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2700.0
|
2023-04-13 00:00:00 UTC
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Susquehanna Maintains American Airlines Group (AAL) Neutral Recommendation
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AAL
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https://www.nasdaq.com/articles/susquehanna-maintains-american-airlines-group-aal-neutral-recommendation
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nan
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nan
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Fintel reports that on April 13, 2023, Susquehanna maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation.
Analyst Price Forecast Suggests 32.93% Upside
As of April 6, 2023, the average one-year price target for American Airlines Group is $17.28. The forecasts range from a low of $8.08 to a high of $27.30. The average price target represents an increase of 32.93% from its latest reported closing price of $13.00.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Airlines Group is $51,177MM, an increase of 4.50%. The projected annual non-GAAP EPS is $1.52.
What are Other Shareholders Doing?
Fmr holds 326K shares representing 0.05% ownership of the company. In it's prior filing, the firm reported owning 334K shares, representing a decrease of 2.67%. The firm decreased its portfolio allocation in AAL by 99.90% over the last quarter.
Rise Advisors holds 0K shares representing 0.00% ownership of the company.
VDNI - V-Shares US Diversity ETF holds 0K shares representing 0.00% ownership of the company. No change in the last quarter.
VMVIX - Vanguard Mid-Cap Value Index Fund Investor Shares holds 2,882K shares representing 0.44% ownership of the company. In it's prior filing, the firm reported owning 2,853K shares, representing an increase of 1.01%. The firm decreased its portfolio allocation in AAL by 5.20% over the last quarter.
Cipher Capital holds 46K shares representing 0.01% ownership of the company. In it's prior filing, the firm reported owning 0K shares, representing an increase of 100.00%.
What is the Fund Sentiment?
There are 1010 funds or institutions reporting positions in American Airlines Group. This is an increase of 17 owner(s) or 1.71% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 4.62%. Total shares owned by institutions decreased in the last three months by 3.31% to 396,483K shares.
The put/call ratio of AAL is 2.66, indicating a bearish outlook.
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.
See all American Airlines Group regulatory filings.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
Fintel reports that on April 13, 2023, Susquehanna maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. The firm decreased its portfolio allocation in AAL by 99.90% over the last quarter. The firm decreased its portfolio allocation in AAL by 5.20% over the last quarter.
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Fintel reports that on April 13, 2023, Susquehanna maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. The firm decreased its portfolio allocation in AAL by 99.90% over the last quarter. The firm decreased its portfolio allocation in AAL by 5.20% over the last quarter.
|
Fintel reports that on April 13, 2023, Susquehanna maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. The firm decreased its portfolio allocation in AAL by 99.90% over the last quarter. The firm decreased its portfolio allocation in AAL by 5.20% over the last quarter.
|
Fintel reports that on April 13, 2023, Susquehanna maintained coverage of American Airlines Group (NASDAQ:AAL) with a Neutral recommendation. The firm decreased its portfolio allocation in AAL by 99.90% over the last quarter. The firm decreased its portfolio allocation in AAL by 5.20% over the last quarter.
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2701.0
|
2023-04-13 00:00:00 UTC
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Unusual Put Option Trade in American Airlines Group (AAL) Worth $183.26K
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AAL
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https://www.nasdaq.com/articles/unusual-put-option-trade-in-american-airlines-group-aal-worth-%24183.26k
|
nan
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nan
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On April 13, 2023 at 09:55:28 ET an unusually large $183.26K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $13.00 / share, expiring in 218 day(s) (on November 17, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.27 sigmas above the mean, placing it in the 86.13th percentile of all recent large trades made in AAL options.
This trade was first picked up on Fintel's real time Unusual Option Trades tool, where unusual option trades are highlighted.
What is the Fund Sentiment?
There are 1010 funds or institutions reporting positions in American Airlines Group. This is an increase of 17 owner(s) or 1.71% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 4.62%. Total shares owned by institutions decreased in the last three months by 3.31% to 396,483K shares.
The put/call ratio of AAL is 2.66, indicating a bearish outlook.
Analyst Price Forecast Suggests 32.93% Upside
As of April 6, 2023, the average one-year price target for American Airlines Group is $17.28. The forecasts range from a low of $8.08 to a high of $27.30. The average price target represents an increase of 32.93% from its latest reported closing price of $13.00.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Airlines Group is $51,177MM, an increase of 4.50%. The projected annual non-GAAP EPS is $1.52.
What are Other Shareholders Doing?
VARIABLE INSURANCE PRODUCTS FUND II - Extended Market Index Portfolio Initial Class holds 21K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 21K shares, representing an increase of 0.52%. The firm decreased its portfolio allocation in AAL by 1.17% over the last quarter.
Profunds - Profund Vp Bull holds 1K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 1K shares, representing a decrease of 53.33%. The firm decreased its portfolio allocation in AAL by 4.80% over the last quarter.
Cohen Lawrence B holds 33K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 0K shares, representing an increase of 100.00%.
MML Series Investment Fund II - MML Equity Rotation Fund Class II holds 5K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 0K shares, representing an increase of 100.00%.
Nisa Investment Advisors holds 60K shares representing 0.01% ownership of the company. In it's prior filing, the firm reported owning 73K shares, representing a decrease of 21.58%. The firm decreased its portfolio allocation in AAL by 99.92% 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.
See all American Airlines Group regulatory filings.
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.
|
On April 13, 2023 at 09:55:28 ET an unusually large $183.26K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $13.00 / share, expiring in 218 day(s) (on November 17, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.27 sigmas above the mean, placing it in the 86.13th percentile of all recent large trades made in AAL options. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 4.62%.
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On April 13, 2023 at 09:55:28 ET an unusually large $183.26K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $13.00 / share, expiring in 218 day(s) (on November 17, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.27 sigmas above the mean, placing it in the 86.13th percentile of all recent large trades made in AAL options. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 4.62%.
|
On April 13, 2023 at 09:55:28 ET an unusually large $183.26K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $13.00 / share, expiring in 218 day(s) (on November 17, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.27 sigmas above the mean, placing it in the 86.13th percentile of all recent large trades made in AAL options. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 4.62%.
|
On April 13, 2023 at 09:55:28 ET an unusually large $183.26K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $13.00 / share, expiring in 218 day(s) (on November 17, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.27 sigmas above the mean, placing it in the 86.13th percentile of all recent large trades made in AAL options. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 4.62%.
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2702.0
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2023-04-13 00:00:00 UTC
|
Unusual Put Option Trade in American Airlines Group (AAL) Worth $183.26K
|
AAL
|
https://www.nasdaq.com/articles/unusual-put-option-trade-in-american-airlines-group-aal-worth-%24183.26k-0
|
nan
|
nan
|
On April 13, 2023 at 09:55:28 ET an unusually large $183.26K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $13.00 / share, expiring in 218 day(s) (on November 17, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.27 sigmas above the mean, placing it in the 86.13th percentile of all recent large trades made in AAL options.
This trade was first picked up on Fintel's real time Unusual Option Trades tool, where unusual option trades are highlighted.
What is the Fund Sentiment?
There are 1010 funds or institutions reporting positions in American Airlines Group. This is an increase of 17 owner(s) or 1.71% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 4.62%. Total shares owned by institutions decreased in the last three months by 3.31% to 396,483K shares.
The put/call ratio of AAL is 2.66, indicating a bearish outlook.
Analyst Price Forecast Suggests 32.93% Upside
As of April 6, 2023, the average one-year price target for American Airlines Group is $17.28. The forecasts range from a low of $8.08 to a high of $27.30. The average price target represents an increase of 32.93% from its latest reported closing price of $13.00.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Airlines Group is $51,177MM, an increase of 4.50%. The projected annual non-GAAP EPS is $1.52.
What are Other Shareholders Doing?
VARIABLE INSURANCE PRODUCTS FUND II - Extended Market Index Portfolio Initial Class holds 21K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 21K shares, representing an increase of 0.52%. The firm decreased its portfolio allocation in AAL by 1.17% over the last quarter.
Profunds - Profund Vp Bull holds 1K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 1K shares, representing a decrease of 53.33%. The firm decreased its portfolio allocation in AAL by 4.80% over the last quarter.
Cohen Lawrence B holds 33K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 0K shares, representing an increase of 100.00%.
MML Series Investment Fund II - MML Equity Rotation Fund Class II holds 5K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 0K shares, representing an increase of 100.00%.
Nisa Investment Advisors holds 60K shares representing 0.01% ownership of the company. In it's prior filing, the firm reported owning 73K shares, representing a decrease of 21.58%. The firm decreased its portfolio allocation in AAL by 99.92% 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.
See all American Airlines Group regulatory filings.
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.
|
On April 13, 2023 at 09:55:28 ET an unusually large $183.26K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $13.00 / share, expiring in 218 day(s) (on November 17, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.27 sigmas above the mean, placing it in the 86.13th percentile of all recent large trades made in AAL options. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 4.62%.
|
On April 13, 2023 at 09:55:28 ET an unusually large $183.26K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $13.00 / share, expiring in 218 day(s) (on November 17, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.27 sigmas above the mean, placing it in the 86.13th percentile of all recent large trades made in AAL options. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 4.62%.
|
On April 13, 2023 at 09:55:28 ET an unusually large $183.26K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $13.00 / share, expiring in 218 day(s) (on November 17, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.27 sigmas above the mean, placing it in the 86.13th percentile of all recent large trades made in AAL options. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 4.62%.
|
On April 13, 2023 at 09:55:28 ET an unusually large $183.26K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $13.00 / share, expiring in 218 day(s) (on November 17, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.27 sigmas above the mean, placing it in the 86.13th percentile of all recent large trades made in AAL options. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 4.62%.
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2703.0
|
2023-04-13 00:00:00 UTC
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Delta (DAL) Q1 Earnings Miss Estimates, Posts Upbeat Q2 View
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AAL
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https://www.nasdaq.com/articles/delta-dal-q1-earnings-miss-estimates-posts-upbeat-q2-view
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nan
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nan
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Delta Air Lines’ DAL first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel price and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
Revenues of $12,759 million missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
Passenger revenues, accounting for 81.6% of total revenues, increased 51% year over year to $10,411 million. Domestic markets contributed 72.9% to the total passenger revenues. Domestic passenger revenues in the March quarter increased 37% year over year. Passenger revenues also improved on the international front.
Cargo revenues declined 28% year over year. Other revenues decreased to $2,139 million from $2,152 million a year ago. Adjusted operating revenues (excluding third-party refinery sales) came in at $11,842 million, up 45% year over year.
Despite the earnings and revenue miss, shares of Delta gained in the pre-market trading. It seems that investors were impressed by the upbeat outlook provided by management for second-quarter 2023. Backed by strong booking trends for summer, the company expects June-quarter revenues (adjusted) to increase in the 15-17% band from second-quarter 2022 actuals.
Second-quarter earnings are expected in the range of $2-$2.25 per share. The Zacks Consensus Estimate for earnings is currently pegged at $1.38. Adjusted operating margin in the June quarter is expected in the 14-16% range.
Delta, currently carrying a Zacks Rank #3 (Hold), still expects earnings per share for full-year 2023 in the $5-$6 band. The mid-point of the guided range or $5.50 per share is above the Zacks Consensus Estimate of $5.20.
Other Aspects of the Q1 Earnings Report
Adjusted operating margin was 4.6%. The company had suffered an operating loss of 9.7% on an adjusted basis a year ago.
Below we present all figures (in % terms) compared with the first-quarter 2022 results.
Revenue passenger miles (a measure of air traffic) increased 28% to 49,687 million. Capacity (measured in available seat miles) expanded 18% to 61,351 million. Load factor (percentage of seats filled by passengers) was up to 81% from 75%.
Passenger revenue per available seat mile increased 27% to 16.97 cents. Passenger mile yield increased to 20.95 cents from 17.85 cents. On an adjusted basis, total revenue per available seat mile increased 23% to 19.30 cents in the March quarter.
Total operating expenses, including special items, escalated 29% to $13,036 million. Aircraft fuel expenses and related taxes surged 28% to $2,676 million in the reported quarter.
Fuel gallons consumed increased 18% to $888 million. Average fuel price per gallon (adjusted) increased 10% to $3.06. Non-fuel unit cost (adjusted or CASM-Ex) increased 5% to 13.86 cents in the reported quarter. The airline had liquidity worth $9.5 billion at the end of the March quarter (including $2.9 billion under undrawn revolving credit facilities). Delta had an adjusted debt of $21 billion.
Per Dan Janki, Delta’s chief financial officer, "Record March quarter free cash flow of $1.9 billion enabled $1.2 billion of debt repayment and positions us to complete our full year planned debt reduction in the first half of the year.”
Remaining aspects of outlook
For second-quarter 2023, the carrier expects capacity to increase 17% from second-quarter 2022 actuals. Fuel price per gallon is expected in the $2.55-$2.80 range. Non-fuel unit cost (adjusted) for the June quarter is expected to increase 1-3% year over year.
Management projects total revenues (adjusted) to increase in the 15-20% range on a year-over-year basis. Operating margin is expected in the 10-12% range. Free cash flow of more than $2 billion is anticipated.
Key Picks
Some better-ranked stocks in the Zacks Airline industry are American Airlines AAL and Copa Holdings CPA , both currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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 affecting the bottom line.
Over the past 60 days, the Zacks Consensus Estimate for AAL’s 2023 earnings has been revised 18.1% upward. The stock has outpaced the Zacks Consensus Estimate for earnings in three of the last four quarters (missed once). The average beat is 7.79%.
Copa Holdings is benefiting from the improvement in air-travel demand. In fourth-quarter 2022, passenger revenues increased 29.5% due to higher yields.
CPA’s focus on its cargo segment is encouraging. In fourth-quarter 2022, cargo and mail revenues grew 69%, owing to higher cargo volumes and yields. Copa Holdings' fleet modernization and cost-management efforts are also commendable.
The above-mentioned tailwinds are likely to continue aiding this Latin American carrier. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 10% upward over the past 60 days.
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
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.
|
Key Picks Some better-ranked stocks in the Zacks Airline industry are American Airlines AAL and Copa Holdings CPA , both currently sporting a Zacks Rank #1 (Strong Buy). 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 18.1% upward.
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Click to get this free report Delta Air Lines, Inc. (DAL) : 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. Key Picks Some better-ranked stocks in the Zacks Airline industry are American Airlines AAL and Copa Holdings CPA , both currently sporting a Zacks Rank #1 (Strong Buy). The gradual increase in air-travel demand (particularly for leisure) is aiding AAL.
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Click to get this free report Delta Air Lines, Inc. (DAL) : 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. Key Picks Some better-ranked stocks in the Zacks Airline industry are American Airlines AAL and Copa Holdings CPA , both currently sporting a Zacks Rank #1 (Strong Buy). The gradual increase in air-travel demand (particularly for leisure) is aiding AAL.
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Key Picks Some better-ranked stocks in the Zacks Airline industry are American Airlines AAL and Copa Holdings CPA , both currently sporting a Zacks Rank #1 (Strong Buy). 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 18.1% upward.
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2704.0
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2023-04-13 00:00:00 UTC
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South Africa targets $111 bln investment goal in tough investor climate
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AAL
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https://www.nasdaq.com/articles/south-africa-targets-%24111-bln-investment-goal-in-tough-investor-climate-0
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nan
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nan
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By Kopano Gumbi and Tannur Anders
JOHANNESBURG, April 13 (Reuters) - South Africa needs to urgently fix energy, transport and security challenges if it is to reverse souring investor sentiment, executives said on Thursday as President Cyril Ramaphosa targets 2 trillion rand ($111 billion) in new investments over the next five years.
Executives were speaking at the South African Investment Conference in Johannesburg, launched by Ramaphosa in 2018 as a way to boost economic activity that had been in decline for over a decade in Africa's most advanced but struggling economy.
Mismanagement and corruption at state-owned companies, including power utility Eskom and freight logistics group Transnet, have had a knock-on effect on ports and road transport, hitting efficiency and dampening investor appetite.
"We are confronted with the consequences of years of underinvestment, mismanagement and corruption in the electricity and rail sectors," Ramaphosa told attendees, promising to work
with the private sector to remove investment stumbling blocks.
"As I announced in the State of the Nation address in February, we are now setting a new target to mobilise approximately 2 trillion rand in new investments over another five-year period,” the president said.
Emrie Brown, chief executive of financial services holding company Rand Merchant Bank, told attendees the firm's clients were concerned about the rising cost of production as a result of challenges in the country.
"The way we see it for the future of South Africa, international investment is so important and these challenges make it difficult for us to position the potential of South Africa as an attractive investment destination while there is uncertainty on when reforms will be implemented," Brown said.
Anglo American AAL.L CEO Duncan Wanblad said: "There are a few quick wins that we need to achieve to be able to change and turn that negative investor sentiment around."
South Africa has experienced its worst power cuts on record, leaving businesses and households in the dark for up to 10 hours daily. The South African Reserve Bank estimates these blackouts have shaved off at least 2 percentage points from growth.
Ramaphosa will be looking to make good on his government's reform promises as he gears up to be elected for a second term as president in next year's national elections.
In his closing remarks on Thursday, Ramaphosa said the 1.2 trillion rand investment target announced in 2018 was exceeded, as pledges reached 1.51 trillion rand.
"The success of this first phase must be a springboard towards a recovered, reconstructed, inclusive new economy," he said to a standing ovation from the delegates.
($1 = 18.0603 rand)
(Reporting by Kopano Gumbi, Tannur Anders and Carien du Plessis; Editing by Bhargav Acharya and David Holmes)
((Kopano.Gumbi@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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Anglo American AAL.L CEO Duncan Wanblad said: "There are a few quick wins that we need to achieve to be able to change and turn that negative investor sentiment around." By Kopano Gumbi and Tannur Anders JOHANNESBURG, April 13 (Reuters) - South Africa needs to urgently fix energy, transport and security challenges if it is to reverse souring investor sentiment, executives said on Thursday as President Cyril Ramaphosa targets 2 trillion rand ($111 billion) in new investments over the next five years. Mismanagement and corruption at state-owned companies, including power utility Eskom and freight logistics group Transnet, have had a knock-on effect on ports and road transport, hitting efficiency and dampening investor appetite.
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Anglo American AAL.L CEO Duncan Wanblad said: "There are a few quick wins that we need to achieve to be able to change and turn that negative investor sentiment around." By Kopano Gumbi and Tannur Anders JOHANNESBURG, April 13 (Reuters) - South Africa needs to urgently fix energy, transport and security challenges if it is to reverse souring investor sentiment, executives said on Thursday as President Cyril Ramaphosa targets 2 trillion rand ($111 billion) in new investments over the next five years. "We are confronted with the consequences of years of underinvestment, mismanagement and corruption in the electricity and rail sectors," Ramaphosa told attendees, promising to work with the private sector to remove investment stumbling blocks.
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Anglo American AAL.L CEO Duncan Wanblad said: "There are a few quick wins that we need to achieve to be able to change and turn that negative investor sentiment around." By Kopano Gumbi and Tannur Anders JOHANNESBURG, April 13 (Reuters) - South Africa needs to urgently fix energy, transport and security challenges if it is to reverse souring investor sentiment, executives said on Thursday as President Cyril Ramaphosa targets 2 trillion rand ($111 billion) in new investments over the next five years. "The way we see it for the future of South Africa, international investment is so important and these challenges make it difficult for us to position the potential of South Africa as an attractive investment destination while there is uncertainty on when reforms will be implemented," Brown said.
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Anglo American AAL.L CEO Duncan Wanblad said: "There are a few quick wins that we need to achieve to be able to change and turn that negative investor sentiment around." By Kopano Gumbi and Tannur Anders JOHANNESBURG, April 13 (Reuters) - South Africa needs to urgently fix energy, transport and security challenges if it is to reverse souring investor sentiment, executives said on Thursday as President Cyril Ramaphosa targets 2 trillion rand ($111 billion) in new investments over the next five years. Mismanagement and corruption at state-owned companies, including power utility Eskom and freight logistics group Transnet, have had a knock-on effect on ports and road transport, hitting efficiency and dampening investor appetite.
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2705.0
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2023-04-13 00:00:00 UTC
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Triton (TRTN) to be Sold for $13.3 Billion to Brookfield
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AAL
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https://www.nasdaq.com/articles/triton-trtn-to-be-sold-for-%2413.3-billion-to-brookfield
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nan
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nan
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Triton International Limited (TRTN) and Brookfield Infrastructure Partners L.P. (BIP), through its subsidiary Brookfield Infrastructure Corporation ("BIPC") and its institutional partners (collectively, "Brookfield Infrastructure"), declared a joint definitive agreement. Per the deal, Triton will be acquired in a cash and stock transaction by Brookfield at a total enterprise value of $13.3 billion.
Subject to customary closing conditions, which include approval by Triton's shareholders and receipt of required regulatory approvals, the deal is anticipated to be completed in the fourth quarter of 2023. The deal has been approved and recommended by Triton’s board of directors and by Brookfield Infrastructure.
Triton’s common shareholders will receive consideration valued at $85 per share, which includes $68.50 in cash and $16.50 in class A shares of BIPC.
Brian M. Sondey, chief executive officer at Triton, stated, "We believe this transaction provides an excellent outcome for all of Triton's stakeholders." He added, "The sale price provides significant value to our investors and represents a 35% premium to yesterday's closing share price. For our long-term shareholders, this transaction crystalizes a total shareholder return of approximately 700% since the 2016 merger of Triton and TAL International. For our customers and employees, Brookfield Infrastructure's significant resources and long-term investment horizon will support Triton's franchise, underpin our commitment to providing unrivaled service, and support continued investment in our growing business."
Brookfield Infrastructure aims to maintain Triton's current investment-grade capital structure and support the operating and customer service standards to benefit Triton's customers and shareholders and long-term business growth.
So far this year, shares of Triton have gained 21.1% against the 2.7% loss of the industry it belongs to.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Currently, Triton carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Zacks Transportation sector are Copa Holdings, S.A. CPA and American Airlines AAL. Each of these companies presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings has an expected earnings growth rate of 40.8% for the current year. CPA delivered a trailing four-quarter earnings surprise of 33.35%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 15% over the past 90 days. Shares of CPA have risen 22.7% over the past six months.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 40.5% over the past 90 days. Shares of AAL have gained 14.8% over the past six months.
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
Brookfield Infrastructure Partners LP (BIP) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Triton International Limited (TRTN) : 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 from the Zacks Transportation sector are Copa Holdings, S.A. CPA and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
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Click to get this free report Brookfield Infrastructure Partners LP (BIP) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Triton International Limited (TRTN) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the Zacks Transportation sector are Copa Holdings, S.A. CPA and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year.
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Click to get this free report Brookfield Infrastructure Partners LP (BIP) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Triton International Limited (TRTN) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks from the Zacks Transportation sector are Copa Holdings, S.A. CPA and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year.
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Some better-ranked stocks from the Zacks Transportation sector are Copa Holdings, S.A. CPA and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
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2706.0
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2023-04-13 00:00:00 UTC
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5 Reasons Why Investors Should Buy FedEx (FDX) Stock Now
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AAL
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https://www.nasdaq.com/articles/5-reasons-why-investors-should-buy-fedex-fdx-stock-now
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nan
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FedEx Corporation’s FDX measures to reward its shareholders are encouraging. The company’s 2023 earnings guidance looks encouraging.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes FedEx an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse year to date. Shares of FedEx have gained 32.5% so far this year compared with the 14.4% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: FedEx currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.
Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for FDX current-quarter earnings has moved up 14.7% in the past 90 days.
Positive Earnings Surprise History: FedEx has an impressive earnings surprise history. The company delivered an earnings surprise of 8.79% in the last four quarters, on average.
Growth Factors: FDX’s board of directors recently approved a dividend hike of 10%, thereby raising its quarterly cash dividend from $1.15 ($4.60 annualized) per share to $1.26 ($5.04 annualized). The raised dividend is anticipated to be paid out on Jul 3, 2023, to shareholders of record at the close of business on Jun 12.
FedEx has been consistently making efforts to reward its shareholders through dividends and share buybacks, which are encouraging. In the first nine months of fiscal 2023, FedEx paid out dividends worth $888 million (higher than $598 million in the first nine months of fiscal 2022).
In fiscal 2022, FedEx paid out dividends worth $793 million (higher than the $686 million dividend payout in fiscal 2021). Such shareholder-friendly moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
Driven by its cost-saving plan, which is expected to accelerate in the fiscal fourth quarter, management raised its earnings outlook for fiscal 2023. FDX expects earnings per share for 2023 (prior to MTM retirement plans to account for adjustments and excluding estimated costs related to business optimization initiatives and costs related to business realignment activities) between $14.6 and $15.2 (earlier guidance - $13-$14).
Other Stocks to Consider
Some other top-ranked stocks from the Zacks Transportation sector are Copa Holdings, S.A. CPA and American Airlines AAL. Each of these companies presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings has an expected earnings growth rate of 40.8% for the current year. CPA delivered a trailing four-quarter earnings surprise of 33.35%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 15% over the past 90 days. Shares of CPA have risen 22.7% over the past six months.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 40.5% over the past 90 days. Shares of AAL have gained 14.8% over the past six months.
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
FedEx Corporation (FDX) : 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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Other Stocks to Consider Some other top-ranked stocks from the Zacks Transportation sector are Copa Holdings, S.A. CPA and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
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Click to get this free report FedEx Corporation (FDX) : 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. Other Stocks to Consider Some other top-ranked stocks from the Zacks Transportation sector are Copa Holdings, S.A. CPA and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year.
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Click to get this free report FedEx Corporation (FDX) : 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. Other Stocks to Consider Some other top-ranked stocks from the Zacks Transportation sector are Copa Holdings, S.A. CPA and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year.
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Other Stocks to Consider Some other top-ranked stocks from the Zacks Transportation sector are Copa Holdings, S.A. CPA and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
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2707.0
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2023-04-13 00:00:00 UTC
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American Airlines (AAL) to Report Q1 Results: Wall Street Expects Earnings Growth
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-to-report-q1-results%3A-wall-street-expects-earnings-growth
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American Airlines (AAL) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on theearnings call it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus Estimate
This world's largest airline is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of +101.3%.
Revenues are expected to be $12.23 billion, up 37.5% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 17.05% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for American Airlines?
For American Airlines, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +226.92%.
On the other hand, the stock currently carries a Zacks Rank of #1.
So, this combination indicates that American Airlines will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that American Airlines would post earnings of $1.14 per share when it actually produced earnings of $1.17, delivering a surprise of +2.63%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
American Airlines appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2023. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
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American Airlines (AAL) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2023. 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 Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate.
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American Airlines (AAL) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2023. 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 Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate.
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American Airlines (AAL) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2023. 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 earnings report might help the stock move higher if these key numbers are better than expectations.
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2708.0
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2023-04-13 00:00:00 UTC
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Pre-Market Most Active for Apr 13, 2023 : TQQQ, SQQQ, AAL, TSLA, JD, QQQ
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-apr-13-2023-%3A-tqqq-sqqq-aal-tsla-jd-qqq
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The NASDAQ 100 Pre-Market Indicator is up 40.17 to 12,888.52. The total Pre-Market volume is currently 46,163,258 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro QQQ (TQQQ) is +0.15 at $26.28, with 2,575,215 shares traded. This represents a 63.23% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is -0.16 at $31.53, with 2,204,379 shares traded. This represents a 8.05% increase from its 52 Week Low.
American Airlines Group, Inc. (AAL) is +0.22 at $13.22, with 1,478,342 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023. The consensus EPS forecast is $1.03. AAL is scheduled to provide an earnings report on 4/20/2023, for the fiscal quarter ending Mar2023. The consensus earnings per share forecast is 0.04 per share, which represents a -232 percent increase over the EPS one Year Ago
Tesla, Inc. (TSLA) is +1.49 at $182.03, with 1,300,389 shares traded.TSLA is scheduled to provide an earnings report on 4/19/2023, for the fiscal quarter ending Mar2023. The consensus earnings per share forecast is 0.75 per share, which represents a 95 percent increase over the EPS one Year Ago
JD.com, Inc. (JD) is +0.65 at $37.60, with 731,307 shares traded. As reported by Zacks, the current mean recommendation for JD is in the "buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.76 at $313.80, with 540,335 shares traded. This represents a 23.42% increase from its 52 Week Low.
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 is scheduled to provide an earnings report on 4/20/2023, for the fiscal quarter ending Mar2023. American Airlines Group, Inc. (AAL) is +0.22 at $13.22, with 1,478,342 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2023.
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AAL is scheduled to provide an earnings report on 4/20/2023, for the fiscal quarter ending Mar2023. American Airlines Group, Inc. (AAL) is +0.22 at $13.22, with 1,478,342 shares traded. The consensus earnings per share forecast is 0.04 per share, which represents a -232 percent increase over the EPS one Year Ago
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American Airlines Group, Inc. (AAL) is +0.22 at $13.22, with 1,478,342 shares traded. AAL is scheduled to provide an earnings report on 4/20/2023, for the fiscal quarter ending Mar2023. The consensus earnings per share forecast is 0.04 per share, which represents a -232 percent increase over the EPS one Year Ago
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American Airlines Group, Inc. (AAL) is +0.22 at $13.22, with 1,478,342 shares traded. AAL is scheduled to provide an earnings report on 4/20/2023, for the fiscal quarter ending Mar2023. The NASDAQ 100 Pre-Market Indicator is up 40.17 to 12,888.52.
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2709.0
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2023-04-13 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-3
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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 growth 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 growth 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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2710.0
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2023-04-13 00:00:00 UTC
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Delta Air Lines (DAL) Misses Q1 Earnings and Revenue Estimates
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-dal-misses-q1-earnings-and-revenue-estimates
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Delta Air Lines (DAL) came out with quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.29 per share. This compares to loss of $1.23 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -13.79%. A quarter ago, it was expected that this airline would post earnings of $1.29 per share when it actually produced earnings of $1.48, delivering a surprise of 14.73%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Delta, which belongs to the Zacks Transportation - Airline industry, posted revenues of $12.76 billion for the quarter ended March 2023, missing the Zacks Consensus Estimate by 0.07%. This compares to year-ago revenues of $9.35 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Delta shares have added about 2.7% since the beginning of the year versus the S&P 500's gain of 6.6%.
What's Next for Delta?
While Delta has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Delta: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.38 on $14.57 billion in revenues for the coming quarter and $5.20 on $55.21 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Airline is currently in the top 13% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, American Airlines (AAL), is yet to report results for the quarter ended March 2023.
This world's largest airline is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of +101.3%. The consensus EPS estimate for the quarter has been revised 17.1% higher over the last 30 days to the current level.
American Airlines' revenues are expected to be $12.23 billion, up 37.5% from the year-ago 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
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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One other stock from the same industry, American Airlines (AAL), is yet to report results for the quarter ended March 2023. Click to get this free 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. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock.
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Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. One other stock from the same industry, American Airlines (AAL), is yet to report results for the quarter ended March 2023. Delta, which belongs to the Zacks Transportation - Airline industry, posted revenues of $12.76 billion for the quarter ended March 2023, missing the Zacks Consensus Estimate by 0.07%.
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One other stock from the same industry, American Airlines (AAL), is yet to report results for the quarter ended March 2023. Click to get this free 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. Delta Air Lines (DAL) came out with quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.29 per share.
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One other stock from the same industry, American Airlines (AAL), is yet to report results for the quarter ended March 2023. Click to get this free 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. Delta Air Lines (DAL) came out with quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.29 per share.
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2711.0
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2023-04-13 00:00:00 UTC
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Delta Air offers bullish outlook on international travel demand
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AAL
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https://www.nasdaq.com/articles/delta-air-offers-bullish-outlook-on-international-travel-demand-0
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nan
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By Rajesh Kumar Singh
CHICAGO, April 13 (Reuters) - Delta Air Lines DAL.N on Thursday forecast higher-than-expected profit for the second quarter, citing "record" bookings for summer travel, including strong demand for international trips.
Shares of the company rose 4.45% to $35.20 in early trading.
The company's earnings in the January-March quarter, however, fell short of Wall Street estimates. Chief Executive Ed Bastian, in an interview with Reuters, said fuel price volatility and bad weather affected the company's performance in the quarter.
Bastian remained upbeat about consumer demand despite growing risks of an economic recession. Premium cabin revenue grew faster than the main cabin in the first quarter.
"Consumers are anxious to travel," he said, adding that demand for international travel was especially strong this summer and travelers were booking trips well in advance.
Travel demand in the United States is currently strong but rising interest rates, persistently high inflation, mounting job losses and a turmoil in the banking industry have cast a shadow over consumer spending.
U.S. carriers have leveraged the demand to offset rising labor and fuel bills with higher ticket prices. But investors are worried that any pullback in travel spending would hurt airline profits.
American AirlinesAAL.O on Wednesday forecast first-quarter profit below market expectations, joining rival United Airlines UAL.O in signaling a hit from high labor and fuel costs.
Bastian downplayed those concerns. He said Delta recorded the 10 highest sales days in its history last month and had been able to protect its pricing power despite adding capacity.
The company expects its revenue in the June quarter to rise 15% to 17% from a year ago on capacity growth of 17%.
Delta expects an adjusted profit of $2.00 to $2.25 per share in the second quarter, with an operating margin of 14% to 16%. That is higher than a profit of $1.66 per share estimated by analysts.
Non-fuel costs for the quarter are projected to rise between 1% to 3% year-on-year. Delta pilots last month ratified a new contract that includes over $7 billion in cumulative increases in pay and benefits over four years and is widely expected to be a benchmark for contract negotiations at rival carriers.
Delta retained its full-year earnings forecast after reporting adjusted profit for the first quarter of 25 cents a share, below 30 cents a share expected by analysts.
FOCUS-Delta bets on premium travel as 'shock absorber' for economic downturn
(Reporting by Rajesh Kumar Singh; Editing by Jamie Freed)
((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 AirlinesAAL.O on Wednesday forecast first-quarter profit below market expectations, joining rival United Airlines UAL.O in signaling a hit from high labor and fuel costs. By Rajesh Kumar Singh CHICAGO, April 13 (Reuters) - Delta Air Lines DAL.N on Thursday forecast higher-than-expected profit for the second quarter, citing "record" bookings for summer travel, including strong demand for international trips. Travel demand in the United States is currently strong but rising interest rates, persistently high inflation, mounting job losses and a turmoil in the banking industry have cast a shadow over consumer spending.
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American AirlinesAAL.O on Wednesday forecast first-quarter profit below market expectations, joining rival United Airlines UAL.O in signaling a hit from high labor and fuel costs. By Rajesh Kumar Singh CHICAGO, April 13 (Reuters) - Delta Air Lines DAL.N on Thursday forecast higher-than-expected profit for the second quarter, citing "record" bookings for summer travel, including strong demand for international trips. "Consumers are anxious to travel," he said, adding that demand for international travel was especially strong this summer and travelers were booking trips well in advance.
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American AirlinesAAL.O on Wednesday forecast first-quarter profit below market expectations, joining rival United Airlines UAL.O in signaling a hit from high labor and fuel costs. By Rajesh Kumar Singh CHICAGO, April 13 (Reuters) - Delta Air Lines DAL.N on Thursday forecast higher-than-expected profit for the second quarter, citing "record" bookings for summer travel, including strong demand for international trips. "Consumers are anxious to travel," he said, adding that demand for international travel was especially strong this summer and travelers were booking trips well in advance.
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American AirlinesAAL.O on Wednesday forecast first-quarter profit below market expectations, joining rival United Airlines UAL.O in signaling a hit from high labor and fuel costs. "Consumers are anxious to travel," he said, adding that demand for international travel was especially strong this summer and travelers were booking trips well in advance. U.S. carriers have leveraged the demand to offset rising labor and fuel bills with higher ticket prices.
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2712.0
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2023-04-13 00:00:00 UTC
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Delta Air offers bullish outlook on international travel demand
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AAL
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https://www.nasdaq.com/articles/delta-air-offers-bullish-outlook-on-international-travel-demand
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nan
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nan
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By Rajesh Kumar Singh
CHICAGO, April 13 (Reuters) - Delta Air Lines DAL.N on Thursday forecast higher-than-expected profit for the second quarter, citing "record" bookings for summer travel, including strong demand for international trips.
The company's earnings in the January-March quarter, however, fell short of Wall Street estimates. Chief Executive Ed Bastian, in an interview with Reuters, said fuel price volatility and bad weather affected the company's performance in the quarter.
Bastian remained upbeat about consumer demand despite growing risks of an economic recession. Premium cabin revenue grew faster than the main cabin in the first quarter.
"Consumers are anxious to travel," he said, adding that demand for international travel was especially strong this summer and travelers were booking trips well in advance.
Travel demand in the United States is currently strong but rising interest rates, persistently high inflation, mounting job losses and a turmoil in the banking industry have cast a shadow over consumer spending.
U.S. carriers have leveraged the demand to offset rising labor and fuel bills with higher ticket prices. But investors are worried that any pullback in travel spending would hurt airline profits.
American AirlinesAAL.O on Wednesday forecast first-quarter profit below market expectations, joining rival United Airlines UAL.O in signaling a hit from high labor and fuel costs.
Bastian downplayed those concerns. He said Delta recorded the 10 highest sales days in its history last month and had been able to protect its pricing power despite adding capacity.
The company expects its revenue in the June quarter to rise 15% to 17% from a year ago on capacity growth of 17%.
Delta expects an adjusted profit of $2.00 to $2.25 per share in the second quarter, with an operating margin of 14% to 16%. That is higher than a profit of $1.66 per share estimated by analysts.
Non-fuel costs for the quarter are projected to rise between 1% to 3% year-on-year. Delta pilots last month ratified a new contract that includes over $7 billion in cumulative increases in pay and benefits over four years and is widely expected to be a benchmark for contract negotiations at rival carriers.
Delta retained its full-year earnings forecast after reporting adjusted profit for the first quarter of 25 cents a share, below 30 cents a share expected by analysts.
FOCUS-Delta bets on premium travel as 'shock absorber' for economic downturn
(Reporting by Rajesh Kumar Singh; Editing by Jamie Freed)
((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 AirlinesAAL.O on Wednesday forecast first-quarter profit below market expectations, joining rival United Airlines UAL.O in signaling a hit from high labor and fuel costs. By Rajesh Kumar Singh CHICAGO, April 13 (Reuters) - Delta Air Lines DAL.N on Thursday forecast higher-than-expected profit for the second quarter, citing "record" bookings for summer travel, including strong demand for international trips. Travel demand in the United States is currently strong but rising interest rates, persistently high inflation, mounting job losses and a turmoil in the banking industry have cast a shadow over consumer spending.
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American AirlinesAAL.O on Wednesday forecast first-quarter profit below market expectations, joining rival United Airlines UAL.O in signaling a hit from high labor and fuel costs. By Rajesh Kumar Singh CHICAGO, April 13 (Reuters) - Delta Air Lines DAL.N on Thursday forecast higher-than-expected profit for the second quarter, citing "record" bookings for summer travel, including strong demand for international trips. "Consumers are anxious to travel," he said, adding that demand for international travel was especially strong this summer and travelers were booking trips well in advance.
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American AirlinesAAL.O on Wednesday forecast first-quarter profit below market expectations, joining rival United Airlines UAL.O in signaling a hit from high labor and fuel costs. By Rajesh Kumar Singh CHICAGO, April 13 (Reuters) - Delta Air Lines DAL.N on Thursday forecast higher-than-expected profit for the second quarter, citing "record" bookings for summer travel, including strong demand for international trips. "Consumers are anxious to travel," he said, adding that demand for international travel was especially strong this summer and travelers were booking trips well in advance.
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American AirlinesAAL.O on Wednesday forecast first-quarter profit below market expectations, joining rival United Airlines UAL.O in signaling a hit from high labor and fuel costs. "Consumers are anxious to travel," he said, adding that demand for international travel was especially strong this summer and travelers were booking trips well in advance. U.S. carriers have leveraged the demand to offset rising labor and fuel bills with higher ticket prices.
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2713.0
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2023-04-13 00:00:00 UTC
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Japan's Mitsubishi Corp looks to invest in nickel, lithium projects
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AAL
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https://www.nasdaq.com/articles/japans-mitsubishi-corp-looks-to-invest-in-nickel-lithium-projects
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nan
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By Yuka Obayashi
TOKYO, April 13 (Reuters) - Japanese trading house Mitsubishi Corp 8058.T is looking to invest in nickel and lithium projects to meet growing demand for electric vehicle (EV) batteries, while boosting its copper output, the head of its metal operations said on Thursday.
The move comes as global push by automakers to electrify their fleets has sparked a rush for stable supplies of lithium, nickel and copper and other critical minerals. Demand is expected to exceed supply by the end of the decade.
"As global resource companies and others are looking for lithium and nickel, we are considering to invest in the two metals," Satoshi Koyama, Mitsubishi's mineral resources group CEO, told an analysts meeting.
Canada and Australia could be investment targets for nickel as they meet both the criteria of safety from the perspective of geopolitical risk and access to renewable power from the perspective of decarbonisation, he said.
Last year, Mitsubishi bought a 15% stake in a joint venture with Giga Metals Corp GIGA.V to pursue the development of the Turnagain nickel deposit in Canada.
"We are verifying what kind of nickel projects will make it to the profitability line, given technical hurdles and cost issues," Koyama said.
Mitsubishi is also looking into a number of lithium projects.
To develop a new mine, it must come with the downstream operation to process the metal into raw battery material, but whether it can be done in Australia and North America will be the biggest challenge, Koyama said.
Mitsubishi and its joint venture partner BHP Group BHP.AX in Australia have put up for sale their Daunia and Blackwater metallurgical coal mines in Queensland's Bowen Basin.
"If the deal comes through, we may allocate the cash into growth segments such as copper and battery metals," Koyama said.
Mitsubishi, which owns a stake in five copper mines in South America, including 40% stake in Anglo American's AAL.L Quellaveco mine in Peru, wants to bolster its copper output by expanding the existing mines and investing in new promising projects, Koyama said.
(Reporting by Yuka Obayashi; Editing by Kim Coghill)
((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))
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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Mitsubishi, which owns a stake in five copper mines in South America, including 40% stake in Anglo American's AAL.L Quellaveco mine in Peru, wants to bolster its copper output by expanding the existing mines and investing in new promising projects, Koyama said. By Yuka Obayashi TOKYO, April 13 (Reuters) - Japanese trading house Mitsubishi Corp 8058.T is looking to invest in nickel and lithium projects to meet growing demand for electric vehicle (EV) batteries, while boosting its copper output, the head of its metal operations said on Thursday. The move comes as global push by automakers to electrify their fleets has sparked a rush for stable supplies of lithium, nickel and copper and other critical minerals.
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Mitsubishi, which owns a stake in five copper mines in South America, including 40% stake in Anglo American's AAL.L Quellaveco mine in Peru, wants to bolster its copper output by expanding the existing mines and investing in new promising projects, Koyama said. By Yuka Obayashi TOKYO, April 13 (Reuters) - Japanese trading house Mitsubishi Corp 8058.T is looking to invest in nickel and lithium projects to meet growing demand for electric vehicle (EV) batteries, while boosting its copper output, the head of its metal operations said on Thursday. "As global resource companies and others are looking for lithium and nickel, we are considering to invest in the two metals," Satoshi Koyama, Mitsubishi's mineral resources group CEO, told an analysts meeting.
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Mitsubishi, which owns a stake in five copper mines in South America, including 40% stake in Anglo American's AAL.L Quellaveco mine in Peru, wants to bolster its copper output by expanding the existing mines and investing in new promising projects, Koyama said. By Yuka Obayashi TOKYO, April 13 (Reuters) - Japanese trading house Mitsubishi Corp 8058.T is looking to invest in nickel and lithium projects to meet growing demand for electric vehicle (EV) batteries, while boosting its copper output, the head of its metal operations said on Thursday. "As global resource companies and others are looking for lithium and nickel, we are considering to invest in the two metals," Satoshi Koyama, Mitsubishi's mineral resources group CEO, told an analysts meeting.
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Mitsubishi, which owns a stake in five copper mines in South America, including 40% stake in Anglo American's AAL.L Quellaveco mine in Peru, wants to bolster its copper output by expanding the existing mines and investing in new promising projects, Koyama said. By Yuka Obayashi TOKYO, April 13 (Reuters) - Japanese trading house Mitsubishi Corp 8058.T is looking to invest in nickel and lithium projects to meet growing demand for electric vehicle (EV) batteries, while boosting its copper output, the head of its metal operations said on Thursday. The move comes as global push by automakers to electrify their fleets has sparked a rush for stable supplies of lithium, nickel and copper and other critical minerals.
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2714.0
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2023-04-13 00:00:00 UTC
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FOCUS-Airlines, repair shops in N. America eye used, generic parts to keep aircraft flying
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AAL
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https://www.nasdaq.com/articles/focus-airlines-repair-shops-in-n.-america-eye-used-generic-parts-to-keep-aircraft-flying
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By Allison Lampert and Abhijith Ganapavaram
April 13 (Reuters) - Airlines and aircraft repair shops in North America are increasingly relying on used and generic parts to keep jets flying, a symptom of the rising costs and supply-chain shortages plaguing the aerospace industry.
These alternatives to new parts made by the original manufacturer must be certified and deemed safe. While they account for a fraction of the estimated $35 billion spent annually on components for repairs, sales are growing, analysts and executives say.
Driving demand is the struggle aerospace suppliers face to fill new orders as air traffic soars and the supply chain for aircraft parts recovers from the COVID-19 pandemic, when labor shortages and lockdowns slowed production.
Higher costs and a shortage of available new parts are also delaying aircraft repairs, which risk pushing up air fares.
That has spurred demand from airlines and repair shops for alternatives that cost roughly 20% to 40% less than new parts, analysts and executives said. Some makers of brand-name parts like General Electric Co GE.N stand to benefit because they also sell used parts, known as used serviceable material.
Some planemakers are also benefitting. Business jet maker Bombardier Inc BBDb.TO uses a teardown venture to gain parts for its growing "aftermarket" business that provides maintenance and repairs for planes.
The venture has helped the company source parts for older aircraft models that are harder to find in the current market, or are no longer being produced, a spokesman said.
American Airlines AAL.O, meanwhile, says it has helped develop certified parts that were not made by the original manufacturer to mitigate "increased costs and other supply chain constraints."
Companies spent $35 billion in 2019 on materials for aviation repairs and overhauls, including $5 billion on used parts and $725 million on generic components, aerospace specialist Naveo Consultancy estimates.
It declined to disclose figures for the following years, but analysts at Naveo and others say demand for alternatives to new parts is rising.
Honeywell Aerospace Trading HON.O, the U.S. conglomerate's used parts business, is among companies enjoying higher demand since 2021. It expects demand to continue through at least the first half of 2024 as the supply chain recovers, said Heath Patrick, president for the Americas aftermarket segment at Honeywell Aerospace.
The market for new generic parts with a Parts Manufacturer Approval stamp from the U.S. Federal Aviation Administration (FAA) may be small - representing just 2% to 3% of spending on materials - but growth is outstripping overall market trends, said Adam Guthorn, managing director at aerospace consultancy Alton.
