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2500.0
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2023-07-03 00:00:00 UTC
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Airlines' Bullish Q2 Outlook Implies More Upside Potential
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AAL
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https://www.nasdaq.com/articles/airlines-bullish-q2-outlook-implies-more-upside-potential
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nan
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nan
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The second-quarter 2023 earnings cycle is scheduled to start shortly for players in the Zacks Airline industry. Airlines are expected to perform well in the June quarter, driven by increased passenger volumes and declining fuel costs.
Given the current scenario of buoyant air-travel demand (both domestic and international), the Zacks Airline industry has been soaring high. Notably, the Zacks Airline industry has risen 36% so far this year, outperforming the 10.9% growth of the broader Zacks Transportation sector and 16.9% rise of the Zacks S&P 500 composite.
Image Source: Zacks Investment Research
People booking flights is leading to higher passenger revenues and contributing to most airlines’ top line. Driven by increased passenger revenues, the financial health of airlines has improved. We believe that the current summer season is likely to see a further surge in passenger revenues, in turn, aiding airlines’ top lines.
Moreover, the lifting of restrictions under the CARES Act has allowed airline companies to initiate shareholder-friendly activities (like dividend payouts or share repurchases), highlighting their pro-shareholder stance.
Given this encouraging backdrop, we present three airline stocks, Delta Air Lines, Inc. DAL, American Airlines Group Inc. AAL and Southwest Airlines LUV, which have provided their updated second-quarter 2023 guidance.
Each of these stocks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
All the abovementioned stocks have gained with respect to price in the year-to-date period.
Image Source: Zacks Investment Research
Revised Q2 Projections
Delta Air Lines’ management has issued a favorable outlook for the second quarter and full-year 2023 at the company’s Investor Day presentation. The company attributes this positive outlook to strong air-travel demand.
For second-quarter 2023, Delta now expects adjusted earnings per share (EPS) to be in the range of $2.25 to $2.50 (prior view: $2-$2.25). Further, DAL now anticipates registering revenue growth between 17% and 18%, higher than the previous range of 15% to 17%. Operating margin for the second quarter is expected to be 16%.
For 2023, Delta also raised its outlook. DAL now anticipates full-year adjusted earnings to be $6 per share, which aligns with the top end of its previous expectation in the $5-$6 range. The Zacks Consensus Estimate for current-year earnings is currently pegged at $5.97 per share.
DAL has also raised its revenue growth outlook to a range of 17% to 20% compared with the earlier forecast of 15% to 20% increase. In 2023, Delta now expects to generate free cash of $3 billion (prior view: $2 billion). The company now expects current-year operating margin at the top end of the 10-12% range expected previously.
For fiscal 2024, the airline still expects EPS to exceed $7 and a free cash flow of more than $4 billion. It also foresees an operating margin of 13% to 15%.
Driven by upbeat demand, American Airlines lifted its second-quarter EPS (excluding net special items) view in the $1.45-$1.65 range (earlier guidance: $1.20-$1.40). The adjusted operating margin is now anticipated in the 12.5-14.5% band (earlier guidance:11-13%). Average fuel cost per gallon is now expected in the range of $2.55-$2.65 (earlier guidance: $2.65-$2.75).
AAL now expects total revenue per available seat miles (a measure of unit revenue) to decline 1%-3% from second-quarter 2022 actuals (the earlier estimate was for a 2-4% decline).
Non-fuel unit costs are still expected to increase 3.5-5.5% year over year. Available seat miles (a measure of capacity) are still estimated to increase 3.5-5.5% year over year.
For 2023, AAL has reinstated its outlook. Management still expects available seat miles to increase 5-8% year over year. Our model estimates an increase of 6.1% year over year. Non-fuel unit costs are still expected to increase 2-5% year over year. Our estimate hints at a 3.4% year-over-year increase.
AAL still expects EPS (excluding net special items) in the $2.50-$3.50 range. The Zacks Consensus Estimate is currently pegged at $2.98.
For second-quarter 2023, Southwest Airlines now expects revenue per available seat mile to be down 8-10% (prior view: down 8-11%). Capacity or available seat miles are still estimated to improve 14% from the year-ago reported figure.
Economic fuel costs per gallon is now expected to be $2.55 (prior view: $2.45 - $2.55). LUV continues to expect consolidated unit cost or cost per available seat mile, excluding fuel, oil and profit-sharing expenses, and special items, to increase 5-8% in the second quarter from the comparable period in 2022. Interest expenses are still expected to be $65 million in the second quarter.
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
Southwest Airlines Co. (LUV) : 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 encouraging backdrop, we present three airline stocks, Delta Air Lines, Inc. DAL, American Airlines Group Inc. AAL and Southwest Airlines LUV, which have provided their updated second-quarter 2023 guidance. AAL now expects total revenue per available seat miles (a measure of unit revenue) to decline 1%-3% from second-quarter 2022 actuals (the earlier estimate was for a 2-4% decline). For 2023, AAL has reinstated its outlook.
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Given this encouraging backdrop, we present three airline stocks, Delta Air Lines, Inc. DAL, American Airlines Group Inc. AAL and Southwest Airlines LUV, which have provided their updated second-quarter 2023 guidance. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. AAL now expects total revenue per available seat miles (a measure of unit revenue) to decline 1%-3% from second-quarter 2022 actuals (the earlier estimate was for a 2-4% decline).
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Given this encouraging backdrop, we present three airline stocks, Delta Air Lines, Inc. DAL, American Airlines Group Inc. AAL and Southwest Airlines LUV, which have provided their updated second-quarter 2023 guidance. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. AAL now expects total revenue per available seat miles (a measure of unit revenue) to decline 1%-3% from second-quarter 2022 actuals (the earlier estimate was for a 2-4% decline).
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Given this encouraging backdrop, we present three airline stocks, Delta Air Lines, Inc. DAL, American Airlines Group Inc. AAL and Southwest Airlines LUV, which have provided their updated second-quarter 2023 guidance. AAL now expects total revenue per available seat miles (a measure of unit revenue) to decline 1%-3% from second-quarter 2022 actuals (the earlier estimate was for a 2-4% decline). For 2023, AAL has reinstated its outlook.
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2501.0
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2023-07-03 00:00:00 UTC
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Should You Invest in the U.S. Global Jets ETF (JETS)?
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AAL
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https://www.nasdaq.com/articles/should-you-invest-in-the-u.s.-global-jets-etf-jets-8
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nan
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nan
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Designed to provide broad exposure to the Industrials - Transportation/Shipping segment of the equity market, the U.S. Global Jets ETF (JETS) is a passively managed exchange traded fund launched on 04/30/2015.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Transportation/Shipping is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.
Index Details
The fund is sponsored by U.S. Global Investors. It has amassed assets over $1.94 billion, making it one of the largest ETFs attempting to match the performance of the Industrials - Transportation/Shipping segment of the equity market. JETS seeks to match the performance of the U.S. Global Jets Index before fees and expenses.
The U.S. Global Jets Index tracks the performance of Airline Companies across the globe with an emphasis on domestic passenger airlines.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Looking at individual holdings, Southwest Airls Co (LUV) accounts for about 11.46% of total assets, followed by American Airls Group Inc (AAL) and Delta Air Lines Inc Del (DAL).
The top 10 holdings account for about 63.27% of total assets under management.
Performance and Risk
The ETF return is roughly 25.41% and it's up approximately 29.82% so far this year and in the past one year (as of 07/03/2023), respectively. JETS has traded between $15.01 and $21.42 during this last 52-week period.
The ETF has a beta of 1.38 and standard deviation of 34.91% for the trailing three-year period, making it a high risk choice in the space. With about 47 holdings, it has more concentrated exposure than peers.
Alternatives
U.S. Global Jets ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, JETS is a sufficient option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
SPDR S&P Transportation ETF (XTN) tracks S&P Transportation Select Industry Index and the iShares U.S. Transportation ETF (IYT) tracks Dow Jones Transportation Average Index. SPDR S&P Transportation ETF has $242.06 million in assets, iShares U.S. Transportation ETF has $974.30 million. XTN has an expense ratio of 0.35% and IYT charges 0.39%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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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
U.S. Global Jets ETF (JETS): ETF Research Reports
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
iShares U.S. Transportation ETF (IYT): ETF Research Reports
SPDR S&P Transportation ETF (XTN): 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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Looking at individual holdings, Southwest Airls Co (LUV) accounts for about 11.46% of total assets, followed by American Airls Group Inc (AAL) and Delta Air Lines Inc Del (DAL). Global Jets ETF (JETS): ETF Research Reports Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report iShares U.S. Transportation ETF (IYT): ETF Research Reports SPDR S&P Transportation ETF (XTN): ETF Research Reports To read this article on Zacks.com click here. It has amassed assets over $1.94 billion, making it one of the largest ETFs attempting to match the performance of the Industrials - Transportation/Shipping segment of the equity market.
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Looking at individual holdings, Southwest Airls Co (LUV) accounts for about 11.46% of total assets, followed by American Airls Group Inc (AAL) and Delta Air Lines Inc Del (DAL). Global Jets ETF (JETS): ETF Research Reports Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report iShares U.S. Transportation ETF (IYT): ETF Research Reports SPDR S&P Transportation ETF (XTN): ETF Research Reports To read this article on Zacks.com click here. SPDR S&P Transportation ETF (XTN) tracks S&P Transportation Select Industry Index and the iShares U.S. Transportation ETF (IYT) tracks Dow Jones Transportation Average Index.
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Global Jets ETF (JETS): ETF Research Reports Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report iShares U.S. Transportation ETF (IYT): ETF Research Reports SPDR S&P Transportation ETF (XTN): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Southwest Airls Co (LUV) accounts for about 11.46% of total assets, followed by American Airls Group Inc (AAL) and Delta Air Lines Inc Del (DAL). SPDR S&P Transportation ETF (XTN) tracks S&P Transportation Select Industry Index and the iShares U.S. Transportation ETF (IYT) tracks Dow Jones Transportation Average Index.
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Global Jets ETF (JETS): ETF Research Reports Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report iShares U.S. Transportation ETF (IYT): ETF Research Reports SPDR S&P Transportation ETF (XTN): ETF Research Reports To read this article on Zacks.com click here. Looking at individual holdings, Southwest Airls Co (LUV) accounts for about 11.46% of total assets, followed by American Airls Group Inc (AAL) and Delta Air Lines Inc Del (DAL). JETS seeks to match the performance of the U.S.
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2502.0
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2023-07-02 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-12
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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 NASDAQ 100 Stocks
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
High Shareholder Yield 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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2503.0
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2023-06-30 00:00:00 UTC
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Botswana signs new diamond sales deal with De Beers
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AAL
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https://www.nasdaq.com/articles/botswana-signs-new-diamond-sales-deal-with-de-beers
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nan
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nan
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By Brian Benza
June 30 (Reuters) - Botswana and De Beers have signed a new diamond sales deal which gives the African country a bigger share of rough stones from their joint venture, the Botswana government and the mining company said on Friday.
The government and De Beers agreed on a new 10-year sales deal for Debswana’s rough diamond production through to 2033, and new 25-year Debswana mining licences through to 2054.
Debswana, a joint venture between Anglo American AAL.L unit De Beers and Botswana's government, sells 75% of its output to De Beers, with the balance taken up by state-owned Okavango Diamond Co.
"While the partners finalise the implementation of the formal sales and mining agreements, an interim agreement will preserve the terms of the most recent sales agreement which expired on 30 June," the parties said in a joint statement.
In the run-up to Friday's deal, Botswana President Mokgweetsi Masisi, who is expected to seek re-election next year, had pushed De Beers for a bigger share of Debswana's output.
In March, Botswana announced it would take a 24% stake in Belgian gem processing firm HB Antwerp in a move seen as designed to loosen De Beers' grip on the country's gems.
Botswana’s state-owned diamond trading company, Okavango Diamond Company (ODC), would also enter into a five-year agreement to supply rough diamonds to HB Antwerp as part of the deal.
Debswana's diamond sales hit a record $4.588 billion last year, compared to $3.466 billion in 2021.
Diamond sales, almost entirely from Debswana, account for two-thirds of Botswana's foreign currency receipts and a fifth of its gross domestic product.
Botswana supplies 70% of De Beers' rough diamonds.
(Additional reporting by Felix Njini in Nairobi, Nelson Banya in Harare and Nilutpal Timsina; Editing by Leslie Adler and Cynthia Osterman)
((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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Debswana, a joint venture between Anglo American AAL.L unit De Beers and Botswana's government, sells 75% of its output to De Beers, with the balance taken up by state-owned Okavango Diamond Co. "While the partners finalise the implementation of the formal sales and mining agreements, an interim agreement will preserve the terms of the most recent sales agreement which expired on 30 June," the parties said in a joint statement. In the run-up to Friday's deal, Botswana President Mokgweetsi Masisi, who is expected to seek re-election next year, had pushed De Beers for a bigger share of Debswana's output. Diamond sales, almost entirely from Debswana, account for two-thirds of Botswana's foreign currency receipts and a fifth of its gross domestic product.
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Debswana, a joint venture between Anglo American AAL.L unit De Beers and Botswana's government, sells 75% of its output to De Beers, with the balance taken up by state-owned Okavango Diamond Co. "While the partners finalise the implementation of the formal sales and mining agreements, an interim agreement will preserve the terms of the most recent sales agreement which expired on 30 June," the parties said in a joint statement. By Brian Benza June 30 (Reuters) - Botswana and De Beers have signed a new diamond sales deal which gives the African country a bigger share of rough stones from their joint venture, the Botswana government and the mining company said on Friday. Botswana’s state-owned diamond trading company, Okavango Diamond Company (ODC), would also enter into a five-year agreement to supply rough diamonds to HB Antwerp as part of the deal.
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Debswana, a joint venture between Anglo American AAL.L unit De Beers and Botswana's government, sells 75% of its output to De Beers, with the balance taken up by state-owned Okavango Diamond Co. "While the partners finalise the implementation of the formal sales and mining agreements, an interim agreement will preserve the terms of the most recent sales agreement which expired on 30 June," the parties said in a joint statement. By Brian Benza June 30 (Reuters) - Botswana and De Beers have signed a new diamond sales deal which gives the African country a bigger share of rough stones from their joint venture, the Botswana government and the mining company said on Friday. Botswana’s state-owned diamond trading company, Okavango Diamond Company (ODC), would also enter into a five-year agreement to supply rough diamonds to HB Antwerp as part of the deal.
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Debswana, a joint venture between Anglo American AAL.L unit De Beers and Botswana's government, sells 75% of its output to De Beers, with the balance taken up by state-owned Okavango Diamond Co. "While the partners finalise the implementation of the formal sales and mining agreements, an interim agreement will preserve the terms of the most recent sales agreement which expired on 30 June," the parties said in a joint statement. By Brian Benza June 30 (Reuters) - Botswana and De Beers have signed a new diamond sales deal which gives the African country a bigger share of rough stones from their joint venture, the Botswana government and the mining company said on Friday. The government and De Beers agreed on a new 10-year sales deal for Debswana’s rough diamond production through to 2033, and new 25-year Debswana mining licences through to 2054.
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2504.0
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2023-06-30 00:00:00 UTC
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Fresh flight disruptions threaten US Fourth of July holiday weekend travel
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AAL
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https://www.nasdaq.com/articles/fresh-flight-disruptions-threaten-us-fourth-of-july-holiday-weekend-travel
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nan
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nan
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By Doyinsola Oladipo and Rajesh Kumar Singh
NEW YORK, June 30 (Reuters) - The number of people traveling by air in the United States for the Fourth of July holiday is expected to surpass pre-COVID levels for the first time in four years, but recent flight disruptions raise fresh questions about airlines' readiness to handle the summer travel rush.
In anticipation of a busy summer, U.S. airlines have taken measures like trimming schedules and beefing up staffing to prevent large-scale flight disruptions, though inclement weather in some regions presents a risk to travelers during the period.
Despite signs of slowing consumer spending, about 51 million Americans will travel 50 miles or more from home between Friday, June 30 and Tuesday, July 4, according to travel group AAA. This is about a 4% increase from 2019 levels, the current record year for July 4th travel.
The AAA estimates do not include Thursday, June 29, which the Federal Aviation Administration expects to be the busiest day of air travel during the holiday weekend.
The U.S. Transportation Security Administration said it screened 2.7 million passengers on Thursday, up 32% from 2019.
Last weekend, thunderstorms and failing equipment at an FAA facility in the Washington area created significant delays for air travelers on the U.S. East Coast.
About 43,000 flights were delayed and over 7,700 were canceled between Saturday, June 24, and Thursday, June 29, according to flight tracking service FlightAware.
United Airlines UAL.O bore the brunt of the disruptions, with about 19% of its scheduled flights canceled and about 47% delayed.
The Chicago-based carrier said its operations were beginning to see improvement. While the cancellations on Thursday were fewer than those in previous days in the week, United still scrapped 18% of its flights, data from FlightAware showed.
The disruptions have left passengers fuming, with many United customers venting frustration on social media about long lines, delays in rebooking flights and misplaced luggage.
The carrier has been apologizing to customers on Twitter for delays in responding to complaints, citing high call volumes.
"It's all-hands-on-deck as our pilots get aircraft moving, contact center teams work overtime to take care of our customers, and our airport customer service staff works tirelessly to deliver bags and board flights," United said in a statement.
U.S. Transportation Secretary Pete Buttigieg has called the summer travel season a "stress test" for airline operations.
"Nobody can control the weather, but it is important for airlines to create enough cushion in resilience in the system," Buttigieg told CNN.
United CEO Scott Kirby, however, has blamed the Federal Aviation Administration for making the situation worse. In a staff memo, he said over 150,000 United customers were affected last weekend because of FAA staffing issues and its impact on managing traffic.
Still, the airline has said it would be "on track" to restore operations for the holiday weekend when it expects 5 million people to fly with it. Its bookings are up about 12% from last year and have nearly rebounded to pre-pandemic levels.
American Airlines AAL.O expects nearly 3 million customers from Friday, June 30, through Tuesday, July 4, across more than 26,000 scheduled flights.
Travel spending has held up nationwide, and air carriers expect strong results through 2023, which comes against a backdrop of U.S. consumer confidence rising in June to its highest level in nearly 1-1/2 years.
AAA expects 43 million people will drive to their destinations, a 4% increase from 2019 levels.
Other modes of travel still have not reached pre-pandemic levels. The travel group expects about 3 million people will travel by bus, cruise liner, or train over the long weekend, up 24% from last year but 5% lower than 2019 levels.
(Reporting by Doyinsola Oladipo in New York and by Rajesh Kumar Singh in Chicago; editing by Deepa Babington and Jonathan Oatis)
((Doyinsola.Oladipo@thomsonreuters.com; +18623846440; https://www.linkedin.com/in/doyinsolaoladipo/;))
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 expects nearly 3 million customers from Friday, June 30, through Tuesday, July 4, across more than 26,000 scheduled flights. In anticipation of a busy summer, U.S. airlines have taken measures like trimming schedules and beefing up staffing to prevent large-scale flight disruptions, though inclement weather in some regions presents a risk to travelers during the period. The disruptions have left passengers fuming, with many United customers venting frustration on social media about long lines, delays in rebooking flights and misplaced luggage.
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American Airlines AAL.O expects nearly 3 million customers from Friday, June 30, through Tuesday, July 4, across more than 26,000 scheduled flights. By Doyinsola Oladipo and Rajesh Kumar Singh NEW YORK, June 30 (Reuters) - The number of people traveling by air in the United States for the Fourth of July holiday is expected to surpass pre-COVID levels for the first time in four years, but recent flight disruptions raise fresh questions about airlines' readiness to handle the summer travel rush. About 43,000 flights were delayed and over 7,700 were canceled between Saturday, June 24, and Thursday, June 29, according to flight tracking service FlightAware.
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American Airlines AAL.O expects nearly 3 million customers from Friday, June 30, through Tuesday, July 4, across more than 26,000 scheduled flights. By Doyinsola Oladipo and Rajesh Kumar Singh NEW YORK, June 30 (Reuters) - The number of people traveling by air in the United States for the Fourth of July holiday is expected to surpass pre-COVID levels for the first time in four years, but recent flight disruptions raise fresh questions about airlines' readiness to handle the summer travel rush. Despite signs of slowing consumer spending, about 51 million Americans will travel 50 miles or more from home between Friday, June 30 and Tuesday, July 4, according to travel group AAA.
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American Airlines AAL.O expects nearly 3 million customers from Friday, June 30, through Tuesday, July 4, across more than 26,000 scheduled flights. The AAA estimates do not include Thursday, June 29, which the Federal Aviation Administration expects to be the busiest day of air travel during the holiday weekend. United Airlines UAL.O bore the brunt of the disruptions, with about 19% of its scheduled flights canceled and about 47% delayed.
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2505.0
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2023-06-30 00:00:00 UTC
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Airline stocks set for best month in two years on summer rush, lower fuel prices
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AAL
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https://www.nasdaq.com/articles/airline-stocks-set-for-best-month-in-two-years-on-summer-rush-lower-fuel-prices
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By Medha Singh
June 30 (Reuters) - U.S. airline stocks on Friday were set to record their strongest monthly performance since 2021, helped by easing fuel prices and signs of robust travel demand during the summer season.
The rebound in travel spending after the pandemic has held up despite rising inflation and signs of a slowing economy, with the number of Americans traveling by air for the Fourth of July holiday expected to surpass previous record from four years ago.
The outlook for the rest of summer months is also bright. A record 256.8 million passengers will fly in the June-August quarter, up 1% from the same period in 2019, industry group Airlines for America estimated.
"Higher stock markets and returns on money market funds could be boosting the spending power of those lucky enough to have such assets," said AJ Bell Investment Director Russ Mould.
The S&P 1500 airlines .SPCOMAIR has jumped 21.3% so far in June, the highest since February 2021 and far ahead of the S&P 500's .SPX 5.2% rise.
Delta Air LinesDAL.N lifted its quarterly profit outlook and forecast upbeat annual earnings this week, while United AirlinesUAL.O CEO said in early June the United States is in a "business recession", but the consumer is "strong".
Raymond James and Bank of America raised their 2023 forecasts for U.S. carriers in their coverage this week to account for a fall in fuel costs at the end of the quarter.
However, Raymond James analyst Savanthi Syth expects air travel demand to moderate in the second half, given the high level of uncertainty and limited visibility into the fall.
Shares of United Airlines and Delta trade 5.2 and 7.0 times forward profit estimates, respectively, well below S&P 500's .SPX multiple at 19.1. Despite the discounted valuations, the strong rally has drawn interest from some bearish investors.
"All the travel related names are trading like AI stocks, and they aren't," said Matthew Tuttle, CEO of Tuttle Capital Management, adding that he would be looking for opportunities to short them.
Meanwhile, electric air taxi Joby Aviation JOBY.O surged 58% this week and was set for its best weekly performance after U.S. aviation regulator's nod for flight testing drew individual investors.
Joby was the third most-traded stock by retail investors in Thursday's session, according to J.P. Morgan data.
Airlines outperform SPX YTD https://tmsnrt.rs/3CVLodO
(Reporting by Medha Singh in Bengaluru; Editing by Arun Koyyur)
((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; Twitter: https://twitter.com/medhasinghs;))
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 Medha Singh June 30 (Reuters) - U.S. airline stocks on Friday were set to record their strongest monthly performance since 2021, helped by easing fuel prices and signs of robust travel demand during the summer season. Raymond James and Bank of America raised their 2023 forecasts for U.S. carriers in their coverage this week to account for a fall in fuel costs at the end of the quarter. However, Raymond James analyst Savanthi Syth expects air travel demand to moderate in the second half, given the high level of uncertainty and limited visibility into the fall.
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By Medha Singh June 30 (Reuters) - U.S. airline stocks on Friday were set to record their strongest monthly performance since 2021, helped by easing fuel prices and signs of robust travel demand during the summer season. Delta Air LinesDAL.N lifted its quarterly profit outlook and forecast upbeat annual earnings this week, while United AirlinesUAL.O CEO said in early June the United States is in a "business recession", but the consumer is "strong". However, Raymond James analyst Savanthi Syth expects air travel demand to moderate in the second half, given the high level of uncertainty and limited visibility into the fall.
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By Medha Singh June 30 (Reuters) - U.S. airline stocks on Friday were set to record their strongest monthly performance since 2021, helped by easing fuel prices and signs of robust travel demand during the summer season. The rebound in travel spending after the pandemic has held up despite rising inflation and signs of a slowing economy, with the number of Americans traveling by air for the Fourth of July holiday expected to surpass previous record from four years ago. Delta Air LinesDAL.N lifted its quarterly profit outlook and forecast upbeat annual earnings this week, while United AirlinesUAL.O CEO said in early June the United States is in a "business recession", but the consumer is "strong".
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By Medha Singh June 30 (Reuters) - U.S. airline stocks on Friday were set to record their strongest monthly performance since 2021, helped by easing fuel prices and signs of robust travel demand during the summer season. The rebound in travel spending after the pandemic has held up despite rising inflation and signs of a slowing economy, with the number of Americans traveling by air for the Fourth of July holiday expected to surpass previous record from four years ago. Raymond James and Bank of America raised their 2023 forecasts for U.S. carriers in their coverage this week to account for a fall in fuel costs at the end of the quarter.
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2506.0
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2023-06-30 00:00:00 UTC
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Airline Stocks Soar; Analysts Most Bullish on DAL, ULCC
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AAL
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https://www.nasdaq.com/articles/airline-stocks-soar-analysts-most-bullish-on-dal-ulcc
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nan
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nan
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Airline stocks have rebounded strongly from their lows, reflecting stellar air travel demand. While shares of several airline companies have outperformed the broader markets this year, the Transportation Security Administration (TSA) anticipates passenger volumes to surpass pre-COVID levels during this summer travel season. This could further boost airline stocks. Let’s leverage TipRanks’ data to narrow down on airline stocks more likely to deliver solid gains.
Top Airline Stocks to Consider
Robust travel demand and lower jet fuel costs have driven airline stocks higher. For instance, shares of United Airlines (NASDAQ: UAL), Delta Air Lines (NYSE:DAL), and American Airlines (NASDAQ:AAL) are up about 42.5%, 40.9%, and 38.4%, respectively, on a year-to-date basis.
While these stocks have delivered significant gains so far this year, the TSA announced that it had screened nearly 2.4 million people per day at airports nationwide in June. Further, with sustained high passenger volumes, TSA expects passenger volumes to surpass 2019 pre-pandemic levels this July holiday and summer travel season. This provides a significant investment opportunity for investors.
Our Stock Comparison tool shows that shares of Delta Air Lines, which have already registered substantial gains, continue to remain analysts’ favorite. Analysts are also optimistic about Frontier Group Holdings' (NASDAQ:ULCC) stock, which has underperformed its peers and the broader market so far this year.
As DAL and ULCC received a Strong Buy consensus rating and an Outperform Smart Score on TipRanks, let’s see how high these stocks could rise according to analysts’ average price targets.
How High Will Delta Stock Go?
The analysts’ 12-month average price target of $57.43 implies Delta stock could increase by another 24.01% from its current levels.
Delta is benefitting from the rebound in demand. It started 2023 on a solid note, with higher sales and earnings. The company generated about $2 billion in free cash flow in Q1, reflecting robust summer travel demand. Further, its management remains upbeat and expects significant earnings improvement in the coming quarters.
DAL stock has received 15 unanimous Buy recommendations for a Strong Buy consensus rating. In addition, DAL stock sports a maximum Smart Score of “Perfect 10.”
What is the Price Target for Frontier?
Frontier delivered total operating revenues of $848 million in Q1, a record for the first quarter, the company noted. ULCC’s management remains upbeat and expects demand for leisure travel to sustain itself, driving its financial performance. Further, lower jet fuel costs will support earnings.
Frontier stock has received six Buy and two Hold recommendations, translating into a Strong Buy consensus rating. Moreover, analysts’ 12-month average price target of $15.19 implies 61.77% upside potential from current levels.
ULCC stock has an Outperform Smart Score of nine on TipRanks.
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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For instance, shares of United Airlines (NASDAQ: UAL), Delta Air Lines (NYSE:DAL), and American Airlines (NASDAQ:AAL) are up about 42.5%, 40.9%, and 38.4%, respectively, on a year-to-date basis. While shares of several airline companies have outperformed the broader markets this year, the Transportation Security Administration (TSA) anticipates passenger volumes to surpass pre-COVID levels during this summer travel season. Our Stock Comparison tool shows that shares of Delta Air Lines, which have already registered substantial gains, continue to remain analysts’ favorite.
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For instance, shares of United Airlines (NASDAQ: UAL), Delta Air Lines (NYSE:DAL), and American Airlines (NASDAQ:AAL) are up about 42.5%, 40.9%, and 38.4%, respectively, on a year-to-date basis. Top Airline Stocks to Consider Robust travel demand and lower jet fuel costs have driven airline stocks higher. Further, with sustained high passenger volumes, TSA expects passenger volumes to surpass 2019 pre-pandemic levels this July holiday and summer travel season.
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For instance, shares of United Airlines (NASDAQ: UAL), Delta Air Lines (NYSE:DAL), and American Airlines (NASDAQ:AAL) are up about 42.5%, 40.9%, and 38.4%, respectively, on a year-to-date basis. Airline stocks have rebounded strongly from their lows, reflecting stellar air travel demand. Top Airline Stocks to Consider Robust travel demand and lower jet fuel costs have driven airline stocks higher.
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For instance, shares of United Airlines (NASDAQ: UAL), Delta Air Lines (NYSE:DAL), and American Airlines (NASDAQ:AAL) are up about 42.5%, 40.9%, and 38.4%, respectively, on a year-to-date basis. Top Airline Stocks to Consider Robust travel demand and lower jet fuel costs have driven airline stocks higher. As DAL and ULCC received a Strong Buy consensus rating and an Outperform Smart Score on TipRanks, let’s see how high these stocks could rise according to analysts’ average price targets.
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2507.0
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2023-06-29 00:00:00 UTC
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August 11th Options Now Available For American Airlines Group (AAL)
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AAL
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https://www.nasdaq.com/articles/august-11th-options-now-available-for-american-airlines-group-aal
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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 11th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new August 11th 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 68 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 $16.82 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $17.75/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 3.89% return on the cash commitment, or 32.98% 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 57 cents. If an investor was to purchase shares of AAL stock at the current price level of $17.75/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 7.44% if the stock gets called away at the August 11th 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 4% 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 3.21% boost of extra return to the investor, or 27.26% 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 $17.75) 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:
Dividend Aristocrats List
MDRM Options Chain
ON DMA
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 4% 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 11th 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 4% 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 11th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new August 11th 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 4% 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 11th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new August 11th 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 August 11th 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 $18.50 strike highlighted in red: Considering the fact that the $18.50 strike represents an approximate 4% 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 11th expiration.
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2508.0
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2023-06-28 00:00:00 UTC
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Hawaiian Holdings (HA) Soars 19.1%: Is Further Upside Left in the Stock?
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AAL
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https://www.nasdaq.com/articles/hawaiian-holdings-ha-soars-19.1%3A-is-further-upside-left-in-the-stock
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nan
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nan
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Hawaiian Holdings (HA) shares ended the last trading session 19.1% higher at $10.25. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 7.2% gain over the past four weeks.
The uptick in HA's stockprice was owing to Delta Air Lines' DAL bullish projections for the second quarter as well as full-year 2023. The upbeat projections were attributable to the buoyant air-travel demand scenario. Delta's bullish views had a positive impact on the entire airline industry
This parent company of Hawaiian Airlines is expected to post quarterly loss of $0.62 per share in its upcoming report, which represents a year-over-year change of +31.1%. Revenues are expected to be $703.36 million, up 1.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Hawaiian Holdings, the consensus EPS estimate for the quarter has been revised 15.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on HA going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Hawaiian Holdings is part of the Zacks Transportation - Airline industry. American Airlines (AAL), another stock in the same industry, closed the last trading session 5.5% higher at $17.35. AAL has returned 14.6% in the past month.
For American Airlines, the consensus EPS estimate for the upcoming report has changed +20.5% over the past month to $1.48. This represents a change of +94.7% from what the company reported a year ago. American Airlines currently has a Zacks Rank of #3 (Hold).
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
Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report
Delta Air Lines, Inc. (DAL) : 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), another stock in the same industry, closed the last trading session 5.5% higher at $17.35. AAL has returned 14.6% in the past month. Click to get this free report Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : 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 Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : 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), another stock in the same industry, closed the last trading session 5.5% higher at $17.35. AAL has returned 14.6% in the past month.
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Click to get this free report Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : 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), another stock in the same industry, closed the last trading session 5.5% higher at $17.35. AAL has returned 14.6% in the past month.
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Click to get this free report Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : 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), another stock in the same industry, closed the last trading session 5.5% higher at $17.35. AAL has returned 14.6% in the past month.
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2509.0
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2023-06-28 00:00:00 UTC
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American Airlines (AAL) Gains As Market Dips: What You Should Know
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-gains-as-market-dips%3A-what-you-should-know-8
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nan
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American Airlines (AAL) closed at $17.55 in the latest trading session, marking a +1.15% move from the prior day. This change outpaced the S&P 500's 0.04% loss on the day. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 2.93%.
Prior to today's trading, shares of the world's largest airline had gained 18.67% over the past month. This has outpaced the Transportation sector's gain of 6.53% and the S&P 500's gain of 4.22% in that time.
Investors will be hoping for strength from American Airlines as it approaches its next earnings release. On that day, American Airlines is projected to report earnings of $1.53 per share, which would represent year-over-year growth of 101.32%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. The Zacks Consensus EPS estimate has moved 10.31% higher within the past month. American Airlines is currently a Zacks Rank #3 (Hold).
Looking at its valuation, American Airlines is holding a Forward P/E ratio of 5.81. Its industry sports an average Forward P/E of 11.23, 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 group has a Zacks Industry Rank of 39, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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
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) closed at $17.55 in the latest trading session, marking a +1.15% move from the prior day. AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.98 per share and revenue of $52.96 billion. Click to get this free 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 American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) closed at $17.55 in the latest trading session, marking a +1.15% move from the prior 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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American Airlines (AAL) closed at $17.55 in the latest trading session, marking a +1.15% move from the prior day. AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.98 per share and revenue of $52.96 billion. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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American Airlines (AAL) closed at $17.55 in the latest trading session, marking a +1.15% move from the prior day. AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.98 per share and revenue of $52.96 billion. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2510.0
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2023-06-28 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
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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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High Momentum Stocks
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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2511.0
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2023-06-27 00:00:00 UTC
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Notable Tuesday Option Activity: COST, DAL, AAL
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AAL
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https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-cost-dal-aal
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Costco Wholesale Corp (Symbol: COST), where a total of 30,460 contracts have traded so far, representing approximately 3.0 million underlying shares. That amounts to about 151.7% of COST's average daily trading volume over the past month of 2.0 million shares. Particularly high volume was seen for the $535 strike call option expiring June 30, 2023, with 4,888 contracts trading so far today, representing approximately 488,800 underlying shares of COST. Below is a chart showing COST's trailing twelve month trading history, with the $535 strike highlighted in orange:
Delta Air Lines Inc (Symbol: DAL) options are showing a volume of 95,201 contracts thus far today. That number of contracts represents approximately 9.5 million underlying shares, working out to a sizeable 86.5% of DAL's average daily trading volume over the past month, of 11.0 million shares. Especially high volume was seen for the $35 strike put option expiring September 15, 2023, with 8,947 contracts trading so far today, representing approximately 894,700 underlying shares of DAL. Below is a chart showing DAL's trailing twelve month trading history, with the $35 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 136,868 contracts thus far today. That number of contracts represents approximately 13.7 million underlying shares, working out to a sizeable 64.9% of AAL's average daily trading volume over the past month, of 21.1 million shares. Especially high volume was seen for the $16 strike call option expiring August 18, 2023, with 10,230 contracts trading so far today, representing approximately 1.0 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $16 strike highlighted in orange:
For the various different available expirations for COST options, DAL options, or AAL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
ARAY market cap history
Funds Holding GMAB
Funds Holding HFEZ
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 $16 strike call option expiring August 18, 2023, with 10,230 contracts trading so far today, representing approximately 1.0 million underlying shares of AAL. Below is a chart showing DAL's trailing twelve month trading history, with the $35 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 136,868 contracts thus far today. That number of contracts represents approximately 13.7 million underlying shares, working out to a sizeable 64.9% of AAL's average daily trading volume over the past month, of 21.1 million shares.
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That number of contracts represents approximately 13.7 million underlying shares, working out to a sizeable 64.9% of AAL's average daily trading volume over the past month, of 21.1 million shares. Especially high volume was seen for the $16 strike call option expiring August 18, 2023, with 10,230 contracts trading so far today, representing approximately 1.0 million underlying shares of AAL. Below is a chart showing DAL's trailing twelve month trading history, with the $35 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 136,868 contracts thus far today.
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That number of contracts represents approximately 13.7 million underlying shares, working out to a sizeable 64.9% of AAL's average daily trading volume over the past month, of 21.1 million shares. Below is a chart showing DAL's trailing twelve month trading history, with the $35 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 136,868 contracts thus far today. Especially high volume was seen for the $16 strike call option expiring August 18, 2023, with 10,230 contracts trading so far today, representing approximately 1.0 million underlying shares of AAL.
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Especially high volume was seen for the $16 strike call option expiring August 18, 2023, with 10,230 contracts trading so far today, representing approximately 1.0 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $16 strike highlighted in orange: For the various different available expirations for COST options, DAL options, or AAL options, visit StockOptionsChannel.com. Below is a chart showing DAL's trailing twelve month trading history, with the $35 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 136,868 contracts thus far today.
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2512.0
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2023-06-27 00:00:00 UTC
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S.African mines seek to turn up renewables to ease power crisis
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AAL
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https://www.nasdaq.com/articles/s.african-mines-seek-to-turn-up-renewables-to-ease-power-crisis
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nan
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nan
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By Nelson Banya
JOHANNESBURG, June 27 (Reuters) - South African miners have increased their efforts to bring on new solar and wind generation, renewables company JUWI said, as they seek to cut costs and emissions and address an electricity crisis that has hit their output and the wider economy.
Frequent breakdowns by state-owned utility Eskom's ageing coal-fired plants have led to extensive power cuts.
Mines and their processing facilities, which account for up to 30% of the nation's power consumption, are routinely asked to reduce their use with major implications for their mineral output.
South Africa is the world's biggest producer of platinum group metals (PGMs). Sibanye Stillwater SSWJ.J has estimated South Africa's PGM output could fall by up to 20% this year, when production from the world number two producer Russia has been constrained as a result of its invasion of Ukraine.
JUWI South Africa, a unit of the German-headquartered renewable energy project developer, has received "a wave of requests" from local mines, its Managing Director Richard Doyle told Reuters.
"This is driven partly by the energy crisis, partly by increases in electricity pricing and a strong global decarbonisation drive," Doyle said.
He added JUWI is developing 400 megawatts of renewable energy projects for South African mines and said energy sector reforms announced by President Cyril Ramaphosa last year, which included the removal of licencing restrictions, had given momentum to private power projects.
South African mining companies are developing a combined 6,500 megawatts of renewable power, the country's Minerals Council said. They are expected to generate 2,294 megawatts of their own power by 2025, with more expected onstream by 2030.
Miners that have said they are pursuing renewable power include Anglo American Plc AAL.L, Impala Platinum IMPJ.J and Sibanye.
Sibanye at the end of May signed a power purchase deal with an 89 MW wind project, as it aims for a target of 550 MW renewable power by 2040.
It said the project would play "a pivotal role" in reducing carbon emissions as well as yielding cost savings and improving energy security.
(Reporting by Nelson Banya; editing by Barbara Lewis)
((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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Miners that have said they are pursuing renewable power include Anglo American Plc AAL.L, Impala Platinum IMPJ.J and Sibanye. By Nelson Banya JOHANNESBURG, June 27 (Reuters) - South African miners have increased their efforts to bring on new solar and wind generation, renewables company JUWI said, as they seek to cut costs and emissions and address an electricity crisis that has hit their output and the wider economy. Sibanye Stillwater SSWJ.J has estimated South Africa's PGM output could fall by up to 20% this year, when production from the world number two producer Russia has been constrained as a result of its invasion of Ukraine.
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Miners that have said they are pursuing renewable power include Anglo American Plc AAL.L, Impala Platinum IMPJ.J and Sibanye. By Nelson Banya JOHANNESBURG, June 27 (Reuters) - South African miners have increased their efforts to bring on new solar and wind generation, renewables company JUWI said, as they seek to cut costs and emissions and address an electricity crisis that has hit their output and the wider economy. He added JUWI is developing 400 megawatts of renewable energy projects for South African mines and said energy sector reforms announced by President Cyril Ramaphosa last year, which included the removal of licencing restrictions, had given momentum to private power projects.
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Miners that have said they are pursuing renewable power include Anglo American Plc AAL.L, Impala Platinum IMPJ.J and Sibanye. By Nelson Banya JOHANNESBURG, June 27 (Reuters) - South African miners have increased their efforts to bring on new solar and wind generation, renewables company JUWI said, as they seek to cut costs and emissions and address an electricity crisis that has hit their output and the wider economy. JUWI South Africa, a unit of the German-headquartered renewable energy project developer, has received "a wave of requests" from local mines, its Managing Director Richard Doyle told Reuters.
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Miners that have said they are pursuing renewable power include Anglo American Plc AAL.L, Impala Platinum IMPJ.J and Sibanye. By Nelson Banya JOHANNESBURG, June 27 (Reuters) - South African miners have increased their efforts to bring on new solar and wind generation, renewables company JUWI said, as they seek to cut costs and emissions and address an electricity crisis that has hit their output and the wider economy. Frequent breakdowns by state-owned utility Eskom's ageing coal-fired plants have led to extensive power cuts.
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2513.0
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2023-06-26 00:00:00 UTC
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After $1 American Airlines antitrust win, O'Melveny wants $139 million in legal fees
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AAL
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https://www.nasdaq.com/articles/after-%241-american-airlines-antitrust-win-omelveny-wants-%24139-million-in-legal-fees
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nan
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nan
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By Mike Scarcella
June 26 (Reuters) - Law firm O'Melveny & Myers has asked a Manhattan federal judge to award more than $139 million in legal fees to American Airlines after its $1 trial victory in a case accusing flight booking company Sabre of anticompetitive practices.
O'Melveny attorneys said in a filing on Friday that the court win last year "was the culmination of a risky, hard-fought, decade-long battle." Neither side appealed the verdict.
The amount O'Melveny is seeking pertains to more than a decade of litigation for then-client US Airways, which merged with American Airlines in 2013.
American Airlines had sought more than $1 billion in damages in its suit accusing Sabre of harming competition in the flight-booking market and charging excessive fees.
Sabre and its lawyers at Skadden, Arps, Slate, Meagher & Flom have denied the allegations.
Earlier this month, Sabre lost its bid to block O'Melveny from seeking any fees at all. Sabre had argued American Airlines was not entitled to millions of dollars in legal fees after winning $1 in nominal damages.
The amount American Airlines' lawyers are seeking was revealed for the first time publicly in Friday's court filing.
Sabre is the country's largest owner and operator of a network that travel agents use to search and book flights listed by the airlines.
A spokesperson for Southlake, Texas-based Sabre on Monday declined to comment.
A spokesperson for Fort Worth, Texas-based American Airlines referred to its filings and declined to otherwise comment.
Sabre is expected to argue that American Airlines did not win on all of its claims and therefore should not be awarded all of its legal fees since 2011.
In its filing, American Airlines' lawyers said the lawsuit's claims were "inextricably intertwined." The attorneys also defended the reasonableness of their hourly rates.
The trial last year was the second in the litigation.
American Airlines in December 2016 won about $15.3 million at trial where claims over damages were restricted. A subsequent appeals court decision opened a door to the second trial, where American Airlines argued for lost profit and other damages.
O'Melveny, which employs some 800 lawyers, last year recorded revenue of more than $1 billion for the first time, according to legal industry publication The American Lawyer.
The case is US Airways Inc v. Sabre Holdings Corp, U.S. District Court for the Southern District of New York, No 1:11-cv-02725-LGS.
For plaintiff: Andrew Frackman of O'Melveny & Myers, and Paul Yetter of Yetter Coleman
For defendant: Boris Bershteyn and Steven Sunshine of Skadden, Arps, Slate, Meagher & Flom
Read more:
Plaintiffs lawyers in Facebook data privacy case seek $181 million in fees
Quinn Emanuel slams 'fishing expedition' in dispute over $185 million fee award
CSX Transportation, after its antitrust lawsuit fizzles, faces rivals' bid for legal fees
(Reporting by Mike Scarcella; editing by Leigh Jones)
((Mike.Scarcella@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 Mike Scarcella June 26 (Reuters) - Law firm O'Melveny & Myers has asked a Manhattan federal judge to award more than $139 million in legal fees to American Airlines after its $1 trial victory in a case accusing flight booking company Sabre of anticompetitive practices. American Airlines had sought more than $1 billion in damages in its suit accusing Sabre of harming competition in the flight-booking market and charging excessive fees. For plaintiff: Andrew Frackman of O'Melveny & Myers, and Paul Yetter of Yetter Coleman For defendant: Boris Bershteyn and Steven Sunshine of Skadden, Arps, Slate, Meagher & Flom Read more: Plaintiffs lawyers in Facebook data privacy case seek $181 million in fees Quinn Emanuel slams 'fishing expedition' in dispute over $185 million fee award CSX Transportation, after its antitrust lawsuit fizzles, faces rivals' bid for legal fees (Reporting by Mike Scarcella; editing by Leigh Jones) ((Mike.Scarcella@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 Mike Scarcella June 26 (Reuters) - Law firm O'Melveny & Myers has asked a Manhattan federal judge to award more than $139 million in legal fees to American Airlines after its $1 trial victory in a case accusing flight booking company Sabre of anticompetitive practices. Sabre and its lawyers at Skadden, Arps, Slate, Meagher & Flom have denied the allegations. For plaintiff: Andrew Frackman of O'Melveny & Myers, and Paul Yetter of Yetter Coleman For defendant: Boris Bershteyn and Steven Sunshine of Skadden, Arps, Slate, Meagher & Flom Read more: Plaintiffs lawyers in Facebook data privacy case seek $181 million in fees Quinn Emanuel slams 'fishing expedition' in dispute over $185 million fee award CSX Transportation, after its antitrust lawsuit fizzles, faces rivals' bid for legal fees (Reporting by Mike Scarcella; editing by Leigh Jones) ((Mike.Scarcella@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 Mike Scarcella June 26 (Reuters) - Law firm O'Melveny & Myers has asked a Manhattan federal judge to award more than $139 million in legal fees to American Airlines after its $1 trial victory in a case accusing flight booking company Sabre of anticompetitive practices. Sabre had argued American Airlines was not entitled to millions of dollars in legal fees after winning $1 in nominal damages. For plaintiff: Andrew Frackman of O'Melveny & Myers, and Paul Yetter of Yetter Coleman For defendant: Boris Bershteyn and Steven Sunshine of Skadden, Arps, Slate, Meagher & Flom Read more: Plaintiffs lawyers in Facebook data privacy case seek $181 million in fees Quinn Emanuel slams 'fishing expedition' in dispute over $185 million fee award CSX Transportation, after its antitrust lawsuit fizzles, faces rivals' bid for legal fees (Reporting by Mike Scarcella; editing by Leigh Jones) ((Mike.Scarcella@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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Sabre had argued American Airlines was not entitled to millions of dollars in legal fees after winning $1 in nominal damages. The trial last year was the second in the litigation. A subsequent appeals court decision opened a door to the second trial, where American Airlines argued for lost profit and other damages.
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2514.0
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2023-06-26 00:00:00 UTC
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Will JetBlue Stock Recover To Its Pre-Inflation Shock Highs?
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AAL
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https://www.nasdaq.com/articles/will-jetblue-stock-recover-to-its-pre-inflation-shock-highs
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nan
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nan
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JetBlue stock (NASDAQ: JBLU) currently trades at $8 per share, more than 60% below its level in March 2021, and it seems like it is fully valued. JetBlue, one of the country’s largest airline industry players, saw its stock trading at around $8 in early June 2022, just before the Fed started increasing rates, and is currently trading around the same level. The stock has gained 22% since its low in September 2022, aligning with the S&P 500, up 22% during this period. JetBlue stock has been weighed down over the last year or so owing to concerns around its proposed acquisition of Spirit Airlines. JetBlue and Spirit agreed to merge last year in a $3.8 billion deal. However, earlier this year, the Justice Department filed a lawsuit seeking to block the proposed merger of JetBlue and Spirit, stating that it would lead to increased fares.
