with American Airlines AAL.O to protect a planned purchase of Spirit Airlines. By Lewis Krauskopf, Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street's main indexes ended sharply lower on Thursday in a broad sell-off after data showing a strong labor market boosted bond yields and fanned fears the Federal Reserve will be aggressive in raising U.S. interest rates. Private payrolls surged far more than expected in June, data showed, suggesting the labor market remained solid despite growing risks of a recession.
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"That’s usually not a good combination for stocks.” JetBlue AirwaysJBLU.O shares dropped 7.2% a day after the company said it would follow a U.S. judge's May order to end its alliance with American Airlines AAL.O to protect a planned purchase of Spirit Airlines. By Lewis Krauskopf, Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street's main indexes ended sharply lower on Thursday in a broad sell-off after data showing a strong labor market boosted bond yields and fanned fears the Federal Reserve will be aggressive in raising U.S. interest rates. A day before the monthly U.S employment report, evidence of a solid labor market spurred expectations the Fed will keep interest rates higher for longer to tame stubborn inflation.
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"That’s usually not a good combination for stocks.” JetBlue AirwaysJBLU.O shares dropped 7.2% a day after the company said it would follow a U.S. judge's May order to end its alliance with American Airlines AAL.O to protect a planned purchase of Spirit Airlines. The S&P 500 posted its biggest daily percentage drop since May 23. Treasury yields jumped following the labor market data.
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2487.0
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2023-07-06 00:00:00 UTC
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Guru Fundamental Report for AAL
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AAL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aal-13
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nan
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nan
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. This strategy looks for companies returning cash to shareholders via dividends, buybacks and debt paydown.
AMERICAN AIRLINES GROUP INC (AAL) is a large-cap value stock in the Airline industry. The rating using this strategy is 70% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
UNIVERSE: PASS
NET PAYOUT YIELD: FAIL
QUALITY AND DEBT: PASS
VALUATION: PASS
RELATIVE STRENGTH: PASS
SHAREHOLDER YIELD: FAIL
Detailed Analysis of AMERICAN AIRLINES GROUP INC
AAL Guru Analysis
AAL Fundamental Analysis
More Information on Meb Faber
Meb Faber Portfolio
About Meb Faber: Meb Faber is the founder of Cambria Investments. His research has covered a wide spectrum of the investment world, including topics like shareholder yield, trend following, global asset allocation and home country bias. His shareholder yield strategy, which is based on his book "Shareholder Yield" and forms the basis for an ETF of the same name, looks for companies that are focused on creating value for shareholders by returning cash to them in the form of dividends, share buybacks and debt paydown. Meb is also the author of 4 other books and numerous white papers on investing related topics.
Additional Research Links
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Factor-Based Stock Portfolios
Dividend Aristocrats 2023
High Insider Ownership Stocks
Top S&P 500 Stocks
Excess Returns Investing Podcast
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. AMERICAN AIRLINES GROUP INC (AAL) is a large-cap value stock in the Airline industry.
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Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Meb Faber Meb Faber Portfolio About Meb Faber: Meb Faber is the founder of Cambria Investments. Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL).
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Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Meb Faber Meb Faber Portfolio About Meb Faber: Meb Faber is the founder of Cambria Investments. Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber.
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Detailed Analysis of AMERICAN AIRLINES GROUP INC AAL Guru Analysis AAL Fundamental Analysis More Information on Meb Faber Meb Faber Portfolio About Meb Faber: Meb Faber is the founder of Cambria Investments. Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber.
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2488.0
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2023-07-06 00:00:00 UTC
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Wall St sinks as labor data stokes rate hike fears
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AAL
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https://www.nasdaq.com/articles/wall-st-sinks-as-labor-data-stokes-rate-hike-fears
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nan
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nan
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By Lewis Krauskopf, Bansari Mayur Kamdar and Johann M Cherian
July 6 (Reuters) - Wall Street's main indexes fell sharply on Thursday in a broad selloff after data showing a strong labor market drove up bond yields and fanned fears that the Federal Reserve will be aggressive in raising interest rates.
All 11 S&P 500 sectors were in negative territory, with energy .SPNY and consumer discretionary .SPLRCD falling the most.
Private payrolls surged far more than expected in June, data showed, suggesting that the labor market remained on solid ground despite growing risks of a recession. A separate report showed U.S. job openings dropped in May, but remained at higher levels.
A day before the monthly U.S employment report, evidence of a solid labor market stoked expectations the Fed will keep interest rates higher for longer to tame inflation that remains above its target.
“We don’t see any softening in the labor market,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. “The Fed doesn’t have to worry about the jobs market. When you look at their mandate, they have no reason not to keep hiking and to keep hiking for a while.”
The Dow Jones Industrial Average .DJI fell 361.87 points, or 1.06%, to 33,926.77, the S&P 500 .SPX lost 36.73 points, or 0.83%, to 4,410.09 and the Nasdaq Composite .IXIC dropped 123.44 points, or 0.9%, to 13,668.21.
Treasury yields jumped following the labor market data. The benchmark 10-year yield US10YT=RR burst above 4% while the two-year US2YT=RR Treasury yield, which typically moves in step with interest rate expectations, hit a 16-year high.
U.S. interest rate futures saw an increased probability of another rate hike by the Federal Reserve in November, according to CME's FedWatch.
The Fed did not hike rates at its June meeting but is widely expected to resume increases at its meeting later this month. Dallas Fed President Lorie Logan said there was a case for a rate rise at the June policy meeting.
In company news, Exxon Mobil Corp XOM.N shares fell 3.5% after the oil major signaled second-quarter operating profits fell sharply on lower natural gas prices and weaker oil refining margins.
JetBlue AirwaysJBLU.O shares dropped 6.5% a day after the company said it would follow a U.S. judge's May order to end its alliance with American Airlines AAL.O to protect a planned purchase of Spirit Airlines.
Declining issues outnumbered advancing ones on the NYSE by a 7.93-to-1 ratio; on Nasdaq, a 4.09-to-1 ratio favored decliners.
The S&P 500 posted 3 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 21 new highs and 104 new lows.
(Reporting by Lewis Krauskopf in New York, Bansari Mayur Kamdar and Johann M Cherian in Bengaluru; Editing by Vinay Dwivedi, Shinjini Ganguli and David Gregorio)
((lewis.krauskopf@thomsonreuters.com; 646-223-6082; Reuters Messaging: lewis.krauskopf.thomsonreuters.com@reuters.net, Twitter: @LKrauskopf))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
JetBlue AirwaysJBLU.O shares dropped 6.5% a day after the company said it would follow a U.S. judge's May order to end its alliance with American Airlines AAL.O to protect a planned purchase of Spirit Airlines. By Lewis Krauskopf, Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street's main indexes fell sharply on Thursday in a broad selloff after data showing a strong labor market drove up bond yields and fanned fears that the Federal Reserve will be aggressive in raising interest rates. Private payrolls surged far more than expected in June, data showed, suggesting that the labor market remained on solid ground despite growing risks of a recession.
