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3600.0
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2022-04-21 00:00:00 UTC
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Why United Airlines Stock Is Flying High Today
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AAL
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https://www.nasdaq.com/articles/why-united-airlines-stock-is-flying-high-today
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
An earnings miss can’t keep United Airlines Holdings (NASDAQ:UAL) stock down today.
UAL is up more than 10% after the company issued its first quarter earnings report after the closing bell on Wednesday. Although it narrowly missed analysts’ predictions, investors piled into shares today on news that United Airlines expects to return to profitability in the second quarter of this year.
“The demand environment is the strongest it’s been in my 30 years in the industry – and United and its customers will benefit more than any other airline” CEO United Airlines CEO Scott Kirby said. “We’re now seeing clear evidence that the second quarter will be an historic inflection point for our business. It leaves me more optimistic than ever about United’s future.”
United posted revenue of $7.57 billion, which was less than analysts’ expectations of $7.68 billion. The adjusted loss per share came in at $4.24, while analysts had expected a loss of $4.22 per share.
7 Long-Term Stocks to Buy for a Robust Retirement
But those concerns were cast aside by the company’s guidance. United said that it expects to see operating margin of about 10% in Q2, which would nearly be back to 2019 pre-pandemic levels. It also projected it would have the highest quarterly sales in UAL’s history.
United “appears to be recapturing cost increases in ticket prices and strong demand,” Cowen (NASDAQ:COWN) analyst Helane Becker said in a research note.
UAL also said it planned to operate 87% of its 2019 schedule in the second quarter as the Chicago-based airline continues to recover from the Covid-19 pandemic, which saw many flights shuttered. United said in a statement:
As the company’s Pratt & Whitney-powered Boeing 777 aircraft are expected to gradually return to service, the company will continue to add back capacity based on its ability to best serve customers and will take a long-term view of profitability by not sacrificing operational reliability
United and other carriers continue to face staffing shortfalls and other disruptions.
UAL stock is up 17% so far in 2022, although it’s still about 48% off its pre-pandemic levels. Other airline stocks are also having strong days, with American Airlines (NASDAQ:AAL) up nearly 4%, Southwest Airlines (NYSE:LUV) up 3.1%, Delta Air Lines (NYSE:DAL) up 3.5%, and JetBlue Airways (NASDAQ:JBLU) up 4%.
On the date of publication, Patrick Sanders did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post Why United Airlines Stock Is Flying High Today appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other airline stocks are also having strong days, with American Airlines (NASDAQ:AAL) up nearly 4%, Southwest Airlines (NYSE:LUV) up 3.1%, Delta Air Lines (NYSE:DAL) up 3.5%, and JetBlue Airways (NASDAQ:JBLU) up 4%. Although it narrowly missed analysts’ predictions, investors piled into shares today on news that United Airlines expects to return to profitability in the second quarter of this year. United “appears to be recapturing cost increases in ticket prices and strong demand,” Cowen (NASDAQ:COWN) analyst Helane Becker said in a research note.
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Other airline stocks are also having strong days, with American Airlines (NASDAQ:AAL) up nearly 4%, Southwest Airlines (NYSE:LUV) up 3.1%, Delta Air Lines (NYSE:DAL) up 3.5%, and JetBlue Airways (NASDAQ:JBLU) up 4%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips An earnings miss can’t keep United Airlines Holdings (NASDAQ:UAL) stock down today. Although it narrowly missed analysts’ predictions, investors piled into shares today on news that United Airlines expects to return to profitability in the second quarter of this year.
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Other airline stocks are also having strong days, with American Airlines (NASDAQ:AAL) up nearly 4%, Southwest Airlines (NYSE:LUV) up 3.1%, Delta Air Lines (NYSE:DAL) up 3.5%, and JetBlue Airways (NASDAQ:JBLU) up 4%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips An earnings miss can’t keep United Airlines Holdings (NASDAQ:UAL) stock down today. United said in a statement: As the company’s Pratt & Whitney-powered Boeing 777 aircraft are expected to gradually return to service, the company will continue to add back capacity based on its ability to best serve customers and will take a long-term view of profitability by not sacrificing operational reliability United and other carriers continue to face staffing shortfalls and other disruptions.
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Other airline stocks are also having strong days, with American Airlines (NASDAQ:AAL) up nearly 4%, Southwest Airlines (NYSE:LUV) up 3.1%, Delta Air Lines (NYSE:DAL) up 3.5%, and JetBlue Airways (NASDAQ:JBLU) up 4%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips An earnings miss can’t keep United Airlines Holdings (NASDAQ:UAL) stock down today. Although it narrowly missed analysts’ predictions, investors piled into shares today on news that United Airlines expects to return to profitability in the second quarter of this year.
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3601.0
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2022-04-21 00:00:00 UTC
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US STOCKS-Wall St drops as Powell rate views support aggressive hike path
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-st-drops-as-powell-rate-views-support-aggressive-hike-path
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nan
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By David French
April 21 (Reuters) - Wall Street's three main indexes closed lower on Thursday, giving up earlier gains as Federal Reserve officials including Chair Jerome Powell offered further signposting of aggressive interest rate hikes this year.
A half-point interest rate increase will be "on the table" when the U.S. central bank meets on May 3-4 to approve the next in what is expected to be a series of rate increases this year, Powell said.
With inflation running roughly three times the Fed's 2% target, "it is appropriate to be moving a little more quickly," Powell added in a discussion of the global economy at the meetings of the International Monetary Fund.
"The market is pricing in, at least, 50 basis points in May and June," said George Catrambone, head of trading at DWS Group.
"Powell, and many other Fed speakers, have been saying they want to get to control as quickly as possible, and that is saying to the market that they are going to go aggressively."
Earlier on Thursday, San Francisco Federal Reserve President Mary Daly said she supports raising the U.S. central bank's target for overnight borrowing costs to 2.5% by the end of this year, but whether or how much further it will need to rise will depend on what happens with inflation and labor markets.
The remarks by Fed officials hijacked initial momentum which the markets received from positive earnings. All three major indexes opened higher, boosted by strong results from heavyweight Tesla TSLA.O and airline operators.
However, gains were eroded through the morning session and the S&P 500 and Nasdaq had already reversed course by the time Powell spoke.
According to preliminary data, the S&P 500 .SPX lost 64.41 points, or 1.44%, to end at 4,395.04 points, while the Nasdaq Composite .IXIC lost 273.07 points, or 2.03%, to 13,179.99. The Dow Jones Industrial Average .DJI fell 359.72 points, or 1.02%, to 34,801.07.
Bond yields also breached fresh multi-year peaks. Yields on the two-year U.S. Treasury, the most sensitive to interest changes, hit their highest in three years before coming off slightly. US/
High-growth stocks, including those of Meta Platforms Inc FB.O, Alphabet Inc GOOGL.O and Amazon.com Inc AMZN.O, fell as investors fretted about how the higher rate environment would impact their future growth potential.
Netflix Inc > slumped for a second day after its quarterly earnings revealed a first drop in subscriber numbers in a decade, with the streaming giant warning of further declines likely.
The forecast prompted William Ackman to liquidate a $1.1 billion bet on Netflix, with the billionaire investor writing the firm's future was too uncertain to hold onto his position.
The broader technology index .SPLRCT was one of the worst sectors on Thursday, as was energy .SPNY despite crude prices gaining. O/R
There were some bright spots though. Tesla, the world's most valuable automaker, rose after its results beat Wall Street expectations as higher prices helped it overcome supply-chain chaos and rising costs.
Airline stocks also maintained their recent momentum. United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O climbed after they predicted a return to profit in the current quarter due to booming travel demand.
Overall, analysts expect S&P 500 earnings growth of 7.3% in the first quarter, compared with the 32.1% rise in the fourth quarter, according to Refinitiv data.
(Reporting by Bansari Mayur Kamdar, Sruthi Shankar and Amruta Khandekar in Bengaluru and David French in New York; Editing by Arun Koyyur and Marguerita Choy)
((BansariMayur.Kamdar@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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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O climbed after they predicted a return to profit in the current quarter due to booming travel demand. By David French April 21 (Reuters) - Wall Street's three main indexes closed lower on Thursday, giving up earlier gains as Federal Reserve officials including Chair Jerome Powell offered further signposting of aggressive interest rate hikes this year. Earlier on Thursday, San Francisco Federal Reserve President Mary Daly said she supports raising the U.S. central bank's target for overnight borrowing costs to 2.5% by the end of this year, but whether or how much further it will need to rise will depend on what happens with inflation and labor markets.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O climbed after they predicted a return to profit in the current quarter due to booming travel demand. By David French April 21 (Reuters) - Wall Street's three main indexes closed lower on Thursday, giving up earlier gains as Federal Reserve officials including Chair Jerome Powell offered further signposting of aggressive interest rate hikes this year. According to preliminary data, the S&P 500 .SPX lost 64.41 points, or 1.44%, to end at 4,395.04 points, while the Nasdaq Composite .IXIC lost 273.07 points, or 2.03%, to 13,179.99.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O climbed after they predicted a return to profit in the current quarter due to booming travel demand. By David French April 21 (Reuters) - Wall Street's three main indexes closed lower on Thursday, giving up earlier gains as Federal Reserve officials including Chair Jerome Powell offered further signposting of aggressive interest rate hikes this year. A half-point interest rate increase will be "on the table" when the U.S. central bank meets on May 3-4 to approve the next in what is expected to be a series of rate increases this year, Powell said.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O climbed after they predicted a return to profit in the current quarter due to booming travel demand. By David French April 21 (Reuters) - Wall Street's three main indexes closed lower on Thursday, giving up earlier gains as Federal Reserve officials including Chair Jerome Powell offered further signposting of aggressive interest rate hikes this year. "Powell, and many other Fed speakers, have been saying they want to get to control as quickly as possible, and that is saying to the market that they are going to go aggressively."
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3602.0
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2022-04-21 00:00:00 UTC
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Good Stocks To Invest In Right Now? 4 Airline Stocks To Watch Today
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AAL
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https://www.nasdaq.com/articles/good-stocks-to-invest-in-right-now-4-airline-stocks-to-watch-today
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nan
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4 Top Airline Stocks To Watch Today
Airline stocks have been making a comeback in the stock market lately. For obvious reasons, the global pandemic has haunted the aviation industry over the past two years. Throughout the earlier part of the pandemic, sentiments were weak due to travel restrictions and the threat of new variants. However, with the rise in vaccination rates and the reopening of borders, interest in the sector returned. Besides, the White House announced earlier this week that the Centers for Disease and Control’s (CDC) public transportation mask order has now been lifted. This comes after U.S. District Judge Kathryn Kimball Mizelle ruled the mandate as unlawful.
Some may argue that airline companies are already anticipating a strong recovery as they begin to ramp up their services. For instance, Southwest Airlines (NYSE: LUV) announced last week that it will be adding additional service to its flight schedule beginning in early June. This includes more options for California travel and new services for Hawaii, the Pacific Northwest, and the Caribbean. Besides that, United Airlines (NASDAQ: UAL) announced its first-quarter financials this week. Safe to say, a convincing quarterly report may well set the tone for the aviation industry. Therefore, here are some of the top airline stocks in thestock market todayworth looking at.
Airline Stocks To Watch Right Now
Alaska Air Group, Inc (NYSE: ALK)
Delta Air Lines, Inc. (NYSE: DAL)
American Airlines Group Inc (NASDAQ: AAL)
JetBlue Airways Corporation (NASDAQ: JBLU)
Alaska Air
Alaska Air is a company that engages in airline operations. Essentially, it has three operating segments, Mainline, Regional, and Horizon. The company’s Mainline segment includes scheduled air transportation on its Boeing and Airbus jet aircraft throughout the U.S. and certain parts of Mexico and Costa Rica. Meanwhile, its Regional segment includes Horizon’s and other third-party carriers’ scheduled air transportation for short-distance networks within the U.S. and Canada. ALK stock has been moving sideways for most of the year. Could things be looking up soon?
In fact, Alaska Air and Air Tahiti Nui just announced a new global partnership late last month. Operations will begin in October this year and there will be a new nonstop service between airports in Seattle and Papeete, Tahiti. This collaboration will tap into the Western Canada market and help the development of tourism to French Polynesia. Not to mention, the company’s Mileage Plan members can now earn miles on all Air Tahiti Nui flights. Besides, with the company announcing its quarterly earnings tomorrow, would you consider jumping on the ALK stock bandwagon ahead of time?
[Read More] Stock Market Today: Dow Jones, S&P 500 Opened In Green On Tesla’s Strong Quarter; Airline Stocks Up On Big Travel Demand
Delta Air
Following that, we have the global air transportation company, Delta Air. In detail, the company provides scheduled air transportation for passengers and cargo throughout the U.S. and across the globe. For a sense of scale, Delta Air has hubs and market presence in some of the largest cities in the world. This includes Amsterdam, London-Heathrow, Paris, and Seoul, to list a few. Impressively, DAL stock has gained some momentum over the past month, rising more than 20% within the period.
Well, this can largely be attributed to its recent March 2022 quarter that was announced last week. The company saw a strong rebound in demand as the coronavirus pandemic continues to ease. Delta Air returned to profitability in March as it announced a solid adjusted operating margin of almost 10%. Moving forward, it expects the June quarter revenue to accelerate to 93% to 97% with unit revenue up double digits compared to 2019. All in all, these are all positive developments that signal a healthy recovery in the aviation industry. With that in mind, should DAL stock be a top airline stock to watch right now?
American Airlines
Another top airline company to note is American Airlines. It operates as a network air carrier that provides scheduled air transportation for passengers as well as cargo. Together with its regional partner American Eagle, the company offers an average of nearly 6,700 flights daily to 350 destinations across 50 countries. It is also a founding member of the Oneworld alliance, whose members and members-elect offer nearly 14,250 flights daily to over 1,000 destinations. Now, despite a bumpy start to the year, AAL stock has risen more than 20% within the past month.
Furthermore, American Airlines recently doubled down on its partnership with Expedia Group (NASDAQ: EXPE) to offer more travel choices for its customers. With this partnership, travelers booking the company’s flights on Expedia’s sites will have more options for customization. For instance, travelers will now be able to purchase elevated offers such as Main Plus. The offer includes complimentary access to Main Cabin Extra, preferred seats, and many more. Investors should also note that the company will be announcing its financials on Thursday. All things considered, would you add AAL stock to your watchlist?
[Read More] 4 Artificial Intelligence Stocks To Watch Right Now
JetBlue
To sum up the list, we will be looking at the low-cost airline company, JetBlue. In detail, the company provides air transportation services across the U.S., the Caribbean, and Latin America, and between New York and London. The company’s entire fleet is equipped with Fly-Fi, a broadband product that allows gate-to-gate Wi-Fi at every seat. Earlier this month, JetBlue introduced its highly anticipated flights between Boston and London starting this summer. Following its success in New York, the company is confident that it will be able to replicate this success as it advances its growth strategies in these regions.
Besides that, JetBlue has recently shown its intent to acquire Spirit Airlines (NYSE: SAVE). The company confirmed earlier this month that it has submitted a proposal to the Board of Directors of Spirit to acquire the company for $33 per share in cash. JetBlue is confident that its proposal is a “superior proposal” under Spirit’s current merger agreement with Frontier (NASDAQ: ULCC). Not long after that, Spirit Airlines responded favorably as it announced that it is willing to engage in discussions with JetBlue’s proposal. Should this materialize, the combination of the two airlines will position JetBlue as the most compelling national low-fare challenger to the four large dominant U.S. carriers. Given these exciting developments, should JBLU stock gain more attention now?
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Airline Stocks To Watch Right Now Alaska Air Group, Inc (NYSE: ALK) Delta Air Lines, Inc. (NYSE: DAL) American Airlines Group Inc (NASDAQ: AAL) JetBlue Airways Corporation (NASDAQ: JBLU) Alaska Air Alaska Air is a company that engages in airline operations. Now, despite a bumpy start to the year, AAL stock has risen more than 20% within the past month. All things considered, would you add AAL stock to your watchlist?
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Airline Stocks To Watch Right Now Alaska Air Group, Inc (NYSE: ALK) Delta Air Lines, Inc. (NYSE: DAL) American Airlines Group Inc (NASDAQ: AAL) JetBlue Airways Corporation (NASDAQ: JBLU) Alaska Air Alaska Air is a company that engages in airline operations. Now, despite a bumpy start to the year, AAL stock has risen more than 20% within the past month. All things considered, would you add AAL stock to your watchlist?
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Airline Stocks To Watch Right Now Alaska Air Group, Inc (NYSE: ALK) Delta Air Lines, Inc. (NYSE: DAL) American Airlines Group Inc (NASDAQ: AAL) JetBlue Airways Corporation (NASDAQ: JBLU) Alaska Air Alaska Air is a company that engages in airline operations. Now, despite a bumpy start to the year, AAL stock has risen more than 20% within the past month. All things considered, would you add AAL stock to your watchlist?
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Airline Stocks To Watch Right Now Alaska Air Group, Inc (NYSE: ALK) Delta Air Lines, Inc. (NYSE: DAL) American Airlines Group Inc (NASDAQ: AAL) JetBlue Airways Corporation (NASDAQ: JBLU) Alaska Air Alaska Air is a company that engages in airline operations. Now, despite a bumpy start to the year, AAL stock has risen more than 20% within the past month. All things considered, would you add AAL stock to your watchlist?
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3603.0
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2022-04-21 00:00:00 UTC
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American Airlines (AAL) Stock Gains Despite Posting Q1 Loss
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-stock-gains-despite-posting-q1-loss
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nan
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nan
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American Airlines’ AAL first-quarter 2022 loss (excluding 20 cents from non-recurring items) of $2.32 per share compared favorably with the Zacks Consensus Estimate of a loss of $2.43. Quarterly loss per share was also narrower than the year-ago loss of $4.32.
American Airlines Group Inc. Price, Consensus and EPS Surprise
American Airlines Group Inc. price-consensus-eps-surprise-chart | American Airlines Group Inc. Quote
Operating revenues of $8,899 million skyrocketed 122.03% year over year and also surpassed the Zacks Consensus Estimate of $8,810.8 million. This massive year-over-year jump reflects improving air-travel demand. With the Omicron-related threat subsiding in the latter part of the quarter, American Airlines posted record sales in March. The month marked the first period wherein AAL’s total revenues could exceed the 2019 levels since the advent of the pandemic.
Driven by soaring demand as evidenced by the healthy scenario with respect to bookings, management expects AAL to report profit in the June quarter. The uptick in bookings is enabling the carrier to cover the surging fuel costs.
The top-line guidance was naturally very bullish. Total revenues in the first quarter of 2022 are anticipated to be roughly 6-8% higher than the level recorded in second-quarter 2019. Management expects total revenue per available seat mile (TRASM: a key measure of unit revenue) to be 14-16% higher than the second-quarter 2019 actuals. The bright revenue guidance for the second quarter pleased investors, resulting in the stock gaining significantly in pre-market trading.
Other Aspects of Q1 Results
In the March quarter, passenger revenues, which accounted for the bulk of the top line (87.8%), increased to $7,818 million from a mere $3,179 million a year ago, driven by strong demand, mainly on the domestic front. Cargo revenues improved 15.4% to $364 million, driven by the carrier’s focus on its cargo unit in the coronavirus era. Cargo yield per ton mile rose 14.6% in the first quarter of 2022. Other revenues climbed 39.6%.
TRASM increased to 14.95 cents from 10.61 cents a year ago. Passenger revenue per available seat miles (PRASM) surged 56% to 13.13 cents, driven by buoyant air-travel demand. Consolidated yield increased 24.7%.
Reflecting the uptick in air-travel demand, consolidated traffic (measured in revenue passenger miles) rose to 44,290 million from a mere 22,464 million a year ago. To cater to this buoyant demand, capacity (measured in average seat miles) expanded to 59,533 million from 37,764 million. Consolidated load factor (percentage of seats filled by passengers) increased 14.9 percentage points to 74.4%. Improvement on the international front was also encouraging with load factor increasing 26 percentage points year over year to 66%.
Total operating costs (on a reported basis) almost doubled to $10,622 million with aircraft fuel expenses and related taxes skyrocketing to $2,502 million from $1,034 million a year ago. Average fuel price per gallon (including related taxes) climbed to $2.80 from $1.70 a year ago. However, consolidated operating costs per available seat mile (CASM: excluding fuel and special items) declined 18.7% to 13.38 cents. Fuel gallon consumption increased 47% to $894 million in first-quarter 2022. American Airlines, currently carrying a Zacks Rank #3 (Hold), exited the quarter with $15.5 billion of total available liquidity.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Remaining Outlook
American Airlines expects system capacity for the June quarter to decline in the 6-8% range from the figure reported in second-quarter 2019. Fuel cost per gallon in second-quarter 2022 is expected in the $3.59-$3.64 band. Fuel gallon consumption is expected to be $1,013 million. CASM excluding fuel and special items is expected to increase in the 8-10% range in the second quarter of 2022 from the number reported in second-quarter 2019.
Effective tax rate is anticipated to be 22%. Pre-tax margin (excluding net special items) is expected in the 3-5% range for the June quarter. Basic and diluted weighted average shares outstanding are likely to be approximately 650.3 million and 721.2 million, respectively, in the June quarter.
American Airlines expects 2022 capacity to decline 6-8% from the 2019 levels. CASM excluding fuel and special items is expected to increase between 8% and 10% from the 2019 actuals. AAL expects capex in 2022 and 2023 to be $2.6 billion and $3 billion, respectively.
A Peek Into Other Notable Airline Results
Let’s look at the first-quarter 2022 results of American Airlines’ rivals Delta Air Lines DAL and United Airlines UAL.
Delta’s first-quarter 2022 loss (excluding 25 cents from non-recurring items) of $1.23 per share was narrower than the Zacks Consensus Estimate of a loss of $1.28. With Omicron upsetting travel plans in the early half of the first quarter of 2022, the carrier incurred a loss after delivering earnings in the last two quarters of 2021.
However, with the threat of the Omicron variant subsiding, air-travel demand was exceptionally strong in March. Upbeat demand led to DAL earning a profit in the month with the adjusted operating margin reaching almost 10%.
United Airlines incurred a loss of $4.24 per share in the first quarter of 2022, wider than the Zacks Consensus Estimate of a loss of $4.19. Results were hurt by Omicron-induced softness in travel demand in the first half of the reported quarter. Operating revenues of $7,566 million also fell short of the Zacks Consensus Estimate of $7,657.2 million.
UAL expects to return to profitability in the second quarter with an operating margin (both on reported and adjusted basis) of 10%. TRASM is estimated to climb about 17% in the ongoing quarter from the comparable period’s level in 2019. United Airlines is seeing a steady recovery in business-travel demand and expects an improvement in international demand.
5 Stocks Set to Double
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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.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Driven by soaring demand as evidenced by the healthy scenario with respect to bookings, management expects AAL to report profit in the June quarter. American Airlines’ AAL first-quarter 2022 loss (excluding 20 cents from non-recurring items) of $2.32 per share compared favorably with the Zacks Consensus Estimate of a loss of $2.43. The month marked the first period wherein AAL’s total revenues could exceed the 2019 levels since the advent of the pandemic.
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American Airlines’ AAL first-quarter 2022 loss (excluding 20 cents from non-recurring items) of $2.32 per share compared favorably with the Zacks Consensus Estimate of a loss of $2.43. The month marked the first period wherein AAL’s total revenues could exceed the 2019 levels since the advent of the pandemic. Driven by soaring demand as evidenced by the healthy scenario with respect to bookings, management expects AAL to report profit in the June quarter.
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American Airlines’ AAL first-quarter 2022 loss (excluding 20 cents from non-recurring items) of $2.32 per share compared favorably with the Zacks Consensus Estimate of a loss of $2.43. The month marked the first period wherein AAL’s total revenues could exceed the 2019 levels since the advent of the pandemic. Driven by soaring demand as evidenced by the healthy scenario with respect to bookings, management expects AAL to report profit in the June quarter.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines’ AAL first-quarter 2022 loss (excluding 20 cents from non-recurring items) of $2.32 per share compared favorably with the Zacks Consensus Estimate of a loss of $2.43. The month marked the first period wherein AAL’s total revenues could exceed the 2019 levels since the advent of the pandemic.
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3604.0
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2022-04-21 00:00:00 UTC
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American Airlines Wins Earnings, Projects Big Growth
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AAL
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https://www.nasdaq.com/articles/american-airlines-wins-earnings-projects-big-growth
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nan
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nan
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Give American Airlines (AAL) credit for its sheer optimism. The company posted its earnings report, which featured wins, at least of a sort. However, the biggest wins came about as a result of American's impressive projections going forward.
The company encouraged shareholders to brace for what should be the “record of all revenues,” and American shot up 10.5% in premarket trading on Thursday as a result.
Those gains held into Thursday's trading, but I'm turning bearish on American Airlines. When a company advances on smaller than expected losses, I get concerned. Follow that up with a rosy but largely unsupportable thesis about future growth, and I get worried.
Looking at the last 12 months in share prices for American Airlines reminds me of a flight I wouldn't want to be on. The company ended last April on an upward note, but then promptly started a decline.
The company pulled out of its tailspin on at least eight separate occasions. It generally lost ground shortly thereafter, ending the last 12 months down from what it was this time last year.
The latest news seems to be helping, but for how long? The company's earnings report featured a win for both earnings and revenue. The company turned in a loss of $2.32 per share. Refinitiv analysts were expecting a loss of $2.40 per share. Revenue was an outright win at $8.9 billion against projections of $8.8 billion.
Wall Street's Take
Turning to Wall Street, American Airlines has a Moderate Sell consensus rating. That's based on eight Holds and four Sells assigned in the past three months. The average American Airlines price target of $15.41 implies 24.3% downside potential.
Analyst price targets range from a low of $8 per share to a high of $19 per share.
Investor Support Proves Mixed for American
Investor support, meanwhile, is proving a mixed bag.
One of the biggest bear cases for American Airlines right now is hedge fund involvement. The TipRanks 13-F Tracker reveals that hedge funds lowered their involvement by 2.2 million shares last quarter.
American enjoyed a modest uptick in hedge fund involvement between June and September 2021. However, between September and December 2021, the hedge funds pulled back once more.
Insider trading, meanwhile, was fairly brisk. Though lately, sellers are ahead of buyers, the longer-term picture puts the two forces about even. In the last year, buyers led sellers 20 to 13. However, in the last six months, sellers led buyers 13 to nine.
Retail investors, however, are increasingly in on American Airlines. The amount of portfolios holding American shares is up 5.9% in the last 30 days.
Recovery Narrative Doesn't Fly Here
I've never been particularly happy about the notion of a company's stock gaining ground because it posted a smaller loss than expected. Yes, it's a win, but only a win in the technical sense. The company still lost a massive amount of money.
The macroeconomic environment doesn't look good for American Airlines overall, either. It was counting on business travel to return. It's been showing signs of doing that, certainly. With a recession looming in the background, how much longer will that continue?
The same case carries on to individual travelers. Inflation is currently eating disposable income's lunch. Thus, why would travelers hop a flight to anywhere as opposed to staying home and at least somewhat saving money?
Bacardi just filed a lawsuit against American Airlines. Allegedly, the airline failed to deliver several thousand bottles of cognac to Los Angeles back in September. The combined value of the cognac in question came out to $65,820. American, Bacardi notes, has paid nothing in compensation thus far.
Worse yet, American stepped into a minefield of troubles thanks to rapper Iggy Azalea. Azalea, traveling with one-year-old son Onyx, was left “stranded” without luggage at Miami International Airport, Azalea noted.
Azalea took to social media to castigate the company over its practices. In turn, several others who follow the rapper noted their own experiences of being stranded without luggage.
Take all these factors together and suddenly, the “recovery narrative” just doesn't work any more.
Concluding Views
American shares come with downside risk. That alone is bad news; a company trading over its highest price targets is either better than people think, or about to take a fall. Given that American is losing luggage left and right — including that of celebrities and other corporations — it doesn't bode well for the “better than people think” side.
American hasn't paid a dividend in years. Worse, American is frantically losing on multiple fronts. Luggage, hedge fund support, public sentiment, and perhaps worst of all, money.
There are a few bright spots with American. Right now, though, it looks like the company has few other places to go but down.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Give American Airlines (AAL) credit for its sheer optimism. The company encouraged shareholders to brace for what should be the “record of all revenues,” and American shot up 10.5% in premarket trading on Thursday as a result. Recovery Narrative Doesn't Fly Here I've never been particularly happy about the notion of a company's stock gaining ground because it posted a smaller loss than expected.
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Give American Airlines (AAL) credit for its sheer optimism. The company posted its earnings report, which featured wins, at least of a sort. Wall Street's Take Turning to Wall Street, American Airlines has a Moderate Sell consensus rating.
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Give American Airlines (AAL) credit for its sheer optimism. The company encouraged shareholders to brace for what should be the “record of all revenues,” and American shot up 10.5% in premarket trading on Thursday as a result. Looking at the last 12 months in share prices for American Airlines reminds me of a flight I wouldn't want to be on.
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Give American Airlines (AAL) credit for its sheer optimism. Looking at the last 12 months in share prices for American Airlines reminds me of a flight I wouldn't want to be on. The company turned in a loss of $2.32 per share.
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3605.0
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2022-04-21 00:00:00 UTC
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US STOCKS-Wall Street loses steam ahead of Fed chair's speech
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https://www.nasdaq.com/articles/us-stocks-wall-street-loses-steam-ahead-of-fed-chairs-speech
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By Bansari Mayur Kamdar, Sruthi Shankar and Amruta Khandekar
April 21 (Reuters) - The S&P 500 and the Nasdaq reversed early gains on Thursday as bond yields hit fresh multi-year highs ahead of a speech by Federal Reserve Chair Jerome Powell, with investors worried about aggressive interest rate hikes this year.
All the three major indexes opened higher, boosted by strong results from heavyweight Tesla TSLA.O and airline operators, but gave up gains by afternoon trading.
Powell is set to speak at 1:00 p.m. ET at an International Monetary Fund debate. Investors will look for fresh clues on monetary policy tightening, with many expecting the U.S. central bank to raise interest rates by 50 basis points to control soaring inflation.
U.S. Treasury yields rose, with two-year yields, the most sensitive to interest changes, hitting their highest in three years. US/
"Some of the members of the Fed have definitely gone out there and said 75 basis points, or certainly 50, if not 75 is warranted at the next meeting. I certainly want to hear where he stands on that," said Josh Wein, Portfolio Manager at Hennessy Funds.
Data showed the number of Americans filing new claims for unemployment benefits fell moderately last week, suggesting that April was another month of strong job growth.
Megacap growth stocks such as Alphabet Inc GOOGL.O and Amazon.com Inc AMZN.O fell more than 1% each.
Tesla, the world's most valuable automaker TSLA.O, jumped 6.1% after its results beat Wall Street expectations as higher prices helped it overcome supply-chain chaos and rising costs.
"In a world that's desperately looking for growth, Tesla is a reminder that there are some very strong growth stories and also stories that defy the new norm," Wein said.
United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O climbed 11.4% and 4.6%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand.
Overall, analysts expect S&P 500 earnings growth of 6.5% in the first quarter as of Wednesday, compared with the 32.1% rise in the fourth quarter, according to Refinitiv data.
At 12:19 a.m. ET, the Dow Jones Industrial Average .DJI was up 51.09 points, or 0.15%, at 35,211.88, the S&P 500 .SPX was down 3.72 points, or 0.08%, at 4,455.73, and the Nasdaq Composite .IXIC was down 51.37 points, or 0.38%, at 13,401.69.
Neflix NFLX.O fell 3.4%, adding to 35% plunge in the previous session, as billionaire investor William Ackman liquidated a $1.1 billion bet on the streaming giant.
Declining issues outnumbered advancers for a 1.68-to-1 ratio on the NYSE and a 1.97-to-1 ratio on the Nasdaq.
The S&P index recorded 76 new 52-week highs and 12 new lows, while the Nasdaq recorded 62 new highs and 226 new lows.
(Reporting by Bansari Mayur Kamdar, Sruthi Shankar and Amruta Khandekar in Bengaluru; Editing by Arun Koyyur)
((BansariMayur.Kamdar@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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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O climbed 11.4% and 4.6%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand. By Bansari Mayur Kamdar, Sruthi Shankar and Amruta Khandekar April 21 (Reuters) - The S&P 500 and the Nasdaq reversed early gains on Thursday as bond yields hit fresh multi-year highs ahead of a speech by Federal Reserve Chair Jerome Powell, with investors worried about aggressive interest rate hikes this year. Investors will look for fresh clues on monetary policy tightening, with many expecting the U.S. central bank to raise interest rates by 50 basis points to control soaring inflation.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O climbed 11.4% and 4.6%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand. By Bansari Mayur Kamdar, Sruthi Shankar and Amruta Khandekar April 21 (Reuters) - The S&P 500 and the Nasdaq reversed early gains on Thursday as bond yields hit fresh multi-year highs ahead of a speech by Federal Reserve Chair Jerome Powell, with investors worried about aggressive interest rate hikes this year. The S&P index recorded 76 new 52-week highs and 12 new lows, while the Nasdaq recorded 62 new highs and 226 new lows.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O climbed 11.4% and 4.6%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand. By Bansari Mayur Kamdar, Sruthi Shankar and Amruta Khandekar April 21 (Reuters) - The S&P 500 and the Nasdaq reversed early gains on Thursday as bond yields hit fresh multi-year highs ahead of a speech by Federal Reserve Chair Jerome Powell, with investors worried about aggressive interest rate hikes this year. Investors will look for fresh clues on monetary policy tightening, with many expecting the U.S. central bank to raise interest rates by 50 basis points to control soaring inflation.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O climbed 11.4% and 4.6%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand. By Bansari Mayur Kamdar, Sruthi Shankar and Amruta Khandekar April 21 (Reuters) - The S&P 500 and the Nasdaq reversed early gains on Thursday as bond yields hit fresh multi-year highs ahead of a speech by Federal Reserve Chair Jerome Powell, with investors worried about aggressive interest rate hikes this year. Investors will look for fresh clues on monetary policy tightening, with many expecting the U.S. central bank to raise interest rates by 50 basis points to control soaring inflation.
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3606.0
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2022-04-21 00:00:00 UTC
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Is Southwest Airlines Stock a Buy?
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https://www.nasdaq.com/articles/is-southwest-airlines-stock-a-buy
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Most of the airline stocks flew high last week after Delta Air Lines (NYSE: DAL) reported March 2022 quarterly earnings and provided a hopeful outlook for the next quarter. Delta provided some light in a sector that's been otherwise troubled ever since the pandemic hit. The company also announced its future plans of handling more capacity as business and leisure travel return.
Southwest Airlines (NYSE: LUV) stock also surged 8% last week after Delta's positive outlook for the near future. Southwest is set to report its first-quarter results on April 28. Let's take a look at how Southwest has performed in its previous quarter and what analysts are expecting from the March quarter.
Image source: Getty Images.
Prospects rise for the airline industry
Delta Air Lines earnings came as a ray of hope for the industry. Despite reporting an operating loss for the quarter, March was a profitable month for Delta due to robust demand. Delta expects a profitable next quarter (ending in June), with a 93% to 97% recovery in operating revenue from 2019 levels and operating profit margin in the range of 12% to 14% for the second quarter.
In March, CNN reported, Delta, Southwest, and many other airlines signed an open letter and urged President Joe Biden to "end the transportation mask mandate and testing requirements for international travelers." This initiative has been partially approved with the end of the mask mandate. It could make travelers more comfortable and boost travel demand.
Southwest Airlines could surprise with an earnings beat
In January, Southwest discussed its first-quarter guidance, hoping revenue to be down 10% to 15% from 2019 levels with a load factor (passenger seating capacity) of about 75% to 80%. Southwest also expects to have paid $60 million in debts by the first quarter's end.
Meanhwile, Wall Street analysts expect total revenue of around $4.6 billion for the first quarter of 2022, an approximate 119% increase from Q1 2021. However, analysts expect an earnings loss of $0.30 per share for the March quarter. But looking at Delta's profits in March and the surge in demand for summer travel, chances are Southwest could have managed a profitable quarter again.
Southwest already had a profitable quarter compared to its peers. It reported net profits of $68 million, or $0.11 per share, in its fourth quarter, which was its first profitable quarter since the pandemic hit. The company's full-year net income also came in at $977 million, or $1.61 per share, compared to a net loss of $3.5 billion or $6.22 per share, which was quite an improvement.
Talking about Q1 2022 in January, Southwest CEO Bob Jordan stated: "With COVID-19 cases trending downward, the worst appears to be behind us." The airline also seems to be hopeful about current bookings and revenue trends for March 2022. Southwest also hopes to return to profitability in the March quarter.
Peer American Airlines (NASDAQ: AAL) is also set to report its Q1 2022 earnings on April 21. Analysts expect a higher earnings loss of $2.40 per share for American for the quarter. But estimates show revenue could double to $8.8 billion compared to the prior-year quarter, reflecting the slow rise in demand as summer approaches. American has not reported a profitable quarter yet since the pandemic started.
Is Southwest Airlines stock a buy now?
With Delta's profitable month in March and a hopeful outlook for the next quarter, things look good for Southwest as well. As Delta's management mentioned, they've seen corporate travel (both domestic and international) demand rise as the omicron variant cases faded away. This could be a good sign for Southwest Airlines as well. Analysts are also hopeful for the full year and expect Southwest to recover well with total revenue of around $21 billion and a profit of $1.12 per share.
Wall Street sees an upside of 13% for Southwest stock in the next 12 months. Airline stocks could skyrocket once demand starts going back to pre-pandemic levels. For now, Southwest stock is trading below its 52-week high of $63.70, making this the right time to buy it on the dip.
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Sushree Mohanty has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines 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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Peer American Airlines (NASDAQ: AAL) is also set to report its Q1 2022 earnings on April 21. In March, CNN reported, Delta, Southwest, and many other airlines signed an open letter and urged President Joe Biden to "end the transportation mask mandate and testing requirements for international travelers." But estimates show revenue could double to $8.8 billion compared to the prior-year quarter, reflecting the slow rise in demand as summer approaches.
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Peer American Airlines (NASDAQ: AAL) is also set to report its Q1 2022 earnings on April 21. Most of the airline stocks flew high last week after Delta Air Lines (NYSE: DAL) reported March 2022 quarterly earnings and provided a hopeful outlook for the next quarter. Southwest Airlines (NYSE: LUV) stock also surged 8% last week after Delta's positive outlook for the near future.
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Peer American Airlines (NASDAQ: AAL) is also set to report its Q1 2022 earnings on April 21. Most of the airline stocks flew high last week after Delta Air Lines (NYSE: DAL) reported March 2022 quarterly earnings and provided a hopeful outlook for the next quarter. Delta expects a profitable next quarter (ending in June), with a 93% to 97% recovery in operating revenue from 2019 levels and operating profit margin in the range of 12% to 14% for the second quarter.
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Peer American Airlines (NASDAQ: AAL) is also set to report its Q1 2022 earnings on April 21. Most of the airline stocks flew high last week after Delta Air Lines (NYSE: DAL) reported March 2022 quarterly earnings and provided a hopeful outlook for the next quarter. American has not reported a profitable quarter yet since the pandemic started.
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3607.0
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2022-04-21 00:00:00 UTC
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US STOCKS-Wall St rises on strong earnings from Tesla, airlines
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https://www.nasdaq.com/articles/us-stocks-wall-st-rises-on-strong-earnings-from-tesla-airlines
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By Bansari Mayur Kamdar and Sruthi Shankar
April 21 (Reuters) - U.S. stocks rose on Thursday as a slew of upbeat earnings from companies including Tesla outweighed concerns about aggressive interest rates hikes that have kept bond yields elevated.
The world's most valuable automaker TSLA.O jumped 9% after its results beat Wall Street expectations as higher prices helped it overcome supply-chain chaos and rising costs.
United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O surged 11.8% and 7.7%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand.
The wider S&P 1500 Airlines Index .SPCOMAIR jumped 6.3% to its highest level since mid-November.
The gains follow a sharp decline in U.S. stocks on Wednesday after Netflix Inc NFLX.O reported subscriber loss for the first time in a decade, triggering a selloff in technology and growth stocks.
"Earnings have been a mixed big so far, obviously you saw the disappointment with Netflix. We're probably going to go back and forth on a day-to-day basis," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
"People are still looking at the bond market and the Fed policy over the longer term, it's not just earnings."
Investors will focus on Federal Reserve Chair Jerome Powell's speech later in the day for clues on monetary policy tightening plans, with many expecting the U.S. central bank to raise rates by 50 basis points to control soaring inflation.
U.S. Treasury yields rose, with two-year yields hitting their highest in three years. US/
Meanwhile, data showed the number of Americans filing new claims for unemployment benefits fell moderately last week, suggesting that April was another month of strong job growth.
At 10:32 a.m. ET, the Dow Jones Industrial Average .DJI was up 252.44 points, or 0.72%, at 35,413.23, the S&P 500 .SPX was up 39.61 points, or 0.89%, at 4,499.06, and the Nasdaq Composite .IXIC was up 154.41 points, or 1.15%, at 13,607.47.
Growth-oriented sectors like communication services .SPLRCL, consumer discretionary .SPLRCD and technology .SPLRCT rose between 0.4% and 2% in early trading, recovering from Wednesday's selloff.
However, Neflix NFLX.O fell 4.7%, adding to 35% plunge in the previous session, as billionaire investor William Ackman liquidated a $1.1 billion bet on the streaming giant after its results.
Overall, analysts expect S&P 500 earnings growth of 6.5% in the first quarter as of Wednesday, compared with the 32.1% rise in the fourth quarter, according to Refinitiv data.
Advancing issues outnumbered decliners by a 1.60-to-1 ratio on the NYSE and a 1.19-to-1 ratio on the Nasdaq.
The S&P index recorded 65 new 52-week highs and six new lows, while the Nasdaq recorded 56 new highs and 129 new lows.
(Reporting by Bansari Mayur Kamdar and Sruthi Shankar in Bengaluru; Editing by Arun Koyyur)
((BansariMayur.Kamdar@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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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O surged 11.8% and 7.7%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand. By Bansari Mayur Kamdar and Sruthi Shankar April 21 (Reuters) - U.S. stocks rose on Thursday as a slew of upbeat earnings from companies including Tesla outweighed concerns about aggressive interest rates hikes that have kept bond yields elevated. Investors will focus on Federal Reserve Chair Jerome Powell's speech later in the day for clues on monetary policy tightening plans, with many expecting the U.S. central bank to raise rates by 50 basis points to control soaring inflation.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O surged 11.8% and 7.7%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand. By Bansari Mayur Kamdar and Sruthi Shankar April 21 (Reuters) - U.S. stocks rose on Thursday as a slew of upbeat earnings from companies including Tesla outweighed concerns about aggressive interest rates hikes that have kept bond yields elevated. The S&P index recorded 65 new 52-week highs and six new lows, while the Nasdaq recorded 56 new highs and 129 new lows.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O surged 11.8% and 7.7%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand. By Bansari Mayur Kamdar and Sruthi Shankar April 21 (Reuters) - U.S. stocks rose on Thursday as a slew of upbeat earnings from companies including Tesla outweighed concerns about aggressive interest rates hikes that have kept bond yields elevated. Investors will focus on Federal Reserve Chair Jerome Powell's speech later in the day for clues on monetary policy tightening plans, with many expecting the U.S. central bank to raise rates by 50 basis points to control soaring inflation.
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United Airlines Holdings Inc UAL.O and American Airlines Group Inc AAL.O surged 11.8% and 7.7%, respectively, after they predicted a return to profit in the current quarter due to booming travel demand. By Bansari Mayur Kamdar and Sruthi Shankar April 21 (Reuters) - U.S. stocks rose on Thursday as a slew of upbeat earnings from companies including Tesla outweighed concerns about aggressive interest rates hikes that have kept bond yields elevated. The world's most valuable automaker TSLA.O jumped 9% after its results beat Wall Street expectations as higher prices helped it overcome supply-chain chaos and rising costs.
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3608.0
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2022-04-21 00:00:00 UTC
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Stock Market Today: Dow Jones, S&P 500 Opened In Green On Tesla’s Strong Quarter; Airline Stocks Up On Big Travel Demand
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https://www.nasdaq.com/articles/stock-market-today%3A-dow-jones-sp-500-opened-in-green-on-teslas-strong-quarter-airline
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Stock Market Today Mid-Morning Updates
On Thursday, the Dow Jones Industrial Average is up by over 300 points as investors digest Tesla’s (NASDAQ: TSLA) earnings today and await Federal Reserve Chairman Jerome Powell’s speech today, who will talk at 1:00 p.m. ET during the International Monetary Fund Debate on the Global Economy. This comes as, despite market expectations for a series of aggressive interest rate hikes, the Fed in recent days has talked down on making any dramatic moves.
Today, Blackstone (NYSE: BX) is up by over 3% after the private equity firm reported better-than-expected profit and revenue for its first quarter. This quarter’s results were driven by its real estate and credit operations. AT&T (NYSE: T) also reported strong earnings today, with an adjusted earnings per share of $0.63, $0.04 above consensus estimates. Shares of Xerox (NASDAQ: XRX), however, were down by over 15% after it missed its earnings. The office equipment maker was affected by inflation pressures and supply chain issues.
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are up by 1.87% today while Microsoft (NASDAQ: MSFT) is also up by 1.83%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading higher on Thursday. Among the Dow financial leaders, Visa (NYSE: V) is up by 2.14% while JPMorgan Chase (NYSE: JPM) is also up by 0.57%.
Shares of EV leader Tesla are up by 10.13% on Thursday. Rival EV companies like Rivian (NASDAQ: RIVN) are down by 2.46%. Lucid Group (NASDAQ: LCID) is up by 0.86% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are trading lower today.
Dow Jones Today: U.S. Treasury Yields Climbs Ahead Of Powell’s Speech
Following the stock market opening on Thursday, the S&P 500, Dow, and Nasdaq are trading higher at 1.01%, 0.81%, and 1.23% respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is up by 1.43% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also up by 1.04%.
The benchmark 10-year U.S. Treasury yield is currently at an elevated high of 2.88% in recent months. Fed Chairman Jerome Powell will be speaking on the global economy at an IMF debate after the IMF had cut its global economic growth forecast on Tuesday, for both 2022 and 2023. This is largely due to the disruption that is to come of Russia’s invasion of Ukraine.
Today, the mayor of the besieged Ukrainian port city of Mariupol, Vadym Boichenko says that buses have not yet arrived to begin evacuating citizens. According to a report by the International Organization for Migration, more than 7.7 million people have been internally displaced in Ukraine due to Russia’s invasion.
[Read More] Top Stock Market News For Today April 21, 2022
Tesla Stock Sees Electrifying Gains After Blowout Quarterly Financial Report
For today’s series of earnings-related news, Tesla iis among the heavy hitters gaining attention. By and large, the company is looking at stellar figures in its first fiscal quarter release yesterday. Diving right in, the electric vehicle (EV) firm continues to race past the competition at breakneck speed. For the quarter, it is boasting earnings of $3.22 per share on revenue of $18.76 billion. To put things into perspective, This is versus Wall Street forecasts of $2.26 and $17.8 billion respectively.
As you can imagine, this overall solid performance from Tesla stems from its booming automotive sales. On this front, the company raked in a total of $16.86 billion for the quarter. Year-over-year, this adds up to a massive 87% leap. Additionally, Tesla also notes that its automotive gross margins for the quarter are up at 32.9%. After considering the company’s aggressive manufacturing capacity expansion efforts, this is all understandable. Evidently, over the past month, Tesla launched two new mega factories, massive production facilities. These would be its Giga Berlin and Giga Texas plants. Across the two Giga’s, Tesla is projecting a total annual production rate of one million units once production ramps up.
For one thing, all this could further serve to help Tesla maintain its current momentum. After all, the company did post back-to-back record quarterly deliveries over the past two quarters. Throughout the first quarter of the year alone, Tesla delivered over 310,000 units.
Source: TradingView
[Read More] Good Stocks To Buy Right Now? 5 Semiconductor Stocks For Your Watchlist
Airline Stocks In Focus As Soaring Travel Demand Bolsters 2022 Outlooks
In other mobility-related news, some of the top airline stocks around are coming out the gate strong today. For the most part, this is likely thanks to the likes of United Airlines (NASDAQ: UAL) and American Airlines (NASDAQ: AAL). To begin with, United saw a quarterly loss of $4.24 per share on revenue of $7.57 billion in its latest quarterly financial update yesterday. For reference, this is in comparison to consensus estimates of a $4.22 loss and $7.68 billion respectively. Despite falling short on both of these metrics, investors appear to be more than keen on UAL stock today. This is apparent as the company’s shares are up by over 11% now. More on this later.
At the same time, American posted commendable results in its first-quarterearnings callearlier today as well. In it, the airline firm saw a loss of $2.32 per share, better than Wall Street forecasts of a $2.40 loss. Moreover, the company also topped consensus revenue expectations of $8.826 billion with sales of $8.9 billion this quarter. Likewise, AAL stock is currently up by a notable 7% at today’s opening bell.
In the larger scheme of things, investors are likely to focus on both companies’ outlooks for the current fiscal year. On one hand, United expects to turn a profit by 2022. On the other hand, American is already forecasting a similar move in the current quarter. The company’s March 2022 revenue is also notably above 2019 levels already. Both companies are citing a strong return in demand for travel as key growth drivers for these outlooks. With all this in mind, I could see airline stocks being in the limelight today.
Source: TradingView
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For the most part, this is likely thanks to the likes of United Airlines (NASDAQ: UAL) and American Airlines (NASDAQ: AAL). Likewise, AAL stock is currently up by a notable 7% at today’s opening bell. This comes as, despite market expectations for a series of aggressive interest rate hikes, the Fed in recent days has talked down on making any dramatic moves.
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For the most part, this is likely thanks to the likes of United Airlines (NASDAQ: UAL) and American Airlines (NASDAQ: AAL). Likewise, AAL stock is currently up by a notable 7% at today’s opening bell. Dow Jones Today: U.S. Treasury Yields Climbs Ahead Of Powell’s Speech Following the stock market opening on Thursday, the S&P 500, Dow, and Nasdaq are trading higher at 1.01%, 0.81%, and 1.23% respectively.
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For the most part, this is likely thanks to the likes of United Airlines (NASDAQ: UAL) and American Airlines (NASDAQ: AAL). Likewise, AAL stock is currently up by a notable 7% at today’s opening bell. Stock Market Today Mid-Morning Updates On Thursday, the Dow Jones Industrial Average is up by over 300 points as investors digest Tesla’s (NASDAQ: TSLA) earnings today and await Federal Reserve Chairman Jerome Powell’s speech today, who will talk at 1:00 p.m.
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For the most part, this is likely thanks to the likes of United Airlines (NASDAQ: UAL) and American Airlines (NASDAQ: AAL). Likewise, AAL stock is currently up by a notable 7% at today’s opening bell. Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are up by 1.87% today while Microsoft (NASDAQ: MSFT) is also up by 1.83%.
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3609.0
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2022-04-21 00:00:00 UTC
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Weekly Jobless Claims Remain At Five Decades Low
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https://www.nasdaq.com/articles/weekly-jobless-claims-remain-at-five-decades-low
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Pre-market futures are up again this morning, setting what might be — still too early to know for sure — the first week in the green on any major index for at least a couple weeks. Even after key economic data hit the tape an hour before the opening bell, the Dow is +235 points, the Nasdaq +150 and the S&P 500 +35 points.
Being Thursday morning, new employment data is out in the form of Weekly Initial Jobless Claims, which remain down at 50+ year lows, at 184K last week. This is down a tick from the slightly upwardly revised 186K the previous week. Consensus was for an even better print, though it’s hard to see how one calls late-1960s jobless claims levels a “disappointment.”
Continuing Claims, reported a week in arrears from new claims, did touch a new post-Covid low this morning: 1.417 million, down 58K from the previous week’s tally, the lowest we’ve seen since 1970. Most of Generation X wasn’t even born the last time long-term unemployment claims stayed this low. It’s a true testament to the robust — and tight — workforce we’ve also seen register in other economic data.
The Philly Fed for April came in a little underwhelming this morning: 17.6 versus expectations around the trailing year-to-date average 21. We’ve seen two lower monthly reads in the past half-year, but we’re clearly off the trailing 12-month 24.7-point pace. Also, future indicators for general activity have dropped to their lowest levels since December 2008 — the heart of the Great Recession. We hope to see things pick up in Philadelphia manufacturing.
American Airlines AAL outperformed expectations in it Q1 report this morning, with negative earnings of -$2.32 per share less severe than the -$2.43 expected, and far better than the -$4.32 per share hole the airline saw itself in during the year-ago quarter. Revenues beat expectations by 1% to $8.9 billion in the quarter. Shares are up +10.8% on the news in the pre-market, adding onto the +8.5% gains the stock has made, year to date. For more on AAL’s earnings, click here.
North America’s largest electric utility (by market cap), NextEra Energy NEE, was mixed in its Q1 report this morning: earnings of 74 cents per share beat the 69 cents in the Zacks consensus and the 67 cents per share reported a year ago. But quarterly revenues were way off, $2.89 billion. Shares are flat-to-down on the earnings report, and are already down -12.7% year to date.
Copper-producing major FreeportMcMoRan FCX put up a solid earnings beat this morning in its Q1 earnings release: $1.07 per share easily toppled the 88 cents per share expected, and more than doubled the year-ago quarter’s earnings of 51 cents per share. Copper prices rose 7% in the quarter, according to the company. Shares are down -2% on the news, but FCX has already gained +20.3% so far this 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 >>
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NextEra Energy, Inc. (NEE): Free Stock Analysis Report
FreeportMcMoRan Inc. (FCX): 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 outperformed expectations in it Q1 report this morning, with negative earnings of -$2.32 per share less severe than the -$2.43 expected, and far better than the -$4.32 per share hole the airline saw itself in during the year-ago quarter. For more on AAL’s earnings, click here. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines AAL outperformed expectations in it Q1 report this morning, with negative earnings of -$2.32 per share less severe than the -$2.43 expected, and far better than the -$4.32 per share hole the airline saw itself in during the year-ago quarter. For more on AAL’s earnings, click here. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines AAL outperformed expectations in it Q1 report this morning, with negative earnings of -$2.32 per share less severe than the -$2.43 expected, and far better than the -$4.32 per share hole the airline saw itself in during the year-ago quarter. For more on AAL’s earnings, click here. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines AAL outperformed expectations in it Q1 report this morning, with negative earnings of -$2.32 per share less severe than the -$2.43 expected, and far better than the -$4.32 per share hole the airline saw itself in during the year-ago quarter. For more on AAL’s earnings, click here. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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3610.0
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2022-04-21 00:00:00 UTC
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Could Affirm Holdings Become the Next PayPal?
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AAL
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https://www.nasdaq.com/articles/could-affirm-holdings-become-the-next-paypal
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Affirm Holdings (NASDAQ: AFRM) was one of the hottest fintech stocks of 2021. The buy now, pay later (BNPL) provider had its initial public offering (IPO) at $49 in January 2021, opened at $90.90, and closed at an all-time high of $168.52 last November. But today, it trades at about $35 a share.
Affirm's stock plunged below its IPO price as investors fretted over its widening losses, rising leverage, and the inherent risks of BNPL services. The broader sell-off across higher-growth tech stocks, which was largely caused by inflation and rising interest rates, exacerbated that pain.
But despite that big setback, Affirm still has plenty of bullish backers. The average price target for the stock is still $64 on Wall Street, and only one of the 15 analysts who cover the stock rate it as a sell.
So could this unloved fintech underdog bounce back over the next few years and become the next PayPal Holdings (NASDAQ: PYPL)? Let's evaluate Affirm's business, how it might benefit from similar secular tailwinds as PayPal, and if it could ever evolve into a comparable company.
Image source: Getty Images.
Affirm's main mission
Instead of allowing a centralized payment network like Visa and Mastercard to handle each transaction, Affirm performs soft credit checks to facilitate new "microloans" for each purchase.
Affirm splits each purchase into smaller payments without any hidden or late fees, then calculates the interest payments with a fixed dollar amount instead of compounding percentages. That approach enables Affirm to serve shoppers who don't have any traditional credit cards. Its fees for retailers are also generally lower than the swipe fees for credit cards.
Affirm's flexible payment model and lower fees have locked in a lot of consumers and retailers. In its latest quarter, it grew its active consumers 150% year over year to 11 million as its number of active merchants surged from about 8,000 to 168,000. Most of its merchant growth can be attributed to its new partnership with Shopify, but it has also locked in other big partners like Amazon, Walmart, Target, and American Airlines.