The 22% rise in the stock since September 2022 has been driven by a steady decline in the inflation rate in response to the Fed’s aggressive rate hike plan – although investors still have concerns about a potential recession. The notable increase in JetBlue’s revenues over recent quarters has also contributed to the stock recovery.
Returning to the pre-inflation shock level means that JBLU stock will have to gain more than 165% from here. However, we do not believe that will materialize any time soon and estimate JetBlue’s valuation to be around $8 per share, aligning with the current market price. This is because the company has higher debt levels, and its operating margin of -4.6% is still much lower than its pre-pandemic levels. With elevated fuel costs, the company may see slower earnings growth in the near term. The earnings will likely remain below its pre-pandemic figure of $1.92 (2019) in 2023 as well as 2024.
Our detailed analysis of JetBlue’s upside post-inflation shock captures trends in the company’s stock during the turbulent market conditions seen over 2022. It compares these trends to the stock’s performance during the 2008 recession.
2022 Inflation Shock
Timeline of Inflation Shock So Far:
2020 – early 2021: Increase in money supply to cushion the impact of lockdowns led to high demand for goods; producers unable to match up.
Early 2021: Shipping snarls and worker shortages from the coronavirus pandemic continue to hurt the supply
April 2021: Inflation rates cross 4% and increase rapidly
Early 2022: Energy and food prices spike due to the Russian invasion of Ukraine. Fed begins its rate hike process
June 2022: Inflation levels peak at 9% – the highest level in 40 years. S&P 500 index declines more than 20% from peak levels.
July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline
Since October 2022: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses.
In contrast, here’s how JBLU stock and the broader market performed during the 2007/2008 crisis.
Timeline of 2007-08 Crisis
10/1/2007: Approximate pre-crisis peak in S&P 500 index
9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08)
3/1/2009: Approximate bottoming out of S&P 500 index
12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008)
JBLU and S&P 500 Performance During 2007-08 Crisis
JBLU stock declined from nearly $9 in September 2007 (pre-crisis peak) to below $4 in March 2009 (as the markets bottomed out), implying JBLU stock lost almost 60% of its pre-crisis value. It recovered post the 2008 crisis to levels of around $5 in early 2010, rising over 40% between March 2009 and January 2010. The S&P 500 Index saw a decline of 51%, falling from levels of 1,540 in September 2007 to 757 in March 2009. It then rallied 48% between March 2009 and January 2010 to reach levels of 1,124.
JBLU Fundamentals Over Recent Years
JetBlue’s revenues fell sharply from $8.1 billion in 2019 to just $3.0 billion in 2020 as the Covid-19 outbreak hit the airline industry hard. JetBlue’s available seat miles (ASM) plunged from 63.8 million in 2019 to 32.7 million in 2020 before rebounding to 64.5 million in 2022. The company’s passenger revenue per average seat mile (PRASM) fell from 12.20 cents in 2019 to 8.36 cents in 2020 before rebounding to 13.32 cents in 2022. Despite higher revenue, earnings decreased from $1.92 in 2019 to a loss of $1.12 per share in 2022 due to higher fuel and other operating costs. JBLU reported a $4.88 per share loss in 2020 when the pandemic severely impacted its financials.
Does JBLU Have A Sufficient Cash Cushion To Meet Its Obligations Through The Ongoing Inflation Shock?
JetBlue’s total debt increased from $2.3 billion in 2019 to $3.6 billion in 2022, while its total cash increased from around $1.3 billion to $1.4 billion over the same period. The company reported negative operating cash flows in 2020 of $0.7 billion. The figure was positive $0.4 billion in 2022. The high debt burden is a near-term risk that the company faces.
Conclusion
With the Fed’s efforts to tame runaway inflation rates helping market sentiment, we believe JetBlue (JBLU) stock has the potential for some gains once fears of a potential recession are allayed. That said, uncertainties around its Spirit acquisition and the pressure on the company’s balance sheet and operating margins remains a risk factor to realizing these gains.
While JBLU stock appears to be fully valued, it is helpful to see how JetBlue Airways’ Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Despite higher inflation and the Fed raising interest rates, JBLU stock has risen 25% this year. Can it drop from here? See how low JetBlue Airways stock can go by comparing its decline in previous market crashes. Here is a performance summary of all stocks in previous market crashes.
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 Jun 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
JBLU Return 19% 25% -64%
S&P 500 Return 4% 14% 95%
Trefis Multi-Strategy Portfolio 6% 16% 262%
[1] Month-to-date and year-to-date as of 6/22/2023
[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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However, earlier this year, the Justice Department filed a lawsuit seeking to block the proposed merger of JetBlue and Spirit, stating that it would lead to increased fares. Our detailed analysis of JetBlue’s upside post-inflation shock captures trends in the company’s stock during the turbulent market conditions seen over 2022. That said, uncertainties around its Spirit acquisition and the pressure on the company’s balance sheet and operating margins remains a risk factor to realizing these gains.
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Fed begins its rate hike process June 2022: Inflation levels peak at 9% – the highest level in 40 years. July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline Since October 2022: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) JBLU and S&P 500 Performance During 2007-08 Crisis JBLU stock declined from nearly $9 in September 2007 (pre-crisis peak) to below $4 in March 2009 (as the markets bottomed out), implying JBLU stock lost almost 60% of its pre-crisis value.
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Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) JBLU and S&P 500 Performance During 2007-08 Crisis JBLU stock declined from nearly $9 in September 2007 (pre-crisis peak) to below $4 in March 2009 (as the markets bottomed out), implying JBLU stock lost almost 60% of its pre-crisis value. JetBlue’s total debt increased from $2.3 billion in 2019 to $3.6 billion in 2022, while its total cash increased from around $1.3 billion to $1.4 billion over the same period. Conclusion With the Fed’s efforts to tame runaway inflation rates helping market sentiment, we believe JetBlue (JBLU) stock has the potential for some gains once fears of a potential recession are allayed.
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JetBlue stock (NASDAQ: JBLU) currently trades at $8 per share, more than 60% below its level in March 2021, and it seems like it is fully valued. Returning to the pre-inflation shock level means that JBLU stock will have to gain more than 165% from here. This is because the company has higher debt levels, and its operating margin of -4.6% is still much lower than its pre-pandemic levels.
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2515.0
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2023-06-24 00:00:00 UTC
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AAL Quantitative Stock Analysis
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AAL
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https://www.nasdaq.com/articles/aal-quantitative-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 NASDAQ 100 Stocks
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Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
High Shareholder Yield Stocks
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). 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.
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2516.0
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2023-06-23 00:00:00 UTC
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5 Broker-Friendly Stocks to Monitor in the Current Scenario
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AAL
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https://www.nasdaq.com/articles/5-broker-friendly-stocks-to-monitor-in-the-current-scenario
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nan
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nan
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That inflation is showing signs of easing is definitely a welcome sign as far as the U.S. economy is concerned. Per the Bureau of Labor Statistics, the Consumer Price Index increased 4% year over year in May. The increase was not only lower than expected but also below April’s reading. Further good news came in when the Producer Price Index reading revealed that the decline in producer prices for the month of May was more than expected. With inflation woes subsiding, consumer sentiment in the United States is on the mend. The stunning job growth witnessed in May is a further positive as far as economic health is concerned.
Investors will no doubt want to take advantage of this brightening scenario. One way to do so would be to follow broker advice and keep broker-favorite stocks like American Airlines AAL, Bread Financial BFH, ABM Industries ABM, Cleveland-Cliffs CLF and Archer Daniels Midland Company ADM in one’s watchlist.
Why Should You Pay Heed to Broker Advice?
As brokers indulge in extensive research on stocks under their coverage, they have access to detailed information on a company. Also, they attend company conference calls/presentations and scrutinize every piece of document available in the public domain before instructing investors.
Since brokers meticulously follow the stocks in their coverage, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. Naturally, their estimate revisions serve as an important pointer regarding the price of a stock.
Given this extensive know-how, brokers are deemed to be experts in the field of investing. They are believed to be equipped with thorough knowledge and a clear insight into the complexities associated with the investment world. Paying heed to such well-researched information is, therefore, desirable for investors to avoid an unfortunate scenario where one’s hard-earned money invested in stock markets goes down the drain.
Winning Strategy
The above write-up therefore suggests that by following broker actions, one can arrive at a winning portfolio of stocks. Keeping this in mind, we have designed a screen to shortlist stocks based on improving analyst recommendations and upward revisions of earnings estimates 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 included. The price/sales ratio takes care of a 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 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: 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 12.9% 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.
Bread Financial: Based in Columbus, OH, the company continues to benefit from data-driven marketing strategies. Solid receivables growth in Card Services should drive its top line. Acquisitions and divestitures will aid the company in growing inorganically and expanding its international footprint.
Over the past 60 days, the Zacks Consensus Estimate for BFH’s 2023 earnings has been revised 24.4% upward. Bread Financial currently carries a Zacks Rank #3.
ABM Industries: This integrated facility solutions provider's multi-year comprehensive strategic plan, ELEVATE, focuses on providing clients with offerings that enhance transparency and efficiency, developing its own talent management system capabilities, expanding data usage and modernizing the digital ecosystem.
ABM has outpaced the Zacks Consensus Estimate for earnings in three of the past four quarters (reporting in-line earnings in the remaining quarter). ABM currently carries a Zacks Rank #3.
Cleveland-Cliffs: It 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 2023 earnings has been revised 4.3% upward. Cleveland-Cliffs currently carries a Zacks Rank #3.
Archer Daniels: This Chicago, IL-based agricultural product company’s leadership in key global trends like flexitarian diets, nutrition and sustainable materials has been a key contributor to its momentum. Its focus on making investments in assets and technological capabilities to serve customers efficiently is likely to be a significant growth driver. Solid demand, improved productivity and product innovations have been driving growth.
ADM outpaced the Zacks Consensus Estimate for earnings in each of the past four quarters by an average of 23.44%. The stock currently carries a Zacks Rank #3.
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.
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
Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
Cleveland-Cliffs Inc. (CLF) : Free Stock Analysis Report
ABM Industries Incorporated (ABM) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Bread Financial Holdings, Inc. (BFH) : 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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One way to do so would be to follow broker advice and keep broker-favorite stocks like American Airlines AAL, Bread Financial BFH, ABM Industries ABM, Cleveland-Cliffs CLF and Archer Daniels Midland Company ADM in one’s watchlist. 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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One way to do so would be to follow broker advice and keep broker-favorite stocks like American Airlines AAL, Bread Financial BFH, ABM Industries ABM, Cleveland-Cliffs CLF and Archer Daniels Midland Company ADM in one’s watchlist. Click to get this free report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report Cleveland-Cliffs Inc. (CLF) : Free Stock Analysis Report ABM Industries Incorporated (ABM) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Bread Financial Holdings, Inc. (BFH) : Free Stock Analysis Report To read this article on Zacks.com click here. The gradual increase in air travel demand (particularly for leisure) is aiding AAL.
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One way to do so would be to follow broker advice and keep broker-favorite stocks like American Airlines AAL, Bread Financial BFH, ABM Industries ABM, Cleveland-Cliffs CLF and Archer Daniels Midland Company ADM in one’s watchlist. Click to get this free report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report Cleveland-Cliffs Inc. (CLF) : Free Stock Analysis Report ABM Industries Incorporated (ABM) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Bread Financial Holdings, Inc. (BFH) : Free Stock Analysis Report To read this article on Zacks.com click here. The gradual increase in air travel demand (particularly for leisure) is aiding AAL.
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One way to do so would be to follow broker advice and keep broker-favorite stocks like American Airlines AAL, Bread Financial BFH, ABM Industries ABM, Cleveland-Cliffs CLF and Archer Daniels Midland Company ADM in one’s watchlist. 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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2517.0
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2023-06-23 00:00:00 UTC
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ANALYSIS-With U.S. labor tight, union workers make bolder contract demands
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AAL
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https://www.nasdaq.com/articles/analysis-with-u.s.-labor-tight-union-workers-make-bolder-contract-demands
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nan
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nan
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By Lisa Baertlein and Bianca Flowers
June 23 (Reuters) - Workers at aerospace supplier Spirit AeroSystems SPR.N were the latest U.S. union employees to reject a contract their leaders negotiated with their employer, joining freight railroad employees, airline pilots and others who are growing more fed up with stagnant pay, high healthcare costs, scanty sick time and uncertain scheduling.
In the past two years, Spirit employees, pilots at American AAL.O and United UAL.O airlines, factory workers at farm and construction equipment makers CNH Industrial CNHI.MI and Deere & Co DE.N and freight rail laborers have all rebuffed deals despite pay raises that in some contracts appeared significant.
Union workers missed out on a frenzy of wage increases by employers desperate for workers during the height of the COVID-19 pandemic. U.S. government data shows that in the first quarter of 2021, labor shortfalls helped push wages for nonunion private sector workers higher than those of their union-represented counterparts.
"You're going to see catch-up in many of those contracts," she said.
Inflation has soared 18% from May 2019, according to the Conference Board, a business think tank. Low unemployment makes it easier for union workers to stand firm during negotiations.
"If it was harder to get a job, they might feel otherwise," Conference Board senior economist Erin McLaughlin said.
Union workers also want more affordable healthcare, paid sick time and more-flexible scheduling for greater work-life balance.
"We aren't going to settle for an economic package that doesn't recognize the heroic efforts and personal sacrifices" of U.S. West Coast dockworkers, union leader Willie Adams said this month ahead of reaching a new deal.
Those longshore workers will vote in coming months on a proposed contract that includes a 32% pay increase over six years and a one-time "hero" bonus.
DEAL BREAKERS: MEDICAL COSTS, SICK DAYS
Late Wednesday, about 6,000 workers represented by the International Association of Machinists and Aerospace Workers (IAM) in Wichita, Kansas, rejected Spirit AeroSystem's offer that included a compounded average pay increase of up to 34% through general wages increases, cost-of-living adjustments and a guaranteed annual bonus.
Some workers said the base wage increase was insufficient and balked at higher out-of-pocket medical costs.
There are cautionary tales even with finalized deals. For instance, some Caterpillar workers were not happy with a deal that they ratified in March.
Union workers at CNH Industrial factories in Wisconsin and Iowa in January ended a nearly nine-month strike in return for wage increases of up to 38% over four years. That deal was sweetened after workers rejected the initial three-year deal.
In 2021, Deere workers in the Midwest rejected two contract offers before ratifying a deal to end a five-week strike.
FedEx FDX.N cargo pilots in July will vote on a tentative deal to give them a 30% raise as well as a 30% increase to their legacy pension.
American Airlines pilots rejected a company offer last year, and last month reached a deal to increase the value of their contract by about $8 billion.
Nonunionized workers overtake unionized peers on wages https://tmsnrt.rs/3plBsHl
(Reporting by Lisa Baertlein in Los Angeles and Bianca Flowers in Chicago; additional reporting by Rajesh Kumar Singh in Chicago; Editing by David Gregorio)
((lisa.baertlein@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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In the past two years, Spirit employees, pilots at American AAL.O and United UAL.O airlines, factory workers at farm and construction equipment makers CNH Industrial CNHI.MI and Deere & Co DE.N and freight rail laborers have all rebuffed deals despite pay raises that in some contracts appeared significant. U.S. government data shows that in the first quarter of 2021, labor shortfalls helped push wages for nonunion private sector workers higher than those of their union-represented counterparts. Union workers at CNH Industrial factories in Wisconsin and Iowa in January ended a nearly nine-month strike in return for wage increases of up to 38% over four years.
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In the past two years, Spirit employees, pilots at American AAL.O and United UAL.O airlines, factory workers at farm and construction equipment makers CNH Industrial CNHI.MI and Deere & Co DE.N and freight rail laborers have all rebuffed deals despite pay raises that in some contracts appeared significant. By Lisa Baertlein and Bianca Flowers June 23 (Reuters) - Workers at aerospace supplier Spirit AeroSystems SPR.N were the latest U.S. union employees to reject a contract their leaders negotiated with their employer, joining freight railroad employees, airline pilots and others who are growing more fed up with stagnant pay, high healthcare costs, scanty sick time and uncertain scheduling. American Airlines pilots rejected a company offer last year, and last month reached a deal to increase the value of their contract by about $8 billion.
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In the past two years, Spirit employees, pilots at American AAL.O and United UAL.O airlines, factory workers at farm and construction equipment makers CNH Industrial CNHI.MI and Deere & Co DE.N and freight rail laborers have all rebuffed deals despite pay raises that in some contracts appeared significant. By Lisa Baertlein and Bianca Flowers June 23 (Reuters) - Workers at aerospace supplier Spirit AeroSystems SPR.N were the latest U.S. union employees to reject a contract their leaders negotiated with their employer, joining freight railroad employees, airline pilots and others who are growing more fed up with stagnant pay, high healthcare costs, scanty sick time and uncertain scheduling. Late Wednesday, about 6,000 workers represented by the International Association of Machinists and Aerospace Workers (IAM) in Wichita, Kansas, rejected Spirit AeroSystem's offer that included a compounded average pay increase of up to 34% through general wages increases, cost-of-living adjustments and a guaranteed annual bonus.
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In the past two years, Spirit employees, pilots at American AAL.O and United UAL.O airlines, factory workers at farm and construction equipment makers CNH Industrial CNHI.MI and Deere & Co DE.N and freight rail laborers have all rebuffed deals despite pay raises that in some contracts appeared significant. By Lisa Baertlein and Bianca Flowers June 23 (Reuters) - Workers at aerospace supplier Spirit AeroSystems SPR.N were the latest U.S. union employees to reject a contract their leaders negotiated with their employer, joining freight railroad employees, airline pilots and others who are growing more fed up with stagnant pay, high healthcare costs, scanty sick time and uncertain scheduling. In 2021, Deere workers in the Midwest rejected two contract offers before ratifying a deal to end a five-week strike.
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2518.0
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2023-06-22 00:00:00 UTC
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American Airlines (AAL) Stock Moves 0.37%: What You Should Know
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-stock-moves-0.37%3A-what-you-should-know
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nan
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nan
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American Airlines (AAL) closed at $16.36 in the latest trading session, marking a +0.37% move from the prior day. This move traded in line with S&P 500. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 1.26%.
Coming into today, shares of the world's largest airline had gained 18.12% in the past month. In that same time, the Transportation sector gained 2.99%, while the S&P 500 gained 4.31%.
Investors will be hoping for strength from American Airlines as it approaches its next earnings release. The company is expected to report EPS of $1.46, up 92.11% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.73 billion, up 2.32% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.80 per share and revenue of $52.95 billion. These totals would mark changes of +460% and +8.13%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for American Airlines. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 6.11% higher within the past month. American Airlines currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 5.83 right now. This valuation marks a discount compared to its industry's average Forward P/E of 10.54.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 42, putting it in the top 17% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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
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) closed at $16.36 in the latest trading session, marking a +0.37% move from the prior 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. Coming into today, shares of the world's largest airline had gained 18.12% in the past month.
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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. American Airlines (AAL) closed at $16.36 in the latest trading session, marking a +0.37% move from the prior day. Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.80 per share and revenue of $52.95 billion.
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American Airlines (AAL) closed at $16.36 in the latest trading session, marking a +0.37% move from the prior 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. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups.
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American Airlines (AAL) closed at $16.36 in the latest trading session, marking a +0.37% move from the prior 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. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups.
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2519.0
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2023-06-22 00:00:00 UTC
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AAL August 4th Options Begin Trading
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AAL
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https://www.nasdaq.com/articles/aal-august-4th-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 become available today, for the August 4th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new August 4th contracts and identified one put and one call contract of particular interest.
The put contract at the $16.00 strike price has a current bid of 61 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $16.00, but will also collect the premium, putting the cost basis of the shares at $15.39 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $16.25/share today.
Because the $16.00 strike represents an approximate 2% 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 3.81% return on the cash commitment, or 32.36% 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 $16.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $16.50 strike price has a current bid of 70 cents. If an investor was to purchase shares of AAL stock at the current price level of $16.25/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $16.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.85% if the stock gets called away at the August 4th 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 $16.50 strike highlighted in red:
Considering the fact that the $16.50 strike represents an approximate 2% 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 4.31% boost of extra return to the investor, or 36.57% 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 $16.25) to be 44%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
NREF Options Chain
VST Next Dividend Date
Institutional Holders of FTAC
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 $16.50 strike highlighted in red: Considering the fact that the $16.50 strike represents an approximate 2% 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 become available today, for the August 4th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $16.50 strike highlighted in red: Considering the fact that the $16.50 strike represents an approximate 2% 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 become available today, for the August 4th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new August 4th 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 $16.50 strike highlighted in red: Considering the fact that the $16.50 strike represents an approximate 2% 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 become available today, for the August 4th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new August 4th 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 August 4th 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 $16.50 strike highlighted in red: Considering the fact that the $16.50 strike represents an approximate 2% 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 become available today, for the August 4th expiration.
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2520.0
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2023-06-22 00:00:00 UTC
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Should You Buy American Airlines (AAL) After Golden Cross?
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AAL
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https://www.nasdaq.com/articles/should-you-buy-american-airlines-aal-after-golden-cross
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nan
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nan
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American Airlines Group Inc. (AAL) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, AAL's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."
A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving averages being the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.
Golden crosses have three key stages that investors look out for. It starts with a downtrend in a stock's price that eventually bottoms out, followed by the stock's shorter moving average crossing over its longer moving average and triggering a trend reversal. The final stage is when a stock continues the upward climb to higher prices.
A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.
AAL could be on the verge of a breakout after moving 18.1% higher over the last four weeks. Plus, the company is currently a #3 (Hold) on the Zacks Rank.
The bullish case only gets stronger once investors take into account AAL's positive earnings outlook for the current quarter. There have been 8 upwards revisions compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.
Investors should think about putting AAL on their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
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
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) reached a significant support level, and could be a good pick for investors from a technical perspective. The bullish case only gets stronger once investors take into account AAL's positive earnings outlook for the current quarter. Investors should think about putting AAL on their watchlist given the ultra-important technical indicator and positive move in earnings estimates.
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American Airlines Group Inc. (AAL) reached a significant support level, and could be a good pick for investors from a technical perspective. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Recently, AAL's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."
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Recently, AAL's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross." American Airlines Group Inc. (AAL) reached a significant support level, and could be a good pick for investors from a technical perspective. AAL could be on the verge of a breakout after moving 18.1% higher over the last four weeks.
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Recently, AAL's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross." Investors should think about putting AAL on their watchlist given the ultra-important technical indicator and positive move in earnings estimates. American Airlines Group Inc. (AAL) reached a significant support level, and could be a good pick for investors from a technical perspective.
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2521.0
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2023-06-22 00:00:00 UTC
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7 Stocks to Buy as Companies Show Major Signs of Confidence
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AAL
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https://www.nasdaq.com/articles/7-stocks-to-buy-as-companies-show-major-signs-of-confidence
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When publicly traded companies are feeling confident and flush with cash, they tend to reward shareholders with increased dividend payments and stock buybacks. In April, CNBC noted that share repurchases in 2023 were nearing a record pace at close to $1 trillion. And plenty of companies have increased their dividend payouts this year. Today, we’ll look at seven companies showing major signs of confidence.
Rising dividends and share buybacks are good signs for the economy, as they signal confidence in companies’ current earnings and future outlook. Moreover, these shareholder rewards help carry investors through times of prolonged volatility.
Here are seven stocks with share buybacks and dividends that are on the rise that investors should consider adding to their portfolios.
Delta Air Lines (DAL)
Source: Markus Mainka / Shutterstock.com
Delta Air Lines (NYSE:DAL) suspended its dividend in March 2020 as the Covid-19 pandemic sent the global aviation industry into a tailspin. Delta wasn’t alone in this, as suspending dividend payments and share buybacks were conditions of the $54 billion in aid the federal government provided the industry during the pandemic.
However, on June 15, the airline announced it was reinstating its dividend. Delta will pay a quarterly dividend of 10 cents per share on Aug. 7 to shareholders of record as of the close of business on July 17, making its ex-dividend date July 14. This gives shares a forward annual yield of 0.9%.
Delta follows Southwest Airlines (NYSE:LUV), which was the first major carrier to restart its dividend earlier this year. Meanwhile, American Airlines (NASDAQ:AAL) has yet to reinstate its dividend payment, and United Airlines (NYSE:UAL) and JetBlue Airways (NASDAQ:JBLU) don’t pay dividends.
With demand for air travel rising, DAL stock has gained nearly 30% this year and is trading near its 52-week high.
Shell (SHEL)
Source: JuliusKielaitis / Shutterstock.com
British oil giant Shell (NYSE:SHEL) just raised its quarterly dividend by 15% to around 33 cents per share and announced plans to buy back at least $5 billion in shares during the second half of 2023. The company also said it will allocate 30% to 40% of its free cash flow from operations to rewarding shareholders, up from 20% to 30% previously.
This is certainly a sign of confidence from the oil major and comes on the heels of the company announcing record annual profits of almost $40 billion last year.
Investors also cheered the news that Shell no longer plans to cut its oil production by 20% by 2030. The company now says it will keep its oil production steady through the remainder of the decade and grow its natural gas business to strengthen its position as the world’s largest liquefied natural gas (LNG) producer.
SHEL stock is up 7% year to date and could continue to run if energy prices trend higher. In the meantime, investors can collect its freshly raised dividend.
Apple (AAPL)
Source: WeDesing / Shutterstock.com
Apple (NASDAQ:AAPL) used its most recent earnings print to announce that it is raising its quarterly dividend payment by 4% to 24 cents per share. The latest increase marks the 11th year in a row that Apple has lifted its dividend payment to shareholders and brings its forward annual yield to 0.5%.
The company also announced a new $90 billion stock buyback program, which is in line with previous share repurchases. According to Bloomberg, Apple has spent more on share buybacks than any other publicly traded U.S. company, to the tune of $550 billion over the past 10 years.
In this year’s first quarter alone, Apple spent $23 billion on dividends and share repurchases. The consumer electronics company’s latest earnings clearly gave it the confidence to bolster its dividend payout and recommit to its share buyback program. Apple reported earnings per share (EPS) of $1.52 compared to an expected $1.43. Revenue of $94.8 billion was down 3% year over year but also exceeded the consensus estimate.
In addition to handsomely rewarding shareholders through dividends and share repurchases, AAPL stock is up 42% year to date.
Dick’s Sporting Goods (DKS)
Source: George Sheldon via Shutterstock
Dick’s Sporting Goods (NYSE:DKS) said it was more than doubling its quarterly dividend after announcing blowout earnings in March. The sports equipment retailer hiked its quarterly payout to $1 a share, up from around 49 cents previously, for a yield of 2.2%.
Management said the company achieved record sales in 2022 despite inflationary pressures and a slowing economy. Consumers, it seems, continue to invest in sports equipment for themselves and their kids.
News of the dividend increase and strong earnings helped push DKS stock to a record high in early March. While the share price has pulled back some since then, it is up 13.5% this year and 85% over the past 12 months.
Moreover, the company continues to outperform on the earnings front. Dick’s announced Q1 earnings that again beat Wall Street expectations and reaffirmed its full-year guidance. The company reported net income of $305 million, up 17% year over year, and a 5.3% increase in sales to $2.8 billion.
Chevron (CVX)
Source: Denis Kuvaev / Shutterstock.com
U.S. oil major Chevron (NYSE:CVX) announced a new $75 billion stock buyback program earlier this year and boosted its dividend payment to $1.51 per share, up 6%, for a yield of 3.9%.
The new stock buyback program began in April of this year and has no expiration date. Furthermore, the latest buyback amount represents more than 20% of the company’s outstanding stock and is more than double the previous $25 billion buyback plan the company initiated in 2019.
The company is clearly rewarding shareholders after an exceptional year. With crude oil prices elevated throughout most of 2022, Chevron reported more than $37.6 billion of free cash flow and net income of $35.5 billion. for last year. While the price of crude oil has come back down to earth this year, Chevron has made it a point to share its earnings windfall with stockholders.
CVX stock is down nearly 14% in 2023 and up just 4.4% in the past 12 months, but the dividend and stock buybacks are worthy compensation.
Berkshire Hathaway (BRK-A, BRK-B)
Source: Jonathan Weiss / Shutterstock.com
Berkshire Hathaway (NYSE:BRK-A, BRK-B) doesn’t pay a dividend. However, the holding company of legendary investor Warren Buffett certainly isn’t shy about repurchasing its own stock.
Between 2020 and 2022, Berkshire bought back $60 billion of its own shares. It followed that up this year by repurchasing nearly $2 billion of its stock during Q1. Buffett himself has vigorously defended the practice of stock buybacks, saying it increases shareholder ownership without requiring investors to spend a cent.
One of the reasons Apple is Berkshire Hathaway’s largest stock holding is likely because the company repurchases more of its stock than any other publicly traded concern.
Buffett says he tends to buy back Berkshire stock whenever he feels it is undervalued, or when he can’t find other places to put the company’s enormous cash pile to work in the market. Berkshire reported in May that it has $130 billion in cash on hand — money that Buffett won’t hesitate to use to repurchase the company’s stock.
UnitedHealth Group (UNH)
Source: Ken Wolter / Shutterstock.com
Health insurance provider UnitedHealth Group (NYSE:UNH) announced in early June that it was increasing its quarterly dividend by 14% to $1.88 per share, giving it a yield of 1.5%. The news arrived as UnitedHealth announced record revenue for this year’s first quarter.
The company, which is one of the largest health insurance companies in the U.S., reported EPS of $6.26 a share, up 14% year over year and beating estimates by 13 cents. Revenue of $91.9 billion was up nearly 15% from a year earlier. Insurance premiums at UnitedHealth rose 13.6% to $72.79 billion in the quarter, while it added more than a million new customers.
UnitedHealth has now grown its quarterly dividend by more than 500% over the past decade. Few other companies have hiked their payout to shareholders as aggressively as this one.
While UNH stock is down 10% on the year, it has proven to be a long-term winner for investors, posting a five-year gain of 87%.
On the date of publication, Joel Baglole held a long position in AAPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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The post 7 Stocks to Buy as Companies Show Major Signs of Confidence 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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Meanwhile, American Airlines (NASDAQ:AAL) has yet to reinstate its dividend payment, and United Airlines (NYSE:UAL) and JetBlue Airways (NASDAQ:JBLU) don’t pay dividends. Delta wasn’t alone in this, as suspending dividend payments and share buybacks were conditions of the $54 billion in aid the federal government provided the industry during the pandemic. Buffett says he tends to buy back Berkshire stock whenever he feels it is undervalued, or when he can’t find other places to put the company’s enormous cash pile to work in the market.
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Meanwhile, American Airlines (NASDAQ:AAL) has yet to reinstate its dividend payment, and United Airlines (NYSE:UAL) and JetBlue Airways (NASDAQ:JBLU) don’t pay dividends. InvestorPlace - Stock Market News, Stock Advice & Trading Tips When publicly traded companies are feeling confident and flush with cash, they tend to reward shareholders with increased dividend payments and stock buybacks. Chevron (CVX) Source: Denis Kuvaev / Shutterstock.com U.S. oil major Chevron (NYSE:CVX) announced a new $75 billion stock buyback program earlier this year and boosted its dividend payment to $1.51 per share, up 6%, for a yield of 3.9%.
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Meanwhile, American Airlines (NASDAQ:AAL) has yet to reinstate its dividend payment, and United Airlines (NYSE:UAL) and JetBlue Airways (NASDAQ:JBLU) don’t pay dividends. InvestorPlace - Stock Market News, Stock Advice & Trading Tips When publicly traded companies are feeling confident and flush with cash, they tend to reward shareholders with increased dividend payments and stock buybacks. Chevron (CVX) Source: Denis Kuvaev / Shutterstock.com U.S. oil major Chevron (NYSE:CVX) announced a new $75 billion stock buyback program earlier this year and boosted its dividend payment to $1.51 per share, up 6%, for a yield of 3.9%.
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Meanwhile, American Airlines (NASDAQ:AAL) has yet to reinstate its dividend payment, and United Airlines (NYSE:UAL) and JetBlue Airways (NASDAQ:JBLU) don’t pay dividends. InvestorPlace - Stock Market News, Stock Advice & Trading Tips When publicly traded companies are feeling confident and flush with cash, they tend to reward shareholders with increased dividend payments and stock buybacks. In this year’s first quarter alone, Apple spent $23 billion on dividends and share repurchases.
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2522.0
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2023-06-21 00:00:00 UTC
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Brazil's Embraer returns to China with deal for freight conversions
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AAL
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https://www.nasdaq.com/articles/brazils-embraer-returns-to-china-with-deal-for-freight-conversions
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nan
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nan
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By Gabriel Araujo
SAO PAULO, June 21 (Reuters) - Brazilian planemaker Embraer EMBR3.SA is returning to China with a deal to convert passenger jets into freight aircraft with a local partner in the northwestern city of Lanzhou, the company said on Wednesday.
Anticipation of new business in China has been high since President Luiz Inacio Lula da Silva's trip to China in April. At the time, he publicly backed Embraer's efforts to return to a market where it has struggled to find new business since the 2016 closure of a joint venture in Harbin.
Some had expected a deal for aircraft sales to a Chinese airline. Instead, Embraer announced during the Paris Air Show that it had signed a letter of agreement with Lanzhou Aviation Industry Development Group for 20 E190F and E195F passenger-to-freight conversions.
"It is a market with increasing demand for cargo aircraft to accommodate the tremendous growth of e-commerce trade and the consequent evolution of the logistics industry," said Embraer's commercial aviation chief executive, Arjan Meijer.
A day earlier, Embraer announced fresh orders from American Airlines AAL.O and Spanish carrier Binter for commercial aircraft totaling about $1 billion at list prices.
Financial details of the Lanzhou deal were not disclosed.
Embraer said in a statement that the companies intend to cooperate on establishing conversion capability in Lanzhou to boost the introduction of first-generation E-Jet freighters to the Chinese market.
Embraer forecasts demand for such jets to reach 700 aircraft over the next 20 years, with China responsible for 240 of them, and said the deal with Lanzhou was a "strong indicator" of such demand.
The Brazilian firm, the world's third-largest planemaker after Airbus AIR.PA and Boeing BA.N, currently has 85 E-Jets flying in China with carriers Tianjin, Hebei, Beibu Gulf and Colorful Guizhou.
(Reporting by Gabriel Araujo in Sao Paulo Editing by Matthew Lewis)
((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;))
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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A day earlier, Embraer announced fresh orders from American Airlines AAL.O and Spanish carrier Binter for commercial aircraft totaling about $1 billion at list prices. By Gabriel Araujo SAO PAULO, June 21 (Reuters) - Brazilian planemaker Embraer EMBR3.SA is returning to China with a deal to convert passenger jets into freight aircraft with a local partner in the northwestern city of Lanzhou, the company said on Wednesday. "It is a market with increasing demand for cargo aircraft to accommodate the tremendous growth of e-commerce trade and the consequent evolution of the logistics industry," said Embraer's commercial aviation chief executive, Arjan Meijer.
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A day earlier, Embraer announced fresh orders from American Airlines AAL.O and Spanish carrier Binter for commercial aircraft totaling about $1 billion at list prices. By Gabriel Araujo SAO PAULO, June 21 (Reuters) - Brazilian planemaker Embraer EMBR3.SA is returning to China with a deal to convert passenger jets into freight aircraft with a local partner in the northwestern city of Lanzhou, the company said on Wednesday. "It is a market with increasing demand for cargo aircraft to accommodate the tremendous growth of e-commerce trade and the consequent evolution of the logistics industry," said Embraer's commercial aviation chief executive, Arjan Meijer.
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A day earlier, Embraer announced fresh orders from American Airlines AAL.O and Spanish carrier Binter for commercial aircraft totaling about $1 billion at list prices. By Gabriel Araujo SAO PAULO, June 21 (Reuters) - Brazilian planemaker Embraer EMBR3.SA is returning to China with a deal to convert passenger jets into freight aircraft with a local partner in the northwestern city of Lanzhou, the company said on Wednesday. "It is a market with increasing demand for cargo aircraft to accommodate the tremendous growth of e-commerce trade and the consequent evolution of the logistics industry," said Embraer's commercial aviation chief executive, Arjan Meijer.
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A day earlier, Embraer announced fresh orders from American Airlines AAL.O and Spanish carrier Binter for commercial aircraft totaling about $1 billion at list prices. By Gabriel Araujo SAO PAULO, June 21 (Reuters) - Brazilian planemaker Embraer EMBR3.SA is returning to China with a deal to convert passenger jets into freight aircraft with a local partner in the northwestern city of Lanzhou, the company said on Wednesday. Anticipation of new business in China has been high since President Luiz Inacio Lula da Silva's trip to China in April.
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2523.0
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2023-06-20 00:00:00 UTC
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American Airlines Orders Seven Embraer E175s
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AAL
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https://www.nasdaq.com/articles/american-airlines-orders-seven-embraer-e175s
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nan
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(RTTNews) - American Airlines has signed a firm order with Embraer for seven new E175s. The aircraft will be operated by American's wholly owned subsidiary, Envoy Air, Embraer (ERJ) said in a statement on Tuesday.
The contract value is US$403.4 million at list price and will be included in Embraer's 2023 second quarter backlog.
With deliveries to begin the fourth quarter 2023, Envoy's fleet of E-Jets will grow to over 141 aircraft by the end of 2024.
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 aircraft will be operated by American's wholly owned subsidiary, Envoy Air, Embraer (ERJ) said in a statement on Tuesday. The contract value is US$403.4 million at list price and will be included in Embraer's 2023 second quarter backlog. With deliveries to begin the fourth quarter 2023, Envoy's fleet of E-Jets will grow to over 141 aircraft by the end of 2024.
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The contract value is US$403.4 million at list price and will be included in Embraer's 2023 second quarter backlog. With deliveries to begin the fourth quarter 2023, Envoy's fleet of E-Jets will grow to over 141 aircraft by the end of 2024. 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 aircraft will be operated by American's wholly owned subsidiary, Envoy Air, Embraer (ERJ) said in a statement on Tuesday. With deliveries to begin the fourth quarter 2023, Envoy's fleet of E-Jets will grow to over 141 aircraft by the end of 2024. 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 has signed a firm order with Embraer for seven new E175s. The aircraft will be operated by American's wholly owned subsidiary, Envoy Air, Embraer (ERJ) said in a statement on Tuesday. The contract value is US$403.4 million at list price and will be included in Embraer's 2023 second quarter backlog.
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2524.0
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2023-06-20 00:00:00 UTC
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Want Better Returns? Don?t Ignore These 2 Transportation Stocks Set to Beat Earnings
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AAL
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https://www.nasdaq.com/articles/want-better-returns-dont-ignore-these-2-transportation-stocks-set-to-beat-earnings-8
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nan
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Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, Explained
The Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider American Airlines?
The final step today is to look at a stock that meets our ESP qualifications. American Airlines (AAL) earns a #3 (Hold) 30 days from its next quarterly earnings release on July 20, 2023, and its Most Accurate Estimate comes in at $1.54 a share.
AAL has an Earnings ESP figure of +6.14%, which, as explained above, is calculated by taking the percentage difference between the $1.54 Most Accurate Estimate and the Zacks Consensus Estimate of $1.46. American Airlines is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
AAL is one of just a large database of Transportation stocks with positive ESPs. Another solid-looking stock is Copa Holdings (CPA).
Copa Holdings, which is readying to report earnings on August 2, 2023, sits at a Zacks Rank #1 (Strong Buy) right now. It's Most Accurate Estimate is currently $3.08 a share, and CPA is 43 days out from its next earnings report.
The Zacks Consensus Estimate for Copa Holdings is $3.08, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +0.07%.
AAL and CPA's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
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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) earns a #3 (Hold) 30 days from its next quarterly earnings release on July 20, 2023, and its Most Accurate Estimate comes in at $1.54 a share. AAL has an Earnings ESP figure of +6.14%, which, as explained above, is calculated by taking the percentage difference between the $1.54 Most Accurate Estimate and the Zacks Consensus Estimate of $1.46. AAL is one of just a large database of Transportation stocks with positive ESPs.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) earns a #3 (Hold) 30 days from its next quarterly earnings release on July 20, 2023, and its Most Accurate Estimate comes in at $1.54 a share. AAL has an Earnings ESP figure of +6.14%, which, as explained above, is calculated by taking the percentage difference between the $1.54 Most Accurate Estimate and the Zacks Consensus Estimate of $1.46.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) earns a #3 (Hold) 30 days from its next quarterly earnings release on July 20, 2023, and its Most Accurate Estimate comes in at $1.54 a share. AAL has an Earnings ESP figure of +6.14%, which, as explained above, is calculated by taking the percentage difference between the $1.54 Most Accurate Estimate and the Zacks Consensus Estimate of $1.46.
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American Airlines (AAL) earns a #3 (Hold) 30 days from its next quarterly earnings release on July 20, 2023, and its Most Accurate Estimate comes in at $1.54 a share. AAL has an Earnings ESP figure of +6.14%, which, as explained above, is calculated by taking the percentage difference between the $1.54 Most Accurate Estimate and the Zacks Consensus Estimate of $1.46. AAL is one of just a large database of Transportation stocks with positive ESPs.
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2525.0
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2023-06-20 00:00:00 UTC
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Embraer bags fresh Binter, American Airlines orders for E-Jets
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AAL
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https://www.nasdaq.com/articles/embraer-bags-fresh-binter-american-airlines-orders-for-e-jets
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nan
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nan
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By Gabriel Araujo
PARIS, June 20 (Reuters) - Brazilian planemaker Embraer EMBR3.SA on Tuesday notched fresh orders from American Airlines and Spanish carrier Binter for its E-Jets in deals announced at the Paris Airshow that are seen totaling about $1 billion.
The new firm orders come amid an influx of deals at the world's largest air show, which is at Le Bourget for the first time in four years and took off on Monday with Airbus AIR.PA bagging a record 500-plane transaction.
Embraer, the world's third-largest planemaker after Airbus and Boeing BA.N, said the new orders follow expansion goals of regional carriers such as Binter and Canada's Porter Airlines, underscoring positive momentum for its planes in global markets.
Despite the new deals, shares of Embraer slipped more than 4% in midday trading in Sao Paulo, making it the biggest faller on the benchmark Bovespa stock index .BVSP, as analysts at JPMorgan said the firm had a "slow start" in Paris.
"We were expecting Embraer to announce at least 30 new orders during the event," they said. "We believe that additional new orders could be announced in the coming days, as in the last Paris Air Show Embraer divided its announcements into 3 days."
Binter has placed a firm order for six E195-E2 aircraft, marking its fourth order of E2 jets to bring its fleet to 16 when delivered. The deal was valued at $504.7 million at list price, with deliveries commencing in the second half of 2024.
The carrier's president Rodolfo Nunez touted the aircraft as "a game changer" for the company and "the perfect aircraft to lead our continued growth", citing better-than-expected fuel burn and maintenance.
"The best orders are repeat orders," Embraer's Chief Commercial Officer for commercial aviation Martyn Holmes said.
That also applies for American Airlines which ordered seven E175 planes for its Envoy Air subsidiary, whose fleet of E-Jets will grow to over 141 aircraft by the end of 2024 after the new $403.4 million deal.
Leasing firm Avolon meanwhile signed a sale and leaseback agreement with Porter, already an Embraer customer, for 10 new E195-E2s in a transaction priced at $841.2 million, according to Embraer.
That is "another sign that the momentum the E2 is enjoying in the market is set to continue", Holmes said.
The Brazilian company expects its commercial aircraft unit to deliver from 65 to 70 jets this year, up from 57 in 2022, and had previously said sales were also enjoying strong performance as travel rebounds post-pandemic.
The firm has restored its backlog to pre-2020 levels and is working to achieve 100 commercial deliveries a year within 3-4 years.
(Reporting by Gabriel Araujo in Sao Paulo; Editing by Steven Grattan, Jan Harvey, Alexandra Hudson)
((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;))
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 new firm orders come amid an influx of deals at the world's largest air show, which is at Le Bourget for the first time in four years and took off on Monday with Airbus AIR.PA bagging a record 500-plane transaction. Embraer, the world's third-largest planemaker after Airbus and Boeing BA.N, said the new orders follow expansion goals of regional carriers such as Binter and Canada's Porter Airlines, underscoring positive momentum for its planes in global markets. Despite the new deals, shares of Embraer slipped more than 4% in midday trading in Sao Paulo, making it the biggest faller on the benchmark Bovespa stock index .BVSP, as analysts at JPMorgan said the firm had a "slow start" in Paris.
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By Gabriel Araujo PARIS, June 20 (Reuters) - Brazilian planemaker Embraer EMBR3.SA on Tuesday notched fresh orders from American Airlines and Spanish carrier Binter for its E-Jets in deals announced at the Paris Airshow that are seen totaling about $1 billion. "We believe that additional new orders could be announced in the coming days, as in the last Paris Air Show Embraer divided its announcements into 3 days." The Brazilian company expects its commercial aircraft unit to deliver from 65 to 70 jets this year, up from 57 in 2022, and had previously said sales were also enjoying strong performance as travel rebounds post-pandemic.
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By Gabriel Araujo PARIS, June 20 (Reuters) - Brazilian planemaker Embraer EMBR3.SA on Tuesday notched fresh orders from American Airlines and Spanish carrier Binter for its E-Jets in deals announced at the Paris Airshow that are seen totaling about $1 billion. Embraer, the world's third-largest planemaker after Airbus and Boeing BA.N, said the new orders follow expansion goals of regional carriers such as Binter and Canada's Porter Airlines, underscoring positive momentum for its planes in global markets. "The best orders are repeat orders," Embraer's Chief Commercial Officer for commercial aviation Martyn Holmes said.
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By Gabriel Araujo PARIS, June 20 (Reuters) - Brazilian planemaker Embraer EMBR3.SA on Tuesday notched fresh orders from American Airlines and Spanish carrier Binter for its E-Jets in deals announced at the Paris Airshow that are seen totaling about $1 billion. The Brazilian company expects its commercial aircraft unit to deliver from 65 to 70 jets this year, up from 57 in 2022, and had previously said sales were also enjoying strong performance as travel rebounds post-pandemic. The firm has restored its backlog to pre-2020 levels and is working to achieve 100 commercial deliveries a year within 3-4 years.
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2526.0
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2023-06-19 00:00:00 UTC
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These 2 Transportation Stocks Could Beat Earnings: Why They Should Be on Your Radar
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AAL
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https://www.nasdaq.com/articles/these-2-transportation-stocks-could-beat-earnings%3A-why-they-should-be-on-your-radar-3
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nan
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nan
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Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, Explained
The Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider United Airlines?
Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. United Airlines (UAL) earns a #3 (Hold) right now and its Most Accurate Estimate sits at $4.04 a share, just 30 days from its upcoming earnings release on July 19, 2023.
UAL has an Earnings ESP figure of +7.3%, which, as explained above, is calculated by taking the percentage difference between the $4.04 Most Accurate Estimate and the Zacks Consensus Estimate of $3.77. United Airlines is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
UAL is one of just a large database of Transportation stocks with positive ESPs. Another solid-looking stock is American Airlines (AAL).
American Airlines is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on July 20, 2023. AAL's Most Accurate Estimate sits at $1.54 a share 31 days from its next earnings release.
American Airlines' Earnings ESP figure currently stands at +6.14% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.46.
UAL and AAL's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV 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
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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Another solid-looking stock is American Airlines (AAL). AAL's Most Accurate Estimate sits at $1.54 a share 31 days from its next earnings release. UAL and AAL's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
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Click to get this free 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. Another solid-looking stock is American Airlines (AAL). AAL's Most Accurate Estimate sits at $1.54 a share 31 days from its next earnings release.
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Click to get this free 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. Another solid-looking stock is American Airlines (AAL). AAL's Most Accurate Estimate sits at $1.54 a share 31 days from its next earnings release.