HEICO Corp HEI.N, a major independent supplier of new FAA-approved parts not made by the original manufacturer, expects demand to continue even after supply bottlenecks improve, vice president Patrick Markham said.
"Growth will be stronger than pre-pandemic" in the next few years, he said. HEICO's profit in its latest fiscal year ending Oct. 31 rose 16% to a record $351.7 million, helped by booming sales of parts with the PMA stamp.
Companies like GE could lose some demand to such independent companies producing certified components that perform the same fit and function, as they can be cheaper and easier to procure in the current environment, said Abdol Moabery, CEO of Florida-based GA Telesis, which repairs and overhauls jet engines.
GE, in response, says it provides customers with used material that can "significantly lower shop visit costs."
The market for certified used and generic parts has its limits. For example, parts makers face the same labor shortages that have hit all companies, analysts said.
Bigger players like GE could also simply make life tougher for companies like HEICO by cutting prices if they found the smaller firms gaining too much market share, said HEICO's Markham.
TEARING DOWN PLANES
The increase in price for parts is expected to moderate this year after rising between high single-digits and low-double-digits in 2022, even though costs remain above pre-COVID-19 levels, said Alex Youngs, an executive with private equity firm Carlyle Group's repair unit StandardAero.
Companies are trying to find parts any way they can, driving demand to "teardown" aging planes.
Bombardier, whose teardown business is a slice of its higher-margin aftermarket segment, says it has taken critical parts like engines from 11 older, customer-owned business jets torn down through a previously unreported 2018 agreement.
The teardown business, which helped generate parts for planes temporarily grounded due to supply constraints during the COVID-19 pandemic, contributes to Bombardier's aftermarket revenue target of $2 billion by 2025, up from $1.5 billion in 2022.
To meet demand from private planes, Chicago-based Jet Support Services Inc. (JSSI), an independent provider of maintenance support and financial services, says it is buying more aircraft to tear down for parts.
JSSI, which has maintenance tracking software on over 3,500 aircraft, said 60% of parts on those planes were new in 2022, down from 67% in 2019.
Costs are not the only issue. Moabery has seen time to turn around certain repair orders roughly double because it takes longer to get back repaired components from large suppliers.
"We used to turn an engine in under 60 days," he said. "We'd be lucky to deliver an engine in under 100 days today."
In addition, the supply pool from old aircraft is finite. Only about 428 air transport aircraft globally were recognized as retired in 2022, the lowest level since 2007, according to Naveo. GE expects 400 to 500 aircraft retirements in 2025.
Ultimately, the alternatives to new parts may bring relief but a congested supply chain must be fixed, said Benjamin Hockenberg, president of JSSI Parts & Leasing.
"Certain models, certain situations, (used parts) will fill the void, but I think we also need to see a repaired supply chain," said Hockenberg.
(Reporting By Allison Lampert in Montreal and Abhijith Ganapavaram in Bengaluru, editing by Ben Klayman and Deepa Babington)
((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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American Airlines AAL.O, meanwhile, says it has helped develop certified parts that were not made by the original manufacturer to mitigate "increased costs and other supply chain constraints." By Allison Lampert and Abhijith Ganapavaram April 13 (Reuters) - Airlines and aircraft repair shops in North America are increasingly relying on used and generic parts to keep jets flying, a symptom of the rising costs and supply-chain shortages plaguing the aerospace industry. Driving demand is the struggle aerospace suppliers face to fill new orders as air traffic soars and the supply chain for aircraft parts recovers from the COVID-19 pandemic, when labor shortages and lockdowns slowed production.
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American Airlines AAL.O, meanwhile, says it has helped develop certified parts that were not made by the original manufacturer to mitigate "increased costs and other supply chain constraints." By Allison Lampert and Abhijith Ganapavaram April 13 (Reuters) - Airlines and aircraft repair shops in North America are increasingly relying on used and generic parts to keep jets flying, a symptom of the rising costs and supply-chain shortages plaguing the aerospace industry. Business jet maker Bombardier Inc BBDb.TO uses a teardown venture to gain parts for its growing "aftermarket" business that provides maintenance and repairs for planes.
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American Airlines AAL.O, meanwhile, says it has helped develop certified parts that were not made by the original manufacturer to mitigate "increased costs and other supply chain constraints." By Allison Lampert and Abhijith Ganapavaram April 13 (Reuters) - Airlines and aircraft repair shops in North America are increasingly relying on used and generic parts to keep jets flying, a symptom of the rising costs and supply-chain shortages plaguing the aerospace industry. Driving demand is the struggle aerospace suppliers face to fill new orders as air traffic soars and the supply chain for aircraft parts recovers from the COVID-19 pandemic, when labor shortages and lockdowns slowed production.
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American Airlines AAL.O, meanwhile, says it has helped develop certified parts that were not made by the original manufacturer to mitigate "increased costs and other supply chain constraints." That has spurred demand from airlines and repair shops for alternatives that cost roughly 20% to 40% less than new parts, analysts and executives said. Business jet maker Bombardier Inc BBDb.TO uses a teardown venture to gain parts for its growing "aftermarket" business that provides maintenance and repairs for planes.
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2715.0
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2023-04-13 00:00:00 UTC
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South Africa targets $111 bln investment goal in tough investor climate
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https://www.nasdaq.com/articles/south-africa-targets-%24111-bln-investment-goal-in-tough-investor-climate
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nan
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JOHANNESBURG, April 13 (Reuters) - South Africa needs to urgently fix energy, transport and security challenges if it is to reverse souring investor sentiment, executives said on Thursday as President Cyril Ramaphosa targets 2 trillion rand ($111 billion) in new investments over the next five years.
Executives were speaking at the South African Investment Conference in Johannesburg, launched by Ramaphosa in 2018 as a way to boost economic activity that had been in decline for over a decade in Africa's most advanced but struggling economy.
Mismanagement and corruption at state-owned companies, including power utility Eskom and freight logistics group Transnet, have had a knock-on effect on ports and road transport, hitting efficiency and dampening investor appetite.
"We are confronted with the consequences of years of underinvestment, mismanagement and corruption in the electricity and rail sectors," Ramaphosa told attendees, promising to work
with the private sector to remove investment stumbling blocks.
"As I announced in the State of the Nation address in February, we are now setting a new target to mobilise approximately 2 trillion rand in new investments over another five-year period,” the president said.
Emrie Brown, chief executive of financial services holding company Rand Merchant Bank, told attendees the firm's clients were concerned about the rising cost of production as a result of challenges in the country.
"The way we see it for the future of South Africa, international investment is so important and these challenges make it difficult for us to position the potential of South Africa as an attractive investment destination while there is uncertainty on when reforms will be implemented," Brown said.
Anglo American AAL.L CEO Duncan Wanblad said: "There are a few quick wins that we need to achieve to be able to change and turn that negative investor sentiment around."
South Africa has experienced its worst power cuts on record, leaving businesses and households in the dark for up to 10 hours daily. The South African Reserve Bank estimates these blackouts have shaved off at least 2 percentage points from growth.
Ramaphosa will be looking to make good on his government's reform promises as he gears up to be elected for a second term as president in next year's national elections.
($1 = 18.0603 rand)
(Reporting by Kopano Gumbi, Tannur Anders and Carien du Plessis; Editing by Bhargav Acharya and David Holmes)
((Kopano.Gumbi@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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Anglo American AAL.L CEO Duncan Wanblad said: "There are a few quick wins that we need to achieve to be able to change and turn that negative investor sentiment around." JOHANNESBURG, April 13 (Reuters) - South Africa needs to urgently fix energy, transport and security challenges if it is to reverse souring investor sentiment, executives said on Thursday as President Cyril Ramaphosa targets 2 trillion rand ($111 billion) in new investments over the next five years. Mismanagement and corruption at state-owned companies, including power utility Eskom and freight logistics group Transnet, have had a knock-on effect on ports and road transport, hitting efficiency and dampening investor appetite.
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Anglo American AAL.L CEO Duncan Wanblad said: "There are a few quick wins that we need to achieve to be able to change and turn that negative investor sentiment around." JOHANNESBURG, April 13 (Reuters) - South Africa needs to urgently fix energy, transport and security challenges if it is to reverse souring investor sentiment, executives said on Thursday as President Cyril Ramaphosa targets 2 trillion rand ($111 billion) in new investments over the next five years. "We are confronted with the consequences of years of underinvestment, mismanagement and corruption in the electricity and rail sectors," Ramaphosa told attendees, promising to work with the private sector to remove investment stumbling blocks.
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Anglo American AAL.L CEO Duncan Wanblad said: "There are a few quick wins that we need to achieve to be able to change and turn that negative investor sentiment around." JOHANNESBURG, April 13 (Reuters) - South Africa needs to urgently fix energy, transport and security challenges if it is to reverse souring investor sentiment, executives said on Thursday as President Cyril Ramaphosa targets 2 trillion rand ($111 billion) in new investments over the next five years. Executives were speaking at the South African Investment Conference in Johannesburg, launched by Ramaphosa in 2018 as a way to boost economic activity that had been in decline for over a decade in Africa's most advanced but struggling economy.
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Anglo American AAL.L CEO Duncan Wanblad said: "There are a few quick wins that we need to achieve to be able to change and turn that negative investor sentiment around." JOHANNESBURG, April 13 (Reuters) - South Africa needs to urgently fix energy, transport and security challenges if it is to reverse souring investor sentiment, executives said on Thursday as President Cyril Ramaphosa targets 2 trillion rand ($111 billion) in new investments over the next five years. Mismanagement and corruption at state-owned companies, including power utility Eskom and freight logistics group Transnet, have had a knock-on effect on ports and road transport, hitting efficiency and dampening investor appetite.
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2716.0
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2023-04-12 00:00:00 UTC
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Why American Airlines Stock Went Into a Tailspin Today
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-stock-went-into-a-tailspin-today
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nan
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What happened
Shares of American Airlines Group (NASDAQ: AAL) crashed 9.4% through 11 a.m. ET on Wednesday after the company filed a first-quarter investor relations update with the Securities and Exchange Commission (SEC) that had both good news and bad news for investors.
So what
Good news first: In Q1, American Airlines flew 65 billion "total available seat miles" (if you multiply all the seats on all the airplanes it has by the number of miles on all the flights American flew in the quarter, the result is 65 billion). That number was up 9.2% year over year, and slightly ahead of management's own forecast.
Even better, American Airlines charged a lot of money for these seats, and its "total revenue per available seat miles" soared 25.5% -- nailing the midpoint of previous guidance. Similarly, the company says its adjusted operating profit margin for the quarter was exactly in the middle of guidance: 3.5%.
But now here's the bad news: After crunching all those numbers, American Airlines concluded that this quarter's earnings will range from $0.01 to $0.05 per share. And that's a lot less than the $0.07 per share in adjusted profit that Wall Street was expecting.
Now what
So long story short, American Airlines just warned investors that it's going to miss analyst targets when it officially reports Q1 earnings on April 19 -- and investors aren't happy to hear that. Missing earnings in Q1 is going to make it harder for the company to hit forecast earnings of $1.86 per share this year.
But here's the thing that long term investors in this airline stock should be focusing on:
Earning $1.86 in profit this year would mean American Airlines stock is valued at a cheap 7 times current year earnings. But even if American Airlines doesn't earn quite that much -- say it earns only $1.50, 20% less than forecast -- the stock would still look incredibly cheap at a P/E of less than 9, especially given that, according to forecasts from S&P Global Market Intelligence, American Airlines is on course to grow those earnings four times in the next four years.
If you ask me, today's sell-off in American Airlines stock is kind of looking like a good opportunity to buy.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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What happened Shares of American Airlines Group (NASDAQ: AAL) crashed 9.4% through 11 a.m. But now here's the bad news: After crunching all those numbers, American Airlines concluded that this quarter's earnings will range from $0.01 to $0.05 per share. If you ask me, today's sell-off in American Airlines stock is kind of looking like a good opportunity to buy.
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What happened Shares of American Airlines Group (NASDAQ: AAL) crashed 9.4% through 11 a.m. So what Good news first: In Q1, American Airlines flew 65 billion "total available seat miles" (if you multiply all the seats on all the airplanes it has by the number of miles on all the flights American flew in the quarter, the result is 65 billion). * They just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them!
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What happened Shares of American Airlines Group (NASDAQ: AAL) crashed 9.4% through 11 a.m. So what Good news first: In Q1, American Airlines flew 65 billion "total available seat miles" (if you multiply all the seats on all the airplanes it has by the number of miles on all the flights American flew in the quarter, the result is 65 billion). But here's the thing that long term investors in this airline stock should be focusing on: Earning $1.86 in profit this year would mean American Airlines stock is valued at a cheap 7 times current year earnings.
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What happened Shares of American Airlines Group (NASDAQ: AAL) crashed 9.4% through 11 a.m. But now here's the bad news: After crunching all those numbers, American Airlines concluded that this quarter's earnings will range from $0.01 to $0.05 per share. But even if American Airlines doesn't earn quite that much -- say it earns only $1.50, 20% less than forecast -- the stock would still look incredibly cheap at a P/E of less than 9, especially given that, according to forecasts from S&P Global Market Intelligence, American Airlines is on course to grow those earnings four times in the next four years.
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2717.0
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2023-04-12 00:00:00 UTC
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4 Sector ETFs & Stocks That Show Promise After March Jobs Data
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https://www.nasdaq.com/articles/4-sector-etfs-stocks-that-show-promise-after-march-jobs-data
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The United States economy added 236,000 jobs in March, the least since December of 2020, and compared to forecasts of 239,000, after unusually mild weather and seasonal factors led to strong jobs gain in the first two months of the year, per tradingeconomics.
The unemployment rate in the United States slipped to 3.5% in March 2023, against expectations of 3.6%.The number of unemployed people decreased by 97 thousand to 5.839 million and employment levels rose by 577 thousand to 160.892 million.
In March, average hourly earnings for all employees on private nonfarm payrolls increased by 9 cents, or 0.3%, to $33.18. Over the past 12 months, average hourly earnings have increased by 4.2%. In March, average hourly earnings of private-sector production and nonsupervisory employees rose by 9 cents, or 0.3% to $28.50. For 2023, the labor market is set to remain tight but job growth will likely slow further.
Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the March jobs data.
Leisure
Employment in leisure and hospitality rose by 72,000. However, leisure and hospitality added an average of 95,000 over the past six months. Average job growth was less than the average gain of 79,000 jobs per month in 2022 and 196,000 jobs per month in 2021. Employment in the industry remains below its pre-pandemic February 2020 level by 2.2%. The data makes Invesco Dynamic Leisure and Entertainment ETF PEJ a timely investment.
As far as the stock pick is concerned, investors may play Zacks Rank #1 (Strong Buy) Hilton Grand Vacations HGV. It is a division of Hilton Worldwide, is engaged in hospitality business. It markets and operates vacation ownership resorts.
Healthcare
Employment in the healthcare industry increased by 34,000 in March. Job gains occurred in home health care services (+15,000) and hospitals (+11,000). Employment continued to increase in nursing and residential care facilities (+8,000). Job growth in health care averaged 54,000 per month in the past six months while the same averaged 49,000 per month in 2022 and 9,000 per month in 2021.
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.
Transportation
Employment in transportation and warehousing was decent in March (+10,000). Over the month, job gains continued in Couriers and messengers (+7,000) and air transportation (+6,000). Employment in transportation and warehousing has been more-or-less same in recent months.
SPDR S&P Transportation ETF XTN has a Zacks Rank #2 with a High risk outlook. As far as stock pick is concerned, American Airlines AAL, which carries a Zacks Rank #1 (Strong Buy) is woth a look.
Retail – Department Stores
Employment in retail trade was downbeat in March (-15,000). However, job gains in department stores (+15,000) deserve a special mention as job losses were rampant in building material and garden equipment and supplies dealers (-9,000) and in furniture, home furnishings, electronics, and appliance retailers (-9,000). SPDR S&P Retail ETF XRT outlook deserves a look.
As far as stock is concerned, investors can take a look at Zacks Rank #1 The Kroger Co. KR. The stock operates in the thin-margin grocery industry, has been undergoing a complete makeover, not only with respect to products but also in terms of the way consumers prefer shopping grocery.
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The Kroger Co. (KR) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Health Care Select Sector SPDR ETF (XLV): ETF Research Reports
SPDR S&P Retail ETF (XRT): ETF Research Reports
Invesco Dynamic Leisure and Entertainment ETF (PEJ): ETF Research Reports
SPDR S&P Transportation ETF (XTN): ETF Research Reports
Hilton Grand Vacations Inc. (HGV) : 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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As far as stock pick is concerned, American Airlines AAL, which carries a Zacks Rank #1 (Strong Buy) is woth a look. Click to get this free report The Kroger Co. (KR) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Health Care Select Sector SPDR ETF (XLV): ETF Research Reports SPDR S&P Retail ETF (XRT): ETF Research Reports Invesco Dynamic Leisure and Entertainment ETF (PEJ): ETF Research Reports SPDR S&P Transportation ETF (XTN): ETF Research Reports Hilton Grand Vacations Inc. (HGV) : Free Stock Analysis Report To read this article on Zacks.com click here. As far as the stock pick is concerned, investors may play Zacks Rank #1 (Strong Buy) Hilton Grand Vacations HGV.
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As far as stock pick is concerned, American Airlines AAL, which carries a Zacks Rank #1 (Strong Buy) is woth a look. Click to get this free report The Kroger Co. (KR) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Health Care Select Sector SPDR ETF (XLV): ETF Research Reports SPDR S&P Retail ETF (XRT): ETF Research Reports Invesco Dynamic Leisure and Entertainment ETF (PEJ): ETF Research Reports SPDR S&P Transportation ETF (XTN): ETF Research Reports Hilton Grand Vacations Inc. (HGV) : Free Stock Analysis Report To read this article on Zacks.com click here. As far as the stock pick is concerned, investors may play Zacks Rank #1 (Strong Buy) Hilton Grand Vacations HGV.
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Click to get this free report The Kroger Co. (KR) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Health Care Select Sector SPDR ETF (XLV): ETF Research Reports SPDR S&P Retail ETF (XRT): ETF Research Reports Invesco Dynamic Leisure and Entertainment ETF (PEJ): ETF Research Reports SPDR S&P Transportation ETF (XTN): ETF Research Reports Hilton Grand Vacations Inc. (HGV) : Free Stock Analysis Report To read this article on Zacks.com click here. As far as stock pick is concerned, American Airlines AAL, which carries a Zacks Rank #1 (Strong Buy) is woth a look. Average job growth was less than the average gain of 79,000 jobs per month in 2022 and 196,000 jobs per month in 2021.
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Click to get this free report The Kroger Co. (KR) : Free Stock Analysis Report HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Health Care Select Sector SPDR ETF (XLV): ETF Research Reports SPDR S&P Retail ETF (XRT): ETF Research Reports Invesco Dynamic Leisure and Entertainment ETF (PEJ): ETF Research Reports SPDR S&P Transportation ETF (XTN): ETF Research Reports Hilton Grand Vacations Inc. (HGV) : Free Stock Analysis Report To read this article on Zacks.com click here. As far as stock pick is concerned, American Airlines AAL, which carries a Zacks Rank #1 (Strong Buy) is woth a look. However, leisure and hospitality added an average of 95,000 over the past six months.
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2718.0
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2023-04-12 00:00:00 UTC
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Why Investors Are Hating These 2 Nasdaq Stocks Wednesday
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https://www.nasdaq.com/articles/why-investors-are-hating-these-2-nasdaq-stocks-wednesday
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2023 has been a good year for the Nasdaq Composite (NASDAQINDEX: ^IXIC) so far, with the index having recovered a significant portion of its 2022 losses. However, it still has a long way to go before it can reach all-time highs once again. Unfortunately, the Nasdaq wasn't able to hold onto early gains on Wednesday, losing about a third of a percent shortly before noon ET.
A couple of Nasdaq stocks saw particularly sharp declines Wednesday morning that stemmed from bad news in their respective businesses. American Airlines Group (NASDAQ: AAL) warned that its first-quarter financial results likely wouldn't be as strong as most had hoped, while stock analysts noted some negative trends for connected fitness equipment provider Peloton Interactive (NASDAQ: PTON) that weighed heavily on the stock.
American Airlines loses altitude
Shares of American Airlines Group were down 9% at midday. The airline posted an update on its first-quarter financial results that compared reasonably well to its previous expectations but nevertheless left investors wanting more.
American said that it flew 65 billion total available seat miles during the first quarter of 2023, up 9.2% year over year. Total revenue per available seat mile rose 25.5% from year-ago levels, and cost per available seat mile excluding fuel was lower by 1.5%, showing the impacts of American's cost-cutting efforts. As a result, it believes it earned between $0.01 and $0.05 per share on an adjusted basis, which was slightly better than the breakeven performance that the airline had expected.
All of those figures were at or above the midpoint of American's previous guidance, so the stock's drop might not seem to make sense. However, Wall Street analysts had already expected American to do better than what its previous projections had suggested. In fact, they were looking for $0.07 per share on average from the airline in the first quarter, so even what appeared to be a beat fell short of what many were hoping to see.
Airlines have been in financial straits for years due to the huge disruptions of the COVID-19 pandemic, but strong travel trends have been a contributing factor to their recovery. Nevertheless, American and other airline stocks haven't performed all that well, and today's drop heading into earnings season doesn't bode well for the industry.
Peloton sees traffic slow
Meanwhile, shares of Peloton Interactive were also weak, down 9%. After having suffered numerous challenges, it appears that the maker of interactive exercise bikes and treadmills could face another slowdown in its core business.
Analysts at Morgan Stanley said that Peloton's web traffic fell sharply during its fiscal third quarter compared to the same period last year. With promotional activity having slowed dramatically in an effort to boost margins, Peloton likely saw a 27% drop in web traffic, showing that the business wasn't able to maintain the positive momentum generated during the holiday season.
Moreover, there's a risk of even worse results ahead. If customers choose to give up their subscriptions, they'll typically do so in the months immediately after having started the service. That raises the risk of weaker business metrics, although Morgan Stanley does believe that Peloton will post about 70,000 new subscriptions for the quarter.
Peloton has struggled as pandemic-induced trends to stay at home have given way to a return to gyms and fitness centers. To recover, the fitness equipment maker will have to find a new way to appeal to consumers, but that isn't evident yet from Peloton's recent actions.
10 stocks we like better than American Airlines Group
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They just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
See the 10 stocks
*Stock Advisor returns as of April 10, 2023
Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Peloton Interactive. 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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American Airlines Group (NASDAQ: AAL) warned that its first-quarter financial results likely wouldn't be as strong as most had hoped, while stock analysts noted some negative trends for connected fitness equipment provider Peloton Interactive (NASDAQ: PTON) that weighed heavily on the stock. Airlines have been in financial straits for years due to the huge disruptions of the COVID-19 pandemic, but strong travel trends have been a contributing factor to their recovery. After having suffered numerous challenges, it appears that the maker of interactive exercise bikes and treadmills could face another slowdown in its core business.
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American Airlines Group (NASDAQ: AAL) warned that its first-quarter financial results likely wouldn't be as strong as most had hoped, while stock analysts noted some negative trends for connected fitness equipment provider Peloton Interactive (NASDAQ: PTON) that weighed heavily on the stock. American Airlines loses altitude Shares of American Airlines Group were down 9% at midday. Analysts at Morgan Stanley said that Peloton's web traffic fell sharply during its fiscal third quarter compared to the same period last year.
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American Airlines Group (NASDAQ: AAL) warned that its first-quarter financial results likely wouldn't be as strong as most had hoped, while stock analysts noted some negative trends for connected fitness equipment provider Peloton Interactive (NASDAQ: PTON) that weighed heavily on the stock. Nevertheless, American and other airline stocks haven't performed all that well, and today's drop heading into earnings season doesn't bode well for the industry. 10 stocks we like better than American Airlines Group When our analyst team has a stock tip, it can pay to listen.
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American Airlines Group (NASDAQ: AAL) warned that its first-quarter financial results likely wouldn't be as strong as most had hoped, while stock analysts noted some negative trends for connected fitness equipment provider Peloton Interactive (NASDAQ: PTON) that weighed heavily on the stock. American Airlines loses altitude Shares of American Airlines Group were down 9% at midday. American said that it flew 65 billion total available seat miles during the first quarter of 2023, up 9.2% year over year.
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2719.0
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2023-04-12 00:00:00 UTC
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US STOCKS-Wall St rally after inflation data fades; Fed minutes on tap
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https://www.nasdaq.com/articles/us-stocks-wall-st-rally-after-inflation-data-fades-fed-minutes-on-tap
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By Sruthi Shankar and Ankika Biswas
April 12 (Reuters) - U.S. stock indexes gave up most of their gains on Wednesday as investors reassessed the outlook for U.S. monetary policy following inflation data, while focus shifted to minutes from the Federal Reserve's March meeting.
Stock futures rallied close to 1% and Treasury yields slid after data showed U.S. consumer prices barely rose in March as the cost of gasoline declined.
However, the major benchmarks shed gains quickly, briefly turning lower, as investors focused on underlying inflation pressures which rose in line with economists' estimates.
"The initial reaction was overdone in the sense the beat was on the headline number which is not where the Fed is focused, obviously it's the core number that matters" said Michael O'Rourke, chief market strategist at JonesTrading.
"We're still running well above the Fed's 2% inflation target.
Money market participants largely stuck to bets that the U.S. central bank will hike rates by 25 basis points next month, according to CME Group's Fedwatch tool.
Richmond Fed President Thomas Barkin also poured cold water on market optimism after flagging that there was still time before inflation falls back to the Fed's 2% goal. San Francisco Fed President Mary Daly said there was "more work to do" on Fed rate hikes.
The banking turmoil last month and a batch of weak economic data had raised expectations of the Fed ending its aggressive monetary tightening campaign soon amid fears of a recession, but jobs data last week signaled resilience in the labor market.
Major technology and other growth stocks such as Alphabet Inc GOOGL.O, Tesla Inc TSLA.O and Amazon.com Inc AMZN.O gave up early gains and fell between 0.2% and 1.3%.
Among the 11 major S&P sectors, consumer discretionary .SPLRCD was the worst hit, while materials .SPLRC and healthcare .SPXHC were the top gainers.
Investors will now closely monitor the minutes from the U.S. central bank's March policy meeting later in the day for further clues on the trajectory of interest rates.
Investors are also awaiting the first-quarter earnings season, which begins in earnest on Friday with results from three major banks, Citigroup Inc C.N, JPMorgan Chase & Co JPM.N and Wells Fargo & Co WFC.N.
At 12:03 p.m. ET, the Dow Jones Industrial Average .DJI was up 91.94 points, or 0.27%, at 33,776.73, the S&P 500 .SPX was up 8.90 points, or 0.22%, at 4,117.84, and the Nasdaq Composite .IXIC was up 7.99 points, or 0.07%, at 12,039.86.
American Airlines Group Inc AAL.O dropped 8.8% and touched an over three-month low after forecasting a lower-than-expected profit for the first quarter as the carrier battles high fuel costs.
The wider airlines index .SPLRCALI fell 3.7%.
Advancing issues outnumbered decliners by a 1.53-to-1 ratio on the NYSE and 1.08-to-1 ratio on the Nasdaq.
The S&P index recorded 12 new 52-week highs and two new lows, while the Nasdaq recorded 52 new highs and 119 new lows.
US inflation, Fed rates and Marketshttps://tmsnrt.rs/3KTumBW
(Reporting by Sruthi Shankar and Ankika Biswas in Bengaluru; Editing by Shounak Dasgupta)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787))
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 dropped 8.8% and touched an over three-month low after forecasting a lower-than-expected profit for the first quarter as the carrier battles high fuel costs. By Sruthi Shankar and Ankika Biswas April 12 (Reuters) - U.S. stock indexes gave up most of their gains on Wednesday as investors reassessed the outlook for U.S. monetary policy following inflation data, while focus shifted to minutes from the Federal Reserve's March meeting. Stock futures rallied close to 1% and Treasury yields slid after data showed U.S. consumer prices barely rose in March as the cost of gasoline declined.
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American Airlines Group Inc AAL.O dropped 8.8% and touched an over three-month low after forecasting a lower-than-expected profit for the first quarter as the carrier battles high fuel costs. By Sruthi Shankar and Ankika Biswas April 12 (Reuters) - U.S. stock indexes gave up most of their gains on Wednesday as investors reassessed the outlook for U.S. monetary policy following inflation data, while focus shifted to minutes from the Federal Reserve's March meeting. Investors will now closely monitor the minutes from the U.S. central bank's March policy meeting later in the day for further clues on the trajectory of interest rates.
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American Airlines Group Inc AAL.O dropped 8.8% and touched an over three-month low after forecasting a lower-than-expected profit for the first quarter as the carrier battles high fuel costs. By Sruthi Shankar and Ankika Biswas April 12 (Reuters) - U.S. stock indexes gave up most of their gains on Wednesday as investors reassessed the outlook for U.S. monetary policy following inflation data, while focus shifted to minutes from the Federal Reserve's March meeting. The banking turmoil last month and a batch of weak economic data had raised expectations of the Fed ending its aggressive monetary tightening campaign soon amid fears of a recession, but jobs data last week signaled resilience in the labor market.
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American Airlines Group Inc AAL.O dropped 8.8% and touched an over three-month low after forecasting a lower-than-expected profit for the first quarter as the carrier battles high fuel costs. By Sruthi Shankar and Ankika Biswas April 12 (Reuters) - U.S. stock indexes gave up most of their gains on Wednesday as investors reassessed the outlook for U.S. monetary policy following inflation data, while focus shifted to minutes from the Federal Reserve's March meeting. Money market participants largely stuck to bets that the U.S. central bank will hike rates by 25 basis points next month, according to CME Group's Fedwatch tool.
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2720.0
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2023-04-12 00:00:00 UTC
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US STOCKS-Wall Street closes lower after Fed minutes, inflation data
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https://www.nasdaq.com/articles/us-stocks-wall-street-closes-lower-after-fed-minutes-inflation-data-0
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By Stephen Culp
NEW YORK, April 12 (Reuters) - U.S. stocks ended lower on Wednesday after minutes from the Federal Reserve's March policy meeting revealed concern among several members of the Federal Open Markets Committee (FOMC) regarding the regional bank liquidity crisis.
The minutes followed a cooler-than-expected inflation report which belied stickier underlying data and cemented the likelihood of another policy rate hike when the Fed convenes next month.
All three major U.S. stock indexes seesawed throughout the session to close in negative territory.
"The minutes were clear that there's ongoing Fed concern with respect to the banking crisis as well as elevated prices," said Greg Bassuk, chief executive officer of AXS Investments in New York.
The indexes started gyrating as market participants parsed the Labor Department's Consumer Price Index (CPI).
That report, on prices urban consumers pay for a basket of goods and services, came in below analysts' expectations, suggesting that the Fed's efforts to tame inflation is taking effect.
However, core CPI - which strips out volatile food and energy items - hit the consensus bull's eye, and remains well above the Fed's average annual 2% target rate.
"This week is an inflection point as investors are searching for surer footing in advance of corporate earnings and the PPI (producer prices) report coming out tomorrow," Bassuk said.
"(Economic) data has been very mixed so investors are overacting to any positive or negative hint of Fed rate hike policy. Volatility will continue, investors will have to buckle their seatbelts. There's so much going on now causing uncertainty for both Wall Street and Main Street."
At last glance, financial markets have priced in a 70% likelihood of another 25 basis point interest rate hike at the conclusion of the FOMC's policy meeting next month.
The next market-moving catalyst is likely to be first-quarter earnings season, which kicks off on Friday with results from three big banks - Citigroup Inc C.N, JPMorgan Chase & Co JPM.N and Wells Fargo & Co WFC.N.
Analysts now expect aggregate first-quarter S&P 500 earnings down 5.2% year-on-year, a stark reversal from the 1.4% annual growth seen at the beginning of the quarter.
The Dow Jones Industrial Average .DJIfell 38.29 points, or 0.11%, to 33,646.5; the S&P 500 .SPXlost 16.99 points, or 0.41%, at 4,091.95; and the Nasdaq Composite .IXICdropped 102.54 points, or 0.85%, to 11,929.34.
Among the 11 major sectors of the S&P 500, seven ended in negative territory, with consumer discretionary .SPLRCD suffering the largest percentage loss. Industrials .SPLRCI led the gainers.
Declining issues outnumbered advancers on the NYSE by a 1.08-to-1 ratio; on Nasdaq, a 1.69-to-1 ratio favored decliners.
The S&P 500 posted 12 new 52-week highs and two new lows; the Nasdaq Composite recorded 64 new highs and 187 new lows.
Volume on U.S. exchanges was 10.40 billion shares, compared with the 11.78 billion average over the last 20 trading days.
US inflation, Fed rates and Marketshttps://tmsnrt.rs/3KTumBW
Inflationhttps://tmsnrt.rs/3MGqKVc
(Reporting by Stephen Culp; Additional reporting by Sruthi Shankar, Ankika Biswas in Bengaluru and Richard Chang)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
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 minutes were clear that there's ongoing Fed concern with respect to the banking crisis as well as elevated prices," said Greg Bassuk, chief executive officer of AXS Investments in New York. However, core CPI - which strips out volatile food and energy items - hit the consensus bull's eye, and remains well above the Fed's average annual 2% target rate. "This week is an inflection point as investors are searching for surer footing in advance of corporate earnings and the PPI (producer prices) report coming out tomorrow," Bassuk said.
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The indexes started gyrating as market participants parsed the Labor Department's Consumer Price Index (CPI). "(Economic) data has been very mixed so investors are overacting to any positive or negative hint of Fed rate hike policy. US inflation, Fed rates and Marketshttps://tmsnrt.rs/3KTumBW Inflationhttps://tmsnrt.rs/3MGqKVc (Reporting by Stephen Culp; Additional reporting by Sruthi Shankar, Ankika Biswas in Bengaluru and Richard Chang) ((stephen.culp@thomsonreuters.com; 646-223-6076;)) 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 Stephen Culp NEW YORK, April 12 (Reuters) - U.S. stocks ended lower on Wednesday after minutes from the Federal Reserve's March policy meeting revealed concern among several members of the Federal Open Markets Committee (FOMC) regarding the regional bank liquidity crisis. The Dow Jones Industrial Average .DJIfell 38.29 points, or 0.11%, to 33,646.5; the S&P 500 .SPXlost 16.99 points, or 0.41%, at 4,091.95; and the Nasdaq Composite .IXICdropped 102.54 points, or 0.85%, to 11,929.34. US inflation, Fed rates and Marketshttps://tmsnrt.rs/3KTumBW Inflationhttps://tmsnrt.rs/3MGqKVc (Reporting by Stephen Culp; Additional reporting by Sruthi Shankar, Ankika Biswas in Bengaluru and Richard Chang) ((stephen.culp@thomsonreuters.com; 646-223-6076;)) 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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All three major U.S. stock indexes seesawed throughout the session to close in negative territory. At last glance, financial markets have priced in a 70% likelihood of another 25 basis point interest rate hike at the conclusion of the FOMC's policy meeting next month. The Dow Jones Industrial Average .DJIfell 38.29 points, or 0.11%, to 33,646.5; the S&P 500 .SPXlost 16.99 points, or 0.41%, at 4,091.95; and the Nasdaq Composite .IXICdropped 102.54 points, or 0.85%, to 11,929.34.
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2721.0
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2023-04-12 00:00:00 UTC
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US STOCKS-Wall Street closes lower after Fed minutes, inflation data
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-street-closes-lower-after-fed-minutes-inflation-data
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nan
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By Stephen Culp
NEW YORK, April 12 (Reuters) - U.S. stocks ended lower on Wednesday after minutes from the Federal Reserve's March policy meeting revealed concern among several members of the Federal Open Markets Committee (FOMC) regarding the regional bank liquidity crisis.
The minutes followed a cooler-than-expected inflation report which belied stickier underlying data and cemented the likelihood of another policy rate hike when the Fed convenes next month.
All three major U.S. stock indexes seesawed throughout the session to close in negative territory.
"The minutes were clear that there's ongoing Fed concern with respect to the banking crisis as well as elevated prices," said Greg Bassuk, chief executive officer of AXS Investments in New York.
The indexes started gyrating as market participants parsed the Labor Department's Consumer Price Index (CPI).
That report, on prices urban consumers pay for a basket of goods and services, came in below analysts' expectations, suggesting that the Fed's efforts to tame inflation is taking effect.
However, core CPI - which strips out volatile food and energy items - hit the consensus bull's eye, and remains well above the Fed's average annual 2% target rate.
"This week is an inflection point as investors are searching for surer footing in advance of corporate earnings and the PPI (producer prices) report coming out tomorrow," Bassuk said.
"(Economic) data has been very mixed so investors are overacting to any positive or negative hint of Fed rate hike policy. Volatility will continue, investors will have to buckle their seatbelts. There's so much going on now causing uncertainty for both Wall Street and Main Street."
At last glance, financial markets have priced in a 70% likelihood of another 25 basis point interest rate hike at the conclusion of the FOMC's policy meeting next month.
The next market-moving catalyst is likely to be first-quarter earnings season, which kicks off on Friday with results from three big banks - Citigroup Inc C.N, JPMorgan Chase & Co JPM.N and Wells Fargo & Co WFC.N.
Analysts now expect aggregate first-quarter S&P 500 earnings down 5.2% year-on-year, a stark reversal from the 1.4% annual growth seen at the beginning of the quarter.
According to preliminary data, the S&P 500 .SPX lost 16.66 points, or 0.40%, to end at 4,092.28 points, while the Nasdaq Composite .IXIC lost 100.75 points, or 0.84%, to 11,931.13. The Dow Jones Industrial Average .DJI fell 32.16 points, or 0.10%, to 33,652.63.
American Airlines Group Inc AAL.O slid after it forecast a lower-than-expected first-quarter profit.
US inflation, Fed rates and Marketshttps://tmsnrt.rs/3KTumBW
Inflationhttps://tmsnrt.rs/3MGqKVc
(Reporting by Stephen Culp; Additional reporting by Sruthi Shankar, Ankika Biswas in Bengaluru and Richard Chang)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
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 slid after it forecast a lower-than-expected first-quarter profit. "The minutes were clear that there's ongoing Fed concern with respect to the banking crisis as well as elevated prices," said Greg Bassuk, chief executive officer of AXS Investments in New York. However, core CPI - which strips out volatile food and energy items - hit the consensus bull's eye, and remains well above the Fed's average annual 2% target rate.
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American Airlines Group Inc AAL.O slid after it forecast a lower-than-expected first-quarter profit. The indexes started gyrating as market participants parsed the Labor Department's Consumer Price Index (CPI). According to preliminary data, the S&P 500 .SPX lost 16.66 points, or 0.40%, to end at 4,092.28 points, while the Nasdaq Composite .IXIC lost 100.75 points, or 0.84%, to 11,931.13.
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American Airlines Group Inc AAL.O slid after it forecast a lower-than-expected first-quarter profit. By Stephen Culp NEW YORK, April 12 (Reuters) - U.S. stocks ended lower on Wednesday after minutes from the Federal Reserve's March policy meeting revealed concern among several members of the Federal Open Markets Committee (FOMC) regarding the regional bank liquidity crisis. The minutes followed a cooler-than-expected inflation report which belied stickier underlying data and cemented the likelihood of another policy rate hike when the Fed convenes next month.
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American Airlines Group Inc AAL.O slid after it forecast a lower-than-expected first-quarter profit. By Stephen Culp NEW YORK, April 12 (Reuters) - U.S. stocks ended lower on Wednesday after minutes from the Federal Reserve's March policy meeting revealed concern among several members of the Federal Open Markets Committee (FOMC) regarding the regional bank liquidity crisis. All three major U.S. stock indexes seesawed throughout the session to close in negative territory.
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2722.0
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2023-04-12 00:00:00 UTC
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Noteworthy Wednesday Option Activity: KMX, AAL, ABBV
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AAL
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-kmx-aal-abbv
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Carmax Inc. (Symbol: KMX), where a total volume of 41,667 contracts has been traded thus far today, a contract volume which is representative of approximately 4.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 135.9% of KMX's average daily trading volume over the past month, of 3.1 million shares. Especially high volume was seen for the $55 strike put option expiring July 21, 2023, with 2,994 contracts trading so far today, representing approximately 299,400 underlying shares of KMX. Below is a chart showing KMX's trailing twelve month trading history, with the $55 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) options are showing a volume of 205,884 contracts thus far today. That number of contracts represents approximately 20.6 million underlying shares, working out to a sizeable 99% of AAL's average daily trading volume over the past month, of 20.8 million shares. Particularly high volume was seen for the $14 strike call option expiring May 19, 2023, with 10,677 contracts trading so far today, representing approximately 1.1 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $14 strike highlighted in orange:
And AbbVie Inc (Symbol: ABBV) options are showing a volume of 35,299 contracts thus far today. That number of contracts represents approximately 3.5 million underlying shares, working out to a sizeable 54% of ABBV's average daily trading volume over the past month, of 6.5 million shares. Especially high volume was seen for the $165 strike call option expiring April 14, 2023, with 23,565 contracts trading so far today, representing approximately 2.4 million underlying shares of ABBV. Below is a chart showing ABBV's trailing twelve month trading history, with the $165 strike highlighted in orange:
For the various different available expirations for KMX options, AAL options, or ABBV options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
NOK Stock Predictions
VMGA shares outstanding history
ETFs Holding MIND
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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Particularly high volume was seen for the $14 strike call option expiring May 19, 2023, with 10,677 contracts trading so far today, representing approximately 1.1 million underlying shares of AAL. Below is a chart showing KMX's trailing twelve month trading history, with the $55 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 205,884 contracts thus far today. That number of contracts represents approximately 20.6 million underlying shares, working out to a sizeable 99% of AAL's average daily trading volume over the past month, of 20.8 million shares.
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That number of contracts represents approximately 20.6 million underlying shares, working out to a sizeable 99% of AAL's average daily trading volume over the past month, of 20.8 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $14 strike highlighted in orange: And AbbVie Inc (Symbol: ABBV) options are showing a volume of 35,299 contracts thus far today. Below is a chart showing KMX's trailing twelve month trading history, with the $55 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 205,884 contracts thus far today.
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That number of contracts represents approximately 20.6 million underlying shares, working out to a sizeable 99% of AAL's average daily trading volume over the past month, of 20.8 million shares. Below is a chart showing KMX's trailing twelve month trading history, with the $55 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 205,884 contracts thus far today. Particularly high volume was seen for the $14 strike call option expiring May 19, 2023, with 10,677 contracts trading so far today, representing approximately 1.1 million underlying shares of AAL.
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Below is a chart showing ABBV's trailing twelve month trading history, with the $165 strike highlighted in orange: For the various different available expirations for KMX options, AAL options, or ABBV options, visit StockOptionsChannel.com. Below is a chart showing KMX's trailing twelve month trading history, with the $55 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 205,884 contracts thus far today. That number of contracts represents approximately 20.6 million underlying shares, working out to a sizeable 99% of AAL's average daily trading volume over the past month, of 20.8 million shares.
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2723.0
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2023-04-12 00:00:00 UTC
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American Airlines forecasts lower-than-expected quarterly profit
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AAL
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https://www.nasdaq.com/articles/american-airlines-forecasts-lower-than-expected-quarterly-profit
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Compares with estimates, adds share price
April 12 (Reuters) - American Airlines Group Inc AAL.O on Wednesday forecast a lower-than-expected profit for the first quarter as the carrier battles high fuel costs.
On an adjusted basis, the company expects first-quarter profit between $0.01 per share and $0.05 per share. Analysts had expected a profit of $0.06 per share, according to Refinitiv estimates.
American Airlines' shares fell 1.6% to $14.08 before the bell.
(Reporting by Aishwarya Nair in Bengaluru; Editing by Shounak Dasgupta)
((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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Compares with estimates, adds share price April 12 (Reuters) - American Airlines Group Inc AAL.O on Wednesday forecast a lower-than-expected profit for the first quarter as the carrier battles high fuel costs. Analysts had expected a profit of $0.06 per share, according to Refinitiv estimates. (Reporting by Aishwarya Nair in Bengaluru; Editing by Shounak Dasgupta) ((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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Compares with estimates, adds share price April 12 (Reuters) - American Airlines Group Inc AAL.O on Wednesday forecast a lower-than-expected profit for the first quarter as the carrier battles high fuel costs. On an adjusted basis, the company expects first-quarter profit between $0.01 per share and $0.05 per share. American Airlines' shares fell 1.6% to $14.08 before the bell.
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Compares with estimates, adds share price April 12 (Reuters) - American Airlines Group Inc AAL.O on Wednesday forecast a lower-than-expected profit for the first quarter as the carrier battles high fuel costs. On an adjusted basis, the company expects first-quarter profit between $0.01 per share and $0.05 per share. (Reporting by Aishwarya Nair in Bengaluru; Editing by Shounak Dasgupta) ((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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Compares with estimates, adds share price April 12 (Reuters) - American Airlines Group Inc AAL.O on Wednesday forecast a lower-than-expected profit for the first quarter as the carrier battles high fuel costs. On an adjusted basis, the company expects first-quarter profit between $0.01 per share and $0.05 per share. Analysts had expected a profit of $0.06 per share, according to Refinitiv estimates.
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2724.0
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2023-04-12 00:00:00 UTC
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US STOCKS-Wall St gains after Fed minutes, inflation data
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-st-gains-after-fed-minutes-inflation-data
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By Stephen Culp
NEW YORK, April 12 (Reuters) - The S&P 500 .SPX gained ground on Wednesday after minutes from the Federal Reserve's March policy meeting revealed several voting members of the Federal Open Markets Committee (FOMC) considered a pause in interest rate hikes amid the regional bank liquidity crisis.
The minutes followed a cooler-than-expected inflation report which belied stickier underlying data and cemented the likelihood of another policy rate hike when the Fed convenes next month.
"The Fed is a consensus driven institution," said Zach Hill, head of portfolio management at Horizon Investments in Charlotte, North Carolina. "The market has been very eager to trade that peak policy Fed behavior - the pause and pivot - and the Fed is not communicating that at all."
The major indexes seesawed as market participants parsed the Labor Department's Consumer Price Index (CPI).
That report, on prices urban consumers pay for a basket of goods and services, came in below analysts' expectations, suggesting that the Fed's efforts to tame inflation is taking effect.
However, core CPI - which strips out volatile food and energy items - hit the consensus bull's eye, and remains well above the Fed's average annual 2% target rate.
"We saw progress on headline inflation and people started digging in and the initial optimism reversed," Hill added. "The core numbers have seen improvement but they’re well above where they need to be."
Earlier in the session Richmond Fed President Tom Barkin underscored that reality, remarking that inflation has a long way to go before approaching that target.
At last glance, financial markets have priced in a 71% likelihood of another 25 basis point interest rate hike at the conclusion of the FOMC's policy meeting next month, and a 29% probability the Fed funds target rate will remain at 4.75% to 5.00%.