Affirm's revenue rose 71% to $870.5 million in fiscal 2021, which ended last June, and it anticipates 48% to 50% growth in fiscal 2022.
It's still tiny compared to PayPal
Affirm is growing like a weed, but it's still tiny compared to PayPal, which ended 2021 with 426 million active accounts, while its peer-to-peer payments app Venmo served more than 83 million U.S. users.
PayPal's ecosystem is also much more diversified than Affirm's. In addition to its namesake digital payments service and Venmo, it also provides back-end payments software through Braintree, high-yield savings accounts with Synchrony Financial, cryptocurrency services, a mobile wallet, and its own integrated BNPL tools. It bundles all of those features together in an all-in-one app for digital financial services.
That's why PayPal is expected to generate more than 20 times as much revenue as Affirm this year. It's also profitable, while Affirm continues to drown in a sea of red ink, posting a whopping net loss of $431 million in fiscal 2021. And analysts expect an even wider loss of $777 million in fiscal 2022.
It's unclear if Affirm's business is sustainable
PayPal now faces some tough questions regarding its future after it abruptly abandoned its goal of hitting 750 million active accounts by 2025.
But Affirm faces even tougher existential questions regarding the sustainability of its core BNPL business. The critics claim Affirm merely provides a subprime lending platform for consumers who can't get approved for traditional credit cards, and that its delinquency rates will rise as inflation and other macroeconomic headwinds trigger an economic downturn.
They also claim Affirm needs to raise its fees to narrow its losses and rein in its rising debt-to-equity ratio -- which doubled year over year from 0.9 to 1.8 in its latest quarter. However, doing so could alienate its merchants and consumers, driving them back toward traditional credit cards.
Furthermore, competition from other BNPL services that are integrated into larger payment platforms -- such as PayPal's Pay in 4 and Block's (NYSE: SQ) Afterpay -- could cause major headaches for Affirm.
Affirm definitely isn't the next PayPal yet
Affirm should continue to grow, but it still hasn't proved that its core business is sustainable. It also doesn't have enough capital to acquire other smaller companies to expand its fintech ecosystem.
Therefore, Affirm is still more comparable to Afterpay, which was acquired by Block this January, and Paidy, the Japanese BNPL platform that was bought by PayPal last September. Simply put, Affirm is a potential takeover target that might fit well into a larger fintech platform, but I don't think it will ever become a fintech giant like PayPal on its own.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Synchrony Financial is an advertising partner of The Ascent, a Motley Fool company. Leo Sun owns Amazon. The Motley Fool owns and recommends Affirm Holdings, Inc., Amazon, Block, Inc., Mastercard, PayPal Holdings, Shopify, and Visa. The Motley Fool recommends the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. 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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It's unclear if Affirm's business is sustainable PayPal now faces some tough questions regarding its future after it abruptly abandoned its goal of hitting 750 million active accounts by 2025. The critics claim Affirm merely provides a subprime lending platform for consumers who can't get approved for traditional credit cards, and that its delinquency rates will rise as inflation and other macroeconomic headwinds trigger an economic downturn. Furthermore, competition from other BNPL services that are integrated into larger payment platforms -- such as PayPal's Pay in 4 and Block's (NYSE: SQ) Afterpay -- could cause major headaches for Affirm.
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It's still tiny compared to PayPal Affirm is growing like a weed, but it's still tiny compared to PayPal, which ended 2021 with 426 million active accounts, while its peer-to-peer payments app Venmo served more than 83 million U.S. users. Furthermore, competition from other BNPL services that are integrated into larger payment platforms -- such as PayPal's Pay in 4 and Block's (NYSE: SQ) Afterpay -- could cause major headaches for Affirm. The Motley Fool owns and recommends Affirm Holdings, Inc., Amazon, Block, Inc., Mastercard, PayPal Holdings, Shopify, and Visa.
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It's still tiny compared to PayPal Affirm is growing like a weed, but it's still tiny compared to PayPal, which ended 2021 with 426 million active accounts, while its peer-to-peer payments app Venmo served more than 83 million U.S. users. Affirm definitely isn't the next PayPal yet Affirm should continue to grow, but it still hasn't proved that its core business is sustainable. The Motley Fool owns and recommends Affirm Holdings, Inc., Amazon, Block, Inc., Mastercard, PayPal Holdings, Shopify, and Visa.
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Affirm definitely isn't the next PayPal yet Affirm should continue to grow, but it still hasn't proved that its core business is sustainable. Synchrony Financial is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool owns and recommends Affirm Holdings, Inc., Amazon, Block, Inc., Mastercard, PayPal Holdings, Shopify, and Visa.
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3611.0
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2022-04-21 00:00:00 UTC
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US STOCKS-Futures climb after strong results from Tesla
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AAL
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https://www.nasdaq.com/articles/us-stocks-futures-climb-after-strong-results-from-tesla
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Futures up: Dow 0.60%, S&P 0.78%, Nasdaq 1.11%
April 21 (Reuters) - U.S. stock index futures rose on Thursday as heavyweight Tesla surged on strong results and United Airlines predicted a surprise profit in its current quarter, boosting shares of other carriers.
The world's most valuable automaker TSLA.O jumped 7.7% in premarket trading as higher prices helped it overcome supply-chain chaos and rising costs.
In the previous session, heavy losses in Netflix Inc's shares following its dismal results had triggered a selloff in technology and growth stocks and pushed the tech-heavy Nasdaq .IXIC down more than 1%.
Another bright spot was United Airlines Holdings Inc UAL.O. Shares rose 7.5% as it forecast profit for the second quarter and said booming travel demand could generate the highest quarterly revenue in its history.
Shares of peers American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and Delta Air Lines Inc DAL.N gained between 2.5% and 4.8%.
Overall, analysts expect S&P 500 earnings growth of 6.5% in the first quarter as of Wednesday, compared to the 32.1% growth in the previous quarter, according to Refinitiv data.
Investors will focus on Federal Reserve Chair Jerome Powell's speech later in the day for clues on monetary policy tightening plans, with many expecting a 50 basis points rate hike next month.
U.S. stocks have come under pressure this month, with high-growth stocks taking a hit from a surge in Treasury yields due to galloping inflation and hawkish remarks from Fed policymakers.
Initial claims for state unemployment benefits will be released at 08:30 am ET. Claims are expected to have fallen 5,000 to a seasonally adjusted 180,000 for the week ended April 16.
At 06:42 a.m. ET, Dow e-minis 1YMcv1 were up 211 points, or 0.6%, S&P 500 e-minis EScv1 were up 34.75 points, or 0.78%, and Nasdaq 100 e-minis NQcv1 were up 155.75 points, or 1.11%.
AT&T Inc T.N rose 1.5% after posting a rise in core wireless revenue for the first quarter, as the telecom giant benefited from the aggressive expansion of its fiber internet and 5G services.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Arun Koyyur)
((BansariMayur.Kamdar@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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Shares of peers American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and Delta Air Lines Inc DAL.N gained between 2.5% and 4.8%. In the previous session, heavy losses in Netflix Inc's shares following its dismal results had triggered a selloff in technology and growth stocks and pushed the tech-heavy Nasdaq .IXIC down more than 1%. Investors will focus on Federal Reserve Chair Jerome Powell's speech later in the day for clues on monetary policy tightening plans, with many expecting a 50 basis points rate hike next month.
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Shares of peers American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and Delta Air Lines Inc DAL.N gained between 2.5% and 4.8%. Futures up: Dow 0.60%, S&P 0.78%, Nasdaq 1.11% April 21 (Reuters) - U.S. stock index futures rose on Thursday as heavyweight Tesla surged on strong results and United Airlines predicted a surprise profit in its current quarter, boosting shares of other carriers. In the previous session, heavy losses in Netflix Inc's shares following its dismal results had triggered a selloff in technology and growth stocks and pushed the tech-heavy Nasdaq .IXIC down more than 1%.
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Shares of peers American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and Delta Air Lines Inc DAL.N gained between 2.5% and 4.8%. Futures up: Dow 0.60%, S&P 0.78%, Nasdaq 1.11% April 21 (Reuters) - U.S. stock index futures rose on Thursday as heavyweight Tesla surged on strong results and United Airlines predicted a surprise profit in its current quarter, boosting shares of other carriers. Overall, analysts expect S&P 500 earnings growth of 6.5% in the first quarter as of Wednesday, compared to the 32.1% growth in the previous quarter, according to Refinitiv data.
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Shares of peers American Airlines Group Inc AAL.O, Southwest Airlines Co LUV.N and Delta Air Lines Inc DAL.N gained between 2.5% and 4.8%. Another bright spot was United Airlines Holdings Inc UAL.O. Shares rose 7.5% as it forecast profit for the second quarter and said booming travel demand could generate the highest quarterly revenue in its history.
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3612.0
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2022-04-21 00:00:00 UTC
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Miner Anglo American lowers production guidance after 10% Q1 drop
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AAL
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https://www.nasdaq.com/articles/miner-anglo-american-lowers-production-guidance-after-10-q1-drop
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LONDON, April 21 (Reuters) - Global miner Anglo American's AAL.L first-quarter production fell 10% year on year, partly owing to operations running at reduced capacity because of higher rates of COVID-19 infections among workers, it said on Thursday.
The London-listed company also lowered full-year guidance on volumes and unit cost for metals including platinum, iron ore and metallurgical coal to reflect inflationary pressure on prices, particularly diesel.
Copper production fell 13% to 139,500 tonnes in the first quarter, from 160,300 tonnes in the same period last year, because of lower grades.
(Reporting by Clara Denina Editing by David Goodman )
((Clara.Denina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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LONDON, April 21 (Reuters) - Global miner Anglo American's AAL.L first-quarter production fell 10% year on year, partly owing to operations running at reduced capacity because of higher rates of COVID-19 infections among workers, it said on Thursday. The London-listed company also lowered full-year guidance on volumes and unit cost for metals including platinum, iron ore and metallurgical coal to reflect inflationary pressure on prices, particularly diesel. (Reporting by Clara Denina Editing by David Goodman ) ((Clara.Denina@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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LONDON, April 21 (Reuters) - Global miner Anglo American's AAL.L first-quarter production fell 10% year on year, partly owing to operations running at reduced capacity because of higher rates of COVID-19 infections among workers, it said on Thursday. Copper production fell 13% to 139,500 tonnes in the first quarter, from 160,300 tonnes in the same period last year, because of lower grades. (Reporting by Clara Denina Editing by David Goodman ) ((Clara.Denina@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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LONDON, April 21 (Reuters) - Global miner Anglo American's AAL.L first-quarter production fell 10% year on year, partly owing to operations running at reduced capacity because of higher rates of COVID-19 infections among workers, it said on Thursday. The London-listed company also lowered full-year guidance on volumes and unit cost for metals including platinum, iron ore and metallurgical coal to reflect inflationary pressure on prices, particularly diesel. (Reporting by Clara Denina Editing by David Goodman ) ((Clara.Denina@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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LONDON, April 21 (Reuters) - Global miner Anglo American's AAL.L first-quarter production fell 10% year on year, partly owing to operations running at reduced capacity because of higher rates of COVID-19 infections among workers, it said on Thursday. The London-listed company also lowered full-year guidance on volumes and unit cost for metals including platinum, iron ore and metallurgical coal to reflect inflationary pressure on prices, particularly diesel. Copper production fell 13% to 139,500 tonnes in the first quarter, from 160,300 tonnes in the same period last year, because of lower grades.
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3613.0
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2022-04-21 00:00:00 UTC
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American Airlines Group Inc Q1 Loss Decreases, beats estimates
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc-q1-loss-decreases-beats-estimates
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nan
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(RTTNews) - American Airlines Group Inc (AAL) announced Loss for its first quarter that increased from the same period last year and missed the Street estimates.
The company's earnings came in at -$1.64 billion, or -$2.52 per share. This compares with -$1.25 billion, or -$1.97 per share, in last year's first quarter.
Excluding items, American Airlines Group Inc reported adjusted earnings of -$1.51 billion or -$2.32 per share for the period.
Analysts on average had expected the company to earn -$2.40 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 121.9% to $8.90 billion from $4.01 billion last year.
American Airlines Group Inc earnings at a glance (GAAP) :
-Earnings (Q1): -$1.64 Bln. vs. -$1.25 Bln. last year. -EPS (Q1): -$2.52 vs. -$1.97 last year. -Analyst Estimate: -$2.40 -Revenue (Q1): $8.90 Bln vs. $4.01 Bln last year.
The views and 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) announced Loss for its first quarter that increased from the same period last year and missed the Street estimates. Excluding items, American Airlines Group Inc reported adjusted earnings of -$1.51 billion or -$2.32 per share for the period. Analysts on average had expected the company to earn -$2.40 per share, according to figures compiled by Thomson Reuters.
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(RTTNews) - American Airlines Group Inc (AAL) announced Loss for its first quarter that increased from the same period last year and missed the Street estimates. Excluding items, American Airlines Group Inc reported adjusted earnings of -$1.51 billion or -$2.32 per share for the period. American Airlines Group Inc earnings at a glance (GAAP) : -Earnings (Q1): -$1.64 Bln.
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(RTTNews) - American Airlines Group Inc (AAL) announced Loss for its first quarter that increased from the same period last year and missed the Street estimates. Excluding items, American Airlines Group Inc reported adjusted earnings of -$1.51 billion or -$2.32 per share for the period. The company's revenue for the quarter rose 121.9% to $8.90 billion from $4.01 billion last year.
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(RTTNews) - American Airlines Group Inc (AAL) announced Loss for its first quarter that increased from the same period last year and missed the Street estimates. The company's earnings came in at -$1.64 billion, or -$2.52 per share. Excluding items, American Airlines Group Inc reported adjusted earnings of -$1.51 billion or -$2.32 per share for the period.
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3614.0
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2022-04-21 00:00:00 UTC
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US STOCKS SNAPSHOT-Wall St rises at open on boost from Tesla, airlines
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AAL
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https://www.nasdaq.com/articles/us-stocks-snapshot-wall-st-rises-at-open-on-boost-from-tesla-airlines
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nan
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April 21 (Reuters) - The Nasdaq led Wall Street's main indexes higher on Thursday, lifted by a surge in Tesla shares, with airline stocks providing added boost after United Airlines and American Airlines forecast a return to profitability in the current quarter.
The Dow Jones Industrial Average .DJI rose 98.0 points, or 0.28%, at the open to 35258.8.
The S&P 500 .SPX rose 29.7 points, or 0.67%, at the open to 4489.17, while the Nasdaq Composite .IXIC rose 170.6 points, or 1.27%, to 13623.704 at the opening bell.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva)
((BansariMayur.Kamdar@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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April 21 (Reuters) - The Nasdaq led Wall Street's main indexes higher on Thursday, lifted by a surge in Tesla shares, with airline stocks providing added boost after United Airlines and American Airlines forecast a return to profitability in the current quarter. The Dow Jones Industrial Average .DJI rose 98.0 points, or 0.28%, at the open to 35258.8. (Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva) ((BansariMayur.Kamdar@thomsonreuters.com;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Dow Jones Industrial Average .DJI rose 98.0 points, or 0.28%, at the open to 35258.8. The S&P 500 .SPX rose 29.7 points, or 0.67%, at the open to 4489.17, while the Nasdaq Composite .IXIC rose 170.6 points, or 1.27%, to 13623.704 at the opening bell. (Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva) ((BansariMayur.Kamdar@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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April 21 (Reuters) - The Nasdaq led Wall Street's main indexes higher on Thursday, lifted by a surge in Tesla shares, with airline stocks providing added boost after United Airlines and American Airlines forecast a return to profitability in the current quarter. The S&P 500 .SPX rose 29.7 points, or 0.67%, at the open to 4489.17, while the Nasdaq Composite .IXIC rose 170.6 points, or 1.27%, to 13623.704 at the opening bell. (Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva) ((BansariMayur.Kamdar@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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April 21 (Reuters) - The Nasdaq led Wall Street's main indexes higher on Thursday, lifted by a surge in Tesla shares, with airline stocks providing added boost after United Airlines and American Airlines forecast a return to profitability in the current quarter. The Dow Jones Industrial Average .DJI rose 98.0 points, or 0.28%, at the open to 35258.8. The S&P 500 .SPX rose 29.7 points, or 0.67%, at the open to 4489.17, while the Nasdaq Composite .IXIC rose 170.6 points, or 1.27%, to 13623.704 at the opening bell.
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3615.0
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2022-04-21 00:00:00 UTC
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American Airlines (AAL) Reports Q1 Loss, Tops Revenue Estimates
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-reports-q1-loss-tops-revenue-estimates
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American Airlines (AAL) came out with a quarterly loss of $2.32 per share versus the Zacks Consensus Estimate of a loss of $2.43. This compares to loss of $4.32 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 4.53%. A quarter ago, it was expected that this world's largest airline would post a loss of $1.51 per share when it actually produced a loss of $1.42, delivering a surprise of 5.96%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
American Airlines, which belongs to the Zacks Transportation - Airline industry, posted revenues of $8.9 billion for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 1%. This compares to year-ago revenues of $4.01 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
American Airlines shares have added about 8.5% since the beginning of the year versus the S&P 500's decline of -6.4%.
What's Next for American Airlines?
While American Airlines has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for American Airlines: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.87 on $10.98 billion in revenues for the coming quarter and -$3.24 on $43.26 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 bottom 14% 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, JetBlue Airways (JBLU), is yet to report results for the quarter ended March 2022. The results are expected to be released on April 26.
This airline is expected to post quarterly loss of $0.86 per share in its upcoming report, which represents a year-over-year change of +41.9%. The consensus EPS estimate for the quarter has been revised 118.6% lower over the last 30 days to the current level.
JetBlue Airways' revenues are expected to be $1.74 billion, up 137.4% from the year-ago quarter.
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 >>
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL) came out with a quarterly loss of $2.32 per share versus the Zacks Consensus Estimate of a loss of $2.43. American Airlines Group Inc. (AAL): Free Stock Analysis Report Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines (AAL) came out with a quarterly loss of $2.32 per share versus the Zacks Consensus Estimate of a loss of $2.43. American Airlines, which belongs to the Zacks Transportation - Airline industry, posted revenues of $8.9 billion for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 1%.
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American Airlines (AAL) came out with a quarterly loss of $2.32 per share versus the Zacks Consensus Estimate of a loss of $2.43. American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines, which belongs to the Zacks Transportation - Airline industry, posted revenues of $8.9 billion for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 1%.
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American Airlines (AAL) came out with a quarterly loss of $2.32 per share versus the Zacks Consensus Estimate of a loss of $2.43. American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines, which belongs to the Zacks Transportation - Airline industry, posted revenues of $8.9 billion for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 1%.
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3616.0
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2022-04-21 00:00:00 UTC
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Pre-Market Most Active for Apr 21, 2022 : AAL, CRXT, RDBX, TQQQ, SQQQ, AAPL, T, ABT, CCL, NIO, RELX, ELAN
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-apr-21-2022-%3A-aal-crxt-rdbx-tqqq-sqqq-aapl-t-abt-ccl-nio-relx
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The NASDAQ 100 Pre-Market Indicator is up 177.6 to 14,176.13. The total Pre-Market volume is currently 37,109,415 shares traded.
The following are the most active stocks for the pre-market session:
American Airlines Group, Inc. (AAL) is +1.82 at $21.30, with 6,724,605 shares traded. Smarter Analyst Reports: American Airlines Jumps 2% on Lower-than-Feared Quarterly Loss, Revenue Beats
Clarus Therapeutics Holdings, Inc. (CRXT) is +0.34 at $2.42, with 4,857,715 shares traded. As reported by Zacks, the current mean recommendation for CRXT is in the "buy range".
Redbox Entertainment Inc. (RDBX) is +0.38 at $2.92, with 2,511,534 shares traded. As reported by Zacks, the current mean recommendation for RDBX is in the "buy range".
ProShares UltraPro QQQ (TQQQ) is +1.69 at $49.59, with 1,788,903 shares traded. This represents a 25.35% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is -1.36 at $38.08, with 1,426,665 shares traded. This represents a 35.28% increase from its 52 Week Low.
Apple Inc. (AAPL) is +1.77 at $169.00, with 1,334,137 shares traded.AAPL is scheduled to provide an earnings report on 4/28/2022, for the fiscal quarter ending Mar2022. The consensus earnings per share forecast is 1.44 per share, which represents a 140 percent increase over the EPS one Year Ago
AT&T Inc. (T) is +0.3188 at $19.75, with 1,189,738 shares traded. Smarter Analyst Reports: AT&T Posts Strong Q3 Results on Customer Growth
Abbott Laboratories (ABT) is +1.06 at $123.70, with 963,164 shares traded. As reported by Zacks, the current mean recommendation for ABT is in the "buy range".
Carnival Corporation (CCL) is +0.65 at $20.27, with 655,401 shares traded. CCL's current last sale is 92.14% of the target price of $22.
NIO Inc. (NIO) is +0.35 at $18.50, with 635,814 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
RELX PLC (RELX) is +0.1 at $31.45, with 600,239 shares traded. As reported by Zacks, the current mean recommendation for RELX is in the "strong buy range".
Elanco Animal Health Incorporated (ELAN) is +0.07 at $26.35, with 480,672 shares traded. ELAN's current last sale is 71.22% of the target price of $37.
The views and 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 +1.82 at $21.30, with 6,724,605 shares traded. Smarter Analyst Reports: American Airlines Jumps 2% on Lower-than-Feared Quarterly Loss, Revenue Beats Apple Inc. (AAPL) is +1.77 at $169.00, with 1,334,137 shares traded.AAPL is scheduled to provide an earnings report on 4/28/2022, for the fiscal quarter ending Mar2022.
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American Airlines Group, Inc. (AAL) is +1.82 at $21.30, with 6,724,605 shares traded. Smarter Analyst Reports: American Airlines Jumps 2% on Lower-than-Feared Quarterly Loss, Revenue Beats As reported by Zacks, the current mean recommendation for CRXT is in the "buy range".
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American Airlines Group, Inc. (AAL) is +1.82 at $21.30, with 6,724,605 shares traded. The total Pre-Market volume is currently 37,109,415 shares traded. The consensus earnings per share forecast is 1.44 per share, which represents a 140 percent increase over the EPS one Year Ago
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American Airlines Group, Inc. (AAL) is +1.82 at $21.30, with 6,724,605 shares traded. The consensus earnings per share forecast is 1.44 per share, which represents a 140 percent increase over the EPS one Year Ago AT&T Inc. (T) is +0.3188 at $19.75, with 1,189,738 shares traded.
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3617.0
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2022-04-21 00:00:00 UTC
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Daily Markets: Pace of Earnings Accelerates, Powell and Lagarde on Deck
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AAL
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https://www.nasdaq.com/articles/daily-markets%3A-pace-of-earnings-accelerates-powell-and-lagarde-on-deck
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Today’s Big Picture
Asia-Pacific equity indexes ended today’s session mixed as China’s policy easing actions were deemed not strong enough for the market pushing China’s Shanghai Composite 2.26% lower, Hong Kong’s Hang Seng off 1.25% and Taiwan’s TAIEX down 0.12%. Outside of those markets, Australia’s ASX All Ordinaries rose 0.22%, Korea’s KOSPI gained 0.35%, Japan’s Nikkei advanced 1.23% and India’s Sensex led the way, closing up 1.53% on the day. By mid-day trading, major European equity indices are up across the board, and US futures point to a healthy market open later this morning.
Investors and those equity futures will have to contend with the accelerating pace of March quarter earnings today as well as the 10-year real-yield for U.S. Treasuries turning positive yesterday for the first time since March 2020. That real-yield move reflects growing bets the Fed will adopt a more aggressive than previously expected rate-hiking cycle following the latest Fed Beige Book that showed inflationary pressures remained strong. At the same time, however, we are starting to see firms including Bank of America (BAC) and Nomura Asset Management voice the view that the panic over inflation and rate-hike bets have gone too far.
Following that Beige Book and this morning's data that showed the Final March CPI print for the Eurozone up 7.4% YoY, we expect the market to lean into inflation and rate hike comments from Fed Chair Jerome Powell and European Central Bank President Christine Lagarde at an International Monetary Fund event later today, and the Bank of England Governor Andrew Bailey, who is speaking at a different event.
As companies have taken quick steps to extract themselves from doing business in Russia, SAP SE (SAP) being the latest to shutter business in Russia after 30 years, the race for countries to become energy independent from Russia is proving to be more difficult. This ultimately should be a boon for energy companies, especially U.S. Natural Gas providers but as we discuss below, this transition will take time and a lot of planning.
Data Download
International Economy
Final March YoY Eurozone CPI printed at 7.4%, which despite being revised down 0.1% from initial estimates is the highest this figure has ever been in the trade block’s history. This record high was realized by? A 44% YoY rise in energy prices due to the Russian invasion and ongoing war with Ukraine.
Preliminary (Flash) April Eurozone Consumer Confidence fell to -22.7, lower than both the expected decline to -20 and significantly lower than March’s -11.6 reading.
Germany announced it will cut Russian oil purchases in half by this summer and cease buying oil from the country by the end of 2022. Russia currently accounts for approximately 35% of German oil imports and 55% of German natural gas imports. The country has fast-tracked the development of two Liquid Natural Gas (LNG) terminals and hopes to have them operational within two years, pledging to work at “Tesla speed” to get the project completed. It is estimated that the terminals will help offset approximately 1/3 of German natural gas demand so there is clearly more work to be done before the country can claim energy independence from Russia, at least.
Domestic Economy
8:30 AM ET will see the release of Weekly Initial & Continuing Jobless Claims with initial claims expected to drop to 178,000 from the previous week’s 185,000 and continuing claims are forecasted to be lower at 1.46 million compared to the previously reported 1.475 million. At the same time, we will also see the April Philadelphia Fed Index update, which looks to track manufacturing activity in the district. Expectations are for a decline to 19.8 from the previously reported 27.4.
Markets
The S&P 500 inched lower yesterday, dropping 0.1%, and the Dow Jones Industrial Average and Russell 2000 moved nicely higher(+0.4%) outperformed in positive territory, while the Nasdaq Composite moved lower as the market digested March quarter results from Netflix (NFLX), which closed 35% lower on the day. Gains were registered in 8 of the 11 S&P 500. Including yesterday’s moves, here’s how the major market indicators stack up thus far in 2022:
Dow Jones Industrial Average: -3.2%
S&P 500: -6.4%
Nasdaq Composite: -14.0%
Russell 2000: -9.2%
Bitcoin (BTC-USD): -11.4%
Ether (ETH-USD): -17.1%
Stocks to Watch
Before trading kicks off for U.S.-listed equities, Alaska Air (ALK), American Airlines (AAL), AT&T (T), AutoNation (AN), Dow (DOW), Nucor (NUE), Philip Morris International (PM), and Union Pacific (UNP) are expected to report their quarterly results.
March quarter results at Tesla (TSLA) easily beat consensus expectations as total production at the EV company reached 305,407 vehicles, up 69% YoY and total deliveries for the quarter hit of 310,048, up 68% YoY. The company also issued an upbeat long-term forecast, shared its plans to “grow our manufacturing capacity as quickly as possible. Over a multi-year horizon, we expect to achieve 50% average annual growth in vehicle deliveries. The rate of growth will depend on our equipment capacity, operational efficiency, and the capacity and stability of the supply chain. Our own factories have been running below capacity for several quarters as supply chain became the main limiting factor, which is likely to continue through the rest of 2022."
By comparison, Alcoa (AA) reported mixed March quarter results with EPS coming in ahead of expectations while revenue for the quarter, which rose 14.7% YoY, came up modestly short of expectations. For the June quarter, based on current prices, Alcoa expects both alumina and aluminum realized third-party prices to be higher than those in the March quarter, with that benefit partly offset by approximately $115 million of higher energy and raw materials costs. Higher shipments sequentially are expected to more than offset remaining cost pressures and other factors.
Spurred on by the 57% YoY increase in revenue, March quarter results at Steel Dynamics (STLD) topped expectations. The company sees market conditions “for domestic steel consumption to continue to be strong this year and into 2023.” In its view, Steel Dynamics sees the automotive, industrial and energy sectors remaining solid steel consumers this year, with demand from the construction sector at the lead.
Semiconductor capital equipment company Lam Research’s (LRCX) results for the March quarter missed both the revenue and EPS mark with the company sharing it is focused on resolving its supply issues as quickly as possible to support strong customer demand. For the June quarter, Lam sees EPS of $6.50-8.00 vs. the $8.23 consensus with revenue in the range of $3.90-$4.5 billion vs. the $4.45 billion consensus.
Rail-based transport company CSX (CSX) delivered March quarter results that topped expectations led by revenue for the quarter that rose 21.3% YoY to $3.41 billion. An overall revenue-per-unit increase of 24% more than offset a 2% decline in volume. The company targets full year double digit revenue and operating income growth, with revenue in the near term to benefit from high coal prices and fuel surcharges.
United Airlines (UAL) reported a modestly larger bottom-line loss for the March quarter with revenue that rose ~135% YoY but still missed the consensus revenue forecast of $7.68 billion for the quarter. On a positive note, the company shared it sees the current quarter being a “historic inflection point” for its business and targets being profitable for all of 2022.
IPOs
No companies are expected to price their IPO offerings this week. Readers looking to dig more into the upcoming IPO calendar should visit Nasdaq’s Latest & Upcoming IPOs page.
After Today’s Market Close
Boston Beer (SAM), CalAmp (CAMP), PPG Industries (PPG) and Snap (SNAP) are among the companies slated to report their latest quarterly results. Investors should remain on watch for companies that pre-announce their March quarter results. Those looking for more on which companies are reporting when, head on over to Nasdaq’s Earnings Calendar.
On the Horizon
Friday, April 22
Japan: CPI – March
Japan: Markit/JMMA PMI Manufacturing (Preliminary) – April
UK: Retail Sales – March
Eurozone: S&P Global Manufacturing & Services PMI (Preliminary) – April
UK: CIPS Manufacturing & Services PMI (Preliminary) - April
US: S&P Global Manufacturing & Services PMI (Preliminary) – April
Thought for the Day
“Where's your will to be weird?” ~ Jim Morrison
Disclosures
Tesla (TSLA) is a constituent of the Tematica BITA Cleaner Living Index
Tesla (TSLA) is a constituent of the Tematica BITA Cleaner Living Sustainability Screened Index
AT&T (T), Philip Morris International (PM) are constituents of the Tematica Research Thematic Dividend All-Stars Index
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Nasdaq Composite: -14.0% Russell 2000: -9.2% Bitcoin (BTC-USD): -11.4% Ether (ETH-USD): -17.1% Stocks to Watch Before trading kicks off for U.S.-listed equities, Alaska Air (ALK), American Airlines (AAL), AT&T (T), AutoNation (AN), Dow (DOW), Nucor (NUE), Philip Morris International (PM), and Union Pacific (UNP) are expected to report their quarterly results. At the same time, however, we are starting to see firms including Bank of America (BAC) and Nomura Asset Management voice the view that the panic over inflation and rate-hike bets have gone too far. Data Download International Economy Final March YoY Eurozone CPI printed at 7.4%, which despite being revised down 0.1% from initial estimates is the highest this figure has ever been in the trade block’s history.
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Nasdaq Composite: -14.0% Russell 2000: -9.2% Bitcoin (BTC-USD): -11.4% Ether (ETH-USD): -17.1% Stocks to Watch Before trading kicks off for U.S.-listed equities, Alaska Air (ALK), American Airlines (AAL), AT&T (T), AutoNation (AN), Dow (DOW), Nucor (NUE), Philip Morris International (PM), and Union Pacific (UNP) are expected to report their quarterly results. Domestic Economy 8:30 AM ET will see the release of Weekly Initial & Continuing Jobless Claims with initial claims expected to drop to 178,000 from the previous week’s 185,000 and continuing claims are forecasted to be lower at 1.46 million compared to the previously reported 1.475 million. Markets The S&P 500 inched lower yesterday, dropping 0.1%, and the Dow Jones Industrial Average and Russell 2000 moved nicely higher(+0.4%) outperformed in positive territory, while the Nasdaq Composite moved lower as the market digested March quarter results from Netflix (NFLX), which closed 35% lower on the day.
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Nasdaq Composite: -14.0% Russell 2000: -9.2% Bitcoin (BTC-USD): -11.4% Ether (ETH-USD): -17.1% Stocks to Watch Before trading kicks off for U.S.-listed equities, Alaska Air (ALK), American Airlines (AAL), AT&T (T), AutoNation (AN), Dow (DOW), Nucor (NUE), Philip Morris International (PM), and Union Pacific (UNP) are expected to report their quarterly results. By comparison, Alcoa (AA) reported mixed March quarter results with EPS coming in ahead of expectations while revenue for the quarter, which rose 14.7% YoY, came up modestly short of expectations. Rail-based transport company CSX (CSX) delivered March quarter results that topped expectations led by revenue for the quarter that rose 21.3% YoY to $3.41 billion.
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Nasdaq Composite: -14.0% Russell 2000: -9.2% Bitcoin (BTC-USD): -11.4% Ether (ETH-USD): -17.1% Stocks to Watch Before trading kicks off for U.S.-listed equities, Alaska Air (ALK), American Airlines (AAL), AT&T (T), AutoNation (AN), Dow (DOW), Nucor (NUE), Philip Morris International (PM), and Union Pacific (UNP) are expected to report their quarterly results. It is estimated that the terminals will help offset approximately 1/3 of German natural gas demand so there is clearly more work to be done before the country can claim energy independence from Russia, at least. Markets The S&P 500 inched lower yesterday, dropping 0.1%, and the Dow Jones Industrial Average and Russell 2000 moved nicely higher(+0.4%) outperformed in positive territory, while the Nasdaq Composite moved lower as the market digested March quarter results from Netflix (NFLX), which closed 35% lower on the day.
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3618.0
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2022-04-21 00:00:00 UTC
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American Airlines Expects To Be Profitable In Q2 Based On Current Fuel Price Assumptions
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AAL
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https://www.nasdaq.com/articles/american-airlines-expects-to-be-profitable-in-q2-based-on-current-fuel-price-assumptions
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(RTTNews) - While reporting quarterly results on Thursday, American Airlines Group Inc. (AAL) said, based on current trends, the company expects second-quarter capacity to be approximately 92% to 94% of what it was in the second quarter of 2019. American expects second-quarter total revenue to be 6% to 8% higher than the second quarter of 2019. The company expects to be profitable in the second quarter based on the current demand trends and fuel price forecast.
The airline noted that it produced record sales in March, and it was the first month since the onset of the pandemic that total revenue was above 2019 levels. The company was profitable excluding net special items in March.
First quarter net loss was $1.64 billion, or $2.52 per share compared to a loss of $1.25 billion, or $1.97 per share, prior year. Excluding items, American Airlines posted an adjusted loss of $1.51 billion or $2.32 per share for the period. Analysts on average had expected the company to post a loss of $2.40 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.
The company's revenue for the quarter rose 121.9% to $8.90 billion from $4.01 billion last year. This included passenger revenues of $7.8 billion, and cargo revenues of $364 million. The company noted that its first-quarter revenue represented a recovery to 84% of comparable period revenue in 2019. Analysts on average had estimated $8.83 billion in revenue.
American ended the first quarter with $15.5 billion of total available liquidity. The company said it remains on track to reduce overall debt levels by $15 billion by the end of 2025.
"Our priorities for this year are clear: Run a reliable operation and return to profitability," said CEO Robert Isom.
Shares of American Airlines were up 10% in pre-market trade on Thursday.
The views and 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) - While reporting quarterly results on Thursday, American Airlines Group Inc. (AAL) said, based on current trends, the company expects second-quarter capacity to be approximately 92% to 94% of what it was in the second quarter of 2019. The company expects to be profitable in the second quarter based on the current demand trends and fuel price forecast. The airline noted that it produced record sales in March, and it was the first month since the onset of the pandemic that total revenue was above 2019 levels.
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(RTTNews) - While reporting quarterly results on Thursday, American Airlines Group Inc. (AAL) said, based on current trends, the company expects second-quarter capacity to be approximately 92% to 94% of what it was in the second quarter of 2019. The company was profitable excluding net special items in March. First quarter net loss was $1.64 billion, or $2.52 per share compared to a loss of $1.25 billion, or $1.97 per share, prior year.
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(RTTNews) - While reporting quarterly results on Thursday, American Airlines Group Inc. (AAL) said, based on current trends, the company expects second-quarter capacity to be approximately 92% to 94% of what it was in the second quarter of 2019. First quarter net loss was $1.64 billion, or $2.52 per share compared to a loss of $1.25 billion, or $1.97 per share, prior year. The company's revenue for the quarter rose 121.9% to $8.90 billion from $4.01 billion last year.
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(RTTNews) - While reporting quarterly results on Thursday, American Airlines Group Inc. (AAL) said, based on current trends, the company expects second-quarter capacity to be approximately 92% to 94% of what it was in the second quarter of 2019. First quarter net loss was $1.64 billion, or $2.52 per share compared to a loss of $1.25 billion, or $1.97 per share, prior year. Excluding items, American Airlines posted an adjusted loss of $1.51 billion or $2.32 per share for the period.
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3619.0
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2022-04-21 00:00:00 UTC
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American Airlines Group Q1 22 Earnings Conference Call At 8:30 AM ET
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-q1-22-earnings-conference-call-at-8%3A30-am-et
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on April 21, 2022, to discuss Q1 22 earnings results.
To access the live webcast, log on to https://americanairlines.gcs-web.com/events/upcoming-events
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on April 21, 2022, to discuss Q1 22 earnings results. To access the live webcast, log on to https://americanairlines.gcs-web.com/events/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on April 21, 2022, to discuss Q1 22 earnings results. To access the live webcast, log on to https://americanairlines.gcs-web.com/events/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on April 21, 2022, to discuss Q1 22 earnings results. To access the live webcast, log on to https://americanairlines.gcs-web.com/events/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on April 21, 2022, to discuss Q1 22 earnings results. To access the live webcast, log on to https://americanairlines.gcs-web.com/events/upcoming-events The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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3620.0
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2022-04-21 00:00:00 UTC
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American Airlines reports smaller loss as pickup in travel offsets Omicron blip
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AAL
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https://www.nasdaq.com/articles/american-airlines-reports-smaller-loss-as-pickup-in-travel-offsets-omicron-blip
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Adds details from press statement, background
April 21 (Reuters) - American Airlines Group Inc AAL.O reported a smaller adjusted first-quarter loss on Thursday, as a strong pickup in travel in March helped offset a blip in January caused by the Omicron variant of COVID-19, sending its shares up 8.5% before the bell.
The airline and its subsidiaries had to call off more than 3,000 flights in January, according to flight-tracking service FlightAware, as the industry struggled with mass cancellations due to adverse weather and an outbreak of the highly infectious Omicron variant.
The first-quarter was impacted by high fuel costs due to the Ukraine war and persistent pilot and ground staff shortages.
Airlines, however, have cut capacity and a surge in air travel demand has also allowed them to pass on high fuel costs to consumers.
Last week, Delta Air Lines Inc DAL.N said robust consumer demand led to a "solid" profit in March, prompting the Atlanta-based airline to forecast a "meaningful" profit this year.
On Thursday, American Airlines reported an adjusted loss of $1.51 billion, or $2.32 per share, for the quarter ended March 31, compared with a loss of $2.74 billion, or $4.32 per share, a year earlier.
Operating revenue rose to about $8.9 billion from about $4 billion a year earlier.
(Reporting by Abhijith Ganapavaram in Bengaluru; Editing by Vinay Dwivedi)
((Abhijith.G@thomsonreuters.com;; +91-9019785574;))
The views and 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 details from press statement, background April 21 (Reuters) - American Airlines Group Inc AAL.O reported a smaller adjusted first-quarter loss on Thursday, as a strong pickup in travel in March helped offset a blip in January caused by the Omicron variant of COVID-19, sending its shares up 8.5% before the bell. The airline and its subsidiaries had to call off more than 3,000 flights in January, according to flight-tracking service FlightAware, as the industry struggled with mass cancellations due to adverse weather and an outbreak of the highly infectious Omicron variant. Airlines, however, have cut capacity and a surge in air travel demand has also allowed them to pass on high fuel costs to consumers.
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Adds details from press statement, background April 21 (Reuters) - American Airlines Group Inc AAL.O reported a smaller adjusted first-quarter loss on Thursday, as a strong pickup in travel in March helped offset a blip in January caused by the Omicron variant of COVID-19, sending its shares up 8.5% before the bell. Airlines, however, have cut capacity and a surge in air travel demand has also allowed them to pass on high fuel costs to consumers. On Thursday, American Airlines reported an adjusted loss of $1.51 billion, or $2.32 per share, for the quarter ended March 31, compared with a loss of $2.74 billion, or $4.32 per share, a year earlier.
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Adds details from press statement, background April 21 (Reuters) - American Airlines Group Inc AAL.O reported a smaller adjusted first-quarter loss on Thursday, as a strong pickup in travel in March helped offset a blip in January caused by the Omicron variant of COVID-19, sending its shares up 8.5% before the bell. Last week, Delta Air Lines Inc DAL.N said robust consumer demand led to a "solid" profit in March, prompting the Atlanta-based airline to forecast a "meaningful" profit this year. On Thursday, American Airlines reported an adjusted loss of $1.51 billion, or $2.32 per share, for the quarter ended March 31, compared with a loss of $2.74 billion, or $4.32 per share, a year earlier.
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Adds details from press statement, background April 21 (Reuters) - American Airlines Group Inc AAL.O reported a smaller adjusted first-quarter loss on Thursday, as a strong pickup in travel in March helped offset a blip in January caused by the Omicron variant of COVID-19, sending its shares up 8.5% before the bell. The airline and its subsidiaries had to call off more than 3,000 flights in January, according to flight-tracking service FlightAware, as the industry struggled with mass cancellations due to adverse weather and an outbreak of the highly infectious Omicron variant. Airlines, however, have cut capacity and a surge in air travel demand has also allowed them to pass on high fuel costs to consumers.
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3621.0
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2022-04-21 00:00:00 UTC
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METALS-Copper rebounds after miners report sliding production
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AAL
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https://www.nasdaq.com/articles/metals-copper-rebounds-after-miners-report-sliding-production
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nan
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By Eric Onstad
LONDON, April 21 (Reuters) - Copper prices bounced on Thursday after a spate of production problems that threaten to cut supply, including a state of emergency in Peru, the world's second biggest producer.
Benchmark three-month copper CMCU3 on the London Metal Exchange (LME) added 0.4% to $10,261 a tonne by 0930 GMT after two days of losses.
"We've seen several reports this week from some of the major miners that they are struggling with diesel costs, steel costs, input costs in general, making it much more of a challenge to maintain production," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
"If anything, we need an increase in production over the coming years to fulfil some of the aspirations we have regarding the climate and Russian dependency."
Technical signals were also positive as LME copper found support at the 50-day moving average, Hansen added.
Chilean miner Antofagasta ANTO.L on Thursday posted a 24% tumble in first-quarter copper production while Anglo American AAL.L reported a 13% drop.
A day earlier Peru said it would declare a state of emergency near Southern Copper Corp's SCCO.N Cuajone mine in the face of growing protests against mining companies which have halted 20% of national copper output.
* Also boosting metals was a weaker dollar =USD, making greenback-denominated metals cheaper for buyers using other currencies. FRX/
* Copper inventories in LME-approved warehouses continued recent increases on Thursday, rising to 130,500 tonnes for their highest since October, having climbed by 62% over the past four weeks. MCUSTX-TOTAL
* Russian President Vladimir Putin on Wednesday called for structural changes in Russia's metallurgical industry to counter Western sanctions.
* LME aluminium CMAL3 rose 0.4% to $3,283 a tonne and nickel CMNI3 edged up 0.1% to $33,525, but zinc CMZN3 fell 0.4% to $4,402, lead CMPB3 gave up 0.8% to $2,404.50 and tin CMSN3 slipped 0.6% to $42,750.
(Reporting by Eric Onstad Editing by David Goodman)
((eric.onstad@thomsonreuters.com; +44 20 7542 7093; Twitter https://twitter.com/reutersEricO; Reuters Messaging: eric.onstad.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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Chilean miner Antofagasta ANTO.L on Thursday posted a 24% tumble in first-quarter copper production while Anglo American AAL.L reported a 13% drop. By Eric Onstad LONDON, April 21 (Reuters) - Copper prices bounced on Thursday after a spate of production problems that threaten to cut supply, including a state of emergency in Peru, the world's second biggest producer. FRX/ * Copper inventories in LME-approved warehouses continued recent increases on Thursday, rising to 130,500 tonnes for their highest since October, having climbed by 62% over the past four weeks.
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Chilean miner Antofagasta ANTO.L on Thursday posted a 24% tumble in first-quarter copper production while Anglo American AAL.L reported a 13% drop. By Eric Onstad LONDON, April 21 (Reuters) - Copper prices bounced on Thursday after a spate of production problems that threaten to cut supply, including a state of emergency in Peru, the world's second biggest producer. Benchmark three-month copper CMCU3 on the London Metal Exchange (LME) added 0.4% to $10,261 a tonne by 0930 GMT after two days of losses.
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Chilean miner Antofagasta ANTO.L on Thursday posted a 24% tumble in first-quarter copper production while Anglo American AAL.L reported a 13% drop. By Eric Onstad LONDON, April 21 (Reuters) - Copper prices bounced on Thursday after a spate of production problems that threaten to cut supply, including a state of emergency in Peru, the world's second biggest producer. "We've seen several reports this week from some of the major miners that they are struggling with diesel costs, steel costs, input costs in general, making it much more of a challenge to maintain production," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
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Chilean miner Antofagasta ANTO.L on Thursday posted a 24% tumble in first-quarter copper production while Anglo American AAL.L reported a 13% drop. By Eric Onstad LONDON, April 21 (Reuters) - Copper prices bounced on Thursday after a spate of production problems that threaten to cut supply, including a state of emergency in Peru, the world's second biggest producer. Benchmark three-month copper CMCU3 on the London Metal Exchange (LME) added 0.4% to $10,261 a tonne by 0930 GMT after two days of losses.
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3622.0
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2022-04-21 00:00:00 UTC
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Top Stock Market News For Today April 21, 2022
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https://www.nasdaq.com/articles/top-stock-market-news-for-today-april-21-2022
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Stock Market Futures Gain As More Positive Earnings Roll In
U.S. stock futures are on the rise following yesterday’s mixed session. The tech-heavy Nasdaq, in particular, is seeing somewhat of a recovery rally following its notable 1.22% drop during the previous session. Overall, it appears that the stock market remains volatile as investors continue to digest the current batch of earnings. Even with positive earnings, broad-based headwinds continue to plague companies across the board. This could, arguably, weigh in on outlooks for the short-to-mid-term.
Providing an overview of all this is Deepak Puri, Deutsche Bank’s (NYSE: DB) wealth management chief investment officer. Puri starts by saying, “The big question is whether the earnings can really sustain this kind of a macro backdrop of slower growth and [tighter] Fed policy.” He continues, “It seems certain companies can — historically that’s been the case. What’s different this time is really the trifecta, which is higher costs of capital, quantitative tightening, plus a lack of … a big fiscal stimulus.”
While this may seem daunting, Bank of America (NYSE: BAC) CEO Brian Moynihan did recently note that consumer spending remains strong. In his words, “They are a very strong force and you can see them very healthy. Their loan balances are down, they have plenty of borrowing capacity and they have plenty of spending capacity.” As investors look to make sense of all this, there remains plenty of stock market earnings news to consider today. As of 5:25 a.m. ET, the Dow, S&P 500, and Nasdaq futures are trading higher by 0.58%, 0.77%, and 1.14% respectively.
Tesla Rallies Following Stellar First-Quarter Earnings Report
Tesla (NASDAQ: TSLA) is among the top head turners in the stock market today. Notably, this is thanks to the company revealing its latest quarterly financials. In it, Tesla seems to be seeing green across the board. For starters, the company is looking at an earnings per share of $3.22. For reference, this handily beats Wall Street estimates of $2.26. Moreover, the electric vehicle (EV) titan raked in a total revenue of $18.76 billion for the quarter, also above consensus forecasts of $17.8 billion.
Going into the specifics, Tesla’s strong momentum on the automotive sales front is likely to thank for this stellar performance. For the quarter, the company’s automotive revenue is $16.86 billion. This translates to a whopping 87% year-over-year increase. According to Tesla, its automotive gross margins soared to 32.9%. By and large, all of this comes as no surprise seeing as Tesla continues bolstering its manufacturing capacities worldwide. In fact, just earlier this month, the company posted its second consecutive quarter with record deliveries. For a sense of scale, Tesla’s quarterly deliveries for Q1 2022 are currently at 310,048 units.
Sure, CEO Elon Musk may be making headlines for his current bid to take over Twitter (NYSE: TWTR). But Tesla does not seem to be slowing down in the least bit. Over the past month, the company celebrated the opening of two new mega factories. These would be its Giga Berlin and Giga Texas facilities. Despite inflationary and supply chain pressures, Tesla is working hard to localize production, optimize its operations, and speed up distribution. As a result of all this, I could see TSLA stock making headlines in the stock market today.
Source: TradingView
[Read More] Good Stocks To Buy Right Now? 5 Semiconductor Stocks For Your Watchlist
United Airlines Expects 2022 Return To Profit As Flight Ticket Prices Soar
At the same time, United Airlines (NASDAQ: UAL) seems to be taking off amongst its airline industry peers today. For the most part, this comes after United provided an upbeat outlook for the current fiscal year. Before going into that, a quick look at the company’s financials for the quarter. United posted a quarterly loss of $4.24 per share, below consensus forecasts of a $4.22 loss. Additionally, United’s total revenue for the quarter is currently at $7.57 billion. This too is just shy of analyst estimates of $7.68 billion.
Despite the seemingly lackluster results, United’s recovery from its pandemic era should not be overlooked. The company’s total revenue is up by over 135% year-over-year. More importantly, United is currently expecting to turn a profit in 2022. The company cites immense momentum across business travel and leisure bookings. In the words of CEO Scott Kirby, “I’ve never seen in my career, and I’ve been in this industry a long time … such a hockey stick increase of demand.” For the current quarter, United is guiding for a 10% operating margin and its highest quarterly sales to date. As such, it is no wonder that UAL stock is taking the lead among the top airline stocks now.
Source: TradingView
[Read More] Most Active Stocks To Buy Today? 3 Tech Stocks In Focus
Procter & Gamble Beat Earnings Forecasts; Hikes Prices To Combat Inflation
In other earnings-related news, Procter & Gamble (NYSE: PG) is also in focus after posting commendable quarterly results. Diving in, the company saw earnings of $1.33 per share on revenue of $19.38 billion. To put things into perspective, consensus analyst expectations stand at $1.29 and $18.73 billion respectively. While PG’s margins continue to feel the pinch from rising commodity and freight costs, the company is adapting accordingly. It is doing so via a combination of product price hikes and productivity savings.
On the operational side of things, PG is also seeing consistent growth across its core product segments. Firstly, both its fabric & home-care and baby, feminine & family-care divisions saw organic sales growth (OSG) of 10%. In particular, its Tide brand detergent is looking at a double-digit increase in sales. Secondly, the company’s grooming segment, covering its Gillette razors, saw OSG of 8%. Thirdly, PG’s beauty division is also up by 3% in this respect.
Looking forward, PG also seems to be confident regarding its ability to navigate these challenging times. Namely, the company is raising its revenue growth forecast to a range of 4% to 5%. This would mark a notable increase from its previous outlook of a 3% to 4% increase. Seeing as PG continues to power forward, PG stock could be in focus at today’s stock market open.
Source: TradingView
[Read More] Best Stocks To Invest In Right Now? 3 Consumer Staples Stocks To Know
Notable Stock Market Earnings To Consider Today
Not forgetting, there are also plenty of other earnings on tap today. The likes of which range from more airline firms to cyclical, energy industry, and even tech names. In the pre-market, we have American Airlines (NASDAQ: AAL), AT&T (NYSE: T), Nucor (NYSE: NUE), Freeport McMoRan (NYSE: FCX), and NextEra Energy (NYSE: NEE).
Alternatively, things are leaning more towards the tech side after today’s closing bell. This is apparent as Snap (NYSE: SNAP) and Qualtrics (NASDAQ: XM) take center stage. Aside from that, Intuitive Surgical (NASDAQ: ISRG), PPG Industries (NYSE: PPG), and Boston Beer (NYSE: SAM) are also hosting their earnings calls. All in all, it seems like investors have another jam-packed day of earnings to look ahead to.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the pre-market, we have American Airlines (NASDAQ: AAL), AT&T (NYSE: T), Nucor (NYSE: NUE), Freeport McMoRan (NYSE: FCX), and NextEra Energy (NYSE: NEE). Providing an overview of all this is Deepak Puri, Deutsche Bank’s (NYSE: DB) wealth management chief investment officer. Puri starts by saying, “The big question is whether the earnings can really sustain this kind of a macro backdrop of slower growth and [tighter] Fed policy.” He continues, “It seems certain companies can — historically that’s been the case.
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In the pre-market, we have American Airlines (NASDAQ: AAL), AT&T (NYSE: T), Nucor (NYSE: NUE), Freeport McMoRan (NYSE: FCX), and NextEra Energy (NYSE: NEE). 5 Semiconductor Stocks For Your Watchlist United Airlines Expects 2022 Return To Profit As Flight Ticket Prices Soar At the same time, United Airlines (NASDAQ: UAL) seems to be taking off amongst its airline industry peers today. 3 Tech Stocks In Focus Procter & Gamble Beat Earnings Forecasts; Hikes Prices To Combat Inflation In other earnings-related news, Procter & Gamble (NYSE: PG) is also in focus after posting commendable quarterly results.
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In the pre-market, we have American Airlines (NASDAQ: AAL), AT&T (NYSE: T), Nucor (NYSE: NUE), Freeport McMoRan (NYSE: FCX), and NextEra Energy (NYSE: NEE). 5 Semiconductor Stocks For Your Watchlist United Airlines Expects 2022 Return To Profit As Flight Ticket Prices Soar At the same time, United Airlines (NASDAQ: UAL) seems to be taking off amongst its airline industry peers today. 3 Tech Stocks In Focus Procter & Gamble Beat Earnings Forecasts; Hikes Prices To Combat Inflation In other earnings-related news, Procter & Gamble (NYSE: PG) is also in focus after posting commendable quarterly results.
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In the pre-market, we have American Airlines (NASDAQ: AAL), AT&T (NYSE: T), Nucor (NYSE: NUE), Freeport McMoRan (NYSE: FCX), and NextEra Energy (NYSE: NEE). As a result of all this, I could see TSLA stock making headlines in the stock market today. Seeing as PG continues to power forward, PG stock could be in focus at today’s stock market open.
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3623.0
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2022-04-21 00:00:00 UTC
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European shares extend gains on upbeat earnings; Anglo American drags miners lower
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https://www.nasdaq.com/articles/european-shares-extend-gains-on-upbeat-earnings-anglo-american-drags-miners-lower
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By Anisha Sircar
April 21 (Reuters) - European shares rose on Thursday following a series of positive earnings updates, while miners dropped more than 2% as Anglo American slumped after slashing its production outlook.
The pan-European STOXX 600 .STOXX firmed 0.5%, rising for a second straight day, with construction .SXOP and travel .SXTP shares in the lead.
Miners .SXPP dropped 2.3%, leading losses on the benchmark index for a second straight day after Anglo American AAL.L said its first-quarter production fell 10% year-on-year and lowered its full-year forecast.
Anglo American shares fell 6.7%.
Nestle NESN.S gained 1.3% after the food group confirmed its targets for the year as price increases helped quarterly sales rise more than expected, while engineering firm ABB ABBN.S climbed 4.7% on a sharp rise in orders during the first quarter.
"Stocks are higher and confidence in European markets has broadly been moving up ... despite higher yields, the war in Ukraine, and speculation about higher interest rates," said David Madden, market analyst at Equiti Capital.
The STOXX 600 is set to end the week about 0.6% higher, on track to erase last week's losses of 0.3%, with banks .SX7P gaining the most on the week following expectations of a looming interest rate hike from the European Central Bank (ECB).
ECB vice president Luis de Guindos said the central bank should end its asset purchase programme in July and could raise rates that same month, in September or later, according to an interview.
Money markets are now pricing in a 20 basis point rise by July and more than 70 basis points of cumulative increases by the end of 2022. FRX/IRPR
France's CAC 40 .FCHI led gains in the region, rising 1.6%. President Emmanuel Macron cleared a major hurdle ahead of Sunday's runoff vote with a combative performance in a TV debate against Marine Le Pen that convinced most viewers, a poll said.