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UAL and AAL's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon. Another solid-looking stock is American Airlines (AAL). AAL's Most Accurate Estimate sits at $1.54 a share 31 days from its next earnings release.
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2527.0
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2023-06-16 00:00:00 UTC
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American Airlines (AAL) Dips More Than Broader Markets: What You Should Know
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-dips-more-than-broader-markets%3A-what-you-should-know-9
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nan
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nan
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American Airlines (AAL) closed at $16.48 in the latest trading session, marking a -1.02% move from the prior day. This change lagged the S&P 500's daily loss of 0.37%. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq lost 1.18%.
Coming into today, shares of the world's largest airline had gained 10.63% in the past month. In that same time, the Transportation sector gained 5%, while the S&P 500 gained 7.18%.
Investors will be hoping for strength from American Airlines as it approaches its next earnings release. In that report, analysts expect American Airlines to post earnings of $1.45 per share. This would mark year-over-year growth of 90.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.73 billion, up 2.32% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.80 per share and revenue of $52.95 billion, which would represent changes of +460% and +8.13%, respectively, from the prior year.
Any recent changes to analyst estimates for American Airlines should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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. The Zacks Consensus EPS estimate has moved 6.31% higher within the past month. American Airlines is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 5.95 right now. This represents a discount compared to its industry's average Forward P/E of 10.54.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% 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.
To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV 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
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) closed at $16.48 in the latest trading session, marking a -1.02% move from the prior day. To follow AAL in the coming trading sessions, be sure to utilize Zacks.com. Click to get this free 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 American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) closed at $16.48 in the latest trading session, marking a -1.02% move from the prior day. To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.
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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. American Airlines (AAL) closed at $16.48 in the latest trading session, marking a -1.02% move from the prior day. To follow AAL in the coming trading sessions, be sure to utilize Zacks.com.
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American Airlines (AAL) closed at $16.48 in the latest trading session, marking a -1.02% move from the prior day. To follow AAL in the coming trading sessions, be sure to utilize Zacks.com. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2528.0
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2023-06-15 00:00:00 UTC
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Are You a Momentum Investor? This 1 Stock Could Be the Perfect Pick
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AAL
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https://www.nasdaq.com/articles/are-you-a-momentum-investor-this-1-stock-could-be-the-perfect-pick-124
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nan
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nan
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
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
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth Score
While good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum Score
Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM Score
What if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank
A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create 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.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
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.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
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. Interestingly, the carrier has been making substantial profits ever since the merger took place. 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 11.3% 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 $0.34 to $2.82 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.
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
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 11.3% 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 11.3% 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 11.3% over the past four weeks.
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2529.0
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2023-06-13 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-7
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nan
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nan
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American Airlines (AAL) closed at $16.31 in the latest trading session, marking a +1.81% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq lost 8.94%.
Heading into today, shares of the world's largest airline had gained 12.19% over the past month, outpacing the Transportation sector's gain of 1.93% and the S&P 500's gain of 5.41% in that time.
Investors will be hoping for strength from American Airlines as it approaches its next earnings release. The company is expected to report EPS of $1.45, up 90.79% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.73 billion, up 2.32% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.82 per share and revenue of $52.95 billion. These totals would mark changes of +464% and +8.13%, respectively, from last year.
It is also important to note the 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.
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. The Zacks Consensus EPS estimate has moved 7.3% higher within the past month. American Airlines is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that American Airlines has a Forward P/E ratio of 5.68 right now. Its industry sports an average Forward P/E of 10.81, 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 group has a Zacks Industry Rank of 56, putting it in the top 23% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
The New Gold Rush: How Lithium Batteries Will Make Millionaires
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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
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) closed at $16.31 in the latest trading session, marking a +1.81% move from the prior 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 $2.82 per share and revenue of $52.95 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. American Airlines (AAL) closed at $16.31 in the latest trading session, marking a +1.81% move from the prior day. Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.82 per share and revenue of $52.95 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. American Airlines (AAL) closed at $16.31 in the latest trading session, marking a +1.81% move from the prior day. Heading into today, shares of the world's largest airline had gained 12.19% over the past month, outpacing the Transportation sector's gain of 1.93% and the S&P 500's gain of 5.41% in that time.
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American Airlines (AAL) closed at $16.31 in the latest trading session, marking a +1.81% move from the prior 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. Heading into today, shares of the world's largest airline had gained 12.19% over the past month, outpacing the Transportation sector's gain of 1.93% and the S&P 500's gain of 5.41% in that time.
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2530.0
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2023-06-13 00:00:00 UTC
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7 Speculative Stocks With Massive Upside Potential
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AAL
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https://www.nasdaq.com/articles/7-speculative-stocks-with-massive-upside-potential
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Speculative stocks are inherently risky, but they have the potential for significant gains in the current environment. Many investors are still entrenched in defensive stocks, and the recent stock market rally has been mainly limited to profitable companies in the hottest sectors like artificial intelligence and cloud computing. Thus, multiple speculative businesses with tremendous potential continue to change hands at bargain levels.
I believe snapping up such speculative stocks is the best way to play the market and supplement your portfolio with more growth. Of course, as with any speculative bet, downside potential exists here. But identifying and buying the right stocks near their trough will set you up for significant long-term gains, even with a recession on the horizon, as many such stocks have their risk factors priced in at the moment.
With that in mind, let’s look at some of the best speculative stocks.
Asana (ASAN)
Source: Piotr Swat / Shutterstock.com
Asana (NYSE:ASAN) is a work management software company that helps teams organize, track and manage their projects and tasks. The stock has continued to trade at a depressed level this year after the selloffs in the last two years – Mainly due to concerns about the company’s profitability and growth potential.
First, let’s talk about the profitability concern. Investors should not worry about Asana’s sustainability. The company is founded and headed by Dustin Moskovitz, a Facebook co-founder with deep pockets and a vested interest in Asana. In fact, Dustin Moskovitz will own some 58% of Asana after buying 30 million ASAN in March. In September of last year, he purchased another 19.27 million shares (worth $350 million at the time) of Asana and I believe this trend will continue. Regardless, the company is slowly narrowing losses and will be break-even sometime in 2026.
Conversely, the slowing growth is indeed a real concern. However, it is still a minor factor since most of that slowdown has already been priced in. Asana is expected to re-accelerate growth and end the year (its FY 2024) with 17.8% year-over-year sales growth. This growth is expected to be 18.21% and 23.7% in the next two years, respectively.
With all that in mind, ASAN stock is a strong buy, in my opinion.
Roblox (RBLX)
Source: Michael Vi / Shutterstock.com
Wall Street is all about profitability these days, and Roblox (NYSE:RBLX) is among the speculative stocks that have gotten the worst of it. This stock is down 71% from its peak, despite impressive fundamentals. If you don’t know Roblox, it is a video game where users can create and play their own games on different servers. You have likely heard of Minecraft, and Roblox is essentially the same — Except a lot more customizable and suitable for revenue generation. Roblox’s business model is based on an in-game currency called Robux, which can be purchased with real money or earned by creating games, after which it can be redeemed for real money.
This business model has turned Roblox into a diverse ecosystem with thousands of games since creators can profit too. Better, it’s not just kids playing and creating games. 43.4% of players are over 13 years old and a fair share are adults. Compared to Q4 2019, the daily active user count of the ecosystem has increased by nearly 250%.
But of course, Roblox is a very long-term play. The path to profitability can take years, but there is tremendous potential here. Roblox is testing advertising on a small scale, which can be a major driver of profits in the future. Again, the user count growth here has been swift – Coupled with advertising, Roblox can accelerate both its top and bottom lines.
Indeed, there is some risk here. But buying RBLX at these levels is an excellent idea if you are a long-term investor.
American Airlines (AAL)
Source: GagliardiPhotography / Shutterstock.com
Not all speculative stocks have to be in the tech or biotech industry. The airline industry wasn’t traditionally considered in the “speculative” range, but the events over the past three years have greatly changed the sentiment here. American Airlines (NASDAQ:AAL) has been on an uptrend since April but remains 45% below its pre-pandemic price in February 2020. Going back further, the stock is down more than 72% from its peak. It’s obvious what went wrong here in 2020, but let’s discuss what can go right.
It would be an understatement to say that travel plunged in 2020. However, it would also be an understatement not to recognize the resurgence in travel and overall normalcy. The U.S. airline traffic is nearly back to pre-Covid-19 levels when just in January last year half of all Americans said they “always wore masks” in public.
Almost no one discusses the pandemic anymore, and that’s the most significant caveat that plagued this stock for the last three years. American Airlines is finally back to generating profit, and annual sales have surpassed pre-pandemic figures hitting $52.26 billion TTM. The sales growth has been slowing (and that is expected after the quick recovery). Still, even at levels higher than the pandemic, American Airlines delivered 37% YOY growth in its latest quarter. It’ll stabilize around 4.15% around 2025, but that’s still higher than in 2019. Thus, I believe AAL offers immense value in this range.
Finally, one more thing that I would like to discuss is the debt problem. Many would point out that it has a significant $43 billion debt load. But American Airlines has the cash and the cash flow to trim this down over the long run. EPS growth is expected to be 44.3% in 2025 – solid profits ahead.
Park Hotels (PK)
Source: Shutterstock
Another speculative stock that will benefit from the travel resurgence is Park Hotels (NYSE:PK). It is a real estate investment trust that operates hotels and resorts in the U.S. and internationally. It focuses on premium-branded properties in prime locations. I know REITs aren’t tempting for many investors in the current environment, and you are welcome to skip this pick. But if you are looking for long-term growth, this is an interesting speculative option.
The stock currently trades nearly 60% below its pre-pandemic peak, and unlike American Airlines, the revenue here is yet to catch up. However, revenue is expected to surpass pre-pandemic metrics and reach nearly $3 billion in 2025. I believe it could be higher as Park Hotels has recently outperformed EPS expectations by over 100%. The funds from operations (FFO) metric also shows strong growth here, and we are looking at a forward FFO ratio of just 1.96 times. The discounted share price should also cushion PK, should a harsh recession happen. I also don’t believe a recession will impact it as harshly as the pandemic-induced downturn did. That was a special case. It operates luxury hotels, which are resistant to a more “traditional” economic slump.
PayPal (PYPL)
Source: JHVEPhoto / Shutterstock.com
PayPal (NASDAQ:PYPL) needs no introduction. The payments giant leads digital transactions worldwide with a 31% market share. Its biggest competitor, Stripe, is privately held and I believe PYPL is among the best speculative stocks to buy if you want to gain exposure to the e-commerce recovery over the coming years.
The slump here is due to the worldwide slowdown in digital transactions, mainly regarding e-commerce. However, e-commerce has much more room to grow over the coming years, especially as millennials and Gen Z have more economic impact. There’s no doubt that PYPL can deliver exceptional long-term gains from its current range.
PayPal’s decline can mainly be attributed to sales growth decline and competitive threats. As for the top-line growth, the difference between now and 2018-20 growth isn’t too great and, back then, the share price was much higher. 8.6% YOY growth in its latest reported quarter is nothing to scoff at, considering quarterly sales have almost doubled since 2018.
On the other hand, competitive threats aren’t easy to quantify, but PayPal has entrenched itself as a major payment platform and it’ll stay that way for years to come. Sure, it may lose more market share, but that catalyst is all but priced in at its current range.
Accordingly, the average analyst price target implies a 44.2% upside here in one year.
Block (SQ)
Source: Sergei Elagin / Shutterstock
Block (NYSE:SQ) is almost in the same boat as PayPal and there’s truly not much to add here since the same argument applies. However, I’d rate this stock slightly lower than PayPal due to its unprofitability and slightly less bullish sentiment on Wall Street.
The underlying business is still very compelling. We are looking at an accelerating top-line YOY growth that reached 26% in its last reported quarter and losses aren’t significant. Still, you are paying a premium here compared to PYPL, and that balances out both stocks, in my view.
In short, SQ and PYPL are good choices for speculative stocks, but if you prioritize growth, investing more in SQ is better. On the other hand, if safety is your priority, then it’s better to invest more in PYPL.
PagSeguro Digital (PAGS)
Source: rafastockbr / Shutterstock.com
PagSeguro Digital (NYSE:PAGS) is yet another payment processing company. I’m confident PAGS can deliver multibagger returns over a multi-year timeframe, but it is at the caboose of this article since I don’t anticipate much near-term action. Moreover, it isn’t a U.S. company, which comes with some additional risks.
PagSeguro has shining financials across the board, with a 3-year revenue growth rate of 25%, outperforming 80.7% of its peers. The forward P/E ratio here is also just below 10 times and its debt is tiny at just $65 million. I believe these robust financials can carry it much higher in the coming years.
Gurufocus’ stock analysis model has the same view – Implying that $120 would be a fair price for the stock by 2026. That’s a twelve-fold increase from its current price; unlikely but possible.
On the date of publication, Omor Ibne Ehsan did not have (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.
Omor Ibne Ehsan is a writer at InvestorPlace. He is a self-taught investor with a focus on growth and cyclical stocks that have strong fundamentals and long-term potential. He also has an interest in high-risk, high-reward investments such as cryptocurrencies and penny stocks. You can follow him on LinkedIn.
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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) Source: GagliardiPhotography / Shutterstock.com Not all speculative stocks have to be in the tech or biotech industry. American Airlines (NASDAQ:AAL) has been on an uptrend since April but remains 45% below its pre-pandemic price in February 2020. Thus, I believe AAL offers immense value in this range.
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American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com Not all speculative stocks have to be in the tech or biotech industry. American Airlines (NASDAQ:AAL) has been on an uptrend since April but remains 45% below its pre-pandemic price in February 2020. Thus, I believe AAL offers immense value in this range.
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American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com Not all speculative stocks have to be in the tech or biotech industry. American Airlines (NASDAQ:AAL) has been on an uptrend since April but remains 45% below its pre-pandemic price in February 2020. Thus, I believe AAL offers immense value in this range.
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American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com Not all speculative stocks have to be in the tech or biotech industry. American Airlines (NASDAQ:AAL) has been on an uptrend since April but remains 45% below its pre-pandemic price in February 2020. Thus, I believe AAL offers immense value in this range.
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2531.0
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2023-06-13 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-11
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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 NASDAQ 100 Stocks
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Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
High Shareholder Yield Stocks
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). 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.
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2532.0
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2023-06-13 00:00:00 UTC
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FACTBOX-Pilots seek new contracts with airlines amid booming travel demand
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AAL
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https://www.nasdaq.com/articles/factbox-pilots-seek-new-contracts-with-airlines-amid-booming-travel-demand
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nan
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nan
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Updates with United Airlines labor agreement
July 17 (Reuters) - North American pilots are pushing for better pay and working conditions during their talks over new job contracts with company managements. Members at some unions have voted to authorize a strike if a new contract is not reached.
The aggressive stance comes at a time of pilot shortages and a rise in public support for unions. The following is the status of contract negotiations at various companies:
AMERICAN AIRLINES GROUP INC AAL.O:
Pilots at American Airlines have reached an agreement in principle on a new contract, their union said on May 19.
The Allied Pilots Association (APA), which represents over 13,000 pilots at the Texas-based carrier, said it will move forward with completing contractual language of the contract before presenting it to its board for an approval.
SOUTHWEST AIRLINES CO LUV.N:
The Southwest Airlines Pilots Association (SWAPA) in May said its members at the company approved a strike mandate. It added that 98% of its members participated in the vote and 99% voted in favor of authorizing a strike.
DELTA AIR LINES DAL.N:
In March, the Air Line Pilots Association (ALPA) said that pilots at Delta had ratified a new contract that includes over $7 billion in cumulative increases in wages and benefits over four years.
The new contract, which covers 15,000 Delta pilots, provides a 34% cumulative pay increase, a lump-sum one-time payment, reduced health insurance premiums and improvements in holiday pay, vacation, company contributions to 401(k) and work rules.
AIR CANADA AC.TO:
Air Canada's pilots on May 29 ended a decade-long contract framework, opening the door to "full bargaining this summer," their union leadership said in a note to members seen by Reuters.
Previously, Air Canada pilots said they are pressing for "historic" gains to narrow the earnings gap with higher-paid aviators at U.S. carriers.
WESTJET AIRLINES:
WestJet Airlines pilots will get a 24% hourly raise over four years, plus other pay and benefits as part of a tentative agreement reached in May, according to a copy seen by Reuters on May 26.
The tentative agreement was reached by Onex Corp's ONEX.TO WestJet and the Air Line Pilots Association (ALPA) less than 24 hours before the start of an expected strike at Canada's second-largest carrier.
UNITED AIRLINES HOLDINGS INC UAL.O:
The Chicago-based carrier reached a new four-year labor agreement with its pilots on July 15, in which they will get a cumulative 34.5%-40.2% pay hike over four years, the Air Line Pilots Association that represents about 14,000 pilots at United, said.
SPIRIT AIRLINES INC SAVE.N:
In January, ALPA said pilots at Spirit Airlines voted to ratify a new contract.
The union that represents the ultra-low-cost carrier said 69% of the airline's pilots voted in favor of the new collective bargaining agreement, which offers an economic gain of $463 million, or 27%, over the next two years.
JETBLUE AIRWAYS CORP JBLU.O:
In January, ALPA said pilots at JetBlue Airways Corp have overwhelmingly approved a two-year contract extension.
ALPA, which represents more than 4,600 pilots at JetBlue, said 75% of the pilots voted in favor of ratifying the agreement, which provides for a compensation increase of 21.5% over 18 months as well as other monetary improvements.
FEDEX CORP FDX.N:
Governing body of ALPA unit representing FedEx pilots on June 12 said it has approved a tentative contract agreement that includes a 30% pay increase and a 30% increase to the pilots' legacy pension.
The FedEx Master Executive Council said the vote will open on July 5 and close on July 24.
(Reporting by Priyamvada C, Amna Karimi and Shivansh Tiwary in Bengaluru; Editing by Dhanya Ann Thoppil, Sriraj Kalluvila and Arun Koyyur)
((Amna.Karimi@thomsonreuters.com; +91 8083261226;))
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 United Airlines labor agreement July 17 (Reuters) - North American pilots are pushing for better pay and working conditions during their talks over new job contracts with company managements. Air Canada's pilots on May 29 ended a decade-long contract framework, opening the door to "full bargaining this summer," their union leadership said in a note to members seen by Reuters. The tentative agreement was reached by Onex Corp's ONEX.TO WestJet and the Air Line Pilots Association (ALPA) less than 24 hours before the start of an expected strike at Canada's second-largest carrier.
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Updates with United Airlines labor agreement July 17 (Reuters) - North American pilots are pushing for better pay and working conditions during their talks over new job contracts with company managements. In March, the Air Line Pilots Association (ALPA) said that pilots at Delta had ratified a new contract that includes over $7 billion in cumulative increases in wages and benefits over four years. The tentative agreement was reached by Onex Corp's ONEX.TO WestJet and the Air Line Pilots Association (ALPA) less than 24 hours before the start of an expected strike at Canada's second-largest carrier.
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In March, the Air Line Pilots Association (ALPA) said that pilots at Delta had ratified a new contract that includes over $7 billion in cumulative increases in wages and benefits over four years. The Chicago-based carrier reached a new four-year labor agreement with its pilots on July 15, in which they will get a cumulative 34.5%-40.2% pay hike over four years, the Air Line Pilots Association that represents about 14,000 pilots at United, said. Governing body of ALPA unit representing FedEx pilots on June 12 said it has approved a tentative contract agreement that includes a 30% pay increase and a 30% increase to the pilots' legacy pension.
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Members at some unions have voted to authorize a strike if a new contract is not reached. The Chicago-based carrier reached a new four-year labor agreement with its pilots on July 15, in which they will get a cumulative 34.5%-40.2% pay hike over four years, the Air Line Pilots Association that represents about 14,000 pilots at United, said. ALPA, which represents more than 4,600 pilots at JetBlue, said 75% of the pilots voted in favor of ratifying the agreement, which provides for a compensation increase of 21.5% over 18 months as well as other monetary improvements.
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2533.0
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2023-06-12 00:00:00 UTC
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US judge delays American Airlines, JetBlue injunction date
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AAL
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https://www.nasdaq.com/articles/us-judge-delays-american-airlines-jetblue-injunction-date
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nan
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nan
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By David Shepardson
WASHINGTON, June 12 (Reuters) - U.S. District Judge Leo Sorokin on Monday delayed the effective date of a permanent injunction after ruling American Airlines AAL.O and JetBlue Airways JBLU.O must end their Northeast Alliance (NEA) they used to coordinate flights and pool revenue.
Sorokin initially said the injunction would take effect June 20. He said Monday he would now make the effective date 21 days after he issues a final judgment. On Friday, the airlines asked Sorokin to allow them to continue mutual frequent flyer recognition and codeshare arrangements.
"Customers who have not yet purchased their tickets will lose access to scores of nonstop flight options and the ability to mix-and-match American and JetBlue flights to create hundreds of convenient one-stop connections," the airlines said Friday.
American and JetBlue each rose around 3% Monday.
The Justice Department said Sorokin should reject the airlines' "invitation to craft a new 'NEA Lite' on the fly." The court should not "bless a different partnership, in a matter of days, simply because it lacks some of the most brazen features of the NEA."
The Justice Department and six states sued in 2021 to unwind the NEA announced in 2020, calling it a "de facto merger" of the American and JetBlue Boston and New York operations that removes incentives for them to compete.
The airlines oppose other proposed U.S. disclosure and monitoring conditions, calling them onerous and unnecessary, and oppose a two-year ban on any new alliance with any another U.S. air carrier similar to the NEA.
American is the largest U.S. airline by fleet size and low-cost carrier. JetBlue is the sixth largest.
American has said it plans to appeal. JetBlue has not announced a decision.
The Justice Department argued the alliance gave the airlines more than 80% of market share in flights from Boston to Washington and six other airports including the New York area's JFK, LaGuardia and Newark.
Separately, the Justice Department filed suit in March aimed at stopping JetBlue from buying discount rival Spirit Airlines SAVE.N.
FOCUS-American Airlines' reliance on partners faces test after court ruling
American, JetBlue urge US judge to allow them to keep codeshare arrangements
American Airlines to appeal JetBlue alliance court ruling
(Reporting by David Shepardson; Editing by Nick Zieminski)
((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, June 12 (Reuters) - U.S. District Judge Leo Sorokin on Monday delayed the effective date of a permanent injunction after ruling American Airlines AAL.O and JetBlue Airways JBLU.O must end their Northeast Alliance (NEA) they used to coordinate flights and pool revenue. The Justice Department and six states sued in 2021 to unwind the NEA announced in 2020, calling it a "de facto merger" of the American and JetBlue Boston and New York operations that removes incentives for them to compete. The Justice Department argued the alliance gave the airlines more than 80% of market share in flights from Boston to Washington and six other airports including the New York area's JFK, LaGuardia and Newark.
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By David Shepardson WASHINGTON, June 12 (Reuters) - U.S. District Judge Leo Sorokin on Monday delayed the effective date of a permanent injunction after ruling American Airlines AAL.O and JetBlue Airways JBLU.O must end their Northeast Alliance (NEA) they used to coordinate flights and pool revenue. He said Monday he would now make the effective date 21 days after he issues a final judgment. FOCUS-American Airlines' reliance on partners faces test after court ruling American, JetBlue urge US judge to allow them to keep codeshare arrangements American Airlines to appeal JetBlue alliance court ruling (Reporting by David Shepardson; Editing by Nick Zieminski) ((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, June 12 (Reuters) - U.S. District Judge Leo Sorokin on Monday delayed the effective date of a permanent injunction after ruling American Airlines AAL.O and JetBlue Airways JBLU.O must end their Northeast Alliance (NEA) they used to coordinate flights and pool revenue. "Customers who have not yet purchased their tickets will lose access to scores of nonstop flight options and the ability to mix-and-match American and JetBlue flights to create hundreds of convenient one-stop connections," the airlines said Friday. FOCUS-American Airlines' reliance on partners faces test after court ruling American, JetBlue urge US judge to allow them to keep codeshare arrangements American Airlines to appeal JetBlue alliance court ruling (Reporting by David Shepardson; Editing by Nick Zieminski) ((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, June 12 (Reuters) - U.S. District Judge Leo Sorokin on Monday delayed the effective date of a permanent injunction after ruling American Airlines AAL.O and JetBlue Airways JBLU.O must end their Northeast Alliance (NEA) they used to coordinate flights and pool revenue. He said Monday he would now make the effective date 21 days after he issues a final judgment. The Justice Department and six states sued in 2021 to unwind the NEA announced in 2020, calling it a "de facto merger" of the American and JetBlue Boston and New York operations that removes incentives for them to compete.
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2534.0
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2023-06-12 00:00:00 UTC
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Thungela forecasts sharp half-year profit fall on weaker coal prices
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AAL
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https://www.nasdaq.com/articles/thungela-forecasts-sharp-half-year-profit-fall-on-weaker-coal-prices
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nan
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nan
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June 12 (Reuters) - South African thermal coal exporter Thungela Resources TGAJ.J on Monday said it expects its half-year profit to fall by as much as 75% on weaker coal prices, higher costs and persistent rail logistics problems.
In a trading update, Thungela said its headline earnings per share, South Africa's most common profit measure, is expected to be between 17 rand and 23 rand ($0.9103 and $1.23) in the six months to June 30, compared to 67.23 rand during the same period last year.
Thermal coal prices have come off the record highs of 2022, when surging demand from Europe fired up coal miners' earnings after a ban was imposed on Russian coal over Moscow's invasion of Ukraine.
Thungela said coal prices had softened after Europe experienced a milder winter than expected, leaving many utilities with high stocks of coal and natural gas and leading to the redirection of coal volumes to Asia.
"This added significant supply to Asian markets which also showed signs of weaker demand, especially from China. Russian coal also continued to flow into the region at discounts," Thungela said.
Its average realised export price for the year so far was $112.40 per metric ton, compared to $229.21 per metric ton last year, it said.
Production costs are expected to be 25% higher due to lower output and increases in energy input costs.
Thungela says coal export sales from its own production for the half-year will decline 5% to 6.2 million metric tons, as South Africa's state-owned freight rail operator Transnet's performance continues to decline due to locomotive shortages as well as cable theft and vandalism of its infrastructure.
The coal miner, which was spun off from Anglo American Plc AAL.L in 2021, in February announced plans to diversify away from South Africa's infrastructure challenges with the purchase of the Ensham coal mine in Australia in a deal worth $230 million.
Thungela said it hopes to complete the Ensham transaction by September 2023.
($1 = 18.6756 rand)
($1 = 1.4815 Australian dollars)
(Reporting by Nelson Banya; Editing by Tom Hogue)
((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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The coal miner, which was spun off from Anglo American Plc AAL.L in 2021, in February announced plans to diversify away from South Africa's infrastructure challenges with the purchase of the Ensham coal mine in Australia in a deal worth $230 million. June 12 (Reuters) - South African thermal coal exporter Thungela Resources TGAJ.J on Monday said it expects its half-year profit to fall by as much as 75% on weaker coal prices, higher costs and persistent rail logistics problems. "This added significant supply to Asian markets which also showed signs of weaker demand, especially from China.
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The coal miner, which was spun off from Anglo American Plc AAL.L in 2021, in February announced plans to diversify away from South Africa's infrastructure challenges with the purchase of the Ensham coal mine in Australia in a deal worth $230 million. June 12 (Reuters) - South African thermal coal exporter Thungela Resources TGAJ.J on Monday said it expects its half-year profit to fall by as much as 75% on weaker coal prices, higher costs and persistent rail logistics problems. Its average realised export price for the year so far was $112.40 per metric ton, compared to $229.21 per metric ton last year, it said.
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The coal miner, which was spun off from Anglo American Plc AAL.L in 2021, in February announced plans to diversify away from South Africa's infrastructure challenges with the purchase of the Ensham coal mine in Australia in a deal worth $230 million. June 12 (Reuters) - South African thermal coal exporter Thungela Resources TGAJ.J on Monday said it expects its half-year profit to fall by as much as 75% on weaker coal prices, higher costs and persistent rail logistics problems. Thermal coal prices have come off the record highs of 2022, when surging demand from Europe fired up coal miners' earnings after a ban was imposed on Russian coal over Moscow's invasion of Ukraine.
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The coal miner, which was spun off from Anglo American Plc AAL.L in 2021, in February announced plans to diversify away from South Africa's infrastructure challenges with the purchase of the Ensham coal mine in Australia in a deal worth $230 million. June 12 (Reuters) - South African thermal coal exporter Thungela Resources TGAJ.J on Monday said it expects its half-year profit to fall by as much as 75% on weaker coal prices, higher costs and persistent rail logistics problems. Thermal coal prices have come off the record highs of 2022, when surging demand from Europe fired up coal miners' earnings after a ban was imposed on Russian coal over Moscow's invasion of Ukraine.
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2535.0
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2023-06-10 00:00:00 UTC
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Convicted 'Unabomber' Ted Kaczynski dead at 81
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AAL
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https://www.nasdaq.com/articles/convicted-unabomber-ted-kaczynski-dead-at-81
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nan
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nan
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By Alistair Bell
June 10 (Reuters) - Ted Kaczynski, former math professor and "twisted genius" who came to be known as the Unabomber when he carried out a 17-year spree of mysterious bombings that killed three people and baffled the FBI, died on Saturday at the age of 81.
Kaczynski, who made and sent many of his bombs while living in a primitive cabin with no running water in rural Montana, was found dead at a prison in North Carolina.
Kristie Breshears, a spokesperson for the Federal Bureau of Prisons, confirmed the death to Reuters. "He is dead," Breshears said. "He was found unresponsive in his cell early this morning."
The Harvard University graduate, a loner since childhood, targeted academics, scientists and computer store owners and even tried to blow up a commercial airliner in a one-man terror campaign from 1978 and 1995 against what he believed were the evils of modern technology.
For years, he frustrated police who, with no solid clues to the killer's identity, dubbed his case UNABOM, for University and Airline Bombings. A breakthrough came when Kaczynski released a rambling, 35,000-word manifesto entitled "Industrial Society and Its Future" that was published in the media in September, 1995.
Kaczynski's younger brother, David, tipped off police that the author's ideas sounded like those of Ted. Agents arrested the disheveled Unabomber at his cabin in April 1996.
After rejecting his lawyers' attempts to have him plead insanity, Kaczynski pleaded guilty to all federal charges relating to the bombings in 1998 and a California court sentenced him to four life terms plus 30 years in prison.
Described by the FBI as "a twisted genius who aspires to be the perfect, anonymous killer," Kaczynski was sent to ADX Florence, a "supermax" prison in Florence, Colorado. He was transferred to the North Carolina facility in 2021.
Theodore John Kaczynski was born on May 22, 1942, in Chicago to working class Polish-American parents. He was a bright, quiet child who graduated from high school aged 15 and won a scholarship to Harvard University where he studied mathematics.
"He wasn't exactly gregarious, but he was extremely articulate," Dale Eickelman, Kaczynski's friend in his early high school years, told the Daily Southtown newspaper in Chicago after Kaczynski's arrest.
"I remember Ted was very good at chemistry ... I remember Ted had the know-how of putting together things like batteries, wire leads, potassium nitrate and whatever, and creating explosions" at the age of 12 and 13, Eickelman said.
While it is not known exactly what caused Kaczynski to channel his natural talent toward evil, his participation in an infamous science experiment at Harvard may have been one reason.
There, psychologists subjected volunteer students, including Kaczynski, to hours of extreme verbal and emotional abuse as part of an attempt to measure how people handled stress. The experiment, now regarded as unethical, lasted three years.
Others have cited a period in Kaczynski's childhood when he spent long periods in isolation due to a severe outbreak of hives.
Kaczynski earned a doctoral degree in mathematics in 1967 at the University of Michigan before he got a job as an assistant mathematics professor at the University of California at Berkeley.
He resigned his post and moved to Montana in 1971 where he bought land and built himself a tar-paper cabin near Lincoln, a town of under 1,000 people in winter. Kaczynski became upset by the destruction of the surrounding forests by development.
The cabin served as the main base for his homemade bombing campaign, which began in 1978 when he left a package for an engineering professor at Chicago's Northwestern University. The package exploded, lightly wounding a police officer. A graduate student at the college became the second victim when a small bomb went off in his hands, giving him superficial burns.
Kaczynski then took aim at a bigger target, placing a bomb in 1979 in the cargo hold of an American Airlines plane that gave off smoke during a domestic flight, forcing an emergency landing at Dulles International Airport near Washington.
That attack caught the attention of the FBI and agents would spend years trying to catch a bomber who left no clear demands and little forensic evidence. A six-year period between 1987 and 1993 in which no bombs were sent further confused investigators.
In 1980, Kaczynski sent a package bomb that exploded and injured United Airlines President Percy Wood at his Illinois home.
His first fatal victim was computer store owner Hugh Scrutton, 38, who died when a bomb loaded with nails and splinters went off in the parking lot of his store in Sacramento, California in 1985.
As his bombs became more sophisticated, Kaczynski also killed New Jersey advertising executive Thomas Mosser, who had worked on improving the public image of oil major Exxon, with a mail bomb in 1994.
He then murdered Gilbert Brent Murray, head of a California timber industry lobbying group, with a mail bomb in 1995.
In all, the Unabomber set off 17 bombs, injuring around 25 people, some of whom lost vision, hearing or fingers.
Kaczynski triggered his own downfall in 1995 when he sent letters to media organizations demanding that they publish a 35,000-word essay of his about the perils of industrialization.
"The Industrial Revolution and its consequences have been a disaster for the human race," the essay began. Kaczynski detailed how modernization has destabilized society, subjected humans to indignities and "inflicted severe damage on the natural world."
Still short on leads, the FBI and then U.S. Attorney General Janet Reno approved the publication of the manifesto in The Washington Post in the hope that someone would recognize it.
The move paid off when the bomber's brother David, recognized phrases and topics in the essay and told police he believed it was written by Ted.
(Additional reporting by Dan Whitcomb in Los Angeles and Phil Stewart in Washington; Editing by Daniel Wallis and Diane Craft)
((Dan.Whitcomb@tr.com; 310-491-7290;))
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 Alistair Bell June 10 (Reuters) - Ted Kaczynski, former math professor and "twisted genius" who came to be known as the Unabomber when he carried out a 17-year spree of mysterious bombings that killed three people and baffled the FBI, died on Saturday at the age of 81. The Harvard University graduate, a loner since childhood, targeted academics, scientists and computer store owners and even tried to blow up a commercial airliner in a one-man terror campaign from 1978 and 1995 against what he believed were the evils of modern technology. Kaczynski then took aim at a bigger target, placing a bomb in 1979 in the cargo hold of an American Airlines plane that gave off smoke during a domestic flight, forcing an emergency landing at Dulles International Airport near Washington.
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By Alistair Bell June 10 (Reuters) - Ted Kaczynski, former math professor and "twisted genius" who came to be known as the Unabomber when he carried out a 17-year spree of mysterious bombings that killed three people and baffled the FBI, died on Saturday at the age of 81. The Harvard University graduate, a loner since childhood, targeted academics, scientists and computer store owners and even tried to blow up a commercial airliner in a one-man terror campaign from 1978 and 1995 against what he believed were the evils of modern technology. "He wasn't exactly gregarious, but he was extremely articulate," Dale Eickelman, Kaczynski's friend in his early high school years, told the Daily Southtown newspaper in Chicago after Kaczynski's arrest.
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By Alistair Bell June 10 (Reuters) - Ted Kaczynski, former math professor and "twisted genius" who came to be known as the Unabomber when he carried out a 17-year spree of mysterious bombings that killed three people and baffled the FBI, died on Saturday at the age of 81. Kaczynski, who made and sent many of his bombs while living in a primitive cabin with no running water in rural Montana, was found dead at a prison in North Carolina. "He wasn't exactly gregarious, but he was extremely articulate," Dale Eickelman, Kaczynski's friend in his early high school years, told the Daily Southtown newspaper in Chicago after Kaczynski's arrest.
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Kaczynski, who made and sent many of his bombs while living in a primitive cabin with no running water in rural Montana, was found dead at a prison in North Carolina. The Harvard University graduate, a loner since childhood, targeted academics, scientists and computer store owners and even tried to blow up a commercial airliner in a one-man terror campaign from 1978 and 1995 against what he believed were the evils of modern technology. He was a bright, quiet child who graduated from high school aged 15 and won a scholarship to Harvard University where he studied mathematics.
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2536.0
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2023-06-10 00:00:00 UTC
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MarketBeat Week in Review – 6/4 - 6/9
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https://www.nasdaq.com/articles/marketbeat-week-in-review-6-4-6-9
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Markets closed the week in a state of cautious optimism. The S&P 500 is officially out of bear market territory but, in the words of another Fed chairman, this is no time for “irrational exuberance.” The market is still range bound. The immediate question is whether an S&P index at 4,300 is the top or the middle of that range.
Investors now wait for the latest data on inflation and interest rates. They won’t have to wait long. The May consumer price index (CPI) reading comes out on Tuesday followed by the producer price index (PPI) reading on Wednesday. That’s also the day the Fed will announce its decision on interest rates. Investors will also get a read on manufacturing, oil inventories, and at the end of the week the latest read on consumer confidence.
It’s going to be a busy week, and the MarketBeat team will have every angle covered. Here are some of the most popular articles from this week.
Articles by Jea Yu
Investors continue to plow money into artificial intelligence (AI) stocks. One of the biggest beneficiaries is Samsara, Inc. (NYSE: IOT). This is a company that specializes on developing Internet of Things (IoT) solutions that are powered by AI. As Yu writes, IT stock is up 135% in 2023 and may have higher to go after beating earnings guidance and raising its outlook. Turning his attention to the stickiness of revenge travel, Yu wrote about the state of airline stocks and how investors should think about investing in airline stocks in a post-pandemic world. Yu also wrote specifically about American Airlines Group, Inc. (NASDAQ: AAL) which has been a laggard but may be ready to move higher as 2023 revenue surpasses early 2020 levels.
Articles by Thomas Hughes
One of the biggest news items this week came when Apple, Inc (NASDAQ: AAPL) debuted its Vison Pro AR/VR headset. And while investors are pondering what it may mean for Apple, Thomas Hughes suggests you take a look at a company like GitLab (NASDAQ: GTLB). As Hughes writes, GitLab is “one of the leading AI-powered DevSecOps platform” which will give it many opportunities to increase revenue and market share. If you’re looking for something a little safer, Hughes explains why Verizon Communications, Inc. (NYSE: VZ) has a dividend yield of over 7%, but the stock is far from a yield trap and, in fact, may be too good to pass up. And as many investors may be hitting the road this summer, it’s a good time to check in on a company like Thor Industries, Inc. (NYSE: THO). The company just delivered an earnings report that showed that the floor for RV sales may be higher than analysts expected. Hughes advises investors may want to wait a bit before taking THO stock on a drive, but it does pay a safe dividend if you’re looking for a safe stock for the summer.
Articles by Sam Quirke
The reality of electric vehicles is starting to live up to the promise. And that’s why EV stocks are still relevant to investors with a long-term focus. That was Sam Quirke’s message as he pointed investors to three promising EV stocks for investors to put on their watchlist. None of these companies will threaten Tesla, Inc. (NASDAQ: TSLA) for market share any time soon, but now is a time to think about which companies are going to be in that next tier. And speaking of Tesla, Quirke wrote about why the company’s rally within a rally may still have room to run. And while the big tech names are driving the market forward, Quirke was taking a look at three mid-cap stocks that investors probably have not heard of but should. Mid-cap and small-cap stocks tend to lead big rallies, and this may be one of those times.
Articles by Chris Markoch
Dollar General Corp. (NYSE: DG) sent shock waves through the market when it noted that its target consumer was showing signs of distress. But as Chris Markoch writes, the company’s earnings report says more about the state of the consumer than a fundamental flaw with the company which may make it a buy-the-dip candidate for patient investors. And keeping his eye on the dollar store sector, Markoch also wrote about Five Below Inc. (NASDAQ: FIVE) that may be heading to an all-time high. The discount chain saw its shares rally as new store openings helped drive up the overall transactions even as the total dollar value of those transactions was lower.
Articles by Kate Stalter
Earnings growth is one of the most accurate predictors of stock price growth. And Kate Stalter explains to investors how that narrative is playing out with Shopify Inc. (NYSE: SHOP). The stock is rallying on expectations for earnings growth of 715% in 2023. As Stalter writes, this jump comes after a recent consolidation which is a signal that institutional investors still believe in the stock. Stalter was also looking at two areas of concern for investors: regional banks and real estate. Although concerns still exist about the banking sector, the potential for new capital requirements makes the case for three undervalued regional banks even stronger. And even in the beaten-down real-estate sector, Stalter points out two undervalued real-estate stocks that are offering good value for investors even as their stock price has recently moved higher.
Articles by MarketBeat Staff
This week, the MarketBeat staff was on the hunt for stocks that offer value wherever investors may find them. And you might be surprised to find that even at a price tag of over $2,000 a share a stock may offer good value. But that’s exactly the case our staff made for two stocks that have lofty share prices but are still undervalued. The staff also had their eye on a more traditional metric like price-to-earnings (P/E) ratio in looking at two Dow stocks that offer great value at less than 10x earnings. Investors can even find value in stocks that are cutting their dividend. While this is generally seen as a sign a company is in financial distress, it can also be a savvy, short-term move that will lead to a better tomorrow as is the case for these three stocks who just cut their dividends.
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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Yu also wrote specifically about American Airlines Group, Inc. (NASDAQ: AAL) which has been a laggard but may be ready to move higher as 2023 revenue surpasses early 2020 levels. Articles by Thomas Hughes One of the biggest news items this week came when Apple, Inc (NASDAQ: AAPL) debuted its Vison Pro AR/VR headset. Articles by Chris Markoch Dollar General Corp. (NYSE: DG) sent shock waves through the market when it noted that its target consumer was showing signs of distress.
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Yu also wrote specifically about American Airlines Group, Inc. (NASDAQ: AAL) which has been a laggard but may be ready to move higher as 2023 revenue surpasses early 2020 levels. Articles by Chris Markoch Dollar General Corp. (NYSE: DG) sent shock waves through the market when it noted that its target consumer was showing signs of distress. But as Chris Markoch writes, the company’s earnings report says more about the state of the consumer than a fundamental flaw with the company which may make it a buy-the-dip candidate for patient investors.
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Yu also wrote specifically about American Airlines Group, Inc. (NASDAQ: AAL) which has been a laggard but may be ready to move higher as 2023 revenue surpasses early 2020 levels. Hughes advises investors may want to wait a bit before taking THO stock on a drive, but it does pay a safe dividend if you’re looking for a safe stock for the summer. And even in the beaten-down real-estate sector, Stalter points out two undervalued real-estate stocks that are offering good value for investors even as their stock price has recently moved higher.
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Yu also wrote specifically about American Airlines Group, Inc. (NASDAQ: AAL) which has been a laggard but may be ready to move higher as 2023 revenue surpasses early 2020 levels. That was Sam Quirke’s message as he pointed investors to three promising EV stocks for investors to put on their watchlist. And even in the beaten-down real-estate sector, Stalter points out two undervalued real-estate stocks that are offering good value for investors even as their stock price has recently moved higher.
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2537.0
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2023-06-09 00:00:00 UTC
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American, JetBlue urge US judge to allow them to keep codeshare arrangements
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https://www.nasdaq.com/articles/american-jetblue-urge-us-judge-to-allow-them-to-keep-codeshare-arrangements
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By David Shepardson
WASHINGTON, June 9 (Reuters) - American Airlines AAL.O and JetBlue Airways JBLU.O asked a U.S. judge late Friday to allow them to continue mutual frequent flyer recognition and codeshare arrangements.
U.S. District Judge Leo Sorokin ruled on May 19 that the airlines must end their Northeast Alliance (NEA) they used to coordinate flights and pool revenue finding the arrangement means higher prices for consumers and ordering the companies to part ways within 30 days.
The airlines said Sorokin should allow them to continue codesharing and reciprocal frequent flyer programs, arguing such agreements are lawful and "to ensure that the right airline is paid for the service provided to the consumer." Codeshares allow multiple airlines to sell seats for the same flight.
The Justice Department said Sorokin should reject the airlines "invitation to craft a new 'NEA Lite' on the fly." The court should not "bless a different partnership, in a matter of days, simply because it lacks some of the most brazen features of the NEA."
The Justice Department and six states sued in 2021 to unwind the NEA announced in 2020, calling it a "de facto merger" of the American and JetBlue Boston and New York operations that removes incentives for them to compete.
The department said Friday the airlines "must abandon their
entanglements and return to being fully independent competitors to remedy their unlawful distortion of airline competition in the Northeast and beyond."
The airlines opposed other proposed U.S. disclosure and monitoring conditions calling them onerous and unnecessary and oppose a two-year ban on any new alliance with any another U.S. air carrier similar to the NEA.
The airlines said Sorokin should minimize consumer disruption and not become "the central planner in the unwinding of a multi-year integrated joint venture in violation of cardinal principles of antitrust law."
American is the largest U.S. airline by fleet size and low-cost carrier. JetBlue is the sixth largest.
American said last week it plans to appeal. JetBlue has not made a decision.
The Justice Department argued the alliance gave the airlines more than 80% of market share in flights from Boston to Washington and six other airports including the New York area's JFK, LaGuardia and Newark.
Separately, the Justice Department filed suit in March aimed at stopping JetBlue from buying discount rival Spirit Airlines SAVE.N.
(Reporting by David Shepardson; editing by Diane Craft)
((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, June 9 (Reuters) - American Airlines AAL.O and JetBlue Airways JBLU.O asked a U.S. judge late Friday to allow them to continue mutual frequent flyer recognition and codeshare arrangements. U.S. District Judge Leo Sorokin ruled on May 19 that the airlines must end their Northeast Alliance (NEA) they used to coordinate flights and pool revenue finding the arrangement means higher prices for consumers and ordering the companies to part ways within 30 days. The Justice Department and six states sued in 2021 to unwind the NEA announced in 2020, calling it a "de facto merger" of the American and JetBlue Boston and New York operations that removes incentives for them to compete.
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By David Shepardson WASHINGTON, June 9 (Reuters) - American Airlines AAL.O and JetBlue Airways JBLU.O asked a U.S. judge late Friday to allow them to continue mutual frequent flyer recognition and codeshare arrangements. The airlines said Sorokin should allow them to continue codesharing and reciprocal frequent flyer programs, arguing such agreements are lawful and "to ensure that the right airline is paid for the service provided to the consumer." The Justice Department argued the alliance gave the airlines more than 80% of market share in flights from Boston to Washington and six other airports including the New York area's JFK, LaGuardia and Newark.
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By David Shepardson WASHINGTON, June 9 (Reuters) - American Airlines AAL.O and JetBlue Airways JBLU.O asked a U.S. judge late Friday to allow them to continue mutual frequent flyer recognition and codeshare arrangements. U.S. District Judge Leo Sorokin ruled on May 19 that the airlines must end their Northeast Alliance (NEA) they used to coordinate flights and pool revenue finding the arrangement means higher prices for consumers and ordering the companies to part ways within 30 days. The airlines said Sorokin should allow them to continue codesharing and reciprocal frequent flyer programs, arguing such agreements are lawful and "to ensure that the right airline is paid for the service provided to the consumer."
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By David Shepardson WASHINGTON, June 9 (Reuters) - American Airlines AAL.O and JetBlue Airways JBLU.O asked a U.S. judge late Friday to allow them to continue mutual frequent flyer recognition and codeshare arrangements. U.S. District Judge Leo Sorokin ruled on May 19 that the airlines must end their Northeast Alliance (NEA) they used to coordinate flights and pool revenue finding the arrangement means higher prices for consumers and ordering the companies to part ways within 30 days. The airlines said Sorokin should allow them to continue codesharing and reciprocal frequent flyer programs, arguing such agreements are lawful and "to ensure that the right airline is paid for the service provided to the consumer."
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2538.0
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2023-06-09 00:00:00 UTC
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U.S. House panel to take up aviation reform measure
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https://www.nasdaq.com/articles/u.s.-house-panel-to-take-up-aviation-reform-measure
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WASHINGTON, June 9 (Reuters) - A U.S. House committee will take up a bill next week that would reauthorization aviation programs and would bar airlines from charging family seating fees but not set minimum seat size requirements or impose new delay compensation rules.