The next market-moving catalyst is likely to be first-quarter earnings season, which kicks off on Friday with results from three big banks - Citigroup Inc C.N, JPMorgan Chase & Co JPM.N and Wells Fargo & Co WFC.N.
Analysts now expect aggregate first-quarter S&P 500 earnings down 5.2% year-on-year, a stark reversal from the 1.4% annual growth seen at the beginning of the quarter.
At 2:06 p.m. ET, the Dow Jones Industrial Average .DJI rose 172.28 points, or 0.51%, to 33,857.07, the S&P 500 .SPX gained 14.01 points, or 0.34%, at 4,122.95 and the Nasdaq Composite .IXIC added 5.68 points, or 0.05%, at 12,037.56.
Among the 11 sectors of the S&P 500, industrials .SPLRCI were enjoying the largest percentage gain, while consumer staples .SPLRCS and consumer discretionary .SPLRCD were both in the red.
American Airlines Group Inc AAL.O slid 9.1% after it forecast a lower-than-expected first-quarter profit.
Advancing issues outnumbered decliners on the NYSE by a 1.80-to-1 ratio; on Nasdaq, a 1.04-to-1 ratio favored decliners.
The S&P 500 posted 12 new 52-week highs and two new lows; the Nasdaq Composite recorded 61 new highs and 143 new lows.
US inflation, Fed rates and Marketshttps://tmsnrt.rs/3KTumBW
(Reporting by Stephen Culp; Additional reporting by Sruthi Shankar, Ankika Biswas in Bengaluru and Richard Chang)
((stephen.culp@thomsonreuters.com; 646-223-6076;))
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 slid 9.1% after it forecast a lower-than-expected first-quarter profit. The minutes followed a cooler-than-expected inflation report which belied stickier underlying data and cemented the likelihood of another policy rate hike when the Fed convenes next month. That report, on prices urban consumers pay for a basket of goods and services, came in below analysts' expectations, suggesting that the Fed's efforts to tame inflation is taking effect.
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American Airlines Group Inc AAL.O slid 9.1% after it forecast a lower-than-expected first-quarter profit. By Stephen Culp NEW YORK, April 12 (Reuters) - The S&P 500 .SPX gained ground on Wednesday after minutes from the Federal Reserve's March policy meeting revealed several voting members of the Federal Open Markets Committee (FOMC) considered a pause in interest rate hikes amid the regional bank liquidity crisis. The major indexes seesawed as market participants parsed the Labor Department's Consumer Price Index (CPI).
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American Airlines Group Inc AAL.O slid 9.1% after it forecast a lower-than-expected first-quarter profit. By Stephen Culp NEW YORK, April 12 (Reuters) - The S&P 500 .SPX gained ground on Wednesday after minutes from the Federal Reserve's March policy meeting revealed several voting members of the Federal Open Markets Committee (FOMC) considered a pause in interest rate hikes amid the regional bank liquidity crisis. At last glance, financial markets have priced in a 71% likelihood of another 25 basis point interest rate hike at the conclusion of the FOMC's policy meeting next month, and a 29% probability the Fed funds target rate will remain at 4.75% to 5.00%.
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American Airlines Group Inc AAL.O slid 9.1% after it forecast a lower-than-expected first-quarter profit. However, core CPI - which strips out volatile food and energy items - hit the consensus bull's eye, and remains well above the Fed's average annual 2% target rate. At last glance, financial markets have priced in a 71% likelihood of another 25 basis point interest rate hike at the conclusion of the FOMC's policy meeting next month, and a 29% probability the Fed funds target rate will remain at 4.75% to 5.00%.
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2725.0
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2023-04-12 00:00:00 UTC
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Pre-Market Most Active for Apr 12, 2023 : TQQQ, SQQQ, AAL, PCG, TSLA, AMC, HKD, QQQ, AMZN, CVS, TRTN, ZTS
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-apr-12-2023-%3A-tqqq-sqqq-aal-pcg-tsla-amc-hkd-qqq-amzn-cvs-trtn
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The NASDAQ 100 Pre-Market Indicator is up 121.67 to 13,085.82. The total Pre-Market volume is currently 42,673,226 shares traded.
The following are the most active stocks for the pre-market session:
ProShares UltraPro QQQ (TQQQ) is -0.04 at $26.80, with 2,322,150 shares traded. This represents a 66.46% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is +0.1499 at $31.03, with 1,624,129 shares traded. This represents a 6.34% increase from its 52 Week Low.
American Airlines Group, Inc. (AAL) is -0.41 at $13.91, with 1,030,541 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023. The consensus EPS forecast is $0.03. AAL's current last sale is 92.73% of the target price of $15.
Pacific Gas & Electric Co. (PCG) is -0.42 at $16.40, with 986,333 shares traded. PCG's current last sale is 93.71% of the target price of $17.5.
Tesla, Inc. (TSLA) is -0.04 at $186.75, with 974,271 shares traded.TSLA is scheduled to provide an earnings report on 4/19/2023, for the fiscal quarter ending Mar2023. The consensus earnings per share forecast is 0.75 per share, which represents a 95 percent increase over the EPS one Year Ago
AMC Entertainment Holdings, Inc. (AMC) is +0.11 at $5.54, with 642,312 shares traded. AMC's current last sale is 307.78% of the target price of $1.8.
AMTD Digital Inc. (HKD) is +0.47 at $8.97, with 572,219 shares traded.
Invesco QQQ Trust, Series 1 (QQQ) is -0.43 at $315.40, with 547,283 shares traded. This represents a 24.05% increase from its 52 Week Low.
Amazon.com, Inc. (AMZN) is -0.1161 at $99.80, with 540,523 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
CVS Health Corporation (CVS) is +0.04 at $76.33, with 483,944 shares traded. As reported by Zacks, the current mean recommendation for CVS is in the "buy range".
Triton International Limited (TRTN) is +19.63 at $82.64, with 334,426 shares traded. TRTN's current last sale is 111.68% of the target price of $74.
Zoetis Inc. (ZTS) is unchanged at $171.21, with 313,743 shares traded. As reported by Zacks, the current mean recommendation for ZTS is in the "buy range".
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 -0.41 at $13.91, with 1,030,541 shares traded. AAL's current last sale is 92.73% of the target price of $15. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023.
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American Airlines Group, Inc. (AAL) is -0.41 at $13.91, with 1,030,541 shares traded. AAL's current last sale is 92.73% of the target price of $15. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2023.
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American Airlines Group, Inc. (AAL) is -0.41 at $13.91, with 1,030,541 shares traded. AAL's current last sale is 92.73% of the target price of $15. The total Pre-Market volume is currently 42,673,226 shares traded.
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AAL's current last sale is 92.73% of the target price of $15. American Airlines Group, Inc. (AAL) is -0.41 at $13.91, with 1,030,541 shares traded. The NASDAQ 100 Pre-Market Indicator is up 121.67 to 13,085.82.
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2726.0
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2023-04-12 00:00:00 UTC
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FOCUS-Delta bets on premium travel as 'shock absorber' for economic downturn
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AAL
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https://www.nasdaq.com/articles/focus-delta-bets-on-premium-travel-as-shock-absorber-for-economic-downturn
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By Rajesh Kumar Singh
CHICAGO, April 12 (Reuters) - Delta Air Lines DAL.N is doubling down on more profitable premium travel as it looks to shore up its defenses against an economic downturn.
Chief Executive Ed Bastian told Reuters the U.S. carrier will have premium seats on every plane it flies starting this summer. Currently, dozens of 50-seat planes, accounting for about 2% of Delta's fleet, don't have those seats.
In all, the Atlanta-based carrier, which reports quarterly earnings on Thursday, said it will offer 15,000 more premium seats a day across its network this year versus the pre-pandemic period. It declined to share more details.
Bastian said Delta wants to attract travelers who are willing to pay for something other than just a seat, helping drive up its profits.
"It also takes us out of the commodity trap, where we're just trying to win this battle based only on price," he said in an interview.
It is betting that spending by affluent leisure customers, who have been flocking to premium cabins, will be less impacted in any potential downturn. Last December, President Glen Hauenstein called them a "great shock absorber" in the face of weak corporate bookings.
Rivals United Airlines UAL.O and American Airlines AAL.O are also chasing premium revenue. United expects to have 53 premium seats per flight in North America by 2026 - up 75% from 2019. American has plans to increase premium seats by 45% on its long-haul flights by 2026.
"Travel at large, not just in terms of air travel, but the entirety of it is holding, if not growing as a percentage of overall GDP," Vasu Raja, American's chief commercial officer said. "It's really striking in this world that we're in where inflation is high."
American and United dont reportthe share of premium seats in their revenue. At Delta, that share of passenger revenue has risen to 38%, up three percentage points from before the pandemic.
Bastian said contribution from premium cabins to Delta's revenue is expected to increase by one to two percentage points each year for the next several years.
By next year, they will account for 30% of seats on Delta's flights, up 2 percentage points from 2019. The mix is set to increase further when Boeing MAX 737-10 planes, which are scheduled for delivery starting in 2025 and will have around 35% premium seats, are part of the fleet.
This growth is coming at the expense of low-fare basic economy seats, which now make up less than 5% of Delta's seats. That opens up avenues for the carrier to grow revenue through non-ticket sources like loyalty credit card fees, checked bags and extra legroom.
Delta has said it is on track to generate more than 60% of company revenue from upscale seats and non-ticket sources next year - up from 53% before the pandemic.
Premium seats, which offer more comfort and upgraded services at airports and in flight, can be in some cases double the price of standard economy fares. They can also be up to seven times more profitable for airlines than any other cabin in the sky, analysts say.
Delta's profits and revenue growth from premium cabins have been outpacing those from low-cost seats since the pandemic, Bastian said. The demand has also been sticky, with more than two-thirds of customers showing intent to repurchase premium seats, its data shows.
The success of this strategy depends on providing reliable on-time operation in terms of arrivals and departures, said Robert Mann, a former airline executive who now runs a consulting firm. "It's kind of a litmus test," he said.
Delta and other carriers faced challenges in running a smooth operation last summer. With flight cancellations and delays causing chaos for customers, the airline was forced to cap flights for the rest of the year.
Despite those stumbles, data from consultancies OAG and Cirium showed Delta as the most punctual U.S. airline last year.
Delta aims to build on that performance, Bastian said. "It doesn't matter if you create a premium product that customers are going to be late or they're going to be canceled on," he said.
CHANGING TRAVEL PATTERNS
The quest for premium revenue has its underpinnings in the post-pandemic travel patterns.
Airline executives say hybrid work arrangements are allowing people to combine business and leisure trips, letting customers with disposable income to travel more.
Hybrid work allows every weekend to be a holiday weekend, United CEO Scott Kirby said late last year.
It's helping carriers fill high-margin seats, which previously used to be booked by corporate travelers. Industry officials and experts see it as a durable trend, helping reduce cyclicality in airline business.
American Airlines, for example, is now generating nearly half of its revenue from customers combining business and leisure trips. These travelers also tend to spend 40% more than a typical business customer, the airline said.
Prior to the pandemic, business travel used to account for as much as 50% of passenger revenue at major U.S. carriers, according to trade group Airlines for America.
"Consumer purchasing power is important," said John Grant, senior analyst at OAG. "But travel and holidays have just become a must have."
United will cut some New York-area, D.C. flights after US waiver
Airlines hope for return to normal after FAA outage snarls U.S. travel
Southwest flight upheaval a 'system failure,' U.S. says
Delta offers pilots hefty pay raises as unions flex bargaining power
U.S. airlines urge FAA to extend 5G upgrade deadline
EXPLAINER-Why U.S. flights were grounded by a FAA system outage
FOCUS-Aviation industry turns to childcare, free iPhones to lure workers
GRAPHIC-Airlines' expenses soarhttps://tmsnrt.rs/406NcLl
(Reporting by Rajesh Kumar Singh, editing by Ben Klayman and Nick Zieminski)
((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rivals United Airlines UAL.O and American Airlines AAL.O are also chasing premium revenue. By Rajesh Kumar Singh CHICAGO, April 12 (Reuters) - Delta Air Lines DAL.N is doubling down on more profitable premium travel as it looks to shore up its defenses against an economic downturn. The success of this strategy depends on providing reliable on-time operation in terms of arrivals and departures, said Robert Mann, a former airline executive who now runs a consulting firm.
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Rivals United Airlines UAL.O and American Airlines AAL.O are also chasing premium revenue. By Rajesh Kumar Singh CHICAGO, April 12 (Reuters) - Delta Air Lines DAL.N is doubling down on more profitable premium travel as it looks to shore up its defenses against an economic downturn. Chief Executive Ed Bastian told Reuters the U.S. carrier will have premium seats on every plane it flies starting this summer.
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Rivals United Airlines UAL.O and American Airlines AAL.O are also chasing premium revenue. Bastian said contribution from premium cabins to Delta's revenue is expected to increase by one to two percentage points each year for the next several years. Delta's profits and revenue growth from premium cabins have been outpacing those from low-cost seats since the pandemic, Bastian said.
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Rivals United Airlines UAL.O and American Airlines AAL.O are also chasing premium revenue. Bastian said contribution from premium cabins to Delta's revenue is expected to increase by one to two percentage points each year for the next several years. Delta's profits and revenue growth from premium cabins have been outpacing those from low-cost seats since the pandemic, Bastian said.
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2727.0
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2023-04-12 00:00:00 UTC
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Wall Street rises as inflation data soothes rate-hike jitters
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AAL
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https://www.nasdaq.com/articles/wall-street-rises-as-inflation-data-soothes-rate-hike-jitters
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nan
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By Sruthi Shankar and Ankika Biswas
April 12 (Reuters) - U.S. stock indexes were higher on Wednesday after data showed consumer prices cooled faster than expected in March, raising hopes that the Federal Reserve could hit pause on its interest rate hiking cycle soon.
The Labor Department data showed headline and core CPI in March rose 0.1% and 0.4%, respectively, on a month-on-month basis. Economists were expecting a rise of 0.2% and 0.4%, respectively.
On a year-over-year basis, the headline number rose 5% against economists' estimates of a 5.2% rise, while the core measure, which strips out volatile food and energy prices, climbed 5.6% in-line with consensus estimates.
"Today's CPI takes some heat off the Fed, for now. Moderating price pressures combined with signs of cooling in the labor market will offer a temporary reprieve to markets," said Ronald Temple, chief market strategist at Lazard.
"While this is good news, it does not mean tightening is over. Core inflation remains far above the Fed's target, and the path to 2% will be bumpy."
Stubbornly high rents kept underlying inflation pressures simmering, likely ensuring that the U.S. central bank will raise interest rates again next month.
Traders mostly stuck to bets that the Fed will hike rates by 25 basis points next month, with Fed fund futures pricing in a 70% chance of such a move.
After the banking turmoil last month, investors were betting that the Fed will soon end its aggressive monetary tightening campaign and also start cutting rates in the back half of the year amid growing concerns of a recession.
Major technology and other growth stocks such as Microsoft Corp MSFT.O, Tesla Inc TSLA.O and Apple Inc AAPL.O edged higher as Treasury yields slipped. US/
Minutes from the U.S. central bank's policy meeting in March will also be watched closely by investors later in the day for further clues on the trajectory of interest rates. The Fed raised rates by 25 bps last month and signaled it was on the verge of pausing further rate hikes.
Investors are also awaiting the first-quarter earnings season, which begins in earnest on Friday with results from three major banks, Citigroup Inc C.N, JPMorgan Chase & Co JPM.N and Wells Fargo & Co WFC.N.
At 9:58 a.m. ET, the Dow Jones Industrial Average .DJI was up 155.96 points, or 0.46%, at 33,840.75, the S&P 500 .SPX was up 13.20 points, or 0.32%, at 4,122.14, and the Nasdaq Composite .IXIC was up 9.36 points, or 0.08%, at 12,041.24.
American Airlines Group Inc AAL.O dropped 7.1% as it forecast a lower-than-expected profit for the first quarter as the carrier battles high fuel costs.
The wider airlines index .SPLRCALI fell nearly 4%.
U.S.-listed shares of Chinese firms Alibaba Group Holding Ltd BABA.N and JD.com Inc JD.O fell almost 4% each as investors weighed rising geopolitical tensions.
Taiwan said on Wednesday it had successfully urged China to drastically narrow its plan to close air space north of the island, averting wider travel disruption in a period of high tension in the region due to China's military exercises.
Advancing issues outnumbered decliners for a 3.36-to-1 ratio on the NYSE and a 1.54-to-1 ratio on the Nasdaq.
The S&P index recorded eight new 52-week highs and no new low, while the Nasdaq recorded 45 new highs and 43 new lows.
US inflation, Fed rates and Marketshttps://tmsnrt.rs/3KTumBW
(Reporting by Sruthi Shankar and Ankika Biswas in Bengaluru; Editing by Shounak Dasgupta)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787))
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 dropped 7.1% as it forecast a lower-than-expected profit for the first quarter as the carrier battles high fuel costs. By Sruthi Shankar and Ankika Biswas April 12 (Reuters) - U.S. stock indexes were higher on Wednesday after data showed consumer prices cooled faster than expected in March, raising hopes that the Federal Reserve could hit pause on its interest rate hiking cycle soon. After the banking turmoil last month, investors were betting that the Fed will soon end its aggressive monetary tightening campaign and also start cutting rates in the back half of the year amid growing concerns of a recession.
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American Airlines Group Inc AAL.O dropped 7.1% as it forecast a lower-than-expected profit for the first quarter as the carrier battles high fuel costs. By Sruthi Shankar and Ankika Biswas April 12 (Reuters) - U.S. stock indexes were higher on Wednesday after data showed consumer prices cooled faster than expected in March, raising hopes that the Federal Reserve could hit pause on its interest rate hiking cycle soon. The Labor Department data showed headline and core CPI in March rose 0.1% and 0.4%, respectively, on a month-on-month basis.
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American Airlines Group Inc AAL.O dropped 7.1% as it forecast a lower-than-expected profit for the first quarter as the carrier battles high fuel costs. By Sruthi Shankar and Ankika Biswas April 12 (Reuters) - U.S. stock indexes were higher on Wednesday after data showed consumer prices cooled faster than expected in March, raising hopes that the Federal Reserve could hit pause on its interest rate hiking cycle soon. Traders mostly stuck to bets that the Fed will hike rates by 25 basis points next month, with Fed fund futures pricing in a 70% chance of such a move.
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American Airlines Group Inc AAL.O dropped 7.1% as it forecast a lower-than-expected profit for the first quarter as the carrier battles high fuel costs. By Sruthi Shankar and Ankika Biswas April 12 (Reuters) - U.S. stock indexes were higher on Wednesday after data showed consumer prices cooled faster than expected in March, raising hopes that the Federal Reserve could hit pause on its interest rate hiking cycle soon. The Labor Department data showed headline and core CPI in March rose 0.1% and 0.4%, respectively, on a month-on-month basis.
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2728.0
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2023-04-12 00:00:00 UTC
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S&P 500 Movers: AAL, FTV
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AAL
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https://www.nasdaq.com/articles/sp-500-movers%3A-aal-ftv
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nan
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nan
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In early trading on Wednesday, shares of Fortive topped the list of the day's best performing components of the S&P 500 index, trading up 2.8%. Year to date, Fortive registers a 4.0% gain.
And the worst performing S&P 500 component thus far on the day is American Airlines Group, trading down 6.5%. American Airlines Group is showing a gain of 5.3% looking at the year to date performance.
Two other components making moves today are United Airlines Holdings, trading down 4.2%, and Raytheon Technologies, trading up 2.4% on the day.
VIDEO: S&P 500 Movers: AAL, FTV
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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VIDEO: S&P 500 Movers: AAL, FTV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing S&P 500 component thus far on the day is American Airlines Group, trading down 6.5%. American Airlines Group is showing a gain of 5.3% looking at the year to date performance.
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VIDEO: S&P 500 Movers: AAL, FTV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Year to date, Fortive registers a 4.0% gain. And the worst performing S&P 500 component thus far on the day is American Airlines Group, trading down 6.5%.
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VIDEO: S&P 500 Movers: AAL, FTV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Wednesday, shares of Fortive topped the list of the day's best performing components of the S&P 500 index, trading up 2.8%. And the worst performing S&P 500 component thus far on the day is American Airlines Group, trading down 6.5%.
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VIDEO: S&P 500 Movers: AAL, FTV The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing S&P 500 component thus far on the day is American Airlines Group, trading down 6.5%. American Airlines Group is showing a gain of 5.3% looking at the year to date performance.
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2729.0
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2023-04-12 00:00:00 UTC
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Wall Street eyes higher open as inflation data eases rate-hike worries
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AAL
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https://www.nasdaq.com/articles/wall-street-eyes-higher-open-as-inflation-data-eases-rate-hike-worries
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nan
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nan
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By Sruthi Shankar and Ankika Biswas
April 12 (Reuters) - Wall Street's main indexes were poised for a higher open on Wednesday as headline consumer prices cooled faster than expected in March, raising hopes that the Federal Reserve could hit pause on its interest rate hiking cycle soon.
The Labor Department data showed headline and core CPI in March rose 0.1% and 0.4%, respectively, on a month-on-month basis. Economists were expecting a rise of 0.2% and 0.4%, respectively.
On a year-over-year basis, the headline number rose 5% against economists' estimates of a 5.2% rise, while the core measure, which strips out volatile food and energy prices, climbed 5.6% in-line with consensus estimates.
"We are finally starting to see the cumulative effects of the relentless rate hikes," said Peter Andersen, founder at Andersen Capital Management.
After a banking turmoil last month, investors are betting that the Fed will soon end its aggressive monetary tightening campaign and also start cutting rates in the back half of the year amid growing concerns of a recession.
Traders now see a 67% chance of a 25-basis point rate hike in May by the Fed, down from 73% before the release of the data.
Major technology and other growth stocks such as Apple Inc AAPL.O, Alphabet Inc GOOGL.O, Tesla Inc TSLA.O and Meta Platforms Inc META.O reversed early losses and jumped between 0.7% and 2.1% in premarket trade, helped by a fall in U.S. Treasury yields.
Minutes from the U.S. central bank's policy meeting in March will also be watched closely by investors later in the day for further clues on the trajectory of interest rates. The Fed raised rates by 25 bps last month and signaled it was on the verge of pausing further rate hikes.
Also in focus will be remarks from Fed officials.
Minneapolis Fed President Neel Kashkari said on Tuesday that allowing inflation to stay high would be even worse for the labor market, while Chicago Fed President Austan Goolsbee said the U.S. central bank should be cautious about raising interest rates in the face of recent banking stress.
Beyond CPI, investors are awaiting the first-quarter earnings season, which begins in earnest on Friday with results from three major banks, Citigroup Inc C.N, JPMorgan Chase & Co JPM.N and Wells Fargo & Co WFC.N.
At 8:43 a.m. ET, Dow e-minis 1YMcv1 were up 220 points, or 0.65%, S&P 500 e-minis EScv1 were up 33 points, or 0.80%, and Nasdaq 100 e-minis NQcv1 were up 130 points, or 0.99%.
Among stocks, American Airlines Group Inc AAL.O dropped 1.9% after forecasting first-quarter earnings below analyst estimates.
U.S.-listed shares of Chinese firms Alibaba Group Holding Ltd BABA.N, Baidu Inc BIDU.O and JD.com Inc JD.O slipped over 1% each as investors weighed rising geopolitical tensions.
Taiwan said on Wednesday it had successfully urged China to drastically cut its plan to close airspace north of the island, averting wider travel disruption in a period of high tension in the region due to China's military exercises.
US inflation, Fed rates and marketshttps://tmsnrt.rs/3zPOzSU
(Reporting by Sruthi Shankar and Ankika Biswas in Bengaluru; Additional reporting by Shashwat Chauhan; Editing by Shounak Dasgupta)
((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787))
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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Among stocks, American Airlines Group Inc AAL.O dropped 1.9% after forecasting first-quarter earnings below analyst estimates. By Sruthi Shankar and Ankika Biswas April 12 (Reuters) - Wall Street's main indexes were poised for a higher open on Wednesday as headline consumer prices cooled faster than expected in March, raising hopes that the Federal Reserve could hit pause on its interest rate hiking cycle soon. After a banking turmoil last month, investors are betting that the Fed will soon end its aggressive monetary tightening campaign and also start cutting rates in the back half of the year amid growing concerns of a recession.
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Among stocks, American Airlines Group Inc AAL.O dropped 1.9% after forecasting first-quarter earnings below analyst estimates. The Labor Department data showed headline and core CPI in March rose 0.1% and 0.4%, respectively, on a month-on-month basis. On a year-over-year basis, the headline number rose 5% against economists' estimates of a 5.2% rise, while the core measure, which strips out volatile food and energy prices, climbed 5.6% in-line with consensus estimates.
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Among stocks, American Airlines Group Inc AAL.O dropped 1.9% after forecasting first-quarter earnings below analyst estimates. By Sruthi Shankar and Ankika Biswas April 12 (Reuters) - Wall Street's main indexes were poised for a higher open on Wednesday as headline consumer prices cooled faster than expected in March, raising hopes that the Federal Reserve could hit pause on its interest rate hiking cycle soon. Minneapolis Fed President Neel Kashkari said on Tuesday that allowing inflation to stay high would be even worse for the labor market, while Chicago Fed President Austan Goolsbee said the U.S. central bank should be cautious about raising interest rates in the face of recent banking stress.
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Among stocks, American Airlines Group Inc AAL.O dropped 1.9% after forecasting first-quarter earnings below analyst estimates. By Sruthi Shankar and Ankika Biswas April 12 (Reuters) - Wall Street's main indexes were poised for a higher open on Wednesday as headline consumer prices cooled faster than expected in March, raising hopes that the Federal Reserve could hit pause on its interest rate hiking cycle soon. Economists were expecting a rise of 0.2% and 0.4%, respectively.
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2730.0
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2023-04-12 00:00:00 UTC
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American Airlines Raises Q1 Earnings Outlook, But Below View; Stocks Down
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AAL
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https://www.nasdaq.com/articles/american-airlines-raises-q1-earnings-outlook-but-below-view-stocks-down
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nan
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nan
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(RTTNews) - American Airlines Group Inc. (AAL) on Wednesday has revised up its first-quarter adjusted earnings outlook while it comes in below analysts' estimates.
Following the news, AAL is trading down by 7.20 percent at $13.28 per share on the Nasdaq.
For the first-quarter, the company now projects adjusted earnings per share or EPS of around $0.01 - $0.05 as against its previous expectation for an approximate breakeven.
On average, 15 analysts polled by Thomson Reuters expect the airline to report EPS of $0.06, for the quarter. Analysts' estimates typically exclude special items.
The Group now projects available seat miles or ASMs to be up around 9.2 percent, versus its previous projection of approximately 8 percent to 10 percent.
First quarter total revenue per available seat mile or TRASM is expected to be up approximately 25.5 percent, at the mid-point of its previous guidance of up 24 percent to 27 percent.
In addition, for the first-quarter, American Airlines expects to register net income per share of -$0.03 to $0.01 per share. Net earnings are projected at -$16 million to $10 million, for the period.
For the first-quarter, the company anticipates reporting operating income of $414 million, whereas adjusted operating profit is projected at $427 million.
Revenue for the quarter is expected at $12.194 billion. Analysts, on average, project the firm to post revenue of $12.21 billion, for the quarter.
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) on Wednesday has revised up its first-quarter adjusted earnings outlook while it comes in below analysts' estimates. Following the news, AAL is trading down by 7.20 percent at $13.28 per share on the Nasdaq. For the first-quarter, the company now projects adjusted earnings per share or EPS of around $0.01 - $0.05 as against its previous expectation for an approximate breakeven.
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(RTTNews) - American Airlines Group Inc. (AAL) on Wednesday has revised up its first-quarter adjusted earnings outlook while it comes in below analysts' estimates. Following the news, AAL is trading down by 7.20 percent at $13.28 per share on the Nasdaq. For the first-quarter, the company now projects adjusted earnings per share or EPS of around $0.01 - $0.05 as against its previous expectation for an approximate breakeven.
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(RTTNews) - American Airlines Group Inc. (AAL) on Wednesday has revised up its first-quarter adjusted earnings outlook while it comes in below analysts' estimates. Following the news, AAL is trading down by 7.20 percent at $13.28 per share on the Nasdaq. For the first-quarter, the company now projects adjusted earnings per share or EPS of around $0.01 - $0.05 as against its previous expectation for an approximate breakeven.
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(RTTNews) - American Airlines Group Inc. (AAL) on Wednesday has revised up its first-quarter adjusted earnings outlook while it comes in below analysts' estimates. Following the news, AAL is trading down by 7.20 percent at $13.28 per share on the Nasdaq. For the first-quarter, the company now projects adjusted earnings per share or EPS of around $0.01 - $0.05 as against its previous expectation for an approximate breakeven.
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2731.0
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2023-04-11 00:00:00 UTC
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Here's Why You Should Retain C.H. Robinson (CHRW) Stock Now
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AAL
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https://www.nasdaq.com/articles/heres-why-you-should-retain-c.h.-robinson-chrw-stock-now
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nan
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nan
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C.H. Robinson Worldwide, Inc. CHRW is benefiting from improved freight market conditions and shareholder-friendly initiatives. Notably, shares of C.H. Robinson have gained 1.7% over the past three months against the 0.1% loss of the industry it belongs to.
Image Source: Zacks Investment Research
How is C.H. Robinson Placed?
We are impressed with C.H. Robinson’s efforts to boost its shareholder value via dividend payouts and shares repurchases are commendable. C.H. Robinson rewarded its shareholders in 2022 through a combination of cash dividends ($285.32 million) and share repurchases ($1,488.28 million). Such shareholder-friendly moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
With improved freight market conditions, C.H. Robinson is benefiting from higher pricing and volumes across most of its service lines. In 2022, the top line improved 6.9% owing to higher pricing in truckload, less-than-truckload and ocean services. Solid segmental growth was also witnessed in 2022. In the North American Surface Transportation segment, total revenues were $15.82 billion (up 9.1% year over year) in 2022. Total revenues in the Global Forwarding segment in 2022 were $6.81 billion, up 1.2% year over year.
On the flip side, an increase in operating expenses poses a threat to C.H. Robinson’s bottom line. In 2022, total operating costs increased 6.4% year over year. Costs are also likely to be high going forward.
C.H. Robinson’s liquidity position is weak. CHRW exited the fourth quarter with cash and cash equivalents of $217.48 million compared with the long-term debt of $920.04 million. This implies that the company does not have sufficient cash to meet its debt obligations.
Zacks Rank & Stocks to Consider
Currently, C.H. Robinson carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Transportation sector can consider Copa Holdings, S.A. CPA and American Airlines AAL. Copa Holdings presently sports a Zacks Rank #1 (Strong Buy) and American Airlines carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings has an expected earnings growth rate of 40.8% for the current year. CPA delivered a trailing four-quarter earnings surprise of 33.35%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 15% over the past 90 days. Shares of CPA have risen 22.7% over the past six months.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 40.5% over the past 90 days. Shares of AAL have gained 14.8% over the past six months.
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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
C.H. Robinson Worldwide, Inc. (CHRW) : 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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Some better-ranked stocks from the Zacks Transportation sector can consider Copa Holdings, S.A. CPA and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
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Robinson Worldwide, Inc. (CHRW) : 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. Some better-ranked stocks from the Zacks Transportation sector can consider Copa Holdings, S.A. CPA and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year.
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Some better-ranked stocks from the Zacks Transportation sector can consider Copa Holdings, S.A. CPA and American Airlines AAL. Robinson Worldwide, Inc. (CHRW) : 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. AAL has an expected earnings growth rate of more than 100% for the current year.
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Some better-ranked stocks from the Zacks Transportation sector can consider Copa Holdings, S.A. CPA and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
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2732.0
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2023-04-11 00:00:00 UTC
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PREVIEW-Elasticity of travel demand in focus as U.S. carriers report earnings
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AAL
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https://www.nasdaq.com/articles/preview-elasticity-of-travel-demand-in-focus-as-u.s.-carriers-report-earnings
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nan
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nan
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By Rajesh Kumar Singh
CHICAGO, April 11 (Reuters) - Major U.S. airlines are expected to reiterate the strength of travel demand when earnings season gets underway later this week.
But with rising interest rates, high inflation, mounting job losses and turmoil in the banking industry increasing the odds of an economic recession, the spotlight will be on the elasticity of consumer demand.
Pent-up travel demand as well as constrained airline capacity due to shortages of aircraft, spare parts, and labor have, thus far, allowed the industry to avoid the fallout from a slowdown in the broader economy.
The question remains how long this travel boom will last.
"The fallout from the recent banking turmoil and rising interest rates does in our view skew risk to the downside," said Christopher Stathoulopoulos, an analyst at Susquehanna Financial Group.
Chief executives of major carriers last month rushed to reassure jittery investors after a profit warning from United Airlines UAL.O stoked worries about the industry's pricing power.
The industry has been leaning on soaring consumer demand to mitigate higher labor and fuel costs with higher fares.
Yet, Delta Air Lines DAL.N, which kicks off the earnings season on Thursday, has said its first-quarter earnings would suffer due to a run-up in operating costs after its new contract deal with pilots. The Atlanta-based carrier is expected to report a profit of 30 cents a share.
Chicago-based United, which is due to report its first-quarter result next week, is tipped to post a loss of 66 cents a share due to higher costs from a potential contract deal with pilots.
Analysts at Moody's Investors Service estimate labor expense for U.S. carriers will increase by 19% this year.
Meanwhile, surprise output cuts by OPEC+ oil producers earlier this month are expected to drive up fuel bills for airlines, hurting their profits.
"The price elasticity of demand over economic cycles will be the ultimate arbiter of the industry's ability to cover increasing costs," Moody's said.
(Reporting by Rajesh Kumar Singh; editing by Jonathan Oatis)
((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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But with rising interest rates, high inflation, mounting job losses and turmoil in the banking industry increasing the odds of an economic recession, the spotlight will be on the elasticity of consumer demand. Pent-up travel demand as well as constrained airline capacity due to shortages of aircraft, spare parts, and labor have, thus far, allowed the industry to avoid the fallout from a slowdown in the broader economy. Chief executives of major carriers last month rushed to reassure jittery investors after a profit warning from United Airlines UAL.O stoked worries about the industry's pricing power.
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By Rajesh Kumar Singh CHICAGO, April 11 (Reuters) - Major U.S. airlines are expected to reiterate the strength of travel demand when earnings season gets underway later this week. The industry has been leaning on soaring consumer demand to mitigate higher labor and fuel costs with higher fares. Chicago-based United, which is due to report its first-quarter result next week, is tipped to post a loss of 66 cents a share due to higher costs from a potential contract deal with pilots.
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By Rajesh Kumar Singh CHICAGO, April 11 (Reuters) - Major U.S. airlines are expected to reiterate the strength of travel demand when earnings season gets underway later this week. Pent-up travel demand as well as constrained airline capacity due to shortages of aircraft, spare parts, and labor have, thus far, allowed the industry to avoid the fallout from a slowdown in the broader economy. Chicago-based United, which is due to report its first-quarter result next week, is tipped to post a loss of 66 cents a share due to higher costs from a potential contract deal with pilots.
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By Rajesh Kumar Singh CHICAGO, April 11 (Reuters) - Major U.S. airlines are expected to reiterate the strength of travel demand when earnings season gets underway later this week. But with rising interest rates, high inflation, mounting job losses and turmoil in the banking industry increasing the odds of an economic recession, the spotlight will be on the elasticity of consumer demand. Chicago-based United, which is due to report its first-quarter result next week, is tipped to post a loss of 66 cents a share due to higher costs from a potential contract deal with pilots.
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2733.0
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2023-04-11 00:00:00 UTC
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JetBlue (JBLU) to Expand Network by Adding Florida Routes
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AAL
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https://www.nasdaq.com/articles/jetblue-jblu-to-expand-network-by-adding-florida-routes
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nan
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nan
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JetBlue Airways JBLU, in coordination with Massachusetts Port Authority (Massport), announced two new routes from Worcester Regional Airport in Massachusetts to attract additional traffic. One of these is a seasonal service from Worcester, MA, to Southwest Florida International Airport in Fort Myers, FL. Flights (non-stop) on this route will be operational from Jan 4, 2024.
Initially, flights will operate twice a week on this route. However, from mid-February till the end of the Red Sox Spring Training, flights will operate daily to meet the anticipated demand swell.
The other route will be operating from Worcester, MA to Orlando Sanford International Airport. Flights to Orlando, which stopped during the pandemic, will resume operation from Jun 15. This will imply that JBLU is the sole airline offering non-stop service between the two cities.
Expressing delight at the route additions, Robin Hayes, the chief executive officer of JetBlue said "We are proud to introduce even more options to connect our Massachusetts customers to the places they want to fly with more nonstop Florida service from Worcester." Once the new routes become operational, JetBlue will offer services to three cities in Florida – Fort Lauderdale, Orlando and Fort Myers – from Worcester.
Driven by the stronger-than-expected revival of air-travel demand, shares of JBLU have gained 9.1% year to date, outperforming its industry’s 5% appreciation.
Image Source: Zacks Investment Research
Given this backdrop, the decision to introduce new routes is extremely prudent. This is likely to boost JBLU’s top line, given the increased demand for additional Florida flights from people in central Massachusetts area.
Zacks Rank & Key Picks
JetBlue currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Airline industry are American Airlines AAL and Copa Holdings, CPA.
American Airlines, currently sporting a Zacks Rank #1 (Strong Buy), is benefiting from the improved air-travel-demand situation. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Driven by soaring demand on healthy bookings, management expects total unit revenues in first-quarter 2023 to be roughly 24-27% higher than first-quarter 2022 levels. Over the past 60 days, the Zacks Consensus Estimate for AAL’s 2023 earnings has been revised 12.5% upward.
Copa Holdings is benefiting from the improvement in air-travel demand. In fourth-quarter 2022, passenger revenues increased 29.5% due to higher yields.
CPA’s focus on its cargo segment is encouraging. In fourth-quarter 2022, cargo and mail revenues grew 69%, owing to higher cargo volumes and yields. Copa Holdings' fleet modernization and cost-management efforts are also commendable.
The above-mentioned tailwinds are likely to continue aiding this Latin American carrier that currently sports a Zacks Rank #1. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 10% upward over 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
JetBlue Airways Corporation (JBLU) : 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.
|
Some better-ranked stocks in the Zacks Airline industry are American Airlines AAL and Copa Holdings, CPA. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. Over the past 60 days, the Zacks Consensus Estimate for AAL’s 2023 earnings has been revised 12.5% upward.
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Some better-ranked stocks in the Zacks Airline industry are American Airlines AAL and Copa Holdings, CPA. Click to get this free report JetBlue Airways Corporation (JBLU) : 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. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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Some better-ranked stocks in the Zacks Airline industry are American Airlines AAL and Copa Holdings, CPA. Click to get this free report JetBlue Airways Corporation (JBLU) : 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. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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Some better-ranked stocks in the Zacks Airline industry are American Airlines AAL and Copa Holdings, CPA. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. Over the past 60 days, the Zacks Consensus Estimate for AAL’s 2023 earnings has been revised 12.5% upward.
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2734.0
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2023-04-11 00:00:00 UTC
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Here's Why You Should Retain Wabtec (WAB) in Your Portfolio
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AAL
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https://www.nasdaq.com/articles/heres-why-you-should-retain-wabtec-wab-in-your-portfolio
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nan
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nan
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Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corp. (WAB) is benefiting from solid growth across its Freight segment. Low debt is another tailwind. However, high operating expenses pose concerns.
Factors Favoring WAB
Wabtec exited the fourth quarter of 2022 with cash and cash equivalents of $541 million, which is above the current debt of $251 million. This indicates that the company has enough cash to meet its current debt obligations.
Freight revenues continue to drive Wabtec’s top-line performance (up 11.2% year over year). Notably, Freight net sales increased 17.1% to $1,669 million. Results were boosted by strength across all product lines, with solid growth in Equipment, Digital Electronics and Services. For 2023, Wabtec expects sales in the range of $8.7-$9 billion.
Key Risk
High operating expenses are hurting Wabtec's bottom line. Evidently, total operating expenses in the fourth quarter of 2022 increased by $17 million to $405 million. The operating ratio (operating expenses as a percentage of revenues) deteriorated 120 basis points from the year-ago quarter’s figure to 17.5%.
Zacks Rank & Key Picks
Wabtec 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, currently sporting a Zacks Rank #1 (Strong Buy), is benefiting from the improved air-travel-demand situation. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. You can see the complete list of today’s Zacks #1 Rank stocks here.
For first-quarter and full-year 2023, AAL’s earnings are expected to register 101.3% and 386% growth, respectively, on a year-over-year basis.
Copa Holdings is also sporting a Zacks Rank #1 at present. We are encouraged by CPA's focus on its cargo segment.
For first-quarter and full-year 2023, CPA’s earnings are expected to register 302.9% and 40.8% growth, respectively, on a year-over-year basis.
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Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
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Westinghouse Air Brake Technologies Corporation (WAB) : 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). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. For first-quarter and full-year 2023, AAL’s earnings are expected to register 101.3% and 386% 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 Westinghouse Air Brake Technologies Corporation (WAB) : 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). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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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 Westinghouse Air Brake Technologies Corporation (WAB) : 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). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and Copa Holdings, S.A. (CPA). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. For first-quarter and full-year 2023, AAL’s earnings are expected to register 101.3% and 386% growth, respectively, on a year-over-year basis.
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2735.0
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2023-04-11 00:00:00 UTC
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American Airlines Group Breaks Above 200-Day Moving Average - Bullish for AAL
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-breaks-above-200-day-moving-average-bullish-for-aal-1
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nan
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In trading on Tuesday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $14.32, changing hands as high as $14.39 per share. American Airlines Group Inc shares are currently trading up about 1.7% on the day. The chart below shows the one year performance of AAL shares, versus its 200 day moving average:
Looking at the chart above, AAL's low point in its 52 week range is $11.6514 per share, with $21.42 as the 52 week high point — that compares with a last trade of $14.39. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
Also see:
SHYD shares outstanding history
Top Ten Hedge Funds Holding MED
WPRT Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $14.32, changing hands as high as $14.39 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $11.6514 per share, with $21.42 as the 52 week high point — that compares with a last trade of $14.39. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed above their 200 day moving average » Also see: SHYD shares outstanding history Top Ten Hedge Funds Holding MED WPRT Videos The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $14.32, changing hands as high as $14.39 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $11.6514 per share, with $21.42 as the 52 week high point — that compares with a last trade of $14.39. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed above their 200 day moving average » Also see: SHYD shares outstanding history Top Ten Hedge Funds Holding MED WPRT Videos The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $14.32, changing hands as high as $14.39 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $11.6514 per share, with $21.42 as the 52 week high point — that compares with a last trade of $14.39. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed above their 200 day moving average » Also see: SHYD shares outstanding history Top Ten Hedge Funds Holding MED WPRT Videos The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In trading on Tuesday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $14.32, changing hands as high as $14.39 per share. The chart below shows the one year performance of AAL shares, versus its 200 day moving average: Looking at the chart above, AAL's low point in its 52 week range is $11.6514 per share, with $21.42 as the 52 week high point — that compares with a last trade of $14.39. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed above their 200 day moving average » Also see: SHYD shares outstanding history Top Ten Hedge Funds Holding MED WPRT Videos The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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2736.0
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2023-04-10 00:00:00 UTC
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Here's Why AZUL Stock Should Continue to be in Your Portfolio
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AAL
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https://www.nasdaq.com/articles/heres-why-azul-stock-should-continue-to-be-in-your-portfolio
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nan
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With growth score of A, Azul S.A. (AZUL) has outperformed its industry by growing 5.2% year-to-date compared to the industry’s 4% growth in the same time frame.
Let’s look at some other factors that make AZUL a stock to be kept intact in portfolios.
Improving air travel demand bodes well for AZUL, and the recently released air traffic data for March gives the same picture. The consolidated figures for revenue passenger kilometers, a measure of air traffic showed an increase of 8.1% compared to the year-ago reported figure. The company’s various codeshare agreements have helped increase international air traffic by 89.7% as compared to the year-ago figure. A 9.4% increase in capacity has resulted in the load factor (% of seats filled by passengers) being at 77.8% for the reported period.
AZUL Price
AZUL price | AZUL Quote
For more efficient revenue management, Azul has recently partnered with FLYR Labs. Through FLYR the company will receive comprehensive data management and pricing capabilities which will in turn help it provide tailored offers to customers.
The company has also made efforts to strengthen its cash generation ability and capital structure. AZUL recently entered into a commercial agreement with the lessor whereby the lessors will reduce the company’s lease payments to get rid of Covid related deferrals and also reduce the gap between the agreed-upon market rate and AZUL’s contractual rates. In exchange, the lessors will be in receipt of tradeable notes with a maturity of 2030 and the company’s equity.
AZUL has been undertaking initiatives to reward its shareholders. The company’s board recently approved a repurchase agreement under which the company can repurchase its 1.3 million shares between Nov 7, 2022, and May 7, 2024. Efforts to modernize its fleet, characterized by fuel efficiency, also bode well for Azul.
AZUL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Some Risks
The bottom line is threatened by escalating fuel prices. The increased prices are mainly due to the demand-supply imbalance.
AZUL’s current ratio of 0.32 for 2022 was lower than the previous year’s reported figure of 0.50. A current ratio of less than 1 implies that a company doesn’t have enough liquid assets to cover its short-term liabilities.
Stocks to Consider
Investors interested in the Zacks Airline industry may also consider the following stocks:
Copa Holdings CPA, sporting a Zacks Rank of 1, is benefiting from the improvement in air travel demand. In fourth-quarter 2022, passenger revenues increased 29.5%, owing to higher yields. CPA’s focus on its cargo segment is encouraging too. In fourth-quarter 2022, cargo and mail revenues grew 69%, owing to higher cargo volumes and yields. Copa Holdings’ fleet modernization and cost-management efforts are commendable. The above-mentioned tailwinds are likely to continue aiding this Latin American carrier. The Zacks Consensus Estimate for current-year earnings has been revised 10% upward over the past 60 days.
American Airlines AAL, having a Zacks Rank #2 (Buy), is seeing a steady recovery in domestic air travel demand. AAL has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for AAL’s current-year earnings has improved 19.1% over the past 60 days. AAL has surpassed the Zacks Consensus Estimate for earnings in three of the past four quarters and missed once.,the average beat being 7.79%.
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Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
AZUL (AZUL) : 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, having a Zacks Rank #2 (Buy), is seeing a steady recovery in domestic air travel demand. AAL has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for AAL’s current-year earnings has improved 19.1% over the past 60 days.
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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 AZUL (AZUL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL, having a Zacks Rank #2 (Buy), is seeing a steady recovery in domestic air travel demand. AAL has an expected earnings growth rate of more than 100% for the current 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 AZUL (AZUL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL, having a Zacks Rank #2 (Buy), is seeing a steady recovery in domestic air travel demand. AAL has an expected earnings growth rate of more than 100% for the current year.