In other earnings updates, Akzo Nobel AKZO.AS advanced 5.5% on strong earnings helped by higher pricing, while Italy's Saipem SPMI.MI leaped 10.0% after its adjusted core earnings rose 65% in the first quarter to beat expectations.
Franco-German lab supplies group Sartorius AG SATG.DE jumped 4.6% after confirming its 2022 outlook.
(Reporting by Anisha Sircar in Bengaluru; Editing by Shounak Dasgupta)
((Anisha.Sircar@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Miners .SXPP dropped 2.3%, leading losses on the benchmark index for a second straight day after Anglo American AAL.L said its first-quarter production fell 10% year-on-year and lowered its full-year forecast. By Anisha Sircar April 21 (Reuters) - European shares rose on Thursday following a series of positive earnings updates, while miners dropped more than 2% as Anglo American slumped after slashing its production outlook. ECB vice president Luis de Guindos said the central bank should end its asset purchase programme in July and could raise rates that same month, in September or later, according to an interview.
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Miners .SXPP dropped 2.3%, leading losses on the benchmark index for a second straight day after Anglo American AAL.L said its first-quarter production fell 10% year-on-year and lowered its full-year forecast. Nestle NESN.S gained 1.3% after the food group confirmed its targets for the year as price increases helped quarterly sales rise more than expected, while engineering firm ABB ABBN.S climbed 4.7% on a sharp rise in orders during the first quarter. The STOXX 600 is set to end the week about 0.6% higher, on track to erase last week's losses of 0.3%, with banks .SX7P gaining the most on the week following expectations of a looming interest rate hike from the European Central Bank (ECB).
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Miners .SXPP dropped 2.3%, leading losses on the benchmark index for a second straight day after Anglo American AAL.L said its first-quarter production fell 10% year-on-year and lowered its full-year forecast. By Anisha Sircar April 21 (Reuters) - European shares rose on Thursday following a series of positive earnings updates, while miners dropped more than 2% as Anglo American slumped after slashing its production outlook. Nestle NESN.S gained 1.3% after the food group confirmed its targets for the year as price increases helped quarterly sales rise more than expected, while engineering firm ABB ABBN.S climbed 4.7% on a sharp rise in orders during the first quarter.
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Miners .SXPP dropped 2.3%, leading losses on the benchmark index for a second straight day after Anglo American AAL.L said its first-quarter production fell 10% year-on-year and lowered its full-year forecast. The pan-European STOXX 600 .STOXX firmed 0.5%, rising for a second straight day, with construction .SXOP and travel .SXTP shares in the lead. Nestle NESN.S gained 1.3% after the food group confirmed its targets for the year as price increases helped quarterly sales rise more than expected, while engineering firm ABB ABBN.S climbed 4.7% on a sharp rise in orders during the first quarter.
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3624.0
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2022-04-21 00:00:00 UTC
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European shares steady in choppy trade; Anglo American drags miners lower
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https://www.nasdaq.com/articles/european-shares-steady-in-choppy-trade-anglo-american-drags-miners-lower
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
April 21 (Reuters) - European shares steadied on Thursday in choppy trade following a series of positive earnings updates, while miners dropped more than 2% as Anglo American slumped after slashing its production outlook.
The pan-European STOXX 600 .STOXX was little changed as of 0723 GMT.
Miners .SXPP dropped 2.4%, leading losses on the benchmark for a second straight day after Anglo American AAL.L said its first-quarter production fell 10% year on year and lowered its full-year forecast.
Miner Anglo American's shares fell 6.1%.
Nestle NESN.S gained 1.6% after the food group confirmed its targets for the year as price increases helped quarterly organic sales rise more than expected.
Engineering and technology firm ABB ABBN.S climbed 3.8% after posting a sharp rise in orders during the first quarter.
Meanwhile, ECB vice-president Luis de Guindos said the European Central Bank should end its asset purchase programme in July and could raise rates that same month, in September or later, according to an interview published Thursday.
(Reporting by Anisha Sircar in Bengaluru; Editing by Shounak Dasgupta)
((Anisha.Sircar@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Miners .SXPP dropped 2.4%, leading losses on the benchmark for a second straight day after Anglo American AAL.L said its first-quarter production fell 10% year on year and lowered its full-year forecast. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window April 21 (Reuters) - European shares steadied on Thursday in choppy trade following a series of positive earnings updates, while miners dropped more than 2% as Anglo American slumped after slashing its production outlook. Nestle NESN.S gained 1.6% after the food group confirmed its targets for the year as price increases helped quarterly organic sales rise more than expected.
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Miners .SXPP dropped 2.4%, leading losses on the benchmark for a second straight day after Anglo American AAL.L said its first-quarter production fell 10% year on year and lowered its full-year forecast. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window April 21 (Reuters) - European shares steadied on Thursday in choppy trade following a series of positive earnings updates, while miners dropped more than 2% as Anglo American slumped after slashing its production outlook. Miner Anglo American's shares fell 6.1%.
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Miners .SXPP dropped 2.4%, leading losses on the benchmark for a second straight day after Anglo American AAL.L said its first-quarter production fell 10% year on year and lowered its full-year forecast. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window April 21 (Reuters) - European shares steadied on Thursday in choppy trade following a series of positive earnings updates, while miners dropped more than 2% as Anglo American slumped after slashing its production outlook. (Reporting by Anisha Sircar in Bengaluru; Editing by Shounak Dasgupta) ((Anisha.Sircar@thomsonreuters.com)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Miners .SXPP dropped 2.4%, leading losses on the benchmark for a second straight day after Anglo American AAL.L said its first-quarter production fell 10% year on year and lowered its full-year forecast. The pan-European STOXX 600 .STOXX was little changed as of 0723 GMT. Miner Anglo American's shares fell 6.1%.
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3625.0
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2022-04-21 00:00:00 UTC
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Miner Anglo American lowers output guidance after quarterly drop
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https://www.nasdaq.com/articles/miner-anglo-american-lowers-output-guidance-after-quarterly-drop
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Adds detail
LONDON, April 21 (Reuters) - Global miner Anglo American's AAL.L first-quarter production fell 10% year on year, partly owing to operations running at reduced capacity because of higher rates of COVID-19 infections among workers, it said on Thursday.
The London-listed company also lowered full-year guidance on volumes for metals including platinum, iron ore and metallurgical coal to reflect inflationary price pressure that lifts its costs per unit of production.
Copper production fell 13% to 139,500 tonnes in the first quarter, from 160,300 tonnes in the same period last year, because of lower grades and is expected to reach between 660,000 and 750,000 tonnes for the full year.
Full-year unit cost guidance for copper production rose 5% to $0.147 per pound.
Iron ore production fell by 19% because of high rainfall at its Kumba and Minas-Rio operations, prompting a lowering of full-year guidance to between 60 million and 64 million tonnes from 63 million to 67 million tonnes previously.
Metallurgical coal production decreased by 32% while concentrate metal production from its platinum group metals operations in South Africa slipped by 6%, hit by high rainfall at Mogalakwena. Full-year guidance was lowered to between 3.9 million and 4.3 million ounces, from 4.1 million to 4.5 million ounces previously.
Rough diamond production, however, increased by 25% thanks to less disruption from rainfall in Botswana.
(Reporting by Clara Denina Editing by David Goodman)
((Clara.Denina@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Adds detail LONDON, April 21 (Reuters) - Global miner Anglo American's AAL.L first-quarter production fell 10% year on year, partly owing to operations running at reduced capacity because of higher rates of COVID-19 infections among workers, it said on Thursday. The London-listed company also lowered full-year guidance on volumes for metals including platinum, iron ore and metallurgical coal to reflect inflationary price pressure that lifts its costs per unit of production. Full-year unit cost guidance for copper production rose 5% to $0.147 per pound.
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Adds detail LONDON, April 21 (Reuters) - Global miner Anglo American's AAL.L first-quarter production fell 10% year on year, partly owing to operations running at reduced capacity because of higher rates of COVID-19 infections among workers, it said on Thursday. The London-listed company also lowered full-year guidance on volumes for metals including platinum, iron ore and metallurgical coal to reflect inflationary price pressure that lifts its costs per unit of production. Iron ore production fell by 19% because of high rainfall at its Kumba and Minas-Rio operations, prompting a lowering of full-year guidance to between 60 million and 64 million tonnes from 63 million to 67 million tonnes previously.
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Adds detail LONDON, April 21 (Reuters) - Global miner Anglo American's AAL.L first-quarter production fell 10% year on year, partly owing to operations running at reduced capacity because of higher rates of COVID-19 infections among workers, it said on Thursday. The London-listed company also lowered full-year guidance on volumes for metals including platinum, iron ore and metallurgical coal to reflect inflationary price pressure that lifts its costs per unit of production. Iron ore production fell by 19% because of high rainfall at its Kumba and Minas-Rio operations, prompting a lowering of full-year guidance to between 60 million and 64 million tonnes from 63 million to 67 million tonnes previously.
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Adds detail LONDON, April 21 (Reuters) - Global miner Anglo American's AAL.L first-quarter production fell 10% year on year, partly owing to operations running at reduced capacity because of higher rates of COVID-19 infections among workers, it said on Thursday. The London-listed company also lowered full-year guidance on volumes for metals including platinum, iron ore and metallurgical coal to reflect inflationary price pressure that lifts its costs per unit of production. Copper production fell 13% to 139,500 tonnes in the first quarter, from 160,300 tonnes in the same period last year, because of lower grades and is expected to reach between 660,000 and 750,000 tonnes for the full year.
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3626.0
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2022-04-20 00:00:00 UTC
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Is a Beat in the Cards for Ryder (R) This Earnings Season?
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https://www.nasdaq.com/articles/is-a-beat-in-the-cards-for-ryder-r-this-earnings-season
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Ryder System, Inc. R is slated to release first-quarter 2022 earnings numbers on Apr 27, before market open.
The Zacks Consensus Estimate for the company’s first-quarter earnings has been revised upward marginally to $2.38 in the past 60 days. The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 57.5%.
Let’s take a look at the factors that are expected to have influenced the company’s performance in the to-be-reported quarter.
Ryder System, Inc. Price and EPS Surprise
Ryder System, Inc. price-eps-surprise | Ryder System, Inc. Quote
New business, favorable pricing and higher volumes might have aided the company’s Dedicated Transportation Solutions (DTS) segment revenues. Per the consensus mark, the metric rose 19.3% from the first-quarter 2021 reported figure. The Zacks Consensus Estimate for Supply Chain Solutions (SCS) segment also suggests a 26.3% increase from the prior-year quarter’s reported number.
Per the Zacks Consensus Estimate, total revenues in the Fleet Management Solutions (FMS) segment indicate a rise of 7.7% on a year-over-year basis. The uptick can be attributed to higher rental, ChoiceLease and SelectCare revenues and increased fuel pricing.
A rise in gross capital expenditures (due to higher planned investments in the rental fleet) might have dented R’s first-quarter 2022 results. High fuel costs also might have dented the bottom-line performance.
Earnings Whispers
Our proven Zacks model predicts an earnings beat for Ryder in the first quarter of 2022. This is because the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is precisely the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Ryder has an Earnings ESP of +5.04% as the Most Accurate Estimate is pegged at $2.50, while the Zacks Consensus Estimate is at $2.38. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Ryder carries a Zacks Rank #2.
Highlights of Q4 Earnings
Ryder’s fourth-quarter 2021 earnings (excluding 17 cents from non-recurring items) of $3.52 per share surpassed the Zacks Consensus Estimate of $2.49. The bottom line increased significantly year over year on higher revenues. Total revenues of $2,600 million also outperformed the Zacks Consensus Estimate of $2,462.4 million. The top line increased 17.5% year over year on strong segmental performances.
Other Stocks to Consider
Investors interested in the broader Transportation sector can also consider stocks like United Parcel Service UPS, Southwest Airlines LUV and American Airlines Group AAL, as these stocks too possess the right combination of elements to beat estimates this reporting cycle.
UPS has an Earnings ESP of +1.92% and is a Zacks #3 Ranked stock at present. UPS will release first-quarter 2022 results on Apr 26.
Strong package delivery demand is expected to have aided UPS’ first-quarter 2022 performance. Higher revenue per piece is likely to get reflected in U.S. Domestic Package revenues.
Southwest Airlines has an Earnings ESP of +28.09% and is currently a #3 Ranked player. LUV will release first-quarter 2022 results on Apr 28.
Southwest Airlines expects first-quarter 2022 operating revenues to decline 8-10% from the first quarter of 2019. The company expects to incur a loss in the period.
American Airlines has an Earnings ESP of +3.01% and is a Zacks #3 Ranked stock at present. AAL will release first-quarter 2022 results on Apr 21.
With air-travel demand steadily rebounding, AAL’s passenger revenues are expected to reflect a significant year-over-year increase. The anticipated increase in passenger revenues is likely to have driven the company’s top line in the first quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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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Southwest Airlines Co. (LUV): Free Stock Analysis Report
United Parcel Service, Inc. (UPS): Free Stock Analysis Report
Ryder System, Inc. (R): 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 Investors interested in the broader Transportation sector can also consider stocks like United Parcel Service UPS, Southwest Airlines LUV and American Airlines Group AAL, as these stocks too possess the right combination of elements to beat estimates this reporting cycle. AAL will release first-quarter 2022 results on Apr 21. With air-travel demand steadily rebounding, AAL’s passenger revenues are expected to reflect a significant year-over-year increase.
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Other Stocks to Consider Investors interested in the broader Transportation sector can also consider stocks like United Parcel Service UPS, Southwest Airlines LUV and American Airlines Group AAL, as these stocks too possess the right combination of elements to beat estimates this reporting cycle. American Airlines Group Inc. (AAL): Free Stock Analysis Report AAL will release first-quarter 2022 results on Apr 21.
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Other Stocks to Consider Investors interested in the broader Transportation sector can also consider stocks like United Parcel Service UPS, Southwest Airlines LUV and American Airlines Group AAL, as these stocks too possess the right combination of elements to beat estimates this reporting cycle. AAL will release first-quarter 2022 results on Apr 21. With air-travel demand steadily rebounding, AAL’s passenger revenues are expected to reflect a significant year-over-year increase.
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Other Stocks to Consider Investors interested in the broader Transportation sector can also consider stocks like United Parcel Service UPS, Southwest Airlines LUV and American Airlines Group AAL, as these stocks too possess the right combination of elements to beat estimates this reporting cycle. AAL will release first-quarter 2022 results on Apr 21. With air-travel demand steadily rebounding, AAL’s passenger revenues are expected to reflect a significant year-over-year increase.
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3627.0
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2022-04-20 00:00:00 UTC
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EXCLUSIVE-Boeing tells airlines 787 deliveries to restart second-half 2022 -sources
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AAL
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https://www.nasdaq.com/articles/exclusive-boeing-tells-airlines-787-deliveries-to-restart-second-half-2022-sources
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nan
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By Eric M. Johnson and Tim Hepher
SEATTLE/PARIS, April 20 (Reuters) - Boeing Co BA.N has advised key airlines and parts suppliers that 787 Dreamliner deliveries would resume in the second half of 2022, a crucial landmark for an industry eager for a post-COVID recovery, three people familiar with the matter said.
Boeing's swollen 787 inventory, amassed since it halted deliveries nearly a year ago over structural flaws, has locked up desperately needed cash and cut airline capacity.
Resuming deliveries is also key to Boeing's plans for step-by-step 787 production increases in the coming months - vital to propping up a supply chain that has weathered successive crises.
A once-envisioned delivery target of April has already been pushed back to May with the expectation of further delays, the people said, as Boeing undertakes painstaking inspections and repairs for structural flaws in some 100 of the advanced composite jets, under scrutiny from more assertive U.S. air-safety regulators.
Boeing has stopped making public predictions on when it will win approval to resume deliveries. Boeing pegged the overall cost of the industrial snarl at $5.5 billion.
Two people familiar with the matter said that Boeing has told airlines that deliveries would resume during the second half of this year. One of the people added that a restart during the third quarter of 2022 was realistic. The people and other industry sources cautioned that targets have repeatedly slipped.
A Boeing spokesperson declined to comment, saying the FAA would determine when deliveries resume.
"As we've said, we are taking the time needed to ensure conformance to our exacting specifications," the spokesperson said.
"Safety dictates the timeline," an FAA spokesperson said.
In February, the agency revoked Boeing's ability to self-certify 787 jets.
The FAA spokesperson added that it would retain that authority until the agency is confident that Boeing is building planes that meet its design standards, deliveries are stable and that Boeing "has a robust plan for the re-work that it must perform on a large volume of new 787s in storage."
Investors will be eager for details on the 787 program when Boeing reports earnings on April 27.
The 787 problems have crimped airlines' ability to ramp up capacity and triggered production rate cuts. That has hurt a supply chain already strained by the coronavirus crisis and the nearly two-year safety ban of the 737 MAX after fatal crashes.
Due to 787 delays, American Airlines Group Inc AAL.O in February said it was suspending routes between Seattle and London, Los Angeles and Sydney, and Dallas and Santiago, among other operations changes.
American, which reports quarterly results on Thursday, declined to comment on the Boeing delivery schedule.
A United Airlines UAL.N spokesperson referred to the carrier's comments in January. United told analysts it originally expected to take delivery of as many as eight 787 jets in the first half of 2021, but that target moved to after the summer of 2022 - forcing it to cut capacity.
(Reporting by Eric M. Johnson in Seattle and Tim Hepher in Paris Additional reporting by Rajesh Kumar Singh in Chicago and David Shepardson in Washington)
((Eric.m.johnson@thomsonreuters.com; +1 206 707 1218; Follow me on Twitter @ByEricMJohnson;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Due to 787 delays, American Airlines Group Inc AAL.O in February said it was suspending routes between Seattle and London, Los Angeles and Sydney, and Dallas and Santiago, among other operations changes. By Eric M. Johnson and Tim Hepher SEATTLE/PARIS, April 20 (Reuters) - Boeing Co BA.N has advised key airlines and parts suppliers that 787 Dreamliner deliveries would resume in the second half of 2022, a crucial landmark for an industry eager for a post-COVID recovery, three people familiar with the matter said. Resuming deliveries is also key to Boeing's plans for step-by-step 787 production increases in the coming months - vital to propping up a supply chain that has weathered successive crises.
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Due to 787 delays, American Airlines Group Inc AAL.O in February said it was suspending routes between Seattle and London, Los Angeles and Sydney, and Dallas and Santiago, among other operations changes. By Eric M. Johnson and Tim Hepher SEATTLE/PARIS, April 20 (Reuters) - Boeing Co BA.N has advised key airlines and parts suppliers that 787 Dreamliner deliveries would resume in the second half of 2022, a crucial landmark for an industry eager for a post-COVID recovery, three people familiar with the matter said. Two people familiar with the matter said that Boeing has told airlines that deliveries would resume during the second half of this year.
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Due to 787 delays, American Airlines Group Inc AAL.O in February said it was suspending routes between Seattle and London, Los Angeles and Sydney, and Dallas and Santiago, among other operations changes. By Eric M. Johnson and Tim Hepher SEATTLE/PARIS, April 20 (Reuters) - Boeing Co BA.N has advised key airlines and parts suppliers that 787 Dreamliner deliveries would resume in the second half of 2022, a crucial landmark for an industry eager for a post-COVID recovery, three people familiar with the matter said. Two people familiar with the matter said that Boeing has told airlines that deliveries would resume during the second half of this year.
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Due to 787 delays, American Airlines Group Inc AAL.O in February said it was suspending routes between Seattle and London, Los Angeles and Sydney, and Dallas and Santiago, among other operations changes. By Eric M. Johnson and Tim Hepher SEATTLE/PARIS, April 20 (Reuters) - Boeing Co BA.N has advised key airlines and parts suppliers that 787 Dreamliner deliveries would resume in the second half of 2022, a crucial landmark for an industry eager for a post-COVID recovery, three people familiar with the matter said. A Boeing spokesperson declined to comment, saying the FAA would determine when deliveries resume.
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3628.0
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2022-04-20 00:00:00 UTC
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Is a Beat in Store for Old Dominion (ODFL) in Q1 Earnings?
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AAL
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https://www.nasdaq.com/articles/is-a-beat-in-store-for-old-dominion-odfl-in-q1-earnings
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nan
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nan
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Old Dominion Freight Line ODFL is scheduled to report first-quarter 2022 results on Apr 27, before market open.
The Zacks Consensus Estimate for the company’s first-quarter earnings has been revised upward by 2.2% in the past 60 days to $2.36. The company has an impressive earnings history, having outperformed the Zacks Consensus Estimate in all of the past four quarters. It has a trailing four-quarter earnings surprise of 6.5%, on average.
Let’s see how things are shaping up for this earnings season.
Old Dominion Freight Line, Inc. Price and EPS Surprise
Old Dominion Freight Line, Inc. price-eps-surprise | Old Dominion Freight Line, Inc. Quote
Gradual recovery in the freight environment is anticipated to have aided Old Dominion’s first-quarter performance. This is expected to be reflected in less than truckload (LTL) revenue per hundredweight. The Zacks Consensus Estimate for first-quarter LTL revenue per hundredweight suggests a rise of 16.2% from the year-ago quarter’s reported. The anticipated improvement in LTL revenue per hundredweight is likely to be reflected in LTL services’ revenues, the company’s major revenue-generating segment. Per the consensus estimate, LTL tonnage per day surged 9.2% from the year-ago quarter’s reported figure.
Improvement in operating ratio (operating expenses, as a percentage of revenues) is likely to get reflected in the first-quarter bottom line (driven by higher revenues). The Zacks Consensus Estimate for the operating ratio is pegged at 75% for the quarter to be reported, indicating an improvement from 76% reported in first-quarter 2021. Lower the value of this key measure of efficiency, the better.
Higher operating expenses (due to a rise in costs pertaining to salaries, wages and benefits and an escalation in operating supplies and expenses) and high capital expenditures are likely to have hurt the company’s bottom line.
What Does the Zacks Model Say?
Our proven model conclusively predicts an earnings beat for Old Dominion this time around. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen, which is exactly the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Old Dominion has an Earnings ESP of +0.12% as the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at $2.36. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Old Dominion carries a Zacks Rank #3, currently.
Highlights of Q4 Earnings
Old Dominion Freight Line’s earnings per share of $2.41 outpaced the Zacks Consensus Estimate by 17 cents. The bottom line surged 49.7% year over year. Revenues of $1410.4 million also surpassed the Zacks Consensus Estimate of $1,372.5 million and increased 31.4% year over year.
Other Stocks to Consider
Investors interested in the broader Transportation sector can also consider stocks like United Parcel Service UPS, Southwest Airlines Co. LUV and American Airlines Group AAL, as these stocks also possess the right combination of elements to beat estimates this reporting cycle.
UPS has an Earnings ESP of +1.92% and is a Zacks #3 Ranked stock at present. UPS will release first-quarter 2022 results on Apr 26.
Strong package delivery demand is expected to have aided UPS’ first-quarter 2022 performance. Higher revenue per piece is likely to get reflected in U.S. Domestic Package revenues.
Southwest Airlines has an Earnings ESP of +28.09% and is currently a #3 Ranked player. LUV will release first-quarter 2022 results on Apr 28.
Southwest Airlines expects first-quarter 2022 operating revenues to decline 8-10% from the first quarter of 2019. The company expects to incur a loss in the period.
American Airlines has an Earnings ESP of +3.01% and is a Zacks #3 Ranked stock at present. AAL will release first-quarter 2022 results on Apr 21.
With air-travel demand steadily rebounding, AAL’s passenger revenues are expected to reflect a significant year-over-year increase. The anticipated increase in passenger revenues is likely to have driven the company’s top line in the first quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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
Southwest Airlines Co. (LUV): Free Stock Analysis Report
United Parcel Service, Inc. (UPS): Free Stock Analysis Report
Old Dominion Freight Line, Inc. (ODFL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With air-travel demand steadily rebounding, AAL’s passenger revenues are expected to reflect a significant year-over-year increase. Other Stocks to Consider Investors interested in the broader Transportation sector can also consider stocks like United Parcel Service UPS, Southwest Airlines Co. LUV and American Airlines Group AAL, as these stocks also possess the right combination of elements to beat estimates this reporting cycle. AAL will release first-quarter 2022 results on Apr 21.
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Other Stocks to Consider Investors interested in the broader Transportation sector can also consider stocks like United Parcel Service UPS, Southwest Airlines Co. LUV and American Airlines Group AAL, as these stocks also possess the right combination of elements to beat estimates this reporting cycle. AAL will release first-quarter 2022 results on Apr 21. With air-travel demand steadily rebounding, AAL’s passenger revenues are expected to reflect a significant year-over-year increase.
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Other Stocks to Consider Investors interested in the broader Transportation sector can also consider stocks like United Parcel Service UPS, Southwest Airlines Co. LUV and American Airlines Group AAL, as these stocks also possess the right combination of elements to beat estimates this reporting cycle. AAL will release first-quarter 2022 results on Apr 21. With air-travel demand steadily rebounding, AAL’s passenger revenues are expected to reflect a significant year-over-year increase.
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Other Stocks to Consider Investors interested in the broader Transportation sector can also consider stocks like United Parcel Service UPS, Southwest Airlines Co. LUV and American Airlines Group AAL, as these stocks also possess the right combination of elements to beat estimates this reporting cycle. AAL will release first-quarter 2022 results on Apr 21. With air-travel demand steadily rebounding, AAL’s passenger revenues are expected to reflect a significant year-over-year increase.
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3629.0
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2022-04-20 00:00:00 UTC
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U.S. FAA to make zero tolerance unruly passenger policy permanent
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AAL
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https://www.nasdaq.com/articles/u.s.-faa-to-make-zero-tolerance-unruly-passenger-policy-permanent
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nan
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nan
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adds more from FAA, background on issue
WASHINGTON, April 20 (Reuters) - The Federal Aviation Administration's (FAA) "zero-tolerance policy" for addressing unruly passengers will become permanent even after a court ended transportation mask requirements, the agency said on Wednesday.
Then-FAA Administrator Steve Dickson first imposed the policy in January 2021 and later said it would remain as long as an order was in place requiring masks onboard airplanes. A federal judge on Monday struck the down the 14-month-old transportation mask policy.
"Behaving dangerously on a plane will cost you; that’s a promise,” said Acting FAA Administrator Billy Nolen. "Keeping our zero-tolerance policy will help us continue making progress to prevent and punish this behavior."
Under the policy, the FAA issues fines to passengers for unruly behavior instead of warning letters or counseling.
Since January 2021, the FAA has proposed fines of about $7 million for disruptive passengers.
Two new fines issued earlier this month were the highest yet, including an $81,950 fine for an American Airlines AAL.O passenger on a July flight. It alleged the passenger pushed a "flight attendant aside and tried to open the cabin door."
The FAA added "two flight attendants tried to restrain the passenger, but she repeatedly hit one of the flight attendants on the head. After the passenger was restrained in flex cuffs, she spit at, headbutted, bit and tried to kick the crew and other passengers."
The agency also proposed a $77,272-fine for a Delta DAL.N passenger on a July flight, alleging the passenger "attempted to hug and kiss the passenger seated next to her; walked to the front of the aircraft to try to exit during flight; refused to return to her seat; and bit another passenger multiple times."
The FAA imposed its zero-tolerance mandate when unruly passenger incidents escalated around the time of the Jan. 6, 2021, attack on the U.S. Capitol.
The FAA said since January 2021, there have been a record 7,200 unruly passenger incidents reported - and 70% involved the enforcement of masking rules.
The FAA said it has referred 80 unruly airplane passengers to the FBI for potential criminal prosecution.
(Reporting by David Shepardson, Editing by Franklin Paul and Aurora Ellis)
((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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Two new fines issued earlier this month were the highest yet, including an $81,950 fine for an American Airlines AAL.O passenger on a July flight. Then-FAA Administrator Steve Dickson first imposed the policy in January 2021 and later said it would remain as long as an order was in place requiring masks onboard airplanes. The FAA imposed its zero-tolerance mandate when unruly passenger incidents escalated around the time of the Jan. 6, 2021, attack on the U.S. Capitol.
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Two new fines issued earlier this month were the highest yet, including an $81,950 fine for an American Airlines AAL.O passenger on a July flight. adds more from FAA, background on issue WASHINGTON, April 20 (Reuters) - The Federal Aviation Administration's (FAA) "zero-tolerance policy" for addressing unruly passengers will become permanent even after a court ended transportation mask requirements, the agency said on Wednesday. Under the policy, the FAA issues fines to passengers for unruly behavior instead of warning letters or counseling.
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Two new fines issued earlier this month were the highest yet, including an $81,950 fine for an American Airlines AAL.O passenger on a July flight. adds more from FAA, background on issue WASHINGTON, April 20 (Reuters) - The Federal Aviation Administration's (FAA) "zero-tolerance policy" for addressing unruly passengers will become permanent even after a court ended transportation mask requirements, the agency said on Wednesday. Under the policy, the FAA issues fines to passengers for unruly behavior instead of warning letters or counseling.
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Two new fines issued earlier this month were the highest yet, including an $81,950 fine for an American Airlines AAL.O passenger on a July flight. adds more from FAA, background on issue WASHINGTON, April 20 (Reuters) - The Federal Aviation Administration's (FAA) "zero-tolerance policy" for addressing unruly passengers will become permanent even after a court ended transportation mask requirements, the agency said on Wednesday. Under the policy, the FAA issues fines to passengers for unruly behavior instead of warning letters or counseling.
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3630.0
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2022-04-20 00:00:00 UTC
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Will Volume Softness Mar Norfolk Southern's (NSC) Q1 Earnings?
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AAL
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https://www.nasdaq.com/articles/will-volume-softness-mar-norfolk-southerns-nsc-q1-earnings
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nan
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nan
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Norfolk Southern Corporation NSC is scheduled to report first-quarter 2022 results on Apr 27, before market open.
The Zacks Consensus Estimate for NSC’s first-quarter earnings has been revised downward by 5.2% in the past 60 days. However, the company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 6.1%.
Let’s see how things are shaping up for Norfolk Southern this earnings season.
Norfolk Southern Corporation Price and EPS Surprise
Norfolk Southern Corporation price-eps-surprise | Norfolk Southern Corporation Quote
Factors to Note
Escalating fuel costs due to the Russia-Ukraine war are expected to have dented Norfolk Southern’s bottom line in the first quarter.
Supply chain disruptions and slower network velocity are expected to have weighed on volumes in the first quarter. The Zacks Consensus Estimate for carloads (volumes) in the first quarter indicates a 5.1% decline from the year-ago reported number.
Despite supply chain woes, strong freight market conditions are expected to have boosted revenues in the to-be-reported quarter. The Zacks Consensus Estimate for coal revenues hints at a 14.7% rise from the year-ago reported quarter. The same for intermodal revenues suggests a 14% increase from the first-quarter 2021 reported number. The consensus mark for merchandise revenues shows a 3.2% climb from the year-ago quarter’s reported figure.
Due to an expected increase in revenues, operating ratio (operating expenses as percentage of revenues), a key measure of efficiency, is likely to have improved in the quarter. The Zacks Consensus Estimate for operating ratio stands at 61%, better than 62% reported in the year-ago period. Lower the value of the metric, the better.
What Does the Zacks Model Say?
The proven Zacks model does not conclusively predict an earnings beat for Norfolk Southern this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, this is not the case here, as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Norfolk Southern has an earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.91.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Norfolk Southern carries a Zacks Rank #3.
Highlights of Q4 Earnings
Norfolk Southern's fourth-quarter 2021 earnings of $3.12 per share surpassed the Zacks Consensus Estimate of $3.04. Moreover, the bottom line improved 18.2% year over year despite supply chain disruptions. Railway operating revenues in the quarter under review came in at $2,852 million, outperforming the Zacks Consensus Estimate of $2,789.9 million. The top line increased 10.8% year over year with all key segments, Merchandise, Intermodal and Coal, registering an improvement in revenues.
Stocks to Consider
Investors interested in the broader Transportation sector may consider American Airlines AAL and Expeditors International of Washington EXPD. These companies possess the right combination of elements to beat on earnings in this reporting cycle.
American Airlines has an Earnings ESP of +3.01% and is a Zacks #3 Ranked stock. AAL will release first-quarter 2022 earnings numbers on Apr 21.
American Airlines’ earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 4.4%.
Expeditors has an Earnings ESP of +3.12% and a Zacks Rank #1. EXPD will announce first-quarter 2022 results on May 3.
Expeditors’ earnings also trumped the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 34.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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
Norfolk Southern Corporation (NSC): Free Stock Analysis Report
Expeditors International of Washington, Inc. (EXPD): 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 to Consider Investors interested in the broader Transportation sector may consider American Airlines AAL and Expeditors International of Washington EXPD. AAL will release first-quarter 2022 earnings numbers on Apr 21. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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Stocks to Consider Investors interested in the broader Transportation sector may consider American Airlines AAL and Expeditors International of Washington EXPD. AAL will release first-quarter 2022 earnings numbers on Apr 21. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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Stocks to Consider Investors interested in the broader Transportation sector may consider American Airlines AAL and Expeditors International of Washington EXPD. AAL will release first-quarter 2022 earnings numbers on Apr 21. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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Stocks to Consider Investors interested in the broader Transportation sector may consider American Airlines AAL and Expeditors International of Washington EXPD. AAL will release first-quarter 2022 earnings numbers on Apr 21. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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3631.0
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2022-04-20 00:00:00 UTC
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Why Is Everyone Talking About Delta Air Lines Stock?
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AAL
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https://www.nasdaq.com/articles/why-is-everyone-talking-about-delta-air-lines-stock
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nan
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nan
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Ever since the pandemic hit in 2020, the airline industry has taken a huge blow. Travel halted and flights were canceled as lockdowns were imposed everywhere. The industry had to bear huge losses. But things started improving in late 2021 when lockdowns were lifted and traveling was allowed again in most places. With the summer approaching, airlines are hopeful demand will rise again for domestic and international travel, bringing in higher revenues and profits.
Delta Air Lines (NYSE: DAL) was the talk of the town after its most recent quarterly earnings earnings on April 13 and gave a hint of what the next quarter looks like for the company. Its stock jumped 10% last week, and most airline stocks soared following Delta's earnings. Let's take a look at why.
Image source: Getty Images.
A good quarter for Delta amid the troubled times
Though the COVID-19 pandemic isn't over, travel demand seems to be rising. People are more keen to travel, and even pay a little extra for their vacation plans to be successful, after being stuck at home for more than two years now. According to a Deloitte report, global intent to book an international flight climbed to 23% by June 2021.
For the quarter ended March, Delta reported operating revenue of $8.2 billion, which was 79% restored from the same period in 2019. The airline saw total domestic passenger revenue to be 83% recovered, while international passenger revenue recovered 54% versus the comparable quarter in 2019.
Offices also reopened, reviving both domestic corporate travel, which recovered 50% in the quarter, and international corporate travel, which recovered 35% versus 2019's same quarter levels. The company recorded operating losses in January and February. But demand rose in March with a revenue recovery of 79%. It turned out to be a profitable month with an operating profit margin of 10%.
Hopeful for the future
Delta Air Lines also provided a very hopeful outlook for its next quarter. For the upcoming quarter, management expects revenue recovery to accelerate 93% to 97% from 2019 levels and total passenger capacity to be around 84%. The airline also sees operating profit margin to be in the range of 12% to 14%.
Management believes Delta is more than capable in handling the rising consumer demand and the accelerating return of travel, both domestic and international. The company is working on upgrading its fleet, by taking delivery of its first A321neo aircraft at the end of March, with a total of 26 expected this year. This upgrade aligns with Delta's objective of using at least 6% less fuel per available seat mile this year compared with 2019. In total the airline plans to purchase 155 A321neos through 2027.
In March, in an open letter, a group of airline CEOs urged President Joe Biden to "end the transportation mask mandate and testing requirements for international travelers," as CNN reported.This initiative has been partially approved with the end of the mask mandate but testing requirements are still on. This initiative would make travelers more comfortable and boost travel demand. Delta's CEO, along with executives from Southwest Airlines, American Airlines, United Airlines and many others, signed the letter.
Is Delta a good stock to buy now?
The airline saw its adjusted operating expense rise by 11% sequentially to $9 billion in the quarter driven by higher fuel prices. But what's impressive about Delta is amid all the challenges, the company worked on reducing its debt. During the most recent quarter, it generated free cash flow of $197 million to pay off some of its debt. At the end of the quarter, it had adjusted net debt of $21 billion, with $12.8 billion in liquidity (that included cash and cash equivalents, short-term investments, and undrawn revolving credit facilities).
CFO Dan Janki stated, "Reducing debt is our top financial priority as we target investment-grade metrics and $15 billion of adjusted net debt by the end of 2024."
Airline stocks still might look a bit risky now with the ongoing pandemic and geopolitical tensions surrounding Russia's invasion of Ukraine. But once troubled times ends, air travel demand will likely return to normal, driving revenue and profits for the airline industry. This could in turn help airline stocks skyrocket. Wall Street has hopes for Delta Air Lines, which is why analysts see upsides of 25% for the stock in the next 12 months.
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Sushree Mohanty has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines 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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With the summer approaching, airlines are hopeful demand will rise again for domestic and international travel, bringing in higher revenues and profits. Management believes Delta is more than capable in handling the rising consumer demand and the accelerating return of travel, both domestic and international. But once troubled times ends, air travel demand will likely return to normal, driving revenue and profits for the airline industry.
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For the quarter ended March, Delta reported operating revenue of $8.2 billion, which was 79% restored from the same period in 2019. The airline saw total domestic passenger revenue to be 83% recovered, while international passenger revenue recovered 54% versus the comparable quarter in 2019. Offices also reopened, reviving both domestic corporate travel, which recovered 50% in the quarter, and international corporate travel, which recovered 35% versus 2019's same quarter levels.
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Its stock jumped 10% last week, and most airline stocks soared following Delta's earnings. Offices also reopened, reviving both domestic corporate travel, which recovered 50% in the quarter, and international corporate travel, which recovered 35% versus 2019's same quarter levels. But once troubled times ends, air travel demand will likely return to normal, driving revenue and profits for the airline industry.
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With the summer approaching, airlines are hopeful demand will rise again for domestic and international travel, bringing in higher revenues and profits. But once troubled times ends, air travel demand will likely return to normal, driving revenue and profits for the airline industry. The Motley Fool recommends Delta Air Lines and Southwest Airlines.
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3632.0
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2022-04-20 00:00:00 UTC
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Noteworthy Wednesday Option Activity: THC, SNOW, AAL
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AAL
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity%3A-thc-snow-aal
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nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Tenet Healthcare Corp. (Symbol: THC), where a total volume of 5,690 contracts has been traded thus far today, a contract volume which is representative of approximately 569,000 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 52.7% of THC's average daily trading volume over the past month, of 1.1 million shares. Particularly high volume was seen for the $95 strike call option expiring May 20, 2022, with 1,763 contracts trading so far today, representing approximately 176,300 underlying shares of THC. Below is a chart showing THC's trailing twelve month trading history, with the $95 strike highlighted in orange:
Snowflake Inc (Symbol: SNOW) saw options trading volume of 26,997 contracts, representing approximately 2.7 million underlying shares or approximately 51.6% of SNOW's average daily trading volume over the past month, of 5.2 million shares. Particularly high volume was seen for the $170 strike put option expiring April 22, 2022, with 3,890 contracts trading so far today, representing approximately 389,000 underlying shares of SNOW. Below is a chart showing SNOW's trailing twelve month trading history, with the $170 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 190,403 contracts, representing approximately 19.0 million underlying shares or approximately 51.3% of AAL's average daily trading volume over the past month, of 37.1 million shares. Particularly high volume was seen for the $20 strike call option expiring April 22, 2022, with 26,397 contracts trading so far today, representing approximately 2.6 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $20 strike highlighted in orange:
For the various different available expirations for THC options, SNOW options, or AAL options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
The views and 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 $20 strike call option expiring April 22, 2022, with 26,397 contracts trading so far today, representing approximately 2.6 million underlying shares of AAL. Below is a chart showing SNOW's trailing twelve month trading history, with the $170 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 190,403 contracts, representing approximately 19.0 million underlying shares or approximately 51.3% of AAL's average daily trading volume over the past month, of 37.1 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $20 strike highlighted in orange: For the various different available expirations for THC options, SNOW options, or AAL options, visit StockOptionsChannel.com.
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Below is a chart showing SNOW's trailing twelve month trading history, with the $170 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 190,403 contracts, representing approximately 19.0 million underlying shares or approximately 51.3% of AAL's average daily trading volume over the past month, of 37.1 million shares. Particularly high volume was seen for the $20 strike call option expiring April 22, 2022, with 26,397 contracts trading so far today, representing approximately 2.6 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $20 strike highlighted in orange: For the various different available expirations for THC options, SNOW options, or AAL options, visit StockOptionsChannel.com.
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Below is a chart showing SNOW's trailing twelve month trading history, with the $170 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 190,403 contracts, representing approximately 19.0 million underlying shares or approximately 51.3% of AAL's average daily trading volume over the past month, of 37.1 million shares. Particularly high volume was seen for the $20 strike call option expiring April 22, 2022, with 26,397 contracts trading so far today, representing approximately 2.6 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $20 strike highlighted in orange: For the various different available expirations for THC options, SNOW options, or AAL options, visit StockOptionsChannel.com.
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Below is a chart showing SNOW's trailing twelve month trading history, with the $170 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 190,403 contracts, representing approximately 19.0 million underlying shares or approximately 51.3% of AAL's average daily trading volume over the past month, of 37.1 million shares. Particularly high volume was seen for the $20 strike call option expiring April 22, 2022, with 26,397 contracts trading so far today, representing approximately 2.6 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $20 strike highlighted in orange: For the various different available expirations for THC options, SNOW options, or AAL options, visit StockOptionsChannel.com.
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3633.0
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2022-04-20 00:00:00 UTC
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The Smartest Stocks to Buy With $20 Right Now and Hold Forever
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AAL
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https://www.nasdaq.com/articles/the-smartest-stocks-to-buy-with-%2420-right-now-and-hold-forever-2
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It is a common misconception that you need a bucketload of money to enter the stock market. Stocks trading at $20 or less can also help you earn if chosen at the right time and from the right sector and held for the long haul. It is always wise to diversify your portfolio with growth stocks from different sectors.
The smartest stocks to buy with $20 right now are airline companies American Airlines (NASDAQ: AAL), Southwest Airlines (NYSE: LUV) and cannabis company Tilray Brands (NASDAQ: TLRY). These three belong to volatile sectors but also high-growth industries. Let's take a look at what makes them the right fit for your portfolio now.
Image source: Getty Images.
With summer travel demand rising, hopes spark for airlines
The airline industry might look like a risky bet now considering its performance ever since the global pandemic hit, along with geopolitical tensions. But the pandemic will end someday, and travel (both leisure and business) will rebound, making airlines stock skyrocket. Delta Airlines gave a hint of that in its recent earnings result, which showed the company returned to profitability in March. It also sparked hope by stating it expects a better operating margin and strong free cash flow in the next quarter, driven by a rebound in demand.
Since then, most airline stocks have gotten a boost. A good airline company to buy for $20 is American Airlines. The company is set to report its first-quarter 2022 results on April 21. Analysts expect a net loss of $2.4 per share but a revenue growth of 120% year over year to $8.8 billion, reflecting the slow rise in demand this year.
Management expects Q1 revenue to be down 20% to 22% from 2019 (pre-pandemic levels). It saw its revenue dip 17% year over year in Q4, which resulted in a net loss of $931 million, or $1.44 per share.
Talking about the future, American's chairman and CEO, Doug Parker, stated, "While we still have work to do as the recovery from the pandemic continues, I have no doubt the best is yet to come for American." The company has also succeeded in lowering its capital expenditure, which came in at $208 million, compared to $1.9 billion in 2020.
Southwest Airlines is set to announce its first-quarter results on April 28. Its previous quarter and year-end were profitable. After a dreadful last two years, the company saw its first quarterly profit of $68 million in Q4, or $0.11 per diluted share. Slowly but steadily the airlines are recovering.
The cannabis industry is just getting started
There is no doubt about the potential of the marijuana industry. Even though not all Canadian pot stocks are worth buying now, Tilray has proved its value post-merger with Aphria. The company has consistently delivered outstanding quarterly results, including those for its recent fiscal 2022 third quarter (ended Feb. 28). The company saw a net revenue jump of 23% year over year to $152 million. This resulted in its 12th consecutive quarter of positive adjusted earnings before interest, tax, depreciation, and amortization (EBITDA), which came in at $10.1 million, and a net income of $52.5 million. Tilray is also on track to earning cost synergies of $80 million by May 31 and an additional $20 million in fiscal 2023. Tilray has also worked out a strategic alliance with Canada-based pot company Hexo to pay off its $193 million in convertible debt, earning the right to own a substantial stake in Hexo later. This deal will help Tilray earn $18 million annually for "advisory services" and 5% annual interest on the debt, along with $80 million in cost synergies annually between them, within two years of completion of the deal.
Since the merger, the company has a better exposure in the European market and is also gearing up to take advantage of the U.S. cannabis market (if and when federal legalization happens). The company is on the path to achieving $4 billion in revenue by fiscal 2024.
All three stocks are cheaply valued now, trading more than 50% below their 52-week high. It makes now the right time to buy the stocks on the dip and hold them forever. Note that high-growth stocks take time to show their full potential, so patience and an appetite for risk are needed.
10 stocks we like better than American Airlines Group
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Sushree Mohanty has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines 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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The smartest stocks to buy with $20 right now are airline companies American Airlines (NASDAQ: AAL), Southwest Airlines (NYSE: LUV) and cannabis company Tilray Brands (NASDAQ: TLRY). Delta Airlines gave a hint of that in its recent earnings result, which showed the company returned to profitability in March. It also sparked hope by stating it expects a better operating margin and strong free cash flow in the next quarter, driven by a rebound in demand.
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The smartest stocks to buy with $20 right now are airline companies American Airlines (NASDAQ: AAL), Southwest Airlines (NYSE: LUV) and cannabis company Tilray Brands (NASDAQ: TLRY). With summer travel demand rising, hopes spark for airlines The airline industry might look like a risky bet now considering its performance ever since the global pandemic hit, along with geopolitical tensions. Analysts expect a net loss of $2.4 per share but a revenue growth of 120% year over year to $8.8 billion, reflecting the slow rise in demand this year.
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The smartest stocks to buy with $20 right now are airline companies American Airlines (NASDAQ: AAL), Southwest Airlines (NYSE: LUV) and cannabis company Tilray Brands (NASDAQ: TLRY). 10 stocks we like better than American Airlines Group When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of April 7, 2022 Sushree Mohanty has no position in any of the stocks mentioned.
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The smartest stocks to buy with $20 right now are airline companies American Airlines (NASDAQ: AAL), Southwest Airlines (NYSE: LUV) and cannabis company Tilray Brands (NASDAQ: TLRY). A good airline company to buy for $20 is American Airlines. Analysts expect a net loss of $2.4 per share but a revenue growth of 120% year over year to $8.8 billion, reflecting the slow rise in demand this year.
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3634.0
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2022-04-20 00:00:00 UTC
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7 Meme Stocks ‘Diamond Hands’ Won’t Give Up On
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AAL
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https://www.nasdaq.com/articles/7-meme-stocks-diamond-hands-wont-give-up-on
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Lucid Group (LCID): The electric vehicle upstart has the potential to take on the giants.
American Airlines (AAL): Revenge travel might bode well for airlines-related meme stocks.
Digital World Acquisition Corp (DWAC): In some cases, controversy sells.
Fortuna Silver Mines (FSM): Inflation makes precious metals investments meme stocks to buy.
Grocery Outlet (GO): Cheap groceries are massively in vogue due to soaring prices.
Nokia (NOK): While risky, NOK has always had a strong speculative following.
Bed Bath & Beyond (BBBY): This may be the sentiment benchmark of meme stocks moving forward.
Within the transformative nature of the coronavirus pandemic were subsegments of radical change, among them the rise of meme stocks to buy. Characterized by a cult-like following on social media and public internet forums, these investments gained notoriety for flipping the mainstream dynamic of Wall Street. Most notoriously, meme-traders took the opposite bet en masse on GameStop (NYSE:GME), sparking a short squeeze.
You all know what happened next. Rather than imploding into irrelevancy, GameStop has become a rallying cry to give vulturous hedge funds a taste of their own medicine. Eventually, the concept of meme stocks moved onto other investments – many of them with legitimate bullish narratives. Therefore, it’s a mistake to assume that all cultish trades are nonsensical. Many of them are quite rational indeed.
To provide further confidence toward those considering meme stocks to buy, the community of diamond hands – or those that refuse to hit the “sell” button – stand ready to hold the line. Not only will they not give in, they’re very vocal about defending the honor of their underlying holdings. So, word to the wise: don’t mess around with these folks unless you’re ready to take the heat.
7 Cheap Stocks to Buy Before the Next Breakout
That said, you also want to perform your due diligence before engaging in meme stocks or any other investment category. As the Securities & Exchange Commission noted, unscrupulous people can take advantage of the speculative environment for nefarious activities. Just be careful out there as you assess the below popular trades.
Ticker Company Current Price
LCID Lucid Motors $21.41
AAL American Airlines $19.59
DWAC Digital World Acquisition Corp $48.81
FSM Fortuna Silver Mines $4.22
GO Grocery Outlet Holding Corp $35.52
NOK Nokia $5.20
BBBY Bed Bath & Beyond $16.87
Meme Stocks: Lucid Group (LCID)
Source: gg5795 / Shutterstock.com
One of the most popular meme stocks to buy based on previously being one of the core holdings of Roundhill MEME ETF (NYSEARCA:MEME), electric vehicle manufacturer Lucid Group (NASDAQ:LCID) has been generating serious buzz since its merger with a special purpose acquisition company in early 2021. It’s one of the few SPACs post-business combination that have performed well relative to its initial offering price.
But don’t just think the hype is all about market interest and not what it puts down on the road. A few months ago, MotorTrend granted the Lucid Air the honor of best car of the year. Thanks to the Air’s engineering prowess, excellent performance, capable range and efficiency, it has the potential to take on sector king Tesla (NASDAQ:TSLA).
And yes, it’s pricey but that’s also the point. Lucid recognizes that macroeconomic dynamics don’t yet call for EVs that average households can afford. For now, the company will focus on the affluent crowd, eventually working its way lower should circumstances justify it.
American Airlines (AAL)
Source: GagliardiPhotography / Shutterstock.com
One of the trickiest meme stocks to navigate, American Airlines (NASDAQ:AAL) is also compelling for speculators at this juncture. That’s because people are generally tired of Covid-19 and its associated protocols and mitigation measures. Indeed, information from Johns Hopkins Medicine implied that Americans were already fed up with the pandemic in the summer of 2020.
It’s a negative catalyst that can be cynically positive for AAL and other travel-related meme stocks. As a Washington Post article mentioned earlier this year, revenge travel – or the desire to take vacations that were prevented in years past – is now an actual thing. Combined with the general assumption that people are much more comfortable with strangers in tight spaces (regarding disease spread), AAL could end up being a surprise winner.
Still, you should be aware that air rage incidents have spiked since the start of Covid-19, which could impact the airlines industry. Also, American Airlines and its peers have absorbed substantial financial damage that will take years to resolve.
Digital World Acquisition Corp (DWAC)
Source: mundissima / Shutterstock
A lot can change in a month and a half. Just ask stakeholders of Digital World Acquisition Corp (NASDAQ:DWAC). One of the most controversial SPACs – or just any publicly traded entity for that matter – DWAC is poised to take conservative-leaning social media platform Truth Social public. Running on the concept of censorship-free media, Truth Social apparently stands in sharp contrast to mainstream social networks.
Up until early March of this year, DWAC was on the cusp of doubling on a year-to-date basis. At time of writing, it’s in negative territory, a harsh reversal of fortune. Still, the SPAC is the No. 2 holding of the Roundhill MEME ETF as of April 17. Though I don’t want to read too into the print, this dynamic suggests that DWAC commands an immense fanbase – a key characteristic of meme stocks.
While a risky proposition due to the recent volatility, speculators may want to keep tabs on DWAC due to political rumblings. President Joe Biden’s unpopularity levels have hit records, breathing relevance – whether you like it or not – into DWAC.
Meme Stocks: Fortuna Silver Mines (FSM)
Source: Shutterstock
Though holding ranks can change at a moment’s notice, for now, Fortuna Silver Mines (NYSE:FSM) is standing at the top of the heap of meme stocks to buy. That’s based off the weighting of FSM on the aforementioned MEME ETF. Arguably, out of all the market-related memes out there, Fortuna makes the most sense.
As you know, everyone’s talking about inflation, including yours truly. While myriad factors contributed to soaring consumer prices, the core catalyst could be as simple as the unprecedented expansion of the real M2 money stock. As owners of the world’s reserve currency, the U.S. is incredibly privileged. But that also means the actions of the Federal Reserve will have far-reaching consequences.
Essentially, the Fed must raise interest rates above the rate of inflation (probably well above it) to ease down prices. But does the central bank have the political will to do this? Many argue that it’s unlikely and I can easily see this point as hiking rates would probably mean a recession. That’s why meme stocks related to precious metal miners are gaining steam.
Grocery Outlet (GO)
Source: Hananeko_Studio / Shutterstock.com
During the initial onset of the Covid-19 pandemic, the grocer – and businesses such as big-box retailers selling household essentials – garnered a perhaps unprecedented level of relevance. Don’t get me wrong, the grocery business has always been relevant. But with key supplies (toilet paper, anyone?) dwindling, the panic was cynically beneficial for meme stocks like Grocery Outlet (NASDAQ:GO).
Now, with soaring consumer inflation showing no signs of abating, Grocery Outlet has found second wind. In fact, GO is up 21% YTD since the close of the April 15 session, demonstrating that meme stocks aren’t always about wagering on video game retailers with steep financial challenges. Instead, the crowd can often times make prudent decisions.
Further, Grocery Outlet should enjoy continued upside so long as macroeconomic conditions roughly stay the same as they are right now. According to the Bureau of Labor Statistics, besides energy costs, food represents the highest cost increase (percentage wise) on a year-over-year basis since March 2022.
Naturally, with Grocery Outlet specializing in low-cost items, GO is among the meme stocks almost custom-built for present crises.
Nokia (NOK)
Source: rafapress / Shutterstock.com
Long a popular trade even before the phenomenon of meme stocks came into the picture, telecommunications and information technology specialist Nokia (NYSE:NOK) doesn’t look to be losing support among its fans, even though NOK isn’t performing up to par. On a YTD basis, shares are down nearly 19%, reflecting concerns about ongoing global dynamics.
Adding to the question marks is Nokia’s decision to exit the Russian market, following its government’s decision to invade neighboring Ukraine. Certainly for the Russians, it’s not going to be an insignificant move. According to CNN, Chinese firms Huawei and ZTE (OTCMKTS:ZTCOF) “provide between 40% and 60% of Russia’s wireless network equipment.” Nokia and rival Ericsson (NASDAQ:ERIC) supply the rest.
Therefore, moving out of the market – while a morally appropriate decision – risks hurting Nokia at a time when the company really doesn’t have the luxury of ceding ground. However, it also might not be a time to give up on NOK. If we’ve learned anything, it’s that meme stocks die hard.
Meme Stocks: Bed Bath & Beyond (BBBY)
Source: Shutterstock
I don’t really follow meme stocks other than the few that drive mainstream business headlines. Therefore, I was somewhat surprised to see Bed Bath & Beyond (NASDAQ:BBBY) as one of the most popular meme stocks. But recently, the Wall Street Journal warned that the diamond hands could eventually let go of their vice grip on BBBY.
Yes, shares of the retail firm jumped higher due to Chewy (NYSE:CHWY) co-founder Ryan Cohen’s large stake in BBBY. Still, it’s always risky following a major investor into a particular trade. The big boys have the enormous wealth to sustain massive mistakes. On the other hand, your average retail investor does not. And the underlying company’s disappointing earnings result confirmed that the mere advice of billionaires does not constitute due diligence.
But now that BBBY has dropped nearly 13% over the trailing week, is it time to take a risk on shares? For conservative investors, probably not. The valuation may simply be too high for the company’s implied trajectory. Still, if you believe in the power of meme stocks, this may be the ultimate contrarian bet.