The leaders of the House Transportation and Infrastructure Committee on Friday unveiled a nearly 800-page proposal to reauthorize the Federal Aviation Administration (FAA), aviation safety and infrastructure programs for the next five years.
(Reporting by David Shepardson)
((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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WASHINGTON, June 9 (Reuters) - A U.S. House committee will take up a bill next week that would reauthorization aviation programs and would bar airlines from charging family seating fees but not set minimum seat size requirements or impose new delay compensation rules. The leaders of the House Transportation and Infrastructure Committee on Friday unveiled a nearly 800-page proposal to reauthorize the Federal Aviation Administration (FAA), aviation safety and infrastructure programs for the next five years. (Reporting by David Shepardson) ((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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WASHINGTON, June 9 (Reuters) - A U.S. House committee will take up a bill next week that would reauthorization aviation programs and would bar airlines from charging family seating fees but not set minimum seat size requirements or impose new delay compensation rules. The leaders of the House Transportation and Infrastructure Committee on Friday unveiled a nearly 800-page proposal to reauthorize the Federal Aviation Administration (FAA), aviation safety and infrastructure programs for the next five years. (Reporting by David Shepardson) ((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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WASHINGTON, June 9 (Reuters) - A U.S. House committee will take up a bill next week that would reauthorization aviation programs and would bar airlines from charging family seating fees but not set minimum seat size requirements or impose new delay compensation rules. The leaders of the House Transportation and Infrastructure Committee on Friday unveiled a nearly 800-page proposal to reauthorize the Federal Aviation Administration (FAA), aviation safety and infrastructure programs for the next five years. (Reporting by David Shepardson) ((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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WASHINGTON, June 9 (Reuters) - A U.S. House committee will take up a bill next week that would reauthorization aviation programs and would bar airlines from charging family seating fees but not set minimum seat size requirements or impose new delay compensation rules. The leaders of the House Transportation and Infrastructure Committee on Friday unveiled a nearly 800-page proposal to reauthorize the Federal Aviation Administration (FAA), aviation safety and infrastructure programs for the next five years. (Reporting by David Shepardson) ((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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2539.0
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2023-06-09 00:00:00 UTC
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Airline Stock Roundup: IATA's Bullish Forecast for 2023 Profit, GOL, RYAAY in Focus
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-iatas-bullish-forecast-for-2023-profit-gol-ryaay-in-focus
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In the past week, European carrier Ryanair Holdings RYAAY and Latin Americas’ Gol Linhas’ GOL reported May traffic. The numbers were aided by an upbeat scenario with respect to air travel demand. Also, owing to the buoyant air travel demand scenario, International Air Transport Association or IATA doubled its 2023 net profit projection for airlines across the globe.
American Airlines AAL was another news-maker courtesy of management’s decision to introduce an additional bag fee on transpacific flights. JetBlue Airways JBLU made an expansion-related update in the past week.
Recap of the Past Week’s Most Important Stories
1. In May, 17 million passengers availed Ryanair flights. This compared favorably with the April figure of 16 million and the May 2022 figure of 15.4 million. Owing to upbeat traffic, load factor (percentage of seats filled by passengers) was as high as 94% in May compared with 92% a year ago. RYAAY, currently carrying a Zacks Rank #3 (Hold), operated more than 94,400 flights in May.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AAL was also in the news recently, courtesy of management’s decision to lift the second-quarter 2023 earnings per share forecast. That update was covered in detail in our previous week’s write-up.
2. In May, consolidated revenue passenger kilometers (a measure of air traffic) and available seat kilometers (a measure of capacity) increased 13.1% and 14.9%, respectively, on a year-over-year basis. Load factor was 76.1%. The number of flight departures at GOL in May registered a 20.7% year-over-year increase.
Domestic departures, accounting for more than 95% of total departures during the month, grew 19.3% on a year-over-year basis. On the domestic front, the number of seats increased 19.5% in May. International departures surged 66.9% in May on a year-over-year basis. The consolidated passenger on board metric rose 20.1% year over year.
3. Owing to the buoyant air travel demand scenario, IATA now expects the industry to generate a net profit of $9.8 billion in 2023 compared with $4.7 billion estimated in December last year. The top line in 2023 is now anticipated to be $803 billion compared with the previous estimate of $779 billion. The revised revenue forecast indicates a 9.7% increase from the 2022 actuals. In the event of the revenue forecast coming true, 2023 would be the first year since 2019 (pre-pandemic) when total revenues for airlines across the globe would exceed $800 billion. Notably, revenues were $838 billion in 2019.
Passenger revenues are the biggest driver of the rosy projection for 2023. Per IATA, passenger revenues in 2023 are now anticipated to be $546 billion compared with the previous estimate of $522 billion. The revised revenue forecast indicates a 27% increase from the 2022 actuals.
4. American Airlines has decided to charge $75 for the first checked bag for passengers who booked the cheapest tickets (Basic Economy) on several long-distance flights, including those flying to Israel, Australia and India, among others. Passengers will be charged $100 for the second bag, $200 for the third bag and so on. This change has come into effect from Jun 7.
5 JetBlue has decided to serve two more destinations, Belize and St. Kitts, as part of the attempt to expand its network in the Caribbean. JetBlue will offer nonstop flights (thrice a week: Tuesdays, Thursdays and Sundays) from New York’s John F. Kennedy International Airport (JFK) to Robert Llewellyn Bradshaw International Airport in St. Kitts from Nov 2. Non-stop flights from JFK to Belize City will take to the skies (on Mondays, Wednesdays, and Saturdays) from Dec 6.
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 4.2% to $69.37. Over the course of the past six months, the NYSE ARCA Airline Index has appreciated 17.4%.
What’s Next in the Airline Space?
Stay tuned for the usual news updates in the space.
4 Oil Stocks with Massive Upsides
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Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
Gol Linhas Aereas Inteligentes S.A. (GOL) : 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 was another news-maker courtesy of management’s decision to introduce an additional bag fee on transpacific flights. AAL was also in the news recently, courtesy of management’s decision to lift the second-quarter 2023 earnings per share forecast. Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL) : 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 Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL) : 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 was another news-maker courtesy of management’s decision to introduce an additional bag fee on transpacific flights. AAL was also in the news recently, courtesy of management’s decision to lift the second-quarter 2023 earnings per share forecast.
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Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL) : 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 was another news-maker courtesy of management’s decision to introduce an additional bag fee on transpacific flights. AAL was also in the news recently, courtesy of management’s decision to lift the second-quarter 2023 earnings per share forecast.
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American Airlines AAL was another news-maker courtesy of management’s decision to introduce an additional bag fee on transpacific flights. AAL was also in the news recently, courtesy of management’s decision to lift the second-quarter 2023 earnings per share forecast. Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL) : 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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2540.0
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2023-06-09 00:00:00 UTC
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Zacks.com featured highlights include American Airlines, Bread Financial, American Axle & Manufacturing Holdings, Boise Cascade and Abercrombie & Fitch
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https://www.nasdaq.com/articles/zacks.com-featured-highlights-include-american-airlines-bread-financial-american-axle
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For Immediate Release
Chicago, IL – June 9, 2023 – Stocks in this week’s article are American Airlines AAL, Bread Financial BFH, American Axle & Manufacturing Holdings AXL, Boise Cascade Company BCC and Abercrombie & Fitch ANF.
5 Broker-Favorite Stocks for Investors to Keep an Eye On
The debt-ceiling bill, which was signed into law by President Joe Biden earlier this month, has not only averted a major debt crisis but also seems to have infused life into the U.S. equity markets. The stellar job growth witnessed in May is another positive as far as economic health is concerned. The Labor Department stated that employers added 339,000 new jobs in May, much higher than expected. Moreover, U.S. regional bank stocks are also moving north owing to expectations of a pause in interest rate hikes.
Investors would do well to take advantage of the rosy scenario by focusing on broker-favorite stocks like American Airlines, Bread Financial, American Axle & Manufacturing Holdings, Boise Cascade Company and Abercrombie & Fitch.
Here’s Why Broker-Advice Needs to be Followed
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. They go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations.
As brokers often directly communicate with the top brass, they gain an in-depth understanding of what is happening in a particular company. Therefore, the question of their action being arbitrary does not arise. In fact, a rating upgrade or downgrade by brokers has the potential to influence the price of the stock.
A rating upgrade often leads to stock price appreciation. Similarly, the price of a stock may plummet following a rating downgrade. In view of the above attributes, broker action should be relied on by individual investors, in their quest to form a winning portfolio of stocks.
Formulating a Winning Portfolio
We have designed a screener to arrive at stocks based on improving analyst recommendation and upward earnings estimate revisions over the last four weeks. However, considering only these factors does not make our strategy foolproof as the top line has not been considered.
Actually, according to many market watchers, a top-line outperformance is more creditable for a company than a mere earnings outperformance. To address top-line concerns, we have included the price/sales ratio in our screener which serves as a strong complementary valuation metric.
Here are five of the 10 stocks that made it through the screen:
American Airlines is based in Fort Worth, TX. The gradual increase in air travel demand (particularly for leisure) is aiding AAL. However, high fuel costs are hurting the bottom line.
Over the past 60 days, the Zacks Consensus Estimate for AAL’s 2023 earnings has been revised 12.76% upward. American Airlines currently carries a Zacks Rank #3 (Hold).
Bread Financial, based in Columbus, OH, continues to benefit from data-driven marketing strategies. Solid receivables growth in Card Services should drive its top line. Acquisitions and divestitures will aid the company in growing inorganically and expanding its international footprint.
Over the past 60 days, the Zacks Consensus Estimate for BFH’s 2023 earnings has been revised 21.54% upward. Bread Financial currently carries a Zacks Rank #3.
American Axle’s significant strides and collaborations in the electric drive space bode well for its top- and bottom- line growth. Efforts aimed at diversifying its business, products and customer base are generating impressive results for the company.
American Axle has an impressive surprise history, with its earnings surpassing the Zacks Consensus Estimate in three of the last four quarters (missing the mark on the other occasion). AXL currently carries a Zacks Rank #3.
Abercrombie & Fitch operates as a specialty retailer of premium, high-quality casual apparel for men, women and kids through a network of approximately 850 stores across North America, Europe, Asia and the Middle East.
The company stated recently that its brands performed well in the holiday season. Abercrombie, currently sporting a Zacks Rank #1 (Strong Buy), is working toward rationalizing its store base by reducing its dependence on underperforming tourist-driven locations. The Zacks Consensus Estimate for current-year earnings has increased 32.87% over the past 60 days. You can see the complete list of today’s Zacks #1 Rank 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 #3, 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 5.61% over the past 60 days.
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.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2105629/5-broker-favorite-stocks-for-investors-to-keep-an-eye-on
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.
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Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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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
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
Bread Financial Holdings, Inc. (BFH) : 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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For Immediate Release Chicago, IL – June 9, 2023 – Stocks in this week’s article are American Airlines AAL, Bread Financial BFH, American Axle & Manufacturing Holdings AXL, Boise Cascade Company BCC and Abercrombie & Fitch ANF. The gradual increase in air travel demand (particularly for leisure) is aiding AAL. Over the past 60 days, the Zacks Consensus Estimate for AAL’s 2023 earnings has been revised 12.76% upward.
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For Immediate Release Chicago, IL – June 9, 2023 – Stocks in this week’s article are American Airlines AAL, Bread Financial BFH, American Axle & Manufacturing Holdings AXL, Boise Cascade Company BCC and Abercrombie & Fitch ANF. Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Axle & Manufacturing Holdings, Inc. (AXL) : 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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For Immediate Release Chicago, IL – June 9, 2023 – Stocks in this week’s article are American Airlines AAL, Bread Financial BFH, American Axle & Manufacturing Holdings AXL, Boise Cascade Company BCC and Abercrombie & Fitch ANF. Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Axle & Manufacturing Holdings, Inc. (AXL) : 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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For Immediate Release Chicago, IL – June 9, 2023 – Stocks in this week’s article are American Airlines AAL, Bread Financial BFH, American Axle & Manufacturing Holdings AXL, Boise Cascade Company BCC and Abercrombie & Fitch ANF. The gradual increase in air travel demand (particularly for leisure) is aiding AAL. Over the past 60 days, the Zacks Consensus Estimate for AAL’s 2023 earnings has been revised 12.76% upward.
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2541.0
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2023-06-08 00:00:00 UTC
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July 28th Options Now Available For American Airlines Group (AAL)
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https://www.nasdaq.com/articles/july-28th-options-now-available-for-american-airlines-group-aal
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the July 28th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 28th contracts and identified one put and one call contract of particular interest.
The put contract at the $15.00 strike price has a current bid of 59 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $15.00, but will also collect the premium, putting the cost basis of the shares at $14.41 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $15.39/share today.
Because the $15.00 strike represents an approximate 3% 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 3.93% return on the cash commitment, or 28.71% 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 $15.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $16.00 strike price has a current bid of 58 cents. If an investor was to purchase shares of AAL stock at the current price level of $15.39/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $16.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.73% if the stock gets called away at the July 28th 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 $16.00 strike highlighted in red:
Considering the fact that the $16.00 strike represents an approximate 4% 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 3.77% boost of extra return to the investor, or 27.51% 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 $15.39) to be 46%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
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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 $16.00 strike highlighted in red: Considering the fact that the $16.00 strike represents an approximate 4% 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 July 28th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $16.00 strike highlighted in red: Considering the fact that the $16.00 strike represents an approximate 4% 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 July 28th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 28th 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 $16.00 strike highlighted in red: Considering the fact that the $16.00 strike represents an approximate 4% 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 July 28th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 28th 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 July 28th 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 $16.00 strike highlighted in red: Considering the fact that the $16.00 strike represents an approximate 4% 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 July 28th expiration.
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2542.0
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2023-06-08 00:00:00 UTC
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Here's Why You Should Retain American Airlines (AAL) Stock Now
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AAL
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https://www.nasdaq.com/articles/heres-why-you-should-retain-american-airlines-aal-stock-now
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American Airlines AAL is benefiting from buoyant air-travel-demand scenario, particularly on the domestic front. However, escalating operating costs and low liquidity are worrisome.
Factors Favoring AAL
Owing to upbeat air-travel demand, operating revenues in first-quarter 2023 increased 37% year over year. Passenger revenues, accounting for the bulk of the top line (91.1%), increased to $11,103 million from $7,818 million a year ago.
The anticipated air-travel-demand swell during the summer season and low fuel costs led to the recently issued bullish outlook for second-quarter 2023.
American Airlines, currently carrying a Zacks Rank #3 (Hold), now expects total revenue per available seat miles (a measure of unit revenue) to decline 1-3% from second-quarter 2022 actuals (earlier estimate: a decline of 2-4%). Adjusted operating margin is now anticipated in the 12.5-14.5% band (earlier guidance: 11-13%). Average fuel cost per gallon is now expected in the range of $2.55-$2.65 (prior guidance: $2.65-$2.75).
Available seat miles (a measure of capacity) are still estimated to increase 3.5-5.5% year over year. AAL projects earnings per share (excluding net special items) in the $1.45-$1.65 range (prior view: $1.20-$1.40).
Backed by robust air-travel demand, American Airlines is constantly looking to add routes and broaden network. The carrier's debt-reduction efforts are impressive as well. Management aims to reduce its debt by $15 billion by 2025 end.
Key Risks
Despite declining fuel costs, expenses on labor continue to be high. AAL expects non-fuel unit costs to increase 3.5-5.5% year over year in second-quarter 2023. AAL continues to grapple with pilot shortage in the face of a strong rebound in air-travel demand.
American Airlines’ current ratio (a measure of liquidity) at the end of first-quarter 2023 was 0.72. A current ratio of less than 1 is not desirable as it implies that the company doesn't have enough liquid assets to cover its short-term liabilities.
Stocks to Consider
Some better-ranked stocks for investors interested in the Zacks Airline industry are Copa Holdings CPA and Allegiant Travel Company ALGT. Each stocks is currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings is benefiting from an improvement in air-travel demand. In first-quarter 2023, passenger revenues increased 28.5% from first-quarter 2019 levels due to higher yields.
CPA’s focus on its cargo segment is encouraging. In first-quarter 2023, cargo and mail revenues grew 51.8% from first-quarter 2019 levels on higher cargo volumes and yields.
Copa Holdings' fleet modernization and cost-management efforts are commendable. The Zacks Consensus Estimate for current-year earnings has been revised 21.05% upward over the past 60 days.
Allegiant is seeing a steady recovery in air-travel demand. In first-quarter 2023, operating revenues grew 29.9% on a year-over-year basis. Passenger revenues, accounting for 93.7% of the top line, increased 31.3% on a year-over-year basis.
Allegiant's fleet-modernization efforts are encouraging. The Zacks Consensus Estimate for ALGT's current-year earnings has been revised upward by 42.37% in the past 60 days.
Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the $30 Trillion Metaverse Boom
It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation.
>>Show me how I could profit from the metaverse!
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
Copa Holdings, S.A. (CPA) : 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 AAL is benefiting from buoyant air-travel-demand scenario, particularly on the domestic front. Factors Favoring AAL Owing to upbeat air-travel demand, operating revenues in first-quarter 2023 increased 37% year over year. AAL projects earnings per share (excluding net special items) in the $1.45-$1.65 range (prior view: $1.20-$1.40).
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Click to get this free report Copa Holdings, S.A. (CPA) : 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 AAL is benefiting from buoyant air-travel-demand scenario, particularly on the domestic front. Factors Favoring AAL Owing to upbeat air-travel demand, operating revenues in first-quarter 2023 increased 37% year over year.
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Click to get this free report Copa Holdings, S.A. (CPA) : 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 AAL is benefiting from buoyant air-travel-demand scenario, particularly on the domestic front. Factors Favoring AAL Owing to upbeat air-travel demand, operating revenues in first-quarter 2023 increased 37% year over year.
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Factors Favoring AAL Owing to upbeat air-travel demand, operating revenues in first-quarter 2023 increased 37% year over year. American Airlines AAL is benefiting from buoyant air-travel-demand scenario, particularly on the domestic front. AAL projects earnings per share (excluding net special items) in the $1.45-$1.65 range (prior view: $1.20-$1.40).
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2543.0
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2023-06-08 00:00:00 UTC
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Guru Fundamental Report for AAL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aal-10
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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 mid-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 NASDAQ 100 Stocks
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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 mid-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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2544.0
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2023-06-08 00:00:00 UTC
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5 Broker-Favorite Stocks for Investors to Keep an Eye On
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https://www.nasdaq.com/articles/5-broker-favorite-stocks-for-investors-to-keep-an-eye-on
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The debt-ceiling bill, which was signed into law by President Joe Biden earlier this month, has not only averted a major debt crisis but also seems to have infused life into the U.S. equity markets. The stellar job growth witnessed in May is another positive as far as economic health is concerned. The Labor Department stated that employers added 339,000 new jobs in May, much higher than expected. Moreover, U.S. regional bank stocks are also moving north owing to expectations of a pause in interest rate hikes.
Investors would do well to take advantage of the rosy scenario by focusing on broker-favorite stocks like American Airlines AAL, Bread Financial BFH, American Axle & Manufacturing Holdings AXL, Boise Cascade Company BCC and Abercrombie & Fitch ANF.
Here’s Why Broker-Advice Needs to be Followed
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. They go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations.
As brokers often directly communicate with the top brass, they gain an in-depth understanding of what is happening in a particular company. Therefore, the question of their action being arbitrary does not arise. In fact, a rating upgrade or downgrade by brokers has the potential to influence the price of the stock.
A rating upgrade often leads to stock price appreciation. Similarly, the price of a stock may plummet following a rating downgrade. In view of the above attributes, broker action should be relied on by individual investors, in their quest to form a winning portfolio of stocks.
Formulating a Winning Portfolio
We have designed a screener to arrive at stocks based on improving analyst recommendation and upward earnings estimate revisions over the last four weeks. However, considering only these factors does not make our strategy foolproof as the top line has not been considered.
Actually, according to many market watchers, a top-line outperformance is more creditable for a company than a mere earnings outperformance. To address top-line concerns, we have included the price/sales ratio in our screener 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).
We have also added the following screening parameters to ensure that the strategy is a winning one:
Price-to-Sales = Bot%10(The lower the ratio the better, companies meeting this criteria are in bottom 10% of our universe of over 7,700 stocks with respect to this ratio).
Price greater than 5(as a stock trading below $5 will not likely create significant interest for most of the investors).
Average Daily Volume greater than 100,000 shares over the last 20 trading days(Volume has to be significant to ensure that these are easily traded).
Market value ($ mil) = Top #3000(This gives us stocks that are the top 3000 in terms of 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 is based in Fort Worth, TX. The gradual increase in air travel demand (particularly for leisure) is aiding AAL. However, high fuel costs are hurting the bottom line.
Over the past 60 days, the Zacks Consensus Estimate for AAL’s 2023 earnings has been revised 12.76% upward. American Airlines currently carries a Zacks Rank #3 (Hold).
Bread Financial, based in Columbus, OH, continues to benefit from data-driven marketing strategies. Solid receivables growth in Card Services should drive its top line. Acquisitions and divestitures will aid the company in growing inorganically and expanding its international footprint.
Over the past 60 days, the Zacks Consensus Estimate for BFH’s 2023 earnings has been revised 21.54% upward. Bread Financial currently carries a Zacks Rank #3.
American Axle’s significant strides and collaborations in the electric drive space bode well for its top- and bottom- line growth. Efforts aimed at diversifying its business, products and customer base are generating impressive results for the company.
American Axle has an impressive surprise history, with its earnings surpassing the Zacks Consensus Estimate in three of the last four quarters (missing the mark on the other occasion). AXL currently carries a Zacks Rank #3.
Abercrombie & Fitch operates as a specialty retailer of premium, high-quality casual apparel for men, women and kids through a network of approximately 850 stores across North America, Europe, Asia and the Middle East.
The company stated recently that its brands performed well in the holiday season. Abercrombie, currently sporting a Zacks Rank #1 (Strong Buy), is working toward rationalizing its store base by reducing its dependence on underperforming tourist-driven locations. The Zacks Consensus Estimate for current-year earnings has increased 32.87% over the past 60 days. You can see the complete list of today’s Zacks #1 Rank 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 #3, 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 5.61% over the past 60 days.
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.
Just Released: Free Report Reveals Little-Known Strategies to Help Profit from the $30 Trillion Metaverse Boom
It's undeniable. The metaverse is gaining steam every day. Just follow the money. Google. Microsoft. Adobe. Nike. Facebook even rebranded itself as Meta because Mark Zuckerberg believes the metaverse is the next iteration of the internet. The inevitable result? Many investors will get rich as the metaverse evolves. What do they know that you don't? They’re aware of the companies best poised to grow as the metaverse does. And in a new FREE report, Zacks is revealing those stocks to you. This week, you can download, The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks. It reveals specific stocks set to skyrocket as this emerging technology develops and expands. Don't miss your chance to access it for free with no obligation.
>>Show me how I could profit from the metaverse!
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
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
Bread Financial Holdings, Inc. (BFH) : 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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Investors would do well to take advantage of the rosy scenario by focusing on broker-favorite stocks like American Airlines AAL, Bread Financial BFH, American Axle & Manufacturing Holdings AXL, Boise Cascade Company BCC and Abercrombie & Fitch ANF. The gradual increase in air travel demand (particularly for leisure) is aiding AAL. Over the past 60 days, the Zacks Consensus Estimate for AAL’s 2023 earnings has been revised 12.76% upward.
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Investors would do well to take advantage of the rosy scenario by focusing on broker-favorite stocks like American Airlines AAL, Bread Financial BFH, American Axle & Manufacturing Holdings AXL, Boise Cascade Company BCC and Abercrombie & Fitch ANF. Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Axle & Manufacturing Holdings, Inc. (AXL) : 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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Investors would do well to take advantage of the rosy scenario by focusing on broker-favorite stocks like American Airlines AAL, Bread Financial BFH, American Axle & Manufacturing Holdings AXL, Boise Cascade Company BCC and Abercrombie & Fitch ANF. Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Axle & Manufacturing Holdings, Inc. (AXL) : 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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Investors would do well to take advantage of the rosy scenario by focusing on broker-favorite stocks like American Airlines AAL, Bread Financial BFH, American Axle & Manufacturing Holdings AXL, Boise Cascade Company BCC and Abercrombie & Fitch ANF. The gradual increase in air travel demand (particularly for leisure) is aiding AAL. Over the past 60 days, the Zacks Consensus Estimate for AAL’s 2023 earnings has been revised 12.76% upward.
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2545.0
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2023-06-07 00:00:00 UTC
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American Airlines (AAL) Gains As Market Dips: What You Should Know
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-gains-as-market-dips%3A-what-you-should-know-7
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American Airlines (AAL) closed at $15.16 in the latest trading session, marking a +1.54% move from the prior day. This move outpaced the S&P 500's daily loss of 0.38%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq lost 4.19%.
Prior to today's trading, shares of the world's largest airline had gained 3.18% over the past month. This has outpaced the Transportation sector's loss of 0.53% and lagged the S&P 500's gain of 3.78% in that time.
American Airlines will be looking to display strength as it nears its next earnings release. In that report, analysts expect American Airlines to post earnings of $1.40 per share. This would mark year-over-year growth of 84.21%. Our most recent consensus estimate is calling for quarterly revenue of $13.69 billion, up 2.02% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.74 per share and revenue of $52.9 billion. These totals would mark changes of +448% and +8.03%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for American Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. The Zacks Consensus EPS estimate has moved 1.78% higher within the past month. 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 5.44 right now. This represents a discount compared to its industry's average Forward P/E of 10.46.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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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) closed at $15.16 in the latest trading session, marking a +1.54% move from the prior 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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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. American Airlines (AAL) closed at $15.16 in the latest trading session, marking a +1.54% move from the prior day. Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.74 per share and revenue of $52.9 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. American Airlines (AAL) closed at $15.16 in the latest trading session, marking a +1.54% move from the prior day. Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.74 per share and revenue of $52.9 billion.
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American Airlines (AAL) closed at $15.16 in the latest trading session, marking a +1.54% move from the prior 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 a Zacks Rank #3 (Hold).
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2546.0
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2023-06-06 00:00:00 UTC
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4 Sector ETFs & Stocks to Bet on Superb May Jobs Data
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AAL
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https://www.nasdaq.com/articles/4-sector-etfs-stocks-to-bet-on-superb-may-jobs-data
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The U.S. economy added 339,000 jobs in May 2023, the maximum in four months, and breezing past market forecasts of 190,000. Figures for March and April were revised up, bringing employment 93,000 higher than previously reported. Figures hint at a tight labor market, with employment rising by an average of 314,000 per month so far this year.
In May, average hourly earnings for all employees on private nonfarm payrolls increased by 11 cents, or 0.3%, to $33.44. Over the past 12 months, average hourly earnings have risen 4.3%. In May, average hourly earnings of private-sector production and nonsupervisory employees grew by 13 cents, or 0.5% to $28.75.
The average workweek for all employees on private nonfarm payrolls dropped by 0.1 hour to 34.3 hours in May. In manufacturing, the average workweek was same at 40.1 hours, and overtime increased by 0.1 hour to 3.0 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls was 33.8 hours.
Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the May jobs data.
Sectors in Focus
Healthcare
Employment in the healthcare industry increased by 52,000 in May, in line with the average monthly gain of 50,000 over the past one year. Job gains occurred in ambulatory health care services (+24,000) and hospitals (+20,000). Employment continued to increase in nursing and residential care facilities (+9,000).
Health Care Select Sector SPDR ETF XLV can be played to tap the moderate momentum. HCA Healthcare HCA, which has a Zacks Rank #3 (Hold) deserves a mention. It is the largest non-governmental operator of acute care hospitals in the U.S. Headquartered in Nashville, TN, it operates hospitals and related health care entities.
Leisure
Employment in leisure and hospitality rose by 48,000. Leisure and hospitality added an average of 77,000 jobs per month in the past one year. Employment in the industry remains below its pre-pandemic February 2020 level by 2.1%. Over the month, food services and drinking places added 33,000 jobs.
The data makes Invesco Dynamic Leisure and Entertainment ETF PEJ a timely investment. The Zacks Rank #1 (Strong Buy) Chipotle Mexican Grill CMG, together with its subsidiaries, operates quick-casual and fresh Mexican food restaurant chains. The stock could be a good pick in this category.
Construction
In May, employment in construction (+25,000), higher than with average monthly job growth (+17,000) in past one year. Job growth in heavy and civil engineering construction was 11,000 in May. Investors can keep a watch on the price movement of Invesco Dynamic Building & Construction ETF PKB.
As far as the stock is concerned, Zacks Rank #1 Dycom Industries DY is a top bet. It is a leading provider of specialty contracting services throughout the United States.
Transportation
Employment in transportation and warehousing rose by 24,000 in May. However, job growth in transportation and warehousing has shown no clear trend in recent months. Over the month, Transit and ground passenger transportation added 12,000 jobs, making up for a decline in the prior month.
In May, employment also increased in couriers and messengers (+8,000) and air transportation (+3,000) were also notable. Zacks Rank #2 (Buy) SPDR S&P Transportation ETF XTN can thus be considered for a play. Airlines company American Airlines AAL has a Zacks Rank #3.
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Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Dycom Industries, Inc. (DY) : Free Stock Analysis Report
Health Care Select Sector SPDR ETF (XLV): ETF Research Reports
Invesco Dynamic Building & Construction ETF (PKB): ETF Research Reports
Invesco Dynamic Leisure and Entertainment ETF (PEJ): ETF Research Reports
SPDR S&P Transportation ETF (XTN): 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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Airlines company American Airlines AAL has a Zacks Rank #3. Click to get this free report Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Dycom Industries, Inc. (DY) : Free Stock Analysis Report Health Care Select Sector SPDR ETF (XLV): ETF Research Reports Invesco Dynamic Building & Construction ETF (PKB): ETF Research Reports Invesco Dynamic Leisure and Entertainment ETF (PEJ): ETF Research Reports SPDR S&P Transportation ETF (XTN): ETF Research Reports To read this article on Zacks.com click here. Figures hint at a tight labor market, with employment rising by an average of 314,000 per month so far this year.
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Click to get this free report Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Dycom Industries, Inc. (DY) : Free Stock Analysis Report Health Care Select Sector SPDR ETF (XLV): ETF Research Reports Invesco Dynamic Building & Construction ETF (PKB): ETF Research Reports Invesco Dynamic Leisure and Entertainment ETF (PEJ): ETF Research Reports SPDR S&P Transportation ETF (XTN): ETF Research Reports To read this article on Zacks.com click here. Airlines company American Airlines AAL has a Zacks Rank #3. Leisure Employment in leisure and hospitality rose by 48,000. Leisure and hospitality added an average of 77,000 jobs per month in the past one year.
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Click to get this free report Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Dycom Industries, Inc. (DY) : Free Stock Analysis Report Health Care Select Sector SPDR ETF (XLV): ETF Research Reports Invesco Dynamic Building & Construction ETF (PKB): ETF Research Reports Invesco Dynamic Leisure and Entertainment ETF (PEJ): ETF Research Reports SPDR S&P Transportation ETF (XTN): ETF Research Reports To read this article on Zacks.com click here. Airlines company American Airlines AAL has a Zacks Rank #3. Leisure Employment in leisure and hospitality rose by 48,000. Leisure and hospitality added an average of 77,000 jobs per month in the past one year.
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Click to get this free report Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Dycom Industries, Inc. (DY) : Free Stock Analysis Report Health Care Select Sector SPDR ETF (XLV): ETF Research Reports Invesco Dynamic Building & Construction ETF (PKB): ETF Research Reports Invesco Dynamic Leisure and Entertainment ETF (PEJ): ETF Research Reports SPDR S&P Transportation ETF (XTN): ETF Research Reports To read this article on Zacks.com click here. Airlines company American Airlines AAL has a Zacks Rank #3. Leisure Employment in leisure and hospitality rose by 48,000. Leisure and hospitality added an average of 77,000 jobs per month in the past one year.
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2547.0
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2023-06-06 00:00:00 UTC
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Zacks Industry Outlook Highlights American Airlines, Copa Holdings and Allegiant Travel Company
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AAL
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-american-airlines-copa-holdings-and-allegiant-travel
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For Immediate Release
Chicago, IL – June 6, 2023 – Today, Zacks Equity Research discusses American Airlines AAL, Copa Holdings CPA and Allegiant Travel Company ALGT.
3 Airline Stocks to Keep a Tab on Amid Rosy Passenger Traffic
Prospects of Zacks Transportation - Airline industry’s participants are being buoyed by the stronger-than-expected recovery in air travel demand from the pandemic lows. Air travel continues to be particularly strong on the leisure front. What is more encouraging is that international demand is also bouncing back nicely. Low fuel costs represent another tailwind for airline stocks.
Driven by the abovementioned positives, investors interested in the industry would do well to keep stocks like American Airlines, Copa Holdings and Allegiant Travel Company on their radar.
About the Industry
The Zacks Airline industry includes players engaged in transporting passengers and cargo to various destinations globally. Most operators maintain a fleet of multiple mainline jets in addition to several regional planes. Operations are aided by their regional airline subsidiaries and third-party regional carriers. Additionally, industry players utilize their respective cargo divisions to offer a wide range of freight and mail services. The players invest substantially to upgrade technology. The industry, apart from comprising legacy carriers, includes low-cost players. The well-being of companies in this group is linked to the health of the overall economy. For example, the aviation space was one of the worst pandemic-hit corners, with passenger revenues taking a beating. However, air-travel demand is extremely rosy now. The focus on boosting cargo revenues is a positive too.
Factors Relevant to the Industry's Fortunes
Buoyant Air Traffic Scenario: The stronger-than-expected recovery in air-travel demand from pandemic lows is a huge positive for the industry, which was one of the worst-hit industries in the peak COVID-19 period. People are again resorting to air travel with the resumption of normal activities. Airline stocks are likely to continue flying high with the summer travel season fast approaching when air-travel demand is likely to swell. Per Airlines for America, U.S. airlines are anticipated to carry 257 million passengers from Jun 1 to Aug 31, 2023. The projection is at an all-time high.
Owing to the buoyant scenario with respect to air-travel demand, the International Air Transport Association or IATA has doubled its current-year profitability (net) forecast for the industry to $9.8 billion from $4.7 billion. The top line in 2023 is now anticipated to be $803 billion compared with the previous estimate of $779 billion. The revised revenue forecast indicates a 9.7% increase from the 2022 actuals. Passenger revenues are the biggest driver of this rosy projection. Per IATA, passenger revenues in 2023 are now anticipated to be $546 billion compared with the previous estimate of $522 billion. The revised revenue forecast indicates a 27% increase from the 2022 actuals.
Declining Fuel Costs: The southward movement of oil price bodes well for the bottom-line growth of industry participants. This is because fuel expenses are a significant input cost for the aviation space. Notably, oil price declined 5.7% in the January-March period of 2023. Per IATA, the average jet fuel cost is expected to be $98.5 per barrel in 2023 (earlier forecast was $111.9 per barrel).
High Labor Costs: Increased operating costs are limiting bottom-line growth. Per IATA, total expenses are expected to be $781 billion in 2023. The cost forecast indicates an 8.1% increase from the 2022 actuals. With expenses on fuel moving south, costs will likely continue to be steep going forward due to escalated labor costs. Moreover, with U.S. airlines grappling with pilot shortage, the bargaining power of this labor group has increased. As a result, we have seen pay-hike deals being inked in the space. This will result in an increase in labor costs.
Zacks Industry Rank Signals Bright Prospects
The Zacks Airline industry is a 26-stock group within the broader Zacks Transportation sector. The industry currently carries a Zacks Industry Rank #49, which places it in the top 20% of 250 plus Zacks industries.
The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential. The industry’s earnings estimate for 2023 has moved up 38.9% since September 2022.
Before we present a few stocks that you may want to add or retain in your portfolio, let’s look at the industry’s recent stock-market performance and its valuation picture.
Industry Lags S&P 500 But Outperforms Sector
Over the past year, the Zacks Transportation - Airline industry has declined 4% against the S&P 500 composite’s rise of 4.2%. The broader sector has declined 5.5% in the said time frame.
Valuation Picture
The price/sales (P/S) ratio is often used to value airline stocks. The industry currently has a forward 12-month P/S of 0.41X compared with the S&P 500’s 3.68X. It is also below the sector’s forward-12-month P/S of 1.52X.
Over the past five years, the industry has traded as high as 1.02X, as low as 0.33X and at the median of 0.65X.
3 Stocks to Keep a Tab on
Copa Holdings, currently sporting a Zacks Rank #1 (Strong Buy), is benefiting from an improvement in air-travel demand. In first-quarter 2023, passenger revenues increased 28.5% from first-quarter 2019 levels due to higher yields. You can see the complete list of today’s Zacks #1 Rank stocks here.
CPA’s focus on its cargo segment is encouraging. In first-quarter 2023, cargo and mail revenues grew 51.8% at this Latin American carrier from first-quarter 2019 levels on higher volumes and yields.
Copa Holdings' fleet modernization and cost-management efforts are commendable. The Zacks Consensus Estimate for current-year earnings has been revised 21.3% upward over the past 60 days.
Allegiant is seeing a steady recovery in domestic and leisure air travel demand. In first-quarter 2023, this Las Vegas, NV-based company’s operating revenues grew 29.9% on a year-over-year basis. Passenger revenues, accounting for 93.7% of the top line, increased 31.3% on a year-over-year basis.
Allegiant's fleet-modernization efforts are encouraging. The Zacks Consensus Estimate for ALGT's current-year earnings has been revised upward by 42.6% in the past 60 days. The stock currently sports a Zacks Rank #1.
American Airlines, currently carrying a Zacks Rank #3 (Hold), is benefiting from an improvement in air-travel demand. Driven by the rosy passenger traffic scenario and low fuel costs, AAL’s management recently lifted its second-quarter 2023 earnings per share (excluding net special items) view and now expects the same to be in the $1.45-$1.65 range (earlier guidance: $1.20-$1.40).
Second-quarter 2023, adjusted operating margin is now anticipated in the 12.5-14.5% band (earlier guidance:11-13%). Average fuel cost per gallon is now expected in the range of $2.55-$2.65 (earlier guidance: $2.65-$2.75). The Zacks Consensus Estimate for AAL's current-year earnings has been revised upward by 11.5% in the past 60 days.
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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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Copa Holdings, S.A. (CPA) : 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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For Immediate Release Chicago, IL – June 6, 2023 – Today, Zacks Equity Research discusses American Airlines AAL, Copa Holdings CPA and Allegiant Travel Company ALGT. Driven by the rosy passenger traffic scenario and low fuel costs, AAL’s management recently lifted its second-quarter 2023 earnings per share (excluding net special items) view and now expects the same to be in the $1.45-$1.65 range (earlier guidance: $1.20-$1.40). The Zacks Consensus Estimate for AAL's current-year earnings has been revised upward by 11.5% in the past 60 days.
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For Immediate Release Chicago, IL – June 6, 2023 – Today, Zacks Equity Research discusses American Airlines AAL, Copa Holdings CPA and Allegiant Travel Company ALGT. Click to get this free report Copa Holdings, S.A. (CPA) : 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. Driven by the rosy passenger traffic scenario and low fuel costs, AAL’s management recently lifted its second-quarter 2023 earnings per share (excluding net special items) view and now expects the same to be in the $1.45-$1.65 range (earlier guidance: $1.20-$1.40).
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Click to get this free report Copa Holdings, S.A. (CPA) : 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. For Immediate Release Chicago, IL – June 6, 2023 – Today, Zacks Equity Research discusses American Airlines AAL, Copa Holdings CPA and Allegiant Travel Company ALGT. Driven by the rosy passenger traffic scenario and low fuel costs, AAL’s management recently lifted its second-quarter 2023 earnings per share (excluding net special items) view and now expects the same to be in the $1.45-$1.65 range (earlier guidance: $1.20-$1.40).
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For Immediate Release Chicago, IL – June 6, 2023 – Today, Zacks Equity Research discusses American Airlines AAL, Copa Holdings CPA and Allegiant Travel Company ALGT. Driven by the rosy passenger traffic scenario and low fuel costs, AAL’s management recently lifted its second-quarter 2023 earnings per share (excluding net special items) view and now expects the same to be in the $1.45-$1.65 range (earlier guidance: $1.20-$1.40). The Zacks Consensus Estimate for AAL's current-year earnings has been revised upward by 11.5% in the past 60 days.
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2023-06-05 00:00:00 UTC
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3 Airline Stocks to Keep a Tab on Amid Rosy Passenger Traffic
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AAL
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https://www.nasdaq.com/articles/3-airline-stocks-to-keep-a-tab-on-amid-rosy-passenger-traffic
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Prospects of Zacks Transportation - Airline industry’s participants are being buoyed by the stronger-than-expected recovery in air travel demand from the pandemic lows. Air travel continues to be particularly strong on the leisure front. What is more encouraging is that international demand is also bouncing back nicely. Low fuel costs represent another tailwind for airline stocks.
Driven by the abovementioned positives, investors interested in the industry would do well to keep stocks like American Airlines AAL, Copa Holdings CPA and Allegiant Travel Company ALGT on their radar.
About the Industry
The Zacks Airline industry includes players engaged in transporting passengers and cargo to various destinations globally. Most operators maintain a fleet of multiple mainline jets in addition to several regional planes. Operations are aided by their regional airline subsidiaries and third-party regional carriers. Additionally, industry players utilize their respective cargo divisions to offer a wide range of freight and mail services. The players invest substantially to upgrade technology. The industry, apart from comprising legacy carriers, includes low-cost players. The well-being of companies in this group is linked to the health of the overall economy. For example, the aviation space was one of the worst pandemic-hit corners, with passenger revenues taking a beating. However, air-travel demand is extremely rosy now. The focus on boosting cargo revenues is a positive too.
Factors Relevant to the Industry's Fortunes
Buoyant Air Traffic Scenario: The stronger-than-expected recovery in air-travel demand from pandemic lows is a huge positive for the industry, which was one of the worst-hit industries in the peak COVID-19 period. People are again resorting to air travel with the resumption of normal activities. Airline stocks are likely to continue flying high with the summer travel season fast approaching when air-travel demand is likely to swell. Per Airlines for America, U.S. airlines are anticipated to carry 257 million passengers from Jun 1 to Aug 31, 2023. The projection is at an all-time high.
Owing to the buoyant scenario with respect to air-travel demand, the International Air Transport Association or IATA has doubled its current-year profitability (net) forecast for the industry to $9.8 billion from $4.7 billion. The top line in 2023 is now anticipated to be $803 billion compared with the previous estimate of $779 billion. The revised revenue forecast indicates a 9.7% increase from the 2022 actuals. Passenger revenues are the biggest driver of this rosy projection. Per IATA, passenger revenues in 2023 are now anticipated to be $546 billion compared with the previous estimate of $522 billion. The revised revenue forecast indicates a 27% increase from the 2022 actuals.
Declining Fuel Costs: The southward movement of oil price bodes well for the bottom-line growth of industry participants. This is because fuel expenses are a significant input cost for the aviation space. Notably, oil price declined 5.7% in the January-March period of 2023. Per IATA, the average jet fuel cost is expected to be $98.5 per barrel in 2023 (earlier forecast was $111.9 per barrel).
High Labor Costs: Increased operating costs are limiting bottom-line growth. Per IATA, total expenses are expected to be $781 billion in 2023. The cost forecast indicates an 8.1% increase from the 2022 actuals. With expenses on fuel moving south, costs will likely continue to be steep going forward due to escalated labor costs. Moreover, with U.S. airlines grappling with pilot shortage, the bargaining power of this labor group has increased. As a result, we have seen pay-hike deals being inked in the space. This will result in an increase in labor costs.
Zacks Industry Rank Signals Bright Prospects
The Zacks Airline industry is a 26-stock group within the broader Zacks Transportation sector. The industry currently carries a Zacks Industry Rank #49, which places it in the top 20% of 250 plus Zacks industries.
The group’s Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are optimistic about this group’s earnings growth potential. The industry’s earnings estimate for 2023 has moved up 38.9% since September 2022.
Before we present a few stocks that you may want to add or retain in your portfolio, let’s look at the industry’s recent stock-market performance and its valuation picture.
Industry Lags S&P 500 But Outperforms Sector
Over the past year, the Zacks Transportation - Airline industry has declined 4% against the S&P 500 composite’s rise of 4.2%. The broader sector has declined 5.5% in the said time frame.
One-Year Price Performance
Valuation Picture
The price/sales (P/S) ratio is often used to value airline stocks. The industry currently has a forward 12-month P/S of 0.41X compared with the S&P 500’s 3.68X. It is also below the sector’s forward-12-month P/S of 1.52X.
Over the past five years, the industry has traded as high as 1.02X, as low as 0.33X and at the median of 0.65X.
Forward 12-Month Price-to-Sales Ratio (Past Five Years)
3 Stocks to Keep a Tab on
Copa Holdings, currently sporting a Zacks Rank #1 (Strong Buy), is benefiting from an improvement in air-travel demand. In first-quarter 2023, passenger revenues increased 28.5% from first-quarter 2019 levels due to higher yields. You can see the complete list of today’s Zacks #1 Rank stocks here.
CPA’s focus on its cargo segment is encouraging. In first-quarter 2023, cargo and mail revenues grew 51.8% at this Latin American carrier from first-quarter 2019 levels on higher volumes and yields.
Copa Holdings' fleet modernization and cost-management efforts are commendable. The Zacks Consensus Estimate for current-year earnings has been revised 21.3% upward over the past 60 days.
Price and Consensus: CPA
Allegiant is seeing a steady recovery in domestic and leisure air travel demand. In first-quarter 2023, this Las Vegas, NV-based company’s operating revenues grew 29.9% on a year-over-year basis. Passenger revenues, accounting for 93.7% of the top line, increased 31.3% on a year-over-year basis.
Allegiant's fleet-modernization efforts are encouraging. The Zacks Consensus Estimate for ALGT's current-year earnings has been revised upward by 42.6% in the past 60 days. The stock currently sports a Zacks Rank #1.
Price and Consensus: ALGT
American Airlines, currently carrying a Zacks Rank #3 (Hold), is benefiting from an improvement in air-travel demand. Driven by the rosy passenger traffic scenario and low fuel costs, AAL’s management recently lifted its second-quarter 2023 earnings per share (excluding net special items) view and now expects the same to be in the $1.45-$1.65 range (earlier guidance: $1.20-$1.40).
Second-quarter 2023, adjusted operating margin is now anticipated in the 12.5-14.5% band (earlier guidance:11-13%). Average fuel cost per gallon is now expected in the range of $2.55-$2.65 (earlier guidance: $2.65-$2.75). The Zacks Consensus Estimate for AAL's current-year earnings has been revised upward by 11.5% in the past 60 days.
Price and Consensus: AAL
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American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : 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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Driven by the abovementioned positives, investors interested in the industry would do well to keep stocks like American Airlines AAL, Copa Holdings CPA and Allegiant Travel Company ALGT on their radar. Driven by the rosy passenger traffic scenario and low fuel costs, AAL’s management recently lifted its second-quarter 2023 earnings per share (excluding net special items) view and now expects the same to be in the $1.45-$1.65 range (earlier guidance: $1.20-$1.40). The Zacks Consensus Estimate for AAL's current-year earnings has been revised upward by 11.5% in the past 60 days.
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Driven by the abovementioned positives, investors interested in the industry would do well to keep stocks like American Airlines AAL, Copa Holdings CPA and Allegiant Travel Company ALGT on their radar. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here. Driven by the rosy passenger traffic scenario and low fuel costs, AAL’s management recently lifted its second-quarter 2023 earnings per share (excluding net special items) view and now expects the same to be in the $1.45-$1.65 range (earlier guidance: $1.20-$1.40).
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report Allegiant Travel Company (ALGT) : Free Stock Analysis Report To read this article on Zacks.com click here. Driven by the abovementioned positives, investors interested in the industry would do well to keep stocks like American Airlines AAL, Copa Holdings CPA and Allegiant Travel Company ALGT on their radar. Driven by the rosy passenger traffic scenario and low fuel costs, AAL’s management recently lifted its second-quarter 2023 earnings per share (excluding net special items) view and now expects the same to be in the $1.45-$1.65 range (earlier guidance: $1.20-$1.40).