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JetBlue AirwaysJBLU.O shares dropped 6.5% a day after the company said it would follow a U.S. judge's May order to end its alliance with American Airlines AAL.O to protect a planned purchase of Spirit Airlines. By Lewis Krauskopf, Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street's main indexes fell sharply on Thursday in a broad selloff after data showing a strong labor market drove up bond yields and fanned fears that the Federal Reserve will be aggressive in raising interest rates. Private payrolls surged far more than expected in June, data showed, suggesting that the labor market remained on solid ground despite growing risks of a recession.
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JetBlue AirwaysJBLU.O shares dropped 6.5% a day after the company said it would follow a U.S. judge's May order to end its alliance with American Airlines AAL.O to protect a planned purchase of Spirit Airlines. By Lewis Krauskopf, Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street's main indexes fell sharply on Thursday in a broad selloff after data showing a strong labor market drove up bond yields and fanned fears that the Federal Reserve will be aggressive in raising interest rates. A day before the monthly U.S employment report, evidence of a solid labor market stoked expectations the Fed will keep interest rates higher for longer to tame inflation that remains above its target.
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JetBlue AirwaysJBLU.O shares dropped 6.5% a day after the company said it would follow a U.S. judge's May order to end its alliance with American Airlines AAL.O to protect a planned purchase of Spirit Airlines. By Lewis Krauskopf, Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street's main indexes fell sharply on Thursday in a broad selloff after data showing a strong labor market drove up bond yields and fanned fears that the Federal Reserve will be aggressive in raising interest rates. A separate report showed U.S. job openings dropped in May, but remained at higher levels.
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2489.0
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2023-07-06 00:00:00 UTC
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US STOCKS-Wall Street futures slide on rate hike jitters; Meta rises
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-street-futures-slide-on-rate-hike-jitters-meta-rises
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Meta takes aim at Twitter with Threads app, millions join
Exxon signals sharp drop in profit
Futures down: Dow 0.45%, S&P 0.43%, Nasdaq 0.42%
July 6 (Reuters) - Wall Street futures fell on Thursday as investors digested minutes of the Federal Reserve's June meeting, while Meta bucked the slide in rate-sensitive technology and growth companies as it launched a Twitter-like app, Threads.
U.S. stock indexes slipped in the previous session after the Fed minutes showed a vast majority of the policymakers expected further policy tightening, even as they agreed to hold rates steady in June.
Most tech and growth megacaps fell in early premarket trading, with Alphabet GOOGL.O and Tesla TSLA.O down 0.6% and 0.9%, respectively.
Meta PlatformsMETA.O rose 1.7% after attracting millions of users within hours of launching Threads on Wednesday.
"No doubt there will be bumps in the road, but the injection of some healthy competition will be a welcome development for consumers," said Victoria Scholar, head of investment at Interactive Investor.
"(It) could provide support to Meta's share price if Threads turns out to be a success, as its huge number of initial sign ups suggests."
After a dismal 2022, big growth and technology stocks such as Meta have seen outsized gains this year, with the Nasdaq Composite .IXIC clocking its biggest first-half rise in 40 years.
At 05:30 a.m. ET, Dow e-minis 1YMcv1 were down 154 points, or 0.45%, S&P 500 e-minis EScv1 were down 19.25 points, or 0.43%, and Nasdaq 100 e-minis NQcv1 were down 64.25 points, or 0.42%.
Investors are focused on U.S. jobless claims, JOLTS and private payrolls data due later in the day as well as the Institute for Supply Management's (ISM) non-manufacturing PMI numbers.
Chipmakers Qualcomm QCOM.O and Intel INTC.O extended declines, dropping 1.2% each, as a trade war between Beijing and Washington escalates.
Beijing restricted exports of metals used in semiconductors on Monday, adding that the controls were "just a start," ahead of U.S. Treasury Secretary Janet Yellen trip to China.
Among other movers, Exxon MobilXOM.N eased 0.9% on signaling a sharp drop in second-quarter operating profit on lower natural gas prices and weaker oil refining margins, according to a regulatory filing.
JetBlue AirwaysJBLU.O fell 1.2% after the company said it would follow a U.S. judge's May order to end an alliance with American Airlines AAL.O to protect a planned $3.8 billion purchase of Spirit Airlines SAVE.N.
(Reporting by Bansari Mayur Kamdar in Bengaluru Editing by Vinay Dwivedi)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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JetBlue AirwaysJBLU.O fell 1.2% after the company said it would follow a U.S. judge's May order to end an alliance with American Airlines AAL.O to protect a planned $3.8 billion purchase of Spirit Airlines SAVE.N. U.S. stock indexes slipped in the previous session after the Fed minutes showed a vast majority of the policymakers expected further policy tightening, even as they agreed to hold rates steady in June. Investors are focused on U.S. jobless claims, JOLTS and private payrolls data due later in the day as well as the Institute for Supply Management's (ISM) non-manufacturing PMI numbers.
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JetBlue AirwaysJBLU.O fell 1.2% after the company said it would follow a U.S. judge's May order to end an alliance with American Airlines AAL.O to protect a planned $3.8 billion purchase of Spirit Airlines SAVE.N. Meta takes aim at Twitter with Threads app, millions join Exxon signals sharp drop in profit Futures down: Dow 0.45%, S&P 0.43%, Nasdaq 0.42% July 6 (Reuters) - Wall Street futures fell on Thursday as investors digested minutes of the Federal Reserve's June meeting, while Meta bucked the slide in rate-sensitive technology and growth companies as it launched a Twitter-like app, Threads. After a dismal 2022, big growth and technology stocks such as Meta have seen outsized gains this year, with the Nasdaq Composite .IXIC clocking its biggest first-half rise in 40 years.
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JetBlue AirwaysJBLU.O fell 1.2% after the company said it would follow a U.S. judge's May order to end an alliance with American Airlines AAL.O to protect a planned $3.8 billion purchase of Spirit Airlines SAVE.N. Meta takes aim at Twitter with Threads app, millions join Exxon signals sharp drop in profit Futures down: Dow 0.45%, S&P 0.43%, Nasdaq 0.42% July 6 (Reuters) - Wall Street futures fell on Thursday as investors digested minutes of the Federal Reserve's June meeting, while Meta bucked the slide in rate-sensitive technology and growth companies as it launched a Twitter-like app, Threads. After a dismal 2022, big growth and technology stocks such as Meta have seen outsized gains this year, with the Nasdaq Composite .IXIC clocking its biggest first-half rise in 40 years.
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JetBlue AirwaysJBLU.O fell 1.2% after the company said it would follow a U.S. judge's May order to end an alliance with American Airlines AAL.O to protect a planned $3.8 billion purchase of Spirit Airlines SAVE.N. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Meta takes aim at Twitter with Threads app, millions join Exxon signals sharp drop in profit Futures down: Dow 0.45%, S&P 0.43%, Nasdaq 0.42% July 6 (Reuters) - Wall Street futures fell on Thursday as investors digested minutes of the Federal Reserve's June meeting, while Meta bucked the slide in rate-sensitive technology and growth companies as it launched a Twitter-like app, Threads.
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2490.0
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2023-07-06 00:00:00 UTC
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Is a Beat in Store for Delta Air Lines (DAL) in Q2 Earnings?
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AAL
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https://www.nasdaq.com/articles/is-a-beat-in-store-for-delta-air-lines-dal-in-q2-earnings
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nan
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nan
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Delta Air Lines DAL is scheduled to report second-quarter 2023 results on Jul 13 before market open.