On the date of publication, Josh Enomoto held a LONG position in GME. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 7 Meme Stocks ‘Diamond Hands’ Won’t Give Up On appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL): Revenge travel might bode well for airlines-related meme stocks. Ticker Company Current Price LCID Lucid Motors $21.41 AAL American Airlines $19.59 DWAC Digital World Acquisition Corp $48.81 FSM Fortuna Silver Mines $4.22 GO Grocery Outlet Holding Corp $35.52 NOK Nokia $5.20 BBBY Bed Bath & Beyond $16.87 Meme Stocks: Lucid Group (LCID) Source: gg5795 / Shutterstock.com One of the most popular meme stocks to buy based on previously being one of the core holdings of Roundhill MEME ETF (NYSEARCA:MEME), electric vehicle manufacturer Lucid Group (NASDAQ:LCID) has been generating serious buzz since its merger with a special purpose acquisition company in early 2021. American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com One of the trickiest meme stocks to navigate, American Airlines (NASDAQ:AAL) is also compelling for speculators at this juncture.
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Ticker Company Current Price LCID Lucid Motors $21.41 AAL American Airlines $19.59 DWAC Digital World Acquisition Corp $48.81 FSM Fortuna Silver Mines $4.22 GO Grocery Outlet Holding Corp $35.52 NOK Nokia $5.20 BBBY Bed Bath & Beyond $16.87 Meme Stocks: Lucid Group (LCID) Source: gg5795 / Shutterstock.com One of the most popular meme stocks to buy based on previously being one of the core holdings of Roundhill MEME ETF (NYSEARCA:MEME), electric vehicle manufacturer Lucid Group (NASDAQ:LCID) has been generating serious buzz since its merger with a special purpose acquisition company in early 2021. American Airlines (AAL): Revenge travel might bode well for airlines-related meme stocks. American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com One of the trickiest meme stocks to navigate, American Airlines (NASDAQ:AAL) is also compelling for speculators at this juncture.
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Ticker Company Current Price LCID Lucid Motors $21.41 AAL American Airlines $19.59 DWAC Digital World Acquisition Corp $48.81 FSM Fortuna Silver Mines $4.22 GO Grocery Outlet Holding Corp $35.52 NOK Nokia $5.20 BBBY Bed Bath & Beyond $16.87 Meme Stocks: Lucid Group (LCID) Source: gg5795 / Shutterstock.com One of the most popular meme stocks to buy based on previously being one of the core holdings of Roundhill MEME ETF (NYSEARCA:MEME), electric vehicle manufacturer Lucid Group (NASDAQ:LCID) has been generating serious buzz since its merger with a special purpose acquisition company in early 2021. American Airlines (AAL): Revenge travel might bode well for airlines-related meme stocks. American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com One of the trickiest meme stocks to navigate, American Airlines (NASDAQ:AAL) is also compelling for speculators at this juncture.
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Ticker Company Current Price LCID Lucid Motors $21.41 AAL American Airlines $19.59 DWAC Digital World Acquisition Corp $48.81 FSM Fortuna Silver Mines $4.22 GO Grocery Outlet Holding Corp $35.52 NOK Nokia $5.20 BBBY Bed Bath & Beyond $16.87 Meme Stocks: Lucid Group (LCID) Source: gg5795 / Shutterstock.com One of the most popular meme stocks to buy based on previously being one of the core holdings of Roundhill MEME ETF (NYSEARCA:MEME), electric vehicle manufacturer Lucid Group (NASDAQ:LCID) has been generating serious buzz since its merger with a special purpose acquisition company in early 2021. American Airlines (AAL): Revenge travel might bode well for airlines-related meme stocks. American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com One of the trickiest meme stocks to navigate, American Airlines (NASDAQ:AAL) is also compelling for speculators at this juncture.
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3635.0
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2022-04-20 00:00:00 UTC
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Is WisdomTree Global exU.S. Quality Dividend Growth ETF (DNL) a Strong ETF Right Now?
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AAL
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https://www.nasdaq.com/articles/is-wisdomtree-global-exu.s.-quality-dividend-growth-etf-dnl-a-strong-etf-right-now-0
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nan
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nan
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Making its debut on 06/16/2006, smart beta exchange traded fund WisdomTree Global exU.S. Quality Dividend Growth ETF (DNL) provides investors broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is managed by Wisdomtree, and has been able to amass over $545.85 million, which makes it one of the larger ETFs in the World ETFs. DNL seeks to match the performance of the WisdomTree Global ex-U.S. Quality Dividend Growth Index before fees and expenses.
The WisdomTree Global ex-U.S. Quality Dividend Growth Index is a fundamentally weighted index that measures the performance of dividend paying stocks with growth characteristics in the developed and emerging markets outside of the United States.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Annual operating expenses for this ETF are 0.42%, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 2.11%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Taking into account individual holdings, Anglo American Plc (AAL) accounts for about 7.07% of the fund's total assets, followed by Bhp Group Ltd (BHP) and Novo Nordisk A/s (NOVOB).
DNL's top 10 holdings account for about 45.47% of its total assets under management.
Performance and Risk
So far this year, DNL has lost about -10.95%, and is down about -2.84% in the last one year (as of 04/20/2022). During this past 52-week period, the fund has traded between $36.81 and $43.87.
The fund has a beta of 0.84 and standard deviation of 22.70% for the trailing three-year period, which makes DNL a medium risk choice in this particular space. With about 274 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree Global exU.S. Quality Dividend Growth ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core Dividend Growth ETF (DGRO) tracks Morningstar US Dividend Growth Index and the Vanguard Dividend Appreciation ETF (VIG) tracks NASDAQ US Dividend Achievers Select Index. IShares Core Dividend Growth ETF has $23.74 billion in assets, Vanguard Dividend Appreciation ETF has $66.45 billion. DGRO has an expense ratio of 0.08% and VIG charges 0.06%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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WisdomTree Global exU.S. Quality Dividend Growth ETF (DNL): ETF Research Reports
BHP Group Limited Sponsored ADR (BHP): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports
iShares Core Dividend Growth ETF (DGRO): ETF Research Reports
To read this article on Zacks.com 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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Taking into account individual holdings, Anglo American Plc (AAL) accounts for about 7.07% of the fund's total assets, followed by Bhp Group Ltd (BHP) and Novo Nordisk A/s (NOVOB). American Airlines Group Inc. (AAL): Free Stock Analysis Report There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
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Taking into account individual holdings, Anglo American Plc (AAL) accounts for about 7.07% of the fund's total assets, followed by Bhp Group Ltd (BHP) and Novo Nordisk A/s (NOVOB). American Airlines Group Inc. (AAL): Free Stock Analysis Report The WisdomTree Global ex-U.S. Quality Dividend Growth Index is a fundamentally weighted index that measures the performance of dividend paying stocks with growth characteristics in the developed and emerging markets outside of the United States.
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Taking into account individual holdings, Anglo American Plc (AAL) accounts for about 7.07% of the fund's total assets, followed by Bhp Group Ltd (BHP) and Novo Nordisk A/s (NOVOB). American Airlines Group Inc. (AAL): Free Stock Analysis Report Quality Dividend Growth ETF (DNL) provides investors broad exposure to the World ETFs category of the market.
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Taking into account individual holdings, Anglo American Plc (AAL) accounts for about 7.07% of the fund's total assets, followed by Bhp Group Ltd (BHP) and Novo Nordisk A/s (NOVOB). American Airlines Group Inc. (AAL): Free Stock Analysis Report DNL seeks to match the performance of the WisdomTree Global ex-U.S. Quality Dividend Growth Index before fees and expenses.
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3636.0
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2022-04-20 00:00:00 UTC
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De Beers signs contracts with Angola for diamond licences
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AAL
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https://www.nasdaq.com/articles/de-beers-signs-contracts-with-angola-for-diamond-licences
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nan
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nan
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Adds details, quote
JOHANNESBURG, April 20 (Reuters) - Diamond miner De Beers has signed two mineral investment contracts with the Angolan government for licence areas in the northeast of the country, the Anglo American AAL.L subsidiary said on Wednesday.
The contracts are for 35 years and give De Beers the rights to explore and mine, through two new joint ventures with Angola's state diamond company Endiama.
De Beers will hold a "substantial" majority of the new joint ventures, the company said, without specifying a percentage. Endiama will be able to increase its equity share over time.
De Beers expects to start exploration activities in the licences this year, pending regulatory approvals.
The company announced in December last year that it had applied to conduct exploration activities in the country.
"Angola has worked hard in recent years to create a stable and attractive investment environment and we are pleased to be returning to active exploration in the country," De Beers Chief Executive Bruce Cleaver said in a statement.
Angola was the seventh biggest producer of rough diamonds in the world in 2020, according to Kimberley Process statistics. Western sanctions on the world's biggest diamond producer, Russia, could boost demand for alternative sources of diamonds.
(Reporting by Helen Reid, Editing by Louise Heavens and Edmund Blair)
((Helen.Reid@thomsonreuters.com; +27 66 156 5214;))
The views and 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 details, quote JOHANNESBURG, April 20 (Reuters) - Diamond miner De Beers has signed two mineral investment contracts with the Angolan government for licence areas in the northeast of the country, the Anglo American AAL.L subsidiary said on Wednesday. The contracts are for 35 years and give De Beers the rights to explore and mine, through two new joint ventures with Angola's state diamond company Endiama. De Beers expects to start exploration activities in the licences this year, pending regulatory approvals.
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Adds details, quote JOHANNESBURG, April 20 (Reuters) - Diamond miner De Beers has signed two mineral investment contracts with the Angolan government for licence areas in the northeast of the country, the Anglo American AAL.L subsidiary said on Wednesday. The contracts are for 35 years and give De Beers the rights to explore and mine, through two new joint ventures with Angola's state diamond company Endiama. Western sanctions on the world's biggest diamond producer, Russia, could boost demand for alternative sources of diamonds.
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Adds details, quote JOHANNESBURG, April 20 (Reuters) - Diamond miner De Beers has signed two mineral investment contracts with the Angolan government for licence areas in the northeast of the country, the Anglo American AAL.L subsidiary said on Wednesday. The contracts are for 35 years and give De Beers the rights to explore and mine, through two new joint ventures with Angola's state diamond company Endiama. "Angola has worked hard in recent years to create a stable and attractive investment environment and we are pleased to be returning to active exploration in the country," De Beers Chief Executive Bruce Cleaver said in a statement.
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Adds details, quote JOHANNESBURG, April 20 (Reuters) - Diamond miner De Beers has signed two mineral investment contracts with the Angolan government for licence areas in the northeast of the country, the Anglo American AAL.L subsidiary said on Wednesday. The contracts are for 35 years and give De Beers the rights to explore and mine, through two new joint ventures with Angola's state diamond company Endiama. The company announced in December last year that it had applied to conduct exploration activities in the country.
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3637.0
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2022-04-19 00:00:00 UTC
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Why Airline Shares Are Flying High Today
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AAL
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https://www.nasdaq.com/articles/why-airline-shares-are-flying-high-today-1
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nan
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nan
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What happened
The pandemic-era mandate that masks be worn on public transportation appears to be on its way out. The news, coupled with lower oil prices, has airline stocks soaring on Wednesday, with American Airlines Holdings (NASDAQ: AAL), United Airlines Group (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) all up about 5% apiece.
So what
The airline industry struggled during the pandemic, and has been slowly on the mend since the rollout of the first COVID-19 vaccine. But the recovery has been choppy, with the constant threat of a new variant or an uptick in cases ever-present in investors' minds.
Image source: Getty Images.
It's premature to say the pandemic is over, but the industry got a massive symbolic boost on Tuesday when a federal judge in Florida threw out the national mask mandate for public transportation, including airlines. The airlines have generally responded quickly, going to mask-optional for employees and passengers pending a potential U.S. government appeal.
The rally in airline shares was also fueled by lower oil prices. The International Monetary Fund downgraded its global growth forecast overnight, which caused oil prices to fall as much as $5 per barrel. Fuel accounts for as much as 30% of airline operating expenses, so a decline in the price of crude can translate to better profitability for the carriers.
The market is also bidding up the airlines ahead of an important 24 hours in earnings season. United is set to report after markets close on Wednesday, and American follows on Thursday, giving investors a better read on how the airlines view demand and cost issues. Delta Air Lines gave the entire industry a lift last week after it reported better-than-expected results and provided an upbeat outlook for the rest of the year.
Now what
One thing the last few years have taught investors is how much can go wrong that is outside of the airlines' control. The mask mandate is a nice symbolic win for the industry, but it is hard to imagine it will really get more people flying or change the calculus on demand for the remainder of the year. And it does nothing to halt the risk of a new variant or surge that could change summer travel plans.
Investors will get a better idea of how the rest of the year might go at United and American after their earnings releases, but in reality not matter what is said the industry is still in for a multi-year recovery that could be delayed even further by forces outside of the airlines' control. Investors buying in now and hoping for the best should keep their seatbelts fastened, and be ready for further volatility in the months and weeks to come.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The news, coupled with lower oil prices, has airline stocks soaring on Wednesday, with American Airlines Holdings (NASDAQ: AAL), United Airlines Group (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) all up about 5% apiece. It's premature to say the pandemic is over, but the industry got a massive symbolic boost on Tuesday when a federal judge in Florida threw out the national mask mandate for public transportation, including airlines. Delta Air Lines gave the entire industry a lift last week after it reported better-than-expected results and provided an upbeat outlook for the rest of the year.
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The news, coupled with lower oil prices, has airline stocks soaring on Wednesday, with American Airlines Holdings (NASDAQ: AAL), United Airlines Group (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) all up about 5% apiece. It's premature to say the pandemic is over, but the industry got a massive symbolic boost on Tuesday when a federal judge in Florida threw out the national mask mandate for public transportation, including airlines. The Motley Fool recommends Delta Air Lines and JetBlue Airways.
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The news, coupled with lower oil prices, has airline stocks soaring on Wednesday, with American Airlines Holdings (NASDAQ: AAL), United Airlines Group (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) all up about 5% apiece. United is set to report after markets close on Wednesday, and American follows on Thursday, giving investors a better read on how the airlines view demand and cost issues. Investors will get a better idea of how the rest of the year might go at United and American after their earnings releases, but in reality not matter what is said the industry is still in for a multi-year recovery that could be delayed even further by forces outside of the airlines' control.
|
The news, coupled with lower oil prices, has airline stocks soaring on Wednesday, with American Airlines Holdings (NASDAQ: AAL), United Airlines Group (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) all up about 5% apiece. It's premature to say the pandemic is over, but the industry got a massive symbolic boost on Tuesday when a federal judge in Florida threw out the national mask mandate for public transportation, including airlines. The rally in airline shares was also fueled by lower oil prices.
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3638.0
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2022-04-19 00:00:00 UTC
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UPS Gears up to Report Q1 Earnings: What's in the Offing?
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AAL
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https://www.nasdaq.com/articles/ups-gears-up-to-report-q1-earnings%3A-whats-in-the-offing
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nan
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nan
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United Parcel Service UPS is scheduled to report first-quarter 2022 earnings on Apr 26, 2022, before market open.
The Zacks Consensus Estimate for the company’s first-quarter earnings has been revised upward by 2.9% in the past 90 days. The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 25%.
Let’s see how things are shaping up for UPS this earnings season:
Factors to Note
Strong package delivery demand is expected to have aided UPS’ first-quarter 2022 performance. Higher revenue per piece is likely to get reflected in U.S. Domestic Package revenues. The Zacks Consensus Estimate for U.S. Domestic package revenues indicates a 5.7% increase from the first-quarter 2021 reported numbers.
UPS’ International Package revenues are expected to have been boosted by strong growth in all regions. The consensus mark for first-quarter International Package revenues suggests a 7.4% rise from the year-ago reported number.
United Parcel Service, Inc. Price and EPS Surprise
United Parcel Service, Inc. price-eps-surprise | United Parcel Service, Inc. Quote
However, supply chain challenges are likely to have hurt operations at UPS’ Supply Chain and Freight. High transportation costs within the company's supply chain solutions segment due to capacity constraints is expected to have dampened segmental revenues in first-quarter 2022. The Zacks Consensus Estimate for Supply Chain and Freight revenues in the first quarter suggests a 5.7% fall from the year-ago reported number.
Earnings Whispers
The proven Zacks model predicts an earnings beat for UPS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: UPS has an Earnings ESP of +1.92%. The Most Accurate Estimate is pegged at $2.93, higher than the Zacks Consensus Estimate of $2.87. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: UPS carries a Zacks Rank #3.
Highlights of Q4 Earnings
UPS reported fourth-quarter 2021 earnings (excluding 7 cents from non-recurring items) of $3.59 per share, beating the Zacks Consensus Estimate of $3.11. The bottom line rallied 35% year over year. Quarterly revenues of $27,771 million also outperformed the Zacks Consensus Estimate of $27,179.6 million. The top line increased 11.5% year over year.
Other Stocks to Consider
Investors interested in the broader Transportation sector can also consider stocks like Landstar System LSTR, Knight-Swift Transportation Holdings KNX and American Airlines Group AAL, as these stocks too possess the right combination of elements to beat estimates this reporting cycle.
Landstar System has an Earnings ESP of +9.22% and is a Zacks #3 Ranked stock at present. LSTR will release first-quarter 2022 results on Apr 20.
Landstar’s first-quarter results are expected to reflect gains from an improved freight scenario in the United States. Higher truck rates, due to tight truck capacity, are anticipated to have aided the March-quarter performance.
Knight-Swift has an Earnings ESP of +4.17% and is currently a #3 Ranked player. KNX will release first-quarter 2022 results on Apr 20.
Knight-Swift’s first-quarter results are expected to be aided by an improved freight scenario in the United States. Revenues in the Logistics segment are likely to have been strong due to an increase in load count and revenue per load.
American Airlines has an Earnings ESP of +3.01% and is a Zacks #3 Ranked stock at present. AAL will release first-quarter 2022 results on Apr 21.
With air-travel demand steadily rebounding, AAL’s passenger revenues are expected to reflect a significant year-over-year increase. The anticipated increase in passenger revenues is likely to have driven the company’s top line in the first quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Just Released: Zacks' 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +25.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
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United Parcel Service, Inc. (UPS): Free Stock Analysis Report
KnightSwift Transportation Holdings Inc. (KNX): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Landstar System, Inc. (LSTR): 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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With air-travel demand steadily rebounding, AAL’s passenger revenues are expected to reflect a significant year-over-year increase. Other Stocks to Consider Investors interested in the broader Transportation sector can also consider stocks like Landstar System LSTR, Knight-Swift Transportation Holdings KNX and American Airlines Group AAL, as these stocks too possess the right combination of elements to beat estimates this reporting cycle. AAL will release first-quarter 2022 results on Apr 21.
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Other Stocks to Consider Investors interested in the broader Transportation sector can also consider stocks like Landstar System LSTR, Knight-Swift Transportation Holdings KNX and American Airlines Group AAL, as these stocks too possess the right combination of elements to beat estimates this reporting cycle. AAL will release first-quarter 2022 results on Apr 21. With air-travel demand steadily rebounding, AAL’s passenger revenues are expected to reflect a significant year-over-year increase.
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Other Stocks to Consider Investors interested in the broader Transportation sector can also consider stocks like Landstar System LSTR, Knight-Swift Transportation Holdings KNX and American Airlines Group AAL, as these stocks too possess the right combination of elements to beat estimates this reporting cycle. AAL will release first-quarter 2022 results on Apr 21. With air-travel demand steadily rebounding, AAL’s passenger revenues are expected to reflect a significant year-over-year increase.
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Other Stocks to Consider Investors interested in the broader Transportation sector can also consider stocks like Landstar System LSTR, Knight-Swift Transportation Holdings KNX and American Airlines Group AAL, as these stocks too possess the right combination of elements to beat estimates this reporting cycle. AAL will release first-quarter 2022 results on Apr 21. With air-travel demand steadily rebounding, AAL’s passenger revenues are expected to reflect a significant year-over-year increase.
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3639.0
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2022-04-19 00:00:00 UTC
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Why American Airlines (AAL) Might Surprise This Earnings Season
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-aal-might-surprise-this-earnings-season
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nan
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nan
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Investors are always looking for stocks that are poised to beat at earnings season and American Airlines Group Inc. AAL, may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because American Airlines is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAL in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at a loss of $2.40 per share for AAL, compared to a broader Zacks Consensus Estimate of a loss of $2.48 per share. This suggests that analysts have very recently bumped up their estimates for AAL, giving the stock a Zacks Earnings ESP of +3.01% heading into earnings season.
American Airlines Group Inc. Price and EPS Surprise
American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that AAL has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for American Airlines, and that a beat might be in the cards for the upcoming report.
Just Released: Zacks' 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +25.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers 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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Investors are always looking for stocks that are poised to beat at earnings season and American Airlines Group Inc. AAL, may be one such company. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAL in this report. In fact, the Most Accurate Estimate for the current quarter is currently at a loss of $2.40 per share for AAL, compared to a broader Zacks Consensus Estimate of a loss of $2.48 per share.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report Investors are always looking for stocks that are poised to beat at earnings season and American Airlines Group Inc. AAL, may be one such company. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAL in this report.
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This suggests that analysts have very recently bumped up their estimates for AAL, giving the stock a Zacks Earnings ESP of +3.01% heading into earnings season. Investors are always looking for stocks that are poised to beat at earnings season and American Airlines Group Inc. AAL, may be one such company. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAL in this report.
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After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AAL in this report. Given that AAL has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. Investors are always looking for stocks that are poised to beat at earnings season and American Airlines Group Inc. AAL, may be one such company.
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3640.0
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2022-04-19 00:00:00 UTC
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Should You Buy Travel Stocks & ETFs Now?
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AAL
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https://www.nasdaq.com/articles/should-you-buy-travel-stocks-etfs-now
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nan
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nan
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Travel stocks have taken off lately as Covid related restrictions are being lifted in many countries. Shares of major airlines are jumping today after they announced they would stop requiring masks.
Delta Air Lines (DAL) reported last week that it returned to profitability in March. Its management said travel demand is so strong that the company has been able to offset fuel costs through higher fares. In fact, airline travel is one of the fastest rising components in the recent CPI reports.
This summer is expected to be the busiest travel season since the start of the pandemic. As consumers remain flush with cash, they are willing to pay higher fares.
While corporate travel has started making a comeback, it may remain below its pre-pandemic levels, as more businesses just use virtual meetings now.
The U.S. Global Jets ETF (JETS) invests in US and non-US airline companies and operators. American Airlines (AAL), United Airlines (UAL) and Delta are its top holdings.
The ETFMG Travel Tech ETF (AWAY) provides exposure to technology companies in the global travel and tourism industry. Airbnb (ABNB) and Expedia Group (EXPE) are among its holdings.
The Defiance Hotel, Airline, and Cruise ETF (CRUZ) holds airline, hotel and cruise stocks. Norwegian Cruise Line (NCLH) are Carnival (CCL) are its top holdings.
Please watch the short video to learn more.
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Carnival Corporation (CCL): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
Expedia Group, Inc. (EXPE): Free Stock Analysis Report
ETFMG Travel Tech ETF (AWAY): ETF Research Reports
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report
U.S. Global Jets ETF (JETS): ETF Research Reports
Airbnb, Inc. (ABNB): Free Stock Analysis Report
Defiance Hotel, Airline, and Cruise ETF (CRUZ): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL), United Airlines (UAL) and Delta are its top holdings. American Airlines Group Inc. (AAL): Free Stock Analysis Report Its management said travel demand is so strong that the company has been able to offset fuel costs through higher fares.
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American Airlines (AAL), United Airlines (UAL) and Delta are its top holdings. American Airlines Group Inc. (AAL): Free Stock Analysis Report The Defiance Hotel, Airline, and Cruise ETF (CRUZ) holds airline, hotel and cruise stocks.
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American Airlines (AAL), United Airlines (UAL) and Delta are its top holdings. American Airlines Group Inc. (AAL): Free Stock Analysis Report The Defiance Hotel, Airline, and Cruise ETF (CRUZ) holds airline, hotel and cruise stocks.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines (AAL), United Airlines (UAL) and Delta are its top holdings. ETFMG Travel Tech ETF (AWAY): ETF Research Reports
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3641.0
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2022-04-19 00:00:00 UTC
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American Airlines Says Face Mask No Longer Required
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AAL
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https://www.nasdaq.com/articles/american-airlines-says-face-mask-no-longer-required
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nan
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nan
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(RTTNews) - American Airlines has withdrawn the mandate for face masks at U.S. airports and on domestic flights in accordance with the Transportation Security Administration or TSA's decision.
The airline said face masks will not be compulsory as TSA no longer enforces the federal face mask mandate applied to public transportation and transportation hubs.
The Centers for Disease Control and Prevention or CDC, which had issued Biden administration's mandate in February 2021, last week extended it through May 3.
Meanwhile, the latest developments follow a ruling by federal judge in Florida, who struck down the mask requirement by the CDC on airplanes, trains, buses and other public transportation.
A Biden administration official reportedly said that CDC's public transportation masking order is not in effect at this time following the court ruling. CDC, however, recommends that people continue to wear masks in indoor public transportation settings.
American Airlines added that its customers and team members may continue to wear masks at their own discretion. According to the company, face masks may still be required based on local ordinances, or when traveling to/from certain international locations based on country requirements.
American Airlines is one among several airlines and travel authorities that made masks optional for its employees and customers, even as new coronavirus cases are sharply rising again.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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(RTTNews) - American Airlines has withdrawn the mandate for face masks at U.S. airports and on domestic flights in accordance with the Transportation Security Administration or TSA's decision. Meanwhile, the latest developments follow a ruling by federal judge in Florida, who struck down the mask requirement by the CDC on airplanes, trains, buses and other public transportation. A Biden administration official reportedly said that CDC's public transportation masking order is not in effect at this time following the court ruling.
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The airline said face masks will not be compulsory as TSA no longer enforces the federal face mask mandate applied to public transportation and transportation hubs. A Biden administration official reportedly said that CDC's public transportation masking order is not in effect at this time following the court ruling. CDC, however, recommends that people continue to wear masks in indoor public transportation settings.
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(RTTNews) - American Airlines has withdrawn the mandate for face masks at U.S. airports and on domestic flights in accordance with the Transportation Security Administration or TSA's decision. The airline said face masks will not be compulsory as TSA no longer enforces the federal face mask mandate applied to public transportation and transportation hubs. Meanwhile, the latest developments follow a ruling by federal judge in Florida, who struck down the mask requirement by the CDC on airplanes, trains, buses and other public transportation.
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(RTTNews) - American Airlines has withdrawn the mandate for face masks at U.S. airports and on domestic flights in accordance with the Transportation Security Administration or TSA's decision. A Biden administration official reportedly said that CDC's public transportation masking order is not in effect at this time following the court ruling. American Airlines added that its customers and team members may continue to wear masks at their own discretion.
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3642.0
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2022-04-19 00:00:00 UTC
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Transportation Stocks' Apr 21 Q1 Earnings Roster: AAL, ALK & UNP
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AAL
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https://www.nasdaq.com/articles/transportation-stocks-apr-21-q1-earnings-roster%3A-aal-alk-unp
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nan
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nan
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The Zacks Transportation sector is widely diversified. It houses airlines, railroads, shipping and trucking companies, to name a few.
Only a handful of transportation companies (two S&P 500 members, to be exact) have reported their first-quarter 2022 numbers so far, with a vast majority yet to do so. Notably, the early indications are encouraging.
The gradual uptick in the economic scenario implies that trading volumes have been rising. This bodes well for the entire sector. The latest Earnings Preview indicates that the total earnings of transportation companies belonging to the S&P 500 universe in first-quarter 2022 will increase massively from the fourth-quarter 2021 reported levels mainly on the uptick in economic activities. Administered with jabs, people are now more confident of going out and resuming their daily activities.
The above-mentioned scenario is projected to have favorably impacted the first-quarter 2022 performances of American Airlines AAL, Alaska Air Group ALK and Union Pacific Corporation UNP, scheduled to release their results on Apr 21. However, high fuel costs are likely to have hurt their bottom-line performances. Notably, oil prices escalated 33% in first-quarter 2022, induced by the Russia-Ukraine war.
Our quantitative model predicts an earnings beat for a company if it has a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This combination increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Let’s delve deeper.
American Airlines’ results are likely to reflect the impacts of upbeat passenger revenues, courtesy of strong air-travel demand. Management expects first-quarter 2022 revenues to decline 16% approximately in first-quarter 2022 from the 2019 comparable period’s reported level. This is better than AAL’s previous view of a 17% decrease.
However, due to the Russia-Ukraine war, fuel prices have been soaring. AAL estimates fuel costs per gallon of $2.80-$2.85 for the first quarter compared with $2.73-$2.78 stated previously.
Our proven model predicts an earnings beat for American Airlines this season as AAL has an Earnings ESP of +3.01% and a Zacks Rank #3 at present. Notably, our model had predicted a positive surprise for AAL earlier as well, when its first-quarter earnings preview article was issued. At that time, AAL had an Earnings ESP of +1.54 and the Zacks Rank was the same.
American Airlines Group Inc. Price and EPS Surprise
American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote
High fuel costs are likely to have dented Alaska Air’s first-quarter performance despite increasing passenger revenues due to strong air-travel demand. The carrier expects first-quarter economic fuel costs of $2.62 per gallon, suggesting a rise from the $2.26 per gallon reported in fourth-quarter 2021.
Our proven model does not predict a bottom-line outperformance for Alaska Air this season as ALK has an Earnings ESP of -0.30% and a Zacks Rank #3 at present. Notably, our model did not predict a positive surprise for ALK earlier as well, when its first-quarter earnings preview article was issued.
Alaska Air Group, Inc. Price, Consensus and EPS Surprise
Alaska Air Group, Inc. price-consensus-eps-surprise-chart | Alaska Air Group, Inc. Quote
Strong freight demand is expected to have boosted Union Pacific’s freight revenues in the first quarter. Higher volumes and favorable pricing are likely to have aided Union Pacific’s performance.
Our proven model does not predict a beat for Union Pacific this earnings season as UNP has an Earnings ESP of -0.15% and a Zacks Rank #3 at present. However, our model had predicted a positive surprise for UNP earlier when its first-quarter earnings preview article was issued.
Union Pacific Corporation Price and EPS Surprise
Union Pacific Corporation price-eps-surprise | Union Pacific Corporation Quote
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Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +25.4% per year.
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Union Pacific Corporation (UNP): 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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The above-mentioned scenario is projected to have favorably impacted the first-quarter 2022 performances of American Airlines AAL, Alaska Air Group ALK and Union Pacific Corporation UNP, scheduled to release their results on Apr 21. This is better than AAL’s previous view of a 17% decrease. AAL estimates fuel costs per gallon of $2.80-$2.85 for the first quarter compared with $2.73-$2.78 stated previously.
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The above-mentioned scenario is projected to have favorably impacted the first-quarter 2022 performances of American Airlines AAL, Alaska Air Group ALK and Union Pacific Corporation UNP, scheduled to release their results on Apr 21. This is better than AAL’s previous view of a 17% decrease. AAL estimates fuel costs per gallon of $2.80-$2.85 for the first quarter compared with $2.73-$2.78 stated previously.
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Our proven model predicts an earnings beat for American Airlines this season as AAL has an Earnings ESP of +3.01% and a Zacks Rank #3 at present. The above-mentioned scenario is projected to have favorably impacted the first-quarter 2022 performances of American Airlines AAL, Alaska Air Group ALK and Union Pacific Corporation UNP, scheduled to release their results on Apr 21. This is better than AAL’s previous view of a 17% decrease.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report The above-mentioned scenario is projected to have favorably impacted the first-quarter 2022 performances of American Airlines AAL, Alaska Air Group ALK and Union Pacific Corporation UNP, scheduled to release their results on Apr 21. This is better than AAL’s previous view of a 17% decrease.
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2022-04-19 00:00:00 UTC
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Continental Resources and PLBY Group have been highlighted as Zacks Bull and Bear of the Day
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https://www.nasdaq.com/articles/continental-resources-and-plby-group-have-been-highlighted-as-zacks-bull-and-bear-of-the
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For Immediate Release
Chicago, IL – April 19, 2022 – Zacks Equity Research shares Continental Resources CLR as the Bull of the Day and PLBY Group PLBY as the Bear of the Day. In addition, Zacks Equity Research provides analysis on American Airlines AAL, Southwest Airlines LUV and Gol Linhas Aéreas Inteligentes S.A. GOL.
Here is a synopsis of all five stocks:
Bull of the Day:
There have been some mega trends in the market recently. The inflationary pressure has really helped the commodity complex. Whether its wheat, oil, or soybeans, things have been good for the bulls over there. It has helped to push along the stocks in commodity-related industries. No one knows how long this trend will continue, so let's just enjoy it while it lasts.
One way I am going to enjoy it is by naming today's Bull of the Day a stock within the oil business. I'm talking about Zacks Rank #1 (Strong Buy) Continental Resources. Continental Resources, Inc. explores for, develops, produces, and manages crude oil, natural gas, and related products primarily in the north, south, and east regions of the United States. The company sells its crude oil and natural gas production to energy marketing companies, crude oil refining companies, and natural gas gathering and processing companies. As of December 31, 2021, its proved reserves were 1,645 million barrels of crude oil equivalent (MMBoe) with proved developed reserves of 908 MMBoe.
Continental Resources is a Zacks Rank #1 (Strong Buy) in the Oil and Gas – Exploration and Production – United States industry which ranks in the Top 7% of our Zacks Industry Rank. The reason for the favorable rank is several analysts increasing their earnings estimates for the stock. Over the last sixty days, eight analysts have increased their earnings estimates for the current year while four have followed suit for next year.
The bullish sentiment has made a huge impact to our Zacks Consensus Estimates for the current year and next year. Over the last 90 days, the current year Zacks Consensus Estimate is up from $6.95 to $9.89 while next year's number is up from $5.45 to $8.62.
Those numbers represent 112.23% EPS growth for the current year. That number is expected to slow as oil prices come back down to Earth. The revenue growth for the current year is 50.41%, while next year is expected to contract by just 4.5% to $8.22 billion.
Bear of the Day:
For a fleeting moment there, every stock that had potential to bring NFTs to market were en vogue. It did not matter what it was, as risk capital was trying to get ahead of the curve and buy the next biggest thing. It went way further than stoned apes. Today's Bear of the Day was a stock that really had some promise in this budding market. It is one of the largest names in the publication business and was finally finding its way back out from under the bed. And trust me, I read it for the articles.
I am talking about PLBY Group. The company operates through three segments: Licensing, Direct-to-Consumer, and Digital Subscriptions and Content. It offers sexual wellness products, such as products that enhance sexual experience, lingerie, bedroom accessories, intimates, and adult content; style and apparel products for men and women; gaming and lifestyle products, including digital casino and social games, and other home and hospitality offerings; and beauty and grooming products for men and women, such as skincare, haircare, bath and body, grooming, cosmetics, and fragrance. The company offers its products under its flagship brand, Playboy.
The bad news for investors is that Playboy is currently a Zacks Rank #5 (Strong Sell) in the Leisure and Recreation Products industry which ranks in the Bottom 30% of our Zacks Industry Rank. PLBY Group, Inc. operates as a pleasure and leisure company worldwide.
The numbers are not all bad here. In fact, I could make a good bull case built on revenue and EPS growth. Current year revenue growth calls for 41.95% year-over-year growth while next year is slated to come in at 21.2%. EPS growth looks just as good, if not better, with 123% growth for the current year and 104% growth for next year. So what gives?
Well, it's the recent trend that is troubling. Taking a look at analysts' estimates on Wall Street, the numbers have been contracting across the board. Our current year Zacks Consensus Estimate is off from 60 cents to 32 cents while next year's number is off from 88 cents to 65 cents. That's the reason for the Zacks Rank #5 (Strong Sell).
Additional content:
Expect Earnings Beats from These 3 Airlines in Q1
Delta kicked off the first-quarter 2022 earnings season for the airline industry on Apr 13, 2022. This Atlanta-based carrier reported a loss with Omicron disrupting travel plans in the early part of the March quarter.
Nevertheless, with the threat of the Omicron variant subsiding, air-travel demand was exceptionally strong in March this year. Upbeat demand led to DAL earning a profit in the month with the adjusted operating margin reaching almost 10%. Also, driven by buoyant demand, Delta issued a bright outlook for the second quarter of 2022.
We expect the air-travel demand (mainly for leisure) uptick to have bolstered passenger revenues for the airline companies yet to report their financial numbers for the March quarter. However, high fuel costs are likely to have hurt their bottom-line performances. Consequently, oil price escalated 33% in first-quarter 2022, induced by the Russia-Ukraine war.
With the presence of a universe of industry participants, the task of finding the perfect airline stocks with a potential to outperform on the bottom line front can be daunting. But our proprietary methodology makes this job a cakewalk.
The Zacks Stock Screener helped us identify three airline stocks namely, American Airlines, Southwest Airlines and Gol Linhas Aéreas Inteligentes S.A., all poised to outshine the Zacks Consensus Estimate this earnings season. These stocks have the ideal combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), 3 (Hold) — to surpass expectations. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP is part of our quantitative model to determine the stocks with maximum chances of beating estimates in their impending earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Our research shows that the odds of a positive earnings surprise are as high as 70% for the stocks with this apt combination of elements.
Potential Q1 Outperformers
American Airlinesis based in Fort Worth, TX. AAL has an Earnings ESP of +1.54% and a Zacks Rank #3, currently. You can see the complete list of today's Zacks #1 Rank stocks here.
Recently, American Airlines' management gave an improved total revenue guidance for the first quarter as air-travel demand continues to rebound. Total revenues are likely to decline approximately 16% in first-quarter 2022 from the comparable period's level in 2019.
This is better than AAL's previous view of an approximate decrease of 17%. However, due to the Russia-Ukraine war, fuel prices are soaring. AAL now estimates fuel cost per gallon to be $2.80-$2.85 in the first quarter compared with $2.73-$2.78 anticipated previously. AAL is slated to report first-quarter results on Apr 21.
American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote
Southwest Airlines is based in Dallas. LUV has an Earnings ESP of +24.66% and a Zacks Rank of 3, currently. LUV is slated to report first-quarter results on Apr 28.
Last month, Southwest Airlines' management gave an improved total revenue guidance for the first quarter as air-travel demand continues to rebound. LUV now expects first-quarter operating revenues to be 8-10% below the first-quarter 2019 levels. The same is better than the prior anticipation of a 10-15% fall.
Capacity is expected to be down 9-10% from the first-quarter 2019 actuals. The same indicates a marginal deterioration from the earlier expectation of a 9% decline. Non-fuel unit costs are now expected to increase in the 20-24% range from the first quarter 2019 actuals (previous guidance called for a rise in the band of 17-21%). On a positive note, owing to LUV's multi-year fuel hedging program, it is insured against spikes in jet fuel prices like the current scenario.
Southwest Airlines Co. price-eps-surprise | Southwest Airlines Co. Quote
Gol Linhas is a Brazilian carrier. GOL has an Earnings ESP of +210.96% and is Zacks #3 Ranked, currently. GOL is slated to report first-quarter results on Apr 28.
With air-travel demand picking up in Latin America, Gol Linhas expects total demand or air traffic (measured in revenue passenger kilometers) to be up 46% year over year in the first quarter of 2022. To meet increasing demand, GOL is boosting capacity.
GOL expects total capacity (measured in available seat kilometers) for the March quarter to be up 44%. Seats are likely to increase 49%. Owing to the uptick in total demand, GOL expects first-quarter passenger unit revenues to increase roughly 45% year over year. EBITDA margin is likely to increase approximately 11%.
Gol Linhas Aereas Inteligentes S.A. price-eps-surprise | Gol Linhas Aereas Inteligentes S.A. Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Just Released: Zacks' 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +25.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers 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
Southwest Airlines Co. (LUV): Free Stock Analysis Report
Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Continental Resources, Inc. (CLR): Free Stock Analysis Report
PLBY Group, Inc. (PLBY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In addition, Zacks Equity Research provides analysis on American Airlines AAL, Southwest Airlines LUV and Gol Linhas Aéreas Inteligentes S.A. GOL. AAL has an Earnings ESP of +1.54% and a Zacks Rank #3, currently. This is better than AAL's previous view of an approximate decrease of 17%.
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In addition, Zacks Equity Research provides analysis on American Airlines AAL, Southwest Airlines LUV and Gol Linhas Aéreas Inteligentes S.A. GOL. AAL has an Earnings ESP of +1.54% and a Zacks Rank #3, currently. This is better than AAL's previous view of an approximate decrease of 17%.
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In addition, Zacks Equity Research provides analysis on American Airlines AAL, Southwest Airlines LUV and Gol Linhas Aéreas Inteligentes S.A. GOL. AAL has an Earnings ESP of +1.54% and a Zacks Rank #3, currently. This is better than AAL's previous view of an approximate decrease of 17%.
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AAL now estimates fuel cost per gallon to be $2.80-$2.85 in the first quarter compared with $2.73-$2.78 anticipated previously. In addition, Zacks Equity Research provides analysis on American Airlines AAL, Southwest Airlines LUV and Gol Linhas Aéreas Inteligentes S.A. GOL. AAL has an Earnings ESP of +1.54% and a Zacks Rank #3, currently.
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2022-04-19 00:00:00 UTC
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Should You Invest in the U.S. Global Jets ETF (JETS)?
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https://www.nasdaq.com/articles/should-you-invest-in-the-u.s.-global-jets-etf-jets-1
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The U.S. Global Jets ETF (JETS) was launched on 04/30/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Industrials - Transportation/Shipping segment of the equity market.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Industrials - Transportation/Shipping is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.
Index Details
The fund is sponsored by U.S. Global Investors. It has amassed assets over $3.37 billion, making it one of the largest ETFs attempting to match the performance of the Industrials - Transportation/Shipping segment of the equity market. JETS seeks to match the performance of the U.S. Global Jets Index before fees and expenses.
The U.S. Global Jets Index tracks the performance of Airline Companies across the globe with an emphasis on domestic passenger airlines.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.60%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.66%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, American Airls Group Inc (AAL) accounts for about 10.15% of total assets, followed by United Airls Hldgs Inc (UAL) and Delta Air Lines Inc Del (DAL).
The top 10 holdings account for about 57.97% of total assets under management.
Performance and Risk
The ETF has lost about -1.19% so far this year and is down about -18.11% in the last one year (as of 04/19/2022). In that past 52-week period, it has traded between $16.91 and $27.26.
The ETF has a beta of 1.38 and standard deviation of 46.03% for the trailing three-year period, making it a high risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.
Alternatives
U.S. Global Jets ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, JETS is an outstanding option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
SPDR S&P Transportation ETF (XTN) tracks S&P Transportation Select Industry Index and the iShares U.S. Transportation ETF (IYT) tracks Dow Jones Transportation Average Index. SPDR S&P Transportation ETF has $804.95 million in assets, iShares U.S. Transportation ETF has $1.22 billion. XTN has an expense ratio of 0.35% and IYT charges 0.41%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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U.S. Global Jets ETF (JETS): ETF Research Reports
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
iShares U.S. Transportation ETF (IYT): ETF Research Reports
SPDR S&P Transportation ETF (XTN): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at individual holdings, American Airls Group Inc (AAL) accounts for about 10.15% of total assets, followed by United Airls Hldgs Inc (UAL) and Delta Air Lines Inc Del (DAL). American Airlines Group Inc. (AAL): Free Stock Analysis Report Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency.
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Looking at individual holdings, American Airls Group Inc (AAL) accounts for about 10.15% of total assets, followed by United Airls Hldgs Inc (UAL) and Delta Air Lines Inc Del (DAL). American Airlines Group Inc. (AAL): Free Stock Analysis Report SPDR S&P Transportation ETF (XTN) tracks S&P Transportation Select Industry Index and the iShares U.S. Transportation ETF (IYT) tracks Dow Jones Transportation Average Index.
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Looking at individual holdings, American Airls Group Inc (AAL) accounts for about 10.15% of total assets, followed by United Airls Hldgs Inc (UAL) and Delta Air Lines Inc Del (DAL). American Airlines Group Inc. (AAL): Free Stock Analysis Report SPDR S&P Transportation ETF (XTN) tracks S&P Transportation Select Industry Index and the iShares U.S. Transportation ETF (IYT) tracks Dow Jones Transportation Average Index.
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Looking at individual holdings, American Airls Group Inc (AAL) accounts for about 10.15% of total assets, followed by United Airls Hldgs Inc (UAL) and Delta Air Lines Inc Del (DAL). American Airlines Group Inc. (AAL): Free Stock Analysis Report Global Jets ETF (JETS) was launched on 04/30/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Industrials - Transportation/Shipping segment of the equity market.
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2022-04-19 00:00:00 UTC
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4 Ultra-Popular Stocks to Avoid Like the Plague
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https://www.nasdaq.com/articles/4-ultra-popular-stocks-to-avoid-like-the-plague
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It's a great time to be an investor in the stock market. Even accounting for the recent pullback in equities, the benchmark S&P 500 has rallied approximately 100% from its pandemic low set in March 2020. Backing out a bit further, the widely followed index has gained a hearty 221%, not including dividends, over the trailing decade.
While the broader market has a tendency to head higher over the long run, not all stocks will necessarily follow suit. Investors are occasionally taught a tough lesson that what's popular isn't always what's profitable -- at least from an investment perspective.
Image source: Getty Images.
Using Robinhood Markets' leaderboard as a reference for the 100 most-held stocks and exchange-traded funds on its platform, the following four ultra-popular stocks stand out for all the wrong reasons and should be avoided like the plague.
Moderna
The first highly popular stock for investors to avoid is biotech giant Moderna (NASDAQ: MRNA).
Chances are that most people are familiar with the Moderna name in the wake of the COVID-19 pandemic. The company's vaccine, Spivevax (mRNA-1273), is one of only a handful of COVID-19 vaccines that generated north of 90% efficacy in clinical trials. After recording more than $18 billion in full-year sales in 2021, the company should hit a minimum of $19 billion in sales this year, based on advance purchase agreements.
However, the COVID-19 treatment space is growing more crowded by the day, and (thankfully!) the mortality figures associated with COVID-19 have fallen as newer variants of the disease have emerged. With initial inoculations out of the way in many higher-margin developed markets, Moderna will face a more challenging landscape to establish itself as a key player in booster shots, variants-specific vaccines, and combination vaccines.
What's most worrisome is that Moderna's nearly $67 billion market cap is almost entirely reliant on a single therapy. While the company does have a lot of cash and other vaccines/therapeutics in clinical studies, these non-COVID-19 treatments are still a ways away from generating revenue. Even with a low price-to-earnings ratio at the moment, there's a lot of built-up risk in relying on a single vaccine to support a $67 billion market cap.
Image source: American Airlines.
American Airlines Group
A second ultra-popular stock that would be better off grounded is major airline American Airlines Group (NASDAQ: AAL).
American Airlines is one of many beaten-down transportation stocks that retail investors have rallied around as a pandemic-based reopening play. Since airlines tend to perform well when the U.S. economy is growing, and periods of economic expansion typically last years, investors would appear to be betting on a healthy bounce in consumer spending and U.S. economic activity.
While there are some tangible signs that things have gotten better for airline stocks -- American lifted its revenue forecast a little over a week ago -- there's also no shortage of red flags. For instance, an increase in passengers and higher ticket prices is being offset by rising jet fuel costs and higher labor expenses. Despite sales falling by a double-digit percentage from pre-pandemic levels, the company's cost per available seat mile has increased by a double-digit percentage. Translation: Quarterly losses should continue for the foreseeable future.
The other issue for American Airlines Group is that it has one of the worst balance sheets in the airline industry. Though the pandemic did the company no favors, shareholders are also reeling from management's decision to modernize its fleet well before it was necessary. American Airlines is now sitting on over $25 billion in net debt. In short, it has little financial flexibility in a capital-intensive industry.
Image source: Getty Images.
Sundial Growers
The third ultra-popular stock investors should keep their distance from is Canadian cannabis company Sundial Growers (NASDAQ: SNDL).
Over the next five years, cannabis has the potential to be one of North America's fastest-growing industries. According to a recent report from BDSA, Canadian pot sales are forecast to rise from an estimated $3.8 billion in 2021 to $6.3 billion by 2026 (an 11% compound annual growth rate). With Sundial sitting on $571 million in unrestricted cash and no debt, as of Nov. 9, 2021, its shareholders are clearly excited about its prospects to rake in the green, as well as enter the U.S. market (if Congress ever passes federal cannabis reforms).
Unfortunately, Canadian marijuana stocks have been disappointing on all fronts. More specific to Sundial, the company switched its focus from wholesale cannabis to retail to take advantage of the higher margins associated with the retail side of the equation. But doing so meant rebuilding its brand from scratch. On an operating basis, and excluding one-time adjustments like derivative warrant revaluations, Sundial continues to lose money.
What's more, Sundial is a serial diluter. Instead of just issuing enough common stock to pay off its debt, management failed to turn off the spigot. Between Oct. 1, 2020 and Nov. 9, 2021, Sundial's outstanding share count skyrocketed from 509 million to about 2.1 billion! This share-based dilution makes it highly unlikely the company will ever generate meaningful earnings per share. Plus, with its share price stuck well below $1, a reverse split is likely just to avoid delisting from the Nasdaq exchange.
Image source: Getty Images.
Ocugen
The fourth and final ultra-popular stock to avoid like the plague is small-cap biotech stock Ocugen (NASDAQ: OCGN).
Like Moderna, Ocugen's claim to fame is its ties to a COVID-19 vaccine. Ocugen has the commercialization rights to Bharat Biotech's Covaxin in the U.S. and Canada. In a 25,800-person clinical study in India, Covaxin produced a 78% vaccine efficacy. Considering how many people still need their initial inoculations in emerging markets, Covaxin is one of many promising global vaccines.
However, Ocugen is staring down multiple red flags. To begin with, most adults in the U.S. and Canada have already had their initial COVID-19 inoculations. Both countries have also invested heavily in these initial doses and booster shots. There simply may not be a market for a vaccine that, frankly, delivered lower vaccine efficacy than what Moderna and Pfizer/BioNTech can offer.
Furthermore, the U.S. Food and Drug Administration denied Ocugen's request to approve Covaxin on an emergency-use basis for adolescents, and has placed a temporary hold on the company's phase 2/3 study involving Covaxin.
With more effective vaccines already available, and Ocugen only able to make revenue from Covaxin in the U.S. and Canada, the company's window of opportunity to generate sales from COVID-19 looks to be almost fully closed.
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Sean Williams has no position in any of the stocks mentioned. The Motley Fool recommends Moderna Inc. and Nasdaq. 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 A second ultra-popular stock that would be better off grounded is major airline American Airlines Group (NASDAQ: AAL). Even with a low price-to-earnings ratio at the moment, there's a lot of built-up risk in relying on a single vaccine to support a $67 billion market cap. While there are some tangible signs that things have gotten better for airline stocks -- American lifted its revenue forecast a little over a week ago -- there's also no shortage of red flags.
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American Airlines Group A second ultra-popular stock that would be better off grounded is major airline American Airlines Group (NASDAQ: AAL). Moderna The first highly popular stock for investors to avoid is biotech giant Moderna (NASDAQ: MRNA). Sundial Growers The third ultra-popular stock investors should keep their distance from is Canadian cannabis company Sundial Growers (NASDAQ: SNDL).
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American Airlines Group A second ultra-popular stock that would be better off grounded is major airline American Airlines Group (NASDAQ: AAL). Sundial Growers The third ultra-popular stock investors should keep their distance from is Canadian cannabis company Sundial Growers (NASDAQ: SNDL). Ocugen The fourth and final ultra-popular stock to avoid like the plague is small-cap biotech stock Ocugen (NASDAQ: OCGN).
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American Airlines Group A second ultra-popular stock that would be better off grounded is major airline American Airlines Group (NASDAQ: AAL). Moderna The first highly popular stock for investors to avoid is biotech giant Moderna (NASDAQ: MRNA). 10 stocks we like better than Moderna Inc.
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3646.0
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2022-04-19 00:00:00 UTC
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Uber scraps mask requirement for riders, drivers as COVID cases fall
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https://www.nasdaq.com/articles/uber-scraps-mask-requirement-for-riders-drivers-as-covid-cases-fall
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April 19 (Reuters) - Uber Technologies UBER.N has scrapped mandatory face masks for its riders and drivers in the United States, the ride-hailing company said on Tuesday, adding that riders have the option to cancel their trip if they feel uncomfortable with its move.
The company introduced mask mandates for its drivers, riders and delivery workers around the world in May 2020 as COVID-19 cases rose.
Uber added that the U.S. Centers for Disease Control and Prevention (CDC) recommends wearing a mask if a person has certain high-risk factors or if transmission levels are high in their area.
The company said in November it was resuming shared rides, which had been suspended due to rising COVID cases.
The Biden administration on Monday said it would no longer enforce a U.S. mask mandate on public transportation, after a federal judge in Florida ruled that the 14-month-old directive was unlawful. Major carriers including American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N relaxed curbs following the announcement.
COVID-19 cases have dropped sharply in the United States since hitting record levels in January, according to data from the CDC.
(Reporting by Akash Sriram in Bengaluru; Editing by Vinay Dwivedi)
((Akash.Sriram@thomsonreuters.com; https://twitter.com/hoodieonveshti;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Major carriers including American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N relaxed curbs following the announcement. Uber added that the U.S. Centers for Disease Control and Prevention (CDC) recommends wearing a mask if a person has certain high-risk factors or if transmission levels are high in their area. The Biden administration on Monday said it would no longer enforce a U.S. mask mandate on public transportation, after a federal judge in Florida ruled that the 14-month-old directive was unlawful.
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Major carriers including American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N relaxed curbs following the announcement. April 19 (Reuters) - Uber Technologies UBER.N has scrapped mandatory face masks for its riders and drivers in the United States, the ride-hailing company said on Tuesday, adding that riders have the option to cancel their trip if they feel uncomfortable with its move. The company introduced mask mandates for its drivers, riders and delivery workers around the world in May 2020 as COVID-19 cases rose.
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Major carriers including American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N relaxed curbs following the announcement. April 19 (Reuters) - Uber Technologies UBER.N has scrapped mandatory face masks for its riders and drivers in the United States, the ride-hailing company said on Tuesday, adding that riders have the option to cancel their trip if they feel uncomfortable with its move. The company introduced mask mandates for its drivers, riders and delivery workers around the world in May 2020 as COVID-19 cases rose.
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Major carriers including American Airlines AAL.O, United Airlines UAL.O and Delta Air Lines DAL.N relaxed curbs following the announcement. April 19 (Reuters) - Uber Technologies UBER.N has scrapped mandatory face masks for its riders and drivers in the United States, the ride-hailing company said on Tuesday, adding that riders have the option to cancel their trip if they feel uncomfortable with its move. The company introduced mask mandates for its drivers, riders and delivery workers around the world in May 2020 as COVID-19 cases rose.
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3647.0
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2022-04-18 00:00:00 UTC
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Will United Airlines Stock Rise After Recent Correction?
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AAL
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https://www.nasdaq.com/articles/will-united-airlines-stock-rise-after-recent-correction
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nan
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nan
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The shares of United Airlines (NASDAQ: UAL) have observed a correction in recent weeks largely from sustained high fuel prices despite strong domestic travel demand. Per the short-term energy outlook by EIA, benchmark oil prices are likely to trend downward during the latter half of the year, but uncertainty remains. Thus, United Airlines’ bottom line is expected to observe a dent from high fuel prices for a couple of quarters. Notably, the company does not enter into financial transactions to safeguard against oil price volatility. Per the Trefis machine learning engine which analyses historical stock price movements, UAL stock has a just 41% chance of a rise over the next month (21 trading days). See our analysis United Airlines Stock Chance of Rise for more details.
Five Days: UAL -6.8%, vs. S&P 500 -3.7%; Underperformed market (9% event probability)
UAL stock declined 6.8% over a five-day trading period ending 04/12/2022, compared to the broader market (S&P500) which declined 3.7% over the same period.
Returns of -6.8% or lower over a five-day period on 234 occasions out of 2516 (9%); Stock rose in the next five days in 121 of these 234 instances (52%).
Ten Days: UAL -3.3%, vs. S&P 500 -3.5%; Outperformed market (30% event probability)
UAL stock declined 3.3% over the last ten trading days (two weeks), compared to the broader market (S&P500) which declined 3.5%.
Returns of -3.3% or lower over a 10-day period on 756 occasions out of 2516 (30%); Stock rose in the next 10 days in 416 of these 756 instances (55%)
Twenty-One Days: UAL 22%, vs. S&P 500 4.8%; Outperformed market (4% event probability)
UAL stock gained 22% over the last twenty-one trading days (about one month), compared to the broader market (S&P500) which increased by 4.8%.
Returns of 22% or higher over 21-day period on 109 occasions out of 2516 (4%); Stock rose in the next 21 days in 45 of these 109 instances (41%).