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American Airlines AAL, having a Zacks Rank #2 (Buy), is seeing a steady recovery in domestic air travel demand. AAL has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for AAL’s current-year earnings has improved 19.1% over the past 60 days.
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2737.0
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2023-04-10 00:00:00 UTC
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Here's Why You Should Retain Southwest Airlines (LUV) Now
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AAL
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https://www.nasdaq.com/articles/heres-why-you-should-retain-southwest-airlines-luv-now
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Southwest Airlines Co. (LUV) is benefiting from its rising air-travel demand as well as solid liquidity. However, rising fuel prices is a headwind.
Factors Favoring LUV
Continued recovery in air-travel demand (mainly on the leisure front) bodes well for Southwest Airlines. In the fourth quarter of 2022, air traffic, measured in revenue passenger miles, rose 5.4% year over year to $31.30 billion. Anticipating the trend to continue, Southwest Airlines’ management expects first-quarter 2023 operating revenues to register 21-23% year-over-year growth.
Available seat miles (a measure of capacity) are estimated to improve 10% from the year-ago reported figure. Capacity for full-year 2023 is anticipated to increase in the 15-16% range.
Southwest Airlines' liquidity position raises optimism in the stock. At the end of the fourth quarter, the carrier’s cash and cash equivalents was $9,492 million, higher than the long-term debt (fewer current maturities) of $8,046 million, implying that the company has enough cash to meet its debt obligations.
Key Risk
Escalating fuel prices represent a concern. In fourth-quarter 2022, fuel cost per gallon (inclusive of fuel tax: economic) rose 41.3% to $3.18. For first-quarter 2023, economic fuel costs per gallon are expected to be between $3.10 and $3.20. For full year 2023, economic fuel costs per gallon are estimated in the range of $2.65-$2.75.
Zacks Rank & Key Picks
Southwest Airlines currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Airline industry are American Airlines (AAL) and Copa Holdings, S.A. (CPA).
American Airlines, currently carrying a Zacks Rank #2 (Buy), is benefiting from the improved air-travel-demand situation. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
For first-quarter and full-year 2023, AAL’s earnings are expected to register 100.4% and 332% growth, respectively, on a year-over-year basis.
Copa Holdings sports a Zacks Rank #1 at present. We are encouraged by CPA's focus on its cargo segment.
For first-quarter and full-year 2023, CPA’s earnings are expected to register 302.9% and 40.8% growth, respectively, on a year-over-year basis.
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Southwest Airlines Co. (LUV) : 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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Some better-ranked stocks in the Zacks Airline industry are American Airlines (AAL) and Copa Holdings, S.A. (CPA). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. For first-quarter and full-year 2023, AAL’s earnings are expected to register 100.4% and 332% growth, respectively, on a year-over-year basis.
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Some better-ranked stocks in the Zacks Airline industry are American Airlines (AAL) and Copa Holdings, S.A. (CPA). Click to get this free report Southwest Airlines Co. (LUV) : 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. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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Some better-ranked stocks in the Zacks Airline industry are American Airlines (AAL) and Copa Holdings, S.A. (CPA). Click to get this free report Southwest Airlines Co. (LUV) : 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. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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Some better-ranked stocks in the Zacks Airline industry are American Airlines (AAL) and Copa Holdings, S.A. (CPA). Click to get this free report Southwest Airlines Co. (LUV) : 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. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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2738.0
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2023-04-10 00:00:00 UTC
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Gol Linhas (GOL) Rides on Upbeat Air Traffic Despite Cost Woes
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AAL
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https://www.nasdaq.com/articles/gol-linhas-gol-rides-on-upbeat-air-traffic-despite-cost-woes
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Gol Linhas GOL is benefiting from buoyant air-travel demand (particularly on the leisure front). The company is carrying a Zacks Rank #3 (Hold), currently.
However, escalated fuel costs are limiting the bottom-line growth.
Factors Favoring GOL
The gradual improvement in air-travel demand is a huge boon for Gol Linhas. Owing to this tailwind, the company reported healthy traffic data for March. The number of passengers ferried on Gol flights in March registered a 22.3% year-over-year increase.
Consolidated load factor (% of seats filled by passengers) was 82.3% in March 2023 compared with 29.5% a year ago. Load factor increased as the consolidated traffic growth of 17.2% in the month was more than the capacity expansion (also on a consolidated basis) of 13.3%.
Domestic departures, which accounted for more than 95% of total departures during the month, have grown 17.4% on a year-over-year basis. On the domestic front, the number of seats increased 17.1% in March.
The deal with American Airlines AAL is also a positive. In September 2021, Gol Linhas agreed to expand its commercial deal with AAL through an exclusive code-share agreement for the next three years to meet higher air-travel demand.
As a result of the code-sharing pact, passengers of either carrier can purchase tickets for the connecting flights using one reservation. This is expected to increase the demand for both carriers.
GOL has also acquired domestic airline MAP Transportes Aéreos Ltd, to meet additional air travel demand. The move can be expected to have a positive impact on the company’s top line.
Key Risk
Rising fuel prices due to the prolonged Russia-Ukraine war pose a threat to Gol’s bottom line. The average fuel price per liter increased 43.6% year over year in the fourth quarter of 2022. Primarily due to significant increases in fuel costs, total operating expenses increased 48.8% year over year.
For first-quarter 2023, GOL expects fuel price per liter to be R$5.7. The fuel price per liter is now predicted to be R$5.4 (prior view: R$5.3) for the current year.
An Airline Stock Worth Betting on
A better-ranked stock in the Zacks Airline industry is Copa Holdings CPA.
Copa Holdings currently sports a Zacks Rank #1 (Strong Buy). CPA's focus on its cargo segment is very encouraging. In fourth-quarter 2022, cargo and mail revenues jumped 69% to $27.09 million, owing to higher cargo volumes and yields. You can see the complete list of today’s Zacks #1 Rank stocks here.
For first-quarter and full-year 2023, CPA’s earnings are expected to register 302% and 40.5% growth, respectively, on a year-over-year basis.
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Download Cashing In on Cleaner Energy today, absolutely free.
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
Gol Linhas Aereas Inteligentes S.A. (GOL) : 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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In September 2021, Gol Linhas agreed to expand its commercial deal with AAL through an exclusive code-share agreement for the next three years to meet higher air-travel demand. The deal with American Airlines AAL is also a positive. Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL) : 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.
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Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL) : 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. The deal with American Airlines AAL is also a positive. In September 2021, Gol Linhas agreed to expand its commercial deal with AAL through an exclusive code-share agreement for the next three years to meet higher air-travel demand.
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Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL) : 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. The deal with American Airlines AAL is also a positive. In September 2021, Gol Linhas agreed to expand its commercial deal with AAL through an exclusive code-share agreement for the next three years to meet higher air-travel demand.
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The deal with American Airlines AAL is also a positive. In September 2021, Gol Linhas agreed to expand its commercial deal with AAL through an exclusive code-share agreement for the next three years to meet higher air-travel demand. Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL) : 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.
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2739.0
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2023-04-10 00:00:00 UTC
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The Zacks Analyst Blog Highlights FedEx, American Airlines and Copa Holdings
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-fedex-american-airlines-and-copa-holdings
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For Immediate Release
Chicago, IL – April 10, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: FedEx Corp's FDX, American Airlines AAL and Copa Holdings CPA.
Here are highlights from Thursday’s Analyst Blog:
3 Transportation Stocks to Buy Ahead of Q1 Earnings Season
The Zacks Transportation sector was one of the worst-hit corners during the pandemic. After being battered in 2020 and 2021, with economic activities shrinking drastically, the fortunes of sector participants turned out for the better in 2022. Economic activities started bouncing back following the easing of the pandemic-induced restrictions. The scenario continues to be buoyant in 2023.
Upsides
Within the sector, the airline industry is witnessing increased passengers, with a continued rise in air-travel demand. The bright scenario is highlighted by data provided by the Transportation Security Administration (TSA) with respect to passenger volumes. In the first quarter of 2023 (January-March period), TSA checkpoint numbers revealed that passenger volumes not only surpassed the 2022 levels but also exceeded the 2019 (pre-coronavirus) numbers on many days.
It is hardly surprising that the pace of growth of e-commerce demand has slowed from the levels witnessed at the peak of the pandemic. Despite the slowdown, as economies re-open, the same has been impressive, driven by the convenience associated with online shopping. The race to digitization also supports the momentum in e-commerce growth. E-commerce demand strength should continue to support growth of industry players. Favorable pricing also bears good news for industry participants.
With economic activities gaining pace, more companies are allocating their increasing cash pile through dividends and buybacks to pacify the long-suffering shareholders, thereby underlining their financial strength and confidence in their businesses. For example, recently, FedEx Corp'sboard of directors approved a dividend hike of 10%, thereby raising its quarterly cash dividend from $1.15 ($4.60 annualized) per share to $1.26 ($5.04 annualized).
3 Transportation Stocks to Buy Now
With the first-quarter 2023 earnings season around the corner, we have highlighted three stocks —American Airlines, Copa Holdings and FedEx — from the Transportation sector. The companies carry a Zacks Rank #1 (Strong Buy) or #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
These companies have witnessed impressive earnings estimate revisions for the current year. Also, all the above-mentioned stocks have outperformed the sector with respect to price in the first quarter of 2023.
Copa Holdings: The company is benefiting from the improvement in air-travel demand. In fourth-quarter 2022, passenger revenues increased 29.5% due to higher yields. CPA's focus on its cargo segment is encouraging as well. In fourth-quarter 2022, cargo and mail revenues grew 69%, owing to higher cargo volumes and yields. Copa Holdings' fleet modernization and cost-management efforts are commendable.
The above-mentioned tailwinds are likely to continue aiding this Latin American carrier that currently sports a Zacks Rank #1. The Zacks Consensus Estimate for the company's current-year earnings has been revised 12.3% upward over the past 60 days.
American Airlines: The company, currently carrying a Zacks Rank of 2, is seeing a steady recovery in domestic air-travel demand. AAL has an expected earnings growth rate of more than 100% for the current year.
The Zacks Consensus Estimate for AAL's current-year earnings has improved 19.6% over the past 60 days. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
FedEx: The company, currently carrying a Zacks Rank of 2, is being well served by its cost-cutting efforts. The cost-saving endeavors are driving its bottom line amid weakening demand. Efforts to reward its shareholders also bode well.
FDX's management expects earnings per share between $14.6 and $15.2 for 2023 (prior to MTM retirement plans accounting for adjustments, and excluding estimated costs related to business optimization initiatives and costs related to business realignment activities). The Zacks Consensus Estimate for FDX's current-year earnings has improved 6.9% over the past 60 days. The company delivered a trailing four-quarter earnings surprise of 8.8%, on average.
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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.
Free Report: Must-See Hydrogen Stocks
Hydrogen fuel cells are already used to provide efficient, ultra-clean energy to buses, ships and even hospitals. This technology is on the verge of a massive breakthrough, one that could make hydrogen a major source of America's power. It could even totally revolutionize the EV industry.
Zacks has released a special report revealing the 4 stocks experts believe will deliver the biggest gains.
Download Cashing In on Cleaner Energy today, absolutely free.
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
FedEx Corporation (FDX) : 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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Stocks recently featured in the blog include: FedEx Corp's FDX, American Airlines AAL and Copa Holdings CPA. AAL has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for AAL's current-year earnings has improved 19.6% over the past 60 days.
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Stocks recently featured in the blog include: FedEx Corp's FDX, American Airlines AAL and Copa Holdings CPA. Click to get this free report FedEx Corporation (FDX) : 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. AAL has an expected earnings growth rate of more than 100% for the current year.
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Click to get this free report FedEx Corporation (FDX) : 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. Stocks recently featured in the blog include: FedEx Corp's FDX, American Airlines AAL and Copa Holdings CPA. AAL has an expected earnings growth rate of more than 100% for the current year.
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Stocks recently featured in the blog include: FedEx Corp's FDX, American Airlines AAL and Copa Holdings CPA. AAL has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for AAL's current-year earnings has improved 19.6% over the past 60 days.
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2740.0
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2023-04-10 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
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nan
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SkyWest, Inc. (SKYW) is benefiting from its rising air-travel demand as well as 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 compared with 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 is likely to be impressive in first-quarter 2023 as well.
SkyWest's fleet-modernization efforts are commendable as well. In a bid to modernize 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. Two aircraft are expected to get delivered in 2023 and one in 2024. SkyWest has agreements with most other leading airlines as well.
Key Risk
SkyWest's current ratio at the end of 2022 was 1.17, marginally above 1. 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). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and Copa Holdings, S.A. (CPA).
American Airlines, currently carrying a Zacks Rank #2 (Buy), is benefiting from the improved air-travel-demand situation. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
For first-quarter and full-year 2023, AAL’s earnings are expected to register 100.4% and 332% growth, respectively, on a year-over-year basis.
Copa Holdings sports a Zacks Rank #1 at present. We are encouraged by CPA's focus on its cargo segment.
For first-quarter and full-year 2023, CPA’s earnings are expected to register 302.9% and 40.8% growth, respectively, on a year-over-year basis.
Free Report: Must-See Hydrogen Stocks
Hydrogen fuel cells are already used to provide efficient, ultra-clean energy to buses, ships and even hospitals. This technology is on the verge of a massive breakthrough, one that could make hydrogen a major source of America's power. It could even totally revolutionize the EV industry.
Zacks has released a special report revealing the 4 stocks experts believe will deliver the biggest gains.
Download Cashing In on Cleaner Energy today, absolutely free.
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
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). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. For first-quarter and full-year 2023, AAL’s earnings are expected to register 100.4% and 332% 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). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and Copa Holdings, S.A. (CPA). 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. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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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). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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2741.0
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2023-04-06 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-5
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American Airlines (AAL) closed at $14 in the latest trading session, marking a +0.79% move from the prior day. This change outpaced the S&P 500's 0.36% gain on the day. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq gained 1.91%.
Heading into today, shares of the world's largest airline had lost 16.28% over the past month, lagging the Transportation sector's loss of 5.69% and the S&P 500's gain of 1.24% 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 $0.03, up 101.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.26 billion, up 37.76% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.47 per share and revenue of $53.7 billion. These totals would mark changes of +394% and +9.66%, respectively, from last year.
It is also important to note the 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.05% higher. American Airlines is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note American Airlines's current valuation metrics, including its Forward P/E ratio of 5.63. This valuation marks a discount compared to its industry's average Forward P/E of 11.28.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% 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.
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 at $14 in the latest trading session, marking a +0.79% 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 lost 16.28% over the past month, lagging the Transportation sector's loss of 5.69% and the S&P 500's gain of 1.24% in that time.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) closed at $14 in the latest trading session, marking a +0.79% move from the prior day. Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.47 per share and revenue of $53.7 billion.
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American Airlines (AAL) closed at $14 in the latest trading session, marking a +0.79% 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 $2.47 per share and revenue of $53.7 billion.
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American Airlines (AAL) closed at $14 in the latest trading session, marking a +0.79% 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 holding a Zacks Rank of #2 (Buy) right now.
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2742.0
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2023-04-06 00:00:00 UTC
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FedEx (FDX) Announces Restructuring of Segments to Save Costs
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AAL
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https://www.nasdaq.com/articles/fedex-fdx-announces-restructuring-of-segments-to-save-costs
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nan
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FedEx Corporation’s FDX management announced a plan to restructure its business segments into one unit, in line with the objective of reducing costs to the tune of $4 billion by 2025. Inflationary pressures and weak shipping demand have been hurting the company for quite some time. To navigate the weaker-than-expected business environment, FDX is cutting costs.
The transition will be implemented in a phased manner. The entire restructuring process is likely to be implemented in June 2024. Following the revamp, FedEx Express, FedEx Ground, FedEx Services, and other FedEx operating companies will come under a single umbrella — Federal Express Corporation. Federal Express Corporation will conduct all its operations under the FedEx brand.
FDX’s current CEO Raj Subramaniam will serve as president and CEO of the revamped organization. However, during the transition period (up to June 2024), the financial reporting segments will remain unchanged.
Management also outlined the cost-saving targets for its DRIVE Investor Event. The DRIVE initiatives are anticipated to result in the 2025 achievement of $4 billion cost savings. Per the plan, $1.2 billion savings are anticipated to be derived from Surface Network, $1.3 billion from Air Network & International, and the remaining $1.5 billion from General & Administrative cost cuts.
The DRIVE plan also facilitates the implementation of Network 2.0, under which $2 billion cost savings are likely to be achieved in fiscal 2027. Management expects to incur costs of up to $2 billion by the end of fiscal 2025 for implementing its business optimization programs, including the DRIVE and Network 2.0.
Zacks Rank & Other Picks
FedEx currently carries a Zacks Rank #2 (Buy). Investors interested in the Zacks Transportation sector may also consider stocks like Copa Holdings CPA and American Airlines AAL. CPA currently sports a Zacks Rank #1 (Strong Buy) and AAL carries a Zacks Rank # 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings is benefiting from the improvement in air-travel demand. In fourth-quarter 2022, passenger revenues increased 29.5%, owing to higher yields.
CPA’s focus on its cargo segment is encouraging too. In fourth-quarter 2022, cargo and mail revenues grew 69%, owing to higher cargo volumes and yields. Copa Holdings' fleet modernization and cost-management efforts are commendable.
The above-mentioned tailwinds are likely to continue aiding this Latin American carrier. The Zacks Consensus Estimate for current-year earnings has been revised 12.3% upward over the past 60 days.
American Airlines is seeing steady recovery in domestic air-travel demand. AAL has an expected earnings growth rate of more than 100% for the current year.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 19.6% over the past 60 days. AAL has surpassed the Zacks Consensus Estimate for earnings in three of the past four quarters and missed once. The average beat being 7.79%.
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
FedEx Corporation (FDX) : 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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Investors interested in the Zacks Transportation sector may also consider stocks like Copa Holdings CPA and American Airlines AAL. CPA currently sports a Zacks Rank #1 (Strong Buy) and AAL carries a Zacks Rank # 2. AAL has an expected earnings growth rate of more than 100% for the current year.
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CPA currently sports a Zacks Rank #1 (Strong Buy) and AAL carries a Zacks Rank # 2. Click to get this free report FedEx Corporation (FDX) : 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. Investors interested in the Zacks Transportation sector may also consider stocks like Copa Holdings CPA and American Airlines AAL.
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Investors interested in the Zacks Transportation sector may also consider stocks like Copa Holdings CPA and American Airlines AAL. Click to get this free report FedEx Corporation (FDX) : 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. CPA currently sports a Zacks Rank #1 (Strong Buy) and AAL carries a Zacks Rank # 2.
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The Zacks Consensus Estimate for AAL’s current-year earnings has improved 19.6% over the past 60 days. Investors interested in the Zacks Transportation sector may also consider stocks like Copa Holdings CPA and American Airlines AAL. CPA currently sports a Zacks Rank #1 (Strong Buy) and AAL carries a Zacks Rank # 2.
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2743.0
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2023-04-06 00:00:00 UTC
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3 Transportation Stocks to Buy Ahead of Q1 Earnings Season
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AAL
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https://www.nasdaq.com/articles/3-transportation-stocks-to-buy-ahead-of-q1-earnings-season
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nan
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The Zacks Transportation sector was one of the worst-hit corners during the pandemic. After being battered in 2020 and 2021, with economic activities shrinking drastically, the fortunes of sector participants turned out for the better in 2022. Economic activities started bouncing back following the easing of the pandemic-induced restrictions. The scenario continues to be buoyant in 2023.
Upsides
Within the sector, the airline industry is witnessing increased passengers, with a continued rise in air-travel demand. The bright scenario is highlighted by data provided by the Transportation Security Administration (TSA) with respect to passenger volumes. In the first quarter of 2023 (January-March period), TSA checkpoint numbers revealed that passenger volumes not only surpassed the 2022 levels but also exceeded the 2019 (pre-coronavirus) numbers on many days.
It is hardly surprising that the pace of growth of e-commerce demand has slowed from the levels witnessed at the peak of the pandemic. Despite the slowdown, as economies re-open, the same has been impressive, driven by the convenience associated with online shopping. The race to digitization also supports the momentum in e-commerce growth. E-commerce demand strength should continue to support growth of industry players. Favorable pricing also bears good news for industry participants.
With economic activities gaining pace, more companies are allocating their increasing cash pile through dividends and buybacks to pacify the long-suffering shareholders, thereby underlining their financial strength and confidence in their businesses. For example, recently, FedEx Corporation’s FDX board of directors approved a dividend hike of 10%, thereby raising its quarterly cash dividend from $1.15 ($4.60 annualized) per share to $1.26 ($5.04 annualized).
3 Transportation Stocks to Buy Now
With the first-quarter 2023 earnings season around the corner, we have highlighted three stocks —American Airlines AAL, Copa Holdings CPA and FedEx — from the Transportation sector. The companies carry a Zacks Rank #1 (Strong Buy) or #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
These companies have witnessed impressive earnings estimate revisions for the current year. Also, all the above-mentioned stocks have outperformed the sector with respect to price in the first quarter of this 2023.
Image Source: Zacks Investment Research
Copa Holdings: The company is benefiting from the improvement in air-travel demand. In fourth-quarter 2022, passenger revenues increased 29.5% due to higher yields. CPA’s focus on its cargo segment is encouraging as well. In fourth-quarter 2022, cargo and mail revenues grew 69%, owing to higher cargo volumes and yields. Copa Holdings' fleet modernization and cost-management efforts are commendable.
The above-mentioned tailwinds are likely to continue aiding this Latin American carrier that currently sports a Zacks Rank #1. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 12.3% upward over the past 60 days.
American Airlines: The company, currently carrying a Zacks Rank of 2, is seeing a steady recovery in domestic air-travel demand. AAL has an expected earnings growth rate of more than 100% for the current year.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 19.6% over the past 60 days. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
FedEx: The company, currently carrying a Zacks Rank of 2, is being well served by its cost-cutting efforts. The cost-saving endeavors are driving its bottom line amid weakening demand. Efforts to reward its shareholders also bode well.
FDX’s management expects earnings per share between $14.6 and $15.2 for 2023 (prior to MTM retirement plans accounting for adjustments, and excluding estimated costs related to business optimization initiatives and costs related to business realignment activities). The Zacks Consensus Estimate for FDX’s current-year earnings has improved 6.9% over the past 60 days. The company delivered a trailing four-quarter earnings surprise of 8.8%, on average.
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
FedEx Corporation (FDX) : 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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3 Transportation Stocks to Buy Now With the first-quarter 2023 earnings season around the corner, we have highlighted three stocks —American Airlines AAL, Copa Holdings CPA and FedEx — from the Transportation sector. AAL has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for AAL’s current-year earnings has improved 19.6% over the past 60 days.
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3 Transportation Stocks to Buy Now With the first-quarter 2023 earnings season around the corner, we have highlighted three stocks —American Airlines AAL, Copa Holdings CPA and FedEx — from the Transportation sector. Click to get this free report FedEx Corporation (FDX) : 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. AAL has an expected earnings growth rate of more than 100% for the current year.
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3 Transportation Stocks to Buy Now With the first-quarter 2023 earnings season around the corner, we have highlighted three stocks —American Airlines AAL, Copa Holdings CPA and FedEx — from the Transportation sector. Click to get this free report FedEx Corporation (FDX) : 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. AAL has an expected earnings growth rate of more than 100% for the current year.
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3 Transportation Stocks to Buy Now With the first-quarter 2023 earnings season around the corner, we have highlighted three stocks —American Airlines AAL, Copa Holdings CPA and FedEx — from the Transportation sector. AAL has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for AAL’s current-year earnings has improved 19.6% over the past 60 days.
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2744.0
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2023-04-06 00:00:00 UTC
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Guru Fundamental Report for AAL
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AAL
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https://www.nasdaq.com/articles/guru-fundamental-report-for-aal-2
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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 growth 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 growth 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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2745.0
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2023-04-05 00:00:00 UTC
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FedEx (FDX) Rewards Shareholders With 10% Dividend Hike
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AAL
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https://www.nasdaq.com/articles/fedex-fdx-rewards-shareholders-with-10-dividend-hike
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nan
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In a shareholder-friendly move, FedEx Corporation FDX announced a hike in its dividend payout. FDX’s board of directors has approved a dividend hike of 10%, thereby raising its quarterly cash dividend from $1.15 ($4.60 annualized) per share to $1.26 ($5.04 annualized).
The raised dividend is anticipated to be paid out on Jul 3, 2023, to shareholders of record at the close of business on Jun 12, 2023. The move reflects FDX’s intention to utilize free cash to enhance its shareholders’ returns.
FedEx Corporation Dividend Yield (TTM)
FedEx Corporation dividend-yield-ttm | FedEx Corporation Quote
FedEx has been consistently making efforts to reward its shareholders through dividends and share buybacks, which are encouraging. In June 2022, FedEx raised its quarterly dividend by 53% to $1.15 per share.
In the first nine months of fiscal 2023, FedEx paid out dividends worth $888 million (higher than the $598 million dividend payout in the first nine months of fiscal 2022). In fiscal 2022, FedEx paid out dividends worth $793 million (higher than the $686 million dividend payout in fiscal 2021). Such shareholder-friendly moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business. These initiatives not only instill investors’ confidence but positively impact earnings per share.
Dividend-paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. Dividend stocks, like FDX, are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty like the current scenario.
FDX management’s decision to increase its quarterly dividend payout reflects its commitment toward boosting shareholder value apart from underlining confidence in its business. We believe, such shareholder-friendly initiatives boost investors’ confidence and positively impact the company’s bottom line.
Zacks Rank and Other Stocks to Consider
Currently, FedEx carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the Zacks Transportation sector are Copa Holdings, S.A. CPA and American Airlines AAL. Copa Holdings presently sports a Zacks Rank #1 (Strong Buy) and American Airlines carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings has an expected earnings growth rate of 39.83% for the current year. CPA delivered a trailing four-quarter earnings surprise of 33.35%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 21.1% over the past 90 days. Shares of CPA have risen 20.7% over the past six months.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 31.1% over the past 90 days. Shares of AAL have gained 11.2% over the past six months.
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
FedEx Corporation (FDX) : 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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Some other top-ranked stocks from the Zacks Transportation sector are Copa Holdings, S.A. CPA and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
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Click to get this free report FedEx Corporation (FDX) : 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. Some other top-ranked stocks from the Zacks Transportation sector are Copa Holdings, S.A. CPA and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year.
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Click to get this free report FedEx Corporation (FDX) : 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. Some other top-ranked stocks from the Zacks Transportation sector are Copa Holdings, S.A. CPA and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year.
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Some other top-ranked stocks from the Zacks Transportation sector are Copa Holdings, S.A. CPA and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
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2746.0
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2023-04-05 00:00:00 UTC
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Citigroup Maintains American Airlines Group (AAL) Neutral Recommendation
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https://www.nasdaq.com/articles/citigroup-maintains-american-airlines-group-aal-neutral-recommendation
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On April 5, 2023, Citigroup maintained coverage of American Airlines Group with a Neutral recommendation.
Analyst Price Forecast Suggests 24.95% Upside
As of March 30, 2023, the average one-year price target for American Airlines Group is $17.69. The forecasts range from a low of $8.08 to a high of $27.30. The average price target represents an increase of 24.95% from its latest reported closing price of $14.16.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Airlines Group is $51,177MM, an increase of 4.50%. The projected annual non-GAAP EPS is $1.52.
What are Other Shareholders Doing?
Maverick Capital holds 87K shares representing 0.01% ownership of the company. In it's prior filing, the firm reported owning 0K shares, representing an increase of 100.00%.
GSPFX - Gotham Enhanced S&P 500 Index Fund Institutional Class Shares holds 0K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 0K shares, representing an increase of 3.45%. The firm decreased its portfolio allocation in AAL by 2.62% over the last quarter.
EQ ADVISORS TRUST - EQ holds 11K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 12K shares, representing a decrease of 12.11%. The firm decreased its portfolio allocation in AAL by 7.25% over the last quarter.
DAMDX - Dunham Monthly Distribution Fund holds 1K shares representing 0.00% ownership of the company. No change in the last quarter.
LINCOLN VARIABLE INSURANCE PRODUCTS TRUST - LVIP SSGA S&P 500 Index Fund Standard Class holds 170K shares representing 0.03% ownership of the company. No change in the last quarter.
What is the Fund Sentiment?
There are 1011 funds or institutions reporting positions in American Airlines Group. This is an increase of 25 owner(s) or 2.54% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 7.64%. Total shares owned by institutions decreased in the last three months by 3.06% to 397,194K shares. The put/call ratio of AAL is 2.61, indicating a bearish outlook.
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.
See all American Airlines Group regulatory filings.
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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The firm decreased its portfolio allocation in AAL by 2.62% over the last quarter. The firm decreased its portfolio allocation in AAL by 7.25% over the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 7.64%.
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The firm decreased its portfolio allocation in AAL by 2.62% over the last quarter. The firm decreased its portfolio allocation in AAL by 7.25% over the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 7.64%.
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The firm decreased its portfolio allocation in AAL by 2.62% over the last quarter. The firm decreased its portfolio allocation in AAL by 7.25% over the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 7.64%.
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The firm decreased its portfolio allocation in AAL by 2.62% over the last quarter. The firm decreased its portfolio allocation in AAL by 7.25% over the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 7.64%.
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2747.0
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2023-04-05 00:00:00 UTC
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What Led To A 62% Fall In JetBlue Stock Since 2019?
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AAL
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https://www.nasdaq.com/articles/what-led-to-a-62-fall-in-jetblue-stock-since-2019
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Despite a 9% rise this year, JetBlue Airways stock (NASDAQ: JBLU) looks like it can see higher levels. JetBlue stock has risen from $6.50 in early January to $7.04 now. This performance aligns with the 7% return for the broader S&P500 index. Looking at a slightly longer term, JBLU stock is down a significant 62% from levels seen in late 2019. This can be attributed to 1. the company’s P/S ratio, which plunged 62% to 0.3x trailing revenues from 0.7x in 2019, 2. its average shares outstanding rising 14% to 327 million, partly offset by 3. a 13% rise in JetBlue Airways revenue to $9.2 billion—our interactive dashboard, Why JetBlue Airways Stock Moved, has more details.
JetBlue primarily earns its revenues from selling air tickets and other ancillary services such as freight and mail. The rise in revenues over the recent years can be attributed to a rebound in air travel demand, with passenger traffic and ticket yield rising meaningfully in the last few years. 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. The demand for air travel is expected to remain high in the near term, boding well for JetBlue in the near future.
JetBlue’s operating margin stood at 9.5% in 2019, before the pandemic, and it fell to -63.2% in 2020 before recovering to -4.6% in 2022. Our JetBlue Airways (JBLU) Operating Income Comparison dashboard has more details. Looking at valuation, we find that JBLU stock has more room for growth. We estimate JetBlue Airways’ Valuation to be $8 per share, about 18% above the current market price, representing a 0.3x P/S multiple based on TTM revenues.
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, last month, the Justice Department filed a lawsuit seeking to block the proposed merger of JetBlue and Spirit, stating that it will lead to increased fares.
While JBLU stock may have more room for growth, 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.
Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for FedEx vs. Amkor.
With inflation rising and the Fed raising interest rates, among other factors, JBLU stock has fallen 48% in the last twelve months. Can it drop more? 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? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Apr 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
JBLU Return -3% 9% -69%
S&P 500 Return 0% 7% 83%
Trefis Multi-Strategy Portfolio -1% 7% 236%
[1] Month-to-date and year-to-date as of 4/5/2023
[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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We estimate JetBlue Airways’ Valuation to be $8 per share, about 18% above the current market price, representing a 0.3x P/S multiple based on TTM revenues. However, last month, the Justice Department filed a lawsuit seeking to block the proposed merger of JetBlue and Spirit, stating that it will lead to increased fares. With inflation rising and the Fed raising interest rates, among other factors, JBLU stock has fallen 48% in the last twelve months.
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Despite a 9% rise this year, JetBlue Airways stock (NASDAQ: JBLU) looks like it can see higher levels. 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. Total [2] JBLU Return -3% 9% -69% S&P 500 Return 0% 7% 83% Trefis Multi-Strategy Portfolio -1% 7% 236% [1] Month-to-date and year-to-date as of 4/5/2023 [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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Despite a 9% rise this year, JetBlue Airways stock (NASDAQ: JBLU) looks like it can see higher levels. This can be attributed to 1. the company’s P/S ratio, which plunged 62% to 0.3x trailing revenues from 0.7x in 2019, 2. its average shares outstanding rising 14% to 327 million, partly offset by 3. a 13% rise in JetBlue Airways revenue to $9.2 billion—our interactive dashboard, Why JetBlue Airways Stock Moved, has more details. Total [2] JBLU Return -3% 9% -69% S&P 500 Return 0% 7% 83% Trefis Multi-Strategy Portfolio -1% 7% 236% [1] Month-to-date and year-to-date as of 4/5/2023 [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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Despite a 9% rise this year, JetBlue Airways stock (NASDAQ: JBLU) looks like it can see higher levels. The rise in revenues over the recent years can be attributed to a rebound in air travel demand, with passenger traffic and ticket yield rising meaningfully in the last few years. Total [2] JBLU Return -3% 9% -69% S&P 500 Return 0% 7% 83% Trefis Multi-Strategy Portfolio -1% 7% 236% [1] Month-to-date and year-to-date as of 4/5/2023 [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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2748.0
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2023-04-05 00:00:00 UTC
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5 Stocks Worth a Look Post Broker Upgrade Amid Volatility
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https://www.nasdaq.com/articles/5-stocks-worth-a-look-post-broker-upgrade-amid-volatility
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The U.S. equity markets continue to be plagued by severe volatility. Despite a strong performance by major indices in March, the fact remains that we are by no means out of the woods especially with respect to woes related to inflation. The recent production cut by the OPEC+ oil cartel, which includes OPEC members plus Russia, has led to a surge in oil prices. This may lead to inflationary pressure aggravating and further economic uncertainty and market volatility.
Given this uncertain scenario, it is anything but easy for individual investors to design a winning portfolio of stocks. But no one wants to see their hard-earned money go down the drain. Moreover, with multiple stocks flooding the market from every possible corner, at any point of time, it is next to impossible to design one’s portfolio with appropriate stocks in the absence of guidance from experts who are equipped with suitable market-related knowhow. The experts in the field of investing are the brokers.
We believe that investors should keep track of broker-favorite stocks like CVR Energy CVI, American Airlines AAL, Bloomin’ Brands BLMN, Abercrombie & Fitch Co. ANF and Cleveland-Cliff CLF for attractive returns.
Here’s Why Adhering to Broker Advice is Advisable
Brokers scrutinize publicly available financial documents and also attend company conference calls and other presentations. Since brokers recommend (buy, sell or hold) a stock after thoroughly analyzing the nitty-gritty associated with the company, it is prudent for investors to be guided by their direction of estimate revisions while deciding their course of action on a particular stock.
The estimate revisions serve as an important pointer regarding the price of a stock. In fact, a rating upgrade generally leads to stock price appreciation. Similarly, the price of a stock may plummet following a rating downgrade. Estimates can move north for a number of reasons, including a favorable earnings performance, bullish guidance, product launch or an optimistic macro scenario.
Winning Strategy
To take care of the earnings performance, we designed a screen based on improving analyst recommendations and upward estimate revisions over the last four weeks.
Also, since the price/sales ratio is a strong complementary valuation metric in the presence of analyst information, it is taken into consideration. The price/sales ratio takes care of the company’s top line, making the strategy foolproof.
Screening Criteria
# (Up- Down Rating)/ Total (4 weeks) =Top #75: This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks.
% change in Q (1) est. (4 weeks) = Top #10: This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter.
To ensure that the strategy is a winning one, covering all bases, we have added the following screening parameters:
Price-to-Sales = Bot%10: The lower the ratio, the better. Companies meeting this criterion are in bottom 10% of our universe of over 7,700 stocks with respect to this ratio.
Price greater than 5: A stock trading below $5 will not likely create significant interest for most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days: Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000: This gives us stocks that are the top 3000 if one judges by market capitalization.
Com/ADR/Canadian= Com: This takes out the ADR and Canadian stocks.
Here are five of the 10 stocks that made it through the screen:
CVR Energy is an independent refiner and marketer of high-value transportation fuels. CVI is also a producer of ammonia and urea ammonia nitrate fertilizers. CVI's petroleum business includes a full-coking sour crude refinery in Coffeyville, KS. Its efforts to reward its shareholders underline its strong financial position. The robust Nitrogen Fertilizer unit is supporting growth.
CVR Energy, currently sporting a Zacks Rank #1 (Strong Buy), surpassed the Zacks Consensus Estimate in each of the past four quarters by an average of 40.85%. The Zacks Consensus Estimate for current-year earnings has improved 36.8% over the past 60 days.You can see the complete list of today’s Zacks #1 Rank stocks here.
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 19.6% upward. American Airlines currently carries a Zacks Rank #2 (Buy).
Bloomin’ Brands is a casual dining restaurant company with a portfolio of differentiated restaurant concepts such as Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, Fleming's Prime Steakhouse and Wine Bar and Roy's. The company currently sports a Zacks Rank #1.
Bloomin’ Brands has a trailing four-quarter earnings surprise of 7.51%, on average. The Zacks Consensus Estimate for BLMN’s 2023 earnings has moved 9.7% north to $2.93 per share over the past 60 days.
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.
Abercrombie, currently carrying a Zacks Rank #3, 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 skyrocketed more than 400% from the year-ago actual bottom-line figure.
Cleveland-Cliffs is a leading iron ore producer in the United States. It supplies differentiated iron ore pellets under long-term contracts to major blast furnace steel producers in North America. The Mining and Pelletizing operation gains from low-cost, high-quality iron ore pellet production with substantial logistics and transportation advantages to serve the Great Lakes steel market. The company should gain from its merger with AK Steel Holding Corporation.
CLF surpassed the Zacks Consensus Estimate in two of the past four quarters (missing the mark in the other two). The Zacks Consensus Estimate for CLF’s 2023 earnings has moved 9.3% north to $1.99 per share over the past seven days. Cleveland-Cliffs 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 test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
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
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
Cleveland-Cliffs Inc. (CLF) : Free Stock Analysis Report
CVR Energy Inc. (CVI) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Bloomin' Brands, Inc. (BLMN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We believe that investors should keep track of broker-favorite stocks like CVR Energy CVI, American Airlines AAL, Bloomin’ Brands BLMN, Abercrombie & Fitch Co. ANF and Cleveland-Cliff CLF for attractive returns. 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 19.6% upward.
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We believe that investors should keep track of broker-favorite stocks like CVR Energy CVI, American Airlines AAL, Bloomin’ Brands BLMN, Abercrombie & Fitch Co. ANF and Cleveland-Cliff CLF for attractive returns. Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report Cleveland-Cliffs Inc. (CLF) : Free Stock Analysis Report CVR Energy Inc. (CVI) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Bloomin' Brands, Inc. (BLMN) : 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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Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report Cleveland-Cliffs Inc. (CLF) : Free Stock Analysis Report CVR Energy Inc. (CVI) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Bloomin' Brands, Inc. (BLMN) : Free Stock Analysis Report To read this article on Zacks.com click here. We believe that investors should keep track of broker-favorite stocks like CVR Energy CVI, American Airlines AAL, Bloomin’ Brands BLMN, Abercrombie & Fitch Co. ANF and Cleveland-Cliff CLF for attractive returns. The gradual increase in air-travel demand (particularly for leisure) is aiding AAL.
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We believe that investors should keep track of broker-favorite stocks like CVR Energy CVI, American Airlines AAL, Bloomin’ Brands BLMN, Abercrombie & Fitch Co. ANF and Cleveland-Cliff CLF for attractive returns. 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 19.6% upward.
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2023-04-04 00:00:00 UTC
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American Airlines (AAL) to Trim Flights Due to FAA Staff Crunch
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-to-trim-flights-due-to-faa-staff-crunch
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American Airlines AAL is reportedly the latest U.S. carrier to cut flights in the New York City area this summer. This move comes after the Federal Aviation Administration (FAA) announced a plan last month to bring down flight disruptions in the wake of air traffic controller shortages.
This will reduce passenger harassment as air-travel demand has soared following the pandemic. The same is expected to move further north in the upcoming summer season.
AAL has decided to reduce the frequency of flights between LaGuardia Airport and Dallas, Miami, Kansas City and St. Louis. It will also operate fewer flights on the Newark Liberty International Airport-Chicago route.
Due to its staffing shortage, FAA has allowed the reduction of flight requirements by up to 10% for airlines’ takeoff and landing rights to avoid congestion in the New York City area and Washington, D.C. The waivers will last for four months from May 15.
To ensure the smooth flow of operations and prevent a repeat of the 2022 experience where flight cancellations and delays were rampant, FAA will allow airlines to reduce operations during the peak summer travel period. To minimize passenger harassment, airlines can opt to use larger planes.
Notably, the agency held a meeting last month, featuring industry leaders, to discuss how to best manage the congested airspace around New York in view of the staffing shortage. JetBlue Airways JBLU, too, intends to reduce weekly flights in the New York City area this spring and summer due to the shortage of air traffic controllers.
Per JetBlue’s CEO Robin Hayes, “We don’t want to pull down flights. I’m sure no airline wants to pull down flights. But if we don’t cut them the system is not going to be workable this summer.”
Currently, American Airlines carries a Zacks Rank #2 (Buy) while JetBlue carries a Zacks Rank #3 (Hold). Investors interested in the Zacks Airline industry may consider Copa Holdings CPA, which currently sports 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 the improvement in air-travel demand. In fourth-quarter 2022, passenger revenues increased 29.5%, owing to higher yields. CPA’s focus on its cargo segment is encouraging too.
In fourth-quarter 2022, cargo and mail revenues grew 69%, owing to higher cargo volumes and yields. Copa Holdings' fleet modernization and cost-management efforts are commendable as well.
The abovementioned tailwinds are likely to continue aiding this Latin American carrier. The Zacks Consensus Estimate for current-year earnings has been revised 12.3% upward over the past 60 days. CPA has a Growth Score of A, presently.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
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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American Airlines AAL is reportedly the latest U.S. carrier to cut flights in the New York City area this summer. AAL has decided to reduce the frequency of flights between LaGuardia Airport and Dallas, Miami, Kansas City and St. Louis. Click to get this free report JetBlue Airways Corporation (JBLU) : 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.
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American Airlines AAL is reportedly the latest U.S. carrier to cut flights in the New York City area this summer. Click to get this free report JetBlue Airways Corporation (JBLU) : 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. AAL has decided to reduce the frequency of flights between LaGuardia Airport and Dallas, Miami, Kansas City and St. Louis.
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Click to get this free report JetBlue Airways Corporation (JBLU) : 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 reportedly the latest U.S. carrier to cut flights in the New York City area this summer. AAL has decided to reduce the frequency of flights between LaGuardia Airport and Dallas, Miami, Kansas City and St. Louis.
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American Airlines AAL is reportedly the latest U.S. carrier to cut flights in the New York City area this summer. AAL has decided to reduce the frequency of flights between LaGuardia Airport and Dallas, Miami, Kansas City and St. Louis. Click to get this free report JetBlue Airways Corporation (JBLU) : 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.
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2750.0
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2023-04-04 00:00:00 UTC
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U.S. airline loyalty programs can provide buffer from possible recession
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AAL
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https://www.nasdaq.com/articles/u.s.-airline-loyalty-programs-can-provide-buffer-from-possible-recession
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By Rajesh Kumar Singh
CHICAGO, April 4 (Reuters) - U.S. airlines relied on loyalty programs for revenue during the pandemic, and industry executives and experts said income from them should hold up if the economy slips into a recession.
Launched more than four decades ago to build airline brand loyalty, the programs have become a cash-generator for carriers through sale of miles to third-party partners, mostly credit card-issuing banks that award the miles to their own customers. The more customers spend, the more miles they earn and the more partners pay to airlines.
Non-flying activities now account for more than half of all miles earned in major loyalty programs, noted Evert de Boer, managing partner at consulting firm On Point Loyalty, making airlines more resilient to economic swings.
The share of revenue generated by loyalty programs shot up to 16% in 2021 from about 12% in 2019 at the big five U.S. carriers - Delta Air Lines DAL.N, American Airlines AAL.O, United Airlines UAL.O, Southwest Airlines LUV.N and Alaska Airlines ALK.N, according to data from consultancy IdeaWorksCompany.
People curtailed flying during the pandemic, but still spent on airline loyalty credit cards, said JetBlue JBLU.O vice president Chris Buckner.
He and other executives expect that trend to continue if a slowing economy cuts travel demand.
"Credit card spending isn't going away," Southwest Airlines LUV.N vice president Jonathan Clarkson said.
Delta generated $5.7 billion in cash sales last year from American Express AXP.N and other partners - equal to 14% of 2022 passenger revenue, according to Reuters calculations.
Similarly, American Airline received $4.5 billion in cash payments from its partners including Citi C.N and Barclays BARC.L - equivalent to 10% of passenger revenue.
Carriers are trying to generate even more cash from these programs by signing up new partnerships.
United has partnered with companies like anti-virus software provider Norton and home security firm SimpliSafe. Alaska is awarding 50,000 miles to customers for securing housing loans from a mortgage company. JetBlue has teamed up with luggage companies.
Delta has partnerships with Starbucks SBUX.O and grocery delivery company Instacart among others.
Airline loyalty programs are also highly profitable.
A study by Frankie O'Connell, a professor of air transport management at the University of Surrey in England, has found the return on invested capital from these programs for American, United and Delta is more than 60%, far higher than a 5% return on their overall business.
"It's a goldmine of reoccurring revenues for little or no effort," O'Connell said.
(Reporting by Rajesh Kumar Singh; editing by Ben Klayman and David Gregorio)
((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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The share of revenue generated by loyalty programs shot up to 16% in 2021 from about 12% in 2019 at the big five U.S. carriers - Delta Air Lines DAL.N, American Airlines AAL.O, United Airlines UAL.O, Southwest Airlines LUV.N and Alaska Airlines ALK.N, according to data from consultancy IdeaWorksCompany. By Rajesh Kumar Singh CHICAGO, April 4 (Reuters) - U.S. airlines relied on loyalty programs for revenue during the pandemic, and industry executives and experts said income from them should hold up if the economy slips into a recession. People curtailed flying during the pandemic, but still spent on airline loyalty credit cards, said JetBlue JBLU.O vice president Chris Buckner.
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The share of revenue generated by loyalty programs shot up to 16% in 2021 from about 12% in 2019 at the big five U.S. carriers - Delta Air Lines DAL.N, American Airlines AAL.O, United Airlines UAL.O, Southwest Airlines LUV.N and Alaska Airlines ALK.N, according to data from consultancy IdeaWorksCompany. People curtailed flying during the pandemic, but still spent on airline loyalty credit cards, said JetBlue JBLU.O vice president Chris Buckner. Delta generated $5.7 billion in cash sales last year from American Express AXP.N and other partners - equal to 14% of 2022 passenger revenue, according to Reuters calculations.