Let’s see how things are shaping up for Delta Air Lines this earnings season.
Q2 Expectations
The Zacks Consensus Estimate for DAL’s second-quarter 2023 revenues is pegged at $15 billion, indicating 8.6% growth year over year. The top line is likely to have been aided by an uptick in air-travel demand in the United States. Notably, the majority of passenger revenues are coming from the domestic markets. Backed by strong booking trends for summer, the company expects June-quarter revenues (adjusted) to increase in the range of 17-18% from second-quarter 2022 actuals.
Delta Air Lines expects its adjusted earnings per share to be between $2.25 and $2.50 for the second quarter of 2023. The midpoint of the guided range ($2.375) is however higher than the Zacks Consensus Estimate of $2.34.
Delta Air Lines, Inc. Price and EPS Surprise
Delta Air Lines, Inc. price-eps-surprise | Delta Air Lines, Inc. Quote
However, fuel expenses are likely to have hurt the bottom line in the second quarter. In first-quarter 2023, the average fuel price per gallon (adjusted) increased 10% from first-quarter 2022 actuals to $3.06. Management expects fuel price per gallon (adjusted) in the $2.55-$2.80 range in the quarter under review.
Even though fuel price has come down from the highs witnessed earlier, it remains at an elevated level. Per our estimates, the average fuel price per gallon is projected to be $2.78 for second-quarter 2023.
What Our Model Says
Our proven model conclusively predicts an earnings beat for Delta Air Lines this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Delta Air Lines has an Earnings ESP of +1.58% and a Zacks Rank #3.
Q1 Highlights
DAL's earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. The company reported a loss of $1.23 per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
Revenues of $12,759 million missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
Other Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these too have the right combination of elements to beat on their second-quarter 2023 earnings.
American Airlines Group Inc. AAL has an Earnings ESP of +3.50% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
AAL delivered a trailing four-quarter earnings surprise of 12.9%, on average. The Zacks Consensus Estimate for AAL’s second-quarter 2023 earnings has surged more than 100% year over year.
Allegiant Travel Company ALGT has an Earnings ESP of +2.84% and a Zacks Rank #3.
ALGT has an expected earnings growth rate of more than 100% for the current year. It delivered a trailing four-quarter earnings surprise of 79.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Allegiant Travel Company (ALGT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc. AAL has an Earnings ESP of +3.50% and a Zacks Rank #3. AAL delivered a trailing four-quarter earnings surprise of 12.9%, on average. The Zacks Consensus Estimate for AAL’s second-quarter 2023 earnings has surged more than 100% year over year.
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Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. AAL has an Earnings ESP of +3.50% and a Zacks Rank #3. AAL delivered a trailing four-quarter earnings surprise of 12.9%, on average.
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Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. AAL has an Earnings ESP of +3.50% and a Zacks Rank #3. AAL delivered a trailing four-quarter earnings surprise of 12.9%, on average.
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The Zacks Consensus Estimate for AAL’s second-quarter 2023 earnings has surged more than 100% year over year. American Airlines Group Inc. AAL has an Earnings ESP of +3.50% and a Zacks Rank #3. AAL delivered a trailing four-quarter earnings surprise of 12.9%, on average.
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2491.0
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2023-07-06 00:00:00 UTC
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US STOCKS-Wall St slides 1% as labor data stokes rate hike concerns
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-st-slides-1-as-labor-data-stokes-rate-hike-concerns
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Meta takes aim at Twitter with Threads app, millions join
Exxon signals sharp drop in profit
US private payrolls beat expectations in June - ADP
US weekly jobless claims rise moderately
Indexes down: Nasdaq 1.25%, S&P 1.03%, Dow 1.00%
Updated at 9:53 a.m. ET/1353 GMT
By Bansari Mayur Kamdar and Johann M Cherian
July 6 (Reuters) - Wall Street tumbled on Thursday as data signaling a resilient labor market and hawkish minutes of the Federal Reserve's June meeting fanned fears the central bank could keep interest rates higher for longer.
Private payrolls increased more than expected in June, the ADP National Employment report showed, indicating the labor market remained strong despite growing risks of a recession from higher interest rates.
Another survey showed the number of Americans filing new claims for unemployment benefits increased moderately last week.
"The Fed has been hopeful to see a modest deterioration in the labor market," said Randy Frederick, managing director of trading and derivatives for Charles Schwab.
"But since the ADP number was almost twice of what was expected, it generally implies there's potential for more rate hikes going forward."
Money market traders now see a near 95% chance of a quarter-point hike at the bank's next meeting on July 26, up from 90.5% earlier in the day, according to CME's Fedwatch tool.
Dallas Fed President Lorie Logan, a voting member of the Fed's rate-setting committee, said on Thursday "it would have been entirely appropriate" to raise rates at the June policy meeting itself.
All 11 major S&P 500 sectors were in the red in early trading, with technology stocks .SPLRCT leading declines, down 0.9%.
Meta PlatformsMETA.O rose 0.6% as it took aim at Twitter with its Threads app that attracted millions of users within hours of its launch on Wednesday.
U.S. stock indexes had slipped in the previous session after the Fed minutes showed a vast majority of the policymakers expected further policy tightening, even as they agreed to hold rates steady in June.
At 9:53 a.m. ET, the Dow Jones Industrial Average .DJI was down 341.58 points, or 1.00%, at 33,947.06, the S&P 500 .SPX was down 45.79 points, or 1.03%, at 4,401.03, and the Nasdaq Composite .IXIC was down 173.02 points, or 1.25%, at 13,618.64.
Investors await job openings and labor turnover survey and the Institute for Supply Management's non-manufacturing purchasing managers' index reading, due later in the day.
Among other movers, chipmakers Qualcomm QCOM.O and Intel INTC.O extended declines, dropping more than 1.8% each, as the trade war between Beijing and Washington escalated after China restricted exports of metals used in semiconductors on Monday.
Meanwhile, U.S. Treasury Secretary Janet Yellen began her four-day visit to Beijing amid skepticism over a productive outcome.
Exxon MobilXOM.N eased 1.9% on signaling a sharp drop in second-quarter operating profit on lower natural gas prices and weaker oil refining margins, according to a regulatory filing.
JetBlue AirwaysJBLU.O fell 3.8% after the company said it would follow a U.S. judge's May order to end an alliance with American Airlines AAL.O to protect a planned $3.8 billion purchase of Spirit Airlines SAVE.N.
Declining issues outnumbered advancers by a 10.68-to-1 ratio on the NYSE and a 4.86-to-1 ratio on the Nasdaq.
The S&P index recorded one new 52-week high and no new low, while the Nasdaq recorded 12 new highs and 45 new lows.
(Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru Editing by Vinay Dwivedi)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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JetBlue AirwaysJBLU.O fell 3.8% after the company said it would follow a U.S. judge's May order to end an alliance with American Airlines AAL.O to protect a planned $3.8 billion purchase of Spirit Airlines SAVE.N. Meta takes aim at Twitter with Threads app, millions join Exxon signals sharp drop in profit US private payrolls beat expectations in June - ADP US weekly jobless claims rise moderately Indexes down: Nasdaq 1.25%, S&P 1.03%, Dow 1.00% Updated at 9:53 a.m. ET/1353 GMT By Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street tumbled on Thursday as data signaling a resilient labor market and hawkish minutes of the Federal Reserve's June meeting fanned fears the central bank could keep interest rates higher for longer. Private payrolls increased more than expected in June, the ADP National Employment report showed, indicating the labor market remained strong despite growing risks of a recession from higher interest rates.
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JetBlue AirwaysJBLU.O fell 3.8% after the company said it would follow a U.S. judge's May order to end an alliance with American Airlines AAL.O to protect a planned $3.8 billion purchase of Spirit Airlines SAVE.N. Meta takes aim at Twitter with Threads app, millions join Exxon signals sharp drop in profit US private payrolls beat expectations in June - ADP US weekly jobless claims rise moderately Indexes down: Nasdaq 1.25%, S&P 1.03%, Dow 1.00% Updated at 9:53 a.m. ET/1353 GMT By Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street tumbled on Thursday as data signaling a resilient labor market and hawkish minutes of the Federal Reserve's June meeting fanned fears the central bank could keep interest rates higher for longer. Private payrolls increased more than expected in June, the ADP National Employment report showed, indicating the labor market remained strong despite growing risks of a recession from higher interest rates.
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JetBlue AirwaysJBLU.O fell 3.8% after the company said it would follow a U.S. judge's May order to end an alliance with American Airlines AAL.O to protect a planned $3.8 billion purchase of Spirit Airlines SAVE.N. Meta takes aim at Twitter with Threads app, millions join Exxon signals sharp drop in profit US private payrolls beat expectations in June - ADP US weekly jobless claims rise moderately Indexes down: Nasdaq 1.25%, S&P 1.03%, Dow 1.00% Updated at 9:53 a.m. ET/1353 GMT By Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street tumbled on Thursday as data signaling a resilient labor market and hawkish minutes of the Federal Reserve's June meeting fanned fears the central bank could keep interest rates higher for longer. Private payrolls increased more than expected in June, the ADP National Employment report showed, indicating the labor market remained strong despite growing risks of a recession from higher interest rates.
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JetBlue AirwaysJBLU.O fell 3.8% after the company said it would follow a U.S. judge's May order to end an alliance with American Airlines AAL.O to protect a planned $3.8 billion purchase of Spirit Airlines SAVE.N. Meta takes aim at Twitter with Threads app, millions join Exxon signals sharp drop in profit US private payrolls beat expectations in June - ADP US weekly jobless claims rise moderately Indexes down: Nasdaq 1.25%, S&P 1.03%, Dow 1.00% Updated at 9:53 a.m. ET/1353 GMT By Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street tumbled on Thursday as data signaling a resilient labor market and hawkish minutes of the Federal Reserve's June meeting fanned fears the central bank could keep interest rates higher for longer. Private payrolls increased more than expected in June, the ADP National Employment report showed, indicating the labor market remained strong despite growing risks of a recession from higher interest rates.
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2492.0
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2023-07-06 00:00:00 UTC
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Wall Street Is Cautious on These 2 First Half Winners
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AAL
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https://www.nasdaq.com/articles/wall-street-is-cautious-on-these-2-first-half-winners
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nan
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nan
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Lately, it seems like the only thing that can stop the U.S. equity markets is a holiday early close. Heading into the 4th of July celebration, major stock indices are enjoying a festive 2023 thanks to 1) waning expectations of a long anticipated recession and 2) retreating inflation.
In contrast to earlier in the year, good economic news is actually good news for stocks these days. A very mild uptick in the latest personal consumption expenditure (PCE) reading is being cheered by investors because it suggests that the Fed will soften its hawkish interest rate stance. It could also mean that consumers will be spending more and corporate America will be banking higher profits in the months ahead.
As a result, domestic equities are flipping the script from a year ago. Take the Russell 1000 Index, a widely tracked benchmark that covers approximately 93% of the U.S. market. After dropping 19% in 2022, it’s up 17% year-to-date.
What’s more encouraging is this year’s breadth, i.e. the number of stocks participating in a rally (or downturn). This is an important gauge of market health because it strips out the outsized impact of heavily weighted mega caps. While Nvidia, Meta Platforms and Tesla are certainly pulling their weight, roughly 63% of Russell 1000 constituents are in the green. Compare this to last year’s 25% market breadth, which, well, stunk.
This brings us to the (Russell) $1,000 question: do the biggest first-half winners have more in the tank? Fourteen stocks have already doubled, including the aforementioned mega caps, Spotify and Palantir. Another 165 are up at least 30%.
Taking this second tier of Russell 1000 winners, Wall Street is still bullish on most — but starting to pump the brakes on others. The caution flag is being waved on these two first-half outperformers.
Has American Airlines Stock Flown Too Far?
American Airlines Group Inc. (NASDAQ: AAL) climbed 42% in the first half of 2023. And while Big Four peers United Airlines and Delta Air Lines posted similar returns, analysts are particularly skeptical about American.
Last week, Bank of America issued a Sell rating on the nation’s second-largest airline (by capacity), becoming the second firm to do so this summer. American is benefiting from strong leisure travel demand and rebounding corporate travel. Unfortunately, newly negotiated pilot salaries and wages, along with elevated fuel costs are limiting the impact of higher volumes and ticket prices.
To American’s credit, it was the only Big Four airline to turn a small profit in the first quarter, its first of the post-pandemic era. Some 48.2 million passengers generated record revenue of $12.1 billion and a $10 million profit. However, the company’s bloated debt balance is keeping analysts from coming on board.
Through the end of the Q1, debt accounted for 116% of American’s capital structure. This was the highest figure among large cap passenger airlines — and miles away from Southwest Airlines (44%), which has long been considered the group’s fundamental leader. Although American is aiming to reduce its debt burden to at least $44 billion by year end, this may not be enough to sway the skeptics.
This is a good example of why thorough fundamental analysis looks beyond the bottom line to leverage and other key parts of financial health. With a consensus Neutral rating and $18.00 price target, American could be in a second half holding pattern.
Are DaVita Shares Fully Valued?
Dialysis services provider DaVita Inc. (NYSE: DVA) rose 35% in the first half on the heels of back-to-back earnings beats. The company has benefited from increasing U.S. dialysis treatments and international growth as health care settings continue to normalize post-Covid. The problem is, profitability is trending in the wrong direction.
Despite the significant Q1 beat, DaVita’s earnings were down 2% year-over-year. This marked the fifth consecutive period of lower profits. Operating margins have been contracting due to a mix of rising expenses, most notably higher labor costs. A struggle to staff its kidney dialysis centers may be forcing the company to pay more to attract qualified candidates. Combined with a 12.5% jump in administrative expenses, this caused Q1 operating profits to shrink 4.2%.