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 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
UAL Return -8% -3% -42%
S&P 500 Return -3% -7% 97%
Trefis Multi-Strategy Portfolio -1% -9% 259%
[1] Month-to-date and year-to-date as of 4/12/2022
[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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The shares of United Airlines (NASDAQ: UAL) have observed a correction in recent weeks largely from sustained high fuel prices despite strong domestic travel demand. Per the short-term energy outlook by EIA, benchmark oil prices are likely to trend downward during the latter half of the year, but uncertainty remains. Thus, United Airlines’ bottom line is expected to observe a dent from high fuel prices for a couple of quarters.
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Five Days: UAL -6.8%, vs. S&P 500 -3.7%; Underperformed market (9% event probability) UAL stock declined 6.8% over a five-day trading period ending 04/12/2022, compared to the broader market (S&P500) which declined 3.7% over the same period. Ten Days: UAL -3.3%, vs. S&P 500 -3.5%; Outperformed market (30% event probability) UAL stock declined 3.3% over the last ten trading days (two weeks), compared to the broader market (S&P500) which declined 3.5%. Returns of -3.3% or lower over a 10-day period on 756 occasions out of 2516 (30%); Stock rose in the next 10 days in 416 of these 756 instances (55%) Twenty-One Days: UAL 22%, vs. S&P 500 4.8%; Outperformed market (4% event probability) UAL stock gained 22% over the last twenty-one trading days (about one month), compared to the broader market (S&P500) which increased by 4.8%.
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Five Days: UAL -6.8%, vs. S&P 500 -3.7%; Underperformed market (9% event probability) UAL stock declined 6.8% over a five-day trading period ending 04/12/2022, compared to the broader market (S&P500) which declined 3.7% over the same period. Returns of -3.3% or lower over a 10-day period on 756 occasions out of 2516 (30%); Stock rose in the next 10 days in 416 of these 756 instances (55%) Twenty-One Days: UAL 22%, vs. S&P 500 4.8%; Outperformed market (4% event probability) UAL stock gained 22% over the last twenty-one trading days (about one month), compared to the broader market (S&P500) which increased by 4.8%. Total [2] UAL Return -8% -3% -42% S&P 500 Return -3% -7% 97% Trefis Multi-Strategy Portfolio -1% -9% 259% [1] Month-to-date and year-to-date as of 4/12/2022 [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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See our analysis United Airlines Stock Chance of Rise for more details. Five Days: UAL -6.8%, vs. S&P 500 -3.7%; Underperformed market (9% event probability) UAL stock declined 6.8% over a five-day trading period ending 04/12/2022, compared to the broader market (S&P500) which declined 3.7% over the same period. Returns of -3.3% or lower over a 10-day period on 756 occasions out of 2516 (30%); Stock rose in the next 10 days in 416 of these 756 instances (55%) Twenty-One Days: UAL 22%, vs. S&P 500 4.8%; Outperformed market (4% event probability) UAL stock gained 22% over the last twenty-one trading days (about one month), compared to the broader market (S&P500) which increased by 4.8%.
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3648.0
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2022-04-18 00:00:00 UTC
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Can American Airlines (AAL) Retain Beat Streak in Q1 Earnings?
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AAL
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https://www.nasdaq.com/articles/can-american-airlines-aal-retain-beat-streak-in-q1-earnings
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nan
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nan
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American Airlines Group AAL is scheduled to report first-quarter 2022 results on Apr 21, before market open.
The Zacks Consensus Estimate for the company’s first-quarter loss has widened by 2.1% in the past 60 days. However, AAL has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 4.4%.
Let’s see how things are shaping up for American Airlines this earnings season.
American Airlines Group Inc. Price and EPS Surprise
American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote
Factors to Note
With air-travel demand steadily rebounding, AAL’s passenger revenues are expected to reflect significant year-over-year increase. The anticipated increase in passenger revenues is likely to have driven the company’s top line in the first quarter.
However, since air-travel demand continues to be below the pre-pandemic levels, American Airlines expects total revenues to decline approximately 16% in first-quarter 2022 from the comparable period in 2019.
Escalating fuel costs amid the Russia-Ukraine war are likely to have hurt the company’s bottom line in the soon-to-be-reported quarter. For the first quarter, AAL estimates fuel cost per gallon to be $2.80-$2.85 compared with $2.36 reported in the fourth quarter of 2021. The Zacks Consensus Estimate for the same stands at $2.80.
Amid high fuel costs, American Airlines has reduced its capacity for the first quarter. The airline expects capacity, measured by available seat miles, to decline 10.7% in the first quarter from the 2019 level. Reduced capacity, along with high labor costs (due to increased hiring efforts), is pushing up non-fuel unit costs or cost per available seat mile (CASM), excluding fuel and net special items. AAL predicts cost per available seat mile (CASM), excluding fuel and net special items, to increase 12-13% in the first quarter from the 2019 level. Increased non-fuel unit costs are expected to get reflected in the airline’s bottom-line number.
Earnings Whispers
The proven Zacks model predicts an earnings beat for American Airlines this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: American Airlines has an Earnings ESP of +1.54% as the Most Accurate Estimate is pegged at a loss of $2.44, while the Zacks Consensus Estimate is poised at a loss of $2.48. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: American Airlines carries a Zacks Rank #3.
Highlights of Q4 Earnings
American Airlines' fourth-quarter 2021 loss (excluding 2 cents from non-recurring items) of $1.42 cents per share compared favorably with the Zacks Consensus Estimate of a loss of $1.51. Quarterly loss per share was also narrower than the year-ago loss of $3.86. Thanks to improving air-travel demand, operating revenues of $9,427 million skyrocketed 134.1% year over year and also surpassed the Zacks Consensus Estimate of $9,320.1 million.
Other Stocks to Consider
Investors interested in the broader Transportation sector may also consider Landstar System LSTR and Knight-Swift Transportation Holdings KNX, as these stocks too possess the right combination of elements to beat on earnings this reporting cycle.
Landstar System has an Earnings ESP of +9.22% and is a Zacks #3 Ranked stock at present. LSTR will release first-quarter 2022 results on Apr 20.
Landstar’s first-quarter results are expected to reflect gains from an improved freight scenario in the United States. Higher truck rates, owing to tight truck capacity, are anticipated to have aided the March-quarter performance.
Knight-Swift has an Earnings ESP of +4.17% and is currently a #3 Ranked player. KNX will release first-quarter 2022 results on Apr 20.
Knight-Swift’s first-quarter results are expected to be aided by an improved freight scenario in the United States. Revenues at the Logistics segment are likely to have been strong due to an increase in load count and revenue per load.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022?
Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys
Access Zacks Top 10 Stocks for 2022 today >>
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
KnightSwift Transportation Holdings Inc. (KNX): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Landstar System, Inc. (LSTR): 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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However, AAL has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 4.4%. AAL predicts cost per available seat mile (CASM), excluding fuel and net special items, to increase 12-13% in the first quarter from the 2019 level. American Airlines Group AAL is scheduled to report first-quarter 2022 results on Apr 21, before market open.
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AAL predicts cost per available seat mile (CASM), excluding fuel and net special items, to increase 12-13% in the first quarter from the 2019 level. American Airlines Group AAL is scheduled to report first-quarter 2022 results on Apr 21, before market open. However, AAL has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 4.4%.
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American Airlines Group Inc. Price and EPS Surprise American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote Factors to Note With air-travel demand steadily rebounding, AAL’s passenger revenues are expected to reflect significant year-over-year increase. American Airlines Group AAL is scheduled to report first-quarter 2022 results on Apr 21, before market open. However, AAL has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 4.4%.
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For the first quarter, AAL estimates fuel cost per gallon to be $2.80-$2.85 compared with $2.36 reported in the fourth quarter of 2021. American Airlines Group AAL is scheduled to report first-quarter 2022 results on Apr 21, before market open. However, AAL has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 4.4%.
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3649.0
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2022-04-18 00:00:00 UTC
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Expect an Earnings Beat From These 3 Airline Companies in Q1
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AAL
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https://www.nasdaq.com/articles/expect-an-earnings-beat-from-these-3-airline-companies-in-q1
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nan
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nan
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Delta Air Lines DAL kicked off the first-quarter 2022 earnings season for the airline industry on Apr 13, 2022. This Atlanta-based carrier reported a loss with Omicron disrupting travel plans in the early part of the March quarter.
Nevertheless, with the threat of the Omicron variant subsiding, air-travel demand was exceptionally strong in March this year. Upbeat demand led to DAL earning a profit in the month with the adjusted operating margin reaching almost 10%. Also, driven by buoyant demand, Delta issued a bright outlook for the second quarter of 2022.
We expect the air-travel demand (mainly for leisure) uptick to have bolstered passenger revenues for the airline companies yet to report their financial numbers for the March quarter. However, high fuel costs are likely to have hurt their bottom-line performances. Consequently, oil price escalated 33% in first-quarter 2022, induced by the Russia-Ukraine war.
With the presence of a universe of industry participants, the task of finding the perfect airline stocks with a potential to outperform on the bottom line front can be daunting. But our proprietary methodology makes this job a cakewalk.
The Zacks Stock Screener helped us identify three airline stocks namely, American Airlines AAL, Southwest Airlines LUV and Gol Linhas Aéreas Inteligentes S.A. GOL, all poised to outshine the Zacks Consensus Estimate this earnings season. These stocks have the ideal combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), 3 (Hold) — to surpass expectations. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP is part of our quantitative model to determine the stocks with maximum chances of beating estimates in their impending earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Our research shows that the odds of a positive earnings surprise are as high as 70% for the stocks with this apt combination of elements.
Potential Q1 Outperformers
American Airlinesis based in Fort Worth, TX. AAL has an Earnings ESP of +1.54% and a Zacks Rank #3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Recently, American Airlines’ management gave an improved total revenue guidance for the first quarter as air-travel demand continues to rebound. Total revenues are likely to decline approximately 16% in first-quarter 2022 from the comparable period’s level in 2019. This is better than AAL’s previous view of an approximate decrease of 17%. However, due to the Russia-Ukraine war, fuel prices are soaring. AAL now estimates fuel cost per gallon to be $2.80-$2.85 in the first quarter compared with $2.73-$2.78 anticipated previously. AAL is slated to report first-quarter results on Apr 21.
American Airlines Group Inc. Price and EPS Surprise
American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote
Southwest Airlines is based in Dallas. LUV has an Earnings ESP of +24.66% and a Zacks Rank of 3, currently. LUV is slated to report first-quarter results on Apr 28.
Last month, Southwest Airlines’ management gave an improved total revenue guidance for the first quarter as air-travel demand continues to rebound. LUV now expects first-quarter operating revenues to be 8-10% below the first-quarter 2019 levels. The same is better than the prior anticipation of a 10-15% fall. Capacity is expected to be down 9-10% from the first-quarter 2019 actuals. The same indicates a marginal deteriorationfrom the earlier expectation of a 9% decline. Non-fuel unit costs are now expected to increase in the 20-24% range from the first quarter 2019 actuals (previous guidance called for a rise in the band of 17-21%). On a positive note, owing to LUV’s multi-year fuel hedging program, it is insured against spikes in jet fuel prices like the current scenario.
Southwest Airlines Co. Price and EPS Surprise
Southwest Airlines Co. price-eps-surprise | Southwest Airlines Co. Quote
Gol Linhas is a Brazilian carrier. GOL has an Earnings ESP of +210.96% and is Zacks #3 Ranked, currently. GOL is slated to report first-quarter results on Apr 28.
With air-travel demand picking up in Latin America, Gol Linhas expects total demand or air traffic (measured in revenue passenger kilometers) to be up 46% year over year in the first quarter of 2022. To meet increasing demand, GOL is boosting capacity. GOL expects total capacity (measured in available seat kilometers) for the March quarter to be up 44%. Seats are likely to increase 49%. Owing to the uptick in total demand, GOL expects first-quarter passenger unit revenues to increase roughly 45% year over year. EBITDA margin is likely to increase approximately 11%.
Gol Linhas Aereas Inteligentes S.A. Price and EPS Surprise
Gol Linhas Aereas Inteligentes S.A. price-eps-surprise | Gol Linhas Aereas Inteligentes S.A. Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top buy-and-hold tickers for the entirety of 2022?
Last year's 2021 Zacks Top 10 Stocks portfolio returned gains as high as +147.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys
Access Zacks Top 10 Stocks for 2022 today >>
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
Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): 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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The Zacks Stock Screener helped us identify three airline stocks namely, American Airlines AAL, Southwest Airlines LUV and Gol Linhas Aéreas Inteligentes S.A. GOL, all poised to outshine the Zacks Consensus Estimate this earnings season. AAL has an Earnings ESP of +1.54% and a Zacks Rank #3, currently. This is better than AAL’s previous view of an approximate decrease of 17%.
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The Zacks Stock Screener helped us identify three airline stocks namely, American Airlines AAL, Southwest Airlines LUV and Gol Linhas Aéreas Inteligentes S.A. GOL, all poised to outshine the Zacks Consensus Estimate this earnings season. AAL has an Earnings ESP of +1.54% and a Zacks Rank #3, currently. This is better than AAL’s previous view of an approximate decrease of 17%.
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The Zacks Stock Screener helped us identify three airline stocks namely, American Airlines AAL, Southwest Airlines LUV and Gol Linhas Aéreas Inteligentes S.A. GOL, all poised to outshine the Zacks Consensus Estimate this earnings season. AAL has an Earnings ESP of +1.54% and a Zacks Rank #3, currently. This is better than AAL’s previous view of an approximate decrease of 17%.
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AAL now estimates fuel cost per gallon to be $2.80-$2.85 in the first quarter compared with $2.73-$2.78 anticipated previously. The Zacks Stock Screener helped us identify three airline stocks namely, American Airlines AAL, Southwest Airlines LUV and Gol Linhas Aéreas Inteligentes S.A. GOL, all poised to outshine the Zacks Consensus Estimate this earnings season. AAL has an Earnings ESP of +1.54% and a Zacks Rank #3, currently.
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3650.0
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2022-04-14 00:00:00 UTC
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Bulls Are Boarding Southwest Airlines Stock. You Should Too.
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AAL
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https://www.nasdaq.com/articles/bulls-are-boarding-southwest-airlines-stock.-you-should-too.
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Southwest Airlines (LUV) shares surged 7.5% on Wednesday on above-average volume.
The airline heavyweight rode the coattails of Delta Air Line’s (DAL) earnings announcement.
If LUV stock can breach the 200-day moving average, it’s a buy.
Source: Carlos E. Santa Maria / Shutterstock.com
Airline stocks peppered the leaderboard on Wednesday, with major carriers from Southwest Airlines (NYSE:LUV) and Delta Airlines (NYSE:DAL) to American Airlines Group (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) all gaining over 5%. The sharp rally came on the heels of a well-received earnings announcement from Delta. Virtually every one of their price charts is pointing toward more upside. But I think LUV stock offers the cleanest trade setup.
Let’s take a brief look at why the market liked Delta’s earnings so much. Then we’ll break down the LUV chart and build out two ways to profit.
Ticker Company Current Price
LUV Southwest Airlines $46.79
Upbeat Delta Earnings Are a Lifeline for LUV Stock
Airline stocks haven’t given much reason for optimism over the past year. The best thing I can say about the entire group is that they turned neutral for a few months. With so many hot trends in energy, commodities and defensive sectors, most traders have ignored LUV and friends altogether. When an industry becomes as unloved as this, it usually takes a fundamental catalyst to bring buyers back.
And Delta earnings may have just created the spark.
Despite reporting a loss for the quarter, the company painted a rosy picture for travel demand moving forward. “Over the last five weeks, we’ve experienced the highest level of sales and booking activity at any time in our history,” Delta CEO Ed Bastian said. “I think it’s going to be a very, very strong summer travel period for us going forward.” As a result, the company is expected to swing to a profit next quarter. Its revenue recovery should top 93% to 97% of where it was before the pandemic.
7 Great REITs That Will Pay You Handsomely
The optimistic outlook brought buyers rushing into airline stocks across the board, even though most have yet to report their own earnings.
The LUV Stock Chart Is Itching for a Breakout
Source: The thinkorswim® platform from TD Ameritrade
Since November, Southwest has been stuck in a sloppy range, giving directional traders little to work with. In situations like this, the best two options are to buy when support forms at the low-end of the range or buy when prices finally pierce resistance. Both setups create lower-risk entries. With Wednesday’s jump, LUV stock is testing the top-end of its box, and an upside breakout seems imminent. At the same time, the 200-day moving average is barreling down and provides further significance to the eventual push above $47.
If we look to 2021, the looming breakout brings on further significance. $47 was a major support zone that halted multiple selloffs through the back half of last year. As the principle of polarity suggests, this old floor turned into a new ceiling once we fell below it in November. If buyers press their advantage, $55 is a logical target over the coming months.
Pick Your Probability
If you want a more exotic way to play than purchasing shares outright, the options market provides plenty of choices. Ultimately, it depends on whether you prefer a higher probability of success or a higher payout. I’ll pitch my favorite idea for each.
Higher Probability Trade: Sell the May $40 put for 60 cents.
Consider this a bet that LUV stock stays above $40 for the next month. The market is pricing in an 85% chance of success. Your max gain is the 60 cents received.
Higher Payout Trade: Buy the May $47.50/$50 bull call spread for 90 cents.
You’re risking 90 cents to make $1.60 if LUV rises to $50. That translates to a potential return of 178%. The options board is pricing in a 30% chance of capturing the max gain.
On the date of publication, Tyler Craig did not have (either directly or indirectly) any positions in the securities mentioned in this article.
For a free trial to the best trading community on the planet and Tyler’s current home, click here!
The post Bulls Are Boarding Southwest Airlines Stock. You Should Too. appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Source: Carlos E. Santa Maria / Shutterstock.com Airline stocks peppered the leaderboard on Wednesday, with major carriers from Southwest Airlines (NYSE:LUV) and Delta Airlines (NYSE:DAL) to American Airlines Group (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) all gaining over 5%. “Over the last five weeks, we’ve experienced the highest level of sales and booking activity at any time in our history,” Delta CEO Ed Bastian said. 7 Great REITs That Will Pay You Handsomely The optimistic outlook brought buyers rushing into airline stocks across the board, even though most have yet to report their own earnings.
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Source: Carlos E. Santa Maria / Shutterstock.com Airline stocks peppered the leaderboard on Wednesday, with major carriers from Southwest Airlines (NYSE:LUV) and Delta Airlines (NYSE:DAL) to American Airlines Group (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) all gaining over 5%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Southwest Airlines (LUV) shares surged 7.5% on Wednesday on above-average volume. Ticker Company Current Price LUV Southwest Airlines $46.79 Upbeat Delta Earnings Are a Lifeline for LUV Stock Airline stocks haven’t given much reason for optimism over the past year.
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Source: Carlos E. Santa Maria / Shutterstock.com Airline stocks peppered the leaderboard on Wednesday, with major carriers from Southwest Airlines (NYSE:LUV) and Delta Airlines (NYSE:DAL) to American Airlines Group (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) all gaining over 5%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Southwest Airlines (LUV) shares surged 7.5% on Wednesday on above-average volume. Ticker Company Current Price LUV Southwest Airlines $46.79 Upbeat Delta Earnings Are a Lifeline for LUV Stock Airline stocks haven’t given much reason for optimism over the past year.
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Source: Carlos E. Santa Maria / Shutterstock.com Airline stocks peppered the leaderboard on Wednesday, with major carriers from Southwest Airlines (NYSE:LUV) and Delta Airlines (NYSE:DAL) to American Airlines Group (NASDAQ:AAL) and United Airlines (NASDAQ:UAL) all gaining over 5%. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Southwest Airlines (LUV) shares surged 7.5% on Wednesday on above-average volume. If LUV stock can breach the 200-day moving average, it’s a buy.
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3651.0
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2022-04-14 00:00:00 UTC
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American Airlines (AAL) Gains As Market Dips: What You Should Know
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-gains-as-market-dips%3A-what-you-should-know-2
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nan
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nan
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American Airlines (AAL) closed at $19 in the latest trading session, marking a +0.26% move from the prior day. This move outpaced the S&P 500's daily loss of 1.21%. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq lost 0.49%.
Coming into today, shares of the world's largest airline had gained 15.06% in the past month. In that same time, the Transportation sector lost 1.94%, while the S&P 500 gained 5.85%.
Wall Street will be looking for positivity from American Airlines as it approaches its next earnings report date. This is expected to be April 21, 2022. In that report, analysts expect American Airlines to post earnings of -$2.48 per share. This would mark year-over-year growth of 42.59%. Our most recent consensus estimate is calling for quarterly revenue of $8.81 billion, up 119.83% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of -$3.48 per share and revenue of $43.23 billion, which would represent changes of +58.47% and +44.66%, respectively, from the prior year.
Any recent changes to analyst estimates for American Airlines should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 45.12% lower within the past month. American Airlines is holding a Zacks Rank of #3 (Hold) right now.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 227, which puts it in the bottom 11% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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.
The views and 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 $19 in the latest trading session, marking a +0.26% move from the prior day. American Airlines Group Inc. (AAL): Free Stock Analysis Report Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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American Airlines (AAL) closed at $19 in the latest trading session, marking a +0.26% move from the prior day. American Airlines Group Inc. (AAL): Free Stock Analysis Report In that report, analysts expect American Airlines to post earnings of -$2.48 per share.
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American Airlines (AAL) closed at $19 in the latest trading session, marking a +0.26% move from the prior day. American Airlines Group Inc. (AAL): Free Stock Analysis Report For the full year, our Zacks Consensus Estimates are projecting earnings of -$3.48 per share and revenue of $43.23 billion, which would represent changes of +58.47% and +44.66%, respectively, from the prior year.
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American Airlines (AAL) closed at $19 in the latest trading session, marking a +0.26% move from the prior day. American Airlines Group Inc. (AAL): Free Stock Analysis Report In that report, analysts expect American Airlines to post earnings of -$2.48 per share.
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3652.0
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2022-04-14 00:00:00 UTC
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Flying Into Q1, These 2 Airline Companies Look to Take Flight
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AAL
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https://www.nasdaq.com/articles/flying-into-q1-these-2-airline-companies-look-to-take-flight
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nan
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nan
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With earnings season nearly in full swing, it’s a thrilling time to be an investor. Companies are finally unveiling their 2022 Q1 results, and investors are laser-focused on how they have dealt with adversity brought about by supply-chain bottlenecks, rising energy prices, higher labor costs, and other economic restraints.
Delta Air Lines DAL officially joined the earnings festivities with the release of its Q1 results on Wednesday. Rolling into next week, a few other airline companies – American Air Lines AAL and United Air Lines UAL – are slated to release quarterly results as well. Let’s take a dive into DAL’s Q1 results and utilize that information to get a feel for what could be coming for a few of its peers.
Delta Air Lines Q1 Results Top Estimates
Delta Air Lines DAL is a leader in domestic and international travel that offers airline tickets and flights to over 275 destinations on six continents. DAL shares have displayed a solid blend of defense over the last month, increasing by nearly 22% in value and outpacing the S&P 500.
2022 Q1 results were strong, topping both EPS and sales estimates. The airliner reported an EPS loss of -$1.23 per share, beating the Zacks Consensus Estimate of -$1.28 per share by a solid 4%. Furthermore, Q1 sales came in at $9.4 billion, beating the $9.1 billion estimate by 3.2% and reflecting a remarkable 125% year-over-year gain from 2021 Q1.
Consumer demand accelerated quickly throughout Q1, boosted by a strong spring break performance. Additionally, as the COVID-19 omicron variant faded away, offices reopened, and travel restrictions were lifted, resulting in a more robust fare environment and improved business travel demand for DAL.
Rising fuel costs have been a significant headache cutting into airliners’ margins in 2022. We can see this in Delta’s operating expenses; it has increased by a jaw-dropping 125% since 2021 Q1. The average fuel price per gallon, $2.09 in Q4 2021, soared to $2.78 per gallon for Q1 2022. Overall, total fuel expenses for Delta increased by 32% since its Q4 2021 report last December.
Looking ahead to Q2, Delta says, “In the June quarter, we are successfully recapturing higher fuel prices and expect our revenue recovery to accelerate to 93 to 97 percent with unit revenue up double digits compared to 2019."
All in all, it seems that Delta Airlines is optimistic moving forward, even in times of high fuel prices. As fuel prices spiral back down to earth and COVID-19 becomes less of an issue, the company seems poised to fly again, which bodes well for both investors and its peers.
Additionally, the Zacks Transportation – Airline Industry has gained nearly 19% over the last month, perhaps signaling that the rally has already taken flight. Delta Air Lines is currently a Zacks Rank #3 (Hold) with an overall VGM Score of a B.
Delta Air Lines, Inc. Price, Consensus and EPS Surprise
Delta Air Lines, Inc. price-consensus-eps-surprise-chart | Delta Air Lines, Inc. Quote
American Air Lines Q1 Preview
American Air Line AAL is slated to release its next quarterly earnings on April 21st before market open. AAL shares have enjoyed a substantial 22% increase in value over the last month, providing a much higher level of defense and easily outperforming the S&P 500.
AAL has beat EPS estimates in each of its last four quarters, providing it with a four-quarter trailing average earnings surprise of 4.4%. In its most recent quarter, the airliner beat EPS estimates by nearly 6% and beat sales estimates by a marginal 1.2%.
Over the last 60 days, analysts have downwardly revised their Q1 estimates, causing the Consensus Estimate Trend to fall approximately 2% down to -$2.48 per share. On the contrary, three analysts have positively revised their estimates for Q1, but the majority (6) of revisions remain downward. Analysts see rising fuel costs negatively impacting the quarter’s results.
The Zacks Consensus Estimate of -$2.48 per share for Q1 reflects a notable 43% year-over-year increase in earnings from 2021. Moving onto sales, Q1 estimates look robust; the $8.8 billion quarterly revenue estimate represents a massive 120% surge in the top line year-over-year from 2021. Additionally, the current-year EPS estimate of -$3.48 reflects a substantial 60% growth in earnings year-over-year.
Sliding into its quarterly report next week, American Air Lines is a Zacks Rank #3 (Hold) with an overall VGM Score of an F.
American Airlines Group Inc. Price, Consensus and EPS Surprise
American Airlines Group Inc. price-consensus-eps-surprise-chart | American Airlines Group Inc. Quote
United Air Lines Q1 Preview
United Air Lines UAL is on deck to release its Q1 results before the market opens next Monday, April 20th. Over the last month, UAL shares have increased nearly 19% in value, scorching the S&P 500’s 5% gain.
UAL has a four-quarter trailing average EPS surprise of 16%, and in its latest quarter, the airliner torched the -$2.23 EPS estimate by nearly 30%. Additionally, the company beat the quarterly sales estimate of $7.9 billion by 3.3%, reporting sales of $8.2 billion.
For Q1, analysts have been peeling back their estimates over the last 60 days, sending the Consensus Estimate Trend down 6.3% and now forecasting quarterly earnings of -$4.11 per share. Out of the 13 revisions in this timeframe, 12 were downwards, and one was upwards. An unfavorable aviation environment in the recent term undoubtedly influenced analysts’ opinions.
Year-over-year growth rates in earnings and sales look robust. The Q1 EPS estimate of -$4.11 reflects a notable 45% year-over-year increase from 2021, and the Q1 sales estimate of $7.7 billion represents a surge in revenue of nearly 140%. Additionally, the current year’s EPS estimate of -$2.49 displays a sizable year-over-year earnings growth of 82%.
Rolling into Q1, United Air Lines sports a Zacks Rank #3 (Hold) with an overall VGM Score of a B.
United Airlines Holdings Inc Price, Consensus and EPS Surprise
United Airlines Holdings Inc price-consensus-eps-surprise-chart | United Airlines Holdings Inc Quote
Final Thoughts
The airline industry has been in haywire ever since the beginning of COVID-19. Travel restrictions have tanked results over the past two years, and recently, skyrocketing gas prices have thrown fuel on the fire.
However, the airline companies remain optimistic moving forward as COVID-19 moves to a more controllable state and fuel costs cool down following geopolitical issues out of their hands. Simply put, the industry is recovering.
Be on the lookout for these quarterly reports; DAL’s Q1 earnings report has sent shares into an uptrend, nearly gaining 15% this week alone. If UAL and AAL’s quarterly reports provide similar results, shares stand to take flight.
DAL, AAL, UAL Performance Since 4/14/21
Image Source: Zacks Investment Research
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rolling into next week, a few other airline companies – American Air Lines AAL and United Air Lines UAL – are slated to release quarterly results as well. Delta Air Lines is currently a Zacks Rank #3 (Hold) with an overall VGM Score of a B. Delta Air Lines, Inc. Price, Consensus and EPS Surprise Delta Air Lines, Inc. price-consensus-eps-surprise-chart | Delta Air Lines, Inc. Quote American Air Lines Q1 Preview American Air Line AAL is slated to release its next quarterly earnings on April 21st before market open. AAL shares have enjoyed a substantial 22% increase in value over the last month, providing a much higher level of defense and easily outperforming the S&P 500.
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Delta Air Lines is currently a Zacks Rank #3 (Hold) with an overall VGM Score of a B. Delta Air Lines, Inc. Price, Consensus and EPS Surprise Delta Air Lines, Inc. price-consensus-eps-surprise-chart | Delta Air Lines, Inc. Quote American Air Lines Q1 Preview American Air Line AAL is slated to release its next quarterly earnings on April 21st before market open. Rolling into next week, a few other airline companies – American Air Lines AAL and United Air Lines UAL – are slated to release quarterly results as well. AAL shares have enjoyed a substantial 22% increase in value over the last month, providing a much higher level of defense and easily outperforming the S&P 500.
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Delta Air Lines is currently a Zacks Rank #3 (Hold) with an overall VGM Score of a B. Delta Air Lines, Inc. Price, Consensus and EPS Surprise Delta Air Lines, Inc. price-consensus-eps-surprise-chart | Delta Air Lines, Inc. Quote American Air Lines Q1 Preview American Air Line AAL is slated to release its next quarterly earnings on April 21st before market open. Rolling into next week, a few other airline companies – American Air Lines AAL and United Air Lines UAL – are slated to release quarterly results as well. AAL shares have enjoyed a substantial 22% increase in value over the last month, providing a much higher level of defense and easily outperforming the S&P 500.
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Rolling into next week, a few other airline companies – American Air Lines AAL and United Air Lines UAL – are slated to release quarterly results as well. Delta Air Lines is currently a Zacks Rank #3 (Hold) with an overall VGM Score of a B. Delta Air Lines, Inc. Price, Consensus and EPS Surprise Delta Air Lines, Inc. price-consensus-eps-surprise-chart | Delta Air Lines, Inc. Quote American Air Lines Q1 Preview American Air Line AAL is slated to release its next quarterly earnings on April 21st before market open. AAL shares have enjoyed a substantial 22% increase in value over the last month, providing a much higher level of defense and easily outperforming the S&P 500.
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3653.0
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2022-04-14 00:00:00 UTC
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American Airlines (AAL) Expected to Beat Earnings Estimates: Should You Buy?
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-expected-to-beat-earnings-estimates%3A-should-you-buy
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nan
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nan
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Wall Street expects a year-over-year increase in earnings on higher revenues when American Airlines (AAL) reports results for the quarter ended March 2022. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on April 21, 2022, 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 loss of $2.48 per share in its upcoming report, which represents a year-over-year change of +42.6%.
Revenues are expected to be $8.81 billion, up 119.8% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has been revised 142.15% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
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. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
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 +1.54%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that American Airlines will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that American Airlines would post a loss of $1.51 per share when it actually produced a loss of $1.42, delivering a surprise of +5.96%.
Over the last four quarters, the company has beaten consensus EPS estimates four 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.
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Wall Street expects a year-over-year increase in earnings on higher revenues when American Airlines (AAL) reports results for the quarter ended March 2022. American Airlines Group Inc. (AAL): Free Stock Analysis Report While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
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Wall Street expects a year-over-year increase in earnings on higher revenues when American Airlines (AAL) reports results for the quarter ended March 2022. American Airlines Group Inc. (AAL): Free Stock Analysis Report Price, Consensus and EPS Surprise 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.
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Wall Street expects a year-over-year increase in earnings on higher revenues when American Airlines (AAL) reports results for the quarter ended March 2022. American Airlines Group Inc. (AAL): Free Stock Analysis Report 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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Wall Street expects a year-over-year increase in earnings on higher revenues when American Airlines (AAL) reports results for the quarter ended March 2022. American Airlines Group Inc. (AAL): Free Stock Analysis Report Price, Consensus and EPS Surprise 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.
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3654.0
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2022-04-14 00:00:00 UTC
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American Airlines (AAL) Moves 10.6% Higher: Will This Strength Last?
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-moves-10.6-higher%3A-will-this-strength-last
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nan
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nan
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American Airlines (AAL) shares ended the last trading session 10.6% higher at $18.95. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 10% gain over the past four weeks.
The stock jumped following its improved total revenue guidance for the first quarter as air-travel demand continues to rebound. American Airlines expects total revenues to decline approximately 16% in first-quarter 2022 from the comparable period in 2019. This is better than the company’s previous view of an approximate decrease of 17%.
This world's largest airline is expected to post quarterly loss of $2.47 per share in its upcoming report, which represents a year-over-year change of +42.8%. Revenues are expected to be $8.39 billion, up 109.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For American Airlines, the consensus EPS estimate for the quarter has been revised 92.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on AAL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
American Airlines is part of the Zacks Transportation - Airline industry. Southwest Airlines (LUV), another stock in the same industry, closed the last trading session 7.5% higher at $46.05. LUV has returned 1.8% in the past month.
For Southwest, the consensus EPS estimate for the upcoming report has changed -11.2% over the past month to -$0.40. This represents a change of +76.7% from what the company reported a year ago. Southwest currently has a Zacks Rank of #3 (Hold).
Just Released: Zacks Top 10 Stocks for 2022
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2022?
From inception in 2012 through 2021, the Zacks Top 10 Stocks portfolios gained an impressive +1,001.2% versus the S&P 500’s +348.7%. Now our Director of Research has combed through 4,000 companies covered by the Zacks Rank and has handpicked the best 10 tickers to buy and hold. Don’t miss your chance to get in…because the sooner you do, the more upside you stand to grab.
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
Southwest Airlines Co. (LUV): 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) shares ended the last trading session 10.6% higher at $18.95. So, make sure to keep an eye on AAL going forward to see if this recent jump can turn into more strength down the road. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines (AAL) shares ended the last trading session 10.6% higher at $18.95. So, make sure to keep an eye on AAL going forward to see if this recent jump can turn into more strength down the road.
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American Airlines (AAL) shares ended the last trading session 10.6% higher at $18.95. So, make sure to keep an eye on AAL going forward to see if this recent jump can turn into more strength down the road. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines (AAL) shares ended the last trading session 10.6% higher at $18.95. So, make sure to keep an eye on AAL going forward to see if this recent jump can turn into more strength down the road.
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3655.0
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2022-04-14 00:00:00 UTC
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Airline Stock Roundup: DAL's Upbeat Q2 Revenue View, AAL, JBLU in Focus
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-dals-upbeat-q2-revenue-view-aal-jblu-in-focus
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nan
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nan
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In the past week, Delta Air Lines DAL kick-started the first-quarter 2022 earnings season in the airline space. The Atlanta-based carrier reported a loss as Omicron dented travel plans in the early part of the first quarter of 2022. However, the carrier had delivered earnings in the last two quarters of 2021.
Nevertheless, with the threat of the Omicron variant subsiding, air-travel demand was exceptionally strong in March this year. Upbeat demand led to DAL earning a profit in the month with the adjusted operating margin reaching almost 10%. Also, driven by buoyant demand, Delta gave a bullish outlook for the second quarter of 2022.
Also, owing to the uptick in air-travel demand, American Airlines AAL gave an improved view for its first-quarter 2022 total revenues. Detailed results will be out on Apr 21. However, JetBlue Airways JBLU and Alaska Air Group’s ALK subsidiary Alaska Airlines lowered their respective capacity to ensure a smooth summer travel in the wake of staffing shortages. Latin American carrier Azul AZUL was another primary newsmaker, courtesy of its bullish March traffic report.
Recap of the Latest Top Stories
1.Delta’s first-quarter 2022 loss (excluding 25 cents from non-recurring items) of $1.23 per share was narrower than the Zacks Consensus Estimate of a loss of $1.28. Revenues came in at $9,348 million, which not only beat the Zacks Consensus Estimate of $9,063.5 million but also soared in excess of 100% from the year-ago figure. The uptick in air-travel demand in the United States can be gauged from the fact that 80.5% of first-quarter 2022 passenger revenues came from the domestic markets. Per Delta's president Glen Hauenstein, "In the June quarter, we are successfully recapturing higher fuel prices and expect our revenue recovery to accelerate to 93 to 97 percent with unit revenue up double digits compared to 2019." Operating margin (adjusted) for the June quarter of 2022 is anticipated in the 12-14% range.
Delta, currently carrying a Zacks Rank #3 (Hold), was also in the news recently owing to its fleet-modernization exercise. The story was covered in the previous week’s write-up.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2. Per a SEC filing dated Apr 12, American Airlines expects total revenues to decline approximately 16% in first-quarter 2022 from the comparable period’s number in 2019. This is better than AAL’s previous view of an approximate decrease of 17%. Amid the Russia-Ukraine war, fuel prices are soaring. AAL now estimates fuel cost per gallon to be $2.80-$2.85 in the first quarter compared with $2.73-$2.78 anticipated previously.
3. JetBlue’s management slashed its May capacity 8-10%, expecting similar capacity cuts for the remainder of summer. Per management, JBLU has hired 2,500 people so far this year but is still facing shortages. Alaska Airlines also plans to trim its schedule by 2% through the end of June due to pilot crisis. The airline already canceled several flights earlier this month due to staffing constraints.
4. In March, Azul’s consolidated traffic surged 68.6% year over year. To match the increased demand situation, AZUL is expanding its capacity. In the same month, capacity grew 52.6% year over year. Since traffic growth was more than capacity expansion, load factor (percentage of seats filled by passengers) improved 7.5 percentage points (p.p) to 78.7% last month.
Upbeat traffic in its domestic markets is leading to the rosy scenario on a consolidated basis. In March, domestic traffic and capacity improved 52.6% and 39.4%, respectively. Per Azul’s CEO John Rodgerson, "In March, we saw a strong improvement in booking trends, driven by one of the fastest corporate recoveries in the world. While we did experience some challenges from Omicron in 1Q22, we are happy to report those are now behind us and we are focused on executing our business plan for 2022, with the full recovery of corporate demand still to come and the upside from the appreciation of the real against the dollar.”
Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
Image Source: Zacks Investment Research
The table above shows that almost all the airline stocks have traded in the green over the past week. Strong air-travel demand leading to impressive revenue projections for the second quarter of 2022 from Delta and for the first quarter from American Airlines was behind the upside. The NYSE ARCA Airline Index has increased 4.9% to $80.45. Over the past six months, the NYSE ARCA Airline Index has declined 14.2%.
What's Next in the Airline Space?
With multiple airlines slated to report their first-quarter 2022 financials shortly, investors interested in the industry will keep a close eye on how they perform.
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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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
AZUL (AZUL): Free Stock Analysis Report
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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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Also, owing to the uptick in air-travel demand, American Airlines AAL gave an improved view for its first-quarter 2022 total revenues. This is better than AAL’s previous view of an approximate decrease of 17%. AAL now estimates fuel cost per gallon to be $2.80-$2.85 in the first quarter compared with $2.73-$2.78 anticipated previously.
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Also, owing to the uptick in air-travel demand, American Airlines AAL gave an improved view for its first-quarter 2022 total revenues. This is better than AAL’s previous view of an approximate decrease of 17%. AAL now estimates fuel cost per gallon to be $2.80-$2.85 in the first quarter compared with $2.73-$2.78 anticipated previously.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report Also, owing to the uptick in air-travel demand, American Airlines AAL gave an improved view for its first-quarter 2022 total revenues. This is better than AAL’s previous view of an approximate decrease of 17%.
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Also, owing to the uptick in air-travel demand, American Airlines AAL gave an improved view for its first-quarter 2022 total revenues. This is better than AAL’s previous view of an approximate decrease of 17%. AAL now estimates fuel cost per gallon to be $2.80-$2.85 in the first quarter compared with $2.73-$2.78 anticipated previously.
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3656.0
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2022-04-14 00:00:00 UTC
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Australia's Rio Tinto exits state mining lobby amid climate rift
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https://www.nasdaq.com/articles/australias-rio-tinto-exits-state-mining-lobby-amid-climate-rift
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April 14 (Reuters) - Rio Tinto RIO.AX, one of the largest Australian mining companies, on Thursday confirmed its exit from the state mining lobby group after raising concerns that its policy on expansion of coal mines did not align with the Paris Climate Agreement.
Global firms have been looking to appease regulators and shareholders by aiming for higher emission cuts across their operations to align with the Paris deal.
"After careful consideration, Rio Tinto will not renew its membership with the Queensland Resources Council (QRC) for the 2022-2023 financial year," Kellie Parker, Rio Tinto's Australia chief executive officer, said in an emailed statement, without specifying the reason for its exit.
The global miner's exit from the council comes after BHP BHP.AX had suspended its membership in 2020 with the lobby group, which had at the time campaigned against the Greens political party ahead of an election in coal-rich Queensland state.
Investor advisory firm Australasian Centre for Corporate Responsibility (ACCR) had filed in February a shareholder resolution to Rio Tinto to suspend its membership with the resource council.
"While Rio Tinto's exit from the QRC may have been triggered by ACCR's shareholder resolution, the company was under increasing pressure from its shareholders to rein in obstructive lobbying by its industry associations", ACCR said in a separate statement.
ACCR said the other members "that claim to be supportive of the Paris Agreement - including Anglo American AAL.L, BHP, Origin Energy ORG.AX and South32 S32.AX - must follow Rio Tinto and exit the QRC."
(Reporting by Navya Mittal and Indranil Sarkar in Bengaluru; Editing by Sherry Jacob-Phillips)
((navya.mittal@thomsonreuters.com; Indranil.Sarkar@thomsonreuters.com; Mobile: +91 7022132226;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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ACCR said the other members "that claim to be supportive of the Paris Agreement - including Anglo American AAL.L, BHP, Origin Energy ORG.AX and South32 S32.AX - must follow Rio Tinto and exit the QRC." The global miner's exit from the council comes after BHP BHP.AX had suspended its membership in 2020 with the lobby group, which had at the time campaigned against the Greens political party ahead of an election in coal-rich Queensland state. Investor advisory firm Australasian Centre for Corporate Responsibility (ACCR) had filed in February a shareholder resolution to Rio Tinto to suspend its membership with the resource council.
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ACCR said the other members "that claim to be supportive of the Paris Agreement - including Anglo American AAL.L, BHP, Origin Energy ORG.AX and South32 S32.AX - must follow Rio Tinto and exit the QRC." April 14 (Reuters) - Rio Tinto RIO.AX, one of the largest Australian mining companies, on Thursday confirmed its exit from the state mining lobby group after raising concerns that its policy on expansion of coal mines did not align with the Paris Climate Agreement. "After careful consideration, Rio Tinto will not renew its membership with the Queensland Resources Council (QRC) for the 2022-2023 financial year," Kellie Parker, Rio Tinto's Australia chief executive officer, said in an emailed statement, without specifying the reason for its exit.
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ACCR said the other members "that claim to be supportive of the Paris Agreement - including Anglo American AAL.L, BHP, Origin Energy ORG.AX and South32 S32.AX - must follow Rio Tinto and exit the QRC." April 14 (Reuters) - Rio Tinto RIO.AX, one of the largest Australian mining companies, on Thursday confirmed its exit from the state mining lobby group after raising concerns that its policy on expansion of coal mines did not align with the Paris Climate Agreement. "After careful consideration, Rio Tinto will not renew its membership with the Queensland Resources Council (QRC) for the 2022-2023 financial year," Kellie Parker, Rio Tinto's Australia chief executive officer, said in an emailed statement, without specifying the reason for its exit.
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ACCR said the other members "that claim to be supportive of the Paris Agreement - including Anglo American AAL.L, BHP, Origin Energy ORG.AX and South32 S32.AX - must follow Rio Tinto and exit the QRC." April 14 (Reuters) - Rio Tinto RIO.AX, one of the largest Australian mining companies, on Thursday confirmed its exit from the state mining lobby group after raising concerns that its policy on expansion of coal mines did not align with the Paris Climate Agreement. Global firms have been looking to appease regulators and shareholders by aiming for higher emission cuts across their operations to align with the Paris deal.
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3657.0
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2022-04-14 00:00:00 UTC
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Will Strong Passenger Demand Push Delta Air Lines Stock Higher Post-Earnings?
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https://www.nasdaq.com/articles/will-strong-passenger-demand-push-delta-air-lines-stock-higher-post-earnings
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The spike in benchmark oil prices from $70 in early January to $100 at present has weighed on airline stocks including Delta Air Lines (NYSE: DAL). Fuel costs account for a fifth of Delta’s operating expenses and the 50% increase is expected to make a dent on the bottom line in Q1 2022. Delta’s stock has observed a $12.6 billion contraction in market capitalization from pre-pandemic levels despite burning just $529 million of operating cash. Per annual filings, the company does not have significant fuel hedges to shield itself from an oil price surge. Considering an operating loss from high fuel prices for the quarter, investors seem to be too pessimistic on the stock despite strong passenger demand. Our interactive dashboard on Delta Air Lines Earnings Preview highlights the historical trends in revenues, earnings, valuation multiple, and forecast for Q1 2022.
Before the pandemic, Delta Air Lines’ revenues observed an average growth rate of 6% p.a. from $39.4 billion in 2016 to $47 billion in 2019. Sale of air tickets and other ancillary services such as cargo & vacation packages are key offerings by the company. Historically, top line expansion has been assisted by continued capacity growth and rising ticket prices. Moreover, the company’s net margins have remained relatively flat within the 8-10% range with a sizable change in earnings per share as the company re-purchased common stock along-with debt retirals.
Passenger Demand Remains Strong
Despite concerns of high inflation, supply chain disruptions, and likelihood of macroeconomic uncertainty due to the Russia-Ukraine war, the air travel demand remains strong as highlighted by passenger numbers at TSA checkpoints. Notably, passenger numbers are down by just 5-10% from pre-pandemic levels. On comparing Delta Air Lines’ stock performance to Allegiant Travel Company (NASDAQ: ALGT), which is an air carrier that operates in under-served U.S. cities, investors seem to be optimistic on long-term domestic travel demand.
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 2022
MTD [1] 2022
YTD [1] 2017-22
Total [2]
WPM Return 1% 12% 149%
S&P 500 Return 0% -5% 102%
Trefis Multi-Strategy Portfolio 0% -8% 262%
[1] Month-to-date and year-to-date as of 4/7/2022
[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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The spike in benchmark oil prices from $70 in early January to $100 at present has weighed on airline stocks including Delta Air Lines (NYSE: DAL). Fuel costs account for a fifth of Delta’s operating expenses and the 50% increase is expected to make a dent on the bottom line in Q1 2022. Delta’s stock has observed a $12.6 billion contraction in market capitalization from pre-pandemic levels despite burning just $529 million of operating cash.
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Our interactive dashboard on Delta Air Lines Earnings Preview highlights the historical trends in revenues, earnings, valuation multiple, and forecast for Q1 2022. Passenger Demand Remains Strong Despite concerns of high inflation, supply chain disruptions, and likelihood of macroeconomic uncertainty due to the Russia-Ukraine war, the air travel demand remains strong as highlighted by passenger numbers at TSA checkpoints. On comparing Delta Air Lines’ stock performance to Allegiant Travel Company (NASDAQ: ALGT), which is an air carrier that operates in under-served U.S. cities, investors seem to be optimistic on long-term domestic travel demand.
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Passenger Demand Remains Strong Despite concerns of high inflation, supply chain disruptions, and likelihood of macroeconomic uncertainty due to the Russia-Ukraine war, the air travel demand remains strong as highlighted by passenger numbers at TSA checkpoints. On comparing Delta Air Lines’ stock performance to Allegiant Travel Company (NASDAQ: ALGT), which is an air carrier that operates in under-served U.S. cities, investors seem to be optimistic on long-term domestic travel demand. Total [2] WPM Return 1% 12% 149% S&P 500 Return 0% -5% 102% Trefis Multi-Strategy Portfolio 0% -8% 262% [1] Month-to-date and year-to-date as of 4/7/2022 [2] Cumulative total returns since the end of 2016 Invest with Trefis Market Beating Portfolios See all Trefis Price Estimates The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Delta’s stock has observed a $12.6 billion contraction in market capitalization from pre-pandemic levels despite burning just $529 million of operating cash. Before the pandemic, Delta Air Lines’ revenues observed an average growth rate of 6% p.a. Total [2] WPM Return 1% 12% 149% S&P 500 Return 0% -5% 102% Trefis Multi-Strategy Portfolio 0% -8% 262% [1] Month-to-date and year-to-date as of 4/7/2022 [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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3658.0
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2022-04-14 00:00:00 UTC
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Stock Market News for Apr 14, 2022
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https://www.nasdaq.com/articles/stock-market-news-for-apr-14-2022
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Wall Street ended higher on Wednesday, led by a rally in growth stocks. Investors looked past the high inflation data as the corporate earnings season started off on a positive note. The 10-year Treasury yield dropped for the second straight session. All the three major indexes ended in the green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 1% or 344.23 points to close at 34,564.59. Twenty-seven components of the 30-stock index ended in the green, one remained unchanged, while two closed in the red.
The tech-heavy Nasdaq Composite lost 2% or 272.02 points to finish at 13,643.59, driven by a tech rally.
The S&P 500 climbed 1.1% or 49.14 points to end at 4,446.59. Nine of the 11 broad sectors of the benchmark index closed in the green.
The Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK) and the Materials Select Sector SPDR (XLB) rose 2.5%, 1.6% and 1.5%, respectively. The Utilities Select Sector SPDR (XLU) dropped 0.2%.
The fear-gauge CBOE Volatility Index (VIX) declined 10.1% to 21.82. A total of 10.5 billion shares were traded on Wednesday, lower than the last 20-session average of 12.3 billion. Advancers outnumbered decliners on the NYSE by a 2.92-to-1 ratio. On Nasdaq, a 2.87-to-1 ratio favored advancing issues.
Markets Upbeat on Q1 Earnings Reports
Wall Street made gains on Wednesday, shrugging off inflation warnings of the historic high Producer Price Index data. The high PPI numbers were attributed to strong demand, and the general notion remained that inflation may have already peaked. Markets were majorly driven by the initial, mostly positive, Q1 corporate earnings numbers released through the day.
Investors closely watched the earnings reports to get the hang of how well companies were managing inflationary pressures. With the overhanging apprehensions about the imminent tightening of the monetary policy already priced in, growth stocks did well, led by semiconductor stocks. Airlines stocks soared on the back of Delta Air Lines, Inc.’s DAL high Q2 forecast, which indicated that passengers will continue to fly despite higher fares.
As a result, shares of American Airlines Group Inc. AAL and Advanced Micro Devices, Inc. AMD gained 10.6%, and 2.8%, respectively. American Airlines carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
10-Year Treasury Yield Continues to Fall
On Wednesday, the 10-year Treasury yield dropped 3 basis points to close at 2.7%. This followed the release of the Producer Price Index data, which signaled continued inflation. It had touched 2.82%, its highest level since December 2018, earlier in the week. Falling yields push growth stocks up in general, but they particularly help tech stocks.
Economic Data
The U.S. Bureau of Labor Statistics reported that the Producer Price Index for final demand increased 1.4% in March, seasonally adjusted after advancing 0.9% in February.
On an unadjusted basis, final demand prices increased 11.2% for the 12 months ended March, the highest surge since November 2010.
The core PPI, which excludes food and energy prices, increased 1.1%, which is more than the estimated 0.5% for March. February’s core PPI increase was revised to 0.8%.
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Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As a result, shares of American Airlines Group Inc. AAL and Advanced Micro Devices, Inc. AMD gained 10.6%, and 2.8%, respectively. American Airlines Group Inc. (AAL): Free Stock Analysis Report Markets Upbeat on Q1 Earnings Reports Wall Street made gains on Wednesday, shrugging off inflation warnings of the historic high Producer Price Index data.
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As a result, shares of American Airlines Group Inc. AAL and Advanced Micro Devices, Inc. AMD gained 10.6%, and 2.8%, respectively. American Airlines Group Inc. (AAL): Free Stock Analysis Report 10-Year Treasury Yield Continues to Fall On Wednesday, the 10-year Treasury yield dropped 3 basis points to close at 2.7%.
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As a result, shares of American Airlines Group Inc. AAL and Advanced Micro Devices, Inc. AMD gained 10.6%, and 2.8%, respectively. American Airlines Group Inc. (AAL): Free Stock Analysis Report Markets Upbeat on Q1 Earnings Reports Wall Street made gains on Wednesday, shrugging off inflation warnings of the historic high Producer Price Index data.
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As a result, shares of American Airlines Group Inc. AAL and Advanced Micro Devices, Inc. AMD gained 10.6%, and 2.8%, respectively. American Airlines Group Inc. (AAL): Free Stock Analysis Report Nine of the 11 broad sectors of the benchmark index closed in the green.
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3659.0
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2022-04-13 00:00:00 UTC
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Stock Market Today: Start of Earnings Season Gets Stocks off the Ground
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https://www.nasdaq.com/articles/stock-market-today%3A-start-of-earnings-season-gets-stocks-off-the-ground
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U.S. equities managed to snap their slide Wednesday as the first-quarter earnings season got off to a decent start.
Delta Air Lines (DAL, +6.2%) was one of the sharpest gainers in the S&P 500 after the airline posted both strong Q1 results and delivered a cheerful Q2 forecast. DAL's $9.35 billion in revenue topped expectations for $8.92 billion, while its net loss of $1.23 per share was under the $1.27 analysts were looking for. On top of that, Delta says second-quarter revenues will recover to just 3% to 7% below the pre-pandemic levels of Q2 2019 thanks to expectations of a robust travel season.
SEE MORE 2022's Best Mutual Funds in 401(k) Retirement Plans
CEO Ed Bastian told CNBC today that Americans are "done investing in their homes and their garden and want to go see someone else's garden for a change."
The positive reaction to Delta Air Lines' earnings report gave a lift to fellow airline stocks. American Airlines Group (AAL) spiked 10.6%, while Southwest Airlines (LUV, +7.5%) and United Airlines (UAL, +5.6%) also finished the day solidly higher.
Fastenal (FAST, +2.2%) shares improved as well after reporting a profit of 47 cents per share on sales of $1.7 billion, both of which beat the Street's views.
Meanwhile, BlackRock (BLK, -0.2%), was roughly breakeven after it announced Q1 revenues of $4.7 billion that slightly missed the mark, but also better-than-expected adjusted earnings of $9.52 per share thanks to lower expenses.
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Struggling a bit more was JPMorgan Chase (JPM, -3.2%), which struck a sour note despite topping expectations. Profits of $2.76 per share on $31.59 billion in revenues were better than respective estimates of $2.69 per share and $30.86 billion, but also represented 42% and 5% year-over-year declines, respectively. Among the items weighing on JPM was a $524 million charge tied to market turbulence amid Russia's invasion of Ukraine.
"The financial sector in general is under pressure over the past few weeks, and banks are almost at the bottom of the list," says Julius de Kempenaer, senior technical analyst at charting platform StockCharts.com. "One would think that the recent rise in interest rates would, to a degree, help banks, but the weak earnings report from JPM this morning suggests otherwise. Apparently the impact of rising inflation and geopolitical influences is more than offsetting the benefits from rising rates."
SEE MORE 7 REITs Flaunting Fast-Growing Dividends
Advances in the consumer discretionary (+2.5%) and communication services (+1.5%) sectors put the Nasdaq Composite (+2.0% to 13,643) ahead of the other major indices. The S&P 500 closed 1.1% higher to 4,446, while the Dow Jones Industrial Average climbed 1.0% to 34,564.
The earnings calendar will continue Thursday, but Steve Sears, president of asset management firm Options Solutions, says that's not the only thing worth watching.
"April options expire on Thursday since the markets are closed on Friday," he says. "Options expirations have historically been mostly immaterial to the stock market, but don't tell that to investors. The growth in options trading during the COVID-19 pandemic has made options expirations as closely watched as the release of economic and inflation data."
YCharts
Other news in thestock market today
The small-cap Russell 2000 jumped back above 2,000, gaining 1.9% to 2,025.
U.S. crude oil futures jumped 3.6% to finish at $104.25 per barrel.