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The share of revenue generated by loyalty programs shot up to 16% in 2021 from about 12% in 2019 at the big five U.S. carriers - Delta Air Lines DAL.N, American Airlines AAL.O, United Airlines UAL.O, Southwest Airlines LUV.N and Alaska Airlines ALK.N, according to data from consultancy IdeaWorksCompany. Launched more than four decades ago to build airline brand loyalty, the programs have become a cash-generator for carriers through sale of miles to third-party partners, mostly credit card-issuing banks that award the miles to their own customers. Non-flying activities now account for more than half of all miles earned in major loyalty programs, noted Evert de Boer, managing partner at consulting firm On Point Loyalty, making airlines more resilient to economic swings.
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The share of revenue generated by loyalty programs shot up to 16% in 2021 from about 12% in 2019 at the big five U.S. carriers - Delta Air Lines DAL.N, American Airlines AAL.O, United Airlines UAL.O, Southwest Airlines LUV.N and Alaska Airlines ALK.N, according to data from consultancy IdeaWorksCompany. By Rajesh Kumar Singh CHICAGO, April 4 (Reuters) - U.S. airlines relied on loyalty programs for revenue during the pandemic, and industry executives and experts said income from them should hold up if the economy slips into a recession. The more customers spend, the more miles they earn and the more partners pay to airlines.
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2751.0
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2023-04-04 00:00:00 UTC
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The Zacks Analyst Blog Highlights American Airlines, Copa Holdings and JetBlue Airways
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights-american-airlines-copa-holdings-and-jetblue-airways
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nan
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For Immediate Release
Chicago, IL – April 4, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: American Airlines AAL, Copa Holdings CPA and JetBlue Airways JBLU.
Here are highlights from Monday’s Analyst Blog:
Airline Industry Appreciates 7.1% in Q1: More Upside Ahead?
It is no secret that the airline industry was one of the worst-hit corners during the pandemic. After being battered in 2020 and 2021, with passenger revenues shrinking drastically, the fortunes of the industry players turned for the better in 2022 as air traffic (particularly for leisure) started bouncing back following the easing of the pandemic-induced restrictions.
The scenario has brightened further this year with business travel making a recovery. Leisure travel trends are strong as well with vacationers making up for lost time. The resurgence in air-travel demand is solely responsible for the Zacks Airline industry gaining 7.1% in first-quarter 2023 (January-March period) despite headwinds like inflation-induced economic uncertainty and high fuel costs.
The bright scenario is highlighted by data provided by the Transportation Security Administration (TSA) with respect to passenger volumes. In the January-March period this year, TSA checkpoint numbers revealed that passenger volumes not only surpassed 2022 levels but also exceeded 2019 (pre-coronavirus) numbers on many days.
Airlines Likely to Fly High Throughout 2023
The buoyancy with respect to passenger volumes, witnessed in the first quarter of the year, is likely to remain throughout the year. In fact, the scenario is likely to get brighter in the United States in the upcoming summer season. Many U.S. airlines are adjusting their summer schedules to meet the anticipated demand swell.
Passenger volumes are high not only in the United States but globally. This led the International Air Transport Association (IATA) to expect airlines to return to profitability this year. Net profits for airlines across the globe are likely to be $4.7 billion in 2023.
With people again taking to the skies, passenger revenues, which account for the bulk of the top line for most airlines, are likely to regain their lost glory in 2023. Per IATA, passenger revenues for the current year are anticipated to be $522 billion (85.5% of 2019 levels).
The focus of airlines on boosting cargo revenues is an added positive. IATA anticipates 2023 cargo revenues to be around $150 billion, suggesting an increase of nearly $48.6 billion from the pre-pandemic level of 2019.
3 Airline Stocks to Keep a Tab On
Given this buoyant scenario, we believe that investors interested in the Zacks Airline industry should keep stocks like American Airlines, Copa Holdings and JetBlue Airways on their watchlist for healthy returns. Driven by the stronger-than-expected recovery in air-travel demand, all the abovementioned stocks have outperformed the industry with respect to price in the first quarter of this year.
Copa Holdings is benefiting from the improvement in air-travel demand. In fourth-quarter 2022, passenger revenues increased 29.5%, owing to higher yields. CPA’s focus on its cargo segment is encouraging too. In fourth-quarter 2022, cargo and mail revenues grew 69%, owing to higher cargo volumes and yields. Copa Holdings' fleet modernization and cost-management efforts are commendable as well.
The abovementioned tailwinds are likely to continue aiding this Latin American carrier, currently sporting a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for current-year earnings has been revised 12.3% upward over the past 60 days. CPA has a Growth Score of A.
You can see the complete list of today’s Zacks #1 Rank stocks here.
American Airlines, currently carrying a Zacks Rank of 2 (Buy), is seeing steady recovery in domestic air-travel demand. AAL has an expected earnings growth rate of more than 100% for the current year.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 10.8% over the past 60 days. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
JetBlue Airways is benefiting from the buoyant air-travel-demand scenario and fleet-upgrade efforts. With air-travel demand expected to remain strong going forward as well, management expects total revenues for 2023 to increase year over year in the high single-digit to low double-digit range.
The Zacks Consensus Estimate for current-year earnings at JetBlue has been revised 9.4% upward over the past 60 days. JBLU, presently, has a Growth Score of B and carries a Zacks Rank #3 (Hold).
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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.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
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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Stocks recently featured in the blog include: American Airlines AAL, Copa Holdings CPA and JetBlue Airways JBLU. AAL has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for AAL’s current-year earnings has improved 10.8% over the past 60 days.
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Stocks recently featured in the blog include: American Airlines AAL, Copa Holdings CPA and JetBlue Airways JBLU. Click to get this free report JetBlue Airways Corporation (JBLU) : 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. AAL has an expected earnings growth rate of more than 100% for the current year.
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Stocks recently featured in the blog include: American Airlines AAL, Copa Holdings CPA and JetBlue Airways JBLU. Click to get this free report JetBlue Airways Corporation (JBLU) : 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. AAL has an expected earnings growth rate of more than 100% for the current year.
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Stocks recently featured in the blog include: American Airlines AAL, Copa Holdings CPA and JetBlue Airways JBLU. AAL has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for AAL’s current-year earnings has improved 10.8% over the past 60 days.
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2752.0
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2023-04-04 00:00:00 UTC
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Anglo American, Sweden's H2 Green Steel to work on low-carbon steelmaking processes
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AAL
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https://www.nasdaq.com/articles/anglo-american-swedens-h2-green-steel-to-work-on-low-carbon-steelmaking-processes
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nan
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Adds detail, background, shares
April 4 (Reuters) - Anglo American AAL.L said on Tuesday it had signed a memorandum of understanding with Swedish hydrogen and steel producer H2 Green Steel to work on advancing low-carbon steelmaking processes.
The miner said the agreement includes studying and trialling the use of iron ore products from its Kumba mines in South Africa and Minas-Rio mine in Brazil as feedstock for H2's direct reduced iron (DRI) production process at its Boden plant in Sweden.
DRI steel production is estimated to be significantly less carbon intensive than traditional blast furnace and basic oxygen furnace integrated processes.
Anglo American has agreements with a number of steelmakers in Europe and Asia to research efficient feed materials suited to use in DRI steelmaking, including iron ore pellets and lump iron ore.
H2 Green Steel, which was launched in 2021, is currently developing its DRI plant in Boden, which the company said would be powered by hydrogen plants running on renewable electricity.
Anglo American's shares were up 0.4% by 0715 GMT.
(Reporting by Muhammed Husain in Bengaluru; Editing by Subhranshu Sahu, Kirsten Donovan)
((Muhammed.Husain@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 detail, background, shares April 4 (Reuters) - Anglo American AAL.L said on Tuesday it had signed a memorandum of understanding with Swedish hydrogen and steel producer H2 Green Steel to work on advancing low-carbon steelmaking processes. The miner said the agreement includes studying and trialling the use of iron ore products from its Kumba mines in South Africa and Minas-Rio mine in Brazil as feedstock for H2's direct reduced iron (DRI) production process at its Boden plant in Sweden. Anglo American has agreements with a number of steelmakers in Europe and Asia to research efficient feed materials suited to use in DRI steelmaking, including iron ore pellets and lump iron ore. H2 Green Steel, which was launched in 2021, is currently developing its DRI plant in Boden, which the company said would be powered by hydrogen plants running on renewable electricity.
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Adds detail, background, shares April 4 (Reuters) - Anglo American AAL.L said on Tuesday it had signed a memorandum of understanding with Swedish hydrogen and steel producer H2 Green Steel to work on advancing low-carbon steelmaking processes. The miner said the agreement includes studying and trialling the use of iron ore products from its Kumba mines in South Africa and Minas-Rio mine in Brazil as feedstock for H2's direct reduced iron (DRI) production process at its Boden plant in Sweden. DRI steel production is estimated to be significantly less carbon intensive than traditional blast furnace and basic oxygen furnace integrated processes.
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Adds detail, background, shares April 4 (Reuters) - Anglo American AAL.L said on Tuesday it had signed a memorandum of understanding with Swedish hydrogen and steel producer H2 Green Steel to work on advancing low-carbon steelmaking processes. The miner said the agreement includes studying and trialling the use of iron ore products from its Kumba mines in South Africa and Minas-Rio mine in Brazil as feedstock for H2's direct reduced iron (DRI) production process at its Boden plant in Sweden. Anglo American has agreements with a number of steelmakers in Europe and Asia to research efficient feed materials suited to use in DRI steelmaking, including iron ore pellets and lump iron ore. H2 Green Steel, which was launched in 2021, is currently developing its DRI plant in Boden, which the company said would be powered by hydrogen plants running on renewable electricity.
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Adds detail, background, shares April 4 (Reuters) - Anglo American AAL.L said on Tuesday it had signed a memorandum of understanding with Swedish hydrogen and steel producer H2 Green Steel to work on advancing low-carbon steelmaking processes. DRI steel production is estimated to be significantly less carbon intensive than traditional blast furnace and basic oxygen furnace integrated processes. Anglo American has agreements with a number of steelmakers in Europe and Asia to research efficient feed materials suited to use in DRI steelmaking, including iron ore pellets and lump iron ore. H2 Green Steel, which was launched in 2021, is currently developing its DRI plant in Boden, which the company said would be powered by hydrogen plants running on renewable electricity.
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2753.0
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2023-04-04 00:00:00 UTC
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Unusual Put Option Trade in American Airlines Group (AAL) Worth $1,158.18K
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AAL
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https://www.nasdaq.com/articles/unusual-put-option-trade-in-american-airlines-group-aal-worth-%241158.18k
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nan
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nan
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On April 4, 2023 at 13:42:31 ET an unusually large $1,158.18K block of Put contracts in American Airlines Group (AAL) was bought, with a strike price of $12.00 / share, expiring in 654 days (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 8.33 sigmas above the mean, placing it in the 100.00 percentile of all recent large trades made in AAL options.
This trade was first picked up on Fintel's real time Unusual Option Trades tool, where unusual option trades are highlighted.
Analyst Price Forecast Suggests 22.70% Upside
As of March 30, 2023, the average one-year price target for American Airlines Group is $17.69. The forecasts range from a low of $8.08 to a high of $27.30. The average price target represents an increase of 22.70% from its latest reported closing price of $14.42.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Airlines Group is $51,177MM, an increase of 4.50%. The projected annual non-GAAP EPS is $1.52.
What is the Fund Sentiment?
There are 1011 funds or institutions reporting positions in American Airlines Group. This is an increase of 25 owner(s) or 2.54% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 7.94%. Total shares owned by institutions decreased in the last three months by 2.89% to 397,674K shares. The put/call ratio of AAL is 2.64, indicating a bearish outlook.
What are Large Shareholders Doing?
Primecap Management holds 38,099K shares representing 5.84% ownership of the company. In it's prior filing, the firm reported owning 38,955K shares, representing a decrease of 2.25%. The firm decreased its portfolio allocation in AAL by 2.24% 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.
U S Global Investors holds 16,743K shares representing 2.56% ownership of the company. In it's prior filing, the firm reported owning 16,590K shares, representing an increase of 0.91%. The firm increased its portfolio allocation in AAL by 2.60% 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.
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.
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 April 4, 2023 at 13:42:31 ET an unusually large $1,158.18K block of Put contracts in American Airlines Group (AAL) was bought, with a strike price of $12.00 / share, expiring in 654 days (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 8.33 sigmas above the mean, placing it in the 100.00 percentile of all recent large trades made in AAL options. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 7.94%.
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On April 4, 2023 at 13:42:31 ET an unusually large $1,158.18K block of Put contracts in American Airlines Group (AAL) was bought, with a strike price of $12.00 / share, expiring in 654 days (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 8.33 sigmas above the mean, placing it in the 100.00 percentile of all recent large trades made in AAL options. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 7.94%.
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On April 4, 2023 at 13:42:31 ET an unusually large $1,158.18K block of Put contracts in American Airlines Group (AAL) was bought, with a strike price of $12.00 / share, expiring in 654 days (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 8.33 sigmas above the mean, placing it in the 100.00 percentile of all recent large trades made in AAL options. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 7.94%.
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On April 4, 2023 at 13:42:31 ET an unusually large $1,158.18K block of Put contracts in American Airlines Group (AAL) was bought, with a strike price of $12.00 / share, expiring in 654 days (on January 17, 2025). Fintel tracks all large options trades, and the premium spent on this trade was 8.33 sigmas above the mean, placing it in the 100.00 percentile of all recent large trades made in AAL options. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 7.94%.
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2754.0
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2023-04-04 00:00:00 UTC
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Chile copper production down 3.4% in February- Cochilco
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AAL
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https://www.nasdaq.com/articles/chile-copper-production-down-3.4-in-february-cochilco
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nan
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nan
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SANTIAGO, April 4 (Reuters) - Chile's total copper production dropped 3.4% in February to 381,000 tonnes, as output from state-owned giant Codelco fell 14.8% year on year to 105,400 tonnes, the Chilean Copper Commission said on Tuesday.
Production from BHP-controlled mine Escondida rose 4% to 72,700 tonnes, while Collahuasi, a joint venture of Anglo American and Glencore, produced 44,100 tonnes, a 6% annual decrease, said the commission, known as Cochilco.
(Reporting by Fabian Andres Cambero; Writing by Isabel Woodford; Editing by Anthony Esposito)
((Valentine.Hilaire@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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SANTIAGO, April 4 (Reuters) - Chile's total copper production dropped 3.4% in February to 381,000 tonnes, as output from state-owned giant Codelco fell 14.8% year on year to 105,400 tonnes, the Chilean Copper Commission said on Tuesday. Production from BHP-controlled mine Escondida rose 4% to 72,700 tonnes, while Collahuasi, a joint venture of Anglo American and Glencore, produced 44,100 tonnes, a 6% annual decrease, said the commission, known as Cochilco. (Reporting by Fabian Andres Cambero; Writing by Isabel Woodford; Editing by Anthony Esposito) ((Valentine.Hilaire@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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SANTIAGO, April 4 (Reuters) - Chile's total copper production dropped 3.4% in February to 381,000 tonnes, as output from state-owned giant Codelco fell 14.8% year on year to 105,400 tonnes, the Chilean Copper Commission said on Tuesday. Production from BHP-controlled mine Escondida rose 4% to 72,700 tonnes, while Collahuasi, a joint venture of Anglo American and Glencore, produced 44,100 tonnes, a 6% annual decrease, said the commission, known as Cochilco. (Reporting by Fabian Andres Cambero; Writing by Isabel Woodford; Editing by Anthony Esposito) ((Valentine.Hilaire@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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SANTIAGO, April 4 (Reuters) - Chile's total copper production dropped 3.4% in February to 381,000 tonnes, as output from state-owned giant Codelco fell 14.8% year on year to 105,400 tonnes, the Chilean Copper Commission said on Tuesday. Production from BHP-controlled mine Escondida rose 4% to 72,700 tonnes, while Collahuasi, a joint venture of Anglo American and Glencore, produced 44,100 tonnes, a 6% annual decrease, said the commission, known as Cochilco. (Reporting by Fabian Andres Cambero; Writing by Isabel Woodford; Editing by Anthony Esposito) ((Valentine.Hilaire@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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SANTIAGO, April 4 (Reuters) - Chile's total copper production dropped 3.4% in February to 381,000 tonnes, as output from state-owned giant Codelco fell 14.8% year on year to 105,400 tonnes, the Chilean Copper Commission said on Tuesday. Production from BHP-controlled mine Escondida rose 4% to 72,700 tonnes, while Collahuasi, a joint venture of Anglo American and Glencore, produced 44,100 tonnes, a 6% annual decrease, said the commission, known as Cochilco. (Reporting by Fabian Andres Cambero; Writing by Isabel Woodford; Editing by Anthony Esposito) ((Valentine.Hilaire@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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2755.0
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2023-04-03 00:00:00 UTC
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American Airlines pilots 'near' reaching agreement on new contract - union memo
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AAL
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https://www.nasdaq.com/articles/american-airlines-pilots-near-reaching-agreement-on-new-contract-union-memo
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nan
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Adds more details, background
CHICAGO, April 3 (Reuters) - Pilots at American Airlines AAL.O are "near" reaching a comprehensive agreement in principle with the company on a new contract, according to a pilot union memo seen by Reuters.
In an update to its members after three weeks of "intense" negotiations, the Allied Pilots Association (APA) said every aspect of the new contract has been "placed on the table, discussed, negotiated, and costed."
The union, which represents over 13,000 pilots at the Texas-based carrier, said the company has committed to "match" industry-leading compensation for pilots and provide resources to improve the quality of life and work rules.
American pilots, who received their last pay increase in 2019, have been protesting for a new contract. The APA is holding a strike authorization vote this month to put pressure on the company to fast-track the contract negotiations.
Both American Airlines and United Airlines UAL.O have promised an "industry-leading" contract to their pilots.
They are now facing calls from their unions to deliver on that promise after pilots at rival Delta Air Lines DAL.Nratified a new contract that includes over $7 billion in cumulative increases in pay and benefits over four years.
"Every day that passes is a day our pilots labor under a sub-standard agreement that is problematic to both our careers and the certainty of American Airlines' operation," the APA said.
American Airlines Chief Executive Robert Isom has said the company is prepared to match the pay rates and profit-sharing formula that Delta has provided in its new pilot contract.
(Reporting by Rajesh Kumar Singh; editing by Jonathan Oatis)
((rajeshkumar.singh@thomsonreuters.com; +1-312-408-8537; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds more details, background CHICAGO, April 3 (Reuters) - Pilots at American Airlines AAL.O are "near" reaching a comprehensive agreement in principle with the company on a new contract, according to a pilot union memo seen by Reuters. The APA is holding a strike authorization vote this month to put pressure on the company to fast-track the contract negotiations. They are now facing calls from their unions to deliver on that promise after pilots at rival Delta Air Lines DAL.Nratified a new contract that includes over $7 billion in cumulative increases in pay and benefits over four years.
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Adds more details, background CHICAGO, April 3 (Reuters) - Pilots at American Airlines AAL.O are "near" reaching a comprehensive agreement in principle with the company on a new contract, according to a pilot union memo seen by Reuters. The union, which represents over 13,000 pilots at the Texas-based carrier, said the company has committed to "match" industry-leading compensation for pilots and provide resources to improve the quality of life and work rules. Both American Airlines and United Airlines UAL.O have promised an "industry-leading" contract to their pilots.
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Adds more details, background CHICAGO, April 3 (Reuters) - Pilots at American Airlines AAL.O are "near" reaching a comprehensive agreement in principle with the company on a new contract, according to a pilot union memo seen by Reuters. Both American Airlines and United Airlines UAL.O have promised an "industry-leading" contract to their pilots. American Airlines Chief Executive Robert Isom has said the company is prepared to match the pay rates and profit-sharing formula that Delta has provided in its new pilot contract.
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Adds more details, background CHICAGO, April 3 (Reuters) - Pilots at American Airlines AAL.O are "near" reaching a comprehensive agreement in principle with the company on a new contract, according to a pilot union memo seen by Reuters. In an update to its members after three weeks of "intense" negotiations, the Allied Pilots Association (APA) said every aspect of the new contract has been "placed on the table, discussed, negotiated, and costed." The union, which represents over 13,000 pilots at the Texas-based carrier, said the company has committed to "match" industry-leading compensation for pilots and provide resources to improve the quality of life and work rules.
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2756.0
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2023-04-03 00:00:00 UTC
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American Airlines will cut some New York flights this summer
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AAL
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https://www.nasdaq.com/articles/american-airlines-will-cut-some-new-york-flights-this-summer
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nan
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nan
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By David Shepardson
WASHINGTON, April 3 (Reuters) - American Airlines AAL.O said Monday it will join other major carriers in temporarily cutting some New York City area flights this summer after the Federal Aviation Administration temporarily relaxed some minimum flight requirements.
American is reducing the frequency of flights between LaGuardia Airportand Dallas, Miami, Kansas City and St. Louis as well as the Newark Liberty International Airport-Chicago route.
Last month, the FAA agreed to requests of Delta Air Lines DAL.N and United Airlines UAL.O to temporarily return up to 10% of slots and flight timings at congested New York LaGuardia and John F. Kennedy International Airport, Newark and Ronald Reagan Washington National Airport, citing air traffic controller shortages. The carriers agreed to cuts on the condition they not be backfilled.
Air travelers could face another rough summer as carriers struggle to meet burgeoning flight demands after the pandemic.
JetBlue Airways JBLU.O said after the FAA announcement it "began reviewing options for reducing our flight schedule at JFK and LaGuardia airports to help ease constraints on the system."
The airline added "it is disappointing to reduce flights for customers as they plan their summer holidays and as New York City works to rebound from the pandemic."
The FAA said it will give 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." Airlines can lose slots at congested airports if they do not use them at least 80% of the time.
The FAA expects airlines to minimize impacts on passengers, including operating larger aircraft.
Airlines have already cut about 10% of scheduled flights this spring to address performance issues, said trade group Airlines for America.
The FAA said staffing at the New York Terminal Radar Approach Control remain below targets. Last summer air traffic control staffing was a factor in delays of 41,498 flights from New York airports.
The agency said it will reassign about 100 square miles of Newark airspace to the Philadelphia Terminal Radar Approach Control later this year to address staffing issues.
(Reporting by David Shepardson; Editing by Richard Chang)
((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, April 3 (Reuters) - American Airlines AAL.O said Monday it will join other major carriers in temporarily cutting some New York City area flights this summer after the Federal Aviation Administration temporarily relaxed some minimum flight requirements. American is reducing the frequency of flights between LaGuardia Airportand Dallas, Miami, Kansas City and St. Louis as well as the Newark Liberty International Airport-Chicago route. JetBlue Airways JBLU.O said after the FAA announcement it "began reviewing options for reducing our flight schedule at JFK and LaGuardia airports to help ease constraints on the system."
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By David Shepardson WASHINGTON, April 3 (Reuters) - American Airlines AAL.O said Monday it will join other major carriers in temporarily cutting some New York City area flights this summer after the Federal Aviation Administration temporarily relaxed some minimum flight requirements. Last month, the FAA agreed to requests of Delta Air Lines DAL.N and United Airlines UAL.O to temporarily return up to 10% of slots and flight timings at congested New York LaGuardia and John F. Kennedy International Airport, Newark and Ronald Reagan Washington National Airport, citing air traffic controller shortages. The FAA said staffing at the New York Terminal Radar Approach Control remain below targets.
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By David Shepardson WASHINGTON, April 3 (Reuters) - American Airlines AAL.O said Monday it will join other major carriers in temporarily cutting some New York City area flights this summer after the Federal Aviation Administration temporarily relaxed some minimum flight requirements. Last month, the FAA agreed to requests of Delta Air Lines DAL.N and United Airlines UAL.O to temporarily return up to 10% of slots and flight timings at congested New York LaGuardia and John F. Kennedy International Airport, Newark and Ronald Reagan Washington National Airport, citing air traffic controller shortages. The FAA said it will give 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."
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By David Shepardson WASHINGTON, April 3 (Reuters) - American Airlines AAL.O said Monday it will join other major carriers in temporarily cutting some New York City area flights this summer after the Federal Aviation Administration temporarily relaxed some minimum flight requirements. Last month, the FAA agreed to requests of Delta Air Lines DAL.N and United Airlines UAL.O to temporarily return up to 10% of slots and flight timings at congested New York LaGuardia and John F. Kennedy International Airport, Newark and Ronald Reagan Washington National Airport, citing air traffic controller shortages. The FAA said it will give 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."
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2757.0
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2023-04-03 00:00:00 UTC
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2 Stocks to Buy for the Spring Season
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AAL
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https://www.nasdaq.com/articles/2-stocks-to-buy-for-the-spring-season
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nan
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nan
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With April here, several companies will be beneficiaries of this year's spring season. Even better, their stocks appear attractively valued considering the boost they may receive.
Let's take a look at two such stocks that investors may want to consider buying right now.
American Airlines (AAL)
With warmer weather on the way, American Airlines Stock (AAL) is worthy of consideration sporting a Zacks Rank #2 (Buy).
As the largest airline in the U.S. in terms of passangers, American Airlines should benefit as we get closer to peak travel season which is typically May-October. Furthermore, travel is expected to be higher in 2023 with pent-up demand lingering from the pandemic.
Notably, American Airlines’ earnings estimates have continued to trend higher in the last week. More impressive, fiscal 2023 earnings estimates have now climbed 38% over the last 90 days with FY24 EPS estimates up 9%.
Image Source: Zacks Investment Research
American Airlines earnings are now forecasted to rebound and soar 352% this year at $2.26 per share compared to EPS of $0.50 in 2022. Fiscal 2024 earnings are expected to jump another 21% to $2.74 per share.
Sales are projected to be up 9% in FY23 and rise another 3% in FY24 to $55.53 billion. Plus, fiscal 2024 sales would be 21% above pre-pandemic levels with 2019 sales at $45.76 billion.
Image Source: Zacks Investment Research
What makes American Airlines’ recovery more intriguing is the company’s price-to-earnings valuation. Shares of AAL trade at $14 and just 6.5X forward earnings. This is nicely below the industry average of 12.1X and the S&P 500’s 19X.
American Airlines stock also trades 70% below its historical high of 21.1X and slightly beneath the median of 6.9X since its merger and formation with US Airways in 2013. Shares of AAL are up +13% year to date to top the S&P 500 and the Transportation-Airline Markets +7% performances.
Image Source: Zacks Investment Research
H&R Block (HRB)
Progressing through the spring, we will round out this year’s tax season on April 18 and H&R Block (HRB) stock could benefit. As a leading provider of tax preparation services H&R Block's stock also sports a Zacks Rank #2 (Buy) at the moment.
Earnings estimates revisions have trended higher over the last two months. H&R Block’s earnings are now expected to rise 10% in FY23 and jump another 10% in FY24 at $4.27 per share. On the top line, sales are forecasted to be up 2% this year and rise another 3% in FY24 to $3.65 billion.
Image Source: Zacks Investment Research
H&R Block’s P/E valuation also sticks out at the moment. Shares of HRB trade at $35 and 9.1X forward earnings which is below its industry average of 11X and the benchmark. H&R Block stock also trades 54% below its decade-long high of 19.7X and at a 31% discount to the median of 13.2X.
H&R Block stock is down -3% YTD to slightly trail the Consumer Services-Miscellaneous Markets +1% and the S&P 500. However, this year's slight drop may be a buying opportunity as shares of HRB are still up a stellar +160% over the last three years to largely outperform the benchmark’s +55% and its Zack Subindustry’s -22%.
Image Source: Zacks Investment Research
Takeaway
Rising earnings estimates are a great sign that business should be stronger for American Airlines and H&R Block as we progress through the spring. This should also translate into more upside in American Airlines and H&R Block stock, especially when considering their attractive P/E valuations.
Furthermore, at their current levels, both American Airlines and H&R Block look like viable investments for 2023 and beyond considering their solid outlooks.
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H&R Block, Inc. (HRB) : 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) With warmer weather on the way, American Airlines Stock (AAL) is worthy of consideration sporting a Zacks Rank #2 (Buy). Shares of AAL trade at $14 and just 6.5X forward earnings. Shares of AAL are up +13% year to date to top the S&P 500 and the Transportation-Airline Markets +7% performances.
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Click to get this free report H&R Block, Inc. (HRB) : 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) With warmer weather on the way, American Airlines Stock (AAL) is worthy of consideration sporting a Zacks Rank #2 (Buy). Shares of AAL trade at $14 and just 6.5X forward earnings.
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Click to get this free report H&R Block, Inc. (HRB) : 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) With warmer weather on the way, American Airlines Stock (AAL) is worthy of consideration sporting a Zacks Rank #2 (Buy). Shares of AAL trade at $14 and just 6.5X forward earnings.
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American Airlines (AAL) With warmer weather on the way, American Airlines Stock (AAL) is worthy of consideration sporting a Zacks Rank #2 (Buy). Shares of AAL trade at $14 and just 6.5X forward earnings. Shares of AAL are up +13% year to date to top the S&P 500 and the Transportation-Airline Markets +7% performances.
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2758.0
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2023-04-03 00:00:00 UTC
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Monday Sector Laggards: Technology & Communications, Industrial
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AAL
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https://www.nasdaq.com/articles/monday-sector-laggards%3A-technology-communications-industrial
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nan
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nan
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In afternoon trading on Monday, Technology & Communications stocks are the worst performing sector, showing a 1.0% loss. Within the sector, First Solar Inc (Symbol: FSLR) and Etsy Inc (Symbol: ETSY) are two of the day's laggards, showing a loss of 3.9% and 3.8%, respectively. Among technology ETFs, one ETF following the sector is the Technology Select Sector SPDR ETF (Symbol: XLK), which is down 0.9% on the day, and up 21.68% year-to-date. First Solar Inc, meanwhile, is up 43.30% year-to-date, and Etsy Inc, is down 5.64% year-to-date. FSLR makes up approximately 0.3% of the underlying holdings of XLK.
The next worst performing sector is the Industrial sector, showing a 0.6% loss. Among large Industrial stocks, Paychex Inc (Symbol: PAYX) and American Airlines Group Inc (Symbol: AAL) are the most notable, showing a loss of 3.2% and 2.7%, respectively. One ETF closely tracking Industrial stocks is the Industrial Select Sector SPDR ETF (XLI), which is down 0.1% in midday trading, and up 3.14% on a year-to-date basis. Paychex Inc, meanwhile, is down 3.52% year-to-date, and American Airlines Group Inc is up 12.64% year-to-date. Combined, PAYX and AAL make up approximately 1.5% of the underlying holdings of XLI.
Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom:
Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Monday. As you can see, two sectors are up on the day, while five sectors are down.
SECTOR % CHANGE
Energy +3.9%
Materials +0.3%
Services 0.0%
Healthcare -0.0%
Consumer Products -0.2%
Utilities -0.4%
Financial -0.4%
Industrial -0.6%
Technology & Communications -1.0%
10 ETFs With Stocks That Insiders Are Buying »
Also see:
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SCYX Stock Predictions
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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Among large Industrial stocks, Paychex Inc (Symbol: PAYX) and American Airlines Group Inc (Symbol: AAL) are the most notable, showing a loss of 3.2% and 2.7%, respectively. Combined, PAYX and AAL make up approximately 1.5% of the underlying holdings of XLI. In afternoon trading on Monday, Technology & Communications stocks are the worst performing sector, showing a 1.0% loss.
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Among large Industrial stocks, Paychex Inc (Symbol: PAYX) and American Airlines Group Inc (Symbol: AAL) are the most notable, showing a loss of 3.2% and 2.7%, respectively. Combined, PAYX and AAL make up approximately 1.5% of the underlying holdings of XLI. In afternoon trading on Monday, Technology & Communications stocks are the worst performing sector, showing a 1.0% loss.
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Among large Industrial stocks, Paychex Inc (Symbol: PAYX) and American Airlines Group Inc (Symbol: AAL) are the most notable, showing a loss of 3.2% and 2.7%, respectively. Combined, PAYX and AAL make up approximately 1.5% of the underlying holdings of XLI. Among technology ETFs, one ETF following the sector is the Technology Select Sector SPDR ETF (Symbol: XLK), which is down 0.9% on the day, and up 21.68% year-to-date.
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Among large Industrial stocks, Paychex Inc (Symbol: PAYX) and American Airlines Group Inc (Symbol: AAL) are the most notable, showing a loss of 3.2% and 2.7%, respectively. Combined, PAYX and AAL make up approximately 1.5% of the underlying holdings of XLI. In afternoon trading on Monday, Technology & Communications stocks are the worst performing sector, showing a 1.0% loss.
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2759.0
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2023-04-03 00:00:00 UTC
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Airline Industry Appreciates 7.1% in Q1: More Upside Ahead?
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AAL
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https://www.nasdaq.com/articles/airline-industry-appreciates-7.1-in-q1%3A-more-upside-ahead
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nan
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nan
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It is no secret that the airline industry was one of the worst-hit corners during the pandemic. After being battered in 2020 and 2021, with passenger revenues shrinking drastically, the fortunes of the industry players turned for the better in 2022 as air traffic (particularly for leisure) started bouncing back following the easing of the pandemic-induced restrictions.
The scenario has brightened further this year with business travel making a recovery. Leisure travel trends are strong as well with vacationers making up for lost time. The resurgence in air-travel demand is solely responsible for the Zacks Airline industry gaining 7.1% in first-quarter 2023 (January-March period) despite headwinds like inflation-induced economic uncertainty and high fuel costs.
The bright scenario is highlighted by data provided by the Transportation Security Administration (TSA) with respect to passenger volumes. In the January-March period this year, TSA checkpoint numbers revealed that passenger volumes not only surpassed 2022 levels but also exceeded 2019 (pre-coronavirus) numbers on many days.
Airlines Likely to Fly High Throughout 2023
The buoyancy with respect to passenger volumes, witnessed in the first quarter of the year, is likely to remain throughout the year. In fact, the scenario is likely to get brighter in the United States in the upcoming summer season. Many U.S. airlines are adjusting their summer schedules to meet the anticipated demand swell.
Passenger volumes are high not only in the United States but globally. This led the International Air Transport Association (IATA) to expect airlines to return to profitability this year. Net profits for airlines across the globe are likely to be $4.7 billion in 2023.
With people again taking to the skies, passenger revenues, which account for the bulk of the top line for most airlines, are likely to regain their lost glory in 2023. Per IATA, passenger revenues for the current year are anticipated to be $522 billion (85.5% of 2019 levels).
The focus of airlines on boosting cargo revenues is an added positive. IATA anticipates 2023 cargo revenues to be around $150 billion, suggesting an increase of nearly $48.6 billion from the pre-pandemic level of 2019.
3 Airline Stocks to Keep a Tab on
Given this buoyant scenario, we believe that investors interested in the Zacks Airline industry should keep stocks like American Airlines AAL, Copa Holdings CPA and JetBlue Airways JBLU on their watchlist for healthy returns. Driven by the stronger-than-expected recovery in air-travel demand, all the abovementioned stocks have outperformed the industry with respect to price in the first quarter of this year.
Image Source: Zacks Investment Research
Copa Holdings is benefiting from the improvement in air-travel demand. In fourth-quarter 2022, passenger revenues increased 29.5%, owing to higher yields. CPA’s focus on its cargo segment is encouraging too. In fourth-quarter 2022, cargo and mail revenues grew 69%, owing to higher cargo volumes and yields. Copa Holdings' fleet modernization and cost-management efforts are commendable as well.
The abovementioned tailwinds are likely to continue aiding this Latin American carrier, currently sporting a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for current-year earnings has been revised 12.3% upward over the past 60 days. CPA has a Growth Score of A.
You can see the complete list of today’s Zacks #1 Rank stocks here.
American Airlines, currently carrying a Zacks Rank of 2 (Buy), is seeing steady recovery in domestic air-travel demand. AAL has an expected earnings growth rate of more than 100% for the current year.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 10.8% over the past 60 days. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
JetBlue Airways is benefiting from the buoyant air-travel-demand scenario and fleet-upgrade efforts. With air-travel demand expected to remain strong going forward as well, management expects total revenues for 2023 to increase year over year in the high single-digit to low double-digit range.
The Zacks Consensus Estimate for current-year earnings at JetBlue has been revised 9.4% upward over the past 60 days. JBLU, presently, has a Growth Score of B and carries a Zacks Rank #3 (Hold).
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Download Oil Market on Fire today, absolutely free.
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JetBlue Airways Corporation (JBLU) : 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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3 Airline Stocks to Keep a Tab on Given this buoyant scenario, we believe that investors interested in the Zacks Airline industry should keep stocks like American Airlines AAL, Copa Holdings CPA and JetBlue Airways JBLU on their watchlist for healthy returns. AAL has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for AAL’s current-year earnings has improved 10.8% over the past 60 days.
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3 Airline Stocks to Keep a Tab on Given this buoyant scenario, we believe that investors interested in the Zacks Airline industry should keep stocks like American Airlines AAL, Copa Holdings CPA and JetBlue Airways JBLU on their watchlist for healthy returns. Click to get this free report JetBlue Airways Corporation (JBLU) : 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. AAL has an expected earnings growth rate of more than 100% for the current year.
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3 Airline Stocks to Keep a Tab on Given this buoyant scenario, we believe that investors interested in the Zacks Airline industry should keep stocks like American Airlines AAL, Copa Holdings CPA and JetBlue Airways JBLU on their watchlist for healthy returns. Click to get this free report JetBlue Airways Corporation (JBLU) : 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. AAL has an expected earnings growth rate of more than 100% for the current year.
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3 Airline Stocks to Keep a Tab on Given this buoyant scenario, we believe that investors interested in the Zacks Airline industry should keep stocks like American Airlines AAL, Copa Holdings CPA and JetBlue Airways JBLU on their watchlist for healthy returns. AAL has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for AAL’s current-year earnings has improved 10.8% over the past 60 days.
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2760.0
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2023-04-03 00:00:00 UTC
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Is American Airlines (AAL) Stock Undervalued Right Now?
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AAL
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https://www.nasdaq.com/articles/is-american-airlines-aal-stock-undervalued-right-now
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nan
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nan
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is American Airlines (AAL). AAL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.30, which compares to its industry's average of 9.56. Over the last 12 months, AAL's Forward P/E has been as high as 9,493.45 and as low as -3,032.07, with a median of 11.59.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AAL has a P/S ratio of 0.2. This compares to its industry's average P/S of 0.44.
Finally, we should also recognize that AAL has a P/CF ratio of 4.27. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AAL's P/CF compares to its industry's average P/CF of 9.60. AAL's P/CF has been as high as 34.45 and as low as -305.42, with a median of 11.85, all within the past year.
Investors could also keep in mind International Consolidated Airlines Group (ICAGY), an Transportation - Airline stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Furthermore, International Consolidated Airlines Group holds a P/B ratio of 1.09 and its industry's price-to-book ratio is 4.41. ICAGY's P/B has been as high as 3.86, as low as 1.09, with a median of 1.35 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that American Airlines and International Consolidated Airlines Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AAL and ICAGY feels like a great value stock at the moment.
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
International Consolidated Airlines Group SA (ICAGY) : 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 company value investors might notice is American Airlines (AAL). AAL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. Over the last 12 months, AAL's Forward P/E has been as high as 9,493.45 and as low as -3,032.07, with a median of 11.59.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY) : Free Stock Analysis Report To read this article on Zacks.com click here. One company value investors might notice is American Airlines (AAL). AAL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY) : Free Stock Analysis Report To read this article on Zacks.com click here. One company value investors might notice is American Airlines (AAL). AAL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
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AAL has a P/S ratio of 0.2. One company value investors might notice is American Airlines (AAL). AAL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
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2761.0
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2023-04-03 00:00:00 UTC
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Are Transportation Stocks Lagging American Airlines (AAL) This Year?
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AAL
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https://www.nasdaq.com/articles/are-transportation-stocks-lagging-american-airlines-aal-this-year-0
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nan
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nan
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For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. American Airlines (AAL) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.
American Airlines is a member of the Transportation sector. This group includes 132 individual stocks and currently holds a Zacks Sector Rank of #13. 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. American Airlines is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AAL's full-year earnings has moved 48.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that AAL has returned about 16% since the start of the calendar year. In comparison, Transportation companies have returned an average of 7.2%. 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 FedEx (FDX). The stock has returned 31.9% year-to-date.
For FedEx, the consensus EPS estimate for the current year has increased 10.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, American Airlines belongs to the Transportation - Airline industry, a group that includes 29 individual companies and currently sits at #40 in the Zacks Industry Rank. On average, stocks in this group have gained 7.5% this year, meaning that AAL is performing better in terms of year-to-date returns.
In contrast, FedEx falls under the Transportation - Air Freight and Cargo industry. Currently, this industry has 4 stocks and is ranked #184. Since the beginning of the year, the industry has moved +16.8%.
Investors interested in the Transportation sector may want to keep a close eye on American Airlines and FedEx as they attempt to continue their solid performance.
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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
FedEx Corporation (FDX) : 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 a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Within the past quarter, the Zacks Consensus Estimate for AAL's full-year earnings has moved 48.9% higher. Our latest available data shows that AAL has returned about 16% since the start of the calendar year.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report FedEx Corporation (FDX) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Within the past quarter, the Zacks Consensus Estimate for AAL's full-year earnings has moved 48.9% higher.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report FedEx Corporation (FDX) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Within the past quarter, the Zacks Consensus Estimate for AAL's full-year earnings has moved 48.9% higher.
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American Airlines (AAL) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Within the past quarter, the Zacks Consensus Estimate for AAL's full-year earnings has moved 48.9% higher. Our latest available data shows that AAL has returned about 16% since the start of the calendar year.
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2762.0
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2023-04-03 00:00:00 UTC
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US STOCKS-S&P 500, Nasdaq set to open lower as oil output cut stokes inflation worries
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AAL
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https://www.nasdaq.com/articles/us-stocks-sp-500-nasdaq-set-to-open-lower-as-oil-output-cut-stokes-inflation-worries
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nan
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nan
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By Ankika Biswas and Amruta Khandekar
April 3 (Reuters) - The S&P 500 and the Nasdaq were set to open lower on Monday as rising oil prices brought back inflation worries and fueled bets of another interest rate hike by the Federal Reserve in its next meeting.
Saudi Arabia and other OPEC+ oil producers announced further output cuts of around 1.16 million barrels per day, threatening an immediate rise in prices.
This comes just days after cooling inflation raised hopes that the Fed could soon end its aggressive monetary tightening.
"We could see inflation bottom out a little bit higher than anticipated, which may mean that the Fed continues their rate hiking a lot longer and further than many currently expect," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest.
Major technology stocks and other growth shares such as Apple Inc AAPL.O, Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O fell between 0.5% and 1.1% in premarket trade tracking higher U.S. Treasury yields.
However, a 4.4% gain in energy major Chevron Corp CVX.Nand a 3% rise in UnitedHealth Group Inc UNH.N following a softer cut to 2024 Medicare Advantage payments by the United States were set to help the Dow Jones .DJI gain at the open.
Bets by traders were largely tilted towards a 25-basis point rate hike in May, with odds of a pause at 46.3%, according to CME Group's Fedwatch tool.
U.S. stocks have weathered turbulence in the global banking sector to notch gains in the first quarter, with the S&P 500 .SPX jumping 7% and bouncing back from a near 20% drop in 2022.
The tech-heavy Nasdaq .IXIC recorded its strongest first-quarter jump of 17% since mid-2020.
"We've seen the tech sector rally so hard and so far above everything else that we do expect some profit taking during the month of April," Nolte said.
Investors will closely monitor S&P Global and ISM manufacturing PMI data for March on Monday, with the latter expected to show manufacturing activity weakened in March.
The first-quarter earnings season is also around the corner, with companies expected to start reporting quarterly results in the next few weeks.
At 7:58 a.m. ET, Dow e-minis 1YMcv1 were up 128 points, or 0.38%, S&P 500 e-minis EScv1 were down 3.5 points, or 0.08%, and Nasdaq 100 e-minis NQcv1 were down 91.25 points, or 0.69%.
Among other stocks, shares of American Airlines Group Inc AAL.O and Delta Air Lines Inc DAL.Nedged lower on rising crude prices.
McDonald's Corp MCD.N rose 0.5% after a report said the burger chain is temporarily closing its U.S. offices this week and preparing to inform corporate employees about layoffs.
(Reporting by Ankika Biswas and Amruta Khandekar in Bengaluru; Editing by Shounak Dasgupta and Arun Koyyur)
((Ankika.Biswas@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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Among other stocks, shares of American Airlines Group Inc AAL.O and Delta Air Lines Inc DAL.Nedged lower on rising crude prices. By Ankika Biswas and Amruta Khandekar April 3 (Reuters) - The S&P 500 and the Nasdaq were set to open lower on Monday as rising oil prices brought back inflation worries and fueled bets of another interest rate hike by the Federal Reserve in its next meeting. "We could see inflation bottom out a little bit higher than anticipated, which may mean that the Fed continues their rate hiking a lot longer and further than many currently expect," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest.
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Among other stocks, shares of American Airlines Group Inc AAL.O and Delta Air Lines Inc DAL.Nedged lower on rising crude prices. By Ankika Biswas and Amruta Khandekar April 3 (Reuters) - The S&P 500 and the Nasdaq were set to open lower on Monday as rising oil prices brought back inflation worries and fueled bets of another interest rate hike by the Federal Reserve in its next meeting. ET, Dow e-minis 1YMcv1 were up 128 points, or 0.38%, S&P 500 e-minis EScv1 were down 3.5 points, or 0.08%, and Nasdaq 100 e-minis NQcv1 were down 91.25 points, or 0.69%.
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Among other stocks, shares of American Airlines Group Inc AAL.O and Delta Air Lines Inc DAL.Nedged lower on rising crude prices. By Ankika Biswas and Amruta Khandekar April 3 (Reuters) - The S&P 500 and the Nasdaq were set to open lower on Monday as rising oil prices brought back inflation worries and fueled bets of another interest rate hike by the Federal Reserve in its next meeting. However, a 4.4% gain in energy major Chevron Corp CVX.Nand a 3% rise in UnitedHealth Group Inc UNH.N following a softer cut to 2024 Medicare Advantage payments by the United States were set to help the Dow Jones .DJI gain at the open.
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Among other stocks, shares of American Airlines Group Inc AAL.O and Delta Air Lines Inc DAL.Nedged lower on rising crude prices. By Ankika Biswas and Amruta Khandekar April 3 (Reuters) - The S&P 500 and the Nasdaq were set to open lower on Monday as rising oil prices brought back inflation worries and fueled bets of another interest rate hike by the Federal Reserve in its next meeting. Bets by traders were largely tilted towards a 25-basis point rate hike in May, with odds of a pause at 46.3%, according to CME Group's Fedwatch tool.
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2763.0
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2023-04-03 00:00:00 UTC
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Here's Why Investors Should Retain Air Lease (AL) Stock Now
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AAL
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https://www.nasdaq.com/articles/heres-why-investors-should-retain-air-lease-al-stock-now
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nan
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nan
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Air Lease Corporation (AL) is benefiting from its steady fleet growth and investor-friendly steps. However, low liquidity is a headwind.