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Driven by the abovementioned positives, investors interested in the industry would do well to keep stocks like American Airlines AAL, Copa Holdings CPA and Allegiant Travel Company ALGT on their radar. Driven by the rosy passenger traffic scenario and low fuel costs, AAL’s management recently lifted its second-quarter 2023 earnings per share (excluding net special items) view and now expects the same to be in the $1.45-$1.65 range (earlier guidance: $1.20-$1.40). The Zacks Consensus Estimate for AAL's current-year earnings has been revised upward by 11.5% in the past 60 days.
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2023-06-05 00:00:00 UTC
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3 Stocks Under $20 to Buy (and Never Sell)
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AAL
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https://www.nasdaq.com/articles/3-stocks-under-%2420-to-buy-and-never-sell
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Retail investors typically only have a small amount of capital to start investing with. Accordingly, seeing all these popular large-cap stocks trading well over $100 per share can seem daunting. Nevertheless, there are plenty of stocks under $20 to consider investing in, that may provide similar upside to the more expensive names.
Many companies that trade at or below the $20 per share mark still trade in large volume, have decent dividend yields, and even better long-term potential. Below are a few stocks that reach those criteria. These are companies I think investors should consider holding in their portfolio for the long-term.
MPW Medical Properties Trust $8.25
F Ford $12.39
AAL American Airlines $14.87
Medical Properties Trust (MPW)
Source: Shutterstock
Medical Properties Trust (NYSE:MPW) is a real estate investment trust (REIT) that was founded in 2003 in Birmingham, Alabama. The company develops and acquires real estate assets, with a focus on medical facilities. The REIT holds over 400 properties globally in its portfolio, with the entire REIT currently valued around $5 billion. The company’s portfolio is comprised of acute care hospitals, behavioral health clinics, and rehabilitation centers.
In April, Medical Properties Trust reported first quarter earnings, which showed a disappointing year-over-year revenue decline of 15%. Additionally, the company acquired no new property for the first quarter. However, the REIT’s management team did predict acquisitions in Europe for the second quarter.
Over the past year, rising interest rates have hit the real estate market hard. And Medical Properties Trust is no different. As a result, they have seen recent revenue and share price decline. But, a large footprint of medical facilities and projected acquisitions, and a potential rebound in the real estate market, make it a stock to keep an eye on. Alongside first-quarter earnings, the REIT announced a quarterly dividend of $0.29 per share.
Ford (F)
Source: TY Lim / Shutterstock.com
Ford (NYSE:F) is perhaps one of the best-known auto manufacturers worldwide. The company produces a wide range of vehicles, but is most known for its line of pickup trucks and, more notably, its new electric truck, the Ford F-150 Lightning. They also own the brand Lincoln, their luxury line of vehicles, and offer auto financing and parts servicing.
The company reported its first quarter earnings in early-May. Net income came in at $1.6 billion, supported by impressive revenue growth of 20% on a year-over-year basis.
Ford has been heavily involved in the EV market as of late, releasing key models such as the Ford Lightning F-150, Mustang Mach-E, electric transit vans, and the electric Explorer crossover, which was announced in March. Additionally, Ford’s stock price saw a 10% jump last week following the news of their partnership with Tesla (NASDAQ:TSLA). This partnership will allow Ford customers to have access to Tesla’s supercharger infrastructure starting in spring 2024.
With a decent grasp on the EV market, relative stability, and a quarterly dividend of $0.15 per share, Ford is a stock to hold onto.
American Airlines (AAL)
Source: GagliardiPhotography / Shutterstock.com
American Airlines (NASDAQ:AAL), Headquartered in Fort Worth, Texas, is an international air carrier offering cargo and passenger transportation services. In 2015 the stock was added to the S&P 500 Index.
In April, the company released its first quarter earnings, posting a total revenue increase of 37% and earnings per share growth of 2 cents on a year-over-year basis. The airline industry has seen continued deemed for travel following the years of the pandemic. Thus, it shouldn’t be a surprise that American Airlines has seen increased strength in its long-haul flight segment. The company saw nearly half a million record flights in the first quarter. This led to a strong forecast of earnings per share in Q2 to come in between $1.20 and $1.40 per share.
The airline industry is performing very well due to the strong travel demand, with growth in international and domestic air travel expected to continue. American Airlines is a key company in the airline industry, and is my top pick for investors looking for cheap stocks in the airline space.
On the date of publication, Noah Bolton held a long position in F stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing with
topics such as the stock market andfinancial news
The post 3 Stocks Under $20 to Buy (and Never Sell) 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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MPW Medical Properties Trust $8.25 F Ford $12.39 AAL American Airlines $14.87 Medical Properties Trust (MPW) Source: Shutterstock Medical Properties Trust (NYSE:MPW) is a real estate investment trust (REIT) that was founded in 2003 in Birmingham, Alabama. American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines (NASDAQ:AAL), Headquartered in Fort Worth, Texas, is an international air carrier offering cargo and passenger transportation services. In April, Medical Properties Trust reported first quarter earnings, which showed a disappointing year-over-year revenue decline of 15%.
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MPW Medical Properties Trust $8.25 F Ford $12.39 AAL American Airlines $14.87 Medical Properties Trust (MPW) Source: Shutterstock Medical Properties Trust (NYSE:MPW) is a real estate investment trust (REIT) that was founded in 2003 in Birmingham, Alabama. American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines (NASDAQ:AAL), Headquartered in Fort Worth, Texas, is an international air carrier offering cargo and passenger transportation services. In April, the company released its first quarter earnings, posting a total revenue increase of 37% and earnings per share growth of 2 cents on a year-over-year basis.
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MPW Medical Properties Trust $8.25 F Ford $12.39 AAL American Airlines $14.87 Medical Properties Trust (MPW) Source: Shutterstock Medical Properties Trust (NYSE:MPW) is a real estate investment trust (REIT) that was founded in 2003 in Birmingham, Alabama. American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines (NASDAQ:AAL), Headquartered in Fort Worth, Texas, is an international air carrier offering cargo and passenger transportation services. In April, the company released its first quarter earnings, posting a total revenue increase of 37% and earnings per share growth of 2 cents on a year-over-year basis.
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MPW Medical Properties Trust $8.25 F Ford $12.39 AAL American Airlines $14.87 Medical Properties Trust (MPW) Source: Shutterstock Medical Properties Trust (NYSE:MPW) is a real estate investment trust (REIT) that was founded in 2003 in Birmingham, Alabama. American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com American Airlines (NASDAQ:AAL), Headquartered in Fort Worth, Texas, is an international air carrier offering cargo and passenger transportation services. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Retail investors typically only have a small amount of capital to start investing with.
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2550.0
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2023-06-05 00:00:00 UTC
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Delta Air Lines Stock Poised For Strong Gains?
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-stock-poised-for-strong-gains
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nan
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nan
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Delta Air Lines stock (NYSE: DAL) currently trades at $36 per share, more than 30% below its level in April 2021, and it seems like it has the potential for sizable gains. Delta Air Lines saw its stock trading at around $29 in late June 2022, just before the Fed started increasing rates, and is now 25% above that level. The stock has gained 30% since its low in September 2022 compared to the S&P 500, which gained about 10% during this period. The rally in the stock over recent months has been driven by a steady decline in the inflation rate in response to the Fed’s aggressive rate hike plan – although investors still have concerns about a potential recession. The notable increase in Delta Air Lines’ revenues over recent quarters has also contributed to the stock recovery.
Returning to the pre-inflation shock level means that DAL stock will have to gain more than 40% from here. We believe that this will materialize over time and estimate Delta Air Lines’ valuation to be around $50 per share, implying over 35% gains. This is because the company has seen a strong recovery in travel demand over the recent quarters, evident from its total available seat miles (ASM), which grew 18% y-o-y, and its passenger revenue per available seat mile (PRASM) rose 27% to 16.97 cents in Q1. Furthermore, the company has expanded its operating margins from 1.4% in 2021 to 4.0% now. Our Delta Air Lines Operating Income Comparison dashboard has more details. A continued expansion of top-line and operating margin means that Delta Air Lines will see strong earnings growth in the near future. In fact, we forecast adjusted earnings to rise a significant 73% y-o-y to $5.55 in 2023.
Our detailed analysis of Delta Air Lines’ upside post-inflation shock captures trends in the company’s stock during the turbulent market conditions seen over 2022 and compares these trends to the stock’s performance during the 2008 recession.
2022 Inflation Shock
Timeline of Inflation Shock So Far:
2020 – early 2021: Increase in money supply to cushion the impact of lockdowns led to high demand for goods; producers unable to match up.
Early 2021: Shipping snarls and worker shortages from the coronavirus pandemic continue to hurt the supply
April 2021: Inflation rates cross 4% and increase rapidly
Early 2022: Energy and food prices spike due to the Russian invasion of Ukraine. Fed begins its rate hike process
June 2022: Inflation levels peak at 9% – the highest level in 40 years. S&P 500 index declines more than 20% from peak levels.
July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline
Since October 2022: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses.
In contrast, here’s how DAL stock and the broader market performed during the 2007/2008 crisis.
Timeline of 2007-08 Crisis
10/1/2007: Approximate pre-crisis peak in S&P 500 index
9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08)
3/1/2009: Approximate bottoming out of S&P 500 index
12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008)
DAL and S&P 500 Performance During 2007-08 Crisis
DAL stock declined from $18 in September 2007 (pre-crisis peak) to around $5 in March 2009 (as the markets bottomed out), implying DAL stock lost over 70% of its pre-crisis value. It recovered post the 2008 crisis to levels of around $11 in early 2010, rising 126% between March 2009 and January 2010. The S&P 500 Index saw a decline of 51%, falling from levels of 1,540 in September 2007 to 757 in March 2009. It then rallied 48% between March 2009 and January 2010 to reach levels of 1,124.
DAL Fundamentals Over Recent Years
DAL revenues fell sharply from $47 billion in 2019 to just $17.1 billion in 2020 as the Covid-19 outbreak hit the airline industry hard. Revenues improved gradually over 2021 before reaching $51 billion in 2022, with a recovery in travel demand. Delta Air Lines’ ASM surged 1.7x between 2020 and 2022, but it’s still below the levels seen in 2019, before the pandemic.
Despite higher revenue, reported earnings decreased from $7.32 in 2019 to $2.06 in 2022 due to higher fuel and other operating costs. DAL reported a $19.49 per share loss in 2020 when the pandemic severely impacted its financials. On an adjusted basis, earnings declined to $3.20 in 2022, vs. $7.31 in 2019.
Does DAL Have A Sufficient Cash Cushion To Meet Its Obligations Through The Ongoing Inflation Shock?
Delta Air Line’s total debt increased from $12 billion in 2019 to $24 billion in 2022, while its total cash increased from around $3 billion to $6 billion over the same period. However, the rise in cash balance is partly due to additional debt raised, given the $4 billion negative operating cash flows in 2020. The company garnered $6 billion in cash flows from operations in 2022. Although the company has a high debt burden, it appears to be in a comfortable position to meet its near-term obligations.
Conclusion
With the Fed’s efforts to tame runaway inflation rates helping market sentiments, we believe Delta Air Lines (DAL) stock has the potential for solid gains despite the fears of a potential recession, as consumers prioritize travel spending over other areas.
While Delta Air Lines stock has potential for strong gains, check out how other Delta Air Lines 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 high-performance portfolio with a low downside instead? Here’s a reinforced value portfolio that has beaten the market consistently while limiting losses during periods of sharp market declines.
Returns Jun 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
DAL Return 0% 11% -26%
S&P 500 Return 0% 9% 87%
Trefis Multi-Strategy Portfolio 0% 10% 245%
[1] Month-to-date and year-to-date as of 6/1/2023
[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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Delta Air Lines stock (NYSE: DAL) currently trades at $36 per share, more than 30% below its level in April 2021, and it seems like it has the potential for sizable gains. Delta Air Lines saw its stock trading at around $29 in late June 2022, just before the Fed started increasing rates, and is now 25% above that level. A continued expansion of top-line and operating margin means that Delta Air Lines will see strong earnings growth in the near future.
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July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline Since October 2022: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) DAL and S&P 500 Performance During 2007-08 Crisis DAL stock declined from $18 in September 2007 (pre-crisis peak) to around $5 in March 2009 (as the markets bottomed out), implying DAL stock lost over 70% of its pre-crisis value. Delta Air Line’s total debt increased from $12 billion in 2019 to $24 billion in 2022, while its total cash increased from around $3 billion to $6 billion over the same period.
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Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) DAL and S&P 500 Performance During 2007-08 Crisis DAL stock declined from $18 in September 2007 (pre-crisis peak) to around $5 in March 2009 (as the markets bottomed out), implying DAL stock lost over 70% of its pre-crisis value. Delta Air Line’s total debt increased from $12 billion in 2019 to $24 billion in 2022, while its total cash increased from around $3 billion to $6 billion over the same period. Conclusion With the Fed’s efforts to tame runaway inflation rates helping market sentiments, we believe Delta Air Lines (DAL) stock has the potential for solid gains despite the fears of a potential recession, as consumers prioritize travel spending over other areas.
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Returning to the pre-inflation shock level means that DAL stock will have to gain more than 40% from here. Our Delta Air Lines Operating Income Comparison dashboard has more details. It recovered post the 2008 crisis to levels of around $11 in early 2010, rising 126% between March 2009 and January 2010.
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2023-06-02 00:00:00 UTC
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Airline Stock Roundup: AAL's Bullish Q2 Forecast, ALGT's Labor Deal & More
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-aals-bullish-q2-forecast-algts-labor-deal-more
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nan
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In the past week, American Airlines’ AAL management lifted its earnings per share forecast for second-quarter 2023, driven by low fuel costs and the anticipation of a further surge in air travel demand in the upcoming summer season. Southwest Airlines’ LUV management continues to expect a strong adjusted profit for the current year, driven by upbeat air travel demand (mainly for leisure).
Meanwhile, United Airlines’ UAL management announced that its chief financial officer or CFO, Gerald Laderman would retire next year. Allegiant Travel Company ALGT was also in the news, courtesy of the ratification of the deal with the International Brotherhood of Teamsters or IBT, representing its flight dispatchers.
Recap of the Past Week’s Most Important Stories
1. American Airlines, currently carrying a Zacks Rank #3 (Hold), now expects total revenue per available seat miles (a measure of unit revenue) to decline 1-3% from second-quarter 2022 actuals (earlier estimate was for a 2-4% decline). Driven by upbeat demand, adjusted operating margin is now anticipated in the 12.5-14.5% band (earlier guidance:11-13%). Average fuel cost per gallon is now expected in the range of $2.55-$2.65 (earlier guidance: $2.65-$2.75).
AAL lifted its second-quarter earnings per share (excluding net special items) view and now expects the same to be in the $1.45-$1.65 range (earlier guidance: $1.20-$1.40). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AAL was also in the news recently, courtesy of its agreement in principle with its pilot union, Allied Pilots Association. That update was covered in detail in our previous week’s write-up.
2. United Airlines’ CFO Gerry Laderman stated that he intends to retire in 2024. The company, which will undertake a thorough search process to find a replacement for Laderman, said that the incumbent is expected to retire no later than Sep 30, 2024. To facilitate a smooth transfer of power, Laderman will discharge his current responsibilities until the effective date of UAL appointing his successor. After that, he will serve as executive vice president, Finance until his planned retirement next year.
3. While ratifying the deal with IBT, 95.8% of Allegiant’s flight dispatchers voted in its favor. Currently, 50 flight dispatchers, coordinators and instructors are employed at Allegiant. The existing collective bargaining agreement was due for amendment on May 31, 2024. It has been in effect since Apr 25, 2019. The ahead-of-schedule ratification is a major positive.
4. For second-quarter 2023, LUV still expects available seat miles to improve 14% from the year-ago reported figure. Economic fuel costs per gallon are expected to be $2.45 to $2.55. LUV still expects CASM, excluding fuel, oil and profit-sharing expenses, and special items, to increase 5-8% in the second quarter from the comparable period in 2022. Interest expenses are expected to be $65 million in the second quarter. Revenue per available seat miles is expected to decrease 8-10% year over year (earlier guidance was for a 8-11% decrease). LUV continues to expect solid profits in the second quarter and full-year 2023, both excluding special items.
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 most airline stocks traded in the green over the past week, resulting in the NYSE ARCA Airline Index gaining 1.7% to $64.42. Over the course of the past six months, the NYSE ARCA Airline Index appreciated 7.2%.
What’s Next in the Airline Space?
Investors are looking forward to the May traffic reports of the likes of Ryanair Holdings RYAAY. Upbeat air travel demand is likely to have aided Ryanair’s May traffic numbers.
Zacks Names "Single Best Pick to Double"
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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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Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
Southwest Airlines Co. (LUV) : 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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In the past week, American Airlines’ AAL management lifted its earnings per share forecast for second-quarter 2023, driven by low fuel costs and the anticipation of a further surge in air travel demand in the upcoming summer season. AAL lifted its second-quarter earnings per share (excluding net special items) view and now expects the same to be in the $1.45-$1.65 range (earlier guidance: $1.20-$1.40). AAL was also in the news recently, courtesy of its agreement in principle with its pilot union, Allied Pilots Association.
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Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : 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. In the past week, American Airlines’ AAL management lifted its earnings per share forecast for second-quarter 2023, driven by low fuel costs and the anticipation of a further surge in air travel demand in the upcoming summer season. AAL lifted its second-quarter earnings per share (excluding net special items) view and now expects the same to be in the $1.45-$1.65 range (earlier guidance: $1.20-$1.40).
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In the past week, American Airlines’ AAL management lifted its earnings per share forecast for second-quarter 2023, driven by low fuel costs and the anticipation of a further surge in air travel demand in the upcoming summer season. Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : 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. AAL lifted its second-quarter earnings per share (excluding net special items) view and now expects the same to be in the $1.45-$1.65 range (earlier guidance: $1.20-$1.40).
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In the past week, American Airlines’ AAL management lifted its earnings per share forecast for second-quarter 2023, driven by low fuel costs and the anticipation of a further surge in air travel demand in the upcoming summer season. AAL lifted its second-quarter earnings per share (excluding net special items) view and now expects the same to be in the $1.45-$1.65 range (earlier guidance: $1.20-$1.40). AAL was also in the news recently, courtesy of its agreement in principle with its pilot union, Allied Pilots Association.
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2552.0
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2023-06-02 00:00:00 UTC
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FOCUS-American Airlines' reliance on partners faces test after court ruling
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AAL
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https://www.nasdaq.com/articles/focus-american-airlines-reliance-on-partners-faces-test-after-court-ruling-0
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nan
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By Rajesh Kumar Singh
CHICAGO, June 1 (Reuters) - American Airlines' AAL.O plan to grow revenue by relying more heavily on alliance partners to ferry passengers in uncompetitive markets while bulking up flights to U.S. Sunbelt states has been called into question by a U.S. court ruling blocking a key tie-up.
A U.S. federal judge last month ordered the company to end its alliance with JetBlue Airways Corp JBLU.O, saying the partnership "substantially" diminished competition in the domestic market.
The alliance allows the carriers to coordinate flights and pool revenue. It also is 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.
The company has called the ruling "wrongly decided" and plans to appeal, but its executives don't see a material impact to the company's earnings as the court's order is not expected to have ramifications beyond New York.
American has not specified the JetBlue alliance's contribution to its earnings. But in its ruling, the court said JetBlue owed American a transfer payment upwards of $200 million at the end of 2021 as part of the deal's revenue-sharing agreement.
American has been leaning on JetBlue in the Northeast region and Alaska Airlines ALK.N on the West Coast. In long-haul international markets, American has been relying on partners like Qatar Airways.
These alliances allow American to sell tickets on its partner flights and generate revenue at a fraction of the cost of operating flights itself.
It is also seeking to gain market share in Sunbelt states such as Texas, Florida, Tennessee, Arizona and North Carolina, where population and commerce are growing.
Passenger traffic to the Sunbelt states rebounded at the fastest clip after the pandemic. Bookings for trips to the region continue to outpace those for overall domestic travel, led by demand for flights to Dallas, Houston, Austin, Charlotte and Phoenix, data from Airlines Reporting Corporation shows.
"We're putting the flights where the demand is," said Raja. "The other thing that makes us different versus our competitors is the degree to which we are leveraging our partners."
DOOMED ALLIANCE?
James Speta, a Northwestern University law professor, said American's alliance with JetBlue in its current structure is "more likely than not" doomed. But with "significant" changes, it can try to address antitrust concerns by making it look more like its partnership with Alaska.
"My speculation would be that JetBlue and American would very much consider revising the Northeast Alliance," said Speta.
With a restructured network, American has said it wants to generate revenue in excess of its market share.
It also expects short-haul markets to provide greater visibility on travel demand, allowing it to adjust faster to consumer behavior changes.
American has said the long-haul business is the most volatile and capital-intensive part of airline business. But it expects short-haul markets to provide a steady revenue stream.
Last year, company revenue surpassed pre-pandemic level even as capacity remained below, leading to its first full-year profit in three years. Analysts surveyed by Refinitiv expect a more than five-fold increase in 2023 profit.
"It is a smart strategy," Ghriskey said. He doesn't expect the court ruling to result in any immediate change in the company's overall network strategy.
(Reporting by Rajesh Kumar Singh, editing by Ben Klayman and Anna Driver)
((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, June 1 (Reuters) - American Airlines' AAL.O plan to grow revenue by relying more heavily on alliance partners to ferry passengers in uncompetitive markets while bulking up flights to U.S. Sunbelt states has been called into question by a U.S. court ruling blocking a key tie-up. A U.S. federal judge last month ordered the company to end its alliance with JetBlue Airways Corp JBLU.O, saying the partnership "substantially" diminished competition in the domestic market. Bookings for trips to the region continue to outpace those for overall domestic travel, led by demand for flights to Dallas, Houston, Austin, Charlotte and Phoenix, data from Airlines Reporting Corporation shows.
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By Rajesh Kumar Singh CHICAGO, June 1 (Reuters) - American Airlines' AAL.O plan to grow revenue by relying more heavily on alliance partners to ferry passengers in uncompetitive markets while bulking up flights to U.S. Sunbelt states has been called into question by a U.S. court ruling blocking a key tie-up. A U.S. federal judge last month ordered the company to end its alliance with JetBlue Airways Corp JBLU.O, saying the partnership "substantially" diminished competition in the domestic market. It also expects short-haul markets to provide greater visibility on travel demand, allowing it to adjust faster to consumer behavior changes.
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By Rajesh Kumar Singh CHICAGO, June 1 (Reuters) - American Airlines' AAL.O plan to grow revenue by relying more heavily on alliance partners to ferry passengers in uncompetitive markets while bulking up flights to U.S. Sunbelt states has been called into question by a U.S. court ruling blocking a key tie-up. A U.S. federal judge last month ordered the company to end its alliance with JetBlue Airways Corp JBLU.O, saying the partnership "substantially" diminished competition in the domestic market. These alliances allow American to sell tickets on its partner flights and generate revenue at a fraction of the cost of operating flights itself.
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By Rajesh Kumar Singh CHICAGO, June 1 (Reuters) - American Airlines' AAL.O plan to grow revenue by relying more heavily on alliance partners to ferry passengers in uncompetitive markets while bulking up flights to U.S. Sunbelt states has been called into question by a U.S. court ruling blocking a key tie-up. "We're putting the flights where the demand is," said Raja. He doesn't expect the court ruling to result in any immediate change in the company's overall network strategy.
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2553.0
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2023-06-01 00:00:00 UTC
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American Airlines (AAL) Stock Sinks As Market Gains: What You Should Know
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https://www.nasdaq.com/articles/american-airlines-aal-stock-sinks-as-market-gains%3A-what-you-should-know-4
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American Airlines (AAL) closed the most recent trading day at $14.70, moving -0.54% from the previous trading session. This change lagged the S&P 500's daily gain of 0.99%.
Heading into today, shares of the world's largest airline had gained 7.18% over the past month, outpacing the Transportation sector's loss of 2.37% and the S&P 500's gain of 0.42% in that time.
Investors will be hoping for strength from American Airlines as it approaches its next earnings release. On that day, American Airlines is projected to report earnings of $1.29 per share, which would represent year-over-year growth of 69.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.65 billion, up 1.7% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.64 per share and revenue of $52.86 billion. These totals would mark changes of +428% and +7.94%, respectively, from last year.
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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Over the past month, the Zacks Consensus EPS estimate has moved 4.27% lower. American Airlines is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, American Airlines is currently trading at a Forward P/E ratio of 5.61. This represents a discount compared to its industry's average Forward P/E of 10.07.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 22% 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.
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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) closed the most recent trading day at $14.70, moving -0.54% from the previous trading session. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. On that day, American Airlines is projected to report earnings of $1.29 per share, which would represent year-over-year growth of 69.74%.
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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. American Airlines (AAL) closed the most recent trading day at $14.70, moving -0.54% from the previous trading session. Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.64 per share and revenue of $52.86 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. American Airlines (AAL) closed the most recent trading day at $14.70, moving -0.54% from the previous trading session. This industry currently has a Zacks Industry Rank of 55, which puts it in the top 22% of all 250+ industries.
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American Airlines (AAL) closed the most recent trading day at $14.70, moving -0.54% from the previous trading session. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. On that day, American Airlines is projected to report earnings of $1.29 per share, which would represent year-over-year growth of 69.74%.
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2554.0
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2023-06-01 00:00:00 UTC
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The 3 Best Green Penny Stocks to Buy in June 2023
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https://www.nasdaq.com/articles/the-3-best-green-penny-stocks-to-buy-in-june-2023
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In an era where sustainability dominates global conversations, high potential green penny stocks are gaining considerable attention. Investors looking to make a positive environmental impact while reaping substantial returns should consider these under-the-radar investment opportunities.
These companies aren’t just making a difference in the world but are also positioning themselves to meet the increasing demand for sustainable products and services. Adopting a long-term perspective, it’s clear that these businesses are on track to outperform their less environmentally conscious counterparts.
The Inflation Reduction Act presents a promising backdrop for green penny stocks, fostering a potential surge in the burgeoning sector. Therefore, as the month unfolds, you must consider investing in the top green penny stocks for June. If you’re seeking environmentally conscious investments, these eco-friendly penny stocks to buy could effectively align with your values and financial goals.
Sunworks (SUNW)
Source: Simone Hogan / Shutterstock.com
Sunworks (NASDAQ:SUNW) shines brightly in the dynamic realm of solar power systems. It boasts a robust long-term position in both residential and commercial markets. Residential installations, in particular saw a massive 70% bump year-over-year. However, the adoption of distributed residential solar energy sits below 5% of its total addressable market in the U.S. residential sphere, implying substantial room for long-term growth. Layer that up with a favorable Solar Investment Tax Credit and growing demand for sustainable energy sources, and you have a potential long-term winner in Sunworks.
The firm recently revealed impressive first-quarter results, reporting revenues of $37.9 million compared to $31.2 million from the same quarter last year. Moreover, despite reporting a quarterly loss of 18 cents per share, Sunworks outperformed the Zacks Equity Research estimate, which predicted a much larger loss of 28 cents per share. Moreover, with a debt-free balance sheet, Sunworks has plenty of wiggle room to continue expanding rapidly.
Denison Mines (DNN)
Source: RHJPhtotos / Shutterstock
Denison Mines (NYSEMKT:DNN) is a leading mining enterprise specializing in producing uranium, a valuable asset class in the contemporary energy markets. Despite uranium’s somewhat controversial nature, it remains a key element of the broader energy dialogue. If geopolitical instability persists, an increasing shift towards nuclear-based solutions could potentially be on the horizon.
Denison operates from Canada’s Athabasca Basin, home to some of the richest uranium ores. Although more costly to procure, these ores deliver more energy than their lower-yield counterparts, making them a critical component for nuclear reactors, naval vessels, laboratories and other related experimental fields.
Furthermore, it presents a unique opportunity for investors with even modest capital to potentially reap substantial rewards. Thus, DNN offers a promising investment proposition, placing investors at the forefront of the uranium-powered energy revolution.
Gevo (GEVO)
Source: Shutterstock
Gevo (NASDAQ:GEVO) stands out in its bid to become a major sustainable airline fuel supplier. Though a speculative play at this time, GEVO stock has the potential to break out on the backs of multiple high-value deals. It has struck several lucrative partnerships with top airliners, including a $2.75 billion deal with American Airlines (NASDAQ:AAL).
Moreover, it struck a 5-year long $165 million deal with Spain’s Iberia Airlines, set to launch in 2028. Additionally, Gevo announced in October last year that Qatar Airways committed to purchasing 5 million gallons of Sustainable Aviation Fuel annually starting in 2028. Also, it has struck a major deal with Ireland’s Aer Lingus. The firm has plans to inaugurate its first major factory in 2025, expecting to generate an annual EBITDA of $300 million to $325 million. Further reinforcing this optimistic trajectory, Gevo recently received a $30 million grant from the U.S. Department of Agriculture, a major boost to its long-term initiatives.
On the date of publication, Muslim Farooque did not have (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
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
The post The 3 Best Green Penny Stocks to Buy in June 2023 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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It has struck several lucrative partnerships with top airliners, including a $2.75 billion deal with American Airlines (NASDAQ:AAL). Layer that up with a favorable Solar Investment Tax Credit and growing demand for sustainable energy sources, and you have a potential long-term winner in Sunworks. Although more costly to procure, these ores deliver more energy than their lower-yield counterparts, making them a critical component for nuclear reactors, naval vessels, laboratories and other related experimental fields.
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It has struck several lucrative partnerships with top airliners, including a $2.75 billion deal with American Airlines (NASDAQ:AAL). Moreover, despite reporting a quarterly loss of 18 cents per share, Sunworks outperformed the Zacks Equity Research estimate, which predicted a much larger loss of 28 cents per share. Denison Mines (DNN) Source: RHJPhtotos / Shutterstock Denison Mines (NYSEMKT:DNN) is a leading mining enterprise specializing in producing uranium, a valuable asset class in the contemporary energy markets.
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It has struck several lucrative partnerships with top airliners, including a $2.75 billion deal with American Airlines (NASDAQ:AAL). InvestorPlace - Stock Market News, Stock Advice & Trading Tips In an era where sustainability dominates global conversations, high potential green penny stocks are gaining considerable attention. Layer that up with a favorable Solar Investment Tax Credit and growing demand for sustainable energy sources, and you have a potential long-term winner in Sunworks.
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It has struck several lucrative partnerships with top airliners, including a $2.75 billion deal with American Airlines (NASDAQ:AAL). Investors looking to make a positive environmental impact while reaping substantial returns should consider these under-the-radar investment opportunities. However, the adoption of distributed residential solar energy sits below 5% of its total addressable market in the U.S. residential sphere, implying substantial room for long-term growth.
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2555.0
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2023-06-01 00:00:00 UTC
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JETS ETF to Gain on Lower Energy Costs, Consumer Resilience
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AAL
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https://www.nasdaq.com/articles/jets-etf-to-gain-on-lower-energy-costs-consumer-resilience
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American Airlines AAL announced on May 31, 2023, that it has raised its second-quarter profit forecast. This increase is attributed to lower jet fuel costs and strong travel demand. Despite concerns about a potential recession, travel during the Memorial Day weekend exceeded pre-COVID levels for the first time, indicating sustained resilience in the industry.
Take a Detailed Look Into the American Airlines’ Forecast
As per an article on CNBC, American Airlines provided an updated estimate on Wednesday, stating that their adjusted per-share earnings for the quarter are projected to range between $1.45 and $1.65. This represents an increase from their previous forecast of $1.20 to $1.40 per share.
Additionally, the airline anticipates unit revenues for the three-month period ending Jun 30 to be 1% to 3% lower compared to the same period last year, which is a better outcome than their earlier projection of a potential 4% decline.
The airline company anticipates that the average fuel price per gallon, inclusive of taxes, will range from approximately $2.55 to $2.65 for the second quarter. This represents a decrease from their earlier estimate of around $2.65 to $2.75.
We may take cues from American Airlines’ forecast. And it may so happen that other airlines may also follow suit in the coming days to realize the tailwind from falling energy prices.
Encouraging Consumer Numbers
Memorial Day air travel demonstrated resilience in consumer spending on trips, surpassing pre-Covid levels despite ongoing inflation concerns. Per CNBC, the Transportation Security Administration reported screening 9.79 million individuals from Friday to Monday, a slight increase compared to the 2019 holiday weekend. Setting a post-pandemic record, over 2.7 million people were screened on Friday alone.
Airlines for America research indicates that U.S. airlines are projected to transport a record-breaking 257 million passengers from Jun 1 to Aug 31, 2023, showcasing an unprecedented level of air traffic, as stated in AviationSource News.
Against this backdrop, below, we highlight the pure-play airlines ETF, U.S. Global Jets ETF JETS.
ETF in Focus
U.S. Global Jets ETF seeks to closely track the performance of the U.S. Global Jets Index, providing exposure to airline companies across the globe with an emphasis on domestic passenger airlines. It has a basket of 48 securities.
JETS has exposure to the United States with 72.83% of the shares, followed by Canada (6.43%) and Japan (2.81%). JETS has gathered an asset base of $1.69 billion and charges an annual fee of 0.60%. The top holdings of the fund include companies like Delta Air Lines DAL with 11.06%, American Airlines with 10.88%, Southwest Airlines LUV with 10.891% and United Airlines UAL with 10.7%.
The fund has a Zacks ETF Rank #3 (Hold) with a High risk outlook. It has generated 7.03% year to date but over the past year, the fund has lost 10.74%.
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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
U.S. Global Jets ETF (JETS): 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 announced on May 31, 2023, that it has raised its second-quarter profit forecast. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Southwest Airlines Co. (LUV) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report U.S. Despite concerns about a potential recession, travel during the Memorial Day weekend exceeded pre-COVID levels for the first time, indicating sustained resilience in the industry.
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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 Southwest Airlines Co. (LUV) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report U.S. American Airlines AAL announced on May 31, 2023, that it has raised its second-quarter profit forecast. The top holdings of the fund include companies like Delta Air Lines DAL with 11.06%, American Airlines with 10.88%, Southwest Airlines LUV with 10.891% and United Airlines UAL with 10.7%.
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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 Southwest Airlines Co. (LUV) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report U.S. American Airlines AAL announced on May 31, 2023, that it has raised its second-quarter profit forecast. The top holdings of the fund include companies like Delta Air Lines DAL with 11.06%, American Airlines with 10.88%, Southwest Airlines LUV with 10.891% and United Airlines UAL with 10.7%.
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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 Southwest Airlines Co. (LUV) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report U.S. American Airlines AAL announced on May 31, 2023, that it has raised its second-quarter profit forecast. Take a Detailed Look Into the American Airlines’ Forecast As per an article on CNBC, American Airlines provided an updated estimate on Wednesday, stating that their adjusted per-share earnings for the quarter are projected to range between $1.45 and $1.65.
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2556.0
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2023-06-01 00:00:00 UTC
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Interesting AAL Put And Call Options For July 14th
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https://www.nasdaq.com/articles/interesting-aal-put-and-call-options-for-july-14th
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the July 14th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 14th contracts and identified one put and one call contract of particular interest.
The put contract at the $14.50 strike price has a current bid of 58 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $14.50, but will also collect the premium, putting the cost basis of the shares at $13.92 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $14.82/share today.
Because the $14.50 strike represents an approximate 2% 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 4.00% return on the cash commitment, or 33.95% 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 $14.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $15.00 strike price has a current bid of 70 cents. If an investor was to purchase shares of AAL stock at the current price level of $14.82/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $15.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.94% if the stock gets called away at the July 14th 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 $15.00 strike highlighted in red:
Considering the fact that the $15.00 strike represents an approximate 1% 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 4.72% boost of extra return to the investor, or 40.09% 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 $14.82) to be 47%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
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ETFs Holding PGNX
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 $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 1% 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 July 14th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 1% 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 July 14th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 14th 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 $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 1% 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 July 14th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 14th 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 $15.00 strike highlighted in red: Considering the fact that the $15.00 strike represents an approximate 1% 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 July 14th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new July 14th contracts and identified one put and one call contract of particular interest.
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2557.0
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2023-06-01 00:00:00 UTC
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American Airlines (AAL) Stock Gains on Bullish Q2 Outlook
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https://www.nasdaq.com/articles/american-airlines-aal-stock-gains-on-bullish-q2-outlook
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Shares of American Airlines AAL appreciated 1.09% on May 31, to close the trading session at $14.78 per share. A favorable outlook issued by management for second-quarter 2023 resulted in this uptick. The anticipated air-travel-demand swell during the upcoming summer season and low fuel costs contributed to the bright outlook.
Q2 Outlook
American Airlines, currently carrying a Zacks Rank #3 (Hold), now expects total revenue per available seat miles (a measure of unit revenue) to decline 1-3% from second-quarter 2022 actuals (earlier estimate was for a 2-4% decline).
Driven by upbeat demand, the adjusted operating margin is now anticipated in the 12.5-14.5% band (earlier guidance :11-13%). Average fuel cost per gallon is now expected in the range of $2.55-$2.65 (earlier guidance: $2.65-$2.75).
Non-fuel unit costs are still expected to increase 3.5-5.5% year over year. Our estimate hints at a 5.2% year-over-year increase. Available seat miles (a measure of capacity) are still estimated to increase 3.5-5.5% year over year. Our model predicts a 4.2% increase, year over year.
AAL lifted its second-quarter earnings per share (excluding net special items) view and now expects it in the $1.45-$1.65 range (earlier guidance: $1.20-$1.40). The Zacks Consensus Estimate is currently pegged at $1.29.
2023 Outlook Stays Intact
Management still expects available seat miles to increase 5-8% year over year. Our model estimates an increase of 6.1% year over year. Non-fuel unit costs are still expected to increase 2-5% year over year. Our estimate hints at a 3.4% year-over-year increase.
AAL still expects earnings per share (excluding net special items) in the $2.50-$3.50 range. The Zacks Consensus Estimate is currently pegged at $2.64.
Stocks to Consider
Some better-ranked stocks for investors interested in the Zacks Airline industry are Copa Holdings CPA and Allegiant Travel Company ALGT . While Copa sports a Zacks Rank #1 (Strong Buy), Allegiant carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings is benefiting from an improvement in air-travel demand. In first-quarter 2023, passenger revenues increased 28.5% from first-quarter 2019 levels due to higher yields.
CPA’s focus on its cargo segment is encouraging. In first-quarter 2023, cargo and mail revenues grew 51.8% from first-quarter 2019 levels on higher cargo volumes and yields.
Copa Holdings' fleet modernization and cost-management efforts are commendable. The Zacks Consensus Estimate for current-year earnings has been revised 21.3% upward over the past 60 days.
Allegiant is seeing a steady recovery in domestic and leisure air-travel demand. In first-quarter 2023, operating revenues grew 29.9% on a year-over-year basis. Passenger revenues, accounting for 93.7% of the top line, increased 31.3% on a year-over-year basis.
Allegiant's fleet-modernization efforts are encouraging. The Zacks Consensus Estimate for ALGT's current-year earnings has been revised upward by 47% in the past 60 days.
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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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AAL lifted its second-quarter earnings per share (excluding net special items) view and now expects it in the $1.45-$1.65 range (earlier guidance: $1.20-$1.40). Shares of American Airlines AAL appreciated 1.09% on May 31, to close the trading session at $14.78 per share. AAL still expects earnings per share (excluding net special items) in the $2.50-$3.50 range.
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AAL lifted its second-quarter earnings per share (excluding net special items) view and now expects it in the $1.45-$1.65 range (earlier guidance: $1.20-$1.40). Click to get this free report Copa Holdings, S.A. (CPA) : 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. Shares of American Airlines AAL appreciated 1.09% on May 31, to close the trading session at $14.78 per share.
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Click to get this free report Copa Holdings, S.A. (CPA) : 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. Shares of American Airlines AAL appreciated 1.09% on May 31, to close the trading session at $14.78 per share. AAL lifted its second-quarter earnings per share (excluding net special items) view and now expects it in the $1.45-$1.65 range (earlier guidance: $1.20-$1.40).
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AAL lifted its second-quarter earnings per share (excluding net special items) view and now expects it in the $1.45-$1.65 range (earlier guidance: $1.20-$1.40). Shares of American Airlines AAL appreciated 1.09% on May 31, to close the trading session at $14.78 per share. AAL still expects earnings per share (excluding net special items) in the $2.50-$3.50 range.
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2558.0
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2023-06-01 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-9
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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 mid-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 NASDAQ 100 Stocks
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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 mid-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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2559.0
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2023-06-01 00:00:00 UTC
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Goldman Sachs Maintains American Airlines Group (AAL) Neutral Recommendation
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https://www.nasdaq.com/articles/goldman-sachs-maintains-american-airlines-group-aal-neutral-recommendation-0
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Fintel reports that on June 1, 2023, Goldman Sachs maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation.
Analyst Price Forecast Suggests 16.26% Upside
As of May 11, 2023, the average one-year price target for American Airlines Group is 17.18. The forecasts range from a low of 9.60 to a high of $27.30. The average price target represents an increase of 16.26% from its latest reported closing price of 14.78.
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 1036 funds or institutions reporting positions in American Airlines Group. This is an increase of 30 owner(s) or 2.98% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.13%, a decrease of 7.13%. Total shares owned by institutions increased in the last three months by 3.45% to 412,015K 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 3.09% 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.
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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Fintel reports that on June 1, 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 0.13%, a decrease of 7.13%. The put/call ratio of AAL is 3.08, indicating a bearish outlook.
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Fintel reports that on June 1, 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 0.13%, a decrease of 7.13%. The put/call ratio of AAL is 3.08, indicating a bearish outlook.
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Fintel reports that on June 1, 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 0.13%, a decrease of 7.13%. The put/call ratio of AAL is 3.08, indicating a bearish outlook.
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Fintel reports that on June 1, 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 0.13%, a decrease of 7.13%. The put/call ratio of AAL is 3.08, indicating a bearish outlook.
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2560.0
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2023-06-01 00:00:00 UTC
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Southwest Airlines forecasts strong full-year profit
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-forecasts-strong-full-year-profit
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Adds details on the full year guide in lead, Q2 profit, RASM outlook in paragraphs 2 & 5, background on American Airlines' outlook in paragraph 3
June 1 (Reuters) - Southwest Airlines Co LUV.N said on Thursday it continues to expect a strong adjusted profit for thefull year as travelers fly more for leisure, leading to more ticket sales.
The carrier also reiterated its profit forecast for the second quarter, as summer bookings were boosted by the Memorial Day weekend.
The forecast comes a day after American Airlines Group Inc AAL.Oraised its second-quarter profit outlook on lower jet fuel costs and high travel demand.
Leisure travel demand and yields continue to be strong in the quarter, Southwest said in a regulatory filing.
Dallas, Texas-based Southwest however expects revenue per seat flown one mile to fall 8% to 10% in the quarter through June, compared to the previous forecast of a fall of 8% to 11%.
The airline said it has not made any material revisions to its 2023 fleet or capacity plans compared with previous guidance, reflecting its expectation to receive about 70 Boeing 737-8 aircraft deliveries.
(Reporting by Aishwarya Nair in Bengaluru; Editing by Shounak Dasgupta and Nivedita Bhattacharjee)
((Aishwarya.Nair@thomsonreuters.com; +91-9167838937 Twitter: https://twitter.com/Aishwaryartrs))
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 forecast comes a day after American Airlines Group Inc AAL.Oraised its second-quarter profit outlook on lower jet fuel costs and high travel demand. Adds details on the full year guide in lead, Q2 profit, RASM outlook in paragraphs 2 & 5, background on American Airlines' outlook in paragraph 3 June 1 (Reuters) - Southwest Airlines Co LUV.N said on Thursday it continues to expect a strong adjusted profit for thefull year as travelers fly more for leisure, leading to more ticket sales. The airline said it has not made any material revisions to its 2023 fleet or capacity plans compared with previous guidance, reflecting its expectation to receive about 70 Boeing 737-8 aircraft deliveries.
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The forecast comes a day after American Airlines Group Inc AAL.Oraised its second-quarter profit outlook on lower jet fuel costs and high travel demand. Adds details on the full year guide in lead, Q2 profit, RASM outlook in paragraphs 2 & 5, background on American Airlines' outlook in paragraph 3 June 1 (Reuters) - Southwest Airlines Co LUV.N said on Thursday it continues to expect a strong adjusted profit for thefull year as travelers fly more for leisure, leading to more ticket sales. Leisure travel demand and yields continue to be strong in the quarter, Southwest said in a regulatory filing.
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The forecast comes a day after American Airlines Group Inc AAL.Oraised its second-quarter profit outlook on lower jet fuel costs and high travel demand. Adds details on the full year guide in lead, Q2 profit, RASM outlook in paragraphs 2 & 5, background on American Airlines' outlook in paragraph 3 June 1 (Reuters) - Southwest Airlines Co LUV.N said on Thursday it continues to expect a strong adjusted profit for thefull year as travelers fly more for leisure, leading to more ticket sales. Dallas, Texas-based Southwest however expects revenue per seat flown one mile to fall 8% to 10% in the quarter through June, compared to the previous forecast of a fall of 8% to 11%.
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The forecast comes a day after American Airlines Group Inc AAL.Oraised its second-quarter profit outlook on lower jet fuel costs and high travel demand. Adds details on the full year guide in lead, Q2 profit, RASM outlook in paragraphs 2 & 5, background on American Airlines' outlook in paragraph 3 June 1 (Reuters) - Southwest Airlines Co LUV.N said on Thursday it continues to expect a strong adjusted profit for thefull year as travelers fly more for leisure, leading to more ticket sales. The carrier also reiterated its profit forecast for the second quarter, as summer bookings were boosted by the Memorial Day weekend.
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2561.0
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2023-05-31 00:00:00 UTC
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Pre-Market Most Active for May 31, 2023 : AI, SQQQ, TQQQ, PLTR, SOFI, TSLA, NVDA, AAL, NIO, TAL, BBAI, AAP
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-may-31-2023-%3A-ai-sqqq-tqqq-pltr-sofi-tsla-nvda-aal-nio-tal-bbai
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The NASDAQ 100 Pre-Market Indicator is down -68.1 to 14,286.89. The total Pre-Market volume is currently 24,495,982 shares traded.
The following are the most active stocks for the pre-market session:
C3.ai, Inc. (AI) is -2.45 at $41.50, with 3,351,147 shares traded., following a 52-week high recorded in prior regular session.
ProShares UltraPro Short QQQ (SQQQ) is +0.35 at $22.94, with 2,798,794 shares traded., following a 52-week high recorded in prior regular session.
ProShares UltraPro QQQ (TQQQ) is -0.53 at $34.94, with 2,458,350 shares traded. This represents a 117.02% increase from its 52 Week Low.
Palantir Technologies Inc. (PLTR) is -0.45 at $14.26, with 2,243,679 shares traded., following a 52-week high recorded in prior regular session.
SoFi Technologies, Inc. (SOFI) is +0.23 at $6.26, with 2,106,550 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $-0.07. SOFI's current last sale is 86.34% of the target price of $7.25.
Tesla, Inc. (TSLA) is -2.06 at $199.10, with 1,068,998 shares traded. TSLA's current last sale is 99.55% of the target price of $200.
NVIDIA Corporation (NVDA) is -6.89 at $394.22, with 797,737 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2023. The consensus EPS forecast is $0.81. , following a 52-week high recorded in prior regular session.
American Airlines Group, Inc. (AAL) is +0.3 at $14.92, with 735,639 shares traded. AAL's current last sale is 95.49% of the target price of $15.625.
NIO Inc. (NIO) is +0.05 at $7.46, with 575,206 shares traded. NIO's current last sale is 57.38% of the target price of $13.
TAL Education Group (TAL) is +0.03 at $5.61, with 543,160 shares traded. TAL's current last sale is 96.72% of the target price of $5.8.
BigBear.ai, Inc. (BBAI) is +0.0391 at $2.17, with 464,812 shares traded. BBAI's current last sale is 43.38% of the target price of $5.
Advance Auto Parts Inc. (AAP) is -32.222 at $79.98, with 458,924 shares traded. AAP's current last sale is 55.54% of the target price of $144.
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) is +0.3 at $14.92, with 735,639 shares traded. AAL's current last sale is 95.49% of the target price of $15.625. ProShares UltraPro Short QQQ (SQQQ) is +0.35 at $22.94, with 2,798,794 shares traded., following a 52-week high recorded in prior regular session.