The profit issue may only worsen. Analysts are forecasting a 26% drop in earnings when the company reports second quarter results next month. The full-year consensus EPS estimate equates to a 15x P/E ratio. Since this is in-line with the five-year historical average P/E, Wall Street thinks the stock is appropriately valued. Unlike many first half winners, there’s not a single Buy rating to be found on DaVita.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc. (NASDAQ: AAL) climbed 42% in the first half of 2023. Heading into the 4th of July celebration, major stock indices are enjoying a festive 2023 thanks to 1) waning expectations of a long anticipated recession and 2) retreating inflation. A very mild uptick in the latest personal consumption expenditure (PCE) reading is being cheered by investors because it suggests that the Fed will soften its hawkish interest rate stance.
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American Airlines Group Inc. (NASDAQ: AAL) climbed 42% in the first half of 2023. In contrast to earlier in the year, good economic news is actually good news for stocks these days. Taking this second tier of Russell 1000 winners, Wall Street is still bullish on most — but starting to pump the brakes on others.
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American Airlines Group Inc. (NASDAQ: AAL) climbed 42% in the first half of 2023. Has American Airlines Stock Flown Too Far? And while Big Four peers United Airlines and Delta Air Lines posted similar returns, analysts are particularly skeptical about American.
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American Airlines Group Inc. (NASDAQ: AAL) climbed 42% in the first half of 2023. The profit issue may only worsen. Analysts are forecasting a 26% drop in earnings when the company reports second quarter results next month.
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2493.0
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2023-07-06 00:00:00 UTC
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US STOCKS-Wall St eyes lower open as labor data stokes rate hike concerns
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-st-eyes-lower-open-as-labor-data-stokes-rate-hike-concerns
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nan
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nan
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Meta takes aim at Twitter with Threads app, millions join
Exxon signals sharp drop in profit
US private payrolls beat expectations in June - ADP
US weekly jobless claims rise moderately
Futures down: Nasdaq 1.10%, S&P 0.88%, Dow 0.81%
Updated at 8:49 a.m. ET/1249 GMT
By Bansari Mayur Kamdar and Johann M Cherian
July 6 (Reuters) - Wall Street was set to open lower on Thursday as data signaling a resilient labor market and hawkish minutes of the Federal Reserve's June meeting fanned fears the central bank could keep interest rates higher for longer.
Private payrolls increased more than expected in June, the ADP National Employment report showed on Thursday, indicating the labor market remained strong despite growing risks of a recession from higher interest rates.
Another survey showed the number of Americans filing new claims for unemployment benefits increased moderately last week.
Expectations of another rate hike by the Fed to tame stubbornly high inflation led a closely watched part of the U.S. Treasury yield curve to its deepest inversion since 1981 on Monday, once again putting a spotlight on what many investors consider a recession signal.
"The big news is the Fed and the likelihood that they will raise rates at the July meeting," said Sam Stovall, chief investment strategist at CFRA Research.
Dallas Fed President Lorie Logan, a voting member of the Fed's rate-setting committee, said on Thursday "it would have been entirely appropriate" to raise rates at the June policy meeting itself.
U.S. stock indexes had slipped in the previous session after the Fed minutes showed a vast majority of the policymakers expected further policy tightening, even as they agreed to hold rates steady in June.
"Investors are using concerns around interest rates and the inverted yield curve as reasons to take some near-term profits from the recent advance in the equity market," Stovall added.
Most tech and growth megacaps, whose valuations come under pressure when borrowing costs rise, fell in premarket trading, with Alphabet GOOGL.O and Tesla TSLA.O down 1.4% and 1.3% respectively.
After a dismal 2022, big growth and technology stocks have seen outsized gains so far this year, with the Nasdaq Composite .IXIC clocking its best first-half in 40 years.
Meta PlatformsMETA.O rose 0.6% as it took aim at Twitter with its Threads app that attracted millions of users within hours of its launch on Wednesday.
At 8:49 a.m. ET, Dow e-minis 1YMcv1 were down 281 points, or 0.81%, S&P 500 e-minis EScv1 were down 39.25 points, or 0.88%, and Nasdaq 100 e-minis NQcv1 were down 168.5 points, or 1.1%.
Investors also await job openings and labor turnover survey and the Institute for Supply Management's non-manufacturing purchasing managers' index reading, due later in the day, ahead of the highly anticipated jobs data on Friday.
Among other movers, chipmakers Qualcomm QCOM.O and Intel INTC.O extended declines, dropping more than 1.8% each, as the trade war between Beijing and Washington escalated after China restricted exports of metals used in semiconductors on Monday.
Meanwhile, U.S. Treasury Secretary Janet Yellen began her four-day visit to Beijing amid skepticism over a productive outcome.
Exxon MobilXOM.N eased 2.1% on signaling a sharp drop in second-quarter operating profit on lower natural gas prices and weaker oil refining margins, according to a regulatory filing.
JetBlue AirwaysJBLU.O fell 1.8% after the company said it would follow a U.S. judge's May order to end an alliance with American Airlines AAL.O to protect a planned $3.8 billion purchase of Spirit Airlines SAVE.N.
(Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru Editing by Vinay Dwivedi)
((BansariMayur.Kamdar@thomsonreuters.com; Twitter: @BansariKamdar;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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JetBlue AirwaysJBLU.O fell 1.8% after the company said it would follow a U.S. judge's May order to end an alliance with American Airlines AAL.O to protect a planned $3.8 billion purchase of Spirit Airlines SAVE.N. Meta takes aim at Twitter with Threads app, millions join Exxon signals sharp drop in profit US private payrolls beat expectations in June - ADP US weekly jobless claims rise moderately Futures down: Nasdaq 1.10%, S&P 0.88%, Dow 0.81% Updated at 8:49 a.m. ET/1249 GMT By Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street was set to open lower on Thursday as data signaling a resilient labor market and hawkish minutes of the Federal Reserve's June meeting fanned fears the central bank could keep interest rates higher for longer. Private payrolls increased more than expected in June, the ADP National Employment report showed on Thursday, indicating the labor market remained strong despite growing risks of a recession from higher interest rates.
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JetBlue AirwaysJBLU.O fell 1.8% after the company said it would follow a U.S. judge's May order to end an alliance with American Airlines AAL.O to protect a planned $3.8 billion purchase of Spirit Airlines SAVE.N. Meta takes aim at Twitter with Threads app, millions join Exxon signals sharp drop in profit US private payrolls beat expectations in June - ADP US weekly jobless claims rise moderately Futures down: Nasdaq 1.10%, S&P 0.88%, Dow 0.81% Updated at 8:49 a.m. ET/1249 GMT By Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street was set to open lower on Thursday as data signaling a resilient labor market and hawkish minutes of the Federal Reserve's June meeting fanned fears the central bank could keep interest rates higher for longer. Private payrolls increased more than expected in June, the ADP National Employment report showed on Thursday, indicating the labor market remained strong despite growing risks of a recession from higher interest rates.
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JetBlue AirwaysJBLU.O fell 1.8% after the company said it would follow a U.S. judge's May order to end an alliance with American Airlines AAL.O to protect a planned $3.8 billion purchase of Spirit Airlines SAVE.N. Meta takes aim at Twitter with Threads app, millions join Exxon signals sharp drop in profit US private payrolls beat expectations in June - ADP US weekly jobless claims rise moderately Futures down: Nasdaq 1.10%, S&P 0.88%, Dow 0.81% Updated at 8:49 a.m. ET/1249 GMT By Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street was set to open lower on Thursday as data signaling a resilient labor market and hawkish minutes of the Federal Reserve's June meeting fanned fears the central bank could keep interest rates higher for longer. Private payrolls increased more than expected in June, the ADP National Employment report showed on Thursday, indicating the labor market remained strong despite growing risks of a recession from higher interest rates.