Factors Favoring AL
Steady growth in fleet is driving Air Lease’s top line (up 11% year over year in 2022). The company purchased 60 new aircraft in 2022. As of Dec 31, 2022, Air Lease’s fleet included 417 owned and 85 managed aircraft.
AL had commitments to purchase 398 aircraft from Boeing and Airbus for delivery through 2029, as of the same date. The estimated aggregate of the commitment is $25.5 billion.
We are impressed by Air Lease’s endeavors to reward its shareholders.The company has an impressive dividend payment history. In November 2022, the company’s board approved a dividend hike of approximately 8.1% to 20 cents per share (annually: 80 cents). This marked the company’s 10th dividend increase since February 2013, when it began distributing dividends. The company is also active on the buyback front.
Key Risk
Air Lease’s liquidity position is a concern. The current ratio (a measure of liquidity) at the end of 2022 was 1.12, well below of 1.81 at 2021 end. A decline in current ratio implies a reduction in the ability to generate cash.
Zacks Rank & Key Picks
Air Lease currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and GATX Corporation (GATX).
American Airlines, currently carrying a Zacks Rank #2 (Buy), is benefiting from the improved air-travel-demand situation. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
For first-quarter and full-year 2023, AAL’s earnings are expected to register 100.4% and 332% growth, respectively, on a year-over-year basis.
GATX Corporation carries a Zacks Rank #2 at present. The gradual improvement in the North American railcar leasing market is a huge positive for GATX. Management expects recovery in the North American railcar leasing market to continue in 2023.
For full-year 2023, GATX’s earnings are expected to register 10.5% growth on a year-over-year basis.
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Air Lease Corporation (AL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
GATX Corporation (GATX) : 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 GATX Corporation (GATX). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. For first-quarter and full-year 2023, AAL’s earnings are expected to register 100.4% and 332% growth, respectively, on a year-over-year basis.
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Click to get this free report Air Lease Corporation (AL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report GATX Corporation (GATX) : 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 GATX Corporation (GATX). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and GATX Corporation (GATX). Click to get this free report Air Lease Corporation (AL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report GATX Corporation (GATX) : Free Stock Analysis Report To read this article on Zacks.com click here. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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Click to get this free report Air Lease Corporation (AL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report GATX Corporation (GATX) : 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 GATX Corporation (GATX). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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2764.0
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2023-04-03 00:00:00 UTC
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US STOCKS-Wall Street mixed as inflation concerns resurface, energy stocks jump
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-street-mixed-as-inflation-concerns-resurface-energy-stocks-jump
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nan
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nan
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By Ankika Biswas and Amruta Khandekar
April 3 (Reuters) - U.S. stock indexes were mixed on Monday as rising oil prices stoked concerns about more interest rate hikes from the Federal Reserve to temper inflation, while a jump in shares of energy firms helped stem losses.
Saudi Arabia and other OPEC+ oil producers announced further output cuts of around 1.16 million barrels per day, threatening an immediate rise in prices.
This comes just days after cooling inflation raised hopes that the Fed could soon end its aggressive monetary tightening.
Major technology stocks and other growth shares such as Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O fell between 0.8% and 1.2%, pressured by higher U.S. Treasury yields.
This, coupled with a 3% fall in Tesla Inc TSLA.O after posting modest quarter-on-quarter sales growth, made information technology .SPLRCT, consumer discretionary .SPLRCD and communication services .SPLRCL sectors among the biggest losers on the S&P 500.
At 9:42 a.m. ET, the Dow Jones Industrial Average .DJI was up 220.42 points, or 0.66%, at 33,494.57, the S&P 500 .SPX was up 3.06 points, or 0.07%, at 4,112.37, and the Nasdaq Composite .IXIC was down 49.77 points, or 0.41%, at 12,172.14.
However, a 4.5% gain in energy major Chevron Corp CVX.N and a 2.7% rise in UnitedHealth Group Inc UNH.N helped the Dow Jones .DJI outshine its peers.
Shares of other energy firms such as Exxon Mobil Corp XOM.N and Occidental Petroleum Corp OXY.N were also up 4.9% and 6.0%, respectively, helping drive a 5.2% jump in the energy sector.
Bets by traders were largely tilted toward a 25-basis point rate hike in May, with odds of a pause at 39.1%, according to CME Group's Fedwatch tool.
"We could see inflation bottom out a little bit higher than anticipated, which may mean that the Fed continues their rate hiking a lot longer and further than many currently expect," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest.
U.S. stocks have weathered turbulence in the global banking sector to notch gains in the first quarter, with the S&P 500 .SPX jumping 7% and bouncing back from a near 20% drop in 2022.
The tech-heavy Nasdaq recorded its strongest first-quarter jump of 17% since mid-2020.
"We've seen the tech sector rally so hard and so far above everything else that we do expect some profit taking during the month of April," Nolte said.
A survey from S&P Global on Monday showed manufacturing activity stayed in contractionary territory in March.
Manufacturing data from the Institute for Supply Management is due later in the day.
The quarterly earnings season is also around the corner, with companies expected to start reporting results in the next few weeks.
Among other stocks, shares of American Airlines Group Inc AAL.O and Delta Air Lines Inc DAL.N edged 0.6% and 1.3% lower on rising crude prices.
Advancing issues outnumbered decliners for a 1.50-to-1 ratio on the NYSE and a 1.03-to-1 ratio on the Nasdaq.
The S&P index recorded seven new 52-week highs and no new low, while the Nasdaq recorded 40 new highs and 28 new lows.
(Reporting by Ankika Biswas and Amruta Khandekar in Bengaluru; Editing by Arun Koyyur and Shounak Dasgupta)
((Ankika.Biswas@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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Among other stocks, shares of American Airlines Group Inc AAL.O and Delta Air Lines Inc DAL.N edged 0.6% and 1.3% lower on rising crude prices. By Ankika Biswas and Amruta Khandekar April 3 (Reuters) - U.S. stock indexes were mixed on Monday as rising oil prices stoked concerns about more interest rate hikes from the Federal Reserve to temper inflation, while a jump in shares of energy firms helped stem losses. This, coupled with a 3% fall in Tesla Inc TSLA.O after posting modest quarter-on-quarter sales growth, made information technology .SPLRCT, consumer discretionary .SPLRCD and communication services .SPLRCL sectors among the biggest losers on the S&P 500.
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Among other stocks, shares of American Airlines Group Inc AAL.O and Delta Air Lines Inc DAL.N edged 0.6% and 1.3% lower on rising crude prices. By Ankika Biswas and Amruta Khandekar April 3 (Reuters) - U.S. stock indexes were mixed on Monday as rising oil prices stoked concerns about more interest rate hikes from the Federal Reserve to temper inflation, while a jump in shares of energy firms helped stem losses. Major technology stocks and other growth shares such as Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O fell between 0.8% and 1.2%, pressured by higher U.S. Treasury yields.
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Among other stocks, shares of American Airlines Group Inc AAL.O and Delta Air Lines Inc DAL.N edged 0.6% and 1.3% lower on rising crude prices. By Ankika Biswas and Amruta Khandekar April 3 (Reuters) - U.S. stock indexes were mixed on Monday as rising oil prices stoked concerns about more interest rate hikes from the Federal Reserve to temper inflation, while a jump in shares of energy firms helped stem losses. Shares of other energy firms such as Exxon Mobil Corp XOM.N and Occidental Petroleum Corp OXY.N were also up 4.9% and 6.0%, respectively, helping drive a 5.2% jump in the energy sector.
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Among other stocks, shares of American Airlines Group Inc AAL.O and Delta Air Lines Inc DAL.N edged 0.6% and 1.3% lower on rising crude prices. By Ankika Biswas and Amruta Khandekar April 3 (Reuters) - U.S. stock indexes were mixed on Monday as rising oil prices stoked concerns about more interest rate hikes from the Federal Reserve to temper inflation, while a jump in shares of energy firms helped stem losses. Major technology stocks and other growth shares such as Amazon.com Inc AMZN.O, Microsoft Corp MSFT.O and Alphabet Inc GOOGL.O fell between 0.8% and 1.2%, pressured by higher U.S. Treasury yields.
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2765.0
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2023-03-30 00:00:00 UTC
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Pick Either American Airlines Stock Or Its Peer – Both May Offer Similar Returns
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AAL
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https://www.nasdaq.com/articles/pick-either-american-airlines-stock-or-its-peer-both-may-offer-similar-returns
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nan
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nan
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We believe that American Airlines stock (NASDAQ: AAL) and its peer Delta Air Lines stock (NYSE: DAL) will likely offer similar returns in the next three years. American Airlines is trading at 0.2x trailing revenues compared to 0.4x for Delta Airlines. Investors have assigned a higher multiple to Delta due to its superior revenue growth, as discussed below. If we look at stock returns, Delta Airlines, with -16% returns in the last twelve months, has fared marginally better than American Airlines, down 19%, and both have underperformed the broader S&P 500 index, down 13%. There is more to the comparison, and in the sections below, we discuss the possible returns for AAL and DAL. We compare a slew of factors, such as historical revenue growth, returns, and valuation, in an interactive dashboard analysis of American Airlines vs. Delta Air Lines: Which Stock Is A Better Bet? Parts of the analysis are summarized below.
1. Delta Air Lines’ Revenue Growth Is Better
Both companies posted strong sales growth over the last twelve months. Still, Delta’s revenue growth of 69% is slightly higher than 64% for American Airlines.
Even if we look at a longer time frame, Delta fares better, with its sales falling from $47 billion in 2019 to $17 billion in 2020 before rebounding to $51 billion in 2022. American Airlines saw its sales plunge to $17 billion in 2020, compared to $46 billion in 2019, and it surged to $49 billion in 2022.
The rise in revenues for both airlines over the recent years can be attributed to a rebound in air travel demand, with passenger traffic and ticket yield rising meaningfully in the last few years.
For perspective, American Airlines’ revenue passenger miles (RPM) surged 2.3x between 2020 and 2022, while passenger revenue per available seat mile (PRASM) rose 69%. In comparison, Delta’s RPM increased 2.7x, and PRASM grew 80% over the same period.
The demand for air travel is expected to remain high in the near term, boding well for both American Airlines and Delta Air Lines.
Our American Airlines Revenue Comparison and Delta Air Lines Revenue Comparison dashboards provide more insight into the companies’ sales.
Looking forward, Delta’s revenue is expected to grow faster than American Airlines in the next three years.
2. American Airlines Is More Profitable
American Airlines’ operating margin of 7% over the last twelve months is better than 4% for Delta. However, the latter’s operating margin has been superior pre-pandemic.
American Airlines’ operating margin stood at 9.1% in 2019, before the pandemic, and it fell to -53% in 2020, before recovering to 7.3% in 2022. In comparison, Delta’s operating margin was 13.2% in 2019, -91 in 2020, and 4.0% in 2022.
Delta’s free cash flow margin of 12.6% is also higher than the 4.4% for American Airlines.
Our American Airlines Operating Income Comparison and Delta Air Lines Operating Income Comparison dashboards have more details.
Looking at financial risk, both are comparable. American Airlines’ 393% debt as a percentage of equity is much higher than 117% for Delta, and its 14% cash as a percentage of assets is higher than 9% for the latter, implying that Delta has a better debt position, and American Airlines has more cash cushion.
3. The Net of It All
We see that American Airlines is more profitable, has more cash cushion, and is trading at a comparatively lower valuation multiple. On the other hand, Delta has seen superior revenue growth and has a better debt position.
Now, looking at prospects, using P/S as a base, due to high fluctuations in P/E and P/EBIT, we believe both American Airlines and Delta will likely offer similar returns over the next three years.
The table below summarizes our revenue and return expectations for both companies over the next three years and points to an expected return of 18% for American Airlines over this period vs. a 13% expected return for Delta stock, implying that investors can pick either of the two airlines for similar returns, based on Trefis Machine Learning analysis – American Airlines vs. Delta Air Lines – which also provides more details on how we arrive at these numbers.
While AAL and DAL may offer similar returns in the next three years, it is helpful to see how American Airlines’ Peers fare on metrics that matter. You will find other valuable comparisons for companies across industries at Peer Comparisons.
Furthermore, the Covid-19 crisis has created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised at how counter-intuitive the stock valuation is for FedEx vs. Amkor.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
Returns Mar 2023
MTD [1] 2023
YTD [1] 2017-23
Total [2]
AAL Return -13% 10% -70%
DAL Return -16% -2% -35%
S&P 500 Return 0% 4% 78%
Trefis Multi-Strategy Portfolio -3% 4% 228%
[1] Month-to-date and year-to-date as of 3/28/2023
[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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While AAL and DAL may offer similar returns in the next three years, it is helpful to see how American Airlines’ Peers fare on metrics that matter. We believe that American Airlines stock (NASDAQ: AAL) and its peer Delta Air Lines stock (NYSE: DAL) will likely offer similar returns in the next three years. There is more to the comparison, and in the sections below, we discuss the possible returns for AAL and DAL.
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We believe that American Airlines stock (NASDAQ: AAL) and its peer Delta Air Lines stock (NYSE: DAL) will likely offer similar returns in the next three years. There is more to the comparison, and in the sections below, we discuss the possible returns for AAL and DAL. While AAL and DAL may offer similar returns in the next three years, it is helpful to see how American Airlines’ Peers fare on metrics that matter.
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We believe that American Airlines stock (NASDAQ: AAL) and its peer Delta Air Lines stock (NYSE: DAL) will likely offer similar returns in the next three years. There is more to the comparison, and in the sections below, we discuss the possible returns for AAL and DAL. While AAL and DAL may offer similar returns in the next three years, it is helpful to see how American Airlines’ Peers fare on metrics that matter.
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We believe that American Airlines stock (NASDAQ: AAL) and its peer Delta Air Lines stock (NYSE: DAL) will likely offer similar returns in the next three years. There is more to the comparison, and in the sections below, we discuss the possible returns for AAL and DAL. While AAL and DAL may offer similar returns in the next three years, it is helpful to see how American Airlines’ Peers fare on metrics that matter.
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2766.0
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2023-03-30 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-4
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nan
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nan
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In the latest trading session, American Airlines (AAL) closed at $14.47, marking a +0.84% move from the previous day. This change outpaced the S&P 500's 0.57% gain on the day. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.33%.
Heading into today, shares of the world's largest airline had lost 10.48% over the past month, lagging the Transportation sector's loss of 1.63% and the S&P 500's gain of 1.72% 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 $0.01 per share. This would mark year-over-year growth of 100.43%. Our most recent consensus estimate is calling for quarterly revenue of $12.25 billion, up 37.63% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.16 per share and revenue of $53.57 billion, which would represent changes of +332% and +9.38%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for American Airlines. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 0.43% higher within the past month. American Airlines is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, American Airlines currently has a Forward P/E ratio of 6.66. For comparison, its industry has an average Forward P/E of 11.75, which means American Airlines is trading at a discount to the group.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 47, putting it in the top 19% 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.
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The world is increasingly focused on eliminating fossil fuels and ramping up use of renewable, clean energy sources. Hydrogen fuel cells, powered by the most abundant substance in the universe, could provide an unlimited amount of ultra-clean energy for multiple industries.
Our urgent special report reveals 4 hydrogen stocks primed for big gains - plus our other top clean energy stocks.
See Stocks Now
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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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In the latest trading session, American Airlines (AAL) closed at $14.47, marking a +0.84% move from the previous day. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Heading into today, shares of the world's largest airline had lost 10.48% over the past month, lagging the Transportation sector's loss of 1.63% and the S&P 500's gain of 1.72% in that time.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, American Airlines (AAL) closed at $14.47, marking a +0.84% move from the previous day. 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.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the latest trading session, American Airlines (AAL) closed at $14.47, marking a +0.84% move from the previous day. 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.
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In the latest trading session, American Airlines (AAL) closed at $14.47, marking a +0.84% move from the previous day. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines is currently sporting a Zacks Rank of #2 (Buy).
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2767.0
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2023-03-30 00:00:00 UTC
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Spirit Airlines (SAVE) Rides on Air Travel Demand Amid Cost Woes
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AAL
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https://www.nasdaq.com/articles/spirit-airlines-save-rides-on-air-travel-demand-amid-cost-woes
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nan
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nan
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Spirit Airlines, Inc.’s SAVE top line is benefiting from an improvement in air-travel demand, increased flight volume and higher operating yields. In response to the demand swell, the carrier has expanded its capacity.
In fourth-quarter 2022, the company’s capacity increased 12.1% year over year. The load factor (percentage of seats filled by passengers) increased 1.2 points to 81% in the fourth quarter. Total operating revenue per available seat miles jumped 25.7% to 10.81 cents in the reported quarter. The average yield increased 23.7% to 13.34 cents. Management expects first-quarter 2023 operating revenue per available seat miles to increase 23-24.5% year over year on strong demand.
In response to the gradually improving air-travel demand, Spirit Airlines is expanding its network. SAVE also intends to expand its fleet in response to the better air-travel demand scenario. It ended 2022 with 194 planes in its fleet, up 33.8% from 2019-end. SAVE expects to end 2023 and 2024 with fleet sizes of 206 and 227, respectively.
On the flip side,rising fuel costs do not bode well for the airline and are hurting its bottom line. Average fuel cost per gallon in the December-end quarter jumped 47.3% year over year to $3.55. The fuel price per gallon is anticipated to be $3.20 in the first quarter of 2023.
Apart from high fuel costs, expenses on labor are increasing and hurting the bottom line. Evidently, expenses on salaries, wages and benefits increased 13.3% year over year and 47.1% from that reported in fourth-quarter 2019.
Adjusted operating expenses escalated 27.3% year over year to $1,333.7 million in the December-end quarter. SAVE expects adjusted operating expenses for the March-end quarter to be $1,390-$1,400 million. Our estimate is pegged at $1,392 million.
High capital expenditure may play spoilsport and dent the company's free cash flow-generating ability. In 2022, capital expenditure was $237.6 million, primarily related to the purchase of spare parts. Capex for 2023 is expected to be $360 million.
Currently, Spirit Airlines carries a Zacks Rank #3 (Hold).
Investors interested in better-ranked stocks from the Zacks Transportation – Airline industry can consider Copa Holdings, S.A. CPA, Alaska Air Group, Inc. ALK and American Airlines AAL. Copa Holdings presently sports a Zacks Rank #1 (Strong Buy), Alaska Air and American Airlines carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings has an expected earnings growth rate of 39.83% for the current year. CPA delivered a trailing four-quarter earnings surprise of 33.35%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 21.1% over the past 90 days. Shares of CPA have risen 32.6% over the past six months.
Alaska Air has an expected earnings growth rate of 32.64% for the current year. ALK delivered a trailing four-quarter earnings surprise of 8.98%, on average.
The Zacks Consensus Estimate for ALK’s current-year earnings has improved 11.4% over the past 90 days.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 31.1% over the past 90 days. Shares of AAL have gained 13.8% over the past six months.
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Our urgent special report reveals 4 hydrogen stocks primed for big gains - plus our other top clean energy stocks.
See Stocks 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
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors interested in better-ranked stocks from the Zacks Transportation – Airline industry can consider Copa Holdings, S.A. CPA, Alaska Air Group, Inc. ALK and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
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Investors interested in better-ranked stocks from the Zacks Transportation – Airline industry can consider Copa Holdings, S.A. CPA, Alaska Air Group, Inc. ALK and American Airlines AAL. Click to get this free report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report To read this article on Zacks.com click here. AAL has an expected earnings growth rate of more than 100% for the current year.
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Investors interested in better-ranked stocks from the Zacks Transportation – Airline industry can consider Copa Holdings, S.A. CPA, Alaska Air Group, Inc. ALK and American Airlines AAL. Click to get this free report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report Spirit Airlines, Inc. (SAVE) : Free Stock Analysis Report To read this article on Zacks.com click here. AAL has an expected earnings growth rate of more than 100% for the current year.
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Investors interested in better-ranked stocks from the Zacks Transportation – Airline industry can consider Copa Holdings, S.A. CPA, Alaska Air Group, Inc. ALK and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
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2768.0
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2023-03-30 00:00:00 UTC
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Peru copper mines aim for output boost in 2023 after protest impact fades
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AAL
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https://www.nasdaq.com/articles/peru-copper-mines-aim-for-output-boost-in-2023-after-protest-impact-fades
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nan
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nan
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By Marco Aquino
LIMA, March 30 (Reuters) - Peru's copper miners hope to increase output in 2023 after recovering from the impact of major protests at the start of the year, industry executives said, despite simmering anti-government anger in the world's no. 2 producer of the red metal.
The South American country saw a number of key mines reduce or temporarily halt production in January and February during the deadliest protests that have hit Peru in over 20 years, with the worst violence in the copper-rich Andean south.
However, protests and blockades that snarled transport to and from mines have largely been lifted, despite ongoing public anger since the dramatic ouster late last year of leftist leader Pedro Castillo. Voters are still pushing for snap elections.
"The southern (mining) corridor is operating normally, all the inventories of concentrates that the mines had are been sent to the coast," said Víctor Gobitz, president of mining sector body SNMPE and chief executive of Peru's top mine Antamina.
Power data from Peru's private power sector body COES, analyzed by Reuters, shows activity at Peru's top mines has stabilized since early March following the disruptions earlier this year, which stalled production and shipments.
That's a boost for mines, including Chinese state-owned MMG Ltd's 1208.HK Las Bambas, Glencore PLC's GLEN.L Antapaccay, Hudbay's HBM.TO Constancia, and Antamina, co-owned by Glencore, BHP Group Ltd BHP.AX, Teck Resources Ltd TECKb.TO and Mitsubishi Corp 8058.T.
Gobitz said the easing of protests and new mines coming fully online like Anglo American's AAL.L $5.5 billion Quellaveco would push up overall copper production this year.
"If we manage to resolve the issue of the mining corridor and the 100% effect of Quellaveco, then without a doubt Peru will produce more copper in 2023 than in 2022," he said.
Peru produced some 2.44 million tonnes of copper last year, 4.8% more than in 2021 and very close to the maximum level before the global effects of the COVID-19 pandemic.
Ratings agency Moody's said in a March report that most miners in Peru had survived relatively unscathed from the protests, though the impact would likely "delay mining company permits for projects already under construction."
In southern Puno, the San Rafael de Minsur MINSURI1.LM tin mine, the world's fourth largest, has slowly restarted operations since March 20 after a roughly 10-week halt due to protests, though blockades continue on weekends.
A Minsur spokesperson told Reuters the mine was "on track to be operating at full capacity, but it takes some time to get there. It will depend on there being no other interruptions."
Peru Mines: 7-day average power usehttps://tmsnrt.rs/3Kf7woE
Peru Mines: 7-day average power usehttps://tmsnrt.rs/3jY0zO3
(Reporting by Marco Aquino; Editing by Adam Jourdan and Jonathan Oatis)
((adam.jourdan@thomsonreuters.com; +54 1155446882; Reuters Messaging: adam.jourdan.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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Gobitz said the easing of protests and new mines coming fully online like Anglo American's AAL.L $5.5 billion Quellaveco would push up overall copper production this year. By Marco Aquino LIMA, March 30 (Reuters) - Peru's copper miners hope to increase output in 2023 after recovering from the impact of major protests at the start of the year, industry executives said, despite simmering anti-government anger in the world's no. However, protests and blockades that snarled transport to and from mines have largely been lifted, despite ongoing public anger since the dramatic ouster late last year of leftist leader Pedro Castillo.
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Gobitz said the easing of protests and new mines coming fully online like Anglo American's AAL.L $5.5 billion Quellaveco would push up overall copper production this year. By Marco Aquino LIMA, March 30 (Reuters) - Peru's copper miners hope to increase output in 2023 after recovering from the impact of major protests at the start of the year, industry executives said, despite simmering anti-government anger in the world's no. "The southern (mining) corridor is operating normally, all the inventories of concentrates that the mines had are been sent to the coast," said Víctor Gobitz, president of mining sector body SNMPE and chief executive of Peru's top mine Antamina.
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Gobitz said the easing of protests and new mines coming fully online like Anglo American's AAL.L $5.5 billion Quellaveco would push up overall copper production this year. "The southern (mining) corridor is operating normally, all the inventories of concentrates that the mines had are been sent to the coast," said Víctor Gobitz, president of mining sector body SNMPE and chief executive of Peru's top mine Antamina. Power data from Peru's private power sector body COES, analyzed by Reuters, shows activity at Peru's top mines has stabilized since early March following the disruptions earlier this year, which stalled production and shipments.
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Gobitz said the easing of protests and new mines coming fully online like Anglo American's AAL.L $5.5 billion Quellaveco would push up overall copper production this year. Power data from Peru's private power sector body COES, analyzed by Reuters, shows activity at Peru's top mines has stabilized since early March following the disruptions earlier this year, which stalled production and shipments. "If we manage to resolve the issue of the mining corridor and the 100% effect of Quellaveco, then without a doubt Peru will produce more copper in 2023 than in 2022," he said.
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2769.0
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2023-03-30 00:00:00 UTC
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Sabre's (SABR) GDS to Offer American Airlines' NDC Content
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AAL
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https://www.nasdaq.com/articles/sabres-sabr-gds-to-offer-american-airlines-ndc-content
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nan
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nan
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Sabre Corporation SABR recently revealed the availability of the New Distribution Capability (“NDC”) content from American Airlines Group AAL via its Global Distribution System (“GDS”).
With this integration, Sabre-connected travel agents worldwide will be able to manage, shop and book NDC contents offered by American Airlines through the Sabre Red 360 point-of-sale tool, Sabre Offer and Order API (application programming interface) and the corporate booking solution, GetThere, from Apr 3, 2023 onward.
We believe that offering its NDC contents on Sabre’s platform will strengthen American Airlines’ ancillary sales while increasing transparency in the purchasing process, thereby ultimately enhancing customer satisfaction. The new partnership will provide Sabre GDS users with enhanced offerings from the air carrier, including the Main Select and Flagship Business Plus fares, ancillary products and the lowest fares available in these channels.
Sabre Corporation Price and Consensus
Sabre Corporation price-consensus-chart | Sabre Corporation Quote
The recent collaboration reflects the reliability of SABR’s Beyond NDC Program and GDS platform, which work like a marketplace connecting travel suppliers with buyers. This is likely to aid the company in expanding its customer share in the Travel Solutions segment.
Earlier this month, Sabre revealed the availability of the NDC content from Finland’s flag air carrier, Finnair, via its GDS platform. Last month, Sabre inked a strategic technology partnership with Simplenight, a global technology company that builds innovative enterprise solutions, including customizable book ability, cloud-based distribution, dynamic packaging and merchandising.
Currently, Simplenight is leveraging the TX-based company’s Virtual Payments solution as its business-to-business payment provider. Through this current deal with Simplenight, SABR is likely to unveil new revenue opportunities while advancing traveler experience through its latest updates in retailing solutions.
Sabre has more than 425,000 travel agency partners worldwide at present. The company provides one of the largest marketplaces in the world that manages approximately $260 billion worth of global travel spending annually.
The leading travel-related software and technology provider has its customer base spread over 160 nations globally. In January, the company extended two of its existing agreements with Pakistan International Airlines. In December, Sabre and its Japanese GDS distribution partner, INFINI Travel Information, declared a new, multi-year GDS agreement with AirTrip International Corporation.
Sabre reported revenues of $631 million in the fourth quarter of 2022. The top line was 26% higher than $501 million in the year-ago period. This surge reflected a significant improvement in the company’s global air, hotel and other bookings.
Zacks Rank & Stocks to Consider
Currently, American Airlines carries a Zacks Rank #2 (Buy), while Sabre carries a Zacks Rank #3 (Hold). AAL and SABR stocks have plunged 65.2% and 20.6%, respectively, over the past year.
Some better-ranked stocks in the broader technology sector are Wix.com WIX and Aspen Technology AZPN, each carrying a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Wix.com’s first-quarter 2023 earnings has been revised upward to 23 cents per share from 16 cents 30 days ago. For 2023, earnings estimates have been revised northward by 7 cents to $1.49 per share in the past seven days.
Wix.com's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 225%. Shares of WIX have declined 8.7% in the trailing 12 months.
The Zacks Consensus Estimate for Aspen Technology's third-quarter fiscal 2023 earnings has remained unchanged at $1.66 per share in the past 60 days. For fiscal 2023, earnings estimates have been revised northward by 2 cents to $7.10 per share in the past 60 days.
Aspen Technology’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 5.2%. Shares of AZPN have rallied 32.6% over the past year.
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The world is increasingly focused on eliminating fossil fuels and ramping up use of renewable, clean energy sources. Hydrogen fuel cells, powered by the most abundant substance in the universe, could provide an unlimited amount of ultra-clean energy for multiple industries.
Our urgent special report reveals 4 hydrogen stocks primed for big gains - plus our other top clean energy stocks.
See Stocks 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
Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report
Sabre Corporation (SABR) : Free Stock Analysis Report
Wix.com Ltd. (WIX) : 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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Sabre Corporation SABR recently revealed the availability of the New Distribution Capability (“NDC”) content from American Airlines Group AAL via its Global Distribution System (“GDS”). AAL and SABR stocks have plunged 65.2% and 20.6%, respectively, over the past year. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Sabre Corporation (SABR) : Free Stock Analysis Report Wix.com Ltd. (WIX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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Sabre Corporation SABR recently revealed the availability of the New Distribution Capability (“NDC”) content from American Airlines Group AAL via its Global Distribution System (“GDS”). Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Sabre Corporation (SABR) : Free Stock Analysis Report Wix.com Ltd. (WIX) : Free Stock Analysis Report To read this article on Zacks.com click here. AAL and SABR stocks have plunged 65.2% and 20.6%, respectively, over the past year.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Sabre Corporation (SABR) : Free Stock Analysis Report Wix.com Ltd. (WIX) : Free Stock Analysis Report To read this article on Zacks.com click here. Sabre Corporation SABR recently revealed the availability of the New Distribution Capability (“NDC”) content from American Airlines Group AAL via its Global Distribution System (“GDS”). AAL and SABR stocks have plunged 65.2% and 20.6%, respectively, over the past year.
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Sabre Corporation SABR recently revealed the availability of the New Distribution Capability (“NDC”) content from American Airlines Group AAL via its Global Distribution System (“GDS”). AAL and SABR stocks have plunged 65.2% and 20.6%, respectively, over the past year. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Aspen Technology, Inc. (AZPN) : Free Stock Analysis Report Sabre Corporation (SABR) : Free Stock Analysis Report Wix.com Ltd. (WIX) : Free Stock Analysis Report To read this article on Zacks.com click here.
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2770.0
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2023-03-30 00:00:00 UTC
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Here's Why You Should Retain J.B. Hunt (JBHT) Stock Now
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AAL
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https://www.nasdaq.com/articles/heres-why-you-should-retain-j.b.-hunt-jbht-stock-now
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nan
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nan
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J.B. Hunt Transport Services, Inc. JBHT is benefiting from its strong performances in the Dedicated Contract Services ("DCS") and Truckload segments. However, its weak cash position is worrisome.
Factors Favoring JBHT
Strong performances of the DCS and Truckload segments are driving J.B. Hunt’s top line. Revenues from the DCS segment rose 17.4% year over year in 2021 due to fleet productivity improvement and increase in average revenue-producing trucks, among other factors. The same climbed 31% year over year in 2022.
Increases in load count and revenue per load are supporting growth of the Truckload segment, revenues from which climbed 72% year over year in 2021. Truckload revenues rose 35.9% year over year in 2022.
We are impressed by the company’s efforts to reward its shareholders through dividend payments and share repurchases. In January 2023, JBHT’s board of directors approved a dividend hike of 5%, thereby raising its quarterly cash dividend from 40 cents per share to 42 cents. The raised dividend was paid out on Feb 24 to all its shareholders of record as of Feb 10. The move reflected JBHT’s intention to utilize free cash to enhance its shareholders’ returns.
The company is also active on the buyback front, having resumed it in fourth-quarter 2020 after a temporary pause amid COVID-19 concerns. In 2021, J.B. Hunt repurchased shares worth $150 million. In the fourth quarter of 2022, J.B. Hunt did not repurchase any shares. The trucking company had approximately $551 million remaining under its share repurchase authorization as of Dec 31, 2022.
Key Risk
J.B. Hunt’s weak cash position is worrisome. JBHT's cash and cash equivalents were $51.93 million at the end of fourth-quarter 2022, much lower than the long-term debt of $1,261.73 million.
Zacks Rank & Key Picks
J.B. Hunt currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Transportation sector are American Airlines AAL and Alaska Air Group, Inc. ALK.
American Airlines, currently carrying a Zacks Rank #2 (Buy), is benefiting from the improved air-travel demand. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
For first-quarter and 2023, AAL’s earnings are expected to register 100.4% and 332% growth, respectively, on a year-over-year basis.
Alaska Air, carrying a Zacks Rank #2 at present, is seeing continued improvement in air-travel demand. On the back of upbeat air-travel demand and favorable pricing, Alaska Air reported better-than-expected earnings per share for fourth-quarter 2022. ALK expects first-quarter 2023 total revenues to increase 29-32% from the first-quarter 2022 actuals.
For first-quarter and 2023, ALK’s earnings are expected to register 69.9% and 31.7% growth, respectively, on a year-over-year basis.
Is THIS the Ultimate New Clean Energy Source? (4 Ways to Profit)
The world is increasingly focused on eliminating fossil fuels and ramping up use of renewable, clean energy sources. Hydrogen fuel cells, powered by the most abundant substance in the universe, could provide an unlimited amount of ultra-clean energy for multiple industries.
Our urgent special report reveals 4 hydrogen stocks primed for big gains - plus our other top clean energy stocks.
See Stocks Now
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report
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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Some better-ranked stocks in the Zacks Transportation sector are American Airlines AAL and Alaska Air Group, Inc. ALK. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. For first-quarter and 2023, AAL’s earnings are expected to register 100.4% and 332% 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 Alaska Air Group, Inc. ALK. Click to get this free report J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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Click to get this free report J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the Zacks Transportation sector are American Airlines AAL and Alaska Air Group, Inc. ALK. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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Click to get this free report J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the Zacks Transportation sector are American Airlines AAL and Alaska Air Group, Inc. ALK. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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2771.0
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2023-03-30 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-1
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nan
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nan
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Below is Validea's guru fundamental report for AMERICAN AIRLINES GROUP INC (AAL). Of the 22 guru strategies we follow, AAL rates highest using our Shareholder Yield Investor model based on the published strategy of Meb Faber. This strategy looks for companies returning cash to shareholders via dividends, buybacks and debt paydown.
AMERICAN AIRLINES GROUP INC (AAL) is a mid-cap growth 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 growth 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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2772.0
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2023-03-29 00:00:00 UTC
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5 Reasons Why Investors Should Bet on Ryder (R) Stock Now
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AAL
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https://www.nasdaq.com/articles/5-reasons-why-investors-should-bet-on-ryder-r-stock-now-0
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Ryder System, Inc.R is benefiting from strong rental demand and favorable pricing. The company’s measures to reward its shareholders are encouraging. The 2023 guidance looks encouraging.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes Ryder an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse over the past six months. Shares of Ryder have gained 5.7% over the past year against the 10% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: Ryder currently carries a Zacks Rank #1 (Strong Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for Ryder’s first-quarter 2023 earnings has moved up 4.2% year over year. For 2023 and 2024, the company’s earnings are expected to increase 7.2% and 20.8%, year over year, respectively.
Positive Earnings Surprise History: Ryder has an impressive earnings surprise history. The company delivered an earnings surprise of 21.81% in the last four quarters, on average.
Growth Factors:Ryder’s 2023 outlook is encouraging. For 2023, Ryder expects total revenues and operating revenues to increase 2% and 4%, respectively. Adjusted earnings per share are estimated to be between $11.05 and $12.05. Ryder’s efforts to reward its shareholders bode well.
In February 2022, the company entered a $300-million accelerated share buyback program. In July 2022, Ryder announced a 7% hike in its quarterly dividend, taking the total to 62 cents per share (annualized $2.48).
Ryder is benefiting from strong rental demand and favorable pricing. The company’s measures to reward its shareholders are encouraging. In fourth-quarter 2022, Ryder repurchased 2 million shares for $179 million under its completed 2021 Discretionary program.
Additionally, the company repurchased 0.9 million shares for $78 million under its 2021 Anti-Dilutive program. In February 2023, Ryder’s board approved a new 2-million share discretionary repurchase program.
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Transportation sector are Copa Holdings, S.A. CPA, Alaska Air Group, Inc. ALK and American Airlines AAL. Copa Holdings presently sports a Zacks Rank #1, while Alaska Air and American Airlines currently carry a Zacks Rank #2.
Copa Holdings has an expected earnings growth rate of 39.83% for the current year. CPA delivered a trailing four-quarter earnings surprise of 33.35%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 21.1% over the past 90 days. Shares of CPA have soared 32.6% over the past six months.
Alaska Air has an expected earnings growth rate of 32.64% for the current year. ALK delivered a trailing four-quarter earnings surprise of 8.98%, on average.
The Zacks Consensus Estimate for ALK’s current-year earnings has improved 11.4% over the past 90 days.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 31.1% over the past 90 days. Shares of AAL have gained 13.8% over the past six months.
Free Report: Must-See Hydrogen Stocks
Hydrogen fuel cells are already used to provide efficient, ultra-clean energy to buses, ships and even hospitals. This technology is on the verge of a massive breakthrough, one that could make hydrogen a major source of America's power. It could even totally revolutionize the EV industry.
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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
Ryder System, Inc. (R) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other Stocks to Consider Some other top-ranked stocks from the broader Zacks Transportation sector are Copa Holdings, S.A. CPA, Alaska Air Group, Inc. ALK and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
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Click to get this free report Ryder System, Inc. (R) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. Other Stocks to Consider Some other top-ranked stocks from the broader Zacks Transportation sector are Copa Holdings, S.A. CPA, Alaska Air Group, Inc. ALK and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year.
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Click to get this free report Ryder System, Inc. (R) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. Other Stocks to Consider Some other top-ranked stocks from the broader Zacks Transportation sector are Copa Holdings, S.A. CPA, Alaska Air Group, Inc. ALK and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year.
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Shares of AAL have gained 13.8% over the past six months. Other Stocks to Consider Some other top-ranked stocks from the broader Zacks Transportation sector are Copa Holdings, S.A. CPA, Alaska Air Group, Inc. ALK and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year.
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2773.0
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2023-03-29 00:00:00 UTC
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Why You Should Retain Hawaiian Holdings (HA) in Your Portfolio
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AAL
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https://www.nasdaq.com/articles/why-you-should-retain-hawaiian-holdings-ha-in-your-portfolio
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Hawaiian Holdings HA is benefiting from buoyant air-travel-demand scenario and debt-reduction efforts. However, escalating fuel costs are worrisome.
Factors Favoring HA
With improving air-travel demand, Hawaiian Holdings is making constant efforts to expand its network. In March, management at HA adjusted the schedule to match the anticipated demand swell during summer.
Owing to the continued recovery in air-travel demand, Hawaiian Holdings' unit revenue guidance for first-quarter 2023 is encouraging. Unit revenues are likely to increase 7.5-10.5% year over year. Efforts to reduce debt are added positives.
Hawaiian Holdings received encouraging news on the labor front when its pilots, represented by the Air Line Pilots Association, cleared a four-year deal. Following the approval, pilots of the carrier are eligible for pay-hikes, average of which will be more than 32% over the four-year period. In the voting procedure, 93% pilots cast their votes with 65% favoring the deal. The agreement, which took effect on Mar 2, includes industry-leading rates for HA’s future Airbus A330F cargo fleet.
Pilots at HA are now eligible for an immediate 16.6% pay raise on average. Other benefits include the presence of a $10-million ratification bonus and the creation of a new $2,500 health reimbursement account. The deal will also result in the improvement in quality of life of pilots by providing more schedule flexibility, apart from raising company retirement contributions.
Key Risks
The current scenario of rising fuel costs does not bode well for the airline. Evidently, average fuel cost per gallon (economic) jumped 41.4% to $3.31 in fourth-quarter 2022. Despite coming down from the highs, the metric is still high. Fuel price per gallon is expected to be $3.10 in the March-end quarter, suggesting a rise from the $2.83 reported in first-quarter 2022.
High capital expenditure in the current scenario of economic uncertainty may hinder the company's growth prospects. For 2023, the company projects capital expenditure of $330-$380 million. Operating expenses increased 13.8% year over year in 2022, with aircraft fuel (including taxes and delivery) expenses, and wages and benefits increasing 50.6% and 15.1%, respectively, in the same time period.
Such rising expenses are hurting bottom-line growth. Operating expenses are likely to be high in first-quarter 2023 as well.
Zacks Rank & Key Picks
Currently, HA carries a Zacks Rank #3 (Hold). Some better-ranked stocks for investors interested in the Zacks Airline industry are:
Alaska Air Group ALK, aided by the improved air-travel-demand situation, reported better-than-expected fourth-quarter 2022 results. The company expects a 29-32% increase in the top line in first-quarter 2023.
ALK has been increasing its capacity to meet the upbeat demand. Capacity is expected to increase 11-14% in the first quarter of 2023.
The Zacks Consensus Estimate for Alaska Air's current-year earnings has been revised upward by 4.6% in the past 60 days. ALK currently has a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
American Airlines AAL, currently carrying a Zacks Rank of 2, is seeing steady recovery in domestic and leisure air-travel demand. AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 12.5% over the past 60 days. Shares of AAL have gained 16.1% over the past six months.
Free Report: Must-See Hydrogen Stocks
Hydrogen fuel cells are already used to provide efficient, ultra-clean energy to buses, ships and even hospitals. This technology is on the verge of a massive breakthrough, one that could make hydrogen a major source of America's power. It could even totally revolutionize the EV industry.
Zacks has released a special report revealing the 4 stocks experts believe will deliver the biggest gains.
Download Cashing In on Cleaner Energy today, absolutely free.
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
Hawaiian Holdings, Inc. (HA) : 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, currently carrying a Zacks Rank of 2, is seeing steady recovery in domestic and leisure air-travel demand. AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
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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 Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL, currently carrying a Zacks Rank of 2, is seeing steady recovery in domestic and leisure air-travel demand. AAL has an expected earnings growth rate of more than 100% for the current year.
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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 Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines AAL, currently carrying a Zacks Rank of 2, is seeing steady recovery in domestic and leisure air-travel demand. AAL has an expected earnings growth rate of more than 100% for the current year.
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AAL has an expected earnings growth rate of more than 100% for the current year. American Airlines AAL, currently carrying a Zacks Rank of 2, is seeing steady recovery in domestic and leisure air-travel demand. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
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2774.0
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2023-03-29 00:00:00 UTC
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Here's Why You Should Retain United Airlines (UAL) Stock Now
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AAL
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https://www.nasdaq.com/articles/heres-why-you-should-retain-united-airlines-ual-stock-now
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United Airlines Holdings, Inc. (UAL) is benefiting from its solid cargo operations as well as buoyant air-travel demand. However, low liquidity is a headwind.
Factors Favoring UAL
Owing to buoyant air-travel demand, United Airlines posted a significant year-over-year increase (about 51.37%) in fourth-quarter 2022 revenues. The uptick was driven by a 62.9% rise in passenger revenues (accounting for 90.3% of the top line) to $11,202 million. Moreover, passenger revenues increased 12.8% from the fourth-quarter 2019 reading.
Nearly 39 million passengers traveled on UAL flights in the December quarter. Driven by solid demand, management expects total revenue per available seat mile to grow in the 22-23% band year over year for the first quarter of 2023. Total revenues are anticipated to grow almost 51% year over year.
United Airlines’ focus on its cargo operations is boosting cargo revenues, thus partly offsetting the weakness in passenger revenues from the 2019 levels. In 2021, the carrier’s cargo revenues jumped 42.5% year over year and 99.2% from the 2019 level. In 2022, cargo revenues increased 84.1% from the 2019 level. Cargo revenues skyrocketed 49.4% from fourth-quarter 2019 actuals to $472 million.
Key Risk
A decline in the current ratio (a measure of liquidity) does not bode well for the company. The carrier exited the fourth quarter of 2022 with a current ratio of 1.00, down from 1.03 in third-quarter 2022 and 1.04 in second-quarter 2022. A reduction in this key ratio generally implies that the company's ability to generate cash is on the decline.
Zacks Rank & Key Picks
United Airlines currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and Alaska Air Group, Inc. (ALK).
American Airlines, currently carrying a Zacks Rank #2 (Buy), is benefiting from the improved air-travel-demand situation. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
For first-quarter and full-year 2023, AAL’s earnings are expected to register 100.4% and 332% growth, respectively, on a year-over-year basis.
Alaska Air, carrying a Zacks Rank #2 at present, is seeing continued improvement in air-travel demand. On the back of upbeat air-travel demand and favorable pricing, Alaska Air reported better-than-expected earnings per share for fourth-quarter 2022. ALK expects first-quarter 2023 total revenues to increase 29-32% from the first-quarter 2022 actuals.
For first-quarter and full-year 2023, ALK’s earnings are expected to register 69.9% and 31.7% growth, respectively, on a year-over-year basis.
Free Report: Must-See Hydrogen Stocks
Hydrogen fuel cells are already used to provide efficient, ultra-clean energy to buses, ships and even hospitals. This technology is on the verge of a massive breakthrough, one that could make hydrogen a major source of America's power. It could even totally revolutionize the EV industry.
Zacks has released a special report revealing the 4 stocks experts believe will deliver the biggest gains.
Download Cashing In on Cleaner Energy today, absolutely free.
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
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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Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and Alaska Air Group, Inc. (ALK). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. For first-quarter and full-year 2023, AAL’s earnings are expected to register 100.4% and 332% growth, respectively, on a year-over-year basis.
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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 Alaska Air Group, Inc. (ALK) : 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 Alaska Air Group, Inc. (ALK). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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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 Alaska Air Group, Inc. (ALK) : 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 Alaska Air Group, Inc. (ALK). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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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 Alaska Air Group, Inc. (ALK) : 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 Alaska Air Group, Inc. (ALK). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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2775.0
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2023-03-29 00:00:00 UTC
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Here's Why You Should Retain Expeditors (EXPD) Stock Now
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AAL
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https://www.nasdaq.com/articles/heres-why-you-should-retain-expeditors-expd-stock-now
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nan
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Expeditors International of Washington, Inc. EXPD is benefiting from its solid liquidity as well as shareholder-friendly measures. However, escalating operating expenses are headwinds.
Factors Favoring EXPD
Expeditors' increasing current ratio (a measure of liquidity) is encouraging. The measure was 2.20 at 2022-end compared with 2.07 at the end of the third quarter of 2022. A current ratio of more than 1 indicates that the company's assets will be able to cover its debts that are due at the end of the year.
We are impressed by Expeditors' efforts to reward shareholders through dividend payments and buybacks. In the pandemic-ravaged 2020 and 2021, the company repurchased 4.6 million and 4.4 million shares at an average price of $72.26 and $117.54 per share.