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American Airlines Group, Inc. (AAL) is +0.3 at $14.92, with 735,639 shares traded. AAL's current last sale is 95.49% of the target price of $15.625. C3.ai, Inc. (AI) is -2.45 at $41.50, with 3,351,147 shares traded., following a 52-week high recorded in prior regular session.
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American Airlines Group, Inc. (AAL) is +0.3 at $14.92, with 735,639 shares traded. AAL's current last sale is 95.49% of the target price of $15.625. ProShares UltraPro Short QQQ (SQQQ) is +0.35 at $22.94, with 2,798,794 shares traded., following a 52-week high recorded in prior regular session.
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American Airlines Group, Inc. (AAL) is +0.3 at $14.92, with 735,639 shares traded. AAL's current last sale is 95.49% of the target price of $15.625. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023.
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2562.0
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2023-05-31 00:00:00 UTC
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American Airlines Lifts Q2 Earnings View Above Market; Backs FY23 Forecast
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https://www.nasdaq.com/articles/american-airlines-lifts-q2-earnings-view-above-market-backs-fy23-forecast
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(RTTNews) - American Airlines Group Inc. (AAL) Wednesday lifted its forecast for second-quarter adjusted earnings per share and adjusted operating margin. Further, the company maintained its outlook for fiscal 2023 earnings.
For the second quarter, the company now projects adjusted earnings per share to be between around $1.45 to $1.65 and adjusted operating margin to be approximately 12.5 percent to 14.5 percent.
The company previously expected adjusted earnings per share between $1.20 and $1.40 and adjusted operating margin to be approximately 11 percent to 13 percent.
On average, 16 analysts polled by Thomson Reuters expect earnings of $1.31 per share for the quarter. Analysts' estimates typically exclude special items.
The company now expects total revenue per available seat mile to be down approximately 1 percent to 3 percent versus the second quarter of 2022, while previously it was expected to be down 2 percent to 4 percent. The improvement in unit revenue guidance is driven by continued strength in the demand environment.
Available seat miles are still expected to be up 3.5 percent to 5.5 percent from last year.
Further ahead, for fiscal 2023, American Airlines continues to expect adjusted earnings per share to be between $2.50 and $3.50, and available seat miles to grow between 5 percent to 8 percent.
The Street expects earnings of $2.74 per share for the year.
In pre-market activity on Nasdaq, American Airlines shares were gaining around 1.5 percent to trade at $14.84.
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) Wednesday lifted its forecast for second-quarter adjusted earnings per share and adjusted operating margin. On average, 16 analysts polled by Thomson Reuters expect earnings of $1.31 per share for the quarter. The improvement in unit revenue guidance is driven by continued strength in the demand environment.
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(RTTNews) - American Airlines Group Inc. (AAL) Wednesday lifted its forecast for second-quarter adjusted earnings per share and adjusted operating margin. The company previously expected adjusted earnings per share between $1.20 and $1.40 and adjusted operating margin to be approximately 11 percent to 13 percent. The company now expects total revenue per available seat mile to be down approximately 1 percent to 3 percent versus the second quarter of 2022, while previously it was expected to be down 2 percent to 4 percent.
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(RTTNews) - American Airlines Group Inc. (AAL) Wednesday lifted its forecast for second-quarter adjusted earnings per share and adjusted operating margin. The company previously expected adjusted earnings per share between $1.20 and $1.40 and adjusted operating margin to be approximately 11 percent to 13 percent. The company now expects total revenue per available seat mile to be down approximately 1 percent to 3 percent versus the second quarter of 2022, while previously it was expected to be down 2 percent to 4 percent.
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(RTTNews) - American Airlines Group Inc. (AAL) Wednesday lifted its forecast for second-quarter adjusted earnings per share and adjusted operating margin. For the second quarter, the company now projects adjusted earnings per share to be between around $1.45 to $1.65 and adjusted operating margin to be approximately 12.5 percent to 14.5 percent. Available seat miles are still expected to be up 3.5 percent to 5.5 percent from last year.
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2563.0
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2023-05-31 00:00:00 UTC
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American Airlines to appeal JetBlue alliance court ruling -CEO
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https://www.nasdaq.com/articles/american-airlines-to-appeal-jetblue-alliance-court-ruling-ceo
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By Rajesh Kumar Singh and David Shepardson
WASHINGTON, May 31 (Reuters) - American Airlines Group AAL.Owill appeal a U.S. court decision requiring it to end an alliance with JetBlue Airways Corp JBLU.O, American CEO Robert Isom said on Wednesday.
U.S. District Judge Leo Sorokin in Boston ruled on May 19 that the airlines' "Northeast Alliance" broke antitrust law and ordered the companies to dissolve the arrangement within 30 days.
"We've got a legal system that allows for appeal, and we're going to do that," Isom told the Bernstein Conference.
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.
"These two powerful carriers act as one entity in the northeast, allocating markets between them and replacing full-throated competition with broad cooperation," Sorokin wrote in his ruling, a rare court victory for President Joe Biden's administration and its hard line against corporate consolidation.
(Reporting by Rajesh Kumar Singh in Chicago and David Shepardson in Washington; Editing by Chris Reese and Deepa Babington)
((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 Rajesh Kumar Singh and David Shepardson WASHINGTON, May 31 (Reuters) - American Airlines Group AAL.Owill appeal a U.S. court decision requiring it to end an alliance with JetBlue Airways Corp JBLU.O, American CEO Robert Isom said on Wednesday. U.S. District Judge Leo Sorokin in Boston ruled on May 19 that the airlines' "Northeast Alliance" broke antitrust law and ordered the companies to dissolve the arrangement within 30 days. 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 and David Shepardson WASHINGTON, May 31 (Reuters) - American Airlines Group AAL.Owill appeal a U.S. court decision requiring it to end an alliance with JetBlue Airways Corp JBLU.O, American CEO Robert Isom said on Wednesday. U.S. District Judge Leo Sorokin in Boston ruled on May 19 that the airlines' "Northeast Alliance" broke antitrust law and ordered the companies to dissolve the arrangement within 30 days. (Reporting by Rajesh Kumar Singh in Chicago and David Shepardson in Washington; Editing by Chris Reese and Deepa Babington) ((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 Rajesh Kumar Singh and David Shepardson WASHINGTON, May 31 (Reuters) - American Airlines Group AAL.Owill appeal a U.S. court decision requiring it to end an alliance with JetBlue Airways Corp JBLU.O, American CEO Robert Isom said on Wednesday. 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. (Reporting by Rajesh Kumar Singh in Chicago and David Shepardson in Washington; Editing by Chris Reese and Deepa Babington) ((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 Rajesh Kumar Singh and David Shepardson WASHINGTON, May 31 (Reuters) - American Airlines Group AAL.Owill appeal a U.S. court decision requiring it to end an alliance with JetBlue Airways Corp JBLU.O, American CEO Robert Isom said on Wednesday. U.S. District Judge Leo Sorokin in Boston ruled on May 19 that the airlines' "Northeast Alliance" broke antitrust law and ordered the companies to dissolve the arrangement within 30 days. "We've got a legal system that allows for appeal, and we're going to do that," Isom told the Bernstein Conference.
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2564.0
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2023-05-31 00:00:00 UTC
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American Airlines raises second-quarter profit outlook on lower fuel costs
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https://www.nasdaq.com/articles/american-airlines-raises-second-quarter-profit-outlook-on-lower-fuel-costs
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Adds share price in paragraph 2, outlook details in paragraphs 4-5
May 31 (Reuters) - American Airlines Group Inc AAL.O on Wednesday raised its forecast for second-quarter profit on lower jet fuel costs and high travel demand.
The company's shares were up 2% at $14.91 in premarket trade.
Travel demand has stayed strong even amid worries of a looming recession, with travel during the Memorial Day weekend topping 2019 pre-COVID levels for the first time.
American Airlines Group forecast second-quarter adjusted profit in the range of about $1.45 to $1.65 per share, compared with its previous outlook of about $1.20 to $1.40 per share.
The company expects average fuel price per gallon, including taxes, to be about $2.55 to $2.65 in the second quarter, down from its previous estimate of about $2.65 to $2.75.
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Savio D'Souza and Shounak Dasgupta)
((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 share price in paragraph 2, outlook details in paragraphs 4-5 May 31 (Reuters) - American Airlines Group Inc AAL.O on Wednesday raised its forecast for second-quarter profit on lower jet fuel costs and high travel demand. The company expects average fuel price per gallon, including taxes, to be about $2.55 to $2.65 in the second quarter, down from its previous estimate of about $2.65 to $2.75. (Reporting by Shivansh Tiwary in Bengaluru; Editing by Savio D'Souza and Shounak Dasgupta) ((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 share price in paragraph 2, outlook details in paragraphs 4-5 May 31 (Reuters) - American Airlines Group Inc AAL.O on Wednesday raised its forecast for second-quarter profit on lower jet fuel costs and high travel demand. The company's shares were up 2% at $14.91 in premarket trade. American Airlines Group forecast second-quarter adjusted profit in the range of about $1.45 to $1.65 per share, compared with its previous outlook of about $1.20 to $1.40 per share.
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Adds share price in paragraph 2, outlook details in paragraphs 4-5 May 31 (Reuters) - American Airlines Group Inc AAL.O on Wednesday raised its forecast for second-quarter profit on lower jet fuel costs and high travel demand. American Airlines Group forecast second-quarter adjusted profit in the range of about $1.45 to $1.65 per share, compared with its previous outlook of about $1.20 to $1.40 per share. (Reporting by Shivansh Tiwary in Bengaluru; Editing by Savio D'Souza and Shounak Dasgupta) ((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 share price in paragraph 2, outlook details in paragraphs 4-5 May 31 (Reuters) - American Airlines Group Inc AAL.O on Wednesday raised its forecast for second-quarter profit on lower jet fuel costs and high travel demand. The company's shares were up 2% at $14.91 in premarket trade. Travel demand has stayed strong even amid worries of a looming recession, with travel during the Memorial Day weekend topping 2019 pre-COVID levels for the first time.
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2565.0
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2023-05-31 00:00:00 UTC
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US STOCKS-Wall St set to open lower ahead of debt ceiling deal vote
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-st-set-to-open-lower-ahead-of-debt-ceiling-deal-vote
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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
HP Inc, Hewlett Packard Enterprise slip on results
Advance Auto Parts slumps after forecast cut
Nvidia down after Tuesday's record high
May Chicago PMI, April job openings report due Wednesday
Futures down: Dow 0.30%, S&P 0.44%, Nasdaq 0.47%
Updates prices throughout, adds analyst comments in paragraphs 4 and 5, adds shares of American Airlines Group
By Shreyashi Sanyal
May 31 (Reuters) - U.S. stock indexes were set to open lower on Wednesday as a deal to raise the nation's debt ceiling headed for a pivotal vote by lawmakers, while another round of earnings highlighted the pinch of higher prices being felt by corporate America.
A bill to lift the $31.4 trillion U.S. debt ceiling and achieve new federal spending cuts made its way to the House of Representatives for debate on Tuesday and an expected vote on passage is due later on Wednesday.
House passage would send the bill to the Senate, where debate could stretch to the weekend, as a June 5 deadline loomed.
"All signs point to the deal getting done but there's headlines about some Congress people who are against it," said Joe Saluzzi, co-manager of trading at Themis Trading. "Until that deal gets done, there will be a little bit of nervousness."
The debt ceiling debate has been an overhang for financial markets, but signs of progress have pushed the S&P 500 .SPX and the Nasdaq .IXIC indexes toward monthly gains in May. The Nasdaq was on track for its best performance in May since 2020, rising 6.5%.
Investors now await the Labor Department's closely watched jobs report for May, due on Friday, which could show how resilient the economy has been to high interest rates and inflation.
At 8:34 a.m. ET, Dow e-minis 1YMcv1 were down 99 points, or 0.3%, S&P 500 e-minis EScv1 were down 18.5 points, or 0.44%, and Nasdaq 100 e-minis NQcv1 were down 67 points, or 0.47%.
Overnight, a reportshowed Federal Reserve Bank of Cleveland President Loretta Mester said she sees no "compelling" reason to pause rate hikes.
Traders are pricing in a 61% chance of a 25-basis point increase at the Fed's June 13-14 meeting. FEDWATCH
Chicago purchasing managers' index (PMI) data is due later in the day, as is the Job Openings and Labor Turnover Survey (JOLTS) for April.
Advance Auto Parts Inc AAP.N slumped 28.8% premarket after the auto parts retailer cut its full-year forecasts.
HP IncHPQ.N dropped 5.6% after it missed quarterly revenue estimates, as inflation-hit customers spent less on the company's personal computers.
Shares of Hewlett Packard Enterprise Co HPE.N slipped 8.7% as it also missed Wall Street estimates for second-quarter revenue.
Nvidia Corp's NVDA.O shares fell 1.8% a day after hitting a record high and briefly joined an elite club of U.S. companies sporting a $1 trillion market value.
Other chipmakers including Advanced Micro Devices Inc AMD.O, Micron Technology Inc MU.O and Intel Corp INTC.O shed between 0.9% and 3.8%.
Separately, chip company Ambarella Inc AMBA.O tumbled 18.5% after forecasting second-quarter revenue below estimates.
American Airlines Group Inc AAL.O added 2.1% after raising its second-quarter profit outlook.
(Reporting by Shreyashi Sanyal and Shashwat Chauhan in Bengaluru; Editing by Shounak Dasgupta and Maju Samuel)
((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))
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.O added 2.1% after raising its second-quarter profit outlook. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window HP Inc, Hewlett Packard Enterprise slip on results Advance Auto Parts slumps after forecast cut Nvidia down after Tuesday's record high May Chicago PMI, April job openings report due Wednesday Futures down: Dow 0.30%, S&P 0.44%, Nasdaq 0.47% Updates prices throughout, adds analyst comments in paragraphs 4 and 5, adds shares of American Airlines Group By Shreyashi Sanyal May 31 (Reuters) - U.S. stock indexes were set to open lower on Wednesday as a deal to raise the nation's debt ceiling headed for a pivotal vote by lawmakers, while another round of earnings highlighted the pinch of higher prices being felt by corporate America. A bill to lift the $31.4 trillion U.S. debt ceiling and achieve new federal spending cuts made its way to the House of Representatives for debate on Tuesday and an expected vote on passage is due later on Wednesday.
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American Airlines Group Inc AAL.O added 2.1% after raising its second-quarter profit outlook. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window HP Inc, Hewlett Packard Enterprise slip on results Advance Auto Parts slumps after forecast cut Nvidia down after Tuesday's record high May Chicago PMI, April job openings report due Wednesday Futures down: Dow 0.30%, S&P 0.44%, Nasdaq 0.47% Updates prices throughout, adds analyst comments in paragraphs 4 and 5, adds shares of American Airlines Group By Shreyashi Sanyal May 31 (Reuters) - U.S. stock indexes were set to open lower on Wednesday as a deal to raise the nation's debt ceiling headed for a pivotal vote by lawmakers, while another round of earnings highlighted the pinch of higher prices being felt by corporate America. Advance Auto Parts Inc AAP.N slumped 28.8% premarket after the auto parts retailer cut its full-year forecasts.
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American Airlines Group Inc AAL.O added 2.1% after raising its second-quarter profit outlook. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window HP Inc, Hewlett Packard Enterprise slip on results Advance Auto Parts slumps after forecast cut Nvidia down after Tuesday's record high May Chicago PMI, April job openings report due Wednesday Futures down: Dow 0.30%, S&P 0.44%, Nasdaq 0.47% Updates prices throughout, adds analyst comments in paragraphs 4 and 5, adds shares of American Airlines Group By Shreyashi Sanyal May 31 (Reuters) - U.S. stock indexes were set to open lower on Wednesday as a deal to raise the nation's debt ceiling headed for a pivotal vote by lawmakers, while another round of earnings highlighted the pinch of higher prices being felt by corporate America. A bill to lift the $31.4 trillion U.S. debt ceiling and achieve new federal spending cuts made its way to the House of Representatives for debate on Tuesday and an expected vote on passage is due later on Wednesday.
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American Airlines Group Inc AAL.O added 2.1% after raising its second-quarter profit outlook. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window HP Inc, Hewlett Packard Enterprise slip on results Advance Auto Parts slumps after forecast cut Nvidia down after Tuesday's record high May Chicago PMI, April job openings report due Wednesday Futures down: Dow 0.30%, S&P 0.44%, Nasdaq 0.47% Updates prices throughout, adds analyst comments in paragraphs 4 and 5, adds shares of American Airlines Group By Shreyashi Sanyal May 31 (Reuters) - U.S. stock indexes were set to open lower on Wednesday as a deal to raise the nation's debt ceiling headed for a pivotal vote by lawmakers, while another round of earnings highlighted the pinch of higher prices being felt by corporate America. A bill to lift the $31.4 trillion U.S. debt ceiling and achieve new federal spending cuts made its way to the House of Representatives for debate on Tuesday and an expected vote on passage is due later on Wednesday.
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2566.0
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2023-05-31 00:00:00 UTC
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Anglo American says to re-organize production businesses, finance boss to retire
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AAL
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https://www.nasdaq.com/articles/anglo-american-says-to-re-organize-production-businesses-finance-boss-to-retire
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nan
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Adds news on production business consolidation throughout
May 31 (Reuters) - Anglo American Plc AAL.L said on Wednesday that its finance director, Stephen Pearce, would retire later this year and that it would re-organize its production businesses by consolidating them into two regions.
The company said that the process to appoint a successor to Pearce, who held the position for six years, is underway.
Over the last year, Anglo American has made several management changes, including appointing a new CEO for its De Beers diamond business.
The company also said it would consolidate its production businesses into two regions – Americas, and Africa and Australia – effective July 1.
The two regions will each be a regional director each, one based in Brazil for the Americas and one in South Africa for the Africa & Australia region.
(Reporting by Richard Rohan Francis in Bengaluru; Editing by Savio D'Souza)
((RichardRohan.Francis@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 news on production business consolidation throughout May 31 (Reuters) - Anglo American Plc AAL.L said on Wednesday that its finance director, Stephen Pearce, would retire later this year and that it would re-organize its production businesses by consolidating them into two regions. The company said that the process to appoint a successor to Pearce, who held the position for six years, is underway. Over the last year, Anglo American has made several management changes, including appointing a new CEO for its De Beers diamond business.
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Adds news on production business consolidation throughout May 31 (Reuters) - Anglo American Plc AAL.L said on Wednesday that its finance director, Stephen Pearce, would retire later this year and that it would re-organize its production businesses by consolidating them into two regions. Over the last year, Anglo American has made several management changes, including appointing a new CEO for its De Beers diamond business. The company also said it would consolidate its production businesses into two regions – Americas, and Africa and Australia – effective July 1.
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Adds news on production business consolidation throughout May 31 (Reuters) - Anglo American Plc AAL.L said on Wednesday that its finance director, Stephen Pearce, would retire later this year and that it would re-organize its production businesses by consolidating them into two regions. The two regions will each be a regional director each, one based in Brazil for the Americas and one in South Africa for the Africa & Australia region. (Reporting by Richard Rohan Francis in Bengaluru; Editing by Savio D'Souza) ((RichardRohan.Francis@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 news on production business consolidation throughout May 31 (Reuters) - Anglo American Plc AAL.L said on Wednesday that its finance director, Stephen Pearce, would retire later this year and that it would re-organize its production businesses by consolidating them into two regions. The company said that the process to appoint a successor to Pearce, who held the position for six years, is underway. The company also said it would consolidate its production businesses into two regions – Americas, and Africa and Australia – effective July 1.
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2567.0
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2023-05-31 00:00:00 UTC
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American Airlines raises Q2 profit outlook on lower fuel costs
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AAL
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https://www.nasdaq.com/articles/american-airlines-raises-q2-profit-outlook-on-lower-fuel-costs
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nan
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nan
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May 31 (Reuters) - American Airlines Group AAL.O on Wednesday raised its outlook for second-quarter profit as it expects to pay lesser for jet fuel compared to its previous estimate.
The company forecast profit in the range of $1.45 to 1.65 per share for the current quarter.
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Savio D'Souza)
((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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May 31 (Reuters) - American Airlines Group AAL.O on Wednesday raised its outlook for second-quarter profit as it expects to pay lesser for jet fuel compared to its previous estimate. The company forecast profit in the range of $1.45 to 1.65 per share for the current quarter. (Reporting by Shivansh Tiwary in Bengaluru; Editing by Savio D'Souza) ((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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May 31 (Reuters) - American Airlines Group AAL.O on Wednesday raised its outlook for second-quarter profit as it expects to pay lesser for jet fuel compared to its previous estimate. The company forecast profit in the range of $1.45 to 1.65 per share for the current quarter. (Reporting by Shivansh Tiwary in Bengaluru; Editing by Savio D'Souza) ((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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May 31 (Reuters) - American Airlines Group AAL.O on Wednesday raised its outlook for second-quarter profit as it expects to pay lesser for jet fuel compared to its previous estimate. The company forecast profit in the range of $1.45 to 1.65 per share for the current quarter. (Reporting by Shivansh Tiwary in Bengaluru; Editing by Savio D'Souza) ((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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May 31 (Reuters) - American Airlines Group AAL.O on Wednesday raised its outlook for second-quarter profit as it expects to pay lesser for jet fuel compared to its previous estimate. The company forecast profit in the range of $1.45 to 1.65 per share for the current quarter. (Reporting by Shivansh Tiwary in Bengaluru; Editing by Savio D'Souza) ((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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2568.0
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2023-05-30 00:00:00 UTC
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U.S. holiday air passenger travel tops 2019 pre-COVID levels
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AAL
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https://www.nasdaq.com/articles/u.s.-holiday-air-passenger-travel-tops-2019-pre-covid-levels
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nan
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nan
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By David Shepardson
WASHINGTON, May 30 (Reuters) - U.S. holiday air passenger travel topped 2019 pre-COVID levels over the Memorial Day weekend, which typically marks the start of the busy U.S. summer air travel season, figures from the U.S. Transportation Security Administration (TSA) showed on Tuesday.
The TSA said nearly 9.8 million passengers were screened or passed though security checks over the four-day weekend, about 300,000 more than over the same holiday period in 2019, the agency said on Tuesday.
The agency said it screened 2.74 million passengers on Friday alone, the highest number in a single day since November 2019. Friday's traffic topped the recent high that had been set on Thursday and the entire weekend topped pre-COVID traffic levels.
The Federal Aviation Administration (FAA) said Thursday was the nation's highest post-COVID daily traffic, with 54,684 flights.
The FAA, airlines and flight tracking websites reported smooth travel over the Memorial Day period and significant improvements over 2022 performance, including cancellation rates far below recent years.
American Airlines AAL.O said on Sunday it canceled only 13 regional flights, or 0.2% of total scheduled departures, after four consecutive days of American not canceling any flights.
(Reporting by David Shepardson; Editing by Kirsten Donovan and David Holmes)
((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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American Airlines AAL.O said on Sunday it canceled only 13 regional flights, or 0.2% of total scheduled departures, after four consecutive days of American not canceling any flights. By David Shepardson WASHINGTON, May 30 (Reuters) - U.S. holiday air passenger travel topped 2019 pre-COVID levels over the Memorial Day weekend, which typically marks the start of the busy U.S. summer air travel season, figures from the U.S. Transportation Security Administration (TSA) showed on Tuesday. The TSA said nearly 9.8 million passengers were screened or passed though security checks over the four-day weekend, about 300,000 more than over the same holiday period in 2019, the agency said on Tuesday.
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American Airlines AAL.O said on Sunday it canceled only 13 regional flights, or 0.2% of total scheduled departures, after four consecutive days of American not canceling any flights. By David Shepardson WASHINGTON, May 30 (Reuters) - U.S. holiday air passenger travel topped 2019 pre-COVID levels over the Memorial Day weekend, which typically marks the start of the busy U.S. summer air travel season, figures from the U.S. Transportation Security Administration (TSA) showed on Tuesday. Friday's traffic topped the recent high that had been set on Thursday and the entire weekend topped pre-COVID traffic levels.
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American Airlines AAL.O said on Sunday it canceled only 13 regional flights, or 0.2% of total scheduled departures, after four consecutive days of American not canceling any flights. By David Shepardson WASHINGTON, May 30 (Reuters) - U.S. holiday air passenger travel topped 2019 pre-COVID levels over the Memorial Day weekend, which typically marks the start of the busy U.S. summer air travel season, figures from the U.S. Transportation Security Administration (TSA) showed on Tuesday. The FAA, airlines and flight tracking websites reported smooth travel over the Memorial Day period and significant improvements over 2022 performance, including cancellation rates far below recent years.
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American Airlines AAL.O said on Sunday it canceled only 13 regional flights, or 0.2% of total scheduled departures, after four consecutive days of American not canceling any flights. By David Shepardson WASHINGTON, May 30 (Reuters) - U.S. holiday air passenger travel topped 2019 pre-COVID levels over the Memorial Day weekend, which typically marks the start of the busy U.S. summer air travel season, figures from the U.S. Transportation Security Administration (TSA) showed on Tuesday. The TSA said nearly 9.8 million passengers were screened or passed though security checks over the four-day weekend, about 300,000 more than over the same holiday period in 2019, the agency said on Tuesday.
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2569.0
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2023-05-29 00:00:00 UTC
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Air Canada pilots end 10-year contract framework, eye bargaining
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AAL
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https://www.nasdaq.com/articles/air-canada-pilots-end-10-year-contract-framework-eye-bargaining-0
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nan
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By Allison Lampert
MONTREAL, May 29 (Reuters) - Air Canada's AC.TO pilots have ended a decade-long contract framework, opening the door to "full bargaining this summer," their union leadership said on Monday in a note to members seen by Reuters.
Air Canada pilots have previously said they are pressing for "historic" gains to narrow the earnings gap with higher-paid aviators at U.S. carriers.
The estimated 4,500 pilots at Canada's largest carrier have received a 2% wage increase per year since reaching a deal in 2014.
The union had a Monday deadline for using a type of escape clause that would allow for negotiations this year. The agreement now runs until Sept. 29, 2023, although its provisions will apply beyond that date.
"We were willing to meet with the company if they wanted to provide us with a substantial proposal that would further our membership’s goals," said the letter, adding Air Canada did not seek to open discussions.
The Air Canada pilots group, which joined the Air Line Pilots Association (ALPA) this month, said in a separate document it expects a notice to bargain to be provided in early June.
"Our pilots may elect to use the option that was available to them to initiate bargaining for a new collective agreement," Montreal-based Air Canada said in an emailed statement.
"The current agreement, which has been in place for nine years, is testimony of the productive relationship we have with our pilots."
U.S. pilots made gains in a recent tentative agreement with American Airlines AAL.Oand a separate deal with Delta Air Lines DAL.Nwhich delivers a 34% pay increase over four years.
(Reporting By Allison Lampert in Montreal; Editing by Chris Reese)
((Allison.Lampert@thomsonreuters.com; 514-796-4212; Reuters Messaging: allison.lampert.reuters.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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U.S. pilots made gains in a recent tentative agreement with American Airlines AAL.Oand a separate deal with Delta Air Lines DAL.Nwhich delivers a 34% pay increase over four years. Air Canada pilots have previously said they are pressing for "historic" gains to narrow the earnings gap with higher-paid aviators at U.S. carriers. "We were willing to meet with the company if they wanted to provide us with a substantial proposal that would further our membership’s goals," said the letter, adding Air Canada did not seek to open discussions.
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U.S. pilots made gains in a recent tentative agreement with American Airlines AAL.Oand a separate deal with Delta Air Lines DAL.Nwhich delivers a 34% pay increase over four years. By Allison Lampert MONTREAL, May 29 (Reuters) - Air Canada's AC.TO pilots have ended a decade-long contract framework, opening the door to "full bargaining this summer," their union leadership said on Monday in a note to members seen by Reuters. Air Canada pilots have previously said they are pressing for "historic" gains to narrow the earnings gap with higher-paid aviators at U.S. carriers.
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U.S. pilots made gains in a recent tentative agreement with American Airlines AAL.Oand a separate deal with Delta Air Lines DAL.Nwhich delivers a 34% pay increase over four years. By Allison Lampert MONTREAL, May 29 (Reuters) - Air Canada's AC.TO pilots have ended a decade-long contract framework, opening the door to "full bargaining this summer," their union leadership said on Monday in a note to members seen by Reuters. The Air Canada pilots group, which joined the Air Line Pilots Association (ALPA) this month, said in a separate document it expects a notice to bargain to be provided in early June.
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U.S. pilots made gains in a recent tentative agreement with American Airlines AAL.Oand a separate deal with Delta Air Lines DAL.Nwhich delivers a 34% pay increase over four years. By Allison Lampert MONTREAL, May 29 (Reuters) - Air Canada's AC.TO pilots have ended a decade-long contract framework, opening the door to "full bargaining this summer," their union leadership said on Monday in a note to members seen by Reuters. Air Canada pilots have previously said they are pressing for "historic" gains to narrow the earnings gap with higher-paid aviators at U.S. carriers.
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2570.0
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2023-05-28 00:00:00 UTC
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This Airline Just Got Magnificent News. Investors Didn't Notice.
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AAL
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https://www.nasdaq.com/articles/this-airline-just-got-magnificent-news.-investors-didnt-notice.
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nan
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nan
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Last July, Spirit Airlines (NYSE: SAVE) agreed to be acquired by JetBlue Airways (NASDAQ: JBLU). On the day its board of directors approved the deal, Spirit Airlines shares closed above $25. Since then, the stock has been in freefall, recently reaching a new multiyear low below $15.
Spirit Airlines stock trades for less than half of the planned acquisition price. While the federal government wants to block the merger, a recent decision in a separate antitrust case to block JetBlue's partnership with American Airlines (NASDAQ: AAL) makes it more likely that the Spirit-JetBlue merger will ultimately be approved. Moreover, moderating jet fuel prices bode well for Spirit's stand-alone profitability.
Trading at a deep discount
JetBlue has agreed to buy Spirit Airlines for $33.50 per share in cash, including $2.50 prepaid last year and an additional $0.10 per share (up to $1.80) paid each month until the deal is closed or terminated. The total payment can increase to as much as $34.15 if closing is delayed until next July.
Spirit Airlines stock has consistently traded at a steep discount to the deal price, reflecting the risk that regulators would scuttle the merger. Indeed, as expected, the U.S. Department of Justice (DOJ) sued to block the transaction in March. The Department of Transportation is also investigating the deal.
Still, the discount has expanded dramatically in recent months. As recently as January, Spirit Airlines stock was trading for around $20. It has lost a quarter of its value since then. This makes the stock look deeply undervalued.
The antitrust case just got a bit easier
Earlier this month, a federal judge sided with the DOJ in its challenge to JetBlue's Northeast Alliance (NEA) with American Airlines. Under that partnership, first announced in July 2020, the two airlines largely operate as a single entity in New York and Boston. They pool their gates and slots, sell tickets for each other's flights, and share revenue on flights to and from those key markets. Unless JetBlue and American successfully appeal the judge's decision, they will have to unwind the alliance in the next few weeks.
JetBlue's partnership with American Airlines was a key point raised by the DOJ in its complaint challenging the JetBlue-Spirit Airlines merger. The DOJ argues that the NEA essentially makes JetBlue a vassal of American Airlines. As such, the NEA and a JetBlue-Spirit merger together would have shielded the largest domestic airline from competition from two of its most significant low-fare rivals.
By contrast, if JetBlue and American walk away from the NEA, JetBlue is likely to resume its prior competitive positioning as a maverick in the U.S. airline industry. While that wouldn't fully address all of the DOJ's concerns, it would give JetBlue and Spirit a good chance of negotiating a settlement with regulators or prevailing at trial.
If the merger ultimately gains approval, Spirit Airlines shareholders would be in line for a $29.85 per share payout next year -- plus $0.10 monthly payments until then. Spirit Airlines stock is currently priced as if the JetBlue deal has no chance of being approved, which seems far too pessimistic.
Image source: Spirit Airlines.
Plenty of upside without a merger
Even if the DOJ succeeds in blocking the JetBlue merger, Spirit Airlines stock is likely to be worth far more than $15 in a few years. Last year, Spirit reported an adjusted loss of $1.74 per share, as strong demand couldn't make up for sky-high fuel prices, rising labor costs, and other inefficiencies.
Fortunately, jet fuel prices have moderated this year. For the current quarter, Spirit expects to pay about $2.60 per gallon on average, down from $3.64 in the prior-year period. That will allow the airline to post a modest profit, even though pilot staffing constraints and a shortage of spare engines are limiting aircraft utilization, thereby driving up non-fuel unit costs.
The engine availability issues are set to dissipate over the next year or so. And while hiring and training enough pilots remains a challenge, Spirit Airlines is on the right track after slowing its growth rate and raising pilot pay by an average of 34%. That should allow Spirit to return to its historical utilization and efficiency levels by next summer. The carrier is also modernizing its fleet, which should noticeably improve fuel efficiency over the next two years, while helping to further reduce non-fuel unit costs.
As a stand-alone company, Spirit is on pace to grow revenue to more than $7 billion by 2025. At a modest 8% adjusted pre-tax margin -- compared to the 11.9% it achieved in 2018 and 2019 -- it would generate earnings per share of roughly $4 by then. That would justify a share price well above today's level, making Spirit Airlines stock look drastically undervalued today.
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Adam Levine-Weinberg has positions in JetBlue Airways and Spirit Airlines. The Motley Fool recommends JetBlue Airways. The Motley Fool has a disclosure policy.
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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While the federal government wants to block the merger, a recent decision in a separate antitrust case to block JetBlue's partnership with American Airlines (NASDAQ: AAL) makes it more likely that the Spirit-JetBlue merger will ultimately be approved. The antitrust case just got a bit easier Earlier this month, a federal judge sided with the DOJ in its challenge to JetBlue's Northeast Alliance (NEA) with American Airlines. Last year, Spirit reported an adjusted loss of $1.74 per share, as strong demand couldn't make up for sky-high fuel prices, rising labor costs, and other inefficiencies.
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While the federal government wants to block the merger, a recent decision in a separate antitrust case to block JetBlue's partnership with American Airlines (NASDAQ: AAL) makes it more likely that the Spirit-JetBlue merger will ultimately be approved. JetBlue's partnership with American Airlines was a key point raised by the DOJ in its complaint challenging the JetBlue-Spirit Airlines merger. That would justify a share price well above today's level, making Spirit Airlines stock look drastically undervalued today.
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While the federal government wants to block the merger, a recent decision in a separate antitrust case to block JetBlue's partnership with American Airlines (NASDAQ: AAL) makes it more likely that the Spirit-JetBlue merger will ultimately be approved. Trading at a deep discount JetBlue has agreed to buy Spirit Airlines for $33.50 per share in cash, including $2.50 prepaid last year and an additional $0.10 per share (up to $1.80) paid each month until the deal is closed or terminated. Plenty of upside without a merger Even if the DOJ succeeds in blocking the JetBlue merger, Spirit Airlines stock is likely to be worth far more than $15 in a few years.
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While the federal government wants to block the merger, a recent decision in a separate antitrust case to block JetBlue's partnership with American Airlines (NASDAQ: AAL) makes it more likely that the Spirit-JetBlue merger will ultimately be approved. As recently as January, Spirit Airlines stock was trading for around $20. Spirit Airlines stock is currently priced as if the JetBlue deal has no chance of being approved, which seems far too pessimistic.
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2571.0
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2023-05-26 00:00:00 UTC
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American Airlines (AAL) Stock Sinks As Market Gains: What You Should Know
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-stock-sinks-as-market-gains%3A-what-you-should-know-3
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American Airlines (AAL) closed the most recent trading day at $14.35, moving -0.21% from the previous trading session. This change lagged the S&P 500's 1.31% gain on the day. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq lost 4.19%.
Prior to today's trading, shares of the world's largest airline had gained 11.65% over the past month. This has outpaced the Transportation sector's loss of 0.39% and the S&P 500's gain of 2.12% in that time.
Investors will be hoping for strength from American Airlines as it approaches its next earnings release. In that report, analysts expect American Airlines to post earnings of $1.29 per share. This would mark year-over-year growth of 69.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.65 billion, up 1.7% from the year-ago period.
AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.64 per share and revenue of $52.86 billion. These results would represent year-over-year changes of +428% and +7.94%, respectively.
Investors might also notice recent changes to analyst estimates for American Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.64% higher. American Airlines is currently a Zacks Rank #3 (Hold).
Digging into valuation, American Airlines currently has a Forward P/E ratio of 5.46. Its industry sports an average Forward P/E of 8.72, 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 57, which puts it in the top 23% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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
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) closed the most recent trading day at $14.35, moving -0.21% from the previous trading session. AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.64 per share and revenue of $52.86 billion. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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American Airlines (AAL) closed the most recent trading day at $14.35, moving -0.21% from the previous trading session. 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 $2.64 per share and revenue of $52.86 billion.
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American Airlines (AAL) closed the most recent trading day at $14.35, moving -0.21% from the previous trading session. AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.64 per share and revenue of $52.86 billion. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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American Airlines (AAL) closed the most recent trading day at $14.35, moving -0.21% from the previous trading session. AAL's full-year Zacks Consensus Estimates are calling for earnings of $2.64 per share and revenue of $52.86 billion. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2572.0
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2023-05-26 00:00:00 UTC
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Glencore's shareholder opposition to climate report grows
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AAL
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https://www.nasdaq.com/articles/glencores-shareholder-opposition-to-climate-report-grows
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Adds comments from shareholders
LONDON, May 26 (Reuters) - Just over 30% of Glencore's GLEN.L investors rejected the company's climate progress report at its annual meeting on Friday, demanding more clarity on how the global miner will meet its commitments to cut emissions.
Around 29% of shareholders also backed a shareholder resolution seeking more disclosure on progress in scaling back thermal coal production.
Many of the world's biggest listed companies published their first climate action plans in 2020 to cut emissions in a bid to help with reaching the 2015 Paris Agreement goal of capping temperatures within 1.5 degrees Celsius.
Glencore mines and trades thermal coal, used to generate electricity, and has said it plans to run down its mines by the mid-2040s, closing at least 12 by 2035.
Its strategy to responsibly phase out the fossil fuel signalled a divergence from peers Anglo American AAL.L and Rio Tinto RIO.LRIO.AX, which had sold or spun out coal assets, and had been welcomed by shareholders in 2021.
But some have expressed concern this year over how much Glencore is disclosing about its thermal coal output plans.
Britain's largest asset manager Legal & General Investment Management LGEN.L and the fund arm of lender HSBC HSBA.L were among investors to file a request for more information to assess the company's alignment with global climate goals.
Shareholder advocacy body Australian Centre for Corporate Responsibility (ACCR), which filed the resolution, said it had secured the second-highest vote ever at a London-listed company in favour of a climate-related resolution that was not supported by management.
“Glencore must recognise that neither the risks of its thermal coal business nor the concerns of investors are going away," said Naomi Hogan, strategic projects lead at ACCR.
Deputy CEO Simon Rawson of co-filer ShareAction, said: "The scale of investor support for this resolution reflects the level of frustration at Glencore’s inactivity over a number of years to set out a credible plan for their coal business that meets the ambitions of the Paris Agreement to urgently address global warming."
Glencore had said in a statement dated May 3 that it opposed the shareholder motion because it risked undermining the board's responsibility for its climate strategy, given existing disclosures.
Opposition to its climate progress passing the 20% threshold constitutes material dissent among shareholders.
"We will continue to engage with shareholders so as to ensure their views are fully understood and to better understand the reasons behind these results," Glencore said in its AGM results statement.
(Reporting by Clara Denina in London and Anchal Rana in Bengaluru; editing by Simon Jessop and Susan Fenton)
((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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Its strategy to responsibly phase out the fossil fuel signalled a divergence from peers Anglo American AAL.L and Rio Tinto RIO.LRIO.AX, which had sold or spun out coal assets, and had been welcomed by shareholders in 2021. Many of the world's biggest listed companies published their first climate action plans in 2020 to cut emissions in a bid to help with reaching the 2015 Paris Agreement goal of capping temperatures within 1.5 degrees Celsius. Deputy CEO Simon Rawson of co-filer ShareAction, said: "The scale of investor support for this resolution reflects the level of frustration at Glencore’s inactivity over a number of years to set out a credible plan for their coal business that meets the ambitions of the Paris Agreement to urgently address global warming."
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Its strategy to responsibly phase out the fossil fuel signalled a divergence from peers Anglo American AAL.L and Rio Tinto RIO.LRIO.AX, which had sold or spun out coal assets, and had been welcomed by shareholders in 2021. Adds comments from shareholders LONDON, May 26 (Reuters) - Just over 30% of Glencore's GLEN.L investors rejected the company's climate progress report at its annual meeting on Friday, demanding more clarity on how the global miner will meet its commitments to cut emissions. Around 29% of shareholders also backed a shareholder resolution seeking more disclosure on progress in scaling back thermal coal production.
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Its strategy to responsibly phase out the fossil fuel signalled a divergence from peers Anglo American AAL.L and Rio Tinto RIO.LRIO.AX, which had sold or spun out coal assets, and had been welcomed by shareholders in 2021. Adds comments from shareholders LONDON, May 26 (Reuters) - Just over 30% of Glencore's GLEN.L investors rejected the company's climate progress report at its annual meeting on Friday, demanding more clarity on how the global miner will meet its commitments to cut emissions. Around 29% of shareholders also backed a shareholder resolution seeking more disclosure on progress in scaling back thermal coal production.
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Its strategy to responsibly phase out the fossil fuel signalled a divergence from peers Anglo American AAL.L and Rio Tinto RIO.LRIO.AX, which had sold or spun out coal assets, and had been welcomed by shareholders in 2021. Adds comments from shareholders LONDON, May 26 (Reuters) - Just over 30% of Glencore's GLEN.L investors rejected the company's climate progress report at its annual meeting on Friday, demanding more clarity on how the global miner will meet its commitments to cut emissions. Around 29% of shareholders also backed a shareholder resolution seeking more disclosure on progress in scaling back thermal coal production.
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2573.0
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2023-05-26 00:00:00 UTC
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ANALYSIS-US airlines gear up for 'Super Bowl' of travel season
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AAL
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https://www.nasdaq.com/articles/analysis-us-airlines-gear-up-for-super-bowl-of-travel-season-1
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By Rajesh Kumar Singh, Doyinsola Oladipo, David Shepardson
May 26 (Reuters) - After two successive summers of travel chaos, U.S. airlines are going all out to prevent large-scale flight disruptions in the face of rising demand.
Carriers have trimmed flight schedules, beefed up staffing, and invested in airport infrastructure and technology to be ready for the busiest travel season of the year, starting with the traditional kickoff on the Memorial Day holiday weekend.
Summer tends to be the most profitable season for airlines, but it is also the busiest time of the year, raising the stakes.
The Transportation Security Administration said Friday it screened 2.658 million passengers on Thursday, the highest number in a single day since November 2019.
Industry group Airlines for America estimates a record 256.8 million passengers will fly in the June-August quarter, up 1% over the 254.6 million passengers in the same period in 2019.
"It is kind of our Super Bowl," United Airlines UAL.O Chief Operating Officer Toby Enqvist told Reuters.
No one wants a repeat of last December, when an operational meltdown at Southwest AirlinesLUV.N resulted in almost 17,000 flight cancellations, disrupting travel plans for 2 million customers.
The desire to travel for many is high, however.
Jihane Jeanty, 36, has planned trips to Florida, Mexico City and Asia this summer, thanks to her flexible work arrangement.
The Los Angeles-based marketing director is unconcerned about flight delays and cancellations even though they are "never fun."
"It does happen, so I really don't let it throw me anymore," she said.
Nearly a quarter of flights were either canceled or delayed last summer, according to flight-tracking service FlightAware.
A recent survey by consultant J.D. Power shows customer satisfaction with major airlines is down significantly. The industry is also facing heat from the Biden administration, which wants airlines to compensate passengers with cash for lengthy delays.
Rising numbers of disputes between travellers and airlines globally are driving fresh legislation and calls for tougher enforcement of existing rules to protect consumers.
'THIS IS A TEST'
U.S. Transportation Secretary Pete Buttigieg said this week Memorial Day will be a "test to the system." He said delay and cancellation rates were unacceptable last year and cannot happen again.
Overall, 42.3 million Americans are estimated to travel over the May 29 U.S. Memorial Day holiday weekend, AAA estimates.
The Federal Aviation Administration estimates nearly 313,000 flights will operate over the seven-day period ending May 30, up 4.5% from 2022 and just below 2019 pre-pandemic levels.
Demand is stronger for international trips this summer, driving up airfares to Europe and Asia to the highest level in more than five years, said online travel agency Hopper.
Carriers are performing far better this year, but a shortage of air traffic controllers has forced them to trim New York City-area flights. They are flying larger planes to compensate for fewer flights.
United CEO Scott Kirby has said the FAA needs more resources to handle the rising number of flights. Buttigieg has said the agency needs about 3,000 air traffic controllers, but added weather and airline issues are to blame for most of the problems.
United said it has hired 7,000 employees including pilots, flight attendants, ramp workers and customer service agents this year on top of 15,000 last year.
It is adding gates in New Jersey, Denver and Chicago. It also has added five new hangars worldwide to repair its planes, Enqvist said.
Rival Delta Air Lines Inc DAL.N has hired and trained over 25,000 employees to handle the summer travel rush. Southwest said it will operate 7% more flights compared with last year, with 15% more employees.
American Airlines AAL.O COO David Seymour said the airline has learned from the past. American has invested in technology that allows it to plan for weather events in advance and has tasked general managers with ensuring adequate staffing at its vendors.
"We are really laser-focused on building a plan that has resilience," he said in an interview.
FOCUS-Soaring airline customer complaints push global legislators to act ID:nL8N3776NY
FACTBOX-How Americans plan to travel this Memorial Day ID:nL4N37L3RA
US motorists kick off summer driving season with tame gasoline pricing ID:nL1N37L2N0
(Reporting by Rajesh Kumar Singh in Chicago, Doyinsola Oladipo in New York and David Shepardson in Washington Editing by Ben Klayman, Matthew Lewis and Anna Driver)
((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 COO David Seymour said the airline has learned from the past. By Rajesh Kumar Singh, Doyinsola Oladipo, David Shepardson May 26 (Reuters) - After two successive summers of travel chaos, U.S. airlines are going all out to prevent large-scale flight disruptions in the face of rising demand. Carriers have trimmed flight schedules, beefed up staffing, and invested in airport infrastructure and technology to be ready for the busiest travel season of the year, starting with the traditional kickoff on the Memorial Day holiday weekend.
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American Airlines AAL.O COO David Seymour said the airline has learned from the past. By Rajesh Kumar Singh, Doyinsola Oladipo, David Shepardson May 26 (Reuters) - After two successive summers of travel chaos, U.S. airlines are going all out to prevent large-scale flight disruptions in the face of rising demand. No one wants a repeat of last December, when an operational meltdown at Southwest AirlinesLUV.N resulted in almost 17,000 flight cancellations, disrupting travel plans for 2 million customers.
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American Airlines AAL.O COO David Seymour said the airline has learned from the past. By Rajesh Kumar Singh, Doyinsola Oladipo, David Shepardson May 26 (Reuters) - After two successive summers of travel chaos, U.S. airlines are going all out to prevent large-scale flight disruptions in the face of rising demand. Carriers have trimmed flight schedules, beefed up staffing, and invested in airport infrastructure and technology to be ready for the busiest travel season of the year, starting with the traditional kickoff on the Memorial Day holiday weekend.
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American Airlines AAL.O COO David Seymour said the airline has learned from the past. By Rajesh Kumar Singh, Doyinsola Oladipo, David Shepardson May 26 (Reuters) - After two successive summers of travel chaos, U.S. airlines are going all out to prevent large-scale flight disruptions in the face of rising demand. Carriers have trimmed flight schedules, beefed up staffing, and invested in airport infrastructure and technology to be ready for the busiest travel season of the year, starting with the traditional kickoff on the Memorial Day holiday weekend.