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JetBlue AirwaysJBLU.O fell 1.8% after the company said it would follow a U.S. judge's May order to end an alliance with American Airlines AAL.O to protect a planned $3.8 billion purchase of Spirit Airlines SAVE.N. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window. Meta takes aim at Twitter with Threads app, millions join Exxon signals sharp drop in profit US private payrolls beat expectations in June - ADP US weekly jobless claims rise moderately Futures down: Nasdaq 1.10%, S&P 0.88%, Dow 0.81% Updated at 8:49 a.m. ET/1249 GMT By Bansari Mayur Kamdar and Johann M Cherian July 6 (Reuters) - Wall Street was set to open lower on Thursday as data signaling a resilient labor market and hawkish minutes of the Federal Reserve's June meeting fanned fears the central bank could keep interest rates higher for longer.
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2494.0
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2023-07-05 00:00:00 UTC
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American Airlines (AAL) Gains As Market Dips: What You Should Know
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https://www.nasdaq.com/articles/american-airlines-aal-gains-as-market-dips%3A-what-you-should-know-9
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In the latest trading session, American Airlines (AAL) closed at $18.32, marking a +1.22% move from the previous day. This change outpaced the S&P 500's 0.2% loss on the day. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 9.78%.
Heading into today, shares of the world's largest airline had gained 21.23% over the past month, outpacing the Transportation sector's gain of 10.25% and the S&P 500's gain of 4.16% in that time.
Wall Street will be looking for positivity from American Airlines as it approaches its next earnings report date. In that report, analysts expect American Airlines to post earnings of $1.53 per share. This would mark year-over-year growth of 101.32%. Our most recent consensus estimate is calling for quarterly revenue of $13.72 billion, up 2.2% from the year-ago period.
AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.98 per share and revenue of $52.96 billion. These results would represent year-over-year changes of +496% and +8.15%, respectively.
Any recent changes to analyst estimates for American Airlines should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 7.07% higher. American Airlines is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 6.07 right now. For comparison, its industry has an average Forward P/E of 11.91, which means American Airlines is trading at a discount to the group.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the latest trading session, American Airlines (AAL) closed at $18.32, marking a +1.22% move from the previous day. AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.98 per share and revenue of $52.96 billion. To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.
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In the latest trading session, American Airlines (AAL) closed at $18.32, marking a +1.22% move from the previous day. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.98 per share and revenue of $52.96 billion.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, American Airlines (AAL) closed at $18.32, marking a +1.22% move from the previous day. AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.98 per share and revenue of $52.96 billion.
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In the latest trading session, American Airlines (AAL) closed at $18.32, marking a +1.22% move from the previous day. AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.98 per share and revenue of $52.96 billion. To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.
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2495.0
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2023-07-05 00:00:00 UTC
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JetBlue decides not to appeal American Airlines alliance court ruling
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https://www.nasdaq.com/articles/jetblue-decides-not-to-appeal-american-airlines-alliance-court-ruling
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By Rajesh Kumar Singh
CHICAGO, July 5 (Reuters) - JetBlue Airways Corp JBLU.O said on Wednesday it will not appeal a U.S. judge's decision in May requiring it to end an alliance with American Airlines Group AAL.O.
The New York-based carrier said it will start unwinding the alliance to focus on its merger with Spirit Airlines SAVE.N.
U.S. District Judge Leo Sorokin in Boston on May 19 ordered JetBlue and American to end their "Northeast Alliance," saying the partnership "substantially" diminished competition in the domestic market. American is the largest U.S. airline by fleet size and low-cost carrier JetBlue is the sixth largest.
American on May 31 announced that it would appeal Sorokin's ruling - a position it reiterated on Wednesday.
The U.S. Justice Department sued in 2021 to undo the alliance announced the previous year. It called it a "de facto merger" of American and JetBlue operations in Boston and New York that removed incentives to compete and would end up costing consumers an additional $700 million a year to fly out of the region's busy airports.
The alliance allowed the carriers to coordinate flights and pool revenue. It also was a big piece of American's strategy to compete in the New York market, where it was losing money.
Since the partnership started, American has ceded domestic capacity out of New York to JetBlue. It has allowed American to move away from unprofitable routes while maintaining a presence in New York. The alliance also enables the airline to feed traffic to its global partners who fly into the region.
American and JetBlue airlines must end alliance, US judge rules
US judge delays American Airlines, JetBlue injunction date
American Airlines to appeal JetBlue alliance court ruling
(Reporting by Rajesh Kumar Singh Editing by Will Dunham and Chris Reese)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Rajesh Kumar Singh CHICAGO, July 5 (Reuters) - JetBlue Airways Corp JBLU.O said on Wednesday it will not appeal a U.S. judge's decision in May requiring it to end an alliance with American Airlines Group AAL.O. U.S. District Judge Leo Sorokin in Boston on May 19 ordered JetBlue and American to end their "Northeast Alliance," saying the partnership "substantially" diminished competition in the domestic market. It called it a "de facto merger" of American and JetBlue operations in Boston and New York that removed incentives to compete and would end up costing consumers an additional $700 million a year to fly out of the region's busy airports.
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By Rajesh Kumar Singh CHICAGO, July 5 (Reuters) - JetBlue Airways Corp JBLU.O said on Wednesday it will not appeal a U.S. judge's decision in May requiring it to end an alliance with American Airlines Group AAL.O. U.S. District Judge Leo Sorokin in Boston on May 19 ordered JetBlue and American to end their "Northeast Alliance," saying the partnership "substantially" diminished competition in the domestic market. American and JetBlue airlines must end alliance, US judge rules US judge delays American Airlines, JetBlue injunction date American Airlines to appeal JetBlue alliance court ruling (Reporting by Rajesh Kumar Singh Editing by Will Dunham and Chris Reese) ((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Rajesh Kumar Singh CHICAGO, July 5 (Reuters) - JetBlue Airways Corp JBLU.O said on Wednesday it will not appeal a U.S. judge's decision in May requiring it to end an alliance with American Airlines Group AAL.O. U.S. District Judge Leo Sorokin in Boston on May 19 ordered JetBlue and American to end their "Northeast Alliance," saying the partnership "substantially" diminished competition in the domestic market. American and JetBlue airlines must end alliance, US judge rules US judge delays American Airlines, JetBlue injunction date American Airlines to appeal JetBlue alliance court ruling (Reporting by Rajesh Kumar Singh Editing by Will Dunham and Chris Reese) ((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By Rajesh Kumar Singh CHICAGO, July 5 (Reuters) - JetBlue Airways Corp JBLU.O said on Wednesday it will not appeal a U.S. judge's decision in May requiring it to end an alliance with American Airlines Group AAL.O. American is the largest U.S. airline by fleet size and low-cost carrier JetBlue is the sixth largest. American on May 31 announced that it would appeal Sorokin's ruling - a position it reiterated on Wednesday.