Gold futures rose for a fifth straight day, gaining 0.4% to settle at $1,984.70 an ounce.
Bitcoin stormed back from a recent slump, advancing 4.5% to $41,075.10. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.
Charles Schwab (SCHW) rose 4.7% after Morgan Stanley analyst Mike Cyprys elevated the financial stock to a "top pick" position. Shares are at a compelling entry point right now and SCHW should "see upward estimate revisions and greater investor appeal" as it benefits from the Federal Reserve's rate-hiking cycle and rising yields. Not only is SCHW a top pick at Morgan Stanley, but it's also one of Kiplinger's best stocks to buy for 2022.
Walmart (WMT, +2.6%) said it has hired John Rainey to replace outgoing Chief Financial Officer Brett Biggs. Rainey, who currently serves as chief financial officer at PayPal (PYPL, -2.9%), will take over the reins on June 6.
What's the Top Dow Stock Right Now?
Where should investors be positioned as the Q1 earnings season gets underway?
SEE MORE Hedge Funds' 25 Top Blue-Chip Stocks to Buy Now
Chris Haverland, global equity strategist for the Wells Fargo Investment Institute, notes that "earnings growth is expected to be concentrated in several cyclical sectors. The energy, industrials and materials sectors should lead the way, with energy earnings expected to grow by an eye-popping 255%."
However, it's possible that much of that backward-looking growth is priced into the sector right now – "forward guidance will be key as many companies continue to deal with rising input costs, a tight labor market, and continued global supply-chain constraints," Haverland adds.
More broadly speaking, however, Haverland is "most favorable" on higher-quality U.S. large-cap equities at the moment. Those wanting to follow that guidance would be hard-pressed to find much higher-quality companies than the blue chips of the Dow Jones Industrial Average – though even within the ranks of these 30 large- and mega-cap stocks, some investments look vastly superior compared to others.
Today, we've taken a fresh look at all 30 Dow Jones Industrial Average components, ranked based on the consensus analyst opinions of the dozens of pros covering each name.
SEE MORE The 22 Best ETFs to Buy for a Prosperous 2022
The views and 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 (AAL) spiked 10.6%, while Southwest Airlines (LUV, +7.5%) and United Airlines (UAL, +5.6%) also finished the day solidly higher. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. Charles Schwab (SCHW) rose 4.7% after Morgan Stanley analyst Mike Cyprys elevated the financial stock to a "top pick" position. SEE MORE Hedge Funds' 25 Top Blue-Chip Stocks to Buy Now Chris Haverland, global equity strategist for the Wells Fargo Investment Institute, notes that "earnings growth is expected to be concentrated in several cyclical sectors.
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American Airlines Group (AAL) spiked 10.6%, while Southwest Airlines (LUV, +7.5%) and United Airlines (UAL, +5.6%) also finished the day solidly higher. DAL's $9.35 billion in revenue topped expectations for $8.92 billion, while its net loss of $1.23 per share was under the $1.27 analysts were looking for. The positive reaction to Delta Air Lines' earnings report gave a lift to fellow airline stocks.
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American Airlines Group (AAL) spiked 10.6%, while Southwest Airlines (LUV, +7.5%) and United Airlines (UAL, +5.6%) also finished the day solidly higher. DAL's $9.35 billion in revenue topped expectations for $8.92 billion, while its net loss of $1.23 per share was under the $1.27 analysts were looking for. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. Charles Schwab (SCHW) rose 4.7% after Morgan Stanley analyst Mike Cyprys elevated the financial stock to a "top pick" position.
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American Airlines Group (AAL) spiked 10.6%, while Southwest Airlines (LUV, +7.5%) and United Airlines (UAL, +5.6%) also finished the day solidly higher. What's the Top Dow Stock Right Now? Where should investors be positioned as the Q1 earnings season gets underway?
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3660.0
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2022-04-13 00:00:00 UTC
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Wednesday Sector Leaders: Apparel Stores, Airlines
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https://www.nasdaq.com/articles/wednesday-sector-leaders%3A-apparel-stores-airlines
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In trading on Wednesday, apparel stores shares were relative leaders, up on the day by about 3.4%. Leading the group were shares of The Gap, up about 10.9% and shares of Lands End up about 6.2% on the day.
Also showing relative strength are airlines shares, up on the day by about 3.1% as a group, led by American Airlines Group, trading up by about 10.2% and Mesa Air Group, trading up by about 6.7% on Wednesday.
VIDEO: Wednesday Sector Leaders: Apparel Stores, Airlines
The views and 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 Wednesday, apparel stores shares were relative leaders, up on the day by about 3.4%. Also showing relative strength are airlines shares, up on the day by about 3.1% as a group, led by American Airlines Group, trading up by about 10.2% and Mesa Air Group, trading up by about 6.7% on Wednesday. VIDEO: Wednesday Sector Leaders: Apparel Stores, Airlines The views and 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 Wednesday, apparel stores shares were relative leaders, up on the day by about 3.4%. Also showing relative strength are airlines shares, up on the day by about 3.1% as a group, led by American Airlines Group, trading up by about 10.2% and Mesa Air Group, trading up by about 6.7% on Wednesday. VIDEO: Wednesday Sector Leaders: Apparel Stores, Airlines The views and 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 Wednesday, apparel stores shares were relative leaders, up on the day by about 3.4%. Also showing relative strength are airlines shares, up on the day by about 3.1% as a group, led by American Airlines Group, trading up by about 10.2% and Mesa Air Group, trading up by about 6.7% on Wednesday. VIDEO: Wednesday Sector Leaders: Apparel Stores, Airlines The views and 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 Wednesday, apparel stores shares were relative leaders, up on the day by about 3.4%. Leading the group were shares of The Gap, up about 10.9% and shares of Lands End up about 6.2% on the day. Also showing relative strength are airlines shares, up on the day by about 3.1% as a group, led by American Airlines Group, trading up by about 10.2% and Mesa Air Group, trading up by about 6.7% on Wednesday.
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2022-04-13 00:00:00 UTC
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US STOCKS-Wall St rises as recovery in growth stocks offsets mixed earnings
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https://www.nasdaq.com/articles/us-stocks-wall-st-rises-as-recovery-in-growth-stocks-offsets-mixed-earnings
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By Bansari Mayur Kamdar and Praveen Paramasivam
April 13 (Reuters) - U.S. shares rose on Wednesday as a rebound in growth stocks on falling yields and strong results from Delta Air Lines offset declines in JPMorgan after the bank reported a slump in first-quarter profit in a mixed start to the earnings season.
Megacaps Apple Inc AAPL.O and Microsoft Corp MSFT.O rose 1.7% each, while Nvidia Corp NVDA.O and Advanced Micro Devices Inc AMD.O gained 2.7% and 1.9%, respectively, after chipmakers' shares got battered this week.
The Philadelphia semiconductor index .SOX climbed 2.2% after dropping nearly 20.9% so far this year.
The benchmark U.S. 10-year Treasury yield fell, helping tech and tech-adjacent stocks that have been under pressure in the last few weeks, even as data showed producer prices increased more than expected in March amid a surge in demand for services. US/
"The market is coming to the conclusion that the March data is likely to be the peak," said Sam Stovall, chief investment strategist at CFRA Research.
Eight of the 11 major S&P 500 sectors advanced. Industrial stocks .SPLRCI gained 0.8% helped by a surge in airline shares.
Delta Air Lines Inc DAL.N jumped 4.3% after posting a smaller-than-expected quarterly loss and forecasting a return to profit in the current quarter on the back of booming travel demand.
"Delta Airlines is in the sweet spot of the reopening trade," said Art Hogan, chief market strategist at National Securities in New York.
"Investors have been taking a wait and see attitude, but it looks like a very positive response to Delta and likely the other travel and leisure names."
Other airlines such as American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O and Southwest Airlines Co LUV.N gained between 5.2% and 9.0%.
Meanwhile, capping market gains, JPMorgan Chase & Co JPM.N fell 2.9% as CEO Jamie Dimon warned of economic uncertainties arising from Russia's invasion of Ukraine and soaring inflation, after first-quarter profits at the largest U.S. bank slumped 42%.
Other big banks Citigroup Inc C.N, Wells Fargo & Co WFC.N, Goldman Sachs Group Inc GS.N, Morgan Stanley MS.N and Bank of America Corp BAC.N, which report later this week and next week, fell between 0.2% and 1.0%.
At 12:23 p.m. ET, the Dow Jones Industrial Average .DJI was up 189.79 points, or 0.55%, at 34,410.15, the S&P 500 .SPX was up 34.01 points, or 0.77%, at 4,431.46, and the Nasdaq Composite .IXIC was up 215.23 points, or 1.61%, at 13,586.81.
Analysts expect S&P 500 earnings to have increased by about 6% in the first quarter, compared to the 32.1% jump in the fourth quarter of 2021, according to IBES data from Refinitiv, as an aggressive Fed, soaring inflation and geopolitical uncertainty due to the Ukraine conflict muddies the outlook for the earnings season.
Advancing issues outnumbered decliners for a 2.84-to-1 ratio on the NYSE and a 2.75-to-1 ratio on the Nasdaq.
The S&P index recorded 17 new 52-week highs and 11 new lows, while the Nasdaq recorded 34 new highs and 141 new lows.
(Reporting by Bansari Mayur Kamdar and Praveen Paramasivam in Bengaluru; Editing by Shounak Dasgupta)
((BansariMayur.Kamdar@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other airlines such as American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O and Southwest Airlines Co LUV.N gained between 5.2% and 9.0%. By Bansari Mayur Kamdar and Praveen Paramasivam April 13 (Reuters) - U.S. shares rose on Wednesday as a rebound in growth stocks on falling yields and strong results from Delta Air Lines offset declines in JPMorgan after the bank reported a slump in first-quarter profit in a mixed start to the earnings season. The benchmark U.S. 10-year Treasury yield fell, helping tech and tech-adjacent stocks that have been under pressure in the last few weeks, even as data showed producer prices increased more than expected in March amid a surge in demand for services.
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Other airlines such as American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O and Southwest Airlines Co LUV.N gained between 5.2% and 9.0%. By Bansari Mayur Kamdar and Praveen Paramasivam April 13 (Reuters) - U.S. shares rose on Wednesday as a rebound in growth stocks on falling yields and strong results from Delta Air Lines offset declines in JPMorgan after the bank reported a slump in first-quarter profit in a mixed start to the earnings season. Industrial stocks .SPLRCI gained 0.8% helped by a surge in airline shares.
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Other airlines such as American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O and Southwest Airlines Co LUV.N gained between 5.2% and 9.0%. By Bansari Mayur Kamdar and Praveen Paramasivam April 13 (Reuters) - U.S. shares rose on Wednesday as a rebound in growth stocks on falling yields and strong results from Delta Air Lines offset declines in JPMorgan after the bank reported a slump in first-quarter profit in a mixed start to the earnings season. Analysts expect S&P 500 earnings to have increased by about 6% in the first quarter, compared to the 32.1% jump in the fourth quarter of 2021, according to IBES data from Refinitiv, as an aggressive Fed, soaring inflation and geopolitical uncertainty due to the Ukraine conflict muddies the outlook for the earnings season.
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Other airlines such as American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O and Southwest Airlines Co LUV.N gained between 5.2% and 9.0%. By Bansari Mayur Kamdar and Praveen Paramasivam April 13 (Reuters) - U.S. shares rose on Wednesday as a rebound in growth stocks on falling yields and strong results from Delta Air Lines offset declines in JPMorgan after the bank reported a slump in first-quarter profit in a mixed start to the earnings season. Industrial stocks .SPLRCI gained 0.8% helped by a surge in airline shares.
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2022-04-13 00:00:00 UTC
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4 Top Stock Trades for Thursday: JPM, ABNB, AAL, UNH
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https://www.nasdaq.com/articles/4-top-stock-trades-for-thursday%3A-jpm-abnb-aal-unh
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
After several consecutive down days, the bulls came to play on Wednesday with stocks enjoying a solid rally. With that in mind, let’s look at a few top stock trades for Thursday — the last trading day of this holiday-shortened trading week. It’s also the monthly options expiration, for what it’s worth.
Top Stock Trades for Tomorrow No. 1: JPMorgan (JPM)
Click to Enlarge
Source: Chart courtesy of TrendSpider
JPMorgan (NYSE:JPM) kicked off bank earnings on Wednesday, reporting a bottom-line miss. In turn, JPM stock fell 3.2% on the results.
In my pre-earnings assessment, the $125 to $128 area was notable. That’s where prior support came into play, along with the 50% retracement of the post-Covid rally and the 200-week moving average.
In other words, this area is significant.
The stock also has some bullish divergence on the RSI measure (blue arrow), while trading 26% below its all-time high. If it finds support, look for a potential gap-fill up to $130.70. Above that puts its shorter term moving averages in play.
7 Stocks to Add to Your April Must-Buy List
On the downside, though, a break of $124.50 could open the door down to the $113 to $115 area, where JPMorgan stock finds the 61.8% retracement.
Top Stock Trades for Tomorrow No. 2: Airbnb (ABNB)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Airbnb (NASDAQ:ABNB) came to life on Wednesday, popping 7.3% on the day. It’s rocketing off the weekly VWAP measure and the 200-day, clearing its short-term moving averages in the process.
On the upside, let’s see if ABNB stock can push higher, with airline and travel stocks. If it can continue high, the $178 to $180 zone is in play, which is last month’s high and downtrend resistance (blue line).
Above that opens the door to the $187 area.
On the downside, however, $157.50 is the line in the sand. If Airbnb loses that level, $151.50 or lower is in play.
Top Stock Trades for Tomorrow No. 3: American Airlines (AAL)
Click to Enlarge
Source: Chart courtesy of TrendSpider
Speaking of airline stocks, American Airlines (NASDAQ:AAL) is powering higher as Delta Air Lines (NYSE:DAL) rallied on earnings.
The move is not only putting AAL stock in a monthly-up rotation over the March highs, but it’s also breaking it out of channel resistance. Unfortunately, the charts are still a bit messy as it contends with the 200-day.
If American Air stock can clear the 50% retracement and the weekly VWAP measure, $20.75 to $21 could be in play next — which is the 61.8% retracement.
3 Tech Stocks That Could Take Off in Q2
That said, those who are bearish on the airlines could consider selling into this rally given the number of overhead hurdles. I’m not one of them, though.
Top Trades for Tomorrow No. 4: UnitedHealth Group (UNH)
Click to Enlarge
Source: Chart courtesy of TrendSpider
UnitedHealth Group (NYSE:UNH) is up more than 17% off the February low and has been powering higher, up in five of the past seven weeks. One of those “down” weeks was a loss of just 0.09% too — so let’s call it flat.
With Wednesday’s action, the stock is pulling back into the 10-day moving average and bouncing. The kicker? UNH stock will report earnings before the open on Thursday.
If it rallies on earnings, look for $548 to $550 on the upside. That’s followed by a possible move to $560 to $562, where it finds the 161.8% extension.
On the downside, though, I want to see if UnitedHealth can find its footing near $520 and the 21-day moving average. Below that will put the 10-week moving average in play.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
The post 4 Top Stock Trades for Thursday: JPM, ABNB, AAL, UNH appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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3: American Airlines (AAL) Click to Enlarge Source: Chart courtesy of TrendSpider Speaking of airline stocks, American Airlines (NASDAQ:AAL) is powering higher as Delta Air Lines (NYSE:DAL) rallied on earnings. The move is not only putting AAL stock in a monthly-up rotation over the March highs, but it’s also breaking it out of channel resistance.
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Click to Enlarge Source: Chart courtesy of TrendSpider Speaking of airline stocks, American Airlines (NASDAQ:AAL) is powering higher as Delta Air Lines (NYSE:DAL) rallied on earnings. 3: American Airlines (AAL) The move is not only putting AAL stock in a monthly-up rotation over the March highs, but it’s also breaking it out of channel resistance.
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Click to Enlarge Source: Chart courtesy of TrendSpider Speaking of airline stocks, American Airlines (NASDAQ:AAL) is powering higher as Delta Air Lines (NYSE:DAL) rallied on earnings. 3: American Airlines (AAL) The move is not only putting AAL stock in a monthly-up rotation over the March highs, but it’s also breaking it out of channel resistance.
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The post 4 Top Stock Trades for Thursday: JPM, ABNB, AAL, UNH appeared first on InvestorPlace. 3: American Airlines (AAL) Click to Enlarge Source: Chart courtesy of TrendSpider Speaking of airline stocks, American Airlines (NASDAQ:AAL) is powering higher as Delta Air Lines (NYSE:DAL) rallied on earnings.
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2022-04-13 00:00:00 UTC
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American Airlines Group Breaks Above 200-Day Moving Average - Bullish for AAL
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https://www.nasdaq.com/articles/american-airlines-group-breaks-above-200-day-moving-average-bullish-for-aal
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In trading on Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $18.80, changing hands as high as $18.87 per share. American Airlines Group Inc shares are currently trading up about 9.9% 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 $12.4401 per share, with $26.04 as the 52 week high point — that compares with a last trade of $18.82. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com
Free Report: Top 7%+ Dividends (paid monthly)
Click here to find out which 9 other stocks recently crossed above their 200 day moving average »
The views and 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 Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $18.80, changing hands as high as $18.87 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 $12.4401 per share, with $26.04 as the 52 week high point — that compares with a last trade of $18.82. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and 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 Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $18.80, changing hands as high as $18.87 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 $12.4401 per share, with $26.04 as the 52 week high point — that compares with a last trade of $18.82. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and 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 Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $18.80, changing hands as high as $18.87 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 $12.4401 per share, with $26.04 as the 52 week high point — that compares with a last trade of $18.82. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and 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 Wednesday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $18.80, changing hands as high as $18.87 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 $12.4401 per share, with $26.04 as the 52 week high point — that compares with a last trade of $18.82. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com Free Report: Top 7%+ Dividends (paid monthly) Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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3664.0
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2022-04-13 00:00:00 UTC
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American Airlines (AAL) Lifts Q1 Revenue View on Upbeat Demand
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https://www.nasdaq.com/articles/american-airlines-aal-lifts-q1-revenue-view-on-upbeat-demand
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American Airlines AAL improved its total revenue guidance for the first quarter as air-travel demand continues to rebound. However, with rising fuel prices and labor costs, the company increased unit cost guidance and fuel price estimate.
Per a SEC filing dated Apr 12, American Airlines expects total revenues to decline approximately 16% in first-quarter 2022 from the comparable period in 2019. This is better than the company’s previous view of an approximate decrease of 17%.
Amid the Russia-Ukraine war, fuel prices are soaring. AAL now estimates fuel cost per gallon to be $2.80-$2.85 in the first quarter compared with $2.73-$2.78 anticipated previously.
American Airlines Group Inc. Price
American Airlines Group Inc. price | American Airlines Group Inc. Quote
With travel demand rebounding, airlines are boosting hiring efforts. This is pushing up labor costs. American Airlines predicts cost per available seat mile (CASM), excluding fuel and net special items, to increase 12-13% in the first quarter from the 2019 level, compared with 11-13% rise anticipated previously.
Capacity, measured by available seat miles, is expected to decline 10.7% in the first quarter from the 2019 level compared with a fall of 10-12% anticipated earlier.
For the first quarter, American Airlines forecasts pre-tax margin of (24.4%)-(23.1%), while adjusted pre-tax margin is estimated to be (22.6%)-(21.3%).
AAL expects to end the first quarter with total available liquidity of approximately $15.5 billion.
Zacks Rank & Key Picks
American Airlines carries a Zacks Rank #3 (Hold). Some better-ranked stocks within the broader Transportation sector are as follows:
Golar LNG Limited GLNG carries a Zacks Rank #1 (Strong Buy). The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the past four quarters while missing the same in one. The average beat was 49.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Golar LNG have rallied more than 100% in a year’s time.
Matson MATX also carries a Zacks Rank #1. The company’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters (in-line in one), the average beat being 3.6%.
Shares of Matson have gained more than 25% in a year’s time.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
Matson, Inc. (MATX): Free Stock Analysis Report
Golar LNG Limited (GLNG): 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 improved its total revenue guidance for the first quarter as air-travel demand continues to rebound. AAL now estimates fuel cost per gallon to be $2.80-$2.85 in the first quarter compared with $2.73-$2.78 anticipated previously. AAL expects to end the first quarter with total available liquidity of approximately $15.5 billion.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines AAL improved its total revenue guidance for the first quarter as air-travel demand continues to rebound. AAL now estimates fuel cost per gallon to be $2.80-$2.85 in the first quarter compared with $2.73-$2.78 anticipated previously.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines AAL improved its total revenue guidance for the first quarter as air-travel demand continues to rebound. AAL now estimates fuel cost per gallon to be $2.80-$2.85 in the first quarter compared with $2.73-$2.78 anticipated previously.
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AAL now estimates fuel cost per gallon to be $2.80-$2.85 in the first quarter compared with $2.73-$2.78 anticipated previously. American Airlines AAL improved its total revenue guidance for the first quarter as air-travel demand continues to rebound. AAL expects to end the first quarter with total available liquidity of approximately $15.5 billion.
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3665.0
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2022-04-13 00:00:00 UTC
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Why Delta Has Travel Stocks Flying Today
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https://www.nasdaq.com/articles/why-delta-has-travel-stocks-flying-today
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What happened
What Delta Air Lines (NYSE: DAL) said when it reported earnings today is reverberating throughout the travel sector. The quarterly report has Delta's stock on the rise this morning, and it's bringing other names along for the ride. As of 10:28 a.m. ET, Delta shares were 4.2% higher, while the stocks of fellow carrier American Airlines Group (NASDAQ: AAL) and cruise operator Carnival (NYSE: CCL) (NYSE: CUK) were up 8.2% and 4.5%, respectively.
So what
The travel industry has seen a recovery from the pandemic come in fits and starts. Surges of the delta and omicron COVID-19 variants have held back the pace of a rebound in consumer travel. On top of that, rising energy prices have increased costs. But Delta said today that consumers are back to booking trips, and it has been enough to overcome the surge in fuel costs. While Delta still reported a $940 million net loss for the first quarter, it importantly said that it returned to profitability in March.
Image source: Getty Images.
Now what
Delta said it achieved a positive operating margin in March of almost 10%, and notably sees operating margin in the range of 12% to 14% in the current quarter. In the second quarter, Delta expects to be at about 84% capacity compared to the pre-pandemic level of 2019.
Delta president Glen Hauenstein also said something that has shares of American Airlines performing even better today. He noted "an accelerating return of business and international travel." American relies more heavily than most airlines on business and international demand, and that statement bodes well for what it says in its quarterly update for investors coming up on April 21.
The news from Delta also shifted sentiment for cruise operator Carnival. Last month, Carnival reported a net loss of $1.9 billion for its fiscal first quarter, ended Feb. 28. The company said in a statement that "the increased uncertainty given the current invasion of Ukraine, including its effect on the price of fuel," is having a material impact on its business.
Fast forward three weeks and Delta's comments have put a new perspective on the dynamics of the recovery for Carnival and others. At the very least, investors likely feel the travel industry has turned the corner even with several remaining challenges. They are showing support for stocks in the sector today as a result.
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Howard Smith has no position in any of the stocks mentioned. The Motley Fool recommends Carnival and Delta Air Lines. 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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ET, Delta shares were 4.2% higher, while the stocks of fellow carrier American Airlines Group (NASDAQ: AAL) and cruise operator Carnival (NYSE: CCL) (NYSE: CUK) were up 8.2% and 4.5%, respectively. What happened What Delta Air Lines (NYSE: DAL) said when it reported earnings today is reverberating throughout the travel sector. American relies more heavily than most airlines on business and international demand, and that statement bodes well for what it says in its quarterly update for investors coming up on April 21.
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ET, Delta shares were 4.2% higher, while the stocks of fellow carrier American Airlines Group (NASDAQ: AAL) and cruise operator Carnival (NYSE: CCL) (NYSE: CUK) were up 8.2% and 4.5%, respectively. What happened What Delta Air Lines (NYSE: DAL) said when it reported earnings today is reverberating throughout the travel sector. The Motley Fool recommends Carnival and Delta Air Lines.
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ET, Delta shares were 4.2% higher, while the stocks of fellow carrier American Airlines Group (NASDAQ: AAL) and cruise operator Carnival (NYSE: CCL) (NYSE: CUK) were up 8.2% and 4.5%, respectively. 10 stocks we like better than Delta Air Lines When our award-winning analyst team has a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of April 7, 2022 Howard Smith has no position in any of the stocks mentioned.
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ET, Delta shares were 4.2% higher, while the stocks of fellow carrier American Airlines Group (NASDAQ: AAL) and cruise operator Carnival (NYSE: CCL) (NYSE: CUK) were up 8.2% and 4.5%, respectively. So what The travel industry has seen a recovery from the pandemic come in fits and starts. While Delta still reported a $940 million net loss for the first quarter, it importantly said that it returned to profitability in March.
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3666.0
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2022-04-13 00:00:00 UTC
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Pre-Market Most Active for Apr 13, 2022 : AAL, TQQQ, SQQQ, DAL, SRRA, QQQ, BBBY, CCL, JPM, NIO, TWTR, DIDI
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-for-apr-13-2022-%3A-aal-tqqq-sqqq-dal-srra-qqq-bbby-ccl-jpm-nio-twtr
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The NASDAQ 100 Pre-Market Indicator is up 32.93 to 13,973.17. The total Pre-Market volume is currently 37,419,392 shares traded.
The following are the most active stocks for the pre-market session:
American Airlines Group, Inc. (AAL) is +0.77 at $17.90, with 2,260,500 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2022. The consensus EPS forecast is $-2.47. AAL's current last sale is 91.79% of the target price of $19.5.
ProShares UltraPro QQQ (TQQQ) is +0.2 at $47.74, with 2,089,558 shares traded. This represents a 20.68% increase from its 52 Week Low.
ProShares UltraPro Short QQQ (SQQQ) is -0.2 at $40.19, with 1,848,841 shares traded. This represents a 42.77% increase from its 52 Week Low.
Delta Air Lines, Inc. (DAL) is +2.24 at $40.86, with 1,242,672 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2022. The consensus EPS forecast is $-1.27. As reported by Zacks, the current mean recommendation for DAL is in the "buy range".
Sierra Oncology, Inc. (SRRA) is +14.84 at $54.36, with 1,082,041 shares traded. As reported by Zacks, the current mean recommendation for SRRA is in the "strong buy range".
Invesco QQQ Trust, Series 1 (QQQ) is +0.64 at $340.09, with 1,076,375 shares traded. This represents a 7.62% increase from its 52 Week Low.
Bed Bath & Beyond Inc. (BBBY) is -1.4855 at $16.48, with 702,666 shares traded. BBBY's current last sale is 109.9% of the target price of $15.
Carnival Corporation (CCL) is +0.26 at $18.77, with 633,653 shares traded. CCL's current last sale is 84.36% of the target price of $22.25.
J P Morgan Chase & Co (JPM) is -4.56 at $126.98, with 629,469 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2022. The consensus EPS forecast is $2.76. Smarter Analyst Reports: EVgo’s PlugShare Platform Crosses 1M Downloads in 2021
NIO Inc. (NIO) is +0.14 at $19.60, with 617,024 shares traded. As reported by Zacks, the current mean recommendation for NIO is in the "buy range".
Twitter, Inc. (TWTR) is +0.18 at $44.66, with 389,975 shares traded. TWTR's current last sale is 79.75% of the target price of $56.
DiDi Global Inc. (DIDI) is +0.02 at $2.48, with 321,652 shares traded. DIDI's current last sale is 15.9% of the target price of $15.6.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2022. American Airlines Group, Inc. (AAL) is +0.77 at $17.90, with 2,260,500 shares traded. AAL's current last sale is 91.79% of the target price of $19.5.
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Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2022. American Airlines Group, Inc. (AAL) is +0.77 at $17.90, with 2,260,500 shares traded. AAL's current last sale is 91.79% of the target price of $19.5.
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Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Mar 2022. American Airlines Group, Inc. (AAL) is +0.77 at $17.90, with 2,260,500 shares traded. AAL's current last sale is 91.79% of the target price of $19.5.
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AAL's current last sale is 91.79% of the target price of $19.5. American Airlines Group, Inc. (AAL) is +0.77 at $17.90, with 2,260,500 shares traded. The NASDAQ 100 Pre-Market Indicator is up 32.93 to 13,973.17.
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3667.0
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2022-04-13 00:00:00 UTC
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US STOCKS-Wall St ticks higher as recovery in growth stocks offsets mixed earnings
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-st-ticks-higher-as-recovery-in-growth-stocks-offsets-mixed-earnings
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For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Delta Air Lines jumps on profit forecast
BlackRock up after profit beats estimates
JPMorgan down after profit falls 42%
PPI up 11.2% for March vs est 10.6%
Indexes up: Dow 0.16%, S&P 0.22%, Nasdaq 0.89%
Updates prices to open
By Bansari Mayur Kamdar and Praveen Paramasivam
April 13 (Reuters) - U.S. shares rose on Wednesday as a recovery in growth stocks and strong results from Delta Air Lines offset declines in JPMorgan after the bank reported a slump in quarterly profit.
Megacaps Apple Inc AAPL.O and Meta Platforms Inc FB.O rose 0.6% each, while Nvidia Corp NVDA.O and Advanced Micro Devices Inc AMD.O rose 2.4% and 2.3%, respectively, after chipmakers' shares got battered this week.
The Philadelphia semiconductor index .SOX dropped nearly 21.8% and the tech-heavy Nasdaq .IXIC lost 14% so far this year as market-leading growth and technology stocks came under pressure on signals from the U.S. Federal Reserve that it will hike rates aggressively to control soaring inflation.
Eight of the 11 major S&P 500 sectors advanced in early trading, with industrial stocks .SPLRCI leading gains helped by a surge in airline shares.
Delta Air Lines Inc DAL.N jumped 5.8% after it forecast a return to profit in the current quarter as airline travel demand reaches record highs.
Other airlines such as American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O and Southwest Airlines Co LUV.N gained between 7.2% and 9.9%.
Meanwhile, capping market gains, JPMorgan Chase & Co JPM.N fell 2.8% after reporting a 42% drop in quarterly profit as the Ukraine crisis and decades-high inflation stalled dealmaking activity at the bank.
"When you look at results versus expectations and a stock that was doing very well in the earlier part of the year and now down year-to-date, I would say a lot of this news is baked in," said Art Hogan, chief market strategist at National Securities in New York.
"Coming into this earnings report, the market has done a pretty appropriate job of looking at where some of the shortfalls might be."
Other big banks Citigroup Inc C.N, Wells Fargo & Co WFC.N, Goldman Sachs Group Inc GS.N, Morgan Stanley MS.N and Bank of America Corp BAC.N, which report later this week and next, fell between 0.2% and 1.1%.
Analysts expect S&P 500 earnings to have increased by 6.4% in the first quarter, compared to the 32.1% jump in the fourth-quarter of 2021, according to IBES data from Refinitiv, as an aggressive Fed, soaring inflation and geopolitical uncertainty due to the Ukraine conflict muddies the outlook for the earnings season.
At 10:16 a.m. ET, the Dow Jones Industrial Average .DJI was up 55.09 points, or 0.16%, at 34,275.45, the S&P 500 .SPX was up 9.75 points, or 0.22%, at 4,407.20, and the Nasdaq Composite .IXIC was up 119.02 points, or 0.89%, at 13,490.60.
Data on Wednesday showed producer prices increased more than expected in March amid a surge in demand for services, suggesting inflation could remain high for a while.
BlackRock Inc BLK.N inched up after posting a better-than-expected profit as the world's largest asset manager benefited from investors pouring money into its various index-traded and active funds.
Advancing issues outnumbered decliners for a 2.03-to-1 ratio on the NYSE and a 2.29-to-1 ratio on the Nasdaq.
The S&P index recorded 16 new 52-week highs and 11 new lows, while the Nasdaq recorded 32 new highs and 113 new lows.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Shounak Dasgupta)
((BansariMayur.Kamdar@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other airlines such as American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O and Southwest Airlines Co LUV.N gained between 7.2% and 9.9%. The Philadelphia semiconductor index .SOX dropped nearly 21.8% and the tech-heavy Nasdaq .IXIC lost 14% so far this year as market-leading growth and technology stocks came under pressure on signals from the U.S. Federal Reserve that it will hike rates aggressively to control soaring inflation. Meanwhile, capping market gains, JPMorgan Chase & Co JPM.N fell 2.8% after reporting a 42% drop in quarterly profit as the Ukraine crisis and decades-high inflation stalled dealmaking activity at the bank.
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Other airlines such as American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O and Southwest Airlines Co LUV.N gained between 7.2% and 9.9%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Delta Air Lines jumps on profit forecast BlackRock up after profit beats estimates JPMorgan down after profit falls 42% PPI up 11.2% for March vs est 10.6% Indexes up: Dow 0.16%, S&P 0.22%, Nasdaq 0.89% Updates prices to open By Bansari Mayur Kamdar and Praveen Paramasivam April 13 (Reuters) - U.S. shares rose on Wednesday as a recovery in growth stocks and strong results from Delta Air Lines offset declines in JPMorgan after the bank reported a slump in quarterly profit. Delta Air Lines Inc DAL.N jumped 5.8% after it forecast a return to profit in the current quarter as airline travel demand reaches record highs.
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Other airlines such as American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O and Southwest Airlines Co LUV.N gained between 7.2% and 9.9%. For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window Delta Air Lines jumps on profit forecast BlackRock up after profit beats estimates JPMorgan down after profit falls 42% PPI up 11.2% for March vs est 10.6% Indexes up: Dow 0.16%, S&P 0.22%, Nasdaq 0.89% Updates prices to open By Bansari Mayur Kamdar and Praveen Paramasivam April 13 (Reuters) - U.S. shares rose on Wednesday as a recovery in growth stocks and strong results from Delta Air Lines offset declines in JPMorgan after the bank reported a slump in quarterly profit. Delta Air Lines Inc DAL.N jumped 5.8% after it forecast a return to profit in the current quarter as airline travel demand reaches record highs.
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Other airlines such as American Airlines Group Inc AAL.O, United Airlines Holdings Inc UAL.O and Southwest Airlines Co LUV.N gained between 7.2% and 9.9%. Delta Air Lines Inc DAL.N jumped 5.8% after it forecast a return to profit in the current quarter as airline travel demand reaches record highs. Meanwhile, capping market gains, JPMorgan Chase & Co JPM.N fell 2.8% after reporting a 42% drop in quarterly profit as the Ukraine crisis and decades-high inflation stalled dealmaking activity at the bank.
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3668.0
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2022-04-13 00:00:00 UTC
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S&P 500 Movers: PYPL, AAL
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https://www.nasdaq.com/articles/sp-500-movers%3A-pypl-aal
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In early trading on Wednesday, shares of American Airlines Group topped the list of the day's best performing components of the S&P 500 index, trading up 7.0%. Year to date, American Airlines Group registers a 2.0% gain.
And the worst performing S&P 500 component thus far on the day is PayPal Holdings, trading down 3.1%. PayPal Holdings is lower by about 44.4% looking at the year to date performance.
Two other components making moves today are JPMorgan Chase, trading down 2.5%, and Discovery, trading up 5.8% on the day.
VIDEO: S&P 500 Movers: PYPL, AAL
The views and 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: PYPL, AAL 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, American Airlines Group registers a 2.0% gain. And the worst performing S&P 500 component thus far on the day is PayPal Holdings, trading down 3.1%.
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VIDEO: S&P 500 Movers: PYPL, AAL 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 American Airlines Group topped the list of the day's best performing components of the S&P 500 index, trading up 7.0%. Year to date, American Airlines Group registers a 2.0% gain.
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VIDEO: S&P 500 Movers: PYPL, AAL 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 American Airlines Group topped the list of the day's best performing components of the S&P 500 index, trading up 7.0%. And the worst performing S&P 500 component thus far on the day is PayPal Holdings, trading down 3.1%.
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VIDEO: S&P 500 Movers: PYPL, AAL 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 American Airlines Group topped the list of the day's best performing components of the S&P 500 index, trading up 7.0%. And the worst performing S&P 500 component thus far on the day is PayPal Holdings, trading down 3.1%.
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3669.0
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2022-04-12 00:00:00 UTC
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American Airlines sees higher quarterly costs as labor, jet fuel prices soar
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https://www.nasdaq.com/articles/american-airlines-sees-higher-quarterly-costs-as-labor-jet-fuel-prices-soar
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Recasts lede, adds details
April 12 (Reuters) - American Airlines AAL.O expects higher costs in the current quarter amid higher labor and jet fuel expenses.
As demand returns, carriers are shelling out more to attract new staff as well as retain the existing crew amid looming worker shortage. Rising jet fuel prices around the world caused by Ukraine crisis are also impacting these carriers.
American projects a pretax loss, excluding special items, in the range of 21.3% to 22.6% for the first quarter.
The carrier said it expects its CASM (cost per available seat miles) to be up between 12% and 13% versus 11% and 13% predicted last month, excluding costs related to fuel and net special items. Overall CASM is estimated to be at least 16% higher than in the first quarter of 2019.
Shares of American fell about 1% to $16.81 in early trade.
The airline raised its jet fuel expenses for the quarter. It now expects to pay an average of between $2.80 and $2.85 per gallon, higher than its previous estimate of $2.73 and $2.78 per gallon.
Meanwhile, American expects quarterly total revenue to fall about 16% compared to pre-pandemic levels, as inflationary pressures impact consumer demand.
(Reporting by Nathan Gomes and Aishwarya Nair in Bengaluru; Editing by Saumyadeb Chakrabarty and Krishna Chandra Eluri)
((Nathan.Gomes@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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Recasts lede, adds details April 12 (Reuters) - American Airlines AAL.O expects higher costs in the current quarter amid higher labor and jet fuel expenses. As demand returns, carriers are shelling out more to attract new staff as well as retain the existing crew amid looming worker shortage. Rising jet fuel prices around the world caused by Ukraine crisis are also impacting these carriers.
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Recasts lede, adds details April 12 (Reuters) - American Airlines AAL.O expects higher costs in the current quarter amid higher labor and jet fuel expenses. American projects a pretax loss, excluding special items, in the range of 21.3% to 22.6% for the first quarter. Meanwhile, American expects quarterly total revenue to fall about 16% compared to pre-pandemic levels, as inflationary pressures impact consumer demand.
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Recasts lede, adds details April 12 (Reuters) - American Airlines AAL.O expects higher costs in the current quarter amid higher labor and jet fuel expenses. The carrier said it expects its CASM (cost per available seat miles) to be up between 12% and 13% versus 11% and 13% predicted last month, excluding costs related to fuel and net special items. Meanwhile, American expects quarterly total revenue to fall about 16% compared to pre-pandemic levels, as inflationary pressures impact consumer demand.
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Recasts lede, adds details April 12 (Reuters) - American Airlines AAL.O expects higher costs in the current quarter amid higher labor and jet fuel expenses. The carrier said it expects its CASM (cost per available seat miles) to be up between 12% and 13% versus 11% and 13% predicted last month, excluding costs related to fuel and net special items. Overall CASM is estimated to be at least 16% higher than in the first quarter of 2019.
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3670.0
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2022-04-12 00:00:00 UTC
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American Airlines Lifts Q1 Revenue Outlook - Quick Facts
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https://www.nasdaq.com/articles/american-airlines-lifts-q1-revenue-outlook-quick-facts
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(RTTNews) - American Airlines disclosed in a regulatory filing that it expects its first quarter total revenue to be down approximately 16% versus the first quarter of 2019, which is better than the company's recent guidance of down approximately 17%.
The company flew 59.5 billion total available seat miles in the first quarter, down 10.7% versus the first quarter of 2019.
The company expects its first quarter Cost per available seat mile or CASM, excluding fuel and net special items, to be up between 12% and 13% versus the first quarter of 2019, compared to its previous guidance of up between 11% and 13%.
The Company expects to end the first quarter with approximately $15.5 billion in total available liquidity.
The company expects to report net special items of approximately $160 million in the first quarter before the effect of taxes. Net special items principally include a non-cash impairment charge to write down the carrying value of the company's retired Airbus A330 fleet to the estimated fair value due to current market conditions for certain used aircraft.
The company retired its Airbus A330 fleet in 2020 as a result of the decline in demand for air travel due to the COVID-19 pandemic.
The views and 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 company expects to report net special items of approximately $160 million in the first quarter before the effect of taxes. Net special items principally include a non-cash impairment charge to write down the carrying value of the company's retired Airbus A330 fleet to the estimated fair value due to current market conditions for certain used aircraft. The company retired its Airbus A330 fleet in 2020 as a result of the decline in demand for air travel due to the COVID-19 pandemic.
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The company flew 59.5 billion total available seat miles in the first quarter, down 10.7% versus the first quarter of 2019. The company expects to report net special items of approximately $160 million in the first quarter before the effect of taxes. Net special items principally include a non-cash impairment charge to write down the carrying value of the company's retired Airbus A330 fleet to the estimated fair value due to current market conditions for certain used aircraft.
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(RTTNews) - American Airlines disclosed in a regulatory filing that it expects its first quarter total revenue to be down approximately 16% versus the first quarter of 2019, which is better than the company's recent guidance of down approximately 17%. The company flew 59.5 billion total available seat miles in the first quarter, down 10.7% versus the first quarter of 2019. The company expects its first quarter Cost per available seat mile or CASM, excluding fuel and net special items, to be up between 12% and 13% versus the first quarter of 2019, compared to its previous guidance of up between 11% and 13%.
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(RTTNews) - American Airlines disclosed in a regulatory filing that it expects its first quarter total revenue to be down approximately 16% versus the first quarter of 2019, which is better than the company's recent guidance of down approximately 17%. The company expects its first quarter Cost per available seat mile or CASM, excluding fuel and net special items, to be up between 12% and 13% versus the first quarter of 2019, compared to its previous guidance of up between 11% and 13%. The Company expects to end the first quarter with approximately $15.5 billion in total available liquidity.
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3671.0
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2022-04-12 00:00:00 UTC
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American Airlines expects Q1 revenue to be down 16% from pre-pandemic levels
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https://www.nasdaq.com/articles/american-airlines-expects-q1-revenue-to-be-down-16-from-pre-pandemic-levels
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April 12 (Reuters) - American Airlines AAL.O said on Tuesday it expects first-quarter total revenue to be down about 16% compared to pre-pandemic levels, as airlines struggle to meet rising travel demand with limited staffing.
(Reporting by Nathan Gomes in Bengaluru; Editing by Saumyadeb Chakrabarty)
((Nathan.Gomes@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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April 12 (Reuters) - American Airlines AAL.O said on Tuesday it expects first-quarter total revenue to be down about 16% compared to pre-pandemic levels, as airlines struggle to meet rising travel demand with limited staffing. (Reporting by Nathan Gomes in Bengaluru; Editing by Saumyadeb Chakrabarty) ((Nathan.Gomes@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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April 12 (Reuters) - American Airlines AAL.O said on Tuesday it expects first-quarter total revenue to be down about 16% compared to pre-pandemic levels, as airlines struggle to meet rising travel demand with limited staffing. (Reporting by Nathan Gomes in Bengaluru; Editing by Saumyadeb Chakrabarty) ((Nathan.Gomes@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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April 12 (Reuters) - American Airlines AAL.O said on Tuesday it expects first-quarter total revenue to be down about 16% compared to pre-pandemic levels, as airlines struggle to meet rising travel demand with limited staffing. (Reporting by Nathan Gomes in Bengaluru; Editing by Saumyadeb Chakrabarty) ((Nathan.Gomes@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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April 12 (Reuters) - American Airlines AAL.O said on Tuesday it expects first-quarter total revenue to be down about 16% compared to pre-pandemic levels, as airlines struggle to meet rising travel demand with limited staffing. (Reporting by Nathan Gomes in Bengaluru; Editing by Saumyadeb Chakrabarty) ((Nathan.Gomes@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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3672.0
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2022-04-12 00:00:00 UTC
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American Airlines (AAL) Gains As Market Dips: What You Should Know
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https://www.nasdaq.com/articles/american-airlines-aal-gains-as-market-dips%3A-what-you-should-know-1
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American Airlines (AAL) closed the most recent trading day at $17.13, moving +0.94% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.34%.
Heading into today, shares of the world's largest airline had gained 19.09% over the past month, outpacing the Transportation sector's loss of 3.59% and the S&P 500's gain of 5.03% in that time.
Wall Street will be looking for positivity from American Airlines as it approaches its next earnings report date. This is expected to be April 21, 2022. On that day, American Airlines is projected to report earnings of -$2.51 per share, which would represent year-over-year growth of 41.9%. Our most recent consensus estimate is calling for quarterly revenue of $8.65 billion, up 115.85% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$2.80 per share and revenue of $42.97 billion. These totals would mark changes of +66.59% and +43.8%, respectively, from last year.
Any recent changes to analyst estimates for American Airlines should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 24.74% lower. American Airlines is holding a Zacks Rank of #3 (Hold) right now.
The Transportation - Airline industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 210, which puts it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com 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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American Airlines (AAL) closed the most recent trading day at $17.13, moving +0.94% from the previous trading session. American Airlines Group Inc. (AAL): Free Stock Analysis Report Wall Street will be looking for positivity from American Airlines as it approaches its next earnings report date.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines (AAL) closed the most recent trading day at $17.13, moving +0.94% from the previous trading session. Heading into today, shares of the world's largest airline had gained 19.09% over the past month, outpacing the Transportation sector's loss of 3.59% and the S&P 500's gain of 5.03% in that time.
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American Airlines (AAL) closed the most recent trading day at $17.13, moving +0.94% from the previous trading session. American Airlines Group Inc. (AAL): Free Stock Analysis Report Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$2.80 per share and revenue of $42.97 billion.
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American Airlines (AAL) closed the most recent trading day at $17.13, moving +0.94% from the previous trading session. American Airlines Group Inc. (AAL): Free Stock Analysis Report Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$2.80 per share and revenue of $42.97 billion.
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3673.0
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2022-04-12 00:00:00 UTC
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PREVIEW-U.S. airline demand, costs soaring as earnings kick off
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https://www.nasdaq.com/articles/preview-u.s.-airline-demand-costs-soaring-as-earnings-kick-off
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By Rajesh Kumar Singh
CHICAGO, April 12 (Reuters) - Major U.S. airlines are enjoying the strongest travel demand in three years, yet investors will focus on how they are mitigating mounting inflationary pressures when they report quarterly earnings starting on Wednesday.
After a blip caused by the Omicron coronavirus variant, travel demand has roared back, with some airlines reporting the highest ticket sales in their history. U.S. passenger traffic has been averaging about 89% of the pre-pandemic levels since mid-February, according to Transportation Security Administration (TSA) data.
But jet fuel prices in North America have gone up by more than 30% in the past month, since Western countries slapped sanctions on Russian exports. Carriers also must pay more to attract and retain talent in a tight labor market.
American Airlines AAL.O, due to report first-quarter earnings on April 21, on Tuesday revised up estimates for jet fuel expenses. Overall, it projected costs in the quarter through March would be at least 16% higher than in the corresponding period of 2019.
The Texas-based carrier is tipped to report a loss of $2.42 per share for the quarter, according to Refinitiv data.
Soaring fuel costs have raised concerns among investors at a time when the airline industry has spent two years trying to recover from the downturn caused by COVID-19.
HIGHER FARES
Fuel is the industry's second-biggest expense after labor, but major U.S. airlines do not hedge against volatile oil prices like most European airlines.
Instead, they typically look to offset fuel costs with higher fares. Airlines fares were up about 24% year-on-year in March, among the biggest contributors to a jump in U.S. consumer prices.
United Airlines Holdings UAL.O has said it is passing along most additional fuel costs to customers. Its average fares are up more than 100% from a year ago, according to data from Cowen.
Delta Air Lines Inc DAL.N, which will report its quarterly earnings on Wednesday, last month said it needed to raise ticket prices by about 10% each way to cover the fuel costs.
Historically, the U.S. airline industry has offset around 60% of changes in fuel expense with higher revenue, analysts at Barclays wrote in a note. As a result, demand needs to stay strong for sustainable profitability, analysts say.
Some are concerned that rising fares and higher inflation could dent travel spending.
Sheila Kahyaoglu, an analyst at Jefferies, said consumers might hit the brakes in the second half, making it tougher for airline revenues to rebound to 2019 levels.
(Reporting by Rajesh Kumar Singh; Editing by 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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American Airlines AAL.O, due to report first-quarter earnings on April 21, on Tuesday revised up estimates for jet fuel expenses. By Rajesh Kumar Singh CHICAGO, April 12 (Reuters) - Major U.S. airlines are enjoying the strongest travel demand in three years, yet investors will focus on how they are mitigating mounting inflationary pressures when they report quarterly earnings starting on Wednesday. After a blip caused by the Omicron coronavirus variant, travel demand has roared back, with some airlines reporting the highest ticket sales in their history.
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American Airlines AAL.O, due to report first-quarter earnings on April 21, on Tuesday revised up estimates for jet fuel expenses. By Rajesh Kumar Singh CHICAGO, April 12 (Reuters) - Major U.S. airlines are enjoying the strongest travel demand in three years, yet investors will focus on how they are mitigating mounting inflationary pressures when they report quarterly earnings starting on Wednesday. Instead, they typically look to offset fuel costs with higher fares.
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American Airlines AAL.O, due to report first-quarter earnings on April 21, on Tuesday revised up estimates for jet fuel expenses. By Rajesh Kumar Singh CHICAGO, April 12 (Reuters) - Major U.S. airlines are enjoying the strongest travel demand in three years, yet investors will focus on how they are mitigating mounting inflationary pressures when they report quarterly earnings starting on Wednesday. Fuel is the industry's second-biggest expense after labor, but major U.S. airlines do not hedge against volatile oil prices like most European airlines.
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American Airlines AAL.O, due to report first-quarter earnings on April 21, on Tuesday revised up estimates for jet fuel expenses. By Rajesh Kumar Singh CHICAGO, April 12 (Reuters) - Major U.S. airlines are enjoying the strongest travel demand in three years, yet investors will focus on how they are mitigating mounting inflationary pressures when they report quarterly earnings starting on Wednesday. Instead, they typically look to offset fuel costs with higher fares.
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3674.0
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2022-04-08 00:00:00 UTC
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Bull vs. Bear: Best Buy
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https://www.nasdaq.com/articles/bull-vs.-bear%3A-best-buy
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In this podcast, Motley Fool analysts Asit Sharma and Deidre Woollard discuss:
JetBlue's (NASDAQ: JBLU) competition with Spirit (NYSE: SAVE) to buy Frontier Airlines.
Amazon's (NASDAQ: AMZN) plan to launch 3,000 satellites into orbit for its broadband internet plans.
Restaurant brands in the metaverse.
Motley Fool analyst Jim Gillies and Motley Fool contributor Brian Feroldi take a "bull vs. bear" look at investing in Best Buy (NYSE: BBY), the company that was supposed to become Amazon's showroom.
To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
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This video was recorded on April 6, 2022.
Deidre Woollard: I'm Deidre Woollard sitting in for Chris Hill and I am joined by Motley Fool senior analyst Asit Sharma. Today, we're going to talk about the battle of low-cost airlines, Amazon's fixed satellite move, and restaurant brands in the metaverse. [MUSIC] Let's begin with the big story which is JetBlue's move yesterday, they are announcing a proposal to acquire Spirit Airlines for $33 per share in cash, works out to a total of 3.6 billion. There was already a planned merger between Spirit and Frontier that was announced in February. This is really interesting because JetBlue thinks it's offering a better deal than the offer from Frontier, which is true from a monetary perspective. Frontier's bid would give Spirit shareholders a share of the combined airline as well as some cash per share. Really interesting because these are two very different types of airlines whereas Frontier and Spirit are more aligned. Asit, I'm wondering what you think could happen next and what this means for consumers?
Asit Sharma: Well, I'm going to be totally honest with you Deidre, I don't know what's going to happen [laughs] next because this counteroffer is going to have some regulatory scrutiny around it, but let's hypothesize that the deal goes through. I think this means that for consumers, costs are going up. The reason is JetBlue has a choice to become more like Spirit or to make Spirit become more like itself, and I think the odds are that JetBlue tries to mold Spirit in its own form. You've got an airline here which has been pretty successful in JetBlue at offering some premium perks, it's not quite the large carrier like those it wants to compete with, the Uniteds, American Airlines, and Deltas of the world. It's an up-and-coming airline, it's slightly smaller than a great regional airline, Alaska Airlines. If the merger goes through with Spirit, it will leapfrog that to become the next big carrier. I think what JetBlue is trying to do here is to really compete with these bigger carriers, it can't recreate the whole hub and spoke network that the legacy carriers have, but what it can do is to really hone in on route density, which is what it gets in Spirit because both are East Coast Airlines and the thing that I like about this for JetBlue, not for myself and I travel, if my costs are going up, but what I liked for JetBlue is that in buying Spirit, it gets a really beautiful route density into Latin America, into Central America, into the Caribbean, routes it doesn't have. Those are very lucrative routes, the travel in this area from Latin America to the US back-and-forth has been steadily increasing, took a hit during COVID, but long-term, that's a great place to be. You buy, Spirit you get into a bunch of big cities in the East Coast and some other hub cities, you compete with the bigger carriers, you get great route additions. It'll take some time. You can make the Spirit part of your business more like JetBlue which is not, again, a premium airline but think of it as a lower-cost carrier with some perks, not an ultra-low-cost carrier, just one or two steps above that.
Deidre Woollard: Interesting. I like what you said there about ultra-low-cost versus low-cost because that's Frontier's argument is that JetBlue is, in fact, prestige and so that it's not a natural match. The other thing I think is interesting is JetBlue has tried some acquisitions before, they haven't worked out, there's certainly an antitrust concern here. Do you think that that's going to be a concern? How are the regulators going to look at these two deals?
Asit Sharma: I want to say it is a shot from left field. If you've read any of the new stories around the story, many airline analysts, and I'm not an airline analyst, but I totally get this, they're scratching their heads just because of the regulatory aspect. This is a move that is the opposite of a Frontier-Spirit merger in which costs could stay level for consumers. You got two ultra-low-cost carriers that would be merging. Here, how does this benefit the end-user? It doesn't. Now, JetBlue can make the argument that in becoming a bigger airline, not quite as big as these huge competitors I mentioned before, we make that part of the airline segment more competitive, we come in and compete with bigger carriers. I think that's a bit of a stretch but there is some logic there. I don't know where regulators will land. I think this is indicative of a company in JetBlue that is really looking to grow but doesn't have a great organic path to do it. They're not grasping at straws here, but they're going after propositions which aren't natural fits. This is what happens in an industry like the airline industry where you have just decades of consolidations, just a few players on the big end. To get bigger in this industry is not so easy.
Deidre Woollard: Very good point. Just to wrap up, what are you thinking about the energy costs and airlines, prices seem to be going up for airlines, looks like we're going to have a big travel summer. What are you thinking that we're going to see on that front?
Asit Sharma: It's so interesting, Deidre. The two biggest costs for an airline are labor, of course, and fuel. We've seen over time that airlines will go for utilization, they want to fill seats. They will deal with higher fuel prices in a number of ways. The best way, I think, over time to counter the effect of rising fuel costs is to add on ancillary services. This is something that JetBlue excels at. I don't think that there is much that any airline can do in the industry just now, they're going to have to absorb some of these costs, the rest, you and I are going to be paying more when we board. I will tell you one thing, I'm traveling this summer. [laughs] Please world, please universe, please cosmos, no more exogenous shocks, give me just even a couple of weeks of a window in which I can have some fun travel; I will get on a plane this summer.
Deidre Woollard: [laughs] I think you are not alone in that. Let's move on from airlines to space. Amazon has announced ramping up Project Kuiper, which is its satellite operations. This is really ambitious, they are planning 83 launches over the next five years, they're putting more than 3,000 satellites in orbit. Why? Because they're going to try to provide broadband Internet for consumers, businesses, government agencies, some massive project. Really interesting to see, and I'm wondering what this means for Amazon's core businesses for Prime, AWS, things like that.
Asit Sharma: This is a multi-year effort and it sounds like it won't have much impact on Amazon's business for a while because they've got to get the satellites into space. I believe that Amazon does have a little bit of an impetus to start putting it satellites into space because of some licensing requirements. They received licenses from the Federal Communications Commission in 2020, they've got to start putting up satellites within the next couple of years to keep those initial license grants. There's nothing on the surface or in the immediate future that's going to impact the other businesses. But, Deidre, I remember that Morgan Stanley had a projection, I don't know, a couple of years ago which they said that this total space business, putting satellites into space and having consumer services is going to be potentially a trillion-dollar business for lucky few companies over the next 10 years. Now, who on earth has the capital to put thousands of satellites in space? Only a very few private companies or public companies can do this. While we look at this large opportunity that is going to cost, by Amazon's own estimates, $10 billion of its capital, potentially they get a fraction of this market, say five or 10 percent, that starts to impact the other business lines. Let's fast-forward, I don't know, six or seven years in the future, and that's where you start to get some incremental gravy that's flowing to Amazon's bottom line, it makes them better able to compete with that additional cash flow, to lower their infrastructure costs for stuff that we order here on earth. In that sense, it will potentially have an impact on those other businesses, it's just not going to happen overnight.