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2574.0
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2023-05-26 00:00:00 UTC
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Airline Stock Roundup: RYAAY's Q4 Loss, AAL's Labor Deal & More
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-ryaays-q4-loss-aals-labor-deal-more
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In the past week, Ryanair Holdings RYAAY reported a narrower-than-expected loss for the fourth quarter of fiscal 2023. Revenues also beat the consensus mark and increased year over year, owing to upbeat traffic volumes.
American Airlines AAL was also in the news, courtesy of its agreement in principle with its pilot union, Allied Pilots Association. Meanwhile, AAL’s Northeast Alliance with JetBlue Airways JBLU ran into rough weather following a court ruling to end the partnership. Delta Air Lines DAL also grabbed headlines courtesy of its decision to appoint a new chief operating officer.
Recap of the Past Week’s Most Important Stories
1. Ryanair reported fourth-quarter fiscal 2023 (ended Mar 31, 2023) loss of 73 cents per share (excluding a penny from non-recurring items), narrower than the Zacks Consensus Estimate of a loss of 99 cents. In the year-ago reported quarter, RYAAY had incurred a loss of 98 cents per share. Revenues of $1,981.5 million beat the Zacks Consensus Estimate of $1,908.7 million. Revenues improved year over year, driven by upbeat passenger volumes.
On the back of the buoyant traffic scenario, RYAAY’s profit after tax was €1.42 billion in fourth-quarter fiscal 2023 against a net loss of €355 million incurred a year ago. Ryanair expects traffic for fiscal 2024 to be 185 million.
Currently, Ryanair carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. The Allied Pilots Association, which represents 15,000 plus pilots at AAL, reached an agreement in principle with the company. If the collective bargaining agreement materializes, American Airlines pilots would be eligible for a 21% pay raise this year. Further details will be available shortly.
3. American Airlines and JetBlue received a major setback when a federal judge ordered the companies to terminate their alliance in the Northeast as it was anti-competitive. The verdict is in line with the Justice Department’s opinion. The Justice Department’s antitrust suit, filed more than a year ago, accused the alliance of stifling competition. The judge ordered the companies to end the alliance within 30 days of the ruling. Both carriers are likely to challenge the decision. In fact, AAL’s management said that the ruling will not impact its earnings performance.
4. Delta announced that it will get a new chief operating officer from Jun 12. This Atlanta-based carrier appointed Mike Spanos for the new role. Spanos has more than two decades of work experience and has been associated with many big companies. Most recently, he was with Six Flags Entertainment SIX as its president and CEO.
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 stocks exhibited a mixed trend with respect to price over the past week. However, the gains were muted in nature. As a result, the NYSE ARCA Airline Index gained marginally over the past week. Over the course of past six months, the NYSE ARCA Airline Index has appreciated 3.9%.
What’s Next in the Airline Space?
Investors will be looking forward to further updates on the alliance between American Airlines and JetBlue.
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
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
Six Flags Entertainment Corporation New (SIX) : 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 was also in the news, courtesy of its agreement in principle with its pilot union, Allied Pilots Association. Meanwhile, AAL’s Northeast Alliance with JetBlue Airways JBLU ran into rough weather following a court ruling to end the partnership. The Allied Pilots Association, which represents 15,000 plus pilots at AAL, reached an agreement in principle with the company.
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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 Six Flags Entertainment Corporation New (SIX) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL was also in the news, courtesy of its agreement in principle with its pilot union, Allied Pilots Association. Meanwhile, AAL’s Northeast Alliance with JetBlue Airways JBLU ran into rough weather following a court ruling to end the partnership.
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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 Six Flags Entertainment Corporation New (SIX) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL was also in the news, courtesy of its agreement in principle with its pilot union, Allied Pilots Association. Meanwhile, AAL’s Northeast Alliance with JetBlue Airways JBLU ran into rough weather following a court ruling to end the partnership.
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American Airlines AAL was also in the news, courtesy of its agreement in principle with its pilot union, Allied Pilots Association. Meanwhile, AAL’s Northeast Alliance with JetBlue Airways JBLU ran into rough weather following a court ruling to end the partnership. The Allied Pilots Association, which represents 15,000 plus pilots at AAL, reached an agreement in principle with the company.
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2575.0
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2023-05-26 00:00:00 UTC
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ANALYSIS-US airlines gear up for 'Super Bowl' of travel season
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AAL
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https://www.nasdaq.com/articles/analysis-us-airlines-gear-up-for-super-bowl-of-travel-season-0
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nan
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nan
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By Rajesh Kumar Singh, Doyinsola Oladipo, David Shepardson
May 26 (Reuters) - After two successive summers of travel chaos, U.S. airlines are going all out to prevent large-scale flight disruptions in the face of rising demand.
Carriers have trimmed flight schedules, beefed up staffing, and invested in airport infrastructure and technology to be ready for the busiest travel season of the year, starting with the traditional kickoff on the Memorial Day holiday weekend.
Summer tends to be the most profitable season for airlines, but it is also the busiest time of the year, raising the stakes.
The Transportation Security Administration said Friday it screened 2.658 million passengers on Thursday, the highest number in a single day since November 2019.
Industry group Airlines for America estimates a record 256.8 million passengers will fly in the June-August quarter, up 1% over the 254.6 million passengers in the same period in 2019.
"It is kind of our Super Bowl," United Airlines UAL.O Chief Operating Officer Toby Enqvist told Reuters.
No one wants a repeat of last December, when an operational meltdown at Southwest AirlinesLUV.N resulted in almost 17,000 flight cancellations, disrupting travel plans for 2 million customers.
The desire to travel for many is high, however.
Jihane Jeanty, 36, has planned trips to Florida, Mexico City and Asia this summer, thanks to her flexible work arrangement.
The Los Angeles-based marketing director is unconcerned about flight delays and cancellations even though they are "never fun."
"It does happen, so I really don't let it throw me anymore," she said.
Nearly a quarter of flights were either canceled or delayed last summer, according to flight-tracking service FlightAware.
A recent survey by consultant J.D. Power shows customer satisfaction with major airlines is down significantly. The industry is also facing heat from the Biden administration, which wants airlines to compensate passengers with cash for lengthy delays.
Rising numbers of disputes between travellers and airlines globally are driving fresh legislation and calls for tougher enforcement of existing rules to protect consumers.
'THIS IS A TEST'
U.S. Transportation Secretary Pete Buttigieg said this week Memorial Day will be a "test to the system." He said delay and cancellation rates were unacceptable last year and cannot happen again.
Overall, 42.3 million Americans are estimated to travel over the May 29 U.S. Memorial Day holiday weekend, AAA estimates.
The Federal Aviation Administration estimates nearly 313,000 flights will operate over the seven-day period ending May 30, up 4.5% from 2022 and just below 2019 pre-pandemic levels.
Demand is stronger for international trips this summer, driving up airfares to Europe and Asia to the highest level in more than five years, said online travel agency Hopper.
Carriers are performing far better this year, but a shortage of air traffic controllers has forced them to trim New York City-area flights. They are flying larger planes to compensate for fewer flights.
United CEO Scott Kirby has said the FAA needs more resources to handle the rising number of flights. Buttigieg has said the agency needs about 3,000 air traffic controllers, but added weather and airline issues are to blame for most of the problems.
United said it has hired 7,000 employees including pilots, flight attendants, ramp workers and customer service agents this year on top of 15,000 last year.
It is adding gates in New Jersey, Denver and Chicago. It also has added five new hangars worldwide to repair its planes, Enqvist said.
Rival Delta Air Lines Inc DAL.N has hired and trained over 25,000 employees to handle the summer travel rush. Southwest said it will operate 7% more flights compared with last year, with 15% more employees.
American Airlines AAL.O COO David Seymour said the airline has learned from the past. American has invested in technology that allows it to plan for weather events in advance and has tasked general managers with ensuring adequate staffing at its vendors.
"We are really laser-focused on building a plan that has resilience," he said in an interview.
FOCUS-Soaring airline customer complaints push global legislators to act ID:nL8N3776NY
FACTBOX-How Americans plan to travel this Memorial Day ID:nL4N37L3RA
US motorists kick off summer driving season with tame gasoline pricing ID:nL1N37L2N0
(Reporting by Rajesh Kumar Singh in Chicago, Doyinsola Oladipo in New York and David Shepardson in Washington Editing by Ben Klayman, Matthew Lewis and Anna Driver)
((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.
|
American Airlines AAL.O COO David Seymour said the airline has learned from the past. By Rajesh Kumar Singh, Doyinsola Oladipo, David Shepardson May 26 (Reuters) - After two successive summers of travel chaos, U.S. airlines are going all out to prevent large-scale flight disruptions in the face of rising demand. Carriers have trimmed flight schedules, beefed up staffing, and invested in airport infrastructure and technology to be ready for the busiest travel season of the year, starting with the traditional kickoff on the Memorial Day holiday weekend.
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American Airlines AAL.O COO David Seymour said the airline has learned from the past. By Rajesh Kumar Singh, Doyinsola Oladipo, David Shepardson May 26 (Reuters) - After two successive summers of travel chaos, U.S. airlines are going all out to prevent large-scale flight disruptions in the face of rising demand. No one wants a repeat of last December, when an operational meltdown at Southwest AirlinesLUV.N resulted in almost 17,000 flight cancellations, disrupting travel plans for 2 million customers.
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American Airlines AAL.O COO David Seymour said the airline has learned from the past. By Rajesh Kumar Singh, Doyinsola Oladipo, David Shepardson May 26 (Reuters) - After two successive summers of travel chaos, U.S. airlines are going all out to prevent large-scale flight disruptions in the face of rising demand. Carriers have trimmed flight schedules, beefed up staffing, and invested in airport infrastructure and technology to be ready for the busiest travel season of the year, starting with the traditional kickoff on the Memorial Day holiday weekend.
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American Airlines AAL.O COO David Seymour said the airline has learned from the past. By Rajesh Kumar Singh, Doyinsola Oladipo, David Shepardson May 26 (Reuters) - After two successive summers of travel chaos, U.S. airlines are going all out to prevent large-scale flight disruptions in the face of rising demand. Carriers have trimmed flight schedules, beefed up staffing, and invested in airport infrastructure and technology to be ready for the busiest travel season of the year, starting with the traditional kickoff on the Memorial Day holiday weekend.
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2576.0
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2023-05-26 00:00:00 UTC
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Will American Airlines Stock Recover To Its Pre-Inflation-Shock Level?
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AAL
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https://www.nasdaq.com/articles/will-american-airlines-stock-recover-to-its-pre-inflation-shock-level
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nan
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nan
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American Airlines stock (NASDAQ: AAL) currently trades at $15 per share, more than 40% below its level in June 2021, and it seems like it can see higher levels over time. American Airlines, one of the largest players in the country’s airline industry, saw its stock trading at around $25 in early June 2021, just before the Fed started increasing rates, and is still 40% below that level. The stock has gained 15% since its low in September 2022 compared to the S&P 500, which gained about 6% during this period. The rally in the stock over recent months has been driven by a steady decline in the inflation rate in response to the Fed’s aggressive rate hike plan – although investors still have concerns about a potential recession. The notable increase in American Airlines’ revenues over recent quarters has also contributed to the stock recovery.
Returning to the pre-inflation shock level means that AAL stock will have to gain more than 65% from here. However, we do not believe that will materialize any time soon and estimate American Airlines’ valuation to be around $16 per share, implying over 15% gains. This is because the company has higher debt levels, and its operating margin of 7.3% in 2022 is still below its pre-pandemic levels. With elevated fuel costs, the company may see slower earnings growth in the near term. We believe that the adjusted earnings will likely remain below its pre-pandemic figure of $3.79 (2019) in 2023 as well as 2024.
Our detailed analysis of American Airlines’ upside post-inflation shock captures trends in the company’s stock during the turbulent market conditions seen over 2022 and compares these trends to the stock’s performance during the 2008 recession.
2022 Inflation Shock
Timeline of Inflation Shock So Far:
2020 – early 2021: Increase in money supply to cushion the impact of lockdowns led to high demand for goods; producers unable to match up.
Early 2021: Shipping snarls and worker shortages by the coronavirus pandemic continue to hurt the supply
April 2021: Inflation rates cross 4% and increase rapidly
Early 2022: Energy and food prices spike due to the Russian invasion of Ukraine. Fed begins its rate hike process
June 2022: Inflation levels peak at 9% – the highest level in 40 years. S&P 500 index declines more than 20% from peak levels.
July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline
Since October 2022: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses
In contrast, here’s how AAL stock and the broader market performed during the 2007/2008 crisis.
Timeline of 2007-08 Crisis
10/1/2007: Approximate pre-crisis peak in S&P 500 index
9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08)
3/1/2009: Approximate bottoming out of S&P 500 index
12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008)
AAL and S&P 500 Performance During 2007-08 Crisis
AAL stock declined from nearly $26 in September 2007 (pre-crisis peak) to below $3 in March 2009 (as the markets bottomed out), implying AAL stock lost almost 90% of its pre-crisis value. It recovered post the 2008 crisis to levels of around $5 in early 2010, rising 70% between March 2009 and January 2010. The S&P 500 Index saw a decline of 51%, falling from levels of 1,540 in September 2007 to 757 in March 2009. It then rallied 48% between March 2009 and January 2010 to reach levels of 1,124.
AAL Fundamentals Over Recent Years
AAL revenues fell sharply from $45.8 billion in 2019 to just $17.3 billion in 2020 as the Covid-19 outbreak hit the airline industry hard. Revenues improved gradually over 2021 before reaching $49 billion in 2022, with a recovery in travel demand. American Airlines’ revenue passenger miles (RPM) surged 2.3x between 2020 and 2022, while passenger revenue per available seat mile (PRASM) rose 69%.
Despite higher revenue, earnings decreased from $3.80 in 2019 to $0.20 in 2022 due to higher fuel and other operating costs. AAL reported a $18.36 per share loss in 2020 when the pandemic severely impacted its financials.
Does AAL Have A Sufficient Cash Cushion To Meet Its Obligations Through The Ongoing Inflation Shock?
AAL’s total debt 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. However, the rise in cash balance is 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.
Conclusion
With the Fed’s efforts to tame runaway inflation rates helping market sentiments, we believe American Airlines (AAL) stock has the potential for solid gains once fears of a potential recession are allayed. That said, the pressure on the company’s balance sheet remains a significant risk factor to realizing these gains.
While American Airlines stock may have some room for growth, our analysis of American Airlines vs. Delta Airlines finds the latter to be a better investment option. 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 high-performance portfolio with a low downside instead? Here’s a reinforced value portfolio that has beaten the market consistently while limiting losses during periods of sharp market declines.
Returns May 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
AAL Return 0% 7% -71%
S&P 500 Return -1% 7% 84%
Trefis Multi-Strategy Portfolio 0% 9% 243%
[1] Month-to-date and year-to-date as of 5/24/2023
[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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July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline Since October 2022: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses In contrast, here’s how AAL stock and the broader market performed during the 2007/2008 crisis. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) AAL and S&P 500 Performance During 2007-08 Crisis AAL stock declined from nearly $26 in September 2007 (pre-crisis peak) to below $3 in March 2009 (as the markets bottomed out), implying AAL stock lost almost 90% of its pre-crisis value. American Airlines stock (NASDAQ: AAL) currently trades at $15 per share, more than 40% below its level in June 2021, and it seems like it can see higher levels over time.
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July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline Since October 2022: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses In contrast, here’s how AAL stock and the broader market performed during the 2007/2008 crisis. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) AAL and S&P 500 Performance During 2007-08 Crisis AAL stock declined from nearly $26 in September 2007 (pre-crisis peak) to below $3 in March 2009 (as the markets bottomed out), implying AAL stock lost almost 90% of its pre-crisis value. American Airlines stock (NASDAQ: AAL) currently trades at $15 per share, more than 40% below its level in June 2021, and it seems like it can see higher levels over time.
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American Airlines stock (NASDAQ: AAL) currently trades at $15 per share, more than 40% below its level in June 2021, and it seems like it can see higher levels over time. July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline Since October 2022: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses In contrast, here’s how AAL stock and the broader market performed during the 2007/2008 crisis. Timeline of 2007-08 Crisis 10/1/2007: Approximate pre-crisis peak in S&P 500 index 9/1/2008 – 10/1/2008: Accelerated market decline corresponding to Lehman bankruptcy filing (9/15/08) 3/1/2009: Approximate bottoming out of S&P 500 index 12/31/2009: Initial recovery to levels before accelerated decline (around 9/1/2008) AAL and S&P 500 Performance During 2007-08 Crisis AAL stock declined from nearly $26 in September 2007 (pre-crisis peak) to below $3 in March 2009 (as the markets bottomed out), implying AAL stock lost almost 90% of its pre-crisis value.
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American Airlines stock (NASDAQ: AAL) currently trades at $15 per share, more than 40% below its level in June 2021, and it seems like it can see higher levels over time. Returning to the pre-inflation shock level means that AAL stock will have to gain more than 65% from here. July – September 2022: Fed hikes interest rates aggressively – resulting in an initial recovery in the S&P 500 followed by another sharp decline Since October 2022: Fed continues rate hike process; improving market sentiments help S&P500 recoup some of its losses In contrast, here’s how AAL stock and the broader market performed during the 2007/2008 crisis.
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2577.0
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2023-05-25 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-8
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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 mid-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
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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 mid-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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2578.0
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2023-05-24 00:00:00 UTC
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More tech investment needed to prevent aviation accidents - US safety board
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AAL
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https://www.nasdaq.com/articles/more-tech-investment-needed-to-prevent-aviation-accidents-us-safety-board
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nan
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nan
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By David Shepardson
WASHINGTON, May 23 (Reuters) - The U.S. needs to invest more in aviation safety technology solutions after a series of close-call runway incidents this year, the head of the U.S. National Transportation Safety Board said on Tuesday.
The NTSB is investigating six runway incursion events since January including some that could have been catastrophic.
Technology systems that help detect aircraft and ground vehicles at airports to prevent runway incursion are currently used at 43 U.S. airports. That technology needs to be upgraded and all other commercial airports also need additional technology, Jennifer Homendy, chair of the NTSB, told reporters.
She was speaking after a five-hour meeting with industry, union, government and academic representatives on ways to address runway incursions.
"We have to make sure all these upgrades to safety can be funded," Homendy said, adding that proper pilot and air traffic control staffing was also important.
The U.S. has about 500 commercial airports.
The U.S. runway incursion rate steadily increased from late 2022 and into 2023, peaking in March at 33 per 1 million takeoffs and landings. That rate fell to 19 in April.
Transportation Secretary Pete Buttigieg said the rate was coming closer to normal levels and vowed continued vigilance.
The U.S. has not had a major fatal U.S. passenger airline crash since February 2009.
In March, the FAA said it was taking steps to improve air traffic control, convening a safety summit and issuing a safety alert. In April, it named an independent safety review team and on Monday, it announced an investment of $100 million in 12 airports for improvements to taxiways and lighting to reduce runway incursions.
Homendy said a FedEx FDX.N cargo plane and a Southwest Airlines LUV.N Boeing 737 that came within about 115 feet (35 metres) of each other in Austin on Feb. 4 in poor visibility conditions could have been a "terrible tragedy."
She disclosed Tuesday that the FedEx plane's first officer saw a single light from the Southwest 737 and then a silhouette of the plane before they aborted their planned landing.
"The first officer said, 'Hey this is what I see' and then says 'I think we should perform a go around,'" Homendy told reporters. "This crew did a great job."
Near-miss incidents have also occurred in Boston, Florida and include a collision at New York's JFK airport between a Delta Air Lines DAL.N plane and an American Airlines AAL.O Boeing 777.
(Reporting by David Shepardson; Editing by Edwina Gibbs)
((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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Near-miss incidents have also occurred in Boston, Florida and include a collision at New York's JFK airport between a Delta Air Lines DAL.N plane and an American Airlines AAL.O Boeing 777. In April, it named an independent safety review team and on Monday, it announced an investment of $100 million in 12 airports for improvements to taxiways and lighting to reduce runway incursions. Homendy said a FedEx FDX.N cargo plane and a Southwest Airlines LUV.N Boeing 737 that came within about 115 feet (35 metres) of each other in Austin on Feb. 4 in poor visibility conditions could have been a "terrible tragedy."
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Near-miss incidents have also occurred in Boston, Florida and include a collision at New York's JFK airport between a Delta Air Lines DAL.N plane and an American Airlines AAL.O Boeing 777. That technology needs to be upgraded and all other commercial airports also need additional technology, Jennifer Homendy, chair of the NTSB, told reporters. In March, the FAA said it was taking steps to improve air traffic control, convening a safety summit and issuing a safety alert.
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Near-miss incidents have also occurred in Boston, Florida and include a collision at New York's JFK airport between a Delta Air Lines DAL.N plane and an American Airlines AAL.O Boeing 777. By David Shepardson WASHINGTON, May 23 (Reuters) - The U.S. needs to invest more in aviation safety technology solutions after a series of close-call runway incidents this year, the head of the U.S. National Transportation Safety Board said on Tuesday. Technology systems that help detect aircraft and ground vehicles at airports to prevent runway incursion are currently used at 43 U.S. airports.
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Near-miss incidents have also occurred in Boston, Florida and include a collision at New York's JFK airport between a Delta Air Lines DAL.N plane and an American Airlines AAL.O Boeing 777. That technology needs to be upgraded and all other commercial airports also need additional technology, Jennifer Homendy, chair of the NTSB, told reporters. In April, it named an independent safety review team and on Monday, it announced an investment of $100 million in 12 airports for improvements to taxiways and lighting to reduce runway incursions.
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2579.0
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2023-05-23 00:00:00 UTC
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5 Broker-Favored Stocks to Watch Amid the Debt-Ceiling Standoff
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AAL
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https://www.nasdaq.com/articles/5-broker-favored-stocks-to-watch-amid-the-debt-ceiling-standoff
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nan
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nan
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The U.S. equity market has been gripped by extreme volatility of late, courtesy of the ongoing debt-ceiling crisis. The debate on increasing the U.S. debt ceiling has led to panic among investors. In fact, per United States Secretary of the Treasury Janet Yellen, the government may default on its obligations early next month, even as early as Jun 1, unless Congress gives the go-ahead to borrow further. Naturally, this has given rise to a great deal of volatility and uncertainty.
However, the ongoing turbulence does not mean that investors should shun equities. So, what’s the way forward. One way is to follow the action of brokers who are deemed to be experts in the field of investing. In this regard, stocks like American Airlines AAL, Bread Financial BFH, Avnet AVT, Commercial Vehicle Group CVGI and American Axle & Manufacturing Holdings AXL should be on an investor’s watchlist.
Brokers go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations. Since brokers follow the stocks in their coverage in great detail, they revise their earnings estimates after carefully examining the pros and cons of an event for the concerned company. Estimate revisions serve as an important pointer regarding the price of a stock. Naturally, paying heed to such well-researched information is a prudent choice for individual investors as they want to generate handsome returns from their portfolio of stocks, irrespective of the surrounding market conditions.
To take care of the earnings performance, we have designed a screen based on improving analyst recommendation and upward estimate revisions over the last four weeks.
Revenues Performance Should Not be Overlooked
According to many market watchers, a revenue beat is more creditable for a company than a mere earnings outperformance. Therefore, one must take the 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 the 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 criteria 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 eliminates the ADR and Canadian stocks.
American Airlines is based in Fort Worth, TX. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. However, high fuel costs are hurting the bottom line.
Over the past 60 days, the Zacks Consensus Estimate for AAL’s 2023 earnings has been revised 22.22% upward. American Airlines currently carries a Zacks Rank #3 (Hold).
Bread Financial, based in Columbus, OH, continues to benefit from data-driven marketing strategies. Solid receivables growth in Card Services should drive its top line. Acquisitions and divestitures will aid the company in growing inorganically and expanding its international footprint.
Over the past 60 days, the Zacks Consensus Estimate for BFH’s 2023 earnings has been revised 19.92% upward. Bread Financial currently carries a Zacks Rank #3.
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%.
Commercial Vehicle Group supplies interior systems, vision safety solutions and other cab-related products for the global commercial vehicle market, including the heavy-duty (Class 8) truck market, the construction market and other specialized transportation markets.
Over the past 60 days, the Zacks Consensus Estimate for CVGI’s 2023 earnings has been revised 41.79% upward. Commercial Vehicle Group currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Axle’s significant strides and collaborations in the electric drive space bode well for its top- and bottom- line growth. Efforts aimed at diversifying its business, products and customer base are generating impressive results for the company.
American Axle has an impressive surprise history, with its earnings surpassing the Zacks Consensus Estimate in three of the last four quarters (missing the mark on the other occasion). AXL currently carries a Zacks Rank #3.
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.
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
Avnet, Inc. (AVT) : Free Stock Analysis Report
American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Commercial Vehicle Group, Inc. (CVGI) : Free Stock Analysis Report
Bread Financial Holdings, Inc. (BFH) : 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 this regard, stocks like American Airlines AAL, Bread Financial BFH, Avnet AVT, Commercial Vehicle Group CVGI and American Axle & Manufacturing Holdings AXL should be on an investor’s watchlist. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. Over the past 60 days, the Zacks Consensus Estimate for AAL’s 2023 earnings has been revised 22.22% upward.
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In this regard, stocks like American Airlines AAL, Bread Financial BFH, Avnet AVT, Commercial Vehicle Group CVGI and American Axle & Manufacturing Holdings AXL should be on an investor’s watchlist. Click to get this free report Avnet, Inc. (AVT) : Free Stock Analysis Report American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Commercial Vehicle Group, Inc. (CVGI) : Free Stock Analysis Report Bread Financial Holdings, Inc. (BFH) : Free Stock Analysis Report To read this article on Zacks.com click here. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL.
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In this regard, stocks like American Airlines AAL, Bread Financial BFH, Avnet AVT, Commercial Vehicle Group CVGI and American Axle & Manufacturing Holdings AXL should be on an investor’s watchlist. Click to get this free report Avnet, Inc. (AVT) : Free Stock Analysis Report American Axle & Manufacturing Holdings, Inc. (AXL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Commercial Vehicle Group, Inc. (CVGI) : Free Stock Analysis Report Bread Financial Holdings, Inc. (BFH) : Free Stock Analysis Report To read this article on Zacks.com click here. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL.
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In this regard, stocks like American Airlines AAL, Bread Financial BFH, Avnet AVT, Commercial Vehicle Group CVGI and American Axle & Manufacturing Holdings AXL should be on an investor’s watchlist. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL. Over the past 60 days, the Zacks Consensus Estimate for AAL’s 2023 earnings has been revised 22.22% upward.
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2580.0
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2023-05-23 00:00:00 UTC
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Mining lags on female C-suite, board representation
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AAL
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https://www.nasdaq.com/articles/mining-lags-on-female-c-suite-board-representation
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nan
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nan
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By Clara Denina and Helen Reid
LONDON, May 23 (Reuters) - Mining firms lag far behind other sectors on female representation in top leadership, data released on Tuesday showed.
S&P Global Commodity Insights' figures highlight the industry's struggle to improve gender equity, with women filling just 12.1% of the highest-ranking executive positions across more than 2,000 publicly-listed miners globally as of April, a rise of only 1.6 percentage points from October 2021.
Women currently hold 14% of all mining executive positions and 12.3% of board roles, the data showed. This compares to a female representation of 42.7% in senior and leadership roles globally across sectors, according to the World Economic Forum.
"Change takes time, and progress may vary across different industries and regions," said Barbara Dischinger, director of London-based International Women in Mining.
Dischinger said barriers slowing the pace of expected improvement include implicit biases in selection and promotion processes and a lack of role models, mentoring and sponsorship.
Executive and boardroom diversity has become a focus for many policymakers and investors who say a broader range of experience improves decision-making and corporate culture.
Despite mining CEOs saying gender diversity is a priority and setting ambitious goals, progress remains slow and patchy.
The share of female senior managers at Anglo American AAL.L was stable at 29% in 2022 from a year earlier, versus a goal of 33% by 2023, while the proportion of female senior leaders at Rio Tinto RIO.LRIO.AX was 28.3% last year, a 0.9 percentage point rise from 2021, their annual reports show.
"If we do not address challenges relating to Diversity, Equity and Inclusion (DEI), there will be far-reaching implications for the industry's ability to attract and retain the talent needed," said Rohitesh Dhawan, CEO of the International Council of Mining and Minerals.
"We have an obligation to eradicate discrimination, harassment, and assault of any kind in our workplaces," he said.
An independent report commissioned by Rio's management and published in 2022 found 28.2% of women working in the company reported experiencing sexual harassment at work.
Fund manager abrdn said in February it had engaged with some of the largest mining companies it holds shares in after "incidents of unacceptable workplace behaviours".
"What we want is for mining companies' rigorous health and safety standards to be expanded to include employees' psychological wellbeing and potential risk of harassment," said Andrew Mason, abrdn head of active ownership.
"Companies need to show they have those measures in place to attract diverse employees."
(Reporting by Clara Denina and Helen Reid; Editing by Alexander Smith)
((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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The share of female senior managers at Anglo American AAL.L was stable at 29% in 2022 from a year earlier, versus a goal of 33% by 2023, while the proportion of female senior leaders at Rio Tinto RIO.LRIO.AX was 28.3% last year, a 0.9 percentage point rise from 2021, their annual reports show. By Clara Denina and Helen Reid LONDON, May 23 (Reuters) - Mining firms lag far behind other sectors on female representation in top leadership, data released on Tuesday showed. "If we do not address challenges relating to Diversity, Equity and Inclusion (DEI), there will be far-reaching implications for the industry's ability to attract and retain the talent needed," said Rohitesh Dhawan, CEO of the International Council of Mining and Minerals.
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The share of female senior managers at Anglo American AAL.L was stable at 29% in 2022 from a year earlier, versus a goal of 33% by 2023, while the proportion of female senior leaders at Rio Tinto RIO.LRIO.AX was 28.3% last year, a 0.9 percentage point rise from 2021, their annual reports show. Women currently hold 14% of all mining executive positions and 12.3% of board roles, the data showed. This compares to a female representation of 42.7% in senior and leadership roles globally across sectors, according to the World Economic Forum.
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The share of female senior managers at Anglo American AAL.L was stable at 29% in 2022 from a year earlier, versus a goal of 33% by 2023, while the proportion of female senior leaders at Rio Tinto RIO.LRIO.AX was 28.3% last year, a 0.9 percentage point rise from 2021, their annual reports show. By Clara Denina and Helen Reid LONDON, May 23 (Reuters) - Mining firms lag far behind other sectors on female representation in top leadership, data released on Tuesday showed. S&P Global Commodity Insights' figures highlight the industry's struggle to improve gender equity, with women filling just 12.1% of the highest-ranking executive positions across more than 2,000 publicly-listed miners globally as of April, a rise of only 1.6 percentage points from October 2021.
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The share of female senior managers at Anglo American AAL.L was stable at 29% in 2022 from a year earlier, versus a goal of 33% by 2023, while the proportion of female senior leaders at Rio Tinto RIO.LRIO.AX was 28.3% last year, a 0.9 percentage point rise from 2021, their annual reports show. By Clara Denina and Helen Reid LONDON, May 23 (Reuters) - Mining firms lag far behind other sectors on female representation in top leadership, data released on Tuesday showed. Women currently hold 14% of all mining executive positions and 12.3% of board roles, the data showed.
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2581.0
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2023-05-23 00:00:00 UTC
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Airline ETFs: What They Are and How to Invest
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AAL
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https://www.nasdaq.com/articles/airline-etfs%3A-what-they-are-and-how-to-invest
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nan
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nan
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The global airline industry has fascinated and captivated adventurers, dreamers and business travelers. It's an industry that embodies the essence of freedom, connecting people, cultures and continents with wings of steel. However, amid the trials and tribulations recently affecting the airlines, there exists an avenue for investors to navigate the skies of opportunity and potentially soar to new heights. That opportunity is through airline ETFs. Exchange-traded funds (ETFs) are innovative investment instruments that offer a unique and diversified investment in the airline industry.
Let's unravel the mysteries of airline ETFs by exploring what they are, how they work and why they could be the key to capturing the potential growth and resilience of the airline industry. So fasten your seatbelts, stow your tray tables and prepare for a thrilling journey into the world of airline ETFs.
What to Know About Airline ETFs
Investing in the airline industry can be achieved through exchange-traded Funds (ETFs), which offer a distinct and efficient approach. Airline ETFs provide investors with a diversified portfolio of airline-related stocks, allowing them to avoid concentrating their investments on individual companies.
Some airline ETFs pay dividends, allowing savvy investors who utilize dividend investing in their strategy to strengthen their portfolio further. Airline ETFs typically include a range of airline stocks, encompassing major carriers, regional airlines and ancillary businesses within the industry. Investing in an airline ETF can mitigate risks associated with relying on a single airline stock. These funds are designed to focus on the airline industry, offering exposure to its potential growth and resilience.
The largest airline ETF is the U.S. Global Jets ETF (NYSEARCA: JETS), which includes both passenger airlines and cargo airlines among its top holdings.
You can also invest in other transportation ETFs as well, such as the iShares U.S. Transportation ETF (BATS: IYT). Check out IYT's top holdings below.
Top Holdings
Curious about the companies that dominate the portfolios of Airline Industry ETFs? Let's take a quick look at some of the top-rated holdings of these ETFs, providing you with a snapshot of the major players within the airline industry. By understanding the composition of these ETFs and the companies they invest in, you can gain valuable insights into the industry's key players and potential growth areas.
Delta Air Lines Inc.
As one of the world's largest airlines, Delta Air Lines Inc. (NYSE: DAL) holds a prominent position in many Airline Industry ETFs as a blue-chip stock. Known for its extensive route network and strong customer service, Delta has established itself as a leading player in the global aviation industry.
American Airlines Group Inc.
Another significant holding among airline industry ETFs is American Airlines Group Inc. (NASDAQ: AAL), which operates one of the largest airline networks worldwide. With its extensive fleet and a broad range of destinations, American Airlines caters to both domestic and international travelers.
Southwest Airlines Co.
Known for its low-cost and customer-friendly approach, Southwest Airlines Co. (NYSE: LUV) has become a favorite among investors and passengers alike. With its point-to-point service model and focus on customer satisfaction, Southwest holds a prominent position in airline industry ETFs.
United Airlines Holdings Inc.
United Airlines Holdings Inc. (NASDAQ: UAL) is a blue-chip company to know in the airline industry, offering an extensive global network and a range of services. With its strategic partnerships and strong market presence, United Airlines is a key component of many Airline Industry ETFs.
Alaska Air Group Inc.
Alaska Air Group Inc. (NYSE: ALK) operates one of the largest regional airlines in the United States. With its focus on serving the West Coast and connecting passengers to various destinations, Alaska Air Group has earned a spot among the top holdings in Airline Industry ETFs.
These are just some of the top holdings in airline industry ETFs. The composition of these ETFs may vary over time as market conditions and investor sentiment evolve. However, these companies represent a solid foundation for understanding the key players in the airline industry and the companies that shape the performance of these ETFs. MarketBeat tracks the industry with a curated list of the best airline stocks that you can utilize to compare and contrast your options.
Pros and Cons of Investing in Airline ETFs
Investing in airline exchange-traded funds (ETFs) offers a unique opportunity to participate in the potential growth and resilience of the airline industry. However, like any investment, there are advantages and disadvantages to consider before diving into airline ETFs. Let's explore the pros and cons of investing in these funds, providing you with a comprehensive understanding of their potential benefits and challenges.
By weighing these factors, you can make informed decisions and determine if airline ETFs align with your investment goals and risk tolerance.
Pros
The benefits of investing in an airline ETF includes:
Diversification: Investing in an airlines ETF provides investors with diversification by holding a basket of airline stocks. This diversification helps mitigate the risks associated with investing in individual airline companies. It means that if one airline company underperforms, the impact on the overall investment is reduced since the ETF includes other airlines that may perform well. Consider including travel ETFs which contain a mixture of airline and hospitality stocks like hotels, cruise lines, car rental companies and travel agencies. Researching multiple market sectors to find mixed ETFs that include airline stocks provides the bonus of simultaneous exposure to multiple industry sectors, increasing the diversification of your portfolio.
Industry exposure: Airline ETFs offer investors exposure to the airline industry as a whole, allowing them to participate in the potential growth and resilience of the sector. It means that investors can benefit from the overall performance of the industry rather than relying on the success of a single airline company.
Convenience and accessibility: ETFs are traded on stock exchanges, making them easily accessible to investors. They can be bought and sold throughout the trading day, providing flexibility and liquidity. Investors can invest in airline ETFs through brokerage accounts, just like they would with individual stocks.
Cost efficiency: Airline ETFs generally have lower expense ratios than actively managed funds. This cost efficiency can be attractive to investors looking for a more affordable investment option, as lower expenses can positively impact long-term returns.
Professional management: ETFs are managed by experienced professionals who aim to track a specific index or strategy. This means that investors can benefit from the expertise of the fund managers who make investment decisions on behalf of the ETF, saving them the time and effort of researching and selecting individual airline stocks.
Liquidity: An airline's ETF will typically have higher trading volumes, which translates into greater liquidity. This liquidity allows investors to enter or exit their positions more easily without significantly impacting the market price of the ETF. It provides flexibility and ensures that investors can execute their investment decisions efficiently.
Risk mitigation: By investing in an airline ETF, investors can diversify their exposure across multiple airlines, reducing the impact of negative events specific to a particular company. This diversification can help mitigate the risk associated with unforeseen circumstances, such as economic downturns, fuel price fluctuations, or industry-specific challenges.
Dividends: Some airline ETFs may distribute dividends to investors. These dividends can provide a potential income stream for investors, adding to the overall return on their investment. Take time to research how to choose the best dividend-paying stocks and ETFs if obtaining an income stream from your portfolio is part of your investment strategy.
Each of these pros represents a potential benefit to investors considering airline ETFs. By carefully assessing these advantages, investors can determine whether investing in airline ETFs aligns with their investment objectives, risk tolerance and overall portfolio strategy.
Cons
Industry volatility: The airline industry is known for its inherent volatility, as it is susceptible to factors such as fuel prices, geopolitical events, economic conditions and regulatory changes. Investing in airline ETFs means being exposed to these industry-specific risks, which can result in fluctuations in the value of the investment. Investors should be prepared for potential periods of volatility and be able to tolerate short-term fluctuations in their portfolios.
Economic sensitivity: The airline industry is closely tied to the economy's overall health. During economic downturns, demand for air travel tends to decline, affecting airline revenues and profitability. This economic sensitivity can impact the performance of airline ETFs, and investors need to be aware of the potential impact of economic cycles on their investments.
Company-specific risks: While airline ETFs provide diversification, they still carry company-specific risks. Certain airlines within the ETF may face individual challenges such as labor disputes, rising operating costs, management issues, or competitive pressures. These risks can significantly impact the performance of the ETF and the overall investment returns.
Regulatory and political factors: The airline industry is subject to extensive regulations and policies at both the domestic and international levels. Changes in air travel regulations, government policies, or political events can affect the industry and the performance of airline ETFs. Investors should consider the potential impact of regulatory and political factors on their investment and monitor regulatory changes and air travel consumer reports.
Concentrated exposure: Although airline ETFs aim to provide diversification, they may still have a significant portion of their holdings concentrated in a few major airlines. If these major airlines face substantial challenges or underperform, it can impact the overall performance of the ETF. Investors should be aware of the concentration risk and its potential implications.
Lack of control: Investing in ETFs means relinquishing direct control over individual investment decisions. The fund managers make decisions on the composition and weightings of the ETF's holdings. While this can be advantageous regarding professional management, it also means that investors have limited control over the specific stocks held in the ETF.
Fees and expenses: While ETFs generally have lower expense ratios than actively managed funds, they still come with fees and expenses. These costs can reduce the net returns to investors over time. Investors need to consider the fees associated with investing in airline ETFs and assess their impact on long-term investment performance.
Market risk: Like any investment, airline ETFs are subject to general market risks, including fluctuations in stock prices, interest rates and overall market sentiment. Market downturns or adverse investor sentiment can impact the value of the ETF, even if the underlying airlines are performing well. Research stocks and ETFs that have high market sentiment.
Considering these cons is crucial for investors evaluating airline ETFs. It is essential to carefully assess these potential risks and drawbacks in the context of one's investment goals, risk tolerance and overall portfolio strategy.
How to Add Airline ETFs to Your Portfolio
Ready to take flight and add airline exchange-traded funds (ETFs) to your investment portfolio? Let’s briefly walk through how to incorporate these ETFs into your portfolio. From choosing a suitable brokerage account to conducting research and executing trades, each step is designed to help you confidently navigate the journey.
Step 1: Evaluate your investment goals and risk tolerance.
Before adding any investment to your portfolio, evaluating your investment goals and risk tolerance is crucial. Is there an airline ETF that fits into your portfolio?
Consider your time horizon, financial objectives and how much risk you are willing to take. Understanding these factors will help you determine the appropriate allocation for your chosen airline ETFs and ensure they align with your overall investment strategy.
Step 2: Choose a reputable brokerage account.
To invest in airline ETFs, you'll need to open a brokerage account. Research and choose a reputable brokerage that offers access to a wide range of ETFs, including airline ETFs. Consider factors such as account fees, trading commissions, available research tools and user-friendly platforms. Selecting the right brokerage will provide you with a seamless investment management experience.
Step 3: Conduct thorough research on airline ETFs.
Before investing in specific airline ETFs, conduct thorough research to understand their underlying holdings, expense ratios, performance history and investment strategies. Analyze factors such as the ETF's tracking index, the weightings of individual airlines in the ETF, any growth-related stocks they might hold and any specific sector or geographic focus. This research will help you make informed decisions and select the ETFs that best align with your investment goals and preferences.
Step 4: Determine the appropriate allocation.
Based on your investment goals and risk tolerance, determine the appropriate allocation for airline ETFs in your portfolio. Consider factors such as your existing asset allocation, diversification across different sectors and the level of exposure you desire to the airline industry. Balancing your portfolio with other asset classes will help maintain a well-diversified, risk-managed investment approach.
Step 5: Place your trade.
Once you have selected the airline ETF you wish to include in your portfolio and determined the desired allocation, it's time to place your trade. Access your brokerage account, navigate to the trading platform and enter the details of your selected ETF purchase. Specify the quantity of shares or the dollar amount you wish to invest. Review the trade details and confirm the execution. Be mindful of any trading fees or commission charges associated with the transaction.
Step 6: Monitor and review regularly.
After adding airline ETFs to your portfolio, monitoring their performance is essential. Keep an eye on the ETFs' overall performance, airline industry changes and any market events that may impact the ETFs' value. Review your chosen ETF’s holdings and listen to earnings calls for each stock the ETF holds to ensure that the ETF and its underlying holdings align with your investment goals. Regularly reviewing your portfolio will allow you to make any necessary adjustments or rebalancing decisions in line with your investment goals.
Following these steps, you can add airline ETFs to your investment portfolio with a well-informed and structured approach. Remember, conducting thorough research is crucial to ensure the investment aligns with your specific financial situation and objectives.
Soar to Success in Your Portfolio
Airline ETFs offer investors a unique avenue to tap into the potential growth and resilience of the airline industry. By diversifying exposure across multiple airlines, investors can mitigate risks associated with individual company performance and benefit from the airline industry.
Investing in airline ETFs requires careful consideration of both the pros and cons. On one hand, they provide diversification, industry exposure, convenience and professional management. On the other hand, they are subject to industry volatility, economic sensitivity and company-specific risks. Investors must weigh these factors and align their investment goals and risk tolerance accordingly.
As the airline industry continues to evolve and adapt, investing in airline ETFs can provide opportunities for investors to participate in its growth. With careful consideration, diligence and ongoing evaluation, investors can benefit from the dynamic nature of the airline industry and the advantages offered by airline ETFs.
FAQs
Questions often arise in the vast landscape of airline ETFs, seeking clarity amidst the investing turbulence. Let's take a look at some of the most commonly asked questions regarding airline ETFs.
Are there any airline ETFs?
Yes, there are several airline ETFs available in the market. These ETFs aim to track the airline industry's performance by holding a diversified portfolio of airline stocks.
What is the largest travel ETF?
The largest travel ETF is the JETS ETF. The US Global Jets ETF (NYSEARCA: JETS) is designed to track the performance of the U.S. Global Jets Index, which includes both passenger airlines and cargo airlines.
Is JETS a good ETF to buy?
The suitability of the U.S. Global Jets ETF (NYSEARCA: JETS), or what is commonly called the JETS ETF, or any ETF for that matter, as an investment depends on various factors such as individual investment goals, risk tolerance and market conditions. It is essential to conduct thorough research and consider your investment objectives before making any investment decisions.
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. Another significant holding among airline industry ETFs is American Airlines Group Inc. (NASDAQ: AAL), which operates one of the largest airline networks worldwide. However, amid the trials and tribulations recently affecting the airlines, there exists an avenue for investors to navigate the skies of opportunity and potentially soar to new heights. With its focus on serving the West Coast and connecting passengers to various destinations, Alaska Air Group has earned a spot among the top holdings in Airline Industry ETFs.
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American Airlines Group Inc. Another significant holding among airline industry ETFs is American Airlines Group Inc. (NASDAQ: AAL), which operates one of the largest airline networks worldwide. Delta Air Lines Inc. As one of the world's largest airlines, Delta Air Lines Inc. (NYSE: DAL) holds a prominent position in many Airline Industry ETFs as a blue-chip stock. Pros and Cons of Investing in Airline ETFs Investing in airline exchange-traded funds (ETFs) offers a unique opportunity to participate in the potential growth and resilience of the airline industry.
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American Airlines Group Inc. Another significant holding among airline industry ETFs is American Airlines Group Inc. (NASDAQ: AAL), which operates one of the largest airline networks worldwide. Pros and Cons of Investing in Airline ETFs Investing in airline exchange-traded funds (ETFs) offers a unique opportunity to participate in the potential growth and resilience of the airline industry. Pros The benefits of investing in an airline ETF includes: Diversification: Investing in an airlines ETF provides investors with diversification by holding a basket of airline stocks.
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American Airlines Group Inc. Another significant holding among airline industry ETFs is American Airlines Group Inc. (NASDAQ: AAL), which operates one of the largest airline networks worldwide. By carefully assessing these advantages, investors can determine whether investing in airline ETFs aligns with their investment objectives, risk tolerance and overall portfolio strategy. From choosing a suitable brokerage account to conducting research and executing trades, each step is designed to help you confidently navigate the journey.
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2582.0
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2023-05-22 00:00:00 UTC
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Unusual Put Option Trade in American Airlines Group (AAL) Worth $106.55K
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AAL
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https://www.nasdaq.com/articles/unusual-put-option-trade-in-american-airlines-group-aal-worth-%24106.55k
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nan
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nan
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On May 22, 2023 at 09:59:35 ET an unusually large $106.55K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $16.00 / share, expiring in 25 day(s) (on June 16, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.07 sigmas above the mean, placing it in the 80.49th 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 1013 funds or institutions reporting positions in American Airlines Group. This is an increase of 7 owner(s) or 0.70% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.13%, an increase of 10.77%. Total shares owned by institutions increased in the last three months by 4.19% to 415,013K shares.
The put/call ratio of AAL is 2.68, indicating a bearish outlook.
Analyst Price Forecast Suggests 15.95% Upside
As of May 11, 2023, the average one-year price target for American Airlines Group is 17.18. The forecasts range from a low of 9.60 to a high of $27.30. The average price target represents an increase of 15.95% from its latest reported closing price of 14.82.
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 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 19,733K shares representing 3.02% ownership of the company. In it's prior filing, the firm reported owning 19,454K shares, representing an increase of 1.42%. The firm decreased its portfolio allocation in AAL by 1.03% over the last quarter.
VPMCX - Vanguard PRIMECAP Fund Investor Shares holds 19,365K shares representing 2.97% ownership of the company. In it's prior filing, the firm reported owning 19,400K shares, representing a decrease of 0.18%. The firm decreased its portfolio allocation in AAL by 1.88% over the last quarter.
JETS - U.S. Global Jets ETF holds 16,712K shares representing 2.56% ownership of the company. In it's prior filing, the firm reported owning 16,590K shares, representing an increase of 0.73%. The firm increased its portfolio allocation in AAL by 2.02% 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.