In May 2022, the company had announced a 15.5% hike in semi-annual cash dividend to 67 cents per share (annualized $1.34). In 2022, EXPD repurchased 14.5 million shares of common stock at an average price of $108.88 per share and paid cash dividends of $1.34 per share.
Key Risk
Expeditors is being hurt by the increase in operating expenses. Notably, operating expenses increased more than 4% year over year in 2022, despite the company's cost-cutting initiatives to combat weak demand. High operating expenses are restricting the bottom-line growth.
Zacks Rank & Key Picks
Expeditors currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Transportation sector are American Airlines AAL and Alaska Air Group, Inc. (ALK).
American Airlines, currently carrying a Zacks Rank #2 (Buy), is benefiting from the improved air-travel-demand situation. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
For first-quarter and full-year 2023, AAL’s earnings are expected to register 100.4% and 332% growth, respectively, on a year-over-year basis.
Alaska Air, carrying a Zacks Rank #2 at present, is seeing continued improvement in air-travel demand. On the back of upbeat air-travel demand and favorable pricing, Air Alaska Air reported better-than-expected earnings per share for the fourth quarter of 2022. ALK expects first-quarter 2023 total revenues to increase 29-32% from the first-quarter 2022 actuals.
For first-quarter and full-year 2023, ALK’s earnings are expected to register 69.9% and 31.7% growth, respectively, on a year-over-year basis.
Free Report: Must-See Hydrogen Stocks
Hydrogen fuel cells are already used to provide efficient, ultra-clean energy to buses, ships and even hospitals. This technology is on the verge of a massive breakthrough, one that could make hydrogen a major source of America's power. It could even totally revolutionize the EV industry.
Zacks has released a special report revealing the 4 stocks experts believe will deliver the biggest gains.
Download Cashing In on Cleaner Energy today, absolutely free.
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
Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks in the Zacks Transportation sector are American Airlines AAL and Alaska Air Group, Inc. (ALK). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. For first-quarter and full-year 2023, AAL’s earnings are expected to register 100.4% and 332% growth, respectively, on a year-over-year basis.
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Click to get this free report Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the Zacks Transportation sector are American Airlines AAL and Alaska Air Group, Inc. (ALK). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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Click to get this free report Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the Zacks Transportation sector are American Airlines AAL and Alaska Air Group, Inc. (ALK). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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Click to get this free report Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the Zacks Transportation sector are American Airlines AAL and Alaska Air Group, Inc. (ALK). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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2776.0
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2023-03-29 00:00:00 UTC
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American Airlines (AAL) Up 14% in the Past 6 Months: Here's How
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-up-14-in-the-past-6-months%3A-heres-how
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American Airlines Group Inc. (AAL) shares had an impressive run over the past six months. The stock has gained 14.1% compared with an 11.8% rise in the industry it belongs to.
Reasons for the Upside
Continued recovery in air-travel demand, particularly on the domestic front, bodes well for American Airlines. In the fourth quarter of 2022, passenger revenues, accounting for the bulk of the top line (92%), increased to $12,131 million from $8,382 million a year ago.
Driven by soaring demand on healthy bookings, in the March quarter, total revenues per available seat miles are expected to be 24-27% higher than the first-quarter 2022 actuals.
Image Source: Zacks Investment Research
The carrier's debt-reduction efforts are impressive as well. Management aims to reduce its debt by $15 billion by 2025-end. The company aims to attain this objective through naturally occurring amortization. Also, it intends to utilize surplus cash and free cash flow to pay down prepayable debt. As of Dec 31, 2022, the carrier reduced its debt levels by more than $8 billion from peak levels in the second quarter of 2021.
Favorable Estimates Revision
Driven by the above tailwinds, the Zacks Consensus Estimate for 2023 earnings has moved up 31.7% to $2.16 per share in the past 90 days.
Zacks Rank and Other Stocks to Consider
AAL currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the Zacks Transportation sector are Copa Holdings, S.A. (CPA) and Alaska Air Group, Inc. (ALK).
Copa Holdings currently sports a Zacks Rank #1. The company’s focus on its cargo segment is very encouraging. In fourth-quarter 2022, cargo and mail revenues jumped 69% to $27.09 million, owing to higher cargo volumes and yields.
For first-quarter and full-year 2023, CPA’s earnings are expected to register 41% and 4.9% growth, respectively, on a year-over-year basis.
Alaska Air, carrying a Zacks Rank #2 at present, is seeing continued improvement in air-travel demand. On the back of upbeat air-travel demand and favorable pricing, Alaska Air reported better-than-expected earnings per share for fourth-quarter 2022. ALK expects first-quarter 2023 total revenues to increase 29-32% from the first-quarter 2022 actuals.
For first-quarter and full-year 2023, ALK’s earnings are expected to register 69.9% and 31.7% growth, respectively, on a year-over-year basis.
Free Report: Must-See Hydrogen Stocks
Hydrogen fuel cells are already used to provide efficient, ultra-clean energy to buses, ships and even hospitals. This technology is on the verge of a massive breakthrough, one that could make hydrogen a major source of America's power. It could even totally revolutionize the EV industry.
Zacks has released a special report revealing the 4 stocks experts believe will deliver the biggest gains.
Download Cashing In on Cleaner Energy today, absolutely free.
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
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc. (AAL) shares had an impressive run over the past six months. Zacks Rank and Other Stocks to Consider AAL currently carries a Zacks Rank #2 (Buy). Click to get this free report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here.
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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 Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. (AAL) shares had an impressive run over the past six months. Zacks Rank and Other Stocks to Consider AAL currently carries a Zacks Rank #2 (Buy).
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Zacks Rank and Other Stocks to Consider AAL currently carries a Zacks Rank #2 (Buy). Click to get this free report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. (AAL) shares had an impressive run over the past six months.
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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 Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. (AAL) shares had an impressive run over the past six months. Zacks Rank and Other Stocks to Consider AAL currently carries a Zacks Rank #2 (Buy).
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2777.0
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2023-03-29 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-2
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nan
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nan
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Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
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.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
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.
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.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% 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?
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. American Airlines (AAL) earns a #2 (Buy) right now and its Most Accurate Estimate sits at $0.09 a share, just 22 days from its upcoming earnings release on April 20, 2023.
AAL has an Earnings ESP figure of +592.31%, which, as explained above, is calculated by taking the percentage difference between the $0.09 Most Accurate Estimate and the Zacks Consensus Estimate of $0.01. 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 just one of a large group of Transportation stocks with a positive ESP figure. FedEx (FDX) is another qualifying stock you may want to consider.
Slated to report earnings on June 22, 2023, FedEx holds a #3 (Hold) ranking on the Zacks Rank, and it's Most Accurate Estimate is $4.78 a share 85 days from its next quarterly update.
FedEx's Earnings ESP figure currently stands at +4.32% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $4.58.
Because both stocks hold a positive Earnings ESP, AAL and FDX could potentially post earnings beats in their next reports.
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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American Airlines Group Inc. (AAL) : Free Stock Analysis Report
FedEx Corporation (FDX) : 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) earns a #2 (Buy) right now and its Most Accurate Estimate sits at $0.09 a share, just 22 days from its upcoming earnings release on April 20, 2023. AAL has an Earnings ESP figure of +592.31%, which, as explained above, is calculated by taking the percentage difference between the $0.09 Most Accurate Estimate and the Zacks Consensus Estimate of $0.01. AAL is just one of a large group of Transportation stocks with a positive ESP figure.
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AAL has an Earnings ESP figure of +592.31%, which, as explained above, is calculated by taking the percentage difference between the $0.09 Most Accurate Estimate and the Zacks Consensus Estimate of $0.01. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report FedEx Corporation (FDX) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) earns a #2 (Buy) right now and its Most Accurate Estimate sits at $0.09 a share, just 22 days from its upcoming earnings release on April 20, 2023.
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Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report FedEx Corporation (FDX) : Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) earns a #2 (Buy) right now and its Most Accurate Estimate sits at $0.09 a share, just 22 days from its upcoming earnings release on April 20, 2023. AAL has an Earnings ESP figure of +592.31%, which, as explained above, is calculated by taking the percentage difference between the $0.09 Most Accurate Estimate and the Zacks Consensus Estimate of $0.01.
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American Airlines (AAL) earns a #2 (Buy) right now and its Most Accurate Estimate sits at $0.09 a share, just 22 days from its upcoming earnings release on April 20, 2023. Because both stocks hold a positive Earnings ESP, AAL and FDX could potentially post earnings beats in their next reports. AAL has an Earnings ESP figure of +592.31%, which, as explained above, is calculated by taking the percentage difference between the $0.09 Most Accurate Estimate and the Zacks Consensus Estimate of $0.01.
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2778.0
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2023-03-28 00:00:00 UTC
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Noteworthy Tuesday Option Activity: OXY, AAL, AMGN
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AAL
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity%3A-oxy-aal-amgn
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Occidental Petroleum Corp (Symbol: OXY), where a total volume of 102,023 contracts has been traded thus far today, a contract volume which is representative of approximately 10.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 57.4% of OXY's average daily trading volume over the past month, of 17.8 million shares. Especially high volume was seen for the $62 strike call option expiring March 31, 2023, with 15,150 contracts trading so far today, representing approximately 1.5 million underlying shares of OXY. Below is a chart showing OXY's trailing twelve month trading history, with the $62 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) saw options trading volume of 114,729 contracts, representing approximately 11.5 million underlying shares or approximately 52.5% of AAL's average daily trading volume over the past month, of 21.8 million shares. Particularly high volume was seen for the $5 strike put option expiring June 21, 2024, with 42,154 contracts trading so far today, representing approximately 4.2 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $5 strike highlighted in orange:
And Amgen Inc (Symbol: AMGN) saw options trading volume of 13,531 contracts, representing approximately 1.4 million underlying shares or approximately 51.5% of AMGN's average daily trading volume over the past month, of 2.6 million shares. Especially high volume was seen for the $260 strike call option expiring June 16, 2023, with 5,283 contracts trading so far today, representing approximately 528,300 underlying shares of AMGN. Below is a chart showing AMGN's trailing twelve month trading history, with the $260 strike highlighted in orange:
For the various different available expirations for OXY options, AAL options, or AMGN options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
Also see:
AKAO market cap history
OZRK shares outstanding history
KSPN market cap history
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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Particularly high volume was seen for the $5 strike put option expiring June 21, 2024, with 42,154 contracts trading so far today, representing approximately 4.2 million underlying shares of AAL. Below is a chart showing OXY's trailing twelve month trading history, with the $62 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 114,729 contracts, representing approximately 11.5 million underlying shares or approximately 52.5% of AAL's average daily trading volume over the past month, of 21.8 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $5 strike highlighted in orange: And Amgen Inc (Symbol: AMGN) saw options trading volume of 13,531 contracts, representing approximately 1.4 million underlying shares or approximately 51.5% of AMGN's average daily trading volume over the past month, of 2.6 million shares.
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Below is a chart showing OXY's trailing twelve month trading history, with the $62 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 114,729 contracts, representing approximately 11.5 million underlying shares or approximately 52.5% of AAL's average daily trading volume over the past month, of 21.8 million shares. Particularly high volume was seen for the $5 strike put option expiring June 21, 2024, with 42,154 contracts trading so far today, representing approximately 4.2 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $5 strike highlighted in orange: And Amgen Inc (Symbol: AMGN) saw options trading volume of 13,531 contracts, representing approximately 1.4 million underlying shares or approximately 51.5% of AMGN's average daily trading volume over the past month, of 2.6 million shares.
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Below is a chart showing OXY's trailing twelve month trading history, with the $62 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 114,729 contracts, representing approximately 11.5 million underlying shares or approximately 52.5% of AAL's average daily trading volume over the past month, of 21.8 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $5 strike highlighted in orange: And Amgen Inc (Symbol: AMGN) saw options trading volume of 13,531 contracts, representing approximately 1.4 million underlying shares or approximately 51.5% of AMGN's average daily trading volume over the past month, of 2.6 million shares. Particularly high volume was seen for the $5 strike put option expiring June 21, 2024, with 42,154 contracts trading so far today, representing approximately 4.2 million underlying shares of AAL.
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Particularly high volume was seen for the $5 strike put option expiring June 21, 2024, with 42,154 contracts trading so far today, representing approximately 4.2 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $5 strike highlighted in orange: And Amgen Inc (Symbol: AMGN) saw options trading volume of 13,531 contracts, representing approximately 1.4 million underlying shares or approximately 51.5% of AMGN's average daily trading volume over the past month, of 2.6 million shares. Below is a chart showing OXY's trailing twelve month trading history, with the $62 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 114,729 contracts, representing approximately 11.5 million underlying shares or approximately 52.5% of AAL's average daily trading volume over the past month, of 21.8 million shares.
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2779.0
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2023-03-28 00:00:00 UTC
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Southwest Airlines (LUV) Faces Expense, Cancelation Woes
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-luv-faces-expense-cancelation-woes
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nan
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nan
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Southwest Airlines Co. LUV continues to grapple with rising expenses. Additionally, massive flight cancelations during the Christmas holiday weekend in December 2022 unfavorably impacted LUV’s fourth-quarter 2022 results.
Let’s discuss these factors in detail.
Escalating fuel prices represent a concern. In fourth-quarter 2022, fuel cost per gallon (inclusive of fuel tax: economic) rose 41.3% to $3.18. For first-quarter 2023, economic fuel costs per gallon are expected between $3.25 and $3.35. For 2023, economic fuel costs per gallon are estimated between $2.90 and $3.00. Higher fuel expenses weigh on the company's bottom line.
Apart from the increase in fuel costs, a rise in labor and airport costs is likely to dent bottom-line growth. In fourth-quarter 2022, consolidated unit cost or cost per available seat mile (CASM), excluding fuel, oil and profit-sharing expenses, and special items, increased 31% year over year. Due to an increase in labor and airport costs, as well as lower productivity levels, LUV expects CASM, excluding fuel, oil and profit-sharing expenses, and special items, to increase 2-4% in the first quarter of 2023 from that reported in the comparable period of 2022. High capex may also play a spoilsport.
Massive flight cancellations due to unfavorable weather conditions during the Christmas holiday weekend in December 2022 unfavorably impacted LUV. The company had to cancel in excess of 16,700 flights between Dec 21 and Dec 31, 2022, due to the inclement weather. As a result, LUV had to bear a fourth-quarter 2022 pre-tax negative impact of almost $800 million (or $620 million on an after-tax basis), which led to a fourth-quarter 2022 net loss. LUV’s fourth-quarter 2022 revenues were also unfavorably impacted by almost $410 million due to the flight cancellations in December 2022.
Partly due to these headwinds, shares of Southwest Airlines have declined 33.5% over the past year compared with the 22% fall of the industry it belongs to.
Image Source: Zacks Investment Research
Despite such tailwinds, continued recovery in air-travel demand (mainly on the leisure front) bodes well for Southwest Airlines. In the fourth quarter of 2022, air traffic, measured in revenue passenger miles, increased 5.4% year over year to 31.30 billion.
Load factor (percentage of seats filled by passengers) improved to 83.5% from 81% in the year-ago quarter. Passenger revenue per available seat mile ascended 19% year over year to 14.78 cents. Anticipating the trend to continue, Southwest Airlines’ management expects first-quarter 2023 operating revenues to register 20-24% year-over-year growth.
Currently, Southwest Airlines carries a Zacks Rank #5 (Strong Sell).
Investors interested in better-ranked stocks from the Zacks Transportation – Airline industry can consider Copa Holdings, S.A. CPA, Alaska Air Group, Inc. ALK and American Airlines AAL. Copa Holdings presently sports a Zacks Rank #1 (Strong Buy), whereas Alaska Air and American Airlines carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings has an expected earnings growth rate of 39.83% for the current year. CPA delivered a trailing four-quarter earnings surprise of 33.35%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 21.1% over the past 90 days. Shares of CPA have jumped 32.6% over the past six months.
Alaska Air has an expected earnings growth rate of 32.64% for the current year. ALK delivered a trailing four-quarter earnings surprise of 8.98%, on average.
The Zacks Consensus Estimate for ALK’s current-year earnings has improved 11.4% over the past 90 days.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 31.1% over the past 90 days. Shares of AAL have gained 13.8% over the past six months.
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.
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
Southwest Airlines Co. (LUV) : Free Stock Analysis Report
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors interested in better-ranked stocks from the Zacks Transportation – Airline industry can consider Copa Holdings, S.A. CPA, Alaska Air Group, Inc. ALK and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
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Click to get this free report Southwest Airlines Co. (LUV) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. Investors interested in better-ranked stocks from the Zacks Transportation – Airline industry can consider Copa Holdings, S.A. CPA, Alaska Air Group, Inc. ALK and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year.
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Investors interested in better-ranked stocks from the Zacks Transportation – Airline industry can consider Copa Holdings, S.A. CPA, Alaska Air Group, Inc. ALK and American Airlines AAL. Click to get this free report Southwest Airlines Co. (LUV) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. AAL has an expected earnings growth rate of more than 100% for the current year.
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The Zacks Consensus Estimate for AAL’s current-year earnings has improved 31.1% over the past 90 days. Investors interested in better-ranked stocks from the Zacks Transportation – Airline industry can consider Copa Holdings, S.A. CPA, Alaska Air Group, Inc. ALK and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year.
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2780.0
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2023-03-28 00:00:00 UTC
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Better Buy: Allegiant Travel or JetBlue Airways Stock?
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AAL
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https://www.nasdaq.com/articles/better-buy%3A-allegiant-travel-or-jetblue-airways-stock
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nan
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nan
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With demand for flights skyrocketing, airline stocks have the potential to recover from their pandemic-induced slumps. While the operating environment remains challenging, well-positioned airlines stand to benefit from the current wave of demand -- as do their investors.
Here, let's compare two recovering airline stocks to determine which makes the better buy in today's market.
The case for Allegiant Travel
Allegiant Travel (NASDAQ: ALGT) generated its highest annual revenue ever last year, surpassing its previous pre-pandemic record by a remarkable 25%. Despite challenges, Allegiant's performance improved as 2022 progressed.
Fourth-quarter operating revenue landed 23% higher than the same period in 2021, totaling $612 million. Allegiant CFO Robert Neal attributed the revenue gains to "the sustained strong demand environment" combined with better fuel prices and operational efficiencies.
Perhaps more notably, last quarter's $612 million marked a 33% increase above 2019's Q4 revenue. And Q4 total revenue per available seat mile (TRASM) hit its highest quarterly level ever, 20% above 2019's Q4 TRASM. Completion factor, or the percentage of completed flights, gained 2% in the second half of 2022 and finished the year at 99.5%.
In all, Allegiant delivered a record $2.3 billion in annual revenue last year -- 25% higher than its previous record from pre-pandemic 2019. Demand remains sky-high for Allegiant's low fares and nonstop flights.
Amid record revenues, Allegiant contended with soaring expenses last year. Heightened fuel and crew costs, along with lost revenue and customer compensation expenses, imposed a $100 million financial hit in the first half of 2022. Interestingly enough, however, the second half of 2022 only resulted in a $30 million financial hit.
The Nevada-based ultra-low-cost-carrier ended Q4 with a net income of $52.5 million -- only 13% shy of 2019's Q4 net income. However, for the full year, Allegiant only netted $2.5 million -- 99% below 2019's net income of $232 million.
Now looking to carry forward the momentum from 2022's second half, Allegiant anticipates 1% year-over-year growth in first-quarter 2023. Amid "a robust demand environment that shows no signs of slowing," according to CEO John Redmond, Allegiant anticipates setting new revenue records in 2023.
While revenues are expected to be strong this year, profitability remains an issue for Allegiant, with its gross margin roughly half of what it was in 2016. Not only that, cash flow from operations has dipped below 2015 levels, although capital spending is now 2 times higher. Interested investors should keep a close eye on Allegiant's ability to convert future revenues into more significant profits for the company.
The case for JetBlue Airways
After returning to profitability in the second half of 2022, JetBlue Airways (NASDAQ: JBLU) achieved the best Q4 operating revenue in company history. Not only that, the New York City-based airline posted its highest annual revenue ever in 2022.
Q4 revenue of $2.4 billion marked JetBlue's record result for the period, driven by a strong completion factor of 98.2%. JetBlue also added new flights in New York City, Boston, and between the American Northeast and London, U.K. last quarter, while also announcing upcoming service to Paris.
While JetBlue Airways finished Q4 with a net income of $24 million, and closed Q3 with a net income of $57 million, for the full year it ended with a net loss of $362 million.
With plans to compete directly with the "Big Four" airlines (Delta Air Lines, American Airlines, United Airlines, and Southwest Airlines), JetBlue initiated the acquisition of Spirit Airlines last year. Expected to close by the first half of 2024, the deal would position JetBlue as a "low-fare challenger to the Big Four airlines," according to CEO Robin Hayes.
However, the U.S. Department of Justice (DOJ) has recently thrown a wrench in the gears of the deal, suing JetBlue in an antitrust lawsuit. DOJ lawyers claim that the merger would reduce competition among U.S. airlines, while Hayes believes it would only improve competition.
As with other airlines, JetBlue acquired substantial debt during the pandemic shutdown and stay-at-home period. On top of that, in order to grow the company and compete with larger airlines, JetBlue will have to take on even more debt. Some might argue that JetBlue is attempting too much, too soon. Time will tell whether the merger closes as expected, but investors should be aware of JetBlue's looming debt snowball.
Acquisition aside, JetBlue became profitable again last year, and Hayes expects JetBlue to generate its "first full year of profit since the pandemic" in 2023. Despite higher rents and landing fees at airports, as well as elevated labor and fuel costs, Hayes predicts JetBlue will approach pre-pandemic margin levels toward the end of this year.
Which airline stock is a better buy?
To determine which stock presents a better buying opportunity right now, I've compared their price-to-sales ratios (P/S), price-to-book ratios (P/B), and financial debt to EBITDA (earnings before interest, taxes, depreciation, and amortization) ratios.
METRIC ALLEGIANT TRAVEL JETBLUE AIRWAYS
Market cap $1.46 billion $2.17 billion
Price-to-sales ratio 0.63 0.23
Price-to-book ratio 1.19 0.61
Financial debt to EBITDA (annual) 6.28 12.19
Data source: Ycharts.
Although JetBlue Airways has a better (lower) P/S ratio and P/B ratio, it also has a significantly larger financial debt to EBITDA ratio. Used as an indicator to determine how many years into the future it would take for a company to pay off its debts, the debt to EBTIDA ratio helps investors gauge how able a company is to pay off its debts -- based on its net debt and EBITDA remaining constant.
Considering it would take JetBlue nearly twice as long to cover its debts than Allegiant, and also that JetBlue has a potential merger on horizon that would accrue even more debt, I think Allegiant Travel stock makes the better buy as of today.
Investors should keep a close eye on Allegiant's gross margin, ensuring that figure grows steadily over time. After all, record-high revenues don't mean much unless a company can convert those into record profits.
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Micah Angel has no position in any of the stocks mentioned. The Motley Fool recommends Allegiant Travel, Delta Air Lines, JetBlue Airways, and Southwest Airlines. 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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Allegiant CFO Robert Neal attributed the revenue gains to "the sustained strong demand environment" combined with better fuel prices and operational efficiencies. Amid "a robust demand environment that shows no signs of slowing," according to CEO John Redmond, Allegiant anticipates setting new revenue records in 2023. Despite higher rents and landing fees at airports, as well as elevated labor and fuel costs, Hayes predicts JetBlue will approach pre-pandemic margin levels toward the end of this year.
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The case for Allegiant Travel Allegiant Travel (NASDAQ: ALGT) generated its highest annual revenue ever last year, surpassing its previous pre-pandemic record by a remarkable 25%. Market cap $1.46 billion $2.17 billion Price-to-sales ratio 0.63 0.23 Price-to-book ratio 1.19 0.61 Financial debt to EBITDA (annual) 6.28 12.19 Data source: Ycharts. The Motley Fool recommends Allegiant Travel, Delta Air Lines, JetBlue Airways, and Southwest Airlines.
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While JetBlue Airways finished Q4 with a net income of $24 million, and closed Q3 with a net income of $57 million, for the full year it ended with a net loss of $362 million. With plans to compete directly with the "Big Four" airlines (Delta Air Lines, American Airlines, United Airlines, and Southwest Airlines), JetBlue initiated the acquisition of Spirit Airlines last year. Considering it would take JetBlue nearly twice as long to cover its debts than Allegiant, and also that JetBlue has a potential merger on horizon that would accrue even more debt, I think Allegiant Travel stock makes the better buy as of today.
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Fourth-quarter operating revenue landed 23% higher than the same period in 2021, totaling $612 million. Q4 revenue of $2.4 billion marked JetBlue's record result for the period, driven by a strong completion factor of 98.2%. Used as an indicator to determine how many years into the future it would take for a company to pay off its debts, the debt to EBTIDA ratio helps investors gauge how able a company is to pay off its debts -- based on its net debt and EBITDA remaining constant.
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2781.0
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2023-03-27 00:00:00 UTC
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Unusual Put Option Trade in American Airlines Group (AAL) Worth $240.00K
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AAL
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https://www.nasdaq.com/articles/unusual-put-option-trade-in-american-airlines-group-aal-worth-%24240.00k
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nan
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On March 27, 2023 at 11:34:25 ET an unusually large $240.00K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $16.00 / share, expiring in 235 days (on November 17, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.02 sigmas above the mean, placing it in the 83.97 percentile of all recent large trades made in AAL options.
This trade was first picked up on Fintel's real time Unusual Option Trades tool, where unusual option trades are highlighted.
Analyst Price Forecast Suggests 23.20% Upside
As of March 27, 2023, the average one-year price target for American Airlines Group is $16.90. The forecasts range from a low of $8.08 to a high of $27.30. The average price target represents an increase of 23.20% from its latest reported closing price of $13.72.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for American Airlines Group is $51,177MM, an increase of 4.50%. The projected annual non-GAAP EPS is $1.52.
What is the Fund Sentiment?
There are 1005 funds or institutions reporting positions in American Airlines Group. This is an increase of 22 owner(s) or 2.24% in the last quarter. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 10.59%. Total shares owned by institutions decreased in the last three months by 3.11% to 397,528K shares. The put/call ratio of AAL is 2.57, indicating a bearish outlook.
What are Large Shareholders Doing?
Primecap Management holds 38,099K shares representing 5.85% ownership of the company. In it's prior filing, the firm reported owning 38,955K shares, representing a decrease of 2.25%. The firm decreased its portfolio allocation in AAL by 2.24% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 19,733K shares representing 3.03% 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.
U S Global Investors holds 16,743K shares representing 2.57% ownership of the company. In it's prior filing, the firm reported owning 16,590K shares, representing an increase of 0.91%. The firm increased its portfolio allocation in AAL by 2.60% over the last quarter.
JETS - U.S. Global Jets ETF holds 16,712K shares representing 2.57% 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.
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.
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 March 27, 2023 at 11:34:25 ET an unusually large $240.00K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $16.00 / share, expiring in 235 days (on November 17, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.02 sigmas above the mean, placing it in the 83.97 percentile of all recent large trades made in AAL options. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 10.59%.
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On March 27, 2023 at 11:34:25 ET an unusually large $240.00K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $16.00 / share, expiring in 235 days (on November 17, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.02 sigmas above the mean, placing it in the 83.97 percentile of all recent large trades made in AAL options. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 10.59%.
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On March 27, 2023 at 11:34:25 ET an unusually large $240.00K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $16.00 / share, expiring in 235 days (on November 17, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.02 sigmas above the mean, placing it in the 83.97 percentile of all recent large trades made in AAL options. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 10.59%.
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On March 27, 2023 at 11:34:25 ET an unusually large $240.00K block of Put contracts in American Airlines Group (AAL) was sold, with a strike price of $16.00 / share, expiring in 235 days (on November 17, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.02 sigmas above the mean, placing it in the 83.97 percentile of all recent large trades made in AAL options. Average portfolio weight of all funds dedicated to AAL is 0.12%, a decrease of 10.59%.
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2782.0
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2023-03-27 00:00:00 UTC
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Botswana partners gem trader HB Antwerp, seeks to loosen De Beers' grip
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AAL
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https://www.nasdaq.com/articles/botswana-partners-gem-trader-hb-antwerp-seeks-to-loosen-de-beers-grip
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GABORONE, March 27 (Reuters) - Botswana will take a 24% stake in Belgian gem processing firm HB Antwerp as it seeks to gain more value from its diamonds, President Mokgweetsi Masisi said Monday, a move which might start to loosen De Beers' grip on the country's diamond industry.
Botswana’s state-owned diamond trading company, Okavango Diamond Company (ODC), will also enter into a five-year agreement to supply rough diamonds to HB Antwerp as part of the deal.
“The key commercial terms of the deal have been agreed and the deal will be signed in the coming weeks. Today is the dawn of a new era for the diamond industry in Botswana, as we begin this journey with HB Antwerp,” Masisi said during the official opening of HB Antwerp’s cutting and polishing facility in Gaborone.
Botswana, which jointly owns Africa’s largest diamond producer Debswana with global giant De Beers, a unit of Anglo American Plc AAL.L, is moving to explore other options outside the 54 year-old De Beers partnership.
The two partners are currently in talks to renew a 2011 sales and marketing agreement which entitles De Beers to 75% of the production from Debswana.
Masisi has threatened to walk away from the talks if Botswana does not get a bigger share of Debswana’s output for marketing outside the De Beers system. The government has not publicly stated what share it seeks, but it is believed to be as high as 50%, double the current allocation.
Founded in 2020, HB Antwerp is currently in partnership with Lucara Diamond Corp LUC.TO, buying stones of 10 carat quality and above from the Toronto-listed miner's Karowe Mine in central Botswana at prices based on the estimated polished outcome of each diamond, determined through state-of-the-art scanning and planning technology.
HB Antwerp says this model, which it seeks to replicate with ODC, allows Lucara to earn 40% more than it would from selling at rough diamond market prices.
“It’s a strategic partnership, it will add more value to Botswana not just in terms of price or money, but empowering the people of Botswana,” HB Antwerp co-founder Rafael Papismedov told Reuters.
(Reporting by Brian Benza; Editing by Nelson Banya and Christina Fincher)
((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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Botswana, which jointly owns Africa’s largest diamond producer Debswana with global giant De Beers, a unit of Anglo American Plc AAL.L, is moving to explore other options outside the 54 year-old De Beers partnership. The two partners are currently in talks to renew a 2011 sales and marketing agreement which entitles De Beers to 75% of the production from Debswana. Masisi has threatened to walk away from the talks if Botswana does not get a bigger share of Debswana’s output for marketing outside the De Beers system.
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Botswana, which jointly owns Africa’s largest diamond producer Debswana with global giant De Beers, a unit of Anglo American Plc AAL.L, is moving to explore other options outside the 54 year-old De Beers partnership. Botswana’s state-owned diamond trading company, Okavango Diamond Company (ODC), will also enter into a five-year agreement to supply rough diamonds to HB Antwerp as part of the deal. Today is the dawn of a new era for the diamond industry in Botswana, as we begin this journey with HB Antwerp,” Masisi said during the official opening of HB Antwerp’s cutting and polishing facility in Gaborone.
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Botswana, which jointly owns Africa’s largest diamond producer Debswana with global giant De Beers, a unit of Anglo American Plc AAL.L, is moving to explore other options outside the 54 year-old De Beers partnership. GABORONE, March 27 (Reuters) - Botswana will take a 24% stake in Belgian gem processing firm HB Antwerp as it seeks to gain more value from its diamonds, President Mokgweetsi Masisi said Monday, a move which might start to loosen De Beers' grip on the country's diamond industry. Botswana’s state-owned diamond trading company, Okavango Diamond Company (ODC), will also enter into a five-year agreement to supply rough diamonds to HB Antwerp as part of the deal.
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Botswana, which jointly owns Africa’s largest diamond producer Debswana with global giant De Beers, a unit of Anglo American Plc AAL.L, is moving to explore other options outside the 54 year-old De Beers partnership. Botswana’s state-owned diamond trading company, Okavango Diamond Company (ODC), will also enter into a five-year agreement to supply rough diamonds to HB Antwerp as part of the deal. HB Antwerp says this model, which it seeks to replicate with ODC, allows Lucara to earn 40% more than it would from selling at rough diamond market prices.
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2783.0
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2023-03-27 00:00:00 UTC
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Can American Airlines Shake Off Enough Weight For Profit Takeoff?
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AAL
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https://www.nasdaq.com/articles/can-american-airlines-shake-off-enough-weight-for-profit-takeoff
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Flying can be a highly rewarding activity for most people. Not only is it an opportunity to log off from the stressors of life and the world, but it's also a way to earn rewards, such as cash back when booking with select credit cards and earning miles for every trip when joining an airline's membership rewards program.
For those who are bold or savvy enough to invest in airline stocks, there are additional benefits beyond those enjoyed by the daily users of airlines - travelers. Most of the players in the industry are low-volatility stocks with a nice and steady dividend attached to them, as these are established household names. However, as the COVID-19 pandemic took over the global economy and prompted several governments to enforce lockdowns for their citizens, rules and regulations aiming to mitigate the spread of the disease targeted air travel as the initial form of migration to be shut down.
When airlines were forced to shut down because nobody was allowed to travel to, from, or within most countries in the world, cash flows dried up quicker than most balance sheets could handle. When there is no revenue in sight until some future date when governments decide to reopen travel to the public, and issuing shares is not a sensible solution since stock values are at rock bottom, the only solution in order to fund another day to stay afloat is taking on debt. Most airlines chose this route when facing immediate or proximate bankruptcy.
Leverage it and forget it
American Airlines (NASDAQ: AAL) was forced to commit one of the deadly sins that apply to a public company - as did all other airline stock peers - when the lockdown effects of the COVID-19 pandemic pushed the importance of paying out dividends to shareholders to the back burner. No cash flows from operations means - firstly - no cash to pay fixed expenses like interest charges, payroll, maintenance and any other capital expenditure necessary for the upkeep and expansion of aircraft fleet.
Secondly, no cash flows from operations mean that these fixed expenses need to be paid through cash on hand, an item American Airlines does not typically carry a lot of (less than 1% of assets historically). Without cash on hand, management may look to liquidate assets to keep the business going. However, American Airlines carries most of its assets in licenses and routes with airports (something that, if sold, would effectively ruin the business) or in aircraft equipment and property (which, if sold, would decrease future income potential). If everything is shut down, aircraft would be sold at a steep loss.
Ultimately backed into a corner, American Airlines took on debt levels (in the tune of $10 billion USD) higher than its pre-pandemic comparable capital structure. Today, American Airlines holds over 90% of its capital structure in debt, significantly threatening its BB credit rating position. If downgraded, future profitability would be severely affected by the increase in interest charges (debt becomes more expensive once credit ratings lower).
Pivoting demand and future cash flows
So now that American Airlines finds itself in engulfing debt and razor-thin margins with negligible free cash flow, new CFO Devon May has devised a $15 billion USD debt reduction by 2025 plan made possible by expected free cash flows, which would dwarf all historical measures achieved by the airline.
Looking at the year 2022 may place some doubt in the minds of investors when thinking about these aggressive free cash flow projections. Management points to $3 billion USD in free cash flow when the pre-pandemic average has been only $500 million. While revenues did increase by 63.9% in 2022 when compared to 2021, on dollar-terms, revenues are only around 10% higher than their pre-pandemic levels. Additionally, gross margins reached their lowest levels in the five-year lookback period due to higher fuel costs, price discounts, and incentives to stimulate the return of travel and inefficiencies in aircraft routing.
Despite these negative metrics, there is still some light at the end of the runway. American Airlines reported its first net income positive year since 2019 at $0.19 earnings per share due to the return in travel demand pushing revenues. This rising demand trend, along with lower oil prices currently, is allowing airlines to expand their gross margins and focus on efficiency investments or debt repayments.
Reportedly, during slower periods for the industry, American Airlines took care of the necessary capital expenditures (CAPEX) pertaining to their aircraft fleet. Management is now pointing to limited expenditure requirements for 2023, guiding toward $2.3 billion USD. Furthermore, investors now have the free cash flow expectation of $3 billion USD or even higher for 2024 and 2025 when the company will be able to repay the targeted $15 billion USD in debt.
Faith in valuations
If management can achieve these free cash flow levels and begin to repay debt to maintain its grip on BB credit ratings, expanding margins and net income are likely to follow. For these and other reasons, management is guiding for full-year 2023 earnings per share between $2.50 and $3.50, which could translate to the current consensus analyst price targets.
Investors would be well served to maintain a cautious view of the slowing global economy, which can directly affect travel. The company will need to generate a minimum of $5.3 billion in operating cash flows (something never done before) to fulfill management's promise of $3 billion USD in free cash flows. Fixed costs and demand trends will be the drivers of this goal.
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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Leverage it and forget it American Airlines (NASDAQ: AAL) was forced to commit one of the deadly sins that apply to a public company - as did all other airline stock peers - when the lockdown effects of the COVID-19 pandemic pushed the importance of paying out dividends to shareholders to the back burner. However, as the COVID-19 pandemic took over the global economy and prompted several governments to enforce lockdowns for their citizens, rules and regulations aiming to mitigate the spread of the disease targeted air travel as the initial form of migration to be shut down. Additionally, gross margins reached their lowest levels in the five-year lookback period due to higher fuel costs, price discounts, and incentives to stimulate the return of travel and inefficiencies in aircraft routing.
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Leverage it and forget it American Airlines (NASDAQ: AAL) was forced to commit one of the deadly sins that apply to a public company - as did all other airline stock peers - when the lockdown effects of the COVID-19 pandemic pushed the importance of paying out dividends to shareholders to the back burner. Ultimately backed into a corner, American Airlines took on debt levels (in the tune of $10 billion USD) higher than its pre-pandemic comparable capital structure. American Airlines reported its first net income positive year since 2019 at $0.19 earnings per share due to the return in travel demand pushing revenues.
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Leverage it and forget it American Airlines (NASDAQ: AAL) was forced to commit one of the deadly sins that apply to a public company - as did all other airline stock peers - when the lockdown effects of the COVID-19 pandemic pushed the importance of paying out dividends to shareholders to the back burner. Pivoting demand and future cash flows So now that American Airlines finds itself in engulfing debt and razor-thin margins with negligible free cash flow, new CFO Devon May has devised a $15 billion USD debt reduction by 2025 plan made possible by expected free cash flows, which would dwarf all historical measures achieved by the airline. Furthermore, investors now have the free cash flow expectation of $3 billion USD or even higher for 2024 and 2025 when the company will be able to repay the targeted $15 billion USD in debt.
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Leverage it and forget it American Airlines (NASDAQ: AAL) was forced to commit one of the deadly sins that apply to a public company - as did all other airline stock peers - when the lockdown effects of the COVID-19 pandemic pushed the importance of paying out dividends to shareholders to the back burner. Management points to $3 billion USD in free cash flow when the pre-pandemic average has been only $500 million. American Airlines reported its first net income positive year since 2019 at $0.19 earnings per share due to the return in travel demand pushing revenues.
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2784.0
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2023-03-24 00:00:00 UTC
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U.S. rejects JetBlue, Spirit exemption request, citing lawsuit
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AAL
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https://www.nasdaq.com/articles/u.s.-rejects-jetblue-spirit-exemption-request-citing-lawsuit
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By David Shepardson
WASHINGTON, March 24 (Reuters) - The U.S. Transportation Department on Friday denied an exemption request by JetBlue and Spirit to operate under common ownership, citing the Justice Department's antitrust lawsuit filed this month seeking to block the deal.
JetBlue's planned $3.8 billion acquisition of ultra-low cost carrier Spirit was announced last July. They then filed an exemption application asking the Transportation Department to permit them to operate under common ownership prior to a requested transfer application that seeks approval to combine and operate international routes under one certificate.
The Justice Department on March 7 challenged the deal, saying it would eliminate competition, lead to higher ticket prices, reduce passenger capacity and shrink consumer choices.
The Transportation Department said it rejected the exemption request in light of President Joe Biden's executive order that it "coordinate competition efforts, DOJ's (Justice Department) conclusion that the proposed merger would have anti-competitive effects, and the pendency of the federal lawsuit challenging the legality of the transaction."
JetBlue said in a statement it believes a court "will recognize the pro-competitive merits of this combination, which will create a national low-fare challenger to the dominant Big Four airlines."
The Transportation Department decision on the exemption "does not change that belief or our confidence that we will close the transaction, within our expected timeframe, following completion of the court case," JetBlue added.
The Transportation Department said it found the exemption request was premature given the ongoing lawsuit. A federal judge this week set an Oct. 16 trial in the lawsuit.
The Justice Department, which sued alongside the states of Massachusetts and New York as well as the District of Columbia, concluded that the deal was "presumptively illegal" and that JetBlue planned to remove 10% to 15% of seats from every Spirit plane.
JetBlue CEO Robin Hayes has denied that the merger would reduce capacity.
"This argument that we'll take seats out and fares are going to go up - we're going to put capacity back," Hayes said in an interview this month, by doing things such as using larger planes on existing routes and by flying planes more often.
"It's good for consumers," Hayes added said. "It'll shake up the airline industry, and so it should be approved on an expedited basis."
The case is separate from a still-pending antitrust lawsuit the Justice Department also filed in Boston that seeks to force American Airlines AAL.O and JetBlue to scrap their U.S. Northeast partnership because it would mean higher prices for consumers.
JetBlue wins Spirit takeover battle with $3.8 billion deal
(Reporting by David Shepardson; editing by Jonathan Oatis)
((David.Shepardson@thomsonreuters.com; 2028988324;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The case is separate from a still-pending antitrust lawsuit the Justice Department also filed in Boston that seeks to force American Airlines AAL.O and JetBlue to scrap their U.S. Northeast partnership because it would mean higher prices for consumers. The Justice Department on March 7 challenged the deal, saying it would eliminate competition, lead to higher ticket prices, reduce passenger capacity and shrink consumer choices. The Justice Department, which sued alongside the states of Massachusetts and New York as well as the District of Columbia, concluded that the deal was "presumptively illegal" and that JetBlue planned to remove 10% to 15% of seats from every Spirit plane.
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The case is separate from a still-pending antitrust lawsuit the Justice Department also filed in Boston that seeks to force American Airlines AAL.O and JetBlue to scrap their U.S. Northeast partnership because it would mean higher prices for consumers. By David Shepardson WASHINGTON, March 24 (Reuters) - The U.S. Transportation Department on Friday denied an exemption request by JetBlue and Spirit to operate under common ownership, citing the Justice Department's antitrust lawsuit filed this month seeking to block the deal. They then filed an exemption application asking the Transportation Department to permit them to operate under common ownership prior to a requested transfer application that seeks approval to combine and operate international routes under one certificate.
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The case is separate from a still-pending antitrust lawsuit the Justice Department also filed in Boston that seeks to force American Airlines AAL.O and JetBlue to scrap their U.S. Northeast partnership because it would mean higher prices for consumers. By David Shepardson WASHINGTON, March 24 (Reuters) - The U.S. Transportation Department on Friday denied an exemption request by JetBlue and Spirit to operate under common ownership, citing the Justice Department's antitrust lawsuit filed this month seeking to block the deal. The Transportation Department said it rejected the exemption request in light of President Joe Biden's executive order that it "coordinate competition efforts, DOJ's (Justice Department) conclusion that the proposed merger would have anti-competitive effects, and the pendency of the federal lawsuit challenging the legality of the transaction."
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The case is separate from a still-pending antitrust lawsuit the Justice Department also filed in Boston that seeks to force American Airlines AAL.O and JetBlue to scrap their U.S. Northeast partnership because it would mean higher prices for consumers. By David Shepardson WASHINGTON, March 24 (Reuters) - The U.S. Transportation Department on Friday denied an exemption request by JetBlue and Spirit to operate under common ownership, citing the Justice Department's antitrust lawsuit filed this month seeking to block the deal. The Transportation Department said it found the exemption request was premature given the ongoing lawsuit.
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2785.0
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2023-03-24 00:00:00 UTC
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Alaska Air (ALK) Inks Deal Related to SAF With Shell Aviation
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AAL
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https://www.nasdaq.com/articles/alaska-air-alk-inks-deal-related-to-saf-with-shell-aviation
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Alaska Air Group, Inc. (ALK) announced that it has entered into an agreement with Shell Aviation for the supply of sustainable aviation fuel (SAF) to the West Coast and create further opportunities for SAF in the Pacific Northwest.Shell Aviation will also supply up to 10 million gallons of neat SAF to Alaska Airlines at their hub in Los Angeles.
SAFis a safe, certified drop-in fuel which meets jet fuel standards and reduces carbon emissions by up to 80% of lifecycle emissions.
Diana Birkett Rakow, senior vice president for public affairs and sustainability at Alaska, stated, "Alaska Airlines has set our course to net zero by 2040 and sustainable aviation fuels represent the greatest near-term opportunity to make a step-level change on that journey." She further added, "That's why we've pioneered SAF technologies for more than a decade. But we can't scale the market alone. We're excited to take this next step in the journey with Shell, to leverage their deep knowledge of the energy industry, its infrastructure requirements and supply chain to make lower lifecycle carbon SAF more widely available for the future."
This cross-industry collaboration is expected to expand SAF usage through advanced technology, development, infrastructure and investment while addressing cost issues also.
Considering the buoyancy in air-travel demand post-COVID-19 travel restrictions and re-opening of the global economy, this energy sign agreement to decarbonize the aviation industry through SAF advancement should boost Alaska Air’s competitive position in the aviation industry.
Currently, Alaska Air carries a Zacks Rank #2 (Buy).
Investors interested in other top-ranked stocks from the Zacks Transportation – Airline industry can consider Copa Holdings, S.A. CPA and American Airlines AAL. Copa Holdings presently sports a Zacks Rank #1 (Strong Buy) and American Airlines carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Copa Holdings has an expected earnings growth rate of 39.83% for the current year. CPA delivered a trailing four-quarter earnings surprise of 33.35%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 21.1% over the past 90 days. Shares of CPA have soared 32% over the past six months.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 31.1% over the past 90 days. Shares of AAL have gained 13.2% over the past six months.
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.
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Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors interested in other top-ranked stocks from the Zacks Transportation – Airline industry can consider Copa Holdings, S.A. CPA and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
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Investors interested in other top-ranked stocks from the Zacks Transportation – Airline industry can consider Copa Holdings, S.A. CPA and American Airlines AAL. Click to get this free report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. AAL has an expected earnings growth rate of more than 100% for the current year.
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Investors interested in other top-ranked stocks from the Zacks Transportation – Airline industry can consider Copa Holdings, S.A. CPA and American Airlines AAL. Click to get this free report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. AAL has an expected earnings growth rate of more than 100% for the current year.
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The Zacks Consensus Estimate for AAL’s current-year earnings has improved 31.1% over the past 90 days. Investors interested in other top-ranked stocks from the Zacks Transportation – Airline industry can consider Copa Holdings, S.A. CPA and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year.