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2496.0
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2023-07-05 00:00:00 UTC
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Why American Airlines (AAL) Could Beat Earnings Estimates Again
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https://www.nasdaq.com/articles/why-american-airlines-aal-could-beat-earnings-estimates-again
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Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering American Airlines (AAL), which belongs to the Zacks Transportation - Airline industry.
This world's largest airline has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 13.82%.
For the last reported quarter, American Airlines came out with earnings of $0.05 per share versus the Zacks Consensus Estimate of $0.04 per share, representing a surprise of 25%. For the previous quarter, the company was expected to post earnings of $1.14 per share and it actually produced earnings of $1.17 per share, delivering a surprise of 2.63%.
With this earnings history in mind, recent estimates have been moving higher for American Airlines. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
American Airlines currently has an Earnings ESP of +3.50%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It is worth considering American Airlines (AAL), which belongs to the Zacks Transportation - Airline industry. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
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It is worth considering American Airlines (AAL), which belongs to the Zacks Transportation - Airline industry. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
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It is worth considering American Airlines (AAL), which belongs to the Zacks Transportation - Airline industry. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. For the last reported quarter, American Airlines came out with earnings of $0.05 per share versus the Zacks Consensus Estimate of $0.04 per share, representing a surprise of 25%.
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It is worth considering American Airlines (AAL), which belongs to the Zacks Transportation - Airline industry. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. For the last reported quarter, American Airlines came out with earnings of $0.05 per share versus the Zacks Consensus Estimate of $0.04 per share, representing a surprise of 25%.
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2497.0
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2023-07-05 00:00:00 UTC
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Why American Airlines (AAL) is a Top Momentum Stock for the Long-Term
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https://www.nasdaq.com/articles/why-american-airlines-aal-is-a-top-momentum-stock-for-the-long-term
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores?
Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value Score
For value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth Score
Growth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum Score
Momentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM Score
If you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: American Airlines (AAL)
American Airlines Group Inc. was formed following the December 2013 merger between AMR (American Airlines' parent group, which was founded in 1934) and U.S. Airways. The merger, which occurred after a bankruptcy filing by American Airlines, resulted in the formation of the largest airline internationally. American Airlines Group is headquartered in Fort Worth, TX.
AAL is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Transportation stock. AAL has a Momentum Style Score of B, and shares are up 21.2% over the past four weeks.
Eight analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.45 to $2.98 per share. AAL boasts an average earnings surprise of 12.9%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, AAL should be on investors' short list.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stock to Watch: American Airlines (AAL) American Airlines Group Inc. was formed following the December 2013 merger between AMR (American Airlines' parent group, which was founded in 1934) and U.S. Airways. AAL is a #3 (Hold) on the Zacks Rank, with a VGM Score of A. AAL has a Momentum Style Score of B, and shares are up 21.2% over the past four weeks.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Stock to Watch: American Airlines (AAL) American Airlines Group Inc. was formed following the December 2013 merger between AMR (American Airlines' parent group, which was founded in 1934) and U.S. Airways. AAL is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
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Stock to Watch: American Airlines (AAL) American Airlines Group Inc. was formed following the December 2013 merger between AMR (American Airlines' parent group, which was founded in 1934) and U.S. Airways. AAL is a #3 (Hold) on the Zacks Rank, with a VGM Score of A. AAL has a Momentum Style Score of B, and shares are up 21.2% over the past four weeks.
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Stock to Watch: American Airlines (AAL) American Airlines Group Inc. was formed following the December 2013 merger between AMR (American Airlines' parent group, which was founded in 1934) and U.S. Airways. AAL is a #3 (Hold) on the Zacks Rank, with a VGM Score of A. AAL has a Momentum Style Score of B, and shares are up 21.2% over the past four weeks.
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2498.0
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2023-07-05 00:00:00 UTC
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Goldman Adds Southwest Airlines To "Conviction" List, Value Play?
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https://www.nasdaq.com/articles/goldman-adds-southwest-airlines-to-conviction-list-value-play
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When it comes to the world of airlines, most - if not all - of underlying earnings and operating profits are too volatile for the typical investor's stomach. Financials throughout companies like American Airlines (NASDAQ: AAL), Delta Airlines (NYSE: DAL), and even United Airlines (NYSE: UAL) will show a widened range of earnings per share and a few losing years as well.
One airline sporting an impeccable earnings record, one that can be considered among the best managed in the industry, is Southwest Airlines (NYSE: LUV). Southwest financials will show consistently growing earnings with low volatility; it took a global pandemic for the company to post its first losing year as a result of an event completely unrelated to the business model.
Southwest stock has been trading within a deep bearish territory since its last high of $64.55 in 2021. Today, these discounts would allow investors to acquire an industry leader - financially speaking - within critical technical levels. When titans of industry like The Goldman Sachs Group (NYSE: GS) speak, markets tend to listen and act closely around what is being said. Goldman has put out its 'Conviction' list for the year, composed of companies that analysts expect to outperform both the market and their respective sectors; Southwest Airlines earned its rightful spot in this list.
Relative Trends
Investors can look at Southwest's profitability trends showcased during the past eight years; breaking down operating and net margins since 2015 can paint a more robust picture of where the company may be headed next. From 2015 to 2019, Southwest carried a 15% to 20% operating margin and a 10% to 15% net margin. As of the past twelve months, these margins have declined to all-time lows of 3.6% and 2.7% for operating and net, respectively, creating the foundation for a massive 'return to normal operations' value play.
Southwest has also been the lowest-performing stock in the group, falling behind the likes of American and Delta by as much as 60.4% during the past twelve months. Such a wide performance gap could turn some investors away from purchasing in Southwest. However, the broader market perception will show a different dynamic for those questioning the airline's future.
Now that the effects of the COVID-19 pandemic reside, the airline sector is poised to rise back to normalized valuations. However, Southwest is undoubtedly expected to outperform the group in the coming months.
When comparing traditional valuation metrics, such as the price-to-earnings ratio, investors will notice a significant disconnect between the stock price performance and these valuation multiples. While Southwest underperformed its peers the past year, it carries the higher P/E valuation in this list, selling today for a hefty 37.3x multiple.
This only makes it the more expensive alternative for industry exposure. However, these valuations can imply a completely different view. As markets are willing to pay more for each dollar of current - and future - earnings in Southwest, investors can assume that the quality of these earnings is seen as superior compared to peers, thus a reason to seriously consider the outperformance case poised by Goldman.
Where is the Valuation
Considering that Southwest stock reached its last high in 2021, Wall Street may be heavily emphasizing the most proximate 'Bear Market' marker, defined as a 20% retracement from such a high. The stock reached $64.55, making the bear marker a price of $51.64, representing a historically heavily traded range.
As the stock bottomed around the $30 to $35 per share range, falling within the Fibonacci 'golden ratio' retracement of 62% to 78%, investors can ride the following bear run at one of the most attractive valuations. The company has announced its earnings release date to be on July 27th. Hence, investors now have a proper catalyst to look forward to driving the price higher.