Deidre Woollard: Yeah, I think there's so much potential. One of the things I've heard about is the potential for data centers in space and things like that. There's all sorts of interesting applications. You mentioned big companies. Well, the other one in this is, of course, Elon Musk and Starlink. There's been a lot of talk, a lot of back-and-forth between the two, a bit of one upmanship about Blue Origin versus SpaceX. Is Amazon too far behind Starlink to catch up at this point? Starlink has already launched about 1,900 satellites, they've got a quarter of a million subscribers. Does this mean Elon's got the jump on basis or what?
Asit Sharma: Yeah, you know Deidre, this is a G-rated shows. They don't mean any innuendo here. But I was wondering seven years old, I walked into a friend's garage and there was a sign that my friend's mom had put in the garage and it was a common saying. This is just to think back to the early '80s here, late '70s. The only difference between men and boys is the size of their toys. The picture was of two boats; a little boat and, and a big boat in the water. This is what it's boiling down to with all these billions of excess capital that Jeff Bezos and Elon Musk have created. They want bigger toys. They are in the never ending contest to see who can win here on the planet and in space. It's a great question. I mean, has Elon just, in this part of the competition, just gotten the head-start and Bezos can't compete? Actually don't think so. Again, going back to the point I was discussing earlier about the capital required to put all these satellites, thousand satellites into space. If only a few companies can do this, it means that there's not going to be a monopoly business in space. It's probably going to be like a duopoly or oligopoly, is that right? We have more than a couple. There's always time to catch up, especially if you're relying on a consumer model. At the end of the day, these are consumers that are going to propel this. It could get into corporate business later, as you mentioned with say, data centers in space. But with a consumer centric monopoly regulators, just the idea of competing lent itself to another company, even if it takes a couple or three years more entering that. Now, do Amazon and Starlink between them have a business model that's probably airtight, they don't have to worry about much more competition? Yeah, I don't see many more companies coming into the scale.
Deidre Woollard: One last thing on this subject, I am a little bit concerned about the potential for things being crowded. There's already been talk of not necessarily space junk, but when these things, when they exceed their usefulness, they have to be disposed at some way. They can come to earth and burn up in the atmosphere. We haven't seen a lot of crashes or things like that yet. But do you think going forward when we have thousands of satellites in orbit, is that a potential risk?
Asit Sharma: I'm worried. I'm no expert on objects in orbit, but we noticed from reading the news that the number of satellites which have been put up ever since the first one launched into space in the '50s, just that tiny number of satellites creates its own ecosystem of space debris. So you think about multiplying that even if these are much smaller satellites. We should think about multiplying the number of objects by so many magnitudes. It just begs the question, that this potentially isn't that great an idea in terms of efficiency? So yeah, I think me and so many other people who are watching this story evolve or worried and you as, well, hopefully the technology that's being invested, will be able to anticipate this, but I have my doubts. I'm a little skeptical on that front.
Deidre Woollard: Well, I think it may create a new business in the future. But let's move on from space. I feel like we're getting gradually further and further out. Let's go into the metaverse. Wanted to talk a little bit about a Wall Street Journal article about Restaurant Brands setting up shop in the metaverse, Wendy's and Chipotle. We've already seen McDonald's talk about ordering your food in the metaverse through so much excitement from brands. But the interesting thing in the article was that there was a study from Forrester that showed 43 percent of adults would avoid a brand sponsored experience in the metaverse. That's not great news. Is this a smart move for brands to get started in the metaverse? Is this where we're headed?
Asit Sharma: It depends on the brand and what your objective is and who your customers are. Thinking in some cases it makes a lot of sense. My typical example is Nike creating an experience on Roblox, which is good for its culture, for its fans, they can go and experience Nike land. So this is an example and I know, Deidre, you have some thoughts here. I'm really interested to hear your thoughts on these. I want to just finish this short opinion by saying, in some cases short, it makes a lot of sense and in others. It's like that song. We're not going to take it. We're not going to take it anymore. Brands try to sell to us in every conceivable location and we're used to this, but they are selling to us on social media. They are selling to us in the subways. So do I really want to be sold to in the metaverse? Maybe more pertinently, if your quick service brands, like do I want to be dragged into the metaverse just to place an order for delivery? Not me personally. I don't think it makes as much sense for brands that have a quick service model in the restaurant industry. These two examples of McDonald's, especially with Wendy's and Chipotle is in there as well. But, yeah it can be valuable to some companies. Now, I've tried to stay a little neutral there, but you've got thoughts and opinions. I know on this. What's your take on this, Deidre?
Deidre Woollard: Well, I've been studying the way that luxury brands are getting in. Specifically, they had the first metaverse Fashion week recently in Decentraland. Part of it was that Dolce and Gabbana had this $300,000 metaverse tiara. Neiman Marcus recently announced that they're working on NFT. So I find it fascinating from the luxury perspective and I think that may be more of a natural fit for the metaverse at this point than some of the more mid-market brands. Just because really the people that are interested in the metaverse, it's a small group, but it may be a more sophisticated group of consumers. So I've been fascinated by seeing just how many luxury brands are getting in, makes me think a little bit of second-life for those who remember that happened. What was that about a decade ago and all brands rushed in. Second-life is still out there. Their CEO recently came back, but Second-life never became what we thought it was going to be. So there's a little bit of concern there.
Asit Sharma: Yes. There's another arguments that younger consumers, the digitally native consumers, are going to embrace the metaverse, and so you need to your expression of the metaverse in now because it's only a matter of time before, let's say someone in their teens grows up for few years and they have their own spending money and they're going to spend it. They'll be the people going into the metaverse to order from McDonald's, but I'm not so sure. I mean, there's part of the metaverse that's still seems very much like a transient thing. We're always trying to pin the next technological innovation and say, this is how the world is going to work. We were talking about 3D just before the show, Deidre. We were talking about visual 3D, but I was also thinking about 3D printing. I remember just a few years ago, we were going to print everything we needed from our homes. Like if if something broken your house, you just go to your 3D printer, print it up and put it, let's say replace a couch like that really never came to fruition. Although 3D printing is in various parts of the economy in it's more serious expression of additive manufacturing is there, it exists, but it hasn't overtaken our lives. I have my suspicion that even for younger people, the metaverse will be the dominant place that we exist, interact and transact in the future.
Deidre Woollard: Coming up next, Jim Gillies and Brian Feroldi are going to take a bull versus bear approach to a company that Amazon was supposed to knockout years ago. Best Buy, Ricky Mulvey moderates and you get to decide who made the better argument by voting in our poll on Motley Fool Money on Twitter.
Ricky Mulvey: We got Bull versus Bear on Best Buy today. You know the electronics retailer, it is within 10 miles of 70 percent of the US population. They sell computers, games, whatever you want, Best Buy's got it. Taking the bear case, we got Brian Feroldi. Brian, you got a book out just came out yesterday. It's called Why Does The Stock Market Go Up? But looking at the risks to a company that's not unfamiliar to you, you like putting stocks through the gauntlet all the time.
Brian Feroldi: Yeah, I've made plenty of mistakes with investing and I've learned the hard way that you need to know the bull case for a business just as well as you know the bear case for a business if you want to make an informed decision.
Ricky Mulvey: We've got the returning champion, the Canuck Jim Gillies. Jim, you also have a book that came out a few years ago that you'd like to plug.
Jim Gillies: It's my masters thesis on bringing environmental aspects to a chromium plating shop. There are four copies in existence, no one should read it.
Ricky Mulvey: Books are available on Amazon but let's get right to it on Best Buy starting with the bull case. Jim, you've got three minutes.
Jim Gillies: Cool. Well, I know that Brian, my esteemed opponent, likes company mission statements and so I thought I would start with one of his favorite tricks and I'm going to call out with Best Buy's purposes, they state their purpose is to enrich lives through technology. Now the important thing here is this is an adaptable company. This is a service company that sells hardware technology, yes, you can go to Amazon or eBay or wherever you buy your electronic and online stuff but their customer service model that Best Buy offers is essentially impossible for Amazon to copy. Amazon is for people who know exactly what they want, want it at a better price for example and will implement their own technology solutions for themselves and God bless them. People think of hardware and technology as something of a commodity, the reality is it's more nuanced. Sometimes people don't know what they want, sometimes they would choose differently or might want something completely different if they had a better understanding, there's different fulfillment or installation options, sometimes my parents want someone to hold their hand when they're getting their technology setup or what have you and that is the service that Best Buy provides in the guys of a big box store. You can get in-person consultations online, on the phone, pickup and delivery, curbside pickup, home visits delivery, the point is its flexibility and adaptability to customer needs and it has worked.
Best Buy is one of my favorite types of retail company stories because people, including my esteemed opponent, have been writing this one off for well over a decade. Would you like to take a guess as to what the best year in company history was in terms of free cash flow generation for Best Buy? If you guessed fiscal 21, the year ending in January 2021, aka the year stricken by shutdowns for the pandemic, you are right. Of course no one is going to guess, the pandemic year was the best year free cash flow production in Best Buy's history, they made $4.2 billion. If you want to guess the second best year in the company's history, it's in the year that's just ended where they produced $2.5 billion in free cash flow. Now, true, I think fiscal 2012 was about $25 million more or $12 million more but that was a 53-week fiscal year, there's some calendar chicanery so still last year's second best year. Over the past decade, Best Buy has averaged a return on capital of 19-and-a-half percent as per CapIQ well above their cost of capital and I will argue that the return on capital numbers for Cap IQ and Best Buy is actually too low because they put operating leases into the capital that's an argument for another time. We'll let it stand. Return on capital has also been increasing over the past decade. Also over the past decade margins are resilient and rising, gross margin has averaged 23 percent over the last decade, operating margin averaged 4.9 percent over the last decade and 5.8 percent in the last fiscal year. They have produced $17 billion in free cash flow over this decade, returning 14.3 billion to shareholders in the form of dividends and buybacks. Their dividend is up 5.5 fold over that decade, going from $0.64 a year to $3.52 a year and it's a 3.7 percent yield today.
Their buybacks have reduced our shares outstanding by a third, the rest of the cash regenerated went to shore up their balance sheet, they went from a-half billion in net debt a decade ago, today have $1.75 billion in net cash today, this is a capital allocation success story and poky Best Buy that everyone knows is Amazon showroom. That's going to go away just like GameStop. How did that work out? Best Buy, 10 year annual return with dividends reinvested 18.6 percent annually a market smasher, oh and by the way if you happen to pick it up at its low in December of 2012, a time that I'm sure Brian remembers, you are sitting on a 26.8 percent annual return. That's not bad for Amazon's showroom and the final point is, no one today is surprised by, oh Amazon is going to eat their lunch. That argument has been around for over a decade, it's priced into the stock and here's this thing trading at 10 times earnings with I think blue skies and clear sailing ahead of them going forward.
Ricky Mulvey: We are a minute and 26 seconds over, but a strong [laughs] bull case for Best Buy.
Jim Gillies: That's pretty good for me. [laughs]
Ricky Mulvey: Shocker. Jim Gillies goes a little bit over the title of it.
Jim Gillies: Brian, feel free. [laughs]
Ricky Mulvey: Who could've predicted it? Brian Feroldi, you've got the risks, the bear case for the company whenever you're ready.
Brian Feroldi: Well, as Jim pointed out, this is a stock that I have been precisely wrong about having, giving it the red thumbs up, the thumbs down in caps, pretty much at the low which was a 10 bagger ago. Now why was I bearish on them about a decade ago? Jim hit the nail on the head and then ordered Amazon and Best Buy was becoming a showroom for Amazon's shoppers. People would go into Best Buy, look at the items, check the price online, buy it online, and Best Buy all but admitted that this was a major problem when about 10 years ago they offered a price match guarantee. If you showed them the price you could buy it online they will be forced to match it there. Now, how could Best Buy compete? Amazon doesn't have any of the overhead of the showrooms that Best Buy does. Amazon has counter positioning against Best Buy and they could offer the exact same products at a lower price. Moreover at the same time we've seen a lot of other companies, the device manufacturers themselves increased their director consumer preferences, me, the consumer can go to apple.com, samsung.com, sony.com, whatever and buy the items directly from the companies. Why go through a retailer? Now, is that still a problem today? Well, how's this stat? Last year, five suppliers, Apple, Samsung, HP, LG, and Sony, were more than 56 percent of this company's total sales and just 20 suppliers accounted for almost 80 percent of total sales. When you combine those things together I figured it was a matter of time before Best Buy joined the likes of Circuit City, Twitter, Crazy Eddie, Fredder, The Whiz, HA Creg, etc., in the retail graveyard. Now, as Jim pointed out, my thesis for this company was precisely wrong. This has been a fantastic investment over the last 10 years. But I think a lot of the things that I was worried about actually have come true. Best Buy has been modifying its store layouts. It's been forced to cut prices to match those of Internet retailers and this is a company that had almost 1,800 stores in 2013, currently they have 980 stores. The number of stores that this company has, has been falling, sinking like a stone. That's a big problem if you're going to be investing in a retailer because that's one of the major ways that a company grows, is by opening new stores that's no longer on the table. Moreover, over the last 10 years, while returns on capital have been good, this company's same-store sales, a key metric haven't exactly been barn-burning, they were negative from 2012-2014, barely positive to 2015-2017 and they've been hugely positive over the last couple of years. Why is that? In a word, COVID.
People have been scrambling to build out their home offices and to make themselves electronically savvy at home. I asked this, is that something that's going to repeat? I mean once my home office was set up, why don't I have to buy any of the same items again? Make no mistake, this company even today, despite having a strong service business, 75 percent of sales come from computing, mobile phones and consumer electronics. The services business at this company that bowls are pounding the table on that was just wait for it, five percent of revenue last year, five percent of revenue. Now the company does have a couple of growth initiatives in place, they have a subscription plan growing out, they're getting into the telehealth business because when I think Best Buy what I think is healthcare, of course. I think by myself as a consumer, when I go in there and shop at Best Buy, the only thing that they want to do is talk to you about signing up for a credit card and selling me a protection plan. No thanks, I will just shop on Amazon myself. Now, if we look at the most recent quarterly results, we see a topline declining. Same-store sales are declining, gross margin down, sales and advertising expense up, and adjusted earnings-per-share down 21 percent, management all but admitted that they should expect exactly that over the next two years. Yes, this stock is cheap today but when I think of the long-term no store openings, challenging same-store sales. COVID is now a headwind supplier, concentration the retail landscape is changing, margins are going to be under pressure, and services are just five percent of sales, it's a hard pass for me.
Ricky Mulvey: Gentlemen, thank you so much. That's Bull versus Bear. You can decide who made the better argument at Motley Fool Money on Twitter. Brian Feroldi, you got to book out real quick. Where can people find it?
Brian Feroldi: Everywhere that books are sold, including Amazon, Best Buy's enemy.
Ricky Mulvey: Why Does The Stock Market Go Up? Jim Gillies, Brian Feroldi, thank you so much.
Deidre Woollard: As always, people on the program may have interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. I'm Deidre Woollard, thanks for listening, we'll see you tomorrow.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Asit Sharma owns McDonald's and Roblox Corporation. Brian Feroldi owns Amazon, Chipotle Mexican Grill, Nike, and Roblox Corporation. Chris Hill owns Amazon, Chipotle Mexican Grill, Roblox Corporation, and eBay. Deidre Woollard owns Nike. Jim Gillies owns Amazon, Chipotle Mexican Grill, Nike, and Roblox Corporation and has the following options: long January 2023 $45 calls on eBay, short January 2023 $45 puts on eBay, and short January 2023 $70 calls on eBay. Ricky Mulvey has no position in any of the stocks mentioned. The Motley Fool owns and recommends Amazon, Best Buy, Chipotle Mexican Grill, Nike, Roblox Corporation, Spirit Airlines, and Twitter. The Motley Fool recommends Alaska Air Group, Delta Air Lines, JetBlue Airways, and eBay and recommends the following options: short April 2022 $62.50 calls on eBay. 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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In this podcast, Motley Fool analysts Asit Sharma and Deidre Woollard discuss: JetBlue's (NASDAQ: JBLU) competition with Spirit (NYSE: SAVE) to buy Frontier Airlines. Deidre Woollard: Coming up next, Jim Gillies and Brian Feroldi are going to take a bull versus bear approach to a company that Amazon was supposed to knockout years ago. When you combine those things together I figured it was a matter of time before Best Buy joined the likes of Circuit City, Twitter, Crazy Eddie, Fredder, The Whiz, HA Creg, etc., in the retail graveyard.
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In this podcast, Motley Fool analysts Asit Sharma and Deidre Woollard discuss: JetBlue's (NASDAQ: JBLU) competition with Spirit (NYSE: SAVE) to buy Frontier Airlines. The Motley Fool owns and recommends Amazon, Best Buy, Chipotle Mexican Grill, Nike, Roblox Corporation, Spirit Airlines, and Twitter. The Motley Fool recommends Alaska Air Group, Delta Air Lines, JetBlue Airways, and eBay and recommends the following options: short April 2022 $62.50 calls on eBay.
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Motley Fool analyst Jim Gillies and Motley Fool contributor Brian Feroldi take a "bull vs. bear" look at investing in Best Buy (NYSE: BBY), the company that was supposed to become Amazon's showroom. I think what JetBlue is trying to do here is to really compete with these bigger carriers, it can't recreate the whole hub and spoke network that the legacy carriers have, but what it can do is to really hone in on route density, which is what it gets in Spirit because both are East Coast Airlines and the thing that I like about this for JetBlue, not for myself and I travel, if my costs are going up, but what I liked for JetBlue is that in buying Spirit, it gets a really beautiful route density into Latin America, into Central America, into the Caribbean, routes it doesn't have. But, Deidre, I remember that Morgan Stanley had a projection, I don't know, a couple of years ago which they said that this total space business, putting satellites into space and having consumer services is going to be potentially a trillion-dollar business for lucky few companies over the next 10 years.
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The other thing I think is interesting is JetBlue has tried some acquisitions before, they haven't worked out, there's certainly an antitrust concern here. But, Deidre, I remember that Morgan Stanley had a projection, I don't know, a couple of years ago which they said that this total space business, putting satellites into space and having consumer services is going to be potentially a trillion-dollar business for lucky few companies over the next 10 years. Deidre Woollard: As always, people on the program may have interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear.
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3675.0
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2022-04-08 00:00:00 UTC
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Brazilian airline Gol approves capital increase of up to $604 mln
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AAL
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https://www.nasdaq.com/articles/brazilian-airline-gol-approves-capital-increase-of-up-to-%24604-mln
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nan
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SAO PAULO, April 8 (Reuters) - Brazilian airline Gol SA GOLL4.SA said late on Thursday it approved a capital increase of up to 2.87 billion reais ($604 million) as part of a previously disclosed partnership with American Airlines AAL.O.
The company said the capital increase will be of at least 948.31 million reais and up to 2.87 billion reais. Gol shareholders will have preemptive rights to subscribe for the new shares.
In September, Gol announced an exclusive three-year codeshare agreement with American Airlines, which is going to invest $200 million in the Brazilian airline.
($1 = 4.7514 reais)
(Reporting by Andre Romani; writing by Peter Frontini; editing by Jason Neely)
((Peter.Siqueira@thomsonreuters.com; +55 11 56447727;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SAO PAULO, April 8 (Reuters) - Brazilian airline Gol SA GOLL4.SA said late on Thursday it approved a capital increase of up to 2.87 billion reais ($604 million) as part of a previously disclosed partnership with American Airlines AAL.O. Gol shareholders will have preemptive rights to subscribe for the new shares. ($1 = 4.7514 reais) (Reporting by Andre Romani; writing by Peter Frontini; editing by Jason Neely) ((Peter.Siqueira@thomsonreuters.com; +55 11 56447727;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SAO PAULO, April 8 (Reuters) - Brazilian airline Gol SA GOLL4.SA said late on Thursday it approved a capital increase of up to 2.87 billion reais ($604 million) as part of a previously disclosed partnership with American Airlines AAL.O. The company said the capital increase will be of at least 948.31 million reais and up to 2.87 billion reais. In September, Gol announced an exclusive three-year codeshare agreement with American Airlines, which is going to invest $200 million in the Brazilian airline.
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SAO PAULO, April 8 (Reuters) - Brazilian airline Gol SA GOLL4.SA said late on Thursday it approved a capital increase of up to 2.87 billion reais ($604 million) as part of a previously disclosed partnership with American Airlines AAL.O. In September, Gol announced an exclusive three-year codeshare agreement with American Airlines, which is going to invest $200 million in the Brazilian airline. ($1 = 4.7514 reais) (Reporting by Andre Romani; writing by Peter Frontini; editing by Jason Neely) ((Peter.Siqueira@thomsonreuters.com; +55 11 56447727;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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SAO PAULO, April 8 (Reuters) - Brazilian airline Gol SA GOLL4.SA said late on Thursday it approved a capital increase of up to 2.87 billion reais ($604 million) as part of a previously disclosed partnership with American Airlines AAL.O. Gol shareholders will have preemptive rights to subscribe for the new shares. ($1 = 4.7514 reais) (Reporting by Andre Romani; writing by Peter Frontini; editing by Jason Neely) ((Peter.Siqueira@thomsonreuters.com; +55 11 56447727;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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3676.0
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2022-04-08 00:00:00 UTC
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Shares in Russia's Alrosa drop as U.S. expands sanctions on company
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AAL
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https://www.nasdaq.com/articles/shares-in-russias-alrosa-drop-as-u.s.-expands-sanctions-on-company
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nan
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nan
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April 8 (Reuters) - Moscow-listed shares of state-controlled diamond miner Alrosa ALRS.MM were down 5% early on Friday after the United States expanded sanctions on the company, aiming to cut off additional sources of revenue for the Russian state budget.
Alrosa, the world's largest producer of rough diamonds and which competes with Anglo American AAL.L unit De Beers, produced 32.4 million carats in 2021, about 30% of the global total. It exports mostly to Belgium, India, and the United Arab Emirates.
The United States on Thursday placed Alrosa on the Specially Designated Nationals (SDN) list, which effectively kicks a sanctioned company out of the U.S. banking system and bans its trade with Americans, complicating operations in the global diamond market.
Alrosa did not reply to a Reuters' request for comment.
It employs more than 32,000 people and mines the precious stones from deposits in Russia's far east, where the climate is harsh and chances for miners to find other job are limited.
"Diamonds are one of Russia's top 10 non-energy exports by value, with exports in 2021 totalling over $4.5 billion," the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) said in a statement announcing expanded sanctions.
After Russia sent tens of thousands of troops into Ukraine on Feb. 24 in what it called a special operation, the OFAC imposed a type of sanctions on Alrosa which restricted its ability to raise new debt and equity in the United States.
Alrosa also has a 41% stake in Angolan diamond production firm Catoca, but Catoca should not be affected by the U.S. sanctions given the OFAC said only entities owned 50% or more, directly or indirectly, by Alrosa were being blocked.
(Reporting by Reuters; Editing by David Holmes)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alrosa, the world's largest producer of rough diamonds and which competes with Anglo American AAL.L unit De Beers, produced 32.4 million carats in 2021, about 30% of the global total. The United States on Thursday placed Alrosa on the Specially Designated Nationals (SDN) list, which effectively kicks a sanctioned company out of the U.S. banking system and bans its trade with Americans, complicating operations in the global diamond market. It employs more than 32,000 people and mines the precious stones from deposits in Russia's far east, where the climate is harsh and chances for miners to find other job are limited.
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Alrosa, the world's largest producer of rough diamonds and which competes with Anglo American AAL.L unit De Beers, produced 32.4 million carats in 2021, about 30% of the global total. April 8 (Reuters) - Moscow-listed shares of state-controlled diamond miner Alrosa ALRS.MM were down 5% early on Friday after the United States expanded sanctions on the company, aiming to cut off additional sources of revenue for the Russian state budget. The United States on Thursday placed Alrosa on the Specially Designated Nationals (SDN) list, which effectively kicks a sanctioned company out of the U.S. banking system and bans its trade with Americans, complicating operations in the global diamond market.
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Alrosa, the world's largest producer of rough diamonds and which competes with Anglo American AAL.L unit De Beers, produced 32.4 million carats in 2021, about 30% of the global total. April 8 (Reuters) - Moscow-listed shares of state-controlled diamond miner Alrosa ALRS.MM were down 5% early on Friday after the United States expanded sanctions on the company, aiming to cut off additional sources of revenue for the Russian state budget. The United States on Thursday placed Alrosa on the Specially Designated Nationals (SDN) list, which effectively kicks a sanctioned company out of the U.S. banking system and bans its trade with Americans, complicating operations in the global diamond market.
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Alrosa, the world's largest producer of rough diamonds and which competes with Anglo American AAL.L unit De Beers, produced 32.4 million carats in 2021, about 30% of the global total. April 8 (Reuters) - Moscow-listed shares of state-controlled diamond miner Alrosa ALRS.MM were down 5% early on Friday after the United States expanded sanctions on the company, aiming to cut off additional sources of revenue for the Russian state budget. It exports mostly to Belgium, India, and the United Arab Emirates.
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3677.0
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2022-04-07 00:00:00 UTC
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US STOCKS-Wall Street mixed, investors eye Fed and Ukraine
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-street-mixed-investors-eye-fed-and-ukraine
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nan
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nan
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By Bansari Mayur Kamdar and Noel Randewich
April 7 (Reuters) - Wall Street was mixed on Thursday, with Amazon and Nvidia weighing on the Nasdaq and Pfizer lifting the S&P 500 as investors eyed the war in Ukraine and a potentially more aggressive Federal Reserve.
The tech-heavy Nasdaq .IXIC fared worst among the three main indexes, extending a 4.5% drop in the previous two sessions. Amazon.com Inc AMZN.O fell 1.6% and Nvidia Corp NVDA.O lost 1.4%.
Supporting the S&P 500, Pfizer Inc PFE.N jumped over 4% after it said it would buy privately held ReViral Ltd in a deal worth as much as $525 million, its second acquisition in less than six months to boost its drug portfolio.
Mega-cap growth stocks have come under pressure this week after comments from Fed policymakers and minutes from the central bank's March meeting suggested a rapid removal of stimulus measures put in place during the pandemic.
St. Louis Federal Reserve President James Bullard said the U.S. central bank's short-term policy rate should reach 3.5% later this year.
Minutes released on Wednesday showed that Fed officials "generally agreed" to cut up to $95 billion a month from the central bank's asset holdings even as the war in Ukraine tempered the first U.S. interest rate increase since 2018.
"The realization for investors continues that the Fed is still not at max hawkishness and we're going to err on the side of them wanting to do more to continue to control inflation," said Anastasia Amoroso, chief investment strategist at iCapital Network, an investment marketplace firm.
Traders now see 88.9% likelihood of a 50 basis-point rate hike at the central bank's meeting next month. IRPR
U.S. companies will start reporting first-quarter results in the coming weeks, with banks set to kick off the season in earnest next week. Analysts on average expect S&P 500 companies' earnings to have grown 6.4% in the March quarter, according to I/B/E/S data from Refinitiv. That compares with over 30% growth in the prior quarter.
"As we get into the heart of earnings season, I expect volatility to be very prominent," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. "We could see strong results that beat the highest expectations, but weak expectations for the next 12 months."
Among the 11 S&P 500 sector indexes, real estate .SPLRCR declined the most, down 1.2%. The health sector index .SPXHC climbed 1.8%.
Adding to cautious sentiment, Russian Foreign Minister Sergei Lavrov said Ukraine had presented Moscow with a draft peace deal that contained "unacceptable" elements, while the U.S. Senate voted to remove "most favored nation" trade status for Russia in one bill and ban oil imports in another.
In afternoon trading, the Dow Jones Industrial Average .DJI was up 0.05% at 34,514.41 points, while the S&P 500 .SPX gained 0.15% to 4,487.96.
The Nasdaq Composite .IXIC dropped 0.29% to 13,849.02.
In economic news, data showed the number of Americans filing new claims for unemployment benefits fell last week, indicating a further tightening of labor market conditions heading into the second quarter that could contribute to keeping inflation elevated.
Among other movers, HP Inc HPQ.N jumped 16% after Warren Buffett's Berkshire Hathaway Inc BRKa.N disclosed it purchased nearly 121 million shares of the personal computing and printing company.
Costco Wholesale Corp COST.O jumped over 4% after the retailer late on Wednesday reported a surge in March sales.
American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 2.9% and 4.7% after Barclays warned of a recent jump in oil prices hurting first-quarter earnings.
Declining issues outnumbered advancing ones on the NYSE by a 1.63-to-1 ratio; on Nasdaq, a 1.84-to-1 ratio favored decliners.
The S&P 500 posted 31 new 52-week highs and 26 new lows; the Nasdaq Composite recorded 39 new highs and 209 new lows.
S&P 500 and its forward P/E ratiohttps://tmsnrt.rs/3LN6zRL
(Reporting by Bansari Mayur Kamdar and Praveen Paramasivam in Bengaluru, and by Noel Randewich in Oakland, Calif. Editing by Anil D'Silva and Matthew Lewis)
((noel.randewich@tr.com; Twitter: @randewich))
The views and 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, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 2.9% and 4.7% after Barclays warned of a recent jump in oil prices hurting first-quarter earnings. By Bansari Mayur Kamdar and Noel Randewich April 7 (Reuters) - Wall Street was mixed on Thursday, with Amazon and Nvidia weighing on the Nasdaq and Pfizer lifting the S&P 500 as investors eyed the war in Ukraine and a potentially more aggressive Federal Reserve. Adding to cautious sentiment, Russian Foreign Minister Sergei Lavrov said Ukraine had presented Moscow with a draft peace deal that contained "unacceptable" elements, while the U.S. Senate voted to remove "most favored nation" trade status for Russia in one bill and ban oil imports in another.
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American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 2.9% and 4.7% after Barclays warned of a recent jump in oil prices hurting first-quarter earnings. By Bansari Mayur Kamdar and Noel Randewich April 7 (Reuters) - Wall Street was mixed on Thursday, with Amazon and Nvidia weighing on the Nasdaq and Pfizer lifting the S&P 500 as investors eyed the war in Ukraine and a potentially more aggressive Federal Reserve. Minutes released on Wednesday showed that Fed officials "generally agreed" to cut up to $95 billion a month from the central bank's asset holdings even as the war in Ukraine tempered the first U.S. interest rate increase since 2018.
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American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 2.9% and 4.7% after Barclays warned of a recent jump in oil prices hurting first-quarter earnings. By Bansari Mayur Kamdar and Noel Randewich April 7 (Reuters) - Wall Street was mixed on Thursday, with Amazon and Nvidia weighing on the Nasdaq and Pfizer lifting the S&P 500 as investors eyed the war in Ukraine and a potentially more aggressive Federal Reserve. Mega-cap growth stocks have come under pressure this week after comments from Fed policymakers and minutes from the central bank's March meeting suggested a rapid removal of stimulus measures put in place during the pandemic.
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American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 2.9% and 4.7% after Barclays warned of a recent jump in oil prices hurting first-quarter earnings. Traders now see 88.9% likelihood of a 50 basis-point rate hike at the central bank's meeting next month. Analysts on average expect S&P 500 companies' earnings to have grown 6.4% in the March quarter, according to I/B/E/S data from Refinitiv.
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3678.0
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2022-04-07 00:00:00 UTC
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US STOCKS-S&P 500 ends higher, lifted by Tesla
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AAL
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https://www.nasdaq.com/articles/us-stocks-sp-500-ends-higher-lifted-by-tesla
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nan
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nan
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By Bansari Mayur Kamdar and Noel Randewich
April 7 (Reuters) - The S&P 500 ended higher on Thursday, with Pfizer and Tesla fueling a late-session rally while investors eyed the war in Ukraine and a potentially more aggressive Federal Reserve.
Tesla Inc TSLA.O rose 1.2% and Microsoft Corp MSFT.O added 0.6%, helping lift the S&P 500 and provide the Nasdaq a modest gain.
Also supporting the S&P 500, Pfizer Inc PFE.N jumped 4.3%after it said it would buy privately held ReViral Ltd in a deal worth as much as $525 million, its second acquisition in less than six months to boost its drug portfolio.
The S&P traded at a loss for much of the day before rallying near the end of the session.
“We don't know how Ukraine is going resolve itself. We don't know how this hawkish Fed is going to impact the economy. We don't know if they can navigate a soft landing. What it equals is a whipsaw market,” said Dennis Dick, a trader at Bright Trading LLC. “If you're following trends, then you're lost in this market because all this market is is chop.”
Mega-cap growth stocks came under pressure earlier this week after comments from Fed policymakers and minutes from the central bank's March meeting suggested a rapid removal of stimulus measures put in place during the pandemic.
St. Louis Federal Reserve President James Bullard said the U.S. central bank's short-term policy rate should reach 3.5% later this year.
Minutes released on Wednesday showed that Fed officials "generally agreed" to cut up to $95 billion a month from the central bank's asset holdings even as the war in Ukraine tempered the first U.S. interest rate increase since 2018.
"The realization for investors continues that the Fed is still not at max hawkishness and we're going to err on the side of them wanting to do more to continue to control inflation," said Anastasia Amoroso, chief investment strategist at iCapital Network, an investment marketplace firm.
Traders now see 88.9% likelihood of a 50 basis-point rate hike at the central bank's meeting next month. IRPR
U.S. companies will start reporting first-quarter results in the coming weeks, with banks set to kick off the season in earnest next week. Analysts on average expect S&P 500 companies' earnings to have grown 6.4% in the March quarter, according to I/B/E/S data from Refinitiv. That compares with over 30% growth in the prior quarter.
"As we get into the heart of earnings season, I expect volatility to be very prominent," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. "We could see strong results that beat the highest expectations, but weak expectations for the next 12 months."
Among the 11 S&P 500 sector indexes, real estate .SPLRCR was among the deepest decliners, while the health sector index .SPXHC was among the top gainers.
Adding to cautious sentiment, Russian Foreign Minister Sergei Lavrov said Ukraine had presented Moscow with a draft peace deal that contained "unacceptable" elements, while the U.S. Senate voted to remove "most favored nation" trade status for Russia in one bill and ban oil imports in another.
Unofficially, the Dow Jones Industrial Average .DJI rose 0.25% to end at 34,583.57 points, while the S&P 500 .SPX gained 0.43% to 4,500.21.
The Nasdaq Composite .IXIC climbed 0.06% to 13,897.30.
With investors worried about the effect of rising interest rates, growth stocks with pricey valuations have underperformed value stocks so far in 2022.
In economic news, data showed the number of Americans filing new claims for unemployment benefits fell last week, indicating a further tightening of labor market conditions heading into the second quarter that could contribute to keeping inflation elevated.
Among other movers, HP Inc HPQ.N jumped 14.8% after Warren Buffett's Berkshire Hathaway Inc BRKa.N disclosed it purchased nearly 121 million shares of the personal computing and printing company.
Costco Wholesale Corp COST.O rallied 4% after the retailer late on Wednesday reported a surge in March sales.
American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 1.6% and 3.1% after Barclays warned of a recent jump in oil prices hurting first-quarter earnings.
Declining issues outnumbered advancing ones on the NYSE by a 1.11-to-1 ratio; on Nasdaq, a 1.45-to-1 ratio favored decliners.
The S&P 500 posted 32 new 52-week highs and 26 new lows; the Nasdaq Composite recorded 45 new highs and 219 new lows.
About 11.5 billion shares changed hands in U.S. exchanges, compared with the 13.0 billion daily average over the last 20 sessions.
S&P 500 and its forward P/E ratiohttps://tmsnrt.rs/3LN6zRL
Growth v Valuehttps://tmsnrt.rs/3JjrSsw
(Reporting by Bansari Mayur Kamdar and Praveen Paramasivam in Bengaluru, and by Noel Randewich in Oakland, Calif. Editing by Anil D'Silva and Matthew Lewis)
((noel.randewich@tr.com; Twitter: @randewich))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 1.6% and 3.1% after Barclays warned of a recent jump in oil prices hurting first-quarter earnings. By Bansari Mayur Kamdar and Noel Randewich April 7 (Reuters) - The S&P 500 ended higher on Thursday, with Pfizer and Tesla fueling a late-session rally while investors eyed the war in Ukraine and a potentially more aggressive Federal Reserve. Adding to cautious sentiment, Russian Foreign Minister Sergei Lavrov said Ukraine had presented Moscow with a draft peace deal that contained "unacceptable" elements, while the U.S. Senate voted to remove "most favored nation" trade status for Russia in one bill and ban oil imports in another.
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American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 1.6% and 3.1% after Barclays warned of a recent jump in oil prices hurting first-quarter earnings. By Bansari Mayur Kamdar and Noel Randewich April 7 (Reuters) - The S&P 500 ended higher on Thursday, with Pfizer and Tesla fueling a late-session rally while investors eyed the war in Ukraine and a potentially more aggressive Federal Reserve. Minutes released on Wednesday showed that Fed officials "generally agreed" to cut up to $95 billion a month from the central bank's asset holdings even as the war in Ukraine tempered the first U.S. interest rate increase since 2018.
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American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 1.6% and 3.1% after Barclays warned of a recent jump in oil prices hurting first-quarter earnings. By Bansari Mayur Kamdar and Noel Randewich April 7 (Reuters) - The S&P 500 ended higher on Thursday, with Pfizer and Tesla fueling a late-session rally while investors eyed the war in Ukraine and a potentially more aggressive Federal Reserve. “If you're following trends, then you're lost in this market because all this market is is chop.” Mega-cap growth stocks came under pressure earlier this week after comments from Fed policymakers and minutes from the central bank's March meeting suggested a rapid removal of stimulus measures put in place during the pandemic.
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American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 1.6% and 3.1% after Barclays warned of a recent jump in oil prices hurting first-quarter earnings. By Bansari Mayur Kamdar and Noel Randewich April 7 (Reuters) - The S&P 500 ended higher on Thursday, with Pfizer and Tesla fueling a late-session rally while investors eyed the war in Ukraine and a potentially more aggressive Federal Reserve. Traders now see 88.9% likelihood of a 50 basis-point rate hike at the central bank's meeting next month.
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3679.0
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2022-04-07 00:00:00 UTC
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Interesting AAL Put And Call Options For May 27th
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AAL
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https://www.nasdaq.com/articles/interesting-aal-put-and-call-options-for-may-27th
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nan
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nan
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the May 27th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new May 27th contracts and identified one put and one call contract of particular interest.
The put contract at the $16.50 strike price has a current bid of $1.27. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $16.50, but will also collect the premium, putting the cost basis of the shares at $15.23 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $16.76/share today.
Because the $16.50 strike represents an approximate 2% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 57%. 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 7.70% return on the cash commitment, or 56.19% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for American Airlines Group Inc, and highlighting in green where the $16.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $17.00 strike price has a current bid of $1.28. If an investor was to purchase shares of AAL stock at the current price level of $16.76/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $17.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 9.07% if the stock gets called away at the May 27th 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 $17.00 strike highlighted in red:
Considering the fact that the $17.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 50%. 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 7.64% boost of extra return to the investor, or 55.75% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 60%, while the implied volatility in the call contract example is 59%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 254 trading day closing values as well as today's price of $16.76) to be 48%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
Top YieldBoost Calls of the S&P 500 »
The views and 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 $17.00 strike highlighted in red: Considering the fact that the $17.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the May 27th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $17.00 strike highlighted in red: Considering the fact that the $17.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the May 27th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new May 27th 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 $17.00 strike highlighted in red: Considering the fact that the $17.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the May 27th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new May 27th contracts and identified one put and one call contract of particular interest.
|
At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new May 27th 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 $17.00 strike highlighted in red: Considering the fact that the $17.00 strike represents an approximate 1% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading today, for the May 27th expiration.
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3680.0
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2022-04-07 00:00:00 UTC
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US STOCKS-S&P 500 ends higher, lifted by Microsoft
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AAL
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https://www.nasdaq.com/articles/us-stocks-sp-500-ends-higher-lifted-by-microsoft
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nan
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nan
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By Bansari Mayur Kamdar and Noel Randewich
April 7 (Reuters) - The S&P 500 ended higher on Thursday, with Microsoft and Tesla fueling a late-session rally while investors eyed the war in Ukraine and a potentially more aggressive Federal Reserve.
Gains in Microsoft Corp MSFT.O, Tesla Inc TSLA.O and Apple Inc AAPL.O helped lift the S&P 500.
Also supporting the S&P 500, Pfizer Inc PFE.N jumped after it said it would buy privately held ReViral Ltd in a deal worth as much as $525 million, its second acquisition in less than six months to boost its drug portfolio.
The S&P traded at a loss for much of the day before rallying near the end of the session.
“We don't know how Ukraine is going resolve itself. We don't know how this hawkish Fed is going to impact the economy. We don't know if they can navigate a soft landing. What it equals is a whipsaw market,” said Dennis Dick, a trader at Bright Trading LLC. “If you're following trends, then you're lost in this market because all this market is is chop.”
Mega-cap growth stocks came under pressure earlier this week after comments from Fed policymakers and minutes from the central bank's March meeting suggested a rapid removal of stimulus measures put in place during the pandemic.
St. Louis Federal Reserve President James Bullard said the U.S. central bank's short-term policy rate should reach 3.5% later this year.
Minutes released on Wednesday showed that Fed officials "generally agreed" to cut up to $95 billion a month from the central bank's asset holdings even as the war in Ukraine tempered the first U.S. interest rate increase since 2018.
"The realization for investors continues that the Fed is still not at max hawkishness and we're going to err on the side of them wanting to do more to continue to control inflation," said Anastasia Amoroso, chief investment strategist at iCapital Network, an investment marketplace firm.
Traders now see 88.9% likelihood of a 50 basis-point rate hike at the central bank's meeting next month. IRPR
U.S. companies will start reporting first-quarter results in the coming weeks, with banks set to kick off the season in earnest next week. Analysts on average expect S&P 500 companies' earnings to have grown 6.4% in the March quarter, according to I/B/E/S data from Refinitiv. That compares with over 30% growth in the prior quarter.
"As we get into the heart of earnings season, I expect volatility to be very prominent," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. "We could see strong results that beat the highest expectations, but weak expectations for the next 12 months."
Among the 11 S&P 500 sector indexes, real estate .SPLRCR was among the deepest decliners, while the health sector index .SPXHC was among the top gainers.
Adding to cautious sentiment, Russian Foreign Minister Sergei Lavrov said Ukraine had presented Moscow with a draft peace deal that contained "unacceptable" elements, while the U.S. Senate voted to remove "most favored nation" trade status for Russia in one bill and ban oil imports in another.
According to preliminary data, the S&P 500 .SPX gained 17.83 points, or 0.40%, to end at 4,498.98 points, while the Nasdaq Composite .IXIC gained 5.78 points, or 0.04%, to 13,894.60. The Dow Jones Industrial Average .DJI rose 93.50 points, or 0.27%, to 34,590.01.
With investors worried about the effect of rising interest rates, growth stocks with pricey valuations have underperformed value stocks so far in 2022.
In economic news, data showed the number of Americans filing new claims for unemployment benefits fell last week, indicating a further tightening of labor market conditions heading into the second quarter that could contribute to keeping inflation elevated.
Among other movers, HP Inc HPQ.N jumped after Warren Buffett's Berkshire Hathaway Inc BRKa.N disclosed it purchased nearly 121 million shares of the personal computing and printing company.
Costco Wholesale Corp COST.O rallied after the retailer late on Wednesday reported a surge in March sales.
American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell after Barclays warned of a recent jump in oil prices hurting first-quarter earnings.
S&P 500 and its forward P/E ratiohttps://tmsnrt.rs/3LN6zRL
Growth v Valuehttps://tmsnrt.rs/3JjrSsw
(Reporting by Bansari Mayur Kamdar and Praveen Paramasivam in Bengaluru, and by Noel Randewich in Oakland, Calif. Editing by Anil D'Silva and Matthew Lewis)
((noel.randewich@tr.com; Twitter: @randewich))
The views and 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, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell after Barclays warned of a recent jump in oil prices hurting first-quarter earnings. By Bansari Mayur Kamdar and Noel Randewich April 7 (Reuters) - The S&P 500 ended higher on Thursday, with Microsoft and Tesla fueling a late-session rally while investors eyed the war in Ukraine and a potentially more aggressive Federal Reserve. Adding to cautious sentiment, Russian Foreign Minister Sergei Lavrov said Ukraine had presented Moscow with a draft peace deal that contained "unacceptable" elements, while the U.S. Senate voted to remove "most favored nation" trade status for Russia in one bill and ban oil imports in another.
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American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell after Barclays warned of a recent jump in oil prices hurting first-quarter earnings. By Bansari Mayur Kamdar and Noel Randewich April 7 (Reuters) - The S&P 500 ended higher on Thursday, with Microsoft and Tesla fueling a late-session rally while investors eyed the war in Ukraine and a potentially more aggressive Federal Reserve. Minutes released on Wednesday showed that Fed officials "generally agreed" to cut up to $95 billion a month from the central bank's asset holdings even as the war in Ukraine tempered the first U.S. interest rate increase since 2018.
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American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell after Barclays warned of a recent jump in oil prices hurting first-quarter earnings. By Bansari Mayur Kamdar and Noel Randewich April 7 (Reuters) - The S&P 500 ended higher on Thursday, with Microsoft and Tesla fueling a late-session rally while investors eyed the war in Ukraine and a potentially more aggressive Federal Reserve. “If you're following trends, then you're lost in this market because all this market is is chop.” Mega-cap growth stocks came under pressure earlier this week after comments from Fed policymakers and minutes from the central bank's March meeting suggested a rapid removal of stimulus measures put in place during the pandemic.
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American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell after Barclays warned of a recent jump in oil prices hurting first-quarter earnings. By Bansari Mayur Kamdar and Noel Randewich April 7 (Reuters) - The S&P 500 ended higher on Thursday, with Microsoft and Tesla fueling a late-session rally while investors eyed the war in Ukraine and a potentially more aggressive Federal Reserve. Traders now see 88.9% likelihood of a 50 basis-point rate hike at the central bank's meeting next month.
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3681.0
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2022-04-07 00:00:00 UTC
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US STOCKS-Wall St slips for third day as Fed, Ukraine weigh
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AAL
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https://www.nasdaq.com/articles/us-stocks-wall-st-slips-for-third-day-as-fed-ukraine-weigh
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nan
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nan
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By Bansari Mayur Kamdar and Praveen Paramasivam
April 7 (Reuters) - Wall Street's main indexes fell for a third straight session on Thursday, as growth stocks extended losses on concerns over a more hawkish Federal Reserve and the war in Ukraine.
The tech-heavy Nasdaq .IXIC took the biggest hit among the three main indexes, falling more than 1% and adding to a near 4.5% drop over the past two sessions.
Mega-cap growth stocks have come under pressure this week after comments from Fed policymakers and minutes from the central bank's March meeting suggested a rapid removal of stimulus measures put in place during the pandemic.
St. Louis Federal Reserve President James Bullard said the the U.S. central bank's short term policy rate should reach 3.5% later this year.
Minutes released on Wednesday showed that Fed officials "generally agreed" to cut up to $95 billion a month from the central bank's asset holdings even as the war in Ukraine tempered the first U.S. interest rate increase since 2018.
Traders now see 88.9% likelihood of a 50 basis points rate hike at the central bank's meeting next month. IRPR
"There's really nothing to support the markets probably between now and the earning season," said Anastasia Amoroso, chief investment strategist at iCapital Network, an investment marketplace firm.
"The realization for investors continues that the Fed is still not at max hawkishness and we're going to err on the side of them wanting to do more to continue to control inflation. Against that backdrop, it's really a struggle for equities to perform."
Tesla Inc TSLA.O, Meta Platforms Inc FB.O, Apple Inc AAPL.O, Amazon.com Inc AMZN.O and Alphabet Inc GOOGL.O fell between 0.7% and 2.4%.
Meanwhile, defensive stocks like consumer staples .SPLRCS hit an all-time high.
Adding to the cautious mood, Russian Foreign Minister Sergei Lavrov said Ukraine had presented Moscow with a draft peace deal that contained "unacceptable" elements, while the U.S. Senate voted to remove "most favored nation" trade status for Russia in one bill and ban oil imports in another.
At 12:36 a.m. ET, the Dow Jones Industrial Average .DJI was down 164.08 points, or 0.48%, at 34,332.43, the S&P 500 .SPX was down 23.02 points, or 0.51%, at 4,458.13, and the Nasdaq Composite .IXIC was down 151.05 points, or 1.09%, at 13,737.76.
In economic news, data showed the number of Americans filing new claims for unemployment benefits fell last week, indicating a further tightening of labor market conditions heading into the second quarter that could contribute to keeping inflation elevated.
Among other movers, HP Inc HPQ.N jumped 16.4% after Warren Buffett's Berkshire Hathaway Inc BRKa.N disclosed that it had purchased nearly 121 million shares of the personal computing and printing company.
American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 3.0% and 5.0% after Barclays warned of a recent jump in oil prices hurting first-quarter earnings.
U.S. companies will start reporting first-quarter results in the coming weeks, with banks set to kick off the season in earnest next week.
Declining issues outnumbered advancers for a 2.36-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 2.64-to-1 ratio on the Nasdaq.
The S&P index recorded 28 new 52-week highs and 25 new lows, while the Nasdaq recorded 34 new highs and 183 new lows.
(Reporting by Bansari Mayur Kamdar and Praveen Paramasivam in Bengaluru; Editing by Sriraj Kalluvila and Anil D'Silva)
((BansariMayur.Kamdar@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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American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 3.0% and 5.0% after Barclays warned of a recent jump in oil prices hurting first-quarter earnings. By Bansari Mayur Kamdar and Praveen Paramasivam April 7 (Reuters) - Wall Street's main indexes fell for a third straight session on Thursday, as growth stocks extended losses on concerns over a more hawkish Federal Reserve and the war in Ukraine. Adding to the cautious mood, Russian Foreign Minister Sergei Lavrov said Ukraine had presented Moscow with a draft peace deal that contained "unacceptable" elements, while the U.S. Senate voted to remove "most favored nation" trade status for Russia in one bill and ban oil imports in another.
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American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 3.0% and 5.0% after Barclays warned of a recent jump in oil prices hurting first-quarter earnings. By Bansari Mayur Kamdar and Praveen Paramasivam April 7 (Reuters) - Wall Street's main indexes fell for a third straight session on Thursday, as growth stocks extended losses on concerns over a more hawkish Federal Reserve and the war in Ukraine. The S&P index recorded 28 new 52-week highs and 25 new lows, while the Nasdaq recorded 34 new highs and 183 new lows.
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American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 3.0% and 5.0% after Barclays warned of a recent jump in oil prices hurting first-quarter earnings. By Bansari Mayur Kamdar and Praveen Paramasivam April 7 (Reuters) - Wall Street's main indexes fell for a third straight session on Thursday, as growth stocks extended losses on concerns over a more hawkish Federal Reserve and the war in Ukraine. Mega-cap growth stocks have come under pressure this week after comments from Fed policymakers and minutes from the central bank's March meeting suggested a rapid removal of stimulus measures put in place during the pandemic.
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American Airlines Group Inc AAL.O, Delta Air Lines Inc DAL.N, Southwest Airlines Co LUV.N and United Airlines Holdings Inc UAL.O fell between 3.0% and 5.0% after Barclays warned of a recent jump in oil prices hurting first-quarter earnings. By Bansari Mayur Kamdar and Praveen Paramasivam April 7 (Reuters) - Wall Street's main indexes fell for a third straight session on Thursday, as growth stocks extended losses on concerns over a more hawkish Federal Reserve and the war in Ukraine. Traders now see 88.9% likelihood of a 50 basis points rate hike at the central bank's meeting next month.
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3682.0
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2022-04-06 00:00:00 UTC
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Why Airline Stocks Lost Some Altitude Today
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AAL
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https://www.nasdaq.com/articles/why-airline-stocks-lost-some-altitude-today
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nan
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nan
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What happened
America's pandemic-ravaged air travel industry was in focus on Wednesday as investors turned their attention to rising interest rates and the potential for stock market declines. Some of the biggest U.S. airlines fell in response:
American Airlines Group (NASDAQ: AAL) closed down 2.6%.
Southwest Airlines (NYSE: LUV) fell 3.3%.
United Airlines Holdings (NASDAQ: UAL) and Delta Air Lines (NYSE: DAL) both closed down 3.7%.
Image source: Southwest Airlines.
So what
Basically, every major airline stock is down. But why?
Speaking in Minneapolis on Tuesday, Federal Reserve Governor Lael Brainard warned that the Fed intends to "continue tightening monetary policy methodically through a series of interest rate increases and by starting to reduce the balance sheet at a rapid pace as soon as our May meeting."
Bond markets responded immediately to that prospect: The yield on the 10-year Treasury note rose roughly 14 basis points to 2.55% as investors shifted some of their attention away from stocks and toward bonds.
Granted, an increase of 14 basis points in bond yields may not sound like much, but in percentage terms, that's a 6% increase in the cost of debt. As it just so happens that airlines are some of the most indebted companies on the block, and thus have a lot to lose from higher debt costs. According to data from S&P Global Market Intelligence:
American Airlines' total debt, net of cash, stands at $33.8 billion -- against a market capitalization of only $11.6 billion.
United is a bit better off with $22.7 billion in net debt and a market capitalization of $14.5 billion.
Delta's sitting relatively pretty with $24.5 billion in debt -- which is a lot, but is at least less than its market cap of $24.9 billion.
By contrast, Southwest remains the crown jewel of the industry, with a $26.8 billion market cap and $3.2 billion in net cash.
Now what
High debt levels in an era of rising interest rates increase the risk that a company won't be able to pay its debts. Even in a less-worst-case scenario, though, higher interest rates on high levels of debt mean more money going to pay interest on debt, and less money falling to the bottom line as profit for investors to share in.
If you're inclined to view Wednesday's sell-off in airline stocks as less of a disaster and more of an opportunity, you might want to start your search with the sole airline on this list that isn't carrying net debt: Southwest Airlines.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines 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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Some of the biggest U.S. airlines fell in response: American Airlines Group (NASDAQ: AAL) closed down 2.6%. What happened America's pandemic-ravaged air travel industry was in focus on Wednesday as investors turned their attention to rising interest rates and the potential for stock market declines. United Airlines Holdings (NASDAQ: UAL) and Delta Air Lines (NYSE: DAL) both closed down 3.7%.
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Some of the biggest U.S. airlines fell in response: American Airlines Group (NASDAQ: AAL) closed down 2.6%. According to data from S&P Global Market Intelligence: American Airlines' total debt, net of cash, stands at $33.8 billion -- against a market capitalization of only $11.6 billion. Even in a less-worst-case scenario, though, higher interest rates on high levels of debt mean more money going to pay interest on debt, and less money falling to the bottom line as profit for investors to share in.
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Some of the biggest U.S. airlines fell in response: American Airlines Group (NASDAQ: AAL) closed down 2.6%. According to data from S&P Global Market Intelligence: American Airlines' total debt, net of cash, stands at $33.8 billion -- against a market capitalization of only $11.6 billion. If you're inclined to view Wednesday's sell-off in airline stocks as less of a disaster and more of an opportunity, you might want to start your search with the sole airline on this list that isn't carrying net debt: Southwest Airlines.
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Some of the biggest U.S. airlines fell in response: American Airlines Group (NASDAQ: AAL) closed down 2.6%. Southwest Airlines (NYSE: LUV) fell 3.3%. Delta's sitting relatively pretty with $24.5 billion in debt -- which is a lot, but is at least less than its market cap of $24.9 billion.
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3683.0
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2022-04-06 00:00:00 UTC
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JetBlue defends bid for Spirit as analysts question merit
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AAL
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https://www.nasdaq.com/articles/jetblue-defends-bid-for-spirit-as-analysts-question-merit
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nan
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nan
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By Rajesh Kumar Singh and Nathan Gomes
April 6 (Reuters) - JetBlue Airways Corp JBLU.O on Wednesday mounted a vigorous defense of its unsolicited $3.6 billion bid to acquire ultra-low-cost carrier Spirit Airlines SAVE.N, saying the company is "highly confident" of securing regulatory approval for the deal.