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 May 22, 2023 at 09:59:35 ET an unusually large $106.55K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $16.00 / share, expiring in 25 day(s) (on June 16, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.07 sigmas above the mean, placing it in the 80.49th 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 10.77%.
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On May 22, 2023 at 09:59:35 ET an unusually large $106.55K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $16.00 / share, expiring in 25 day(s) (on June 16, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.07 sigmas above the mean, placing it in the 80.49th 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 10.77%.
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On May 22, 2023 at 09:59:35 ET an unusually large $106.55K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $16.00 / share, expiring in 25 day(s) (on June 16, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.07 sigmas above the mean, placing it in the 80.49th 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 10.77%.
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On May 22, 2023 at 09:59:35 ET an unusually large $106.55K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $16.00 / share, expiring in 25 day(s) (on June 16, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.07 sigmas above the mean, placing it in the 80.49th 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 10.77%.
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2583.0
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2023-05-22 00:00:00 UTC
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S&P 500 Movers: MU, FICO
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AAL
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https://www.nasdaq.com/articles/sp-500-movers%3A-mu-fico
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nan
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nan
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In early trading on Monday, shares of Fair Isaac topped the list of the day's best performing components of the S&P 500 index, trading up 4.1%. Year to date, Fair Isaac registers a 31.5% gain.
And the worst performing S&P 500 component thus far on the day is Micron Technology, trading down 3.9%. Micron Technology is showing a gain of 31.0% looking at the year to date performance.
Two other components making moves today are American Airlines Group, trading down 3.8%, and Zions Bancorporation, trading up 3.6% on the day.
VIDEO: S&P 500 Movers: MU, FICO
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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Year to date, Fair Isaac registers a 31.5% gain. And the worst performing S&P 500 component thus far on the day is Micron Technology, trading down 3.9%. Micron Technology is showing a gain of 31.0% looking at the year to date performance.
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In early trading on Monday, shares of Fair Isaac topped the list of the day's best performing components of the S&P 500 index, trading up 4.1%. Year to date, Fair Isaac registers a 31.5% gain. And the worst performing S&P 500 component thus far on the day is Micron Technology, trading down 3.9%.
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In early trading on Monday, shares of Fair Isaac topped the list of the day's best performing components of the S&P 500 index, trading up 4.1%. And the worst performing S&P 500 component thus far on the day is Micron Technology, trading down 3.9%. Two other components making moves today are American Airlines Group, trading down 3.8%, and Zions Bancorporation, trading up 3.6% on the day.
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Year to date, Fair Isaac registers a 31.5% gain. And the worst performing S&P 500 component thus far on the day is Micron Technology, trading down 3.9%. VIDEO: S&P 500 Movers: MU, FICO 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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2584.0
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2023-05-20 00:00:00 UTC
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Federal Judge Orders American Airlines And JetBlue Airways To End Partnership In Northeast
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AAL
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https://www.nasdaq.com/articles/federal-judge-orders-american-airlines-and-jetblue-airways-to-end-partnership-in-northeast
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nan
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nan
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(RTTNews) - A federal judge Friday ordered American Airlines (AAL) and JetBlue Airways (JBLU)to end their partnership in the Northeast, after a judge agreed that the alliance would reduce competition and boost fares for consumers.
Both airlines reportedly expressed disappointment with the decision and said they were considering next steps.
By effectively absorbing JetBlue's operations in Boston and New York City, American can reduce investments not just in those cities, but also in other parts of its network where it otherwise would maintain or add service," the lawsuit read. "As a consequence, consumers across the country will have fewer options and pay higher fares."
"The Justice Department will continue to protect competition and enforce our antitrust laws in the heavily consolidated airline industry and across every industry", said Attorney General Merrick B. Garland.
The Northeast Alliance, operating as it was designed and intended by American and JetBlue, substantially diminishes competition in the domestic market for air travel, US District Judge Leo Sorokin said in a ruling Friday. "It makes the two airlines partners, each having a substantial interest in the success of their joint and individual efforts, instead of vigorous, arms-length rivals regularly challenging each other in the marketplace of competition," Sorokin said. He ordered the airlines to end the partnership 30 days after the ruling.
The lawsuit, filed in September 2021, alleged that the airlines' alliance was effectively a merger that would hurt consumers by driving up fares. The trial began a year later in Boston.
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) - A federal judge Friday ordered American Airlines (AAL) and JetBlue Airways (JBLU)to end their partnership in the Northeast, after a judge agreed that the alliance would reduce competition and boost fares for consumers. The Northeast Alliance, operating as it was designed and intended by American and JetBlue, substantially diminishes competition in the domestic market for air travel, US District Judge Leo Sorokin said in a ruling Friday. "It makes the two airlines partners, each having a substantial interest in the success of their joint and individual efforts, instead of vigorous, arms-length rivals regularly challenging each other in the marketplace of competition," Sorokin said.
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(RTTNews) - A federal judge Friday ordered American Airlines (AAL) and JetBlue Airways (JBLU)to end their partnership in the Northeast, after a judge agreed that the alliance would reduce competition and boost fares for consumers. By effectively absorbing JetBlue's operations in Boston and New York City, American can reduce investments not just in those cities, but also in other parts of its network where it otherwise would maintain or add service," the lawsuit read. The Northeast Alliance, operating as it was designed and intended by American and JetBlue, substantially diminishes competition in the domestic market for air travel, US District Judge Leo Sorokin said in a ruling Friday.
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(RTTNews) - A federal judge Friday ordered American Airlines (AAL) and JetBlue Airways (JBLU)to end their partnership in the Northeast, after a judge agreed that the alliance would reduce competition and boost fares for consumers. By effectively absorbing JetBlue's operations in Boston and New York City, American can reduce investments not just in those cities, but also in other parts of its network where it otherwise would maintain or add service," the lawsuit read. The Northeast Alliance, operating as it was designed and intended by American and JetBlue, substantially diminishes competition in the domestic market for air travel, US District Judge Leo Sorokin said in a ruling Friday.
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(RTTNews) - A federal judge Friday ordered American Airlines (AAL) and JetBlue Airways (JBLU)to end their partnership in the Northeast, after a judge agreed that the alliance would reduce competition and boost fares for consumers. Both airlines reportedly expressed disappointment with the decision and said they were considering next steps. By effectively absorbing JetBlue's operations in Boston and New York City, American can reduce investments not just in those cities, but also in other parts of its network where it otherwise would maintain or add service," the lawsuit read.
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2585.0
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2023-05-19 00:00:00 UTC
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American Airlines pilots to get 21% pay raise this year in tentative contract -sources
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AAL
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https://www.nasdaq.com/articles/american-airlines-pilots-to-get-21-pay-raise-this-year-in-tentative-contract-sources
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nan
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nan
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CHICAGO, May 19 (Reuters) - Pilots at American Airlines AAL.O will get a 21% pay raise this year as part of a new four-year tentative contract, three sources with direct knowledge of the matter said on Friday.
The Allied Pilots Association (APA), which represents American's pilots, on Thursday said it has agreed in principle on a new contract.
(Reporting by Rajesh Kumar Singh and Allison Lampert; Editing by Leslie Adler)
((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, May 19 (Reuters) - Pilots at American Airlines AAL.O will get a 21% pay raise this year as part of a new four-year tentative contract, three sources with direct knowledge of the matter said on Friday. The Allied Pilots Association (APA), which represents American's pilots, on Thursday said it has agreed in principle on a new contract. (Reporting by Rajesh Kumar Singh and Allison Lampert; Editing by Leslie Adler) ((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, May 19 (Reuters) - Pilots at American Airlines AAL.O will get a 21% pay raise this year as part of a new four-year tentative contract, three sources with direct knowledge of the matter said on Friday. The Allied Pilots Association (APA), which represents American's pilots, on Thursday said it has agreed in principle on a new contract. (Reporting by Rajesh Kumar Singh and Allison Lampert; Editing by Leslie Adler) ((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, May 19 (Reuters) - Pilots at American Airlines AAL.O will get a 21% pay raise this year as part of a new four-year tentative contract, three sources with direct knowledge of the matter said on Friday. The Allied Pilots Association (APA), which represents American's pilots, on Thursday said it has agreed in principle on a new contract. (Reporting by Rajesh Kumar Singh and Allison Lampert; Editing by Leslie Adler) ((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, May 19 (Reuters) - Pilots at American Airlines AAL.O will get a 21% pay raise this year as part of a new four-year tentative contract, three sources with direct knowledge of the matter said on Friday. The Allied Pilots Association (APA), which represents American's pilots, on Thursday said it has agreed in principle on a new contract. (Reporting by Rajesh Kumar Singh and Allison Lampert; Editing by Leslie Adler) ((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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2586.0
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2023-05-19 00:00:00 UTC
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US judge says American-JetBlue must end alliance
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AAL
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https://www.nasdaq.com/articles/us-judge-says-american-jetblue-must-end-alliance
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nan
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nan
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By Diane Bartz and David Shepardson
WASHINGTON, May 19 (Reuters) - A U.S. judge ruled on Friday that American Airlines Group AAL.O must end its alliance with JetBlue Airways Corp JBLU.O, agreeing with the U.S. Justice Department that it means higher prices for consumers.
The announcement is a win for the Biden administration that has taken a hard line on consolidation and tie-ups in the aviation industry.
The airlines did not immediately comment. JetBlue shares fell 1.8%, while American closed down 1.5%.
U.S. District Judge Leo Sorokin said the agreement "entangles JetBlue with American in a way that diminishes its status as an independent low-cost player in the market." The judge gave the airlines 30 days to end the alliance.
The department sued in 2021 asking Sorokin to stop the "Northeast Alliance" partnership, announced in July 2020 and approved by the U.S. Transportation Department shortly before the end of the Trump administration. It took aim at American Airlines, saying the alliance would cost consumers hundreds of millions of dollars.
(Reporting by Diane Bartz and David Shepardson; Editing by Bill Berkrot)
((Rami.Ayyub@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 Diane Bartz and David Shepardson WASHINGTON, May 19 (Reuters) - A U.S. judge ruled on Friday that American Airlines Group AAL.O must end its alliance with JetBlue Airways Corp JBLU.O, agreeing with the U.S. Justice Department that it means higher prices for consumers. The announcement is a win for the Biden administration that has taken a hard line on consolidation and tie-ups in the aviation industry. U.S. District Judge Leo Sorokin said the agreement "entangles JetBlue with American in a way that diminishes its status as an independent low-cost player in the market."
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By Diane Bartz and David Shepardson WASHINGTON, May 19 (Reuters) - A U.S. judge ruled on Friday that American Airlines Group AAL.O must end its alliance with JetBlue Airways Corp JBLU.O, agreeing with the U.S. Justice Department that it means higher prices for consumers. It took aim at American Airlines, saying the alliance would cost consumers hundreds of millions of dollars. (Reporting by Diane Bartz and David Shepardson; Editing by Bill Berkrot) ((Rami.Ayyub@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 Diane Bartz and David Shepardson WASHINGTON, May 19 (Reuters) - A U.S. judge ruled on Friday that American Airlines Group AAL.O must end its alliance with JetBlue Airways Corp JBLU.O, agreeing with the U.S. Justice Department that it means higher prices for consumers. The department sued in 2021 asking Sorokin to stop the "Northeast Alliance" partnership, announced in July 2020 and approved by the U.S. Transportation Department shortly before the end of the Trump administration. It took aim at American Airlines, saying the alliance would cost consumers hundreds of millions of dollars.
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By Diane Bartz and David Shepardson WASHINGTON, May 19 (Reuters) - A U.S. judge ruled on Friday that American Airlines Group AAL.O must end its alliance with JetBlue Airways Corp JBLU.O, agreeing with the U.S. Justice Department that it means higher prices for consumers. The announcement is a win for the Biden administration that has taken a hard line on consolidation and tie-ups in the aviation industry. The airlines did not immediately comment.
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2587.0
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2023-05-19 00:00:00 UTC
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American Airlines pilots reach an agreement on new contract
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AAL
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https://www.nasdaq.com/articles/american-airlines-pilots-reach-an-agreement-on-new-contract
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nan
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nan
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By Rajesh Kumar Singh and Allison Lampert
CHICAGO, May 19 (Reuters) - Pilots at American Airlines AAL.O have reached an agreement in principle on a new contract, their union said on Friday.
The Allied Pilots Association (APA), which represents over 13,000 pilots at the Texas-based carrier, said it will move forward with completing contractual language of the contract before presenting it to its board for an approval.
The union did not share the details of the new contract.
But two sources with direct knowledge of the matter said the deal is for a four-year contract that has pay rates comparable to the wages secured by pilots at Delta Air Lines DAL.N.
It also includes improvements on scheduling, a critical issue for pilots who are seeking better work-life balance in a profession that often requires them to be away for days from their families, they said.
The deal comes over two months after Delta's pilots ratified their contract that includes over $7 billion in cumulative increases in pay and benefits over four years.
It underscores the bargaining power pilots are enjoying as airlines rush to boost staff numbers ahead of what is shaping up to be a busy summer travel season.
American, Delta, United Airlines UAL.O and Southwest Airlines LUV.N are estimated to hire about 8,000 pilots this year.
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 soarhttps://tmsnrt.rs/406NcLl
(Reporting by Rajesh Kumar Singh and Allison Lampert Editing by Nick Zieminski and Emelia Sithole-Matarise)
((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 and Allison Lampert CHICAGO, May 19 (Reuters) - Pilots at American Airlines AAL.O have reached an agreement in principle on a new contract, their union said on Friday. But two sources with direct knowledge of the matter said the deal is for a four-year contract that has pay rates comparable to the wages secured by pilots at Delta Air Lines DAL.N. It underscores the bargaining power pilots are enjoying as airlines rush to boost staff numbers ahead of what is shaping up to be a busy summer travel season.
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By Rajesh Kumar Singh and Allison Lampert CHICAGO, May 19 (Reuters) - Pilots at American Airlines AAL.O have reached an agreement in principle on a new contract, their union said on Friday. American, Delta, United Airlines UAL.O and Southwest Airlines LUV.N are estimated to hire about 8,000 pilots this year. 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 soarhttps://tmsnrt.rs/406NcLl (Reporting by Rajesh Kumar Singh and Allison Lampert Editing by Nick Zieminski and Emelia Sithole-Matarise) ((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 and Allison Lampert CHICAGO, May 19 (Reuters) - Pilots at American Airlines AAL.O have reached an agreement in principle on a new contract, their union said on Friday. American, Delta, United Airlines UAL.O and Southwest Airlines LUV.N are estimated to hire about 8,000 pilots this year. 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 soarhttps://tmsnrt.rs/406NcLl (Reporting by Rajesh Kumar Singh and Allison Lampert Editing by Nick Zieminski and Emelia Sithole-Matarise) ((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 and Allison Lampert CHICAGO, May 19 (Reuters) - Pilots at American Airlines AAL.O have reached an agreement in principle on a new contract, their union said on Friday. The Allied Pilots Association (APA), which represents over 13,000 pilots at the Texas-based carrier, said it will move forward with completing contractual language of the contract before presenting it to its board for an approval. The deal comes over two months after Delta's pilots ratified their contract that includes over $7 billion in cumulative increases in pay and benefits over four years.
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2588.0
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2023-05-19 00:00:00 UTC
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American Airlines pilot reach an agreement on new contract
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AAL
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https://www.nasdaq.com/articles/american-airlines-pilot-reach-an-agreement-on-new-contract
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nan
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nan
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CHICAGO, May 19 (Reuters) - Pilots at American Airlines AAL.O have reached an agreement in principle on a new contract, their union said on Friday.
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 soarhttps://tmsnrt.rs/406NcLl
(Reporting by Rajesh Kumar Singh and Allison Lampert 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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CHICAGO, May 19 (Reuters) - Pilots at American Airlines AAL.O have reached an agreement in principle on a new contract, their union said on Friday. 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 soarhttps://tmsnrt.rs/406NcLl (Reporting by Rajesh Kumar Singh and Allison Lampert 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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CHICAGO, May 19 (Reuters) - Pilots at American Airlines AAL.O have reached an agreement in principle on a new contract, their union said on Friday. 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 soarhttps://tmsnrt.rs/406NcLl (Reporting by Rajesh Kumar Singh and Allison Lampert 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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CHICAGO, May 19 (Reuters) - Pilots at American Airlines AAL.O have reached an agreement in principle on a new contract, their union said on Friday. 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 soarhttps://tmsnrt.rs/406NcLl (Reporting by Rajesh Kumar Singh and Allison Lampert 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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CHICAGO, May 19 (Reuters) - Pilots at American Airlines AAL.O have reached an agreement in principle on a new contract, their union said on Friday. 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 soarhttps://tmsnrt.rs/406NcLl (Reporting by Rajesh Kumar Singh and Allison Lampert 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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2589.0
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2023-05-19 00:00:00 UTC
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Gem trader HB Antwerp eyes African diamonds after Botswana pact
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AAL
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https://www.nasdaq.com/articles/gem-trader-hb-antwerp-eyes-african-diamonds-after-botswana-pact
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nan
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nan
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By Felix Njini
May 19 (Reuters) - HB Antwerp, a Belgian gem processing firm and trader, is hunting for more deals in Africa after securing a sales pact with Botswana, the world's No. 1 diamond producer by value.
The firm is looking for potential deals to process rough diamonds in countries including Namibia, South Africa, Lesotho and the Democratic Republic of Congo, said Rafael Papismedov, one of HB Antwerp's co-founders.
It has held initial talks and plans to enter into serious negotiations with countries that are keen to raise their industry governance status to the same level as Botswana's, Papismedov said.
He declined to disclose which governments HB Antwerp has held talks with but said Namibia, South Africa and Lesotho are "very interesting" markets.
"There is initial talks with a lot of governments but currently our focus right now is Botswana," Papismedov said in an interview. "We hope to start engaging in serious discussions in 2024."
Founded in 2020, HB Antwerp's deal with Lucara Diamond Corp LUC.TO, allows it to buy gems of 10 carat quality and above from the Canadian producer's Karowe Mine in Botswana at prices based on the estimated polished outcome of each diamond.
The Botswana government said it is buying a 24% stake in HB Antwerp and as part of the deal state-owned Okavango Diamond Company will supply the gem trader and processing firm with an undisclosed quantity of rough diamonds for five years.
Botswana is currently locked in with De Beers Group to renew a 2011 diamonds sales and marketing agreement which expires in June.
More supplies of rough diamonds could help HB Antwerp boost sales to over $1 billion per annum in three to four years from under $300 million last year, Papismedov said.
"We are a very ambitious company," he said.
HB Antwerp has rapidly expanded its operations and capitalises on selling bigger stones but is "still a relatively new company with a limited track record", diamond analyst Paul Zimnisky said.
Producers from Africa, Canada and Australia also face difficulties competing in the rough-to-polished manufacturing segment against India, he said.
"The Indians have the infrastructure, skill sets and labour costs that are world-leading in terms of diamond manufacturing, this is why over 90% of the world’s diamonds are cut and polished in India," he added. Processing more diamonds in African countries could help shore up government revenues, create jobs and bolster transparency, Papismedov said.
"We believe that all the diamonds of Botswana and all the diamonds of the African nations should be transformed locally."
(Reporting by Felix Njini; editing by Jason Neely)
((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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By Felix Njini May 19 (Reuters) - HB Antwerp, a Belgian gem processing firm and trader, is hunting for more deals in Africa after securing a sales pact with Botswana, the world's No. The firm is looking for potential deals to process rough diamonds in countries including Namibia, South Africa, Lesotho and the Democratic Republic of Congo, said Rafael Papismedov, one of HB Antwerp's co-founders. HB Antwerp has rapidly expanded its operations and capitalises on selling bigger stones but is "still a relatively new company with a limited track record", diamond analyst Paul Zimnisky said.
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By Felix Njini May 19 (Reuters) - HB Antwerp, a Belgian gem processing firm and trader, is hunting for more deals in Africa after securing a sales pact with Botswana, the world's No. The firm is looking for potential deals to process rough diamonds in countries including Namibia, South Africa, Lesotho and the Democratic Republic of Congo, said Rafael Papismedov, one of HB Antwerp's co-founders. He declined to disclose which governments HB Antwerp has held talks with but said Namibia, South Africa and Lesotho are "very interesting" markets.
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The firm is looking for potential deals to process rough diamonds in countries including Namibia, South Africa, Lesotho and the Democratic Republic of Congo, said Rafael Papismedov, one of HB Antwerp's co-founders. Founded in 2020, HB Antwerp's deal with Lucara Diamond Corp LUC.TO, allows it to buy gems of 10 carat quality and above from the Canadian producer's Karowe Mine in Botswana at prices based on the estimated polished outcome of each diamond. The Botswana government said it is buying a 24% stake in HB Antwerp and as part of the deal state-owned Okavango Diamond Company will supply the gem trader and processing firm with an undisclosed quantity of rough diamonds for five years.
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The firm is looking for potential deals to process rough diamonds in countries including Namibia, South Africa, Lesotho and the Democratic Republic of Congo, said Rafael Papismedov, one of HB Antwerp's co-founders. The Botswana government said it is buying a 24% stake in HB Antwerp and as part of the deal state-owned Okavango Diamond Company will supply the gem trader and processing firm with an undisclosed quantity of rough diamonds for five years. Producers from Africa, Canada and Australia also face difficulties competing in the rough-to-polished manufacturing segment against India, he said.
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2590.0
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2023-05-18 00:00:00 UTC
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American Airlines (AAL) Upgraded to Buy: Here's Why
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-upgraded-to-buy%3A-heres-why
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nan
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nan
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American Airlines (AAL) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for American Airlines basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for American Airlines imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate Revisions
Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for American Airlines
This world's largest airline is expected to earn $2.71 per share for the fiscal year ending December 2023, which represents a year-over-year change of 442%.
Analysts have been steadily raising their estimates for American Airlines. Over the past three months, the Zacks Consensus Estimate for the company has increased 15.6%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of American Airlines to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
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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.
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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) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Therefore, the Zacks rating upgrade for American Airlines basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
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American Airlines (AAL) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). 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 power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts.
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American Airlines (AAL) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Most Powerful Force Impacting Stock Prices The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock.
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American Airlines (AAL) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Therefore, the Zacks rating upgrade for American Airlines basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
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2591.0
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2023-05-18 00:00:00 UTC
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Allegiant (ALGT) Shares Rise 30.7% in 6 Months: Here's Why
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AAL
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https://www.nasdaq.com/articles/allegiant-algt-shares-rise-30.7-in-6-months%3A-heres-why
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nan
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nan
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Allegiant Travel Company ALGT is being aided by the upbeat air-travel demand scenario in the United States. Owing to increased passenger volumes, ALGT recently reported buoyant traffic data for April.
In April 2023, revenue passenger miles (a measure of traffic) and available seat miles (a measure of capacity) increased 1% and 2.1%, respectively, from the year-ago levels. Also, scheduled departures increased 1.1% year over year. However, load factor (percentage of seats filled by passengers) decreased 1 point to 84.3% in April 2023, as the traffic increase was less than the capacity expansion.
In April 2023, capacity increased 2.5% from the year-ago month’s reading. Departures (systemwide) improved 1.5% from the April 2022 actuals. The estimated average fuel cost per gallon for April was $2.84 (systemwide).
Apart from the upbeat traffic report, Allegiant, currently carrying a Zacks Rank #2 (Buy), has a strong cash position. Cash and cash equivalents of $317.6 million at the end of first-quarter 2023 was higher than the current debt figure of $289.7 million. This implied that the company had enough cash to meet its debt burden.
ALGT has gained 30.7% in the past six months compared with 0.5% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Other Stocks to Consider
Investors interested in the Airline industry may also consider some other top-ranked stocks.
American Airlines AAL, which currently carries a Zacks Rank #2, is also being aided by the improved air-travel-demand situation. The carrier's debt-reduction efforts are also impressive. Management aims to reduce its debt by $15 billion by 2025 end. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
For the second quarter and 2023, AAL’s earnings are expected to register 65.8% and 440% growth, respectively, on a year-over-year basis.
Alaska Air Group ALK, currently carrying a Zacks Rank #2, also benefits from the improved air-travel-demand situation. On the back of upbeat air-travel demand and favorable pricing, Alaska Air's top line increased 31% year over year in the March quarter. ALK expects to boost its fleet and workforce in 2023 to meet the anticipated high demand.
For the second quarter and 2023, ALK’s earnings are expected to register 12% and 44.8% improvements, respectively, on a year-over-year basis.
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
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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American Airlines AAL, which currently carries a Zacks Rank #2, is also being aided by the improved air-travel-demand situation. For the second quarter and 2023, AAL’s earnings are expected to register 65.8% and 440% growth, respectively, on a year-over-year basis. Click to get this free 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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Click to get this free 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. American Airlines AAL, which currently carries a Zacks Rank #2, is also being aided by the improved air-travel-demand situation. For the second quarter and 2023, AAL’s earnings are expected to register 65.8% and 440% growth, respectively, on a year-over-year basis.
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Click to get this free 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. American Airlines AAL, which currently carries a Zacks Rank #2, is also being aided by the improved air-travel-demand situation. For the second quarter and 2023, AAL’s earnings are expected to register 65.8% and 440% growth, respectively, on a year-over-year basis.
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American Airlines AAL, which currently carries a Zacks Rank #2, is also being aided by the improved air-travel-demand situation. For the second quarter and 2023, AAL’s earnings are expected to register 65.8% and 440% growth, respectively, on a year-over-year basis. Click to get this free 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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2592.0
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2023-05-18 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-7
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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 mid-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
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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 mid-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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2593.0
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2023-05-18 00:00:00 UTC
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Is American Airlines (AAL) Stock Outpacing Its Transportation Peers This Year?
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AAL
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https://www.nasdaq.com/articles/is-american-airlines-aal-stock-outpacing-its-transportation-peers-this-year-1
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nan
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Investors interested in Transportation stocks should always be looking to find the best-performing companies in the group. Is American Airlines (AAL) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
American Airlines is one of 132 companies in the Transportation group. The Transportation group currently sits at #10 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. American Airlines is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for AAL's full-year earnings has moved 15.6% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, AAL has moved about 17.2% on a year-to-date basis. Meanwhile, the Transportation sector has returned an average of 4.8% on a year-to-date basis. This means that American Airlines is performing better than its sector in terms of year-to-date returns.
Another Transportation stock, which has outperformed the sector so far this year, is Alaska Air Group (ALK). The stock has returned 5.4% year-to-date.
For Alaska Air Group, the consensus EPS estimate for the current year has increased 5.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, American Airlines is a member of the Transportation - Airline industry, which includes 29 individual companies and currently sits at #41 in the Zacks Industry Rank. This group has gained an average of 12% so far this year, so AAL is performing better in this area. Alaska Air Group is also part of the same industry.
Going forward, investors interested in Transportation stocks should continue to pay close attention to American Airlines and Alaska Air Group as they could maintain their solid performance.
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
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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Is American Airlines (AAL) one of those stocks right now? The Zacks Consensus Estimate for AAL's full-year earnings has moved 15.6% higher within the past quarter. According to our latest data, AAL has moved about 17.2% on a year-to-date basis.
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Click to get this free 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. Is American Airlines (AAL) one of those stocks right now? The Zacks Consensus Estimate for AAL's full-year earnings has moved 15.6% higher within the past quarter.
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Click to get this free 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. Is American Airlines (AAL) one of those stocks right now? The Zacks Consensus Estimate for AAL's full-year earnings has moved 15.6% higher within the past quarter.
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Is American Airlines (AAL) one of those stocks right now? The Zacks Consensus Estimate for AAL's full-year earnings has moved 15.6% higher within the past quarter. According to our latest data, AAL has moved about 17.2% on a year-to-date basis.
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2594.0
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2023-05-17 00:00:00 UTC
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US expects flights to jump on Memorial Day weekend, near pre-COVID levels
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AAL
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https://www.nasdaq.com/articles/us-expects-flights-to-jump-on-memorial-day-weekend-near-pre-covid-levels
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nan
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By David Shepardson
WASHINGTON, May 17 (Reuters) - U.S. aviation regulators are forecasting nearly 313,000 flights over the seven-day Memorial Day holiday period, up 4.5% from 2022 and just below 2019 pre-pandemic levels.
The Federal Aviation Administration said the traditional seven-day kickoff to the busy U.S. summer travel season will surpass the 299,500 flights flown in the same period in 2022 but will not match the 321,000 flights in the same period in 2019.
On Wednesday, Delta Air Lines DAL.N estimated it will fly 2.8 million passengers for the upcoming Memorial Day holiday period, up 17% from 2022. On Tuesday, United Airlines UAL.O said it was planning for its busiest Memorial Day holiday in more than a decade, forecasting nearly 2.9 million passengers between May 25 and May 30.
American Airlines AAL.O said it will fly 26,637 flights over the Memorial Day period and carry 2.9 million passengers.
Last year, airlines had a rough Memorial Day weekend compounded by bad weather, cancelling more than 2,500 flights over a four-day period.
The FAA in March agreed to requests by Delta and United to temporarily return up to 10% of slots and flight timings this summer at congested New York area airports and Washington National, citing air traffic controller shortages.
Some airlines are operating larger planes to compensate for fewer flights, a move that the FAA said gives airlines "the ability to reduce operations during the peak summer travel period, which are likely to be exacerbated by the effects of Air Traffic Controller staffing shortfalls."
The FAA said its staffing at the New York Terminal Radar Approach Control remain below targets. Last summer, there were 41,498 flights from New York airports where air traffic control staffing was a contributing factor in delays.
Earlier this month, the FAA said it activated 169 more direct routes along the U.S. East Coast ahead of the busy summer travel season, shaving off 40,000 miles and 6,000 minutes of travel time.
(Reporting by David Shepardson; Editing by David Gregorio)
((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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American Airlines AAL.O said it will fly 26,637 flights over the Memorial Day period and carry 2.9 million passengers. By David Shepardson WASHINGTON, May 17 (Reuters) - U.S. aviation regulators are forecasting nearly 313,000 flights over the seven-day Memorial Day holiday period, up 4.5% from 2022 and just below 2019 pre-pandemic levels. Last year, airlines had a rough Memorial Day weekend compounded by bad weather, cancelling more than 2,500 flights over a four-day period.
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American Airlines AAL.O said it will fly 26,637 flights over the Memorial Day period and carry 2.9 million passengers. By David Shepardson WASHINGTON, May 17 (Reuters) - U.S. aviation regulators are forecasting nearly 313,000 flights over the seven-day Memorial Day holiday period, up 4.5% from 2022 and just below 2019 pre-pandemic levels. On Wednesday, Delta Air Lines DAL.N estimated it will fly 2.8 million passengers for the upcoming Memorial Day holiday period, up 17% from 2022.
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American Airlines AAL.O said it will fly 26,637 flights over the Memorial Day period and carry 2.9 million passengers. The Federal Aviation Administration said the traditional seven-day kickoff to the busy U.S. summer travel season will surpass the 299,500 flights flown in the same period in 2022 but will not match the 321,000 flights in the same period in 2019. The FAA in March agreed to requests by Delta and United to temporarily return up to 10% of slots and flight timings this summer at congested New York area airports and Washington National, citing air traffic controller shortages.
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American Airlines AAL.O said it will fly 26,637 flights over the Memorial Day period and carry 2.9 million passengers. By David Shepardson WASHINGTON, May 17 (Reuters) - U.S. aviation regulators are forecasting nearly 313,000 flights over the seven-day Memorial Day holiday period, up 4.5% from 2022 and just below 2019 pre-pandemic levels. Last summer, there were 41,498 flights from New York airports where air traffic control staffing was a contributing factor in delays.
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2595.0
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2023-05-17 00:00:00 UTC
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UAL, DAL, AAL: Which Airline Stock is Wall Street’s Best Pick?
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AAL
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https://www.nasdaq.com/articles/ual-dal-aal%3A-which-airline-stock-is-wall-streets-best-pick
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nan
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The recent Consumer Price Index reading revealed a 2.6% drop in airline fares in April compared to March and 0.9% lower than the prior-year quarter. However, prices might rise again, given that major airlines expect travel demand to remain solid. Keeping an uncertain business backdrop in mind, we used TipRanks’ Stock Comparison Tool to pit United Airlines (NASDAQ:UAL), Delta Air Lines (NYSE:DAL), and American Airlines (NASDAQ:AAL) against each other to pick the most attractive airline stock.
United Airlines (NASDAQ:UAL)
United Airlines reported a lower-than-anticipated loss in Q1, with revenue in line with expectations. Despite a dip in business travel in the quarter, the carrier maintained its full-year guidance. United is optimistic about the remaining quarters of the year, backed by solid travel demand. It highlighted robust demand, especially internationally, where the carrier said it is growing at twice the domestic rate.
United continues to strengthen its balance sheet and has reduced its adjusted total debt by about $4.6 billion over the last 12 months.
Is UAL a Good Stock to Buy?
Last week, JPMorgan analyst Jamie Baker lowered his price target for United Airlines stock to $70 from $81 due to increased risk of recession, but maintained a Buy rating. Baker believes that the long-term relationship between the airline discounters and the Big three (United, Delta, and American Airlines) has inverted, given the revenue momentum and margins of the larger players. Accordingly, the analyst downgraded his ratings for Frontier (ULCC) and Southwest (LUV) to a Hold from Buy.
Baker opined that the idea of cost advantages making low-fare airlines immune to intense competition is wrong. Further, he thinks that the business model in the sector requires an abundance of capital, aircraft, and pilots, with these three catalysts skewed against discounters.
Overall, Wall Street is cautiously optimistic on United Airlines, with a Moderate Buy consensus rating based on nine Buys, five Holds, and one Sell. The average price target of $61.07 suggests an upside of 34.7%. Shares have risen about 20% so far in 2023.
Delta Air Lines (NYSE:DAL)
Delta Air Lines missed Wall Street’s first-quarter expectations. However, investors cheered the company’s Q2 outlook, with the airline projecting revenue growth of 15% to 17%, operating margin of 14% to 16%, and EPS of $2.00 to $2.25, based on “record” advance bookings for the summer.
Delta reaffirmed its full-year 2023 guidance. It expects EPS of $5 to $6 and over $2 billion in free cash flow this year. Also, Delta remains confident about delivering its target of EPS of over $7 and free cash flow of more than $4 billion in 2024.
What is the Target Price for Delta Stock?
Last month, Deutsche Bank analyst Michael Linenberg said that he sees a significant upside in Delta Air Lines stock and pointed out the company’s solid Q2 guidance. The analyst thinks that management has taken the right steps to outperform airline peers.
"We endorse management's focus on margins, earnings, and cash generation which, in our view, are the surest path to value creation,” said Linenberg. The analyst believes that such focus is particularly important when the airline industry is in a “fragile state” due to various headwinds, including staffing issues and supply chain problems.
Linenberg also noted that Delta has made considerable progress over the past couple of years due to its various initiatives, including hiring and training staff, investing in its fleet, and upgrading technology. Linenberg maintained a Buy rating on Delta with a price target of $47.
Wall Street’s Strong Buy consensus rating on Delta is based on 10 unanimous Buys. The average price target of $51.80 implies about 53.2% upside. Shares have risen 3% since the start of this year.
American Airlines (NASDAQ:AAL)
Continued strength in the demand backdrop fueled a 37% rise in American Airlines’ Q1 revenue. The carrier swung to a profit, with adjusted EPS of $0.05 surpassing analysts’ consensus estimate of $0.04. It generated free cash flow of $3 billion and reduced its debt by over $850 million in Q1. Overall, American has reduced its debt by more than $9 billion from the peak levels seen in Q2 2021.
Like its larger peers, American also maintained its full-year outlook and expects adjusted EPS in the range of $2.50 to $3.50.
Is AAL a Buy, Hold, or Sell?
As previously discussed, JPMorgan’s Baker is bullish on the big three airlines. In particular, he upgraded American Airlines stock to a Buy from Hold as part of his airline sector reshuffling to favor carriers with more international exposure and raised his price target to $29 from $26.
Baker praised management’s commitment to reduce debt and noted that the airline has now progressed 60% toward its goal of reducing its debt by $15 billion by the end of 2025. The analyst also finds the stock’s valuation attractive at current levels. He increased his 2024 EPS estimate to $3 from $2.50, citing better revenue expectations.
Nonetheless, Baker continues to see AAL’s margins trailing those of United and Delta. Also, the stock’s risk profile remains higher, as incremental interest burden continues to be a concern “when, not if, the market environment deteriorates.”
Wall Street is sidelined on American Airlines, with a Hold consensus rating based on two Buys, six Holds, and two Sells. The average price target of $18.09 implies 27.4% upside. Shares have advanced nearly 12% year-to-date.
Conclusion
Wall Street is more bullish on Delta Air Lines compared to United and American. Analysts see higher upside in Delta than the other two airlines.
Aside from analysts, hedge funds are also bullish on Delta and have a Very Positive confidence signal, as per TipRanks’ Hedge Fund Trading Activity Tool. Hedge funds increased their DAL holdings by 3.7 million shares last quarter. Further, according to TipRanks’ Smart Score System, DAL earns a score of nine out of 10, which implies it could outperform the broader market over the long term.
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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Keeping an uncertain business backdrop in mind, we used TipRanks’ Stock Comparison Tool to pit United Airlines (NASDAQ:UAL), Delta Air Lines (NYSE:DAL), and American Airlines (NASDAQ:AAL) against each other to pick the most attractive airline stock. American Airlines (NASDAQ:AAL) Continued strength in the demand backdrop fueled a 37% rise in American Airlines’ Q1 revenue. Is AAL a Buy, Hold, or Sell?
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Keeping an uncertain business backdrop in mind, we used TipRanks’ Stock Comparison Tool to pit United Airlines (NASDAQ:UAL), Delta Air Lines (NYSE:DAL), and American Airlines (NASDAQ:AAL) against each other to pick the most attractive airline stock. American Airlines (NASDAQ:AAL) Continued strength in the demand backdrop fueled a 37% rise in American Airlines’ Q1 revenue. Is AAL a Buy, Hold, or Sell?
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Keeping an uncertain business backdrop in mind, we used TipRanks’ Stock Comparison Tool to pit United Airlines (NASDAQ:UAL), Delta Air Lines (NYSE:DAL), and American Airlines (NASDAQ:AAL) against each other to pick the most attractive airline stock. American Airlines (NASDAQ:AAL) Continued strength in the demand backdrop fueled a 37% rise in American Airlines’ Q1 revenue. Is AAL a Buy, Hold, or Sell?
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Keeping an uncertain business backdrop in mind, we used TipRanks’ Stock Comparison Tool to pit United Airlines (NASDAQ:UAL), Delta Air Lines (NYSE:DAL), and American Airlines (NASDAQ:AAL) against each other to pick the most attractive airline stock. American Airlines (NASDAQ:AAL) Continued strength in the demand backdrop fueled a 37% rise in American Airlines’ Q1 revenue. Is AAL a Buy, Hold, or Sell?
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2596.0
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2023-05-12 00:00:00 UTC
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Here's Why Investors May Bet on American Airlines (AAL) Stock
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AAL
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https://www.nasdaq.com/articles/heres-why-investors-may-bet-on-american-airlines-aal-stock
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nan
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nan
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American Airlines AAL is gaining from an uptick in air-travel demand (particularly on the leisure front). The upsurge in passenger volumes makes the AAL stock an interesting investment opportunity.
Let’s delve deeper to unearth the factors working in favor of the Zacks Rank #2 (Buy) stock.
Northward Earnings Estimates: The Zacks Consensus Estimate for current-quarter and current-year earnings has been revised 45.4% and 29.4% upward, over the past 60 days, respectively. Such favorable estimate revisions reflect brokers’ confidence in the stock.
Given the wealth of information at the brokers’ disposal, it is in the best interest of investors to be guided by their expert advice and the direction of their estimate revisions. This is because it serves as a key indicator in determining the price of a stock.
Upbeat Air-travel Demand: American Airlines is seeing steady recovery in domestic and international air-travel demand.
Owing to upbeat air-travel demand, operating revenues in first-quarter 2023 increased 37% year over year. Passenger revenues, accounting for the bulk of the top line (91.1%), increased to $11,103 million from $7,818 million a year ago. To match the high demand, AAL is increasing capacity.
AAL expects system capacity for the June-end quarter to increase 3.5-5.5% from the second-quarter 2022 reported level. Management projects second-quarter 2023 earnings per share (excluding net special items) between $1.20 and $1.40. AAL estimates 2023 adjusted earnings per share of $2.50-$3.50.
Impressive Price Performance: Driven by the rosy air-travel demand scenario, shares of AAL have gained10.6% year to date compared with its industry’s appreciation of 6.1% in the same timeframe.
Image Source: Zacks Investment Research
Bullish Industry Rank: The industry, to which AAL belongs, currently has a Zacks Industry Rank of 37 (of 250 plus groups). Such a solid rank places the company at the top 15% of the Zacks industries. Studies show that 50% of a stock price movement is directly tied to the performance of the industry group that it hails from.
An ordinary stock in a strong group is likely to outperform a robust stock in a weak industry. Therefore, taking the industry’s performance into consideration becomes imperative.
Other Stocks to Consider
Investors interested in the Zacks Airline industry may also consider stocks like Copa Holdings CPA and United Airlines UAL, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings is benefiting from an improvement in air-travel demand. In first-quarter 2023, passenger revenues increased 28.5% from first-quarter 2019 levels due to higher yields.
CPA’s focus on its cargo segment is encouraging. In first-quarter 2023, cargo and mail revenues grew 51.8% from the comparable quarter of 2019 on higher cargo volumes and yields. Copa Holdings' fleet modernization and cost-management efforts are commendable. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 6.15% upward over the past 60 days.
United Airlines is seeing steady recovery in domestic and international air-travel demand. Owing to robust air-travel demand, UAL expects revenues for the June-end quarter to grow 14-16% year over year.
For 2023, United Airlines expects capacity to be in the high teens. The Zacks Consensus Estimate for current-year earnings has been revised 9% upward in the past 60 days.
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
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
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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Impressive Price Performance: Driven by the rosy air-travel demand scenario, shares of AAL have gained10.6% year to date compared with its industry’s appreciation of 6.1% in the same timeframe. American Airlines AAL is gaining from an uptick in air-travel demand (particularly on the leisure front). The upsurge in passenger volumes makes the AAL stock an interesting investment opportunity.
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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 To read this article on Zacks.com click here. American Airlines AAL is gaining from an uptick in air-travel demand (particularly on the leisure front). The upsurge in passenger volumes makes the AAL stock an interesting investment opportunity.
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Image Source: Zacks Investment Research Bullish Industry Rank: The industry, to which AAL belongs, currently has a Zacks Industry Rank of 37 (of 250 plus groups). 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 To read this article on Zacks.com click here. American Airlines AAL is gaining from an uptick in air-travel demand (particularly on the leisure front).
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Image Source: Zacks Investment Research Bullish Industry Rank: The industry, to which AAL belongs, currently has a Zacks Industry Rank of 37 (of 250 plus groups). American Airlines AAL is gaining from an uptick in air-travel demand (particularly on the leisure front). The upsurge in passenger volumes makes the AAL stock an interesting investment opportunity.
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2597.0
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2023-05-12 00:00:00 UTC
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Here's Why Investors Should Retain SkyWest (SKYW) Stock Now
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AAL
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https://www.nasdaq.com/articles/heres-why-investors-should-retain-skywest-skyw-stock-now-0
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nan
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nan
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SkyWest, Inc. SKYW is gaining from increasing air-travel demand and fleet-modernization efforts. However, low liquidity is a headwind.
Factors Favoring SKYW
With improvement in air-travel demand, SkyWest carried 9.4% more passengers in 2022 than the year-ago level. As a result, passenger load factor (percentage of seats filled by passengers) expanded 8.8 percentage points to 83.4% in 2022. With air-travel demand continuing to improve, load factor was above 80% in first-quarter 2023. We expect load factor to be 83.1% in second-quarter 2023.
SkyWest's fleet-modernization efforts are commendable as well. In a bid to update its fleet, SkyWest entered into an agreement with Delta to purchase and operate 16 new E175 aircraft in August. Seven planes were delivered in third-quarter 2022. Four were delivered in fourth-quarter 2022.
Management expects two of the remaining four E175s to be delivered in the fourth quarter of 2023, one in 2024 and the last E175 in 2025. This will increase the E175 fleet size at SKYW to 240 by 2025-end.
Key Risk
SkyWest's current ratio at the end of first-quarter 2023 was 1.09, lower than 1.17 at 2022 end. Such a low current ratio does not bode well as it implies that the company may have problems in meeting its short-term debt obligations.
Zacks Rank & Key Picks
SkyWest currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Transportation sector are American Airlines AAL and Copa Holdings, S.A. CPA.
American Airlines, which currently carries a Zacks Rank #2 (Buy), is benefiting from the improved air-travel-demand situation.
For second-quarter and full-year 2023, AAL’s earnings are expected to register 68.4% and 454% growth, respectively, on a year-over-year basis.
Copa Holdings sports a Zacks Rank #1 (Strong Buy) at present. We are encouraged by CPA's focus on its cargo segment. You can see the complete list of today’s Zacks #1 Rank stocks here.
For second-quarter and full-year 2023, CPA’s earnings are expected to register 418.8% and 48.4% improvements, respectively, on a year-over-year basis.
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Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
SkyWest, Inc. (SKYW) : 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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Some better-ranked stocks in the Zacks Transportation sector are American Airlines AAL and Copa Holdings, S.A. CPA. For second-quarter and full-year 2023, AAL’s earnings are expected to register 68.4% and 454% growth, respectively, on a year-over-year basis. Click to get this free report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report SkyWest, Inc. (SKYW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report SkyWest, Inc. (SKYW) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the Zacks Transportation sector are American Airlines AAL and Copa Holdings, S.A. CPA. For second-quarter and full-year 2023, AAL’s earnings are expected to register 68.4% and 454% growth, respectively, on a year-over-year basis.
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Click to get this free report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report SkyWest, Inc. (SKYW) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the Zacks Transportation sector are American Airlines AAL and Copa Holdings, S.A. CPA. For second-quarter and full-year 2023, AAL’s earnings are expected to register 68.4% and 454% growth, respectively, on a year-over-year basis.
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Some better-ranked stocks in the Zacks Transportation sector are American Airlines AAL and Copa Holdings, S.A. CPA. For second-quarter and full-year 2023, AAL’s earnings are expected to register 68.4% and 454% growth, respectively, on a year-over-year basis. Click to get this free report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report SkyWest, Inc. (SKYW) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2598.0
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2023-05-11 00:00:00 UTC
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Earnings Estimates Moving Higher for American Airlines (AAL): Time to Buy?
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AAL
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https://www.nasdaq.com/articles/earnings-estimates-moving-higher-for-american-airlines-aal%3A-time-to-buy
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nan
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nan
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American Airlines (AAL) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company.
The upward trend in estimate revisions for this world's largest airline reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For American Airlines, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
Current-Quarter Estimate Revisions
The company is expected to earn $1.28 per share for the current quarter, which represents a year-over-year change of +68.42%.
Over the last 30 days, five estimates have moved higher for American Airlines while one has gone lower. As a result, the Zacks Consensus Estimate has increased 26.43%.
Current-Year Estimate Revisions
The company is expected to earn $2.77 per share for the full year, which represents a change of +454% from the prior-year number.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, seven estimates have moved up for American Airlines versus one negative revision. This has pushed the consensus estimate 14.27% higher.
Favorable Zacks Rank
Thanks to promising estimate revisions, American Airlines currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
American Airlines shares have added 10.3% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.
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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) could be a solid choice for investors given the company's remarkably improving earnings outlook. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Current-Year Estimate Revisions The company is expected to earn $2.77 per share for the full year, which represents a change of +454% from the prior-year number.
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American Airlines (AAL) could be a solid choice for investors given the company's remarkably improving earnings outlook. 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 American Airlines, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
|
American Airlines (AAL) could be a solid choice for investors given the company's remarkably improving earnings outlook. 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 five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
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American Airlines (AAL) could be a solid choice for investors given the company's remarkably improving earnings outlook. 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 upward trend in estimate revisions for this world's largest airline reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price.
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2599.0
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2023-05-11 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-6
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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 mid-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
Factor-Based Stock Portfolios
Factor-Based ETF Portfolios
Harry Browne Permanent Portfolio
Ray Dalio All Weather Portfolio
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 mid-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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