Southwest analyst ratings also suggest similar ranges and trends, as there is a current consensus set for $44.71 as an initial price target. The top-side price target would point to $63.00 per share, which may be the final destination after the underlying company's earnings normalize to previous levels. Historically, Southwest earned investors between $3.0 and $5.0 per share when margins hovered typically. Assuming that EPS can return to normal ranges, a $60 per share price target seems reasonable.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Financials throughout companies like American Airlines (NASDAQ: AAL), Delta Airlines (NYSE: DAL), and even United Airlines (NYSE: UAL) will show a widened range of earnings per share and a few losing years as well. Southwest financials will show consistently growing earnings with low volatility; it took a global pandemic for the company to post its first losing year as a result of an event completely unrelated to the business model. When titans of industry like The Goldman Sachs Group (NYSE: GS) speak, markets tend to listen and act closely around what is being said.
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Financials throughout companies like American Airlines (NASDAQ: AAL), Delta Airlines (NYSE: DAL), and even United Airlines (NYSE: UAL) will show a widened range of earnings per share and a few losing years as well. Goldman has put out its 'Conviction' list for the year, composed of companies that analysts expect to outperform both the market and their respective sectors; Southwest Airlines earned its rightful spot in this list. The stock reached $64.55, making the bear marker a price of $51.64, representing a historically heavily traded range.
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Financials throughout companies like American Airlines (NASDAQ: AAL), Delta Airlines (NYSE: DAL), and even United Airlines (NYSE: UAL) will show a widened range of earnings per share and a few losing years as well. Goldman has put out its 'Conviction' list for the year, composed of companies that analysts expect to outperform both the market and their respective sectors; Southwest Airlines earned its rightful spot in this list. As markets are willing to pay more for each dollar of current - and future - earnings in Southwest, investors can assume that the quality of these earnings is seen as superior compared to peers, thus a reason to seriously consider the outperformance case poised by Goldman.
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Financials throughout companies like American Airlines (NASDAQ: AAL), Delta Airlines (NYSE: DAL), and even United Airlines (NYSE: UAL) will show a widened range of earnings per share and a few losing years as well. Goldman has put out its 'Conviction' list for the year, composed of companies that analysts expect to outperform both the market and their respective sectors; Southwest Airlines earned its rightful spot in this list. The stock reached $64.55, making the bear marker a price of $51.64, representing a historically heavily traded range.
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2499.0
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2023-07-03 00:00:00 UTC
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De Beers-Botswana deal signals rocky road for rough diamonds
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AAL
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https://www.nasdaq.com/articles/de-beers-botswana-deal-signals-rocky-road-for-rough-diamonds
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nan
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nan
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By Felix Njini and Clara Denina
NAIROBI/LONDON, July 3 (Reuters) - An eleventh-hour deal between Botswana and De Beers over the weekend demonstrates the pressure the 135-year-old gems producer is under as it resets ties with its leading supplier amid pressure from falling prices and growing competition.
Both parties potentially had a lot to lose if talks broke down. While Botswana supplies 70% of De Beers' rough diamonds, diamond sales account for two-thirds of Botswana's foreign currency receipts, and a fifth of its gross domestic product.
Nonetheless, as the deadline for a new sales deal closed in, President Mokgweetsi Masisi publicly threatened to torpedo Botswana's 54-year ties with De Beers unless it ceded a bigger share of rough stones to the state.
It sounded like populist rhetoric in a high-stakes negotiation - until the global diamond miner caved in.
"There was... a desire to cooperate and reach a deal. The opposite would have been very damaging for everyone concerned, for our industry," De Beers CEO Al Cook, who took the helm of the company in February, told Reuters on Monday.
The company, along with the rest of the global diamond sector, is facing headwinds from a 6.5% drop in diamond prices in the year to date, and a loss of market share to synthetic diamonds.
Western customers seeking assurances that purchases do not come from Russia, where the other main producer Alrosa ALRS.MM is headquartered, also worked strongly in Botswana's favour in the talks.
That helped the country wring handsome concessions from De Beers, including an increase in its share of diamond production from their Debswana joint venture to 30% in the near term and 50% by 2033, from 25% currently.
Botswana had already increased its share of gems from Debswana - sales of which stood at $4.588 billion in 2022 compared with $3.466 billion in 2021 - from 10% in 2011 to 25% in 2020.
In addition, the world's number one producing country by value secured multi-billion dollar spending commitments to extend the life of its giant Jwaneng diamond mine, one of the world's richest.
Analysts said the agreement weakens the investment case for the Anglo American AAL.L-owned gems miner.
"With the mines going deeper and capital operating costs significantly increasing, the investment required by De Beers for only 19.2% of the profits makes this partnership no longer the dripping roast it once was," Richard Chetwode, a diamonds industry analyst said.
"Without diamond price upside, this deal makes the investment much more marginal," he said.
Analysts at RMB Morgan Stanley said the pact could result in a $100 million hit on DeBeers' core earnings. Over a decade, the impact on its finances may reach $200 million, or 15% of total earnings before interest, tax, depreciation and amortisation, they said.
"The agreement removes prospects of a protracted dispute and an eventual bear-case scenario that could undermine the economics of De Beers' Botswana business altogether," RMB Morgan said.
"Nonetheless, the outcome of these discussions is likely to result in additional value leakage."
Cook, who said some analysts had misinterpreted the details of the deal, defended it.
"We had to do two things," he said. "Make sure we got what we needed - and make sure that we got Botswana what it needed." The deal achieved both, he said.
(Reporting by Felix Njini and Clara Denina; Editing by Veronica Brown and Jan Harvey)
((Felix.Njini@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Analysts said the agreement weakens the investment case for the Anglo American AAL.L-owned gems miner. Nonetheless, as the deadline for a new sales deal closed in, President Mokgweetsi Masisi publicly threatened to torpedo Botswana's 54-year ties with De Beers unless it ceded a bigger share of rough stones to the state. "With the mines going deeper and capital operating costs significantly increasing, the investment required by De Beers for only 19.2% of the profits makes this partnership no longer the dripping roast it once was," Richard Chetwode, a diamonds industry analyst said.
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Analysts said the agreement weakens the investment case for the Anglo American AAL.L-owned gems miner. By Felix Njini and Clara Denina NAIROBI/LONDON, July 3 (Reuters) - An eleventh-hour deal between Botswana and De Beers over the weekend demonstrates the pressure the 135-year-old gems producer is under as it resets ties with its leading supplier amid pressure from falling prices and growing competition. While Botswana supplies 70% of De Beers' rough diamonds, diamond sales account for two-thirds of Botswana's foreign currency receipts, and a fifth of its gross domestic product.
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Analysts said the agreement weakens the investment case for the Anglo American AAL.L-owned gems miner. By Felix Njini and Clara Denina NAIROBI/LONDON, July 3 (Reuters) - An eleventh-hour deal between Botswana and De Beers over the weekend demonstrates the pressure the 135-year-old gems producer is under as it resets ties with its leading supplier amid pressure from falling prices and growing competition. While Botswana supplies 70% of De Beers' rough diamonds, diamond sales account for two-thirds of Botswana's foreign currency receipts, and a fifth of its gross domestic product.
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Analysts said the agreement weakens the investment case for the Anglo American AAL.L-owned gems miner. "Without diamond price upside, this deal makes the investment much more marginal," he said. Analysts at RMB Morgan Stanley said the pact could result in a $100 million hit on DeBeers' core earnings.
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