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2786.0
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2023-03-23 00:00:00 UTC
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Interesting AAL Put And Call Options For May 5th
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AAL
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https://www.nasdaq.com/articles/interesting-aal-put-and-call-options-for-may-5th
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the May 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new May 5th contracts and identified one put and one call contract of particular interest.
The put contract at the $13.50 strike price has a current bid of 63 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $13.50, but will also collect the premium, putting the cost basis of the shares at $12.87 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $14.13/share today.
Because the $13.50 strike represents an approximate 4% 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 4.67% return on the cash commitment, or 39.61% 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 $13.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $14.50 strike price has a current bid of 77 cents. If an investor was to purchase shares of AAL stock at the current price level of $14.13/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $14.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 8.07% if the stock gets called away at the May 5th 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 $14.50 strike highlighted in red:
Considering the fact that the $14.50 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 5.45% boost of extra return to the investor, or 46.26% 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 $14.13) to be 52%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
Also see:
BALL market cap history
Institutional Holders of CORZ
Funds Holding FIDI
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 $14.50 strike highlighted in red: Considering the fact that the $14.50 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the May 5th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $14.50 strike highlighted in red: Considering the fact that the $14.50 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the May 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new May 5th 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 $14.50 strike highlighted in red: Considering the fact that the $14.50 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the May 5th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new May 5th 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 May 5th 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 $14.50 strike highlighted in red: Considering the fact that the $14.50 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the May 5th expiration.
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2787.0
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2023-03-23 00:00:00 UTC
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CSX Signs Deal Related to Paid Sick Leave With IBEW Union
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https://www.nasdaq.com/articles/csx-signs-deal-related-to-paid-sick-leave-with-ibew-union
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CSX Corporation CSX announced that it has entered into an agreement with the International Brotherhood of Electrical Workers (IBEW). This deal, being the seventh one between CSX and rail unions in recent weeks, aims at offering paid sick leave to employees. The deal covers almost 7,700 or 46% of CSX’s union-represented workforce.
Apart from IBEW, other unions that have negotiated paid sick leave for their members are the Brotherhood of Maintenance of Way, which represents track workers, the Brotherhood of Railway Carmen, representing mechanical employees, the International Association of Machinists and Aerospace Workers, representing railroad machinists, and the National Conference of Firemen and Oilers, an association of CSX’s utility workers.
Such deals reflect CSX’s employee-friendly attitude through which it tries to maintain cordial relations with its employees and the unions representing them, thereby providing a healthy work atmosphere at CSX.
Joe Hinrichs, president and chief executive officer of CSX, stated, “We are pleased by the progress we are making to improve the dialogue and strengthen relationships with rail labor.” He further added, “This newest agreement, with the IBEW, is a continuation of the spirit of cooperation that we are committed to pursuing as we work together to improve the employee work experience, enhance the safety of our operations, and grow the business.”
Over the past six months, shares of CSX have gained 3.1% compared with the 1.8% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Notably, companies in the Zacks Transportation – Rail industry are entering into collective deals with the unions. Canadian National Railway Company (CNI) announced that it has entered into new tentative collective deals with Unifor. These collective agreements represent nearly 3,000 Canadian National employees engaged in multiple departments such as mechanical, intermodal, facility management and clerical positions in Canada. Further details will be unveiled once the deal becomes official.
Canadian Pacific Railway Limited CP also recently announced that it had inked a tentative collective agreement with the Teamsters Canada Rail Conference Maintenance of Way Employees Division (TCRC-MWED). TCRC-MWED covers almost 2,600 engineering services employees in Canada.
Canadian Pacific has a track record of successfully dealing with multiple unions representing craft employees. In the last few months, Canadian Pacific has inked 16 agreements in 2023 in Canada and the United States.
Zacks Rank & Stock to Consider
Currently, CSX carries a Zacks Rank #3 (Hold).
A better-ranked stock from the broader Zacks Transportation sector is American Airlines AAL, which currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 31.1% over the past 90 days. Shares of AAL have gained 16.5% over the past six months.
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Our urgent special report reveals 4 hydrogen stocks primed for big gains - plus our other top clean energy stocks.
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CSX Corporation (CSX) : Free Stock Analysis Report
Canadian National Railway Company (CNI) : Free Stock Analysis Report
Canadian Pacific Railway Limited (CP) : 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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A better-ranked stock from the broader Zacks Transportation sector is American Airlines AAL, which currently carries a Zacks Rank #2 (Buy). AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
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Click to get this free report CSX Corporation (CSX) : Free Stock Analysis Report Canadian National Railway Company (CNI) : Free Stock Analysis Report Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock from the broader Zacks Transportation sector is American Airlines AAL, which currently carries a Zacks Rank #2 (Buy). AAL has an expected earnings growth rate of more than 100% for the current year.
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Click to get this free report CSX Corporation (CSX) : Free Stock Analysis Report Canadian National Railway Company (CNI) : Free Stock Analysis Report Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. A better-ranked stock from the broader Zacks Transportation sector is American Airlines AAL, which currently carries a Zacks Rank #2 (Buy). AAL has an expected earnings growth rate of more than 100% for the current year.
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The Zacks Consensus Estimate for AAL’s current-year earnings has improved 31.1% over the past 90 days. A better-ranked stock from the broader Zacks Transportation sector is American Airlines AAL, which currently carries a Zacks Rank #2 (Buy). AAL has an expected earnings growth rate of more than 100% for the current year.
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2788.0
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2023-03-23 00:00:00 UTC
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Here's Why You Should Retain FedEx (FDX) in Your Portfolio
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https://www.nasdaq.com/articles/heres-why-you-should-retain-fedex-fdx-in-your-portfolio
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FedEx Corporation (FDX) is benefiting from its solid liquidity as well as investor-friendly steps. However, demand weakness is a headwind.
Factors Favoring FDX
FedEx's liquidity position is solid. Notably, the company's current ratio, a measure of liquidity, was pegged at 1.32 at the end of third-quarter fiscal 2023. A current ratio of more than 1 indicates that the company's assets will be able to cover its debts that are due at the end of the year.
Moreover, the company exited the third quarter of fiscal 2023 with cash and equivalents of $5,373 million, much higher than its current debt of $147 million.
We are pleased with the company’s efforts to reward its shareholders even in these difficult times. In June 2022, FedEx raised its quarterly dividend by 53% to $1.15 per share (or $4.60 annually). FDX is also active on the buyback front. During fiscal 2022, FedEx repurchased shares worth $2.2 billion.
Key Risk
Due to demand weakness, FDX trimmed its estimate for fiscal 2023 capital expenditures to $5.9 billion (prior view: $6.3 billion). This might hit its long-term growth prospects.
Zacks Rank & Key Picks
FedEx currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and United Airlines (UAL).
American Airlines, currently carrying a Zacks Rank #2 (Buy), is benefiting from the improved air-travel-demand situation. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
For first-quarter and full-year 2023, AAL’s earnings are expected to register 100.4% and 332% growth, respectively, on a year-over-year basis.
United Airlines, carrying a Zacks Rank #2 at present, is seeing steady recovery in domestic and leisure air-travel demand. On the back of upbeat air-travel demand, UAL was profitable in the fourth quarter of 2022. The fourth quarter was the third consecutive profitable quarter at UAL.
Driven by solid demand, management expects total revenue per available seat mile to grow 25% year over year for the first quarter of 2023. Total revenues are anticipated to grow 50% year over year. The Zacks Consensus Estimate for full-year 2023 earnings are expected to surge 227% year over year.
Is THIS the Ultimate New Clean Energy Source? (4 Ways to Profit)
The world is increasingly focused on eliminating fossil fuels and ramping up use of renewable, clean energy sources. Hydrogen fuel cells, powered by the most abundant substance in the universe, could provide an unlimited amount of ultra-clean energy for multiple industries.
Our urgent special report reveals 4 hydrogen stocks primed for big gains - plus our other top clean energy stocks.
See Stocks 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
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
FedEx Corporation (FDX) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Dynex Capital, Inc. (DX) : 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 United Airlines (UAL). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. For first-quarter and full-year 2023, AAL’s earnings are expected to register 100.4% and 332% growth, respectively, on a year-over-year basis.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report FedEx Corporation (FDX) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Dynex Capital, Inc. (DX) : 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 United Airlines (UAL). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report FedEx Corporation (FDX) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Dynex Capital, Inc. (DX) : 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 United Airlines (UAL). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and United Airlines (UAL). For first-quarter and full-year 2023, AAL’s earnings are expected to register 100.4% and 332% growth, respectively, on a year-over-year basis.
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2789.0
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2023-03-23 00:00:00 UTC
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Hawaiian Holdings' (HA) Arm to Add Five Routes This Summer
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AAL
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https://www.nasdaq.com/articles/hawaiian-holdings-ha-arm-to-add-five-routes-this-summer
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Hawaiian Holdings’ (HA) subsidiary, Hawaiian Airlines, announced enhanced frequencies to several travel destinations to boost summer air travel, which will begin from May. The carrier announced five new routes from Honolulu to Austin, Boston, Las Vegas, Pago Pago and Los Angeles, offering more options for travelers.
From Honolulu, the carrier will fly to Austin (May 26 – Aug 18), Boston (Jun 15 – Aug 17) and Pago Pago (Jun 7 – Aug 30) once a week. Two flights to Las Vegas will fly through May 31-Aug 30 (once a week on Wednesdays) and Jun 3-Jul 29 (once a week on Saturdays). The Honolulu- Los Angeles flight will travel twice a week from Jun 2 to Jul 28. While peak summer frequency for Las Vegas will be 20 times per week, it will be 23 times per week for Los Angeles.
The senior vice president – chief revenue officer at Hawaiian Airlines, Brent Overbeek, stated, “We're encouraged by the robust demand for travel to Hawai'i this summer season and these increases signal a healthy return in our key North America markets.” HA will operate these routes with a mix of Airbus A330 and A321neo aircraft.
Zacks Rank & Key Picks
Hawaiian Holdings carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and United Airlines (UAL).
American Airlines, currently carrying a Zacks Rank #2 (Buy), is benefiting from the improved air-travel-demand situation. For the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
For first-quarter and full-year 2023, AAL’s earnings are expected to register 100.4% and 332% growth, respectively, on a year-over-year basis.
United Airlines, carrying a Zacks Rank #2 at present, is seeing steady recovery in domestic and leisure air-travel demand. On the back of upbeat air-travel demand, UAL was profitable in the fourth quarter of 2022. The fourth quarter was the third consecutive profitable quarter at UAL.
Driven by solid demand, management expects total revenue per available seat mile to grow 25% year over year for the first quarter of 2023. Total revenues are anticipated to grow 50% year over year. The Zacks Consensus Estimate for full-year 2023 earnings are expected to surge 227% year over year.
Is THIS the Ultimate New Clean Energy Source? (4 Ways to Profit)
The world is increasingly focused on eliminating fossil fuels and ramping up use of renewable, clean energy sources. Hydrogen fuel cells, powered by the most abundant substance in the universe, could provide an unlimited amount of ultra-clean energy for multiple industries.
Our urgent special report reveals 4 hydrogen stocks primed for big gains - plus our other top clean energy stocks.
See Stocks 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
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA) : 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 United Airlines (UAL). For the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. For first-quarter and full-year 2023, AAL’s earnings are expected to register 100.4% and 332% growth, respectively, on a year-over-year basis.
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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 Hawaiian Holdings, Inc. (HA) : 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 United Airlines (UAL). For the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and United Airlines (UAL). Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Hawaiian Holdings, Inc. (HA) : Free Stock Analysis Report To read this article on Zacks.com click here. For the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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For the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and United Airlines (UAL). For first-quarter and full-year 2023, AAL’s earnings are expected to register 100.4% and 332% growth, respectively, on a year-over-year basis.
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2790.0
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2023-03-23 00:00:00 UTC
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American Airlines Group Inc. (AAL) Is a Trending Stock: Facts to Know Before Betting on It
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc.-aal-is-a-trending-stock%3A-facts-to-know-before-betting-on-it-0
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American Airlines (AAL) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this world's largest airline have returned -11.2% over the past month versus the Zacks S&P 500 composite's -1.2% change. The Zacks Transportation - Airline industry, to which American Airlines belongs, has lost 8% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate Revisions
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
American Airlines is expected to post earnings of $0.01 per share for the current quarter, representing a year-over-year change of +100.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +800%.
For the current fiscal year, the consensus earnings estimate of $2.16 points to a change of +332% from the prior year. Over the last 30 days, this estimate has changed -0.3%.
For the next fiscal year, the consensus earnings estimate of $2.73 indicates a change of +26.4% from what American Airlines is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for American Airlines.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of American Airlines, the consensus sales estimate of $12.25 billion for the current quarter points to a year-over-year change of +37.6%. The $53.57 billion and $55.53 billion estimates for the current and next fiscal years indicate changes of +9.4% and +3.7%, respectively.
Last Reported Results and Surprise History
American Airlines reported revenues of $13.19 billion in the last reported quarter, representing a year-over-year change of +39.9%. EPS of $1.17 for the same period compares with -$1.42 a year ago.
Compared to the Zacks Consensus Estimate of $13.22 billion, the reported revenues represent a surprise of -0.22%. The EPS surprise was +2.63%.
Over the last four quarters, American Airlines surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
American Airlines is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about American Airlines. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Is THIS the Ultimate New Clean Energy Source? (4 Ways to Profit)
The world is increasingly focused on eliminating fossil fuels and ramping up use of renewable, clean energy sources. Hydrogen fuel cells, powered by the most abundant substance in the universe, could provide an unlimited amount of ultra-clean energy for multiple industries.
Our urgent special report reveals 4 hydrogen stocks primed for big gains - plus our other top clean energy stocks.
See Stocks 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) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Bottom Line The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about American Airlines.
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American Airlines (AAL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. For the next fiscal year, the consensus earnings estimate of $2.73 indicates a change of +26.4% from what American Airlines is expected to report a year ago.
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American Airlines (AAL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions.
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American Airlines (AAL) has recently been on Zacks.com's list of the most searched stocks. Click to get this free report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. And if earnings estimates go up for a company, the fair value for its stock goes up.
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2791.0
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2023-03-23 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-0
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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 growth 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 growth 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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2792.0
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2023-03-22 00:00:00 UTC
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Here's Why You Should Retain CSX Corporation (CSX) Stock Now
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AAL
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https://www.nasdaq.com/articles/heres-why-you-should-retain-csx-corporation-csx-stock-now
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nan
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CSX Corporation (CSX) is benefiting from its solid liquidity as well as investor-friendly steps. However, escalating costs are worrisome.
Factors Favoring CSX
CSX’s cash and cash equivalents were $2,087 million at the end of 2022, much higher than the current debt of $151 million, implying that the company has sufficient cash to meet its current debt obligations.
The company’s commitment to reward its shareholders is encouraging. In February 2023 the company announced a 10% hike in its quarterly dividend to 11cents per share. In 2022, CSX rewarded shareholders roughly $5,583 million through buybacks ($4,731 million) and dividends ($852 million).In 2021, the company returned more than $3.7 billion to shareholders through buybacks ($2.9 billion) and dividends (over $800 million).
Key Risk
High costs due to an increase in labor and fringe expenses, purchased services and other, and fuel expenses are limiting CSX’s bottom line. In 2021, total expenses rose 11% year over year due to 12%, 24% and 69% increases in labor and fringe, purchased services and other, and fuel costs, respectively. In 2022, operating expenses increased 27% year over year, mainly due to 78% rise in fuel expenses.
The cost hike in fuel was due to steep rise in highway diesel fuel prices as well as the addition of non-locomotive fuel used for trucking. Costs are likely to be high in the March quarter too.
Zacks Rank & Key Picks
CSX Corp currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and United Airlines (UAL).
American Airlines, currently carrying a Zacks Rank #2 (Buy), is benefiting from the improved air-travel-demand situation. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
For first-quarter and full-year 2023, AAL’s earnings are expected to register 100.4% and 332% growth on a year-over-year basis.
United Airlines, carrying a Zacks Rank #2 at present, is seeing steady recovery in domestic and leisure air-travel demand. On the back of upbeat air-travel demand, UAL was profitable in the fourth quarter of 2022. The fourth quarter was the third consecutive profitable quarter at UAL.
Driven by solid demand, management expects total revenue per available seat mile to grow 25% year over year for the first quarter of 2023. Total revenues are anticipated to grow 50% year over year. The Zacks Consensus Estimate for full-year 2023 earnings are expected to surge 227% year-over-year.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CSX Corporation (CSX) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and United Airlines (UAL). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. For first-quarter and full-year 2023, AAL’s earnings are expected to register 100.4% and 332% growth on a year-over-year basis.
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Click to get this free report CSX Corporation (CSX) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and United Airlines (UAL). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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Click to get this free report CSX Corporation (CSX) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and United Airlines (UAL). In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. Click to get this free report CSX Corporation (CSX) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and United Airlines (UAL).
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2793.0
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2023-03-21 00:00:00 UTC
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Judge sets October trial in US challenge to JetBlue's Spirit deal
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https://www.nasdaq.com/articles/judge-sets-october-trial-in-us-challenge-to-jetblues-spirit-deal
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By Nate Raymond and David Shepardson
BOSTON, March 21 (Reuters) - A U.S. judge on Tuesday scheduled an Oct. 16 trial in the U.S. Justice Department's lawsuit seeking to halt JetBlue Airways Corp's JBLU.O planned $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines Inc SAVE.N.
U.S. District Judge William Young in Boston scheduled the nonjury, four-week trial during the first hearing to be held in the blockbuster case, which the Justice Department filed two weeks ago.
While JetBlue had sought an earlier trial date in September, Young said October was the soonest he could make time for the case. He promised to move expeditiously, and said he believed he had an "obligation" to try to rule by the end of the year.
"I'm perfectly prepared to handle the matter and look forward to it," Young said.
The Justice Department, which sued alongside the states of Massachusetts and New York as well as Washington, D.C., said the merger of JetBlue and Spirit would "combine two especially close and fierce head-to-head competitors."
It called the deal "presumptively illegal." It also said that JetBlue planned to remove 10% to 15% of seats from every Spirit plane.
JetBlue has argued that the merger, which would create the fifth-largest U.S. carrier with a market share of 9%, was good for competition and would allow it to better compete with the big airlines.
The case is separate from a still-pending antitrust lawsuit the Justice Department also filed in Boston that seeks to force American Airlines AAL.O and JetBlue to scrap their U.S. Northeast partnership because it would mean higher prices for consumers.
The parties are awaiting a judge's ruling in that case after a trial last year.
(Reporting by Nate Raymond in Boston and David Shepardson in Washington; editing by Jonathan Oatis)
((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond; 347-243-6917; Reuters Messaging: nate.raymond.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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The case is separate from a still-pending antitrust lawsuit the Justice Department also filed in Boston that seeks to force American Airlines AAL.O and JetBlue to scrap their U.S. Northeast partnership because it would mean higher prices for consumers. By Nate Raymond and David Shepardson BOSTON, March 21 (Reuters) - A U.S. judge on Tuesday scheduled an Oct. 16 trial in the U.S. Justice Department's lawsuit seeking to halt JetBlue Airways Corp's JBLU.O planned $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines Inc SAVE.N. U.S. District Judge William Young in Boston scheduled the nonjury, four-week trial during the first hearing to be held in the blockbuster case, which the Justice Department filed two weeks ago.
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The case is separate from a still-pending antitrust lawsuit the Justice Department also filed in Boston that seeks to force American Airlines AAL.O and JetBlue to scrap their U.S. Northeast partnership because it would mean higher prices for consumers. By Nate Raymond and David Shepardson BOSTON, March 21 (Reuters) - A U.S. judge on Tuesday scheduled an Oct. 16 trial in the U.S. Justice Department's lawsuit seeking to halt JetBlue Airways Corp's JBLU.O planned $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines Inc SAVE.N. (Reporting by Nate Raymond in Boston and David Shepardson in Washington; editing by Jonathan Oatis) ((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond; 347-243-6917; Reuters Messaging: nate.raymond.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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The case is separate from a still-pending antitrust lawsuit the Justice Department also filed in Boston that seeks to force American Airlines AAL.O and JetBlue to scrap their U.S. Northeast partnership because it would mean higher prices for consumers. By Nate Raymond and David Shepardson BOSTON, March 21 (Reuters) - A U.S. judge on Tuesday scheduled an Oct. 16 trial in the U.S. Justice Department's lawsuit seeking to halt JetBlue Airways Corp's JBLU.O planned $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines Inc SAVE.N. U.S. District Judge William Young in Boston scheduled the nonjury, four-week trial during the first hearing to be held in the blockbuster case, which the Justice Department filed two weeks ago.
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The case is separate from a still-pending antitrust lawsuit the Justice Department also filed in Boston that seeks to force American Airlines AAL.O and JetBlue to scrap their U.S. Northeast partnership because it would mean higher prices for consumers. By Nate Raymond and David Shepardson BOSTON, March 21 (Reuters) - A U.S. judge on Tuesday scheduled an Oct. 16 trial in the U.S. Justice Department's lawsuit seeking to halt JetBlue Airways Corp's JBLU.O planned $3.8 billion acquisition of ultra-low-cost carrier Spirit Airlines Inc SAVE.N. U.S. District Judge William Young in Boston scheduled the nonjury, four-week trial during the first hearing to be held in the blockbuster case, which the Justice Department filed two weeks ago.
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2794.0
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2023-03-21 00:00:00 UTC
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Canadian National (CNI), Unifor Sign Tentative Collective Deals
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https://www.nasdaq.com/articles/canadian-national-cni-unifor-sign-tentative-collective-deals
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Canadian National Railway Company CNI announced that it has entered into new tentative collective deals with Unifor. These collective agreements represent nearly 3,000 Canadian National employees who are engaged in multiple departments such as mechanical, intermodal, facility management and clerical positions in Canada.
Further details of the tentative deals will be unveiled once the deal becomes official.
Tracy Robinson, president and chief executive officer of Canadian National stated, “We are very pleased to have reached these tentative agreements. CN has always been committed to achieving negotiated settlements to improve the conditions of this important group of employees as we continue our essential work moving the North American economy. We look forward to future collaboration with Unifor.”
Over the past six months, shares of Canadian National have gained 1.4% against the 2.1% loss of the industry it belongs to.
Image Source: Zacks Investment Research
Notably, companies in the Zacks Transportation – Rail industry are entering into collective deals with the unions. To name one, Canadian Pacific Railway Limited CP recently announced that it had inked a tentative collective agreement with the Teamsters Canada Rail Conference Maintenance of Way Employees Division (TCRC-MWED). TCRC-MWED covers almost 2,600 engineering services employees in Canada.
Canadian Pacific has a track record of successfully dealing with multiple unions representing craft employees. In the last few months, Canadian Pacific has inked 16 agreements in 2023 in Canada and the United States.
Zacks Rank & Stocks to Consider
Currently, Canadian National carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader Zacks Transportation sector are Alaska Air Group, Inc. ALK and American Airlines AAL, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alaska Air has an expected earnings growth rate of 32.64% for the current year. ALK delivered a trailing four-quarter earnings surprise of 8.98%, on average.
The Zacks Consensus Estimate for ALK’s current-year earnings has improved 11.4% over the past 90 days.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 31.1% over the past 90 days. Shares of AAL have gained 11.2% over the past three months.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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
Canadian National Railway Company (CNI) : Free Stock Analysis Report
Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks from the broader Zacks Transportation sector are Alaska Air Group, Inc. ALK and American Airlines AAL, each carrying a Zacks Rank #2 (Buy). AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
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Some better-ranked stocks from the broader Zacks Transportation sector are Alaska Air Group, Inc. ALK and American Airlines AAL, each carrying a Zacks Rank #2 (Buy). Click to get this free report Canadian National Railway Company (CNI) : Free Stock Analysis Report Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. AAL has an expected earnings growth rate of more than 100% for the current year.
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Some better-ranked stocks from the broader Zacks Transportation sector are Alaska Air Group, Inc. ALK and American Airlines AAL, each carrying a Zacks Rank #2 (Buy). Click to get this free report Canadian National Railway Company (CNI) : Free Stock Analysis Report Canadian Pacific Railway Limited (CP) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. AAL has an expected earnings growth rate of more than 100% for the current year.
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Some better-ranked stocks from the broader Zacks Transportation sector are Alaska Air Group, Inc. ALK and American Airlines AAL, each carrying a Zacks Rank #2 (Buy). AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
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2795.0
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2023-03-21 00:00:00 UTC
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6 Reasons Why Investors Should Invest in Ryanair (RYAAY) Now
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https://www.nasdaq.com/articles/6-reasons-why-investors-should-invest-in-ryanair-ryaay-now-0
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Ryanair Holdings plc RYAAY is benefiting from the improvement in traffic from the pandemic-led slump. Measures to expand its fleet and bring down debt levels are encouraging too.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes RYAAY an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse over the past six months. Shares of RYAAY have gained 38.7% over the past six months compared with the 6% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Zacks Rank: RYAAY has a Zacks Rank #1 (Strong Buy). Our research shows that stocks with a Zacks Rank #1 or 2 (Buy) offer the best investment opportunities. Thus, the company is a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for RYAAY’s 2023 and 2024 earnings has moved up 20.8% and 15.6%, year over year, respectively.
Positive Earnings Surprise History: RYAAY has an impressive earnings surprise history. The company delivered an earnings surprise of 7.51% in the last four quarters, on average.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For 2023 and 2024, RYAAY’s earnings are expected to grow more than 100% and 1.93% year over year, respectively.
Growth Factors: An improvement in Ryanair’s traffic from the pandemic-led slump is encouraging. In February 2023, RYAAY flew 10.6 million passengers, higher than the 8.7 million flown a year ago. The load factor (% of seats filled by passengers) was 92% in February 2023 compared with 86% a year ago.
Ryanair now aims to increase its traffic in fiscal 2023 to 168 million, indicating 13% growth from the pre-COVID traffic numbers. The prior view was 165 million. Riding on the buoyant traffic scenario, RYAAY lifted its forecast for fiscal 2023 profitability.
Measures to expand its fleet to cater to the improvement in travel demand are encouraging. In fiscal 2022, the airline took delivery of 61 B737-8200 jets. It expects to have more than 70 of these jets in its fleet for the peak summer season. The remaining jets are expected to be delivered by the end of fiscal 2025. Efforts to bring down debt levels are encouraging too.
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Transportation sector are Copa Holdings, S.A. CPA, Alaska Air Group, Inc. ALK and American Airlines AAL. Copa Holdings presently sports a Zacks Rank #1, while Alaska Air and American Airlines currently carry a Zacks Rank #2.
Copa Holdings has an expected earnings growth rate of 39.83% for the current year. CPA delivered a trailing four-quarter earnings surprise of 33.35%, on average.
The Zacks Consensus Estimate for CPA’s current-year earnings has improved 21.1% over the past 90 days. Shares of CPA have soared 3.5% over the past three months.
Alaska Air has an expected earnings growth rate of 32.64% for the current year. ALK delivered a trailing four-quarter earnings surprise of 8.98%, on average.
The Zacks Consensus Estimate for ALK’s current-year earnings has improved 11.4% over the past 90 days.
AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
The Zacks Consensus Estimate for AAL’s current-year earnings has improved 31.1% over the past 90 days. Shares of AAL have gained 11.2% over the past three months.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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
Copa Holdings, S.A. (CPA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other Stocks to Consider Some other top-ranked stocks from the broader Zacks Transportation sector are Copa Holdings, S.A. CPA, Alaska Air Group, Inc. ALK and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
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Other Stocks to Consider Some other top-ranked stocks from the broader Zacks Transportation sector are Copa Holdings, S.A. CPA, Alaska Air Group, Inc. ALK and American Airlines AAL. Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. AAL has an expected earnings growth rate of more than 100% for the current year.
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Click to get this free report Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report Copa Holdings, S.A. (CPA) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alaska Air Group, Inc. (ALK) : Free Stock Analysis Report To read this article on Zacks.com click here. Other Stocks to Consider Some other top-ranked stocks from the broader Zacks Transportation sector are Copa Holdings, S.A. CPA, Alaska Air Group, Inc. ALK and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year.
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Other Stocks to Consider Some other top-ranked stocks from the broader Zacks Transportation sector are Copa Holdings, S.A. CPA, Alaska Air Group, Inc. ALK and American Airlines AAL. AAL has an expected earnings growth rate of more than 100% for the current year. AAL delivered a trailing four-quarter earnings surprise of 7.79%, on average.
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2796.0
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2023-03-21 00:00:00 UTC
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Why You Should Retain Canadian National (CNI) Stock Now
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https://www.nasdaq.com/articles/why-you-should-retain-canadian-national-cni-stock-now
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Canadian National Railway Company (CNI) is benefiting from the impressive freight demand scenario and the solid pricing environment. However, low liquidity is a concern.
Factors Favoring CNI
Impressive freight demand and favorable pricing environment are driving Canadian National’s growth. Freight revenues (C$4,400 million), which contributed 96.8% to the top line, increased 23% year over year in the fourth quarter of 2022. Freight revenues at the Petroleum and Chemicals, Metals and minerals, Forest products, Coal, Grain and fertilizers, Intermodal and Automotive segments increased 5%, 27%, 19%, 42%, 48%, 13% and 48%, respectively.
Despite the softening of the overall demand scenario, management expects adjusted earnings per share to increase in low-single-digit percentage year over year in the current year.
Key Risk
Canadian National’s liquidity position is a matter of concern. CNI's current ratio at the end of the fourth quarter of 2022 was 0.84. A current ratio of less than 1 implies that the company doesn't have enough liquid assets to cover its short-term liabilities.
Zacks Rank & Key Picks
Canadian National currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and United Airlines (UAL), both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Airlines is also being aided by the improved air travel demand situation. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. For first-quarter 2023, AAL’s earnings are expected to register 100.4% growth on a year-over-year basis. For 2023, the company’s earnings are expected to grow 332% on a year-over-year basis.
The Zacks Consensus Estimate for AAL’s full-year 2023 earnings are expected to surge 332% year over year.
United Airlines is seeing steady recovery in domestic and leisure air-travel demand. On the back of upbeat air-travel demand, UAL was profitable in the fourth quarter of 2022. The fourth quarter was the third consecutive profitable quarter at UAL.
Driven by solid demand, management expects total revenue per available seat mile to grow 25% year over year for the first quarter of 2023. Total revenues are anticipated to grow 50% year over year. The Zacks Consensus Estimate for UAL’s full-year 2023 earnings are expected to surge 227% year over year.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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
Canadian National Railway Company (CNI) : 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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Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and United Airlines (UAL), both carrying a Zacks Rank #2 (Buy) at present. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. For first-quarter 2023, AAL’s earnings are expected to register 100.4% growth on a year-over-year basis.
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Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Canadian National Railway Company (CNI) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : 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 United Airlines (UAL), both carrying a Zacks Rank #2 (Buy) at present. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and United Airlines (UAL), both carrying a Zacks Rank #2 (Buy) at present. Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Canadian National Railway Company (CNI) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and United Airlines (UAL), both carrying a Zacks Rank #2 (Buy) at present. For first-quarter 2023, AAL’s earnings are expected to register 100.4% growth on a year-over-year basis.
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2797.0
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2023-03-21 00:00:00 UTC
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FOCUS-Investors question Teck on climate even after Canadian miner's coal spin-out
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https://www.nasdaq.com/articles/focus-investors-question-teck-on-climate-even-after-canadian-miners-coal-spin-out
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By Divya Rajagopal and Simon Jessop
TORONTO, March 21 (Reuters) - Investors have yet to embrace Canadian miner Teck Resources Ltd's TECKb.TO proposal to spin off its highly polluting coal business and focus on production of copper to help supply society's move toward electric vehicles.
Last month, Teck announced a split into copper-focused Teck Metals and Elk Valley Resources (EVR), which will focus on high-margin coal for steel making. Initial euphoria sent Teck shares higher, but since then, lingering questions about CO2 emissions at both companies have slammed the stock, which has lost a fifth of its value.
"I think the spin off makes sense in that it hard codes Teck Metals’ transition plan," said George Cheveley, portfolio manager at London-listed asset manager Ninety One.
"However, they will also need to articulate a very clear transition plan for Elk Valley Resources as that is the company taking on the coal. This needs to be a credible plan as well and, whilst it can be longer term, it needs to demonstrate how they can support decarbonisation."
The company has long debated how to transition to a greener future and attract investors concerned about environmental, social and governance (ESG) issues without losing profits or revenues from its highly polluting coal mines.
The divorce of Teck's operations is messy from an environmental perspective. Key remaining questions include exactly when Teck will cut ties with EVR. The coal miner is set to pass through 90% of its free cash flow into the copper business for at least a decade.
Profitable assets that emit a lot of carbon present a dilemma for Teck and peers whose other operations could put them at the forefront of the transition to clean energy.
As markets begin to more accurately price climate risks and opportunities, some corporate boards are more open to spinning out carbon-intensive operations to attract investors and lower the capital cost of their environmentally friendly operations.
Other mining companies have also split off coal assets. Brazilian miner Vale, for example, has said it will separate its base metal and iron ore business to prepare for future growth from the electric vehicles market.
In 2021, South African miner Anglo American demerged and listed its thermal coal business. Some investors criticized the company, saying it undervalued its environmental liability costs, but the company called their analysis "flawed".
Teck told Reuters EVR was committed to maintaining "strong" social and environmental performance, including reaching net-zero emissions by 2050, and would establish a trust to fully cover long-term environmental obligations.
However, Todd Kapala, vice-president and co-head, Canadian Equities of Addenda Capital, which owns a stake in Teck, said more was needed: "We want to see further leadership on reducing greenhouse gas (GHG) emissions."
Before the split was announced, investors had had only partial success in pushing Teck to align its transition plan with the world's climate goal, and still had questions about issues including its short-term emissions targets.
In its assessment, the Climate Action 100+ investor group said Teck had also yet to align its capital expenditure plans with the goals of the Paris Agreement on climate, which aims to limit global warming to 1.5 degrees Celsius.
A recent study by the International Finance Corp said miners must reduce emissions by almost 90% to make it worthwhile to dig out copper and other metals required for EVs.
"The full implications of Teck’s spin-out are yet to be understood – we are still in early days," said Anthony Schein, Director of Shareholder Advocacy at Canadian shareholder engagement group SHARE, which is co-leading talks with Teck on behalf of CA100+, including about "the implications of this spin-off for climate action".
SHARE SLIDE
The questions have weighed on Teck shares, which lag mining industry peers. Nippon Steel Corp 5401.T which in the new structure will own 10% of EVR, has said it is open to increasing its stake to 17% and is also seen as likely long-term majority owner of the assets.
Teck is by no means the worst performer on ESG issues. Sustainalytics, a leading provider of ratings used by investors, rated the company 7th out of 216 diversified metals companies while MSCI graded it a "leader" among 72 companies. Refinitiv, part-owned by Reuters parent company Thomson Reuters, ranked Teck 14th out of more than 400 peers.
"The coal business is profitable for now, and using its proceeds to fund its copper business is a pragmatic way towards transition," said Dustyn Lanz, Senior Advisor ESG Global Advisors.
(Reporting by Divya Rajagopal in Toronto and Simon Jessop in London Editing by Denny Thomas and David Gregorio)
((divya.rajagopal@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 Divya Rajagopal and Simon Jessop TORONTO, March 21 (Reuters) - Investors have yet to embrace Canadian miner Teck Resources Ltd's TECKb.TO proposal to spin off its highly polluting coal business and focus on production of copper to help supply society's move toward electric vehicles. The company has long debated how to transition to a greener future and attract investors concerned about environmental, social and governance (ESG) issues without losing profits or revenues from its highly polluting coal mines. Before the split was announced, investors had had only partial success in pushing Teck to align its transition plan with the world's climate goal, and still had questions about issues including its short-term emissions targets.
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By Divya Rajagopal and Simon Jessop TORONTO, March 21 (Reuters) - Investors have yet to embrace Canadian miner Teck Resources Ltd's TECKb.TO proposal to spin off its highly polluting coal business and focus on production of copper to help supply society's move toward electric vehicles. Last month, Teck announced a split into copper-focused Teck Metals and Elk Valley Resources (EVR), which will focus on high-margin coal for steel making. Before the split was announced, investors had had only partial success in pushing Teck to align its transition plan with the world's climate goal, and still had questions about issues including its short-term emissions targets.
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By Divya Rajagopal and Simon Jessop TORONTO, March 21 (Reuters) - Investors have yet to embrace Canadian miner Teck Resources Ltd's TECKb.TO proposal to spin off its highly polluting coal business and focus on production of copper to help supply society's move toward electric vehicles. Last month, Teck announced a split into copper-focused Teck Metals and Elk Valley Resources (EVR), which will focus on high-margin coal for steel making. Before the split was announced, investors had had only partial success in pushing Teck to align its transition plan with the world's climate goal, and still had questions about issues including its short-term emissions targets.
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By Divya Rajagopal and Simon Jessop TORONTO, March 21 (Reuters) - Investors have yet to embrace Canadian miner Teck Resources Ltd's TECKb.TO proposal to spin off its highly polluting coal business and focus on production of copper to help supply society's move toward electric vehicles. Last month, Teck announced a split into copper-focused Teck Metals and Elk Valley Resources (EVR), which will focus on high-margin coal for steel making. Other mining companies have also split off coal assets.
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2798.0
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2023-03-21 00:00:00 UTC
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5 Broker-Favorite Stocks to Watch Amid Ongoing Banking Woes
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AAL
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https://www.nasdaq.com/articles/5-broker-favorite-stocks-to-watch-amid-ongoing-banking-woes
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nan
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nan
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Highlighting the fact that the banking sector is indeed undergoing tough times, Moody’s Investors Service downgraded its view on the banking system in the United States to negative from stable. Moody’s attributed the decision to the rapidly deteriorating operating environment. In the United States, two major regional banks, namely, Silicon Valley Bank and Signature Bank, collapsed. Another regional bank, First Republic Bank, is on life support.
The ongoing turmoil in the banking sector — popularly known as the engine of economic growth — implies that there is no end to the uncertainty and volatility that has gripped markets for quite some time. The liquidity issues have moved to Europe as well, with Swiss lender, Credit Suisse, being at the center of the turbulence. UBS has agreed to buy the beleaguered Credit Suisse for $3.2 billion.
Despite the current turmoil and economic uncertainty, investors should not shun equities. So what’s the way forward to reap handsome returns from one’s portfolio even during the current uncertainty?
One way to proceed in this scenario is by adhering to broker advice. By following this method, broker-friendly stocks like American Airlines AAL, CVR Energy CVI, Delek US Holdings DK, Brighthouse Financial BHF and Abercrombie & Fitch Co. ANF should be present in an investor’s watchlist for healthy returns.
Why Broker Advice Holds Value?
Brokers scrutinize publicly available financial documents and attend company conference calls and other presentations. Since brokers recommend (buy, sell or hold) a stock after thoroughly analyzing the nitty-gritty associated with the company, it is then perfect for investors to be guided by their direction of estimate revisions while deciding their course of action on a particular stock.
The estimate revisions serve as an important pointer regarding the price of a stock. In fact, a rating upgrade generally leads to stock price appreciation. Similarly, the price of a stock may plummet following a rating downgrade. Estimates can move north for a number of reasons, including a favorable earnings performance, bullish guidance, product launch or an optimistic macro scenario. To take care of the earnings performance, we designed a screen based on improving analyst recommendations and upward estimate revisions over the last four weeks.
Winning Strategy
The above write-up clearly suggests that one can arrive at a winning portfolio of stocks by following broker actions. Keeping this in mind, we designed a screen to shortlist stocks based on improving analyst recommendations and upward revisions in 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 taken into consideration. The price/sales ratio takes care of the company’s top line, making the strategy foolproof.
Screening Criteria
# (Up- Down Rating)/ Total (4 weeks) =Top #75: This gives the list of top 75 companies that have witnessed net upgrades over the last 4 weeks.
% change in Q (1) est. (4 weeks) = Top #10: This gives the top 10 stocks that have witnessed earnings estimate revisions over the past 4 weeks for the upcoming quarter.
To ensure that the strategy is a winning one, covering all bases, we have added the following screening parameters:
Price-to-Sales = Bot%10: The lower the ratio, the better. Companies meeting this criterion are in bottom 10% of our universe of over 7,700 stocks with respect to this ratio.
Price greater than 5: A stock trading below $5 will not likely create significant interest for most investors.
Average Daily Volume greater than 100,000 shares over the last 20 trading days: Volume has to be significant to ensure that these are easily traded.
Market value ($ mil) = Top #3000: This gives us stocks that are the top 3000 if one judges by market capitalization.
Com/ADR/Canadian= Com: This takes out the ADR and Canadian stocks.
Here are five of the 10 stocks that made it through the screen:
American Airlines 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 11.9% upward. American Airlines currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CVR Energy is an independent refiner and marketer of high-value transportation fuels. CVI is also a producer of ammonia and urea ammonia nitrate fertilizers. CVI's petroleum business includes a full-coking sour crude refinery in Coffeyville, KS. Its efforts to reward its shareholders underline its strong financial position. The robust Nitrogen Fertilizer unit is supporting growth.
CVR Energy, currently sporting a Zacks Rank #1, has surpassed the Zacks Consensus Estimate in each of the past four quarters by an average of 40.85%. The Zacks Consensus Estimate for current-year earnings has improved 23.2% over the past 60 days.
Brentwood, TN-based Delek US Holdings is an independent refiner, transporter and marketer of petroleum products. DK’s extensive downstream operations within the Permian Basin grant it a fairly significant competitive edge over its peers in the long term.
Delek US Holdings currently carries a Zacks Rank #3 (Hold). DK surpassed the Zacks Consensus Estimate for earnings in three of the past four quarters (missing the mark in the other one). The average beat is in excess of 100%.
Brighthouse Financial is one of the largest providers of annuity and life insurance products in the United States. A compelling suite of life and annuity products, strong market presence, exit from the transition service agreement and growing individual insurance and investment income should drive growth for this Zacks Rank #1 insurer.
The Zacks Consensus Estimate for BHF’s 2023 and 2024 earnings indicates a year-over-year increase of 33.5% and 11.5%, respectively. The consensus estimate for 2023 and 2024 earnings has moved up 6.1% and 6.3%, respectively, in the past 60 days.
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 carrying a Zacks Rank #3, 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 skyrocketed more than 400% from the 2022 actual earnings figure.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: https://www.zacks.com/performance.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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
CVR Energy Inc. (CVI) : Free Stock Analysis Report
Delek US Holdings, Inc. (DK) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Brighthouse Financial, Inc. (BHF) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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By following this method, broker-friendly stocks like American Airlines AAL, CVR Energy CVI, Delek US Holdings DK, Brighthouse Financial BHF and Abercrombie & Fitch Co. ANF should be present in an investor’s watchlist for healthy returns. 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 11.9% upward.
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By following this method, broker-friendly stocks like American Airlines AAL, CVR Energy CVI, Delek US Holdings DK, Brighthouse Financial BHF and Abercrombie & Fitch Co. ANF should be present in an investor’s watchlist for healthy returns. Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report CVR Energy Inc. (CVI) : Free Stock Analysis Report Delek US Holdings, Inc. (DK) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Brighthouse Financial, Inc. (BHF) : 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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By following this method, broker-friendly stocks like American Airlines AAL, CVR Energy CVI, Delek US Holdings DK, Brighthouse Financial BHF and Abercrombie & Fitch Co. ANF should be present in an investor’s watchlist for healthy returns. Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report CVR Energy Inc. (CVI) : Free Stock Analysis Report Delek US Holdings, Inc. (DK) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Brighthouse Financial, Inc. (BHF) : 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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By following this method, broker-friendly stocks like American Airlines AAL, CVR Energy CVI, Delek US Holdings DK, Brighthouse Financial BHF and Abercrombie & Fitch Co. ANF should be present in an investor’s watchlist for healthy returns. 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 11.9% upward.
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2799.0
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2023-03-21 00:00:00 UTC
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Why You Should Retain Delta Air (DAL) Stock in Portfolio Now
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AAL
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https://www.nasdaq.com/articles/why-you-should-retain-delta-air-dal-stock-in-portfolio-now
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nan
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nan
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Delta Air Lines, Inc. (DAL) is benefiting from its strong liquidity position and the buoyant air travel demand scenario. However, escalating fuel cost is worrisome.
Factors Favoring DAL
Driven by buoyant demand, Delta Air generated a double-digit operating margin in the second, third and fourth quarters of 2022. In the December quarter, adjusted operating margin was 10.9%
The buoyant air-travel demand scenario is also evident from the fact that total operating revenues increased 8% in 2022 from 2019 (pre-coronavirus) actuals. Given this buoyant air-travel demand, Delta Air expects total revenues (adjusted) for 2023 to increase in the 15-20% range on a year-over-year basis.
Delta Air’s liquidity position is encouraging. The airline ended 2022 with cash and cash equivalents of $6,534 million, much higher than the current maturities of debt and financial lease of $2,534 million. This implies that the company has sufficient cash to meet its current debt obligations. DAL's efforts to repay its debts are encouraging too.
Key Risk
Escalating fuel costs pose a threat to Delta Air’s bottom line. Oil price is moving north primarily because of supply concerns due to Russia's invasion of Ukraine. In fourth-quarter 2022, average fuel price per gallon (adjusted) increased 61% from fourth-quarter 2019 actuals to $3.20. Management expects fuel price per gallon in the $3.05-$3.25 range in the March quarter.
Zacks Rank & Key Picks
Delta Air currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and United Airlines (UAL), both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Airlines is also being aided by the improved air travel demand situation. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. For first-quarter 2023, AAL’s earnings are expected to register 100.4% growth on a year-over-year basis. For 2023, the company’s earnings are expected to grow 332% on a year-over-year basis.
The Zacks Consensus Estimate for AAL’s full-year 2023 earnings are expected to surge 332% year over year.
United Airlines is seeing steady recovery in domestic and leisure air-travel demand. On the back of upbeat air-travel demand, UAL was profitable in the fourth quarter of 2022. The fourth quarter was the third consecutive profitable quarter at UAL.
Driven by solid demand, management expects total revenue per available seat mile to grow 25% year over year for the first quarter of 2023. Total revenues are anticipated to grow 50% year over year. The Zacks Consensus Estimate for UAL’s full-year 2023 earnings are expected to surge 227% year over year.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report
United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and United Airlines (UAL), both carrying a Zacks Rank #2 (Buy) at present. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. For first-quarter 2023, AAL’s earnings are expected to register 100.4% growth on a year-over-year basis.
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Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and United Airlines (UAL), both carrying a Zacks Rank #2 (Buy) at present. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and United Airlines (UAL), both carrying a Zacks Rank #2 (Buy) at present. Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report To read this article on Zacks.com click here. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%.
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Some better-ranked stocks in the Zacks Transportation sector are American Airlines (AAL) and United Airlines (UAL), both carrying a Zacks Rank #2 (Buy) at present. In the fourth quarter of 2022, AAL reported earnings of $1.17 per share, surpassing the Zacks Consensus Estimate by 2.63%. For first-quarter 2023, AAL’s earnings are expected to register 100.4% growth on a year-over-year basis.
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