The New York-based carrier on Tuesday surprised Wall Street with a $33 per share cash offer, potentially derailing a $2.7 billion merger plan between Spirit and Frontier Group Holdings Inc ULCC.O.
JetBlue said while it expects a lengthy regulatory process, it is counting on its track record of lowering fares and increasing competition to get the nod.
"We are convinced...that average fares come down more when JetBlue flies into a legacy market than when an ultra-low-cost carrier does," Chief Executive Robin Hayes told investors on a call.
Analysts have questioned the benefits of JetBlue's Spirit bid.
Though both carriers have fleets dominated by Airbus SE AIR.PA, any potential cost savings from the deal will be diluted by JetBlue's need to bump up the pay of Spirit pilots, who are on a lower band, Raymond James analyst Savanthi Syth said in a note to clients.
JetBlue expects the deal to inflate labor costs, but said it also would result in certain economies of scale, producing savings of $600 million to $700 million within three years. It also expects the transaction to be accretive to its earnings in the first year.
Shares of Spirit were off 2.5% at $26.23 in morning trade, well below the offer, suggesting investors were skeptical of the deal going through. JetBlue stock was down 6%.
The proposed deal is widely expected to attract close antitrust scrutiny from President Joe Biden's administration, which has taken a tough stance against mergers that may reduce competition and increase prices for consumers.
JetBlue and American Airlines Group Inc AAL.O are already facing a lawsuit from the U.S. Department of Justice over their Northeastern Alliance.
Hayes said the company would not sacrifice the Northeastern Alliance in order to secure regulatory approval for the Spirit deal.
The partnership, announced in July 2020, allows the carriers to sell each other's flights in their New York-area and Boston networks and link frequent flyer programs in a move aimed at helping them to better compete with United Airlines UAL.O and Delta Air Lines DAL.N in the Northeast.
(Reporting by Rajesh Kumar Singh in Chicago, Abhijith Ganapavaram and Nathan Gomes in Bengaluru; Editing by Krishna Chandra Eluri and Bill Berkrot)
((rajeshkumar.singh@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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JetBlue and American Airlines Group Inc AAL.O are already facing a lawsuit from the U.S. Department of Justice over their Northeastern Alliance. By Rajesh Kumar Singh and Nathan Gomes April 6 (Reuters) - JetBlue Airways Corp JBLU.O on Wednesday mounted a vigorous defense of its unsolicited $3.6 billion bid to acquire ultra-low-cost carrier Spirit Airlines SAVE.N, saying the company is "highly confident" of securing regulatory approval for the deal. Though both carriers have fleets dominated by Airbus SE AIR.PA, any potential cost savings from the deal will be diluted by JetBlue's need to bump up the pay of Spirit pilots, who are on a lower band, Raymond James analyst Savanthi Syth said in a note to clients.
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JetBlue and American Airlines Group Inc AAL.O are already facing a lawsuit from the U.S. Department of Justice over their Northeastern Alliance. By Rajesh Kumar Singh and Nathan Gomes April 6 (Reuters) - JetBlue Airways Corp JBLU.O on Wednesday mounted a vigorous defense of its unsolicited $3.6 billion bid to acquire ultra-low-cost carrier Spirit Airlines SAVE.N, saying the company is "highly confident" of securing regulatory approval for the deal. The New York-based carrier on Tuesday surprised Wall Street with a $33 per share cash offer, potentially derailing a $2.7 billion merger plan between Spirit and Frontier Group Holdings Inc ULCC.O.
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JetBlue and American Airlines Group Inc AAL.O are already facing a lawsuit from the U.S. Department of Justice over their Northeastern Alliance. By Rajesh Kumar Singh and Nathan Gomes April 6 (Reuters) - JetBlue Airways Corp JBLU.O on Wednesday mounted a vigorous defense of its unsolicited $3.6 billion bid to acquire ultra-low-cost carrier Spirit Airlines SAVE.N, saying the company is "highly confident" of securing regulatory approval for the deal. Though both carriers have fleets dominated by Airbus SE AIR.PA, any potential cost savings from the deal will be diluted by JetBlue's need to bump up the pay of Spirit pilots, who are on a lower band, Raymond James analyst Savanthi Syth said in a note to clients.
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JetBlue and American Airlines Group Inc AAL.O are already facing a lawsuit from the U.S. Department of Justice over their Northeastern Alliance. By Rajesh Kumar Singh and Nathan Gomes April 6 (Reuters) - JetBlue Airways Corp JBLU.O on Wednesday mounted a vigorous defense of its unsolicited $3.6 billion bid to acquire ultra-low-cost carrier Spirit Airlines SAVE.N, saying the company is "highly confident" of securing regulatory approval for the deal. Analysts have questioned the benefits of JetBlue's Spirit bid.
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3684.0
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2022-04-06 00:00:00 UTC
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South Africa's Amplats CEO says carmakers looking for palladium after Russia sanctions
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AAL
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https://www.nasdaq.com/articles/south-africas-amplats-ceo-says-carmakers-looking-for-palladium-after-russia-sanctions
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nan
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nan
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Adds details
JOHANNESBURG, April 6 (Reuters) - South Africa's Anglo American Platinum AMSJ.J (Amplats) has received enquiries from manufacturers and carmakers seeking palladium in the wake of Western sanctions on top producer Russia, CEO Natascha Viljoen said on Wednesday.
Palladium users with no existing contracts with the company have contacted Amplats about "potential alternative sources of palladium", Viljoen told Reuters in an interview on the sidelines of the PGMs Industry Day, a platinum group metals (PGMs) mining conference in Johannesburg.
Russia produces 25-30% of the world's supply of palladium, a metal used by automakers in engine exhausts to reduce emissions.
"Where we can accommodate them [new customers] after looking after our long-term customers, we will obviously try as much as possible," Viljoen said, adding however that "we can't make any firm commitments".
Miners typically utilize long-term contracts, making surplus supply scarce.
It would take at least five years for South African palladium to ramp up to replace Russian production of the metal, and it may never fully get there, Viljoen said.
Russian metal can reach the market through other avenues, like China, so the supply chain is likely to shift rather than Russian supply fully stopping, she said.
Instead, the sanctions on Russia may result in a premium on South African palladium, while there may be a discount on palladium being sold into China, Viljoen said.
(Reporting by Helen Reid; editing by David Evans and Sandra Maler)
((Helen.Reid@thomsonreuters.com; +27 66 156 5214;))
The views and 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 details JOHANNESBURG, April 6 (Reuters) - South Africa's Anglo American Platinum AMSJ.J (Amplats) has received enquiries from manufacturers and carmakers seeking palladium in the wake of Western sanctions on top producer Russia, CEO Natascha Viljoen said on Wednesday. Russia produces 25-30% of the world's supply of palladium, a metal used by automakers in engine exhausts to reduce emissions. It would take at least five years for South African palladium to ramp up to replace Russian production of the metal, and it may never fully get there, Viljoen said.
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Miners typically utilize long-term contracts, making surplus supply scarce. It would take at least five years for South African palladium to ramp up to replace Russian production of the metal, and it may never fully get there, Viljoen said. Russian metal can reach the market through other avenues, like China, so the supply chain is likely to shift rather than Russian supply fully stopping, she said.
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Adds details JOHANNESBURG, April 6 (Reuters) - South Africa's Anglo American Platinum AMSJ.J (Amplats) has received enquiries from manufacturers and carmakers seeking palladium in the wake of Western sanctions on top producer Russia, CEO Natascha Viljoen said on Wednesday. Palladium users with no existing contracts with the company have contacted Amplats about "potential alternative sources of palladium", Viljoen told Reuters in an interview on the sidelines of the PGMs Industry Day, a platinum group metals (PGMs) mining conference in Johannesburg. Instead, the sanctions on Russia may result in a premium on South African palladium, while there may be a discount on palladium being sold into China, Viljoen said.
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Adds details JOHANNESBURG, April 6 (Reuters) - South Africa's Anglo American Platinum AMSJ.J (Amplats) has received enquiries from manufacturers and carmakers seeking palladium in the wake of Western sanctions on top producer Russia, CEO Natascha Viljoen said on Wednesday. Russia produces 25-30% of the world's supply of palladium, a metal used by automakers in engine exhausts to reduce emissions. It would take at least five years for South African palladium to ramp up to replace Russian production of the metal, and it may never fully get there, Viljoen said.
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3685.0
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2022-04-06 00:00:00 UTC
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Anglo American Platinum says carmakers looking for palladium after Russia sanctions
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AAL
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https://www.nasdaq.com/articles/anglo-american-platinum-says-carmakers-looking-for-palladium-after-russia-sanctions
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nan
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nan
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JOHANNESBURG, April 6 (Reuters) - Anglo American Platinum has received enquiries from manufacturers and carmakers about sourcing palladium in the wake of Western sanctions on top producer Russia, CEO Natascha Viljoen said on Wednesday.
Palladium users with no existing contracts with the company have contacted it about "potential alternative sources of palladium", Viljoen told Reuters in an interview on the sidelines of the PGMs Industry Day, a platinum group metals (PGMs) mining conference in Johannesburg.
Russia produces 25-30% of the world's supply of palladium, a metal used by automakers in engine exhausts to reduce emissions.
"Where we can accommodate them [new customers] after looking after our long-term customers, we will obviously try as much as possible," Viljoen said, adding however that "we can't make any firm commitments".
(Reporting by Helen Reid; editing by David Evans)
((Helen.Reid@thomsonreuters.com; +27 66 156 5214;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
JOHANNESBURG, April 6 (Reuters) - Anglo American Platinum has received enquiries from manufacturers and carmakers about sourcing palladium in the wake of Western sanctions on top producer Russia, CEO Natascha Viljoen said on Wednesday. Palladium users with no existing contracts with the company have contacted it about "potential alternative sources of palladium", Viljoen told Reuters in an interview on the sidelines of the PGMs Industry Day, a platinum group metals (PGMs) mining conference in Johannesburg. Russia produces 25-30% of the world's supply of palladium, a metal used by automakers in engine exhausts to reduce emissions.
|
JOHANNESBURG, April 6 (Reuters) - Anglo American Platinum has received enquiries from manufacturers and carmakers about sourcing palladium in the wake of Western sanctions on top producer Russia, CEO Natascha Viljoen said on Wednesday. Palladium users with no existing contracts with the company have contacted it about "potential alternative sources of palladium", Viljoen told Reuters in an interview on the sidelines of the PGMs Industry Day, a platinum group metals (PGMs) mining conference in Johannesburg. Russia produces 25-30% of the world's supply of palladium, a metal used by automakers in engine exhausts to reduce emissions.
|
JOHANNESBURG, April 6 (Reuters) - Anglo American Platinum has received enquiries from manufacturers and carmakers about sourcing palladium in the wake of Western sanctions on top producer Russia, CEO Natascha Viljoen said on Wednesday. Palladium users with no existing contracts with the company have contacted it about "potential alternative sources of palladium", Viljoen told Reuters in an interview on the sidelines of the PGMs Industry Day, a platinum group metals (PGMs) mining conference in Johannesburg. (Reporting by Helen Reid; editing by David Evans) ((Helen.Reid@thomsonreuters.com; +27 66 156 5214;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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JOHANNESBURG, April 6 (Reuters) - Anglo American Platinum has received enquiries from manufacturers and carmakers about sourcing palladium in the wake of Western sanctions on top producer Russia, CEO Natascha Viljoen said on Wednesday. Palladium users with no existing contracts with the company have contacted it about "potential alternative sources of palladium", Viljoen told Reuters in an interview on the sidelines of the PGMs Industry Day, a platinum group metals (PGMs) mining conference in Johannesburg. Russia produces 25-30% of the world's supply of palladium, a metal used by automakers in engine exhausts to reduce emissions.
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3686.0
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2022-04-06 00:00:00 UTC
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JetBlue's Spirit bid takes Wall Street by surprise, analysts question deal merits
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AAL
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https://www.nasdaq.com/articles/jetblues-spirit-bid-takes-wall-street-by-surprise-analysts-question-deal-merits
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nan
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nan
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April 6 (Reuters) - JetBlue Airways Corp's JBLU.O $3.6 billion bid for low-cost airline Spirit Airlines SAVE.N caught Wall Street off guard on Wednesday, with analysts questioning the benefits of a merger between the two carriers.
Though both carriers have a fleet dominated by Airbus SE AIR.PA, any potential cost savings from the deal will be diluted as JetBlue would need to bump up the pay of Spirit pilots, who are on a lower band, Raymond James analyst Savanthi Syth wrote in a note.
JetBlue said on Tuesday it made an unsolicited $3.6 billion bid for Spirit, at $33 per share, potentially derailing a $2.7 billion merger plan between Spirit and Frontier Group Holdings Inc ULCC.O.
Shares of Spirit fell 2.5% to $26.28 premarket, well below the offer, suggesting investors were skeptical of the deal going through. JetBlue stock was down 3%, while Frontier was also down 4%.
JetBlue's management is hosting a conference call at 8 am ET on Wednesday where it will speak more about the merger.
Frontier and JetBlue are vying to buy Spirit to create a low-cost airline they hope will lure more leisure travelers, which will help them compete better with legacy U.S. airlines.
However, any combination will likely invite close antitrust scrutiny from President Joe Biden's administration, which has taken a tough stance against mergers that may reduce competition and increase prices.
JetBlue and American Airlines Group Inc AAL.O are already facing a lawsuit from the U.S. Department of Justice over their Northeastern Alliance.
JetBlue Chief Executive Officer Robin Hayes said he expects a vigorous antitrust review for any deal with Spirit from the U.S. Justice Department that could last into 2023.
"We struggle with the idea (of a merger) given both airlines are concentrated on the East Coast with significant operations in Fort Lauderdale, and would suspect there will be heavy regulatory pushback," Brokerage MKM Partners said.
(Reporting by Nathan Gomes in Bengaluru; Editing by Krishna Chandra Eluri)
((Nathan.Gomes@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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JetBlue and American Airlines Group Inc AAL.O are already facing a lawsuit from the U.S. Department of Justice over their Northeastern Alliance. Though both carriers have a fleet dominated by Airbus SE AIR.PA, any potential cost savings from the deal will be diluted as JetBlue would need to bump up the pay of Spirit pilots, who are on a lower band, Raymond James analyst Savanthi Syth wrote in a note. However, any combination will likely invite close antitrust scrutiny from President Joe Biden's administration, which has taken a tough stance against mergers that may reduce competition and increase prices.
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JetBlue and American Airlines Group Inc AAL.O are already facing a lawsuit from the U.S. Department of Justice over their Northeastern Alliance. April 6 (Reuters) - JetBlue Airways Corp's JBLU.O $3.6 billion bid for low-cost airline Spirit Airlines SAVE.N caught Wall Street off guard on Wednesday, with analysts questioning the benefits of a merger between the two carriers. JetBlue said on Tuesday it made an unsolicited $3.6 billion bid for Spirit, at $33 per share, potentially derailing a $2.7 billion merger plan between Spirit and Frontier Group Holdings Inc ULCC.O.
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JetBlue and American Airlines Group Inc AAL.O are already facing a lawsuit from the U.S. Department of Justice over their Northeastern Alliance. April 6 (Reuters) - JetBlue Airways Corp's JBLU.O $3.6 billion bid for low-cost airline Spirit Airlines SAVE.N caught Wall Street off guard on Wednesday, with analysts questioning the benefits of a merger between the two carriers. JetBlue said on Tuesday it made an unsolicited $3.6 billion bid for Spirit, at $33 per share, potentially derailing a $2.7 billion merger plan between Spirit and Frontier Group Holdings Inc ULCC.O.
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JetBlue and American Airlines Group Inc AAL.O are already facing a lawsuit from the U.S. Department of Justice over their Northeastern Alliance. April 6 (Reuters) - JetBlue Airways Corp's JBLU.O $3.6 billion bid for low-cost airline Spirit Airlines SAVE.N caught Wall Street off guard on Wednesday, with analysts questioning the benefits of a merger between the two carriers. Though both carriers have a fleet dominated by Airbus SE AIR.PA, any potential cost savings from the deal will be diluted as JetBlue would need to bump up the pay of Spirit pilots, who are on a lower band, Raymond James analyst Savanthi Syth wrote in a note.
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3687.0
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2022-04-05 00:00:00 UTC
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Buying American Airlines Is Betting on an Earnings Beat
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https://www.nasdaq.com/articles/buying-american-airlines-is-betting-on-an-earnings-beat
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
American Airlines (AAL) stock bounced off a low in March
Analysts are betting it beats estimates later this month
The debt, the debt, the debt
Source: GagliardiPhotography / Shutterstock.com
American Airlines (NASDAQ:AAL) stock took off in mid-March. Shares were due to open at $18.16 on April 4, 40% higher than they were on March 7.
The end of mask mandates is helping power the stock higher. The company also raised its revenue outlook in mid-March. Combine that with easing fuel prices and there are high hopes for profits ahead.
An indication of that future comes when American reports its first quarter later this month. A loss of $2.50/share is expected. Beat that handily and the bulls will run.
AAL American Airlines Group Inc. $17.86
Bulls See Clear Skies
There are some facts about airline stocks that aren’t in dispute.
Demand is returning at airports. TSA traffic counts showed 2.2 million passengers traveled by air on April 3. In 2019 the number was 2.46 million.
7 No-Brainer Stocks to Buy for April
There seems to be enormous pent-up demand. Prices are climbing with jet fuel costs and people aren’t complaining about it. They’re complaining about other things, like flight cancellations and high load factors. But they seem desperate to return to normal.
That means American could easily top its revenue estimate of $8.45 billion. That would be more than double the revenue of a year ago. In 2019 American had revenue of $45.7 billion and net income of $1.4 billion, $3.10/share.
American also changed CEOs this month. Robert Isom is the new boss, replacing Doug Parker. There’s always a warm glow on a management change, although experienced analysts aren’t expecting much.
Bears See Big Debts
In general, analysts have yet to turn around on AAL stock. Tipranks counts only one bull among the 14 following it, with three sellers.
A look at the airline’s balance shows the trouble. American took on over $13 billion in new debt as it struggled to survive the pandemic. It had $42.2 billion in debt at the end of 2021, against $13.4 billion in cash.
Some of that debt carries a coupon rate of 11.75%. Even notes carrying a rate of 3.75% are still selling below par. They bounced off a low of 0.82 in February but are only asking 0.92 today. That’s still an effective rate of over 4%. Fitch recently reaffirmed the airline’s credit rating at B- but stable.
I warned investors away from American back in December 2020, when its price was near its current level. Its market cap is now $11.6 billion, barely one-fourth its debt level.
There are two ways for companies to raise cash, and debt is just one of them. The other is by selling more stock, diluting existing shareholders. American has added 200 million new shares since the end of 2019, an increase of nearly 50%. Our Faisal Humayun is concerned that another equity raise could be coming. That could wipe out the recent gains of current shareholders.
The Bottom Line on AAL Stock
American Airlines stock is not yet an investment, except for very aggressive buyers.
At best it’s a speculation. It’s a way for you to get action on the economic temperature. Over the last year American stock has traded for as much as $24/share and for as little as $12. Options through the end of the month indicate substantial interest at $20 by the end April, indicating it’s due for a 10% gain.
But American has a long, long way to go before it returns to normal. Even beating 2019’s earnings won’t make a big dent in that debt. As a long-term investor I believe there are easier ways to make money, even within the airline sector. Consider the debt of Southwest Airlines (NYSE:LUV), excluding capitalized leases, is now less than its 2021 revenue.
If you want to own a normal airline stock, buy a normal-looking balance sheet.
On the date of publication, Dana Blankenhorn held no positions in companies mentioned in this story. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com, tweet him at @danablankenhorn, or subscribe to his Substack.
The post Buying American Airlines Is Betting on an Earnings Beat appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (AAL) stock bounced off a low in March Analysts are betting it beats estimates later this month The debt, the debt, the debt Source: GagliardiPhotography / Shutterstock.com American Airlines (NASDAQ:AAL) stock took off in mid-March. AAL American Airlines Group Inc. $17.86 Bulls See Clear Skies There are some facts about airline stocks that aren’t in dispute. Bears See Big Debts In general, analysts have yet to turn around on AAL stock.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (AAL) stock bounced off a low in March Analysts are betting it beats estimates later this month The debt, the debt, the debt Source: GagliardiPhotography / Shutterstock.com American Airlines (NASDAQ:AAL) stock took off in mid-March. The Bottom Line on AAL Stock American Airlines stock is not yet an investment, except for very aggressive buyers. AAL American Airlines Group Inc. $17.86 Bulls See Clear Skies There are some facts about airline stocks that aren’t in dispute.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (AAL) stock bounced off a low in March Analysts are betting it beats estimates later this month The debt, the debt, the debt Source: GagliardiPhotography / Shutterstock.com American Airlines (NASDAQ:AAL) stock took off in mid-March. AAL American Airlines Group Inc. $17.86 Bulls See Clear Skies There are some facts about airline stocks that aren’t in dispute. The Bottom Line on AAL Stock American Airlines stock is not yet an investment, except for very aggressive buyers.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (AAL) stock bounced off a low in March Analysts are betting it beats estimates later this month The debt, the debt, the debt Source: GagliardiPhotography / Shutterstock.com American Airlines (NASDAQ:AAL) stock took off in mid-March. AAL American Airlines Group Inc. $17.86 Bulls See Clear Skies There are some facts about airline stocks that aren’t in dispute. Bears See Big Debts In general, analysts have yet to turn around on AAL stock.
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3688.0
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2022-04-04 00:00:00 UTC
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EXCLUSIVE-Investors warn European companies over climate accounting
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https://www.nasdaq.com/articles/exclusive-investors-warn-european-companies-over-climate-accounting
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By Simon Jessop
LONDON, April 5 (Reuters) - Thirty-four investors managing more than $7 trillion in assets have warned 17 of Europe's largest companies, including BP BP.L and Volkswagen VOWG_p.DE, that they could challenge board directors over their accounting of climate risks.
The move is the latest push by investors to pressure companies and their auditors, charging them with not moving fast enough to adapt to the world's transition to a low-carbon economy or being clear enough about the potential impacts.
In letters sent between December and February and seen by Reuters, the investors told the companies their accounts did not reflect the fallout from climate change on their assets and liabilities. For example, some assets may depreciate faster in value while demand for certain products may fall.
The need for faster action to cap global warming at 1.5 degrees Celsius and mitigate its worst extremes was reiterated by U.N. climate scientists in a landmark report on Monday.
"Investors cannot understand the true value of a company without knowing the embedded climate risks," Natasha Landell-Mills, partner and head of stewardship at investment manager Sarasin & Partners, one of the signatories to the letters, said in an interview.
Others to sign include the fund arm of HSBC HSBA.L, French public pension scheme ERAFP, and BMO Global Asset Management EMEA, part of U.S. asset manager Columbia Threadneedle.
Investors have tried to press the companies on the issue before. In 2020, through the Institutional Investors Group on Climate Change, they laid out a series of steps boards needed to take to align their accounts with the Paris Agreement on climate, including changing key accounting assumptions.
The investors found that most companies failed to adequately respond, prompting the latest string of letters warning boards they faced opposition at their upcoming annual general meeting.
"From next voting season you should increasingly expect to see investors vote against Audit Committee directors’ reappointment, where high-risk companies fail to meet the expectations," the letters said.
Shareholder votes could also be cast against companies' decision to retain their auditors or a request to approve their financial statements, Landell-Mills said.
AUDITORS ALSO CONTACTED
Air Liquide AIRP.PA, Anglo American AAL.L, Arcelor Mittal MT.AS, BMW BMWG.DE, Daimler MBGn.DE, Enel ENEI.MI, Equinor EQNR.OL, Glencore GLEN.L, Rio Tinto RIO.L, Saint-Gobain SGOB.PA, Shell SHEL.L, Renault RENA.PA, CRH CRH.I, ThyssenKrupp TKAG.DE and TotalEnergies TTEF.PA also received letters.
The letters were copied to the companies' lead audit partners. Separately, the investors also contacted the largest accountants in Britain, the United States and France over the issue.
Landell-Mills said votes would be influenced by the latest annual reports, and that Sarasin had decided to vote against the financial statement and auditor at Rio Tinto's AGM, and abstain on whether to reelect the Audit Committee's chair.
She added she was pleased to see Shell include a 'sensitivity analysis' in the notes to its accounts, released after the letter had been sent, that showed impairments could hit $27-$33 billion based on average prices from four 1.5-2C climate change scenarios. Landell-Mills said she still wanted to know what a pure 1.5C scenario would mean for impairments.
Air Liquide and Saint Gobain both said they were liaising with the IIGCC, a European membership body for investors collaborating on climate change, and that climate risks were factored into their accounts. Anglo American said it was engaging with IIGCC.
Mercedes Benz, formerly Daimler, said it was in "constant and constructive" dialogue with the investors and would update its sustainability strategy on April 11. Equinor referred to its energy transition plan as being on a Paris-aligned pathway.
Enel said it would not comment on talks with shareholders. Glencore declined to comment on the letter, but its 2021 annual report contains a sensitivity analysis.
ThyssenKrupp shared a letter sent in reply to IIGCC member Rathbones Investment Management in which it said it understood investors' need for more detailed information and was "currently examining how we may implement your inquiry".
The rest of the companies did not respond to requests for comment.
While many companies have pledged to get to net-zero emissions and are under growing pressure from regulators to disclose their efforts, the majority have yet to align their business practices, including their accounts, with the goal, the investors say.
"We can’t rely on 'business as usual' accounting assumptions as the energy transition unfolds. Along with our commitment to be a net zero investor, ensuring company accounts are aligned to a 1.5°C degree future is a crucial first step," said Matt Crossman, stewardship director at Rathbones.
(Reporting by Simon Jessop in London Editing by Nick Zieminski)
((simon.jessop@thomsonreuters.com; +44 (0) 207 542 5052; Reuters Messaging: Reuters Messaging: simon.jessop.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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Air Liquide AIRP.PA, Anglo American AAL.L, Arcelor Mittal MT.AS, BMW BMWG.DE, Daimler MBGn.DE, Enel ENEI.MI, Equinor EQNR.OL, Glencore GLEN.L, Rio Tinto RIO.L, Saint-Gobain SGOB.PA, Shell SHEL.L, Renault RENA.PA, CRH CRH.I, ThyssenKrupp TKAG.DE and TotalEnergies TTEF.PA also received letters. By Simon Jessop LONDON, April 5 (Reuters) - Thirty-four investors managing more than $7 trillion in assets have warned 17 of Europe's largest companies, including BP BP.L and Volkswagen VOWG_p.DE, that they could challenge board directors over their accounting of climate risks. She added she was pleased to see Shell include a 'sensitivity analysis' in the notes to its accounts, released after the letter had been sent, that showed impairments could hit $27-$33 billion based on average prices from four 1.5-2C climate change scenarios.
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Air Liquide AIRP.PA, Anglo American AAL.L, Arcelor Mittal MT.AS, BMW BMWG.DE, Daimler MBGn.DE, Enel ENEI.MI, Equinor EQNR.OL, Glencore GLEN.L, Rio Tinto RIO.L, Saint-Gobain SGOB.PA, Shell SHEL.L, Renault RENA.PA, CRH CRH.I, ThyssenKrupp TKAG.DE and TotalEnergies TTEF.PA also received letters. By Simon Jessop LONDON, April 5 (Reuters) - Thirty-four investors managing more than $7 trillion in assets have warned 17 of Europe's largest companies, including BP BP.L and Volkswagen VOWG_p.DE, that they could challenge board directors over their accounting of climate risks. "From next voting season you should increasingly expect to see investors vote against Audit Committee directors’ reappointment, where high-risk companies fail to meet the expectations," the letters said.
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Air Liquide AIRP.PA, Anglo American AAL.L, Arcelor Mittal MT.AS, BMW BMWG.DE, Daimler MBGn.DE, Enel ENEI.MI, Equinor EQNR.OL, Glencore GLEN.L, Rio Tinto RIO.L, Saint-Gobain SGOB.PA, Shell SHEL.L, Renault RENA.PA, CRH CRH.I, ThyssenKrupp TKAG.DE and TotalEnergies TTEF.PA also received letters. By Simon Jessop LONDON, April 5 (Reuters) - Thirty-four investors managing more than $7 trillion in assets have warned 17 of Europe's largest companies, including BP BP.L and Volkswagen VOWG_p.DE, that they could challenge board directors over their accounting of climate risks. In letters sent between December and February and seen by Reuters, the investors told the companies their accounts did not reflect the fallout from climate change on their assets and liabilities.
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Air Liquide AIRP.PA, Anglo American AAL.L, Arcelor Mittal MT.AS, BMW BMWG.DE, Daimler MBGn.DE, Enel ENEI.MI, Equinor EQNR.OL, Glencore GLEN.L, Rio Tinto RIO.L, Saint-Gobain SGOB.PA, Shell SHEL.L, Renault RENA.PA, CRH CRH.I, ThyssenKrupp TKAG.DE and TotalEnergies TTEF.PA also received letters. By Simon Jessop LONDON, April 5 (Reuters) - Thirty-four investors managing more than $7 trillion in assets have warned 17 of Europe's largest companies, including BP BP.L and Volkswagen VOWG_p.DE, that they could challenge board directors over their accounting of climate risks. In 2020, through the Institutional Investors Group on Climate Change, they laid out a series of steps boards needed to take to align their accounts with the Paris Agreement on climate, including changing key accounting assumptions.
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3689.0
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2022-04-04 00:00:00 UTC
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Chile copper output falls steeply in February, government says
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https://www.nasdaq.com/articles/chile-copper-output-falls-steeply-in-february-government-says
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By Fabian Cambero
SANTIAGO, April 4 (Reuters) - Chile's copper production tumbled in February, government body Cochilco said on Monday, with state-owned copper giant Codelco seeing production edge up 0.7% year-on-year to 123,600 tonnes, but other major mines seeing output fall steeply.
The world's top copper producing country saw total production fall 7.5% in the month to 394,700 tonnes, the State Chilean Copper Commission (Cochilco) said in a report.
Output from Escondida - the largest copper deposit in the world which is controlled by BHP BHP.AX - fell 14.3% against the same period a year earlier to 69,900 tonnes.
Collahuasi - a venture involving Glencore GLEN.N and Anglo American AAL.L - recorded a year-on-year decrease of 11.2% to 46,900 tonnes in the month.
(Reporting by Fabian Cambero; Writing by Adam Jourdan)
((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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Collahuasi - a venture involving Glencore GLEN.N and Anglo American AAL.L - recorded a year-on-year decrease of 11.2% to 46,900 tonnes in the month. By Fabian Cambero SANTIAGO, April 4 (Reuters) - Chile's copper production tumbled in February, government body Cochilco said on Monday, with state-owned copper giant Codelco seeing production edge up 0.7% year-on-year to 123,600 tonnes, but other major mines seeing output fall steeply. Output from Escondida - the largest copper deposit in the world which is controlled by BHP BHP.AX - fell 14.3% against the same period a year earlier to 69,900 tonnes.
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Collahuasi - a venture involving Glencore GLEN.N and Anglo American AAL.L - recorded a year-on-year decrease of 11.2% to 46,900 tonnes in the month. By Fabian Cambero SANTIAGO, April 4 (Reuters) - Chile's copper production tumbled in February, government body Cochilco said on Monday, with state-owned copper giant Codelco seeing production edge up 0.7% year-on-year to 123,600 tonnes, but other major mines seeing output fall steeply. The world's top copper producing country saw total production fall 7.5% in the month to 394,700 tonnes, the State Chilean Copper Commission (Cochilco) said in a report.
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Collahuasi - a venture involving Glencore GLEN.N and Anglo American AAL.L - recorded a year-on-year decrease of 11.2% to 46,900 tonnes in the month. By Fabian Cambero SANTIAGO, April 4 (Reuters) - Chile's copper production tumbled in February, government body Cochilco said on Monday, with state-owned copper giant Codelco seeing production edge up 0.7% year-on-year to 123,600 tonnes, but other major mines seeing output fall steeply. The world's top copper producing country saw total production fall 7.5% in the month to 394,700 tonnes, the State Chilean Copper Commission (Cochilco) said in a report.
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Collahuasi - a venture involving Glencore GLEN.N and Anglo American AAL.L - recorded a year-on-year decrease of 11.2% to 46,900 tonnes in the month. By Fabian Cambero SANTIAGO, April 4 (Reuters) - Chile's copper production tumbled in February, government body Cochilco said on Monday, with state-owned copper giant Codelco seeing production edge up 0.7% year-on-year to 123,600 tonnes, but other major mines seeing output fall steeply. The world's top copper producing country saw total production fall 7.5% in the month to 394,700 tonnes, the State Chilean Copper Commission (Cochilco) said in a report.
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3690.0
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2022-04-01 00:00:00 UTC
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Visa's Golden Goose Remains Grounded
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https://www.nasdaq.com/articles/visas-golden-goose-remains-grounded
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In January, Visa's (NYSE: V) CFO pointed out a sharp recovery in cross-border activity late last year until omicron took hold. That's important because those transactions -- swipes in a country different than the country the card was issued in -- are especially profitable.
With the variant retreating, he expected international travel to rebound in February. That was before events in eastern Europe cast a shadow over the old continent. Now, management and shareholders are wondering when the lucrative transactions will return to normal. And the longer it takes, the more effect it will have to shareholders.
Image source: Getty Images.
Everywhere you want to be
Visa's payment network facilitates the movement of money across more than 200 countries and territories. That means that for decades, travelers across the globe have relied on Visa's payment network to facilitate spending no matter where they decided to go. And the complexity of dealing with different banking jurisdictions and currency exchange rates makes those transactions more expensive for customers due to fees. Those fees are extremely profitable for Visa.
That's why global travel is so important to the company's strength. When restrictions went into place to limit the spread of COVID-19, that travel collapsed. And profits collapsed with it. Operating income for its fiscal 2020 was down 9% from 2019.
Find more statistics at Statista
Same problem, different reason
When COVID-19 cases dropped this February, so did many of the travel restrictions throughout Europe. This opened the door for a potential resurgence in international travel -- and those cross-border fees. International transaction revenues had already approached their previous peak by the end of last year. But the world is unpredictable.
Data source: Visa. Chart by Author.
Only a few months after adding Sberbank -- the largest bank in Russia -- to its network, management was having to break out the percent of revenue coming from the country and its neighbor, Ukraine, after the former invaded the latter. For the record, it's 4% for Russia and 1% for Ukraine. Visa's CFO had already said he didn't expect international travel to return to pre-pandemic levels until mid-2023. Now the uncertainty around sanctions, inflation, and travel has the potential to delay the return of cross-border volume even further.
Sentiment and rising prices could be a potent combination
A recent survey by travel agency MMGY shows that half of American travelers want to wait and see how the situation evolves before making plans to travel to Europe. The heads of several other small ticketing agencies have seen that translate to a small drop in ticket sales, as well as some cancellations and postponements.
That's not even counting the effect of higher fuel costs. Earlier this month, executives from Delta, American Airlines, United, and JetBlue all said they expect to raise prices due to higher fuel costs. Ed Bastian of Delta specifically pointed to international flights as a target. The concerns over safety and higher prices could make it hard for international travel to rebound anytime soon.
Not all bad news
There is a potential silver lining. Of the company's revenue, 60% to 65% of it is linked to volumes. That means it is solely tied to the transaction amount. With inflation soaring across the globe, Visa will see higher volume on its network, resulting in higher revenue. But it is a double-edged sword. As prices rise, the demand for products and services falls.
Wall Street may be seeing through those dark clouds. The stock is now only 10% off its high after being down 24% less than a month ago. Since it benefits from inflation, Visa is in a unique position to weather that storm. But until international travel returns to pre-pandemic levels, profits will lag. As a shareholder, I'm not selling shares, but I wouldn't add to my position unless the stock revisited recent lows.
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Jason Hawthorne owns Visa. The Motley Fool owns and recommends Visa. The Motley Fool recommends Delta Air Lines and JetBlue Airways. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In January, Visa's (NYSE: V) CFO pointed out a sharp recovery in cross-border activity late last year until omicron took hold. Only a few months after adding Sberbank -- the largest bank in Russia -- to its network, management was having to break out the percent of revenue coming from the country and its neighbor, Ukraine, after the former invaded the latter. Earlier this month, executives from Delta, American Airlines, United, and JetBlue all said they expect to raise prices due to higher fuel costs.
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Visa's CFO had already said he didn't expect international travel to return to pre-pandemic levels until mid-2023. But until international travel returns to pre-pandemic levels, profits will lag. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
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Visa's CFO had already said he didn't expect international travel to return to pre-pandemic levels until mid-2023. Sentiment and rising prices could be a potent combination A recent survey by travel agency MMGY shows that half of American travelers want to wait and see how the situation evolves before making plans to travel to Europe. See the 10 stocks *Stock Advisor returns as of March 3, 2022 Jason Hawthorne owns Visa.
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Visa's CFO had already said he didn't expect international travel to return to pre-pandemic levels until mid-2023. Now the uncertainty around sanctions, inflation, and travel has the potential to delay the return of cross-border volume even further. With inflation soaring across the globe, Visa will see higher volume on its network, resulting in higher revenue.
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3691.0
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2022-03-31 00:00:00 UTC
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American Airlines (AAL) Gains As Market Dips: What You Should Know
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https://www.nasdaq.com/articles/american-airlines-aal-gains-as-market-dips%3A-what-you-should-know-0
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American Airlines (AAL) closed at $18.25 in the latest trading session, marking a +1.11% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.57%. At the same time, the Dow lost 1.56%, and the tech-heavy Nasdaq lost 0.09%.
Prior to today's trading, shares of the world's largest airline had gained 10.26% over the past month. This has outpaced the Transportation sector's gain of 6.72% and the S&P 500's gain of 5.37% in that time.
American Airlines will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$2.50, up 42.13% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $8.65 billion, up 115.85% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$2.73 per share and revenue of $42.88 billion. These totals would mark changes of +67.42% and +43.49%, respectively, from last year.
Any recent changes to analyst estimates for American Airlines should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As 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 32.38% lower. American Airlines is currently sporting a Zacks Rank of #3 (Hold).
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 197, putting it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com 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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American Airlines (AAL) closed at $18.25 in the latest trading session, marking a +1.11% move from the prior day. American Airlines Group Inc. (AAL): Free Stock Analysis Report Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$2.73 per share and revenue of $42.88 billion.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report American Airlines (AAL) closed at $18.25 in the latest trading session, marking a +1.11% move from the prior day. Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$2.73 per share and revenue of $42.88 billion.
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American Airlines (AAL) closed at $18.25 in the latest trading session, marking a +1.11% move from the prior day. American Airlines Group Inc. (AAL): Free Stock Analysis Report Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$2.73 per share and revenue of $42.88 billion.
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American Airlines (AAL) closed at $18.25 in the latest trading session, marking a +1.11% move from the prior day. American Airlines Group Inc. (AAL): Free Stock Analysis Report Want the latest recommendations from Zacks Investment Research?
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3692.0
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2022-03-31 00:00:00 UTC
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Which Airline Stock is Set to Take Off?
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AAL
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https://www.nasdaq.com/articles/which-airline-stock-is-set-to-take-off
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nan
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nan
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A massive vaccination drive and pent-up demand for leisure travel helped several airlines recover to some extent last year. However, the spread of the Delta and Omicron variants and the spike in oil prices triggered by the Russia-Ukraine crisis caused turbulence and impacted the pace of the recovery.
Much to investors’ relief, major airlines announced favorable revenue updates in mid-March due to stronger-than-anticipated leisure travel demand. That said, airlines continue to face certain near-term headwinds, including staffing challenges, elevated fuel prices, and uncertainty around international and business travel.
With that in mind, we’ll use the TipRanks stock comparison tool for airline stocks to compare Delta Air Lines, United Airlines, and American Airlines and discuss the opinions of Wall Street pros.
Delta Air Lines (NYSE: DAL)
Delta, along with its alliance partners reaches over 800 destinations in more than 130 countries. Before the onset of the COVID-19 pandemic, the carrier offered over 5,000 daily departures and 15,000 affiliated departures.
Earlier this year, Delta claimed that it was the only major U.S. airline to deliver profitability in the second half of 2021. The company generated a net income of $280 million in 2021 compared to a net loss of $12.4 billion in 2020.
Delta provided an update in mid-March and now expects Q122 adjusted revenue at about 78% of 2019 levels, compared to the prior forecast of 72%-76%. Also, it anticipates Q122 capacity at about 83% of 2019 levels. The updated guidance was at the lower end of the 83%-85% capacity outlook initially issued.
The company stated that it expects adjusted fuel price to now come in at $2.80 per gallon, up from the previous guidance range of $2.35-$2.50 per gallon.
Despite higher fuel prices, Delta maintained its Q122 pre-tax loss guidance to be consistent with prior expectations. Back in January, Delta stated that it expects to incur pre-tax losses in the first two months of the year before returning to “solid profitability” in March.
Also, it expects to achieve positive free cash flow in Q122 on robust spring and summer travel demand. Overall, Delta anticipates “meaningful” profitability in 2022 and aims to generate improved earnings beyond pre-pandemic levels by 2024.
Following the update by Delta and its peers, Jefferies analyst Sheila Kahyaoglu noted that despite corporate travel remaining weak, airlines had “considerable confidence” about passing on higher fuel costs to customers.
Kahyaoglu stated, “DAL needs to recapture $15-20 each way on an average ticket value of $200, or just under 10%, which it feels fairly confident about capturing that value in the second quarter given the booking curve remains fairly short.”
Kahyaoglu reiterated a Buy rating on Delta stock with a price target of $38 (3.38% downside potential).
Overall, Delta scores a Strong Buy consensus rating based on 14 Buys versus three Holds. The average Delta Air Lines price target of $49.31 reflects 25.38% upside potential from current levels.
American Airlines (NASDAQ: AAL)
American Airlines, along with its regional partner, American Eagle, offers approximately 6,700 flights daily to 350 destinations in 50 countries.
Improved business conditions helped American Airlines bring down its net loss to about $2.0 billion in 2021, compared to a net loss of $8.9 billion caused by the COVID-19 outbreak in 2020.
In an update provided on March 15, American Airlines stated that it now expects Q122 revenue to decline by about 17% compared to Q119. The company previously predicted a 20%-22% fall in its Q122 top-line results.
However, unlike the improved revenue outlook, the company’s capacity forecast was not encouraging. American Airlines expects its Q122 capacity to be down 10%-12% compared to Q119 levels. The previous forecast indicated an 8%-10% fall in Q122 capacity.
Given the rising crude oil prices, American Airlines predicts fuel costs at an average of $2.73-$2.78 per gallon. The company believes that higher revenue could more than offset the increase in fuel and other expenses. It anticipates ending Q122 with available liquidity of more than $15 billion.
Prior to the outlook update, Seaport Global Securities analyst Daniel McKenzie downgraded American Airlines to a Hold from a Buy.
Explaining the downgrade, McKenzie commented, “Energy market chaos tied to the Russian/Ukraine war and a supply/demand dynamic poorly calibrated for the industry's new cost structure prompt us to capitulate on weaker balance sheet stories.”
The analyst withdrew his price target on American Airlines' stock on valuation concerns.
Most of the other analysts on the Street echo McKenzie’s sentiment, with a Hold consensus rating based on one Buy, 10 Holds, and three Sells. The average American Airlines price target of $17.97 indicates that the stock is fairly valued at current levels.
United Airlines Holdings (NASDAQ: UAL)
United Airlines boasts the most comprehensive route network among North American carriers. The easing of travel restrictions helped the carrier bring down its net loss to about $2.0 billion in 2021 from $7.1 billion in 2020.
At the J.P. Morgan Industrials Conference held on March 15, United Airlines provided a favorable update and stated that it was experiencing very strong leisure demand across most of its network, with system bookings for future travel improving almost 40 points since the first week of the year compared to 2019 levels.
Also, business bookings have improved over 30 points since the peak of the Omicron breakout compared to 2019 levels. The company’s cargo business continues to be strong, with cargo yields up over 100% versus 2019 levels.
United Airlines now expects Q122 operating revenue to be near the lower end of its prior outlook of a 20%-25% decline compared to Q119. The company continues to anticipate positive adjusted pre-tax income in Q222 despite higher fuel costs. It anticipates a fuel price per gallon of about $2.99 in Q1 and $3.50 in Q2.
However, United Airlines now expects Q122 capacity to be down about 19% compared to Q119, which reflects a deterioration from its previous forecast of a 16%-18% decline. The lower-than-anticipated capacity expectations reflect the impact of the Omicron variant earlier in the year and additional flight cancellations amid current geopolitical conditions.
Given the higher fuel prices and other macroeconomic challenges, the company reduced its total capacity for 2022 to be down in the high-single digits compared to 2019.
Following the company’s business update, BNP Paribas analyst James Hollins upgraded United Airlines stock to a Hold from a Sell. While Hollins acknowledges the "exceptional" pent-up demand, he feels that the Russia-Ukraine conflict is driving fuel costs significantly higher and may continue into 2023 and beyond.
Hollins assigned a $38 price target to United Airlines stock and stated that he now sees only limited downside for the stock from current levels.
Overall, the Street has a Hold consensus rating on United Airlines stock based on seven Buys, six Holds, and three Sells. The average United Airlines price target of $51.88 indicates 13.13% upside potential from current levels.
Conclusion
While leisure travel seems very robust, uncertainty regarding the recovery of corporate and international business to pre-pandemic levels continues to haunt airlines. Under the current circumstances, analysts are bullish on Delta Air Lines stock and remain sidelined on American Airlines and United Airlines.
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Read full Disclaimer & Disclosure.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (NASDAQ: AAL) American Airlines, along with its regional partner, American Eagle, offers approximately 6,700 flights daily to 350 destinations in 50 countries. Following the update by Delta and its peers, Jefferies analyst Sheila Kahyaoglu noted that despite corporate travel remaining weak, airlines had “considerable confidence” about passing on higher fuel costs to customers. Explaining the downgrade, McKenzie commented, “Energy market chaos tied to the Russian/Ukraine war and a supply/demand dynamic poorly calibrated for the industry's new cost structure prompt us to capitulate on weaker balance sheet stories.” The analyst withdrew his price target on American Airlines' stock on valuation concerns.
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American Airlines (NASDAQ: AAL) American Airlines, along with its regional partner, American Eagle, offers approximately 6,700 flights daily to 350 destinations in 50 countries. With that in mind, we’ll use the TipRanks stock comparison tool for airline stocks to compare Delta Air Lines, United Airlines, and American Airlines and discuss the opinions of Wall Street pros. The average Delta Air Lines price target of $49.31 reflects 25.38% upside potential from current levels.
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American Airlines (NASDAQ: AAL) American Airlines, along with its regional partner, American Eagle, offers approximately 6,700 flights daily to 350 destinations in 50 countries. With that in mind, we’ll use the TipRanks stock comparison tool for airline stocks to compare Delta Air Lines, United Airlines, and American Airlines and discuss the opinions of Wall Street pros. At the J.P. Morgan Industrials Conference held on March 15, United Airlines provided a favorable update and stated that it was experiencing very strong leisure demand across most of its network, with system bookings for future travel improving almost 40 points since the first week of the year compared to 2019 levels.
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American Airlines (NASDAQ: AAL) American Airlines, along with its regional partner, American Eagle, offers approximately 6,700 flights daily to 350 destinations in 50 countries. With that in mind, we’ll use the TipRanks stock comparison tool for airline stocks to compare Delta Air Lines, United Airlines, and American Airlines and discuss the opinions of Wall Street pros. American Airlines expects its Q122 capacity to be down 10%-12% compared to Q119 levels.
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3693.0
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2022-03-30 00:00:00 UTC
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Australia's Qantas aims to cut carbon emissions 25% by 2030
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AAL
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https://www.nasdaq.com/articles/australias-qantas-aims-to-cut-carbon-emissions-25-by-2030
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nan
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nan
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By Jamie Freed
SYDNEY, March 31 (Reuters) - Qantas Airways Ltd QAN.AX said on Thursday it planned to reduce carbon emissions by about 25% by 2030, in part by boosting sustainable aviation fuel to 10% of its fuel mix and increasing the fuel efficiency of flights by 1.5% a year.
The airline in 2019 had been one of the first carriers in the world to pledge to slash its carbon emissions to net zero by 2050, ahead of an industry-wide commitment agreed last year.
"Hydrogen or electric powered aircraft are several decades away, particularly for the length of most flights, so our plan is focused on the technology that is within reach today," Qantas Chief Executive Officer Alan Joyce said.
The target of 10% sustainable aviation fuel by 2030 is in line with a goal set by the oneworld airline alliance in October 2021. Qantas is a member of oneworld along with carriers like British Airways ICAG.L, American Airlines Group AAL.O and Cathay Pacific Airways 0293.HK.
Qantas' broader 2030 emissions target will place it in closer alignment with corporate customers that are looking for drastic cuts in emissions from business travel well before 2050.
Several companies, such as HSBC HSBA.L, Zurich Insurance ZURN.S, Bain & Company and S&P Global SPGI.N, have already announced plans to quickly cut business travel emissions by as much as 70%.
Qantas has begun purchasing sustainable aviation fuel (SAF) for its flights from London to help reduce carbon emissions on those journeys by around 10% and from 2025, it will use biofuels on flights from Los Angeles and San Francisco.
The airline industry's target of net zero emissions by 2050 relies on boosting use of sustainable aviation fuel from less than 0.1% today to 65% by 2050 as well as new engine technologies.
Qantas is nearing a major order for Airbus' AIR.PA latest generation narrowbody planes that would replace its fleet of older Boeing BA.N 737-800s and 717s, allowing for fuel savings of 15-20%. A firm order is expected by mid-year, Qantas said on Thursday.
(Reporting by Jamie Freed; Editing by Leslie Adler, Bernard Orr)
((Jamie.Freed@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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Qantas is a member of oneworld along with carriers like British Airways ICAG.L, American Airlines Group AAL.O and Cathay Pacific Airways 0293.HK. "Hydrogen or electric powered aircraft are several decades away, particularly for the length of most flights, so our plan is focused on the technology that is within reach today," Qantas Chief Executive Officer Alan Joyce said. The airline industry's target of net zero emissions by 2050 relies on boosting use of sustainable aviation fuel from less than 0.1% today to 65% by 2050 as well as new engine technologies.
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Qantas is a member of oneworld along with carriers like British Airways ICAG.L, American Airlines Group AAL.O and Cathay Pacific Airways 0293.HK. By Jamie Freed SYDNEY, March 31 (Reuters) - Qantas Airways Ltd QAN.AX said on Thursday it planned to reduce carbon emissions by about 25% by 2030, in part by boosting sustainable aviation fuel to 10% of its fuel mix and increasing the fuel efficiency of flights by 1.5% a year. Several companies, such as HSBC HSBA.L, Zurich Insurance ZURN.S, Bain & Company and S&P Global SPGI.N, have already announced plans to quickly cut business travel emissions by as much as 70%.
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Qantas is a member of oneworld along with carriers like British Airways ICAG.L, American Airlines Group AAL.O and Cathay Pacific Airways 0293.HK. By Jamie Freed SYDNEY, March 31 (Reuters) - Qantas Airways Ltd QAN.AX said on Thursday it planned to reduce carbon emissions by about 25% by 2030, in part by boosting sustainable aviation fuel to 10% of its fuel mix and increasing the fuel efficiency of flights by 1.5% a year. Qantas has begun purchasing sustainable aviation fuel (SAF) for its flights from London to help reduce carbon emissions on those journeys by around 10% and from 2025, it will use biofuels on flights from Los Angeles and San Francisco.
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Qantas is a member of oneworld along with carriers like British Airways ICAG.L, American Airlines Group AAL.O and Cathay Pacific Airways 0293.HK. By Jamie Freed SYDNEY, March 31 (Reuters) - Qantas Airways Ltd QAN.AX said on Thursday it planned to reduce carbon emissions by about 25% by 2030, in part by boosting sustainable aviation fuel to 10% of its fuel mix and increasing the fuel efficiency of flights by 1.5% a year. Qantas' broader 2030 emissions target will place it in closer alignment with corporate customers that are looking for drastic cuts in emissions from business travel well before 2050.
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3694.0
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2022-03-30 00:00:00 UTC
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Why American Airlines Stock Could Decline from Here
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-stock-could-decline-from-here
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nan
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nan
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It's no coincidence that U.S.-listed aviation stocks saw a broad downtrend just a few weeks ago amid rising oil prices. One of the losers was American Airlines (AAL), a Texas-based provider of passenger and cargo air transport in the U.S. and overseas.
Although its stock has rebounded recently, I believe it will decline in the coming weeks due to the factors mentioned below. Thus, I am bearish on this stock.
Higher Fossil Fuels Prices Weigh on Airline Stocks
Certainly, it's no easy feat for airlines to continue offering the service at higher rates without seeing a drop in demand at the same time. These companies use hedging tools to control energy costs. However, when fossil fuel prices, which account for a significant portion of their operating expenses, rise too quickly and for too long, as is the case now, the strategy may be less effective.
Oil Prices May Rebound
Over 14 million Shanghai residents have done molecular swab and antigen testing to contain the COVID-19 epidemic. This has led to somewhat lower oil prices of late as the market joins fears of possible restrictions that could hurt oil demand.
However, these are only short-term effects, while the factors that led to the commodity hitting $100/barrel and surging this year are much stronger and longer-lived. These include the rapid increase in fossil fuel demand after the strong recovery from the COVID-19 crisis and the supply disruptions caused by the Russian invasion of Ukraine.
The subsequent increase in energy costs (the key component of the current high inflation) is not a real problem for companies as long as they pass the costs on to the end-user.
Factors in Bearish Sentiment
American Airlines will continue to suffer from rising fuel prices and lower consumer confidence as a possible consequence of tighter monetary policy from the Federal Reserve.
The U.S. Federal Reserve plans to raise interest rates six times this year and four times in 2023 to stem the rapid rise in annual inflation. So, the end of loose monetary policy to support economic growth could potentially hurt employment enough to force households to cut spending on various goods and services.
Should that happen, the backdrop will make it difficult for American Airlines and other operators to bring passenger traffic and cargo capacity back to pre-pandemic levels.
My expectations are supported by Statista estimates, which suggest that a significantly lower number of about 3.43 billion passengers will use global airlines this year, compared to the pre-pandemic level of ~4.7 billion passengers.
As the Asia-Pacific region typically accounts for the majority of passenger air traffic (one-third of the world total) and the busiest air routes, the expected development of the U.S. market compared to the global industry could be even less important than one might think.
In addition, it should be noted that these statistics are from October 2021, before the Federal Reserve announced its plan to ditch accommodative monetary policy in favor of tighter policies.
Global air freight already appears to be impacted by macroeconomic conditions and subsequent policy actions. Weekly air freight rates actually fell from an average of $4.3 per kilogram in 2021 to a lower average of $4.2 per kilogram in February-March 2022, Statista estimates.
These forecasts also won't spare American Airlines' demand for passenger and cargo services, with analysts forecasting -$2.51 EPS for 2022.
American Airlines' Q1-2022 Outlook
American Airlines' near-term outlook is not too bright, as the company forecasts 10% lower capacity and more than 20% lower revenues for the first quarter of 2022 compared to last year's quarter.
In light of current macroeconomic conditions and expected trends in airline passenger and cargo services, American Airlines' share price could continue to decline for the foreseeable future.
Wall Street's Take
In the past three months, 13 Wall Street analysts have issued a 12-month price target for AAL. The company has a Hold consensus rating based on one Buy, nine Holds, and three Sell ratings.
The average American Airlines price target is $17.94, implying 0.9% downside potential.
Conclusion
The current macroeconomic conditions of high inflation, high fossil fuel prices, and geopolitical tensions are not beneficial for the airline industry, nor is anti-inflationary monetary policy, as it poses a significant risk of economic recession.
Expected trends in passenger and cargo services are also not helpful for a stock price recovery. Most likely, shares will remain in a bearish mood for the time being, which could stretch for several weeks.
Download the TipRanks mobile app now
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Read full Disclaimer & Disclosure
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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One of the losers was American Airlines (AAL), a Texas-based provider of passenger and cargo air transport in the U.S. and overseas. Wall Street's Take In the past three months, 13 Wall Street analysts have issued a 12-month price target for AAL. These include the rapid increase in fossil fuel demand after the strong recovery from the COVID-19 crisis and the supply disruptions caused by the Russian invasion of Ukraine.
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One of the losers was American Airlines (AAL), a Texas-based provider of passenger and cargo air transport in the U.S. and overseas. Wall Street's Take In the past three months, 13 Wall Street analysts have issued a 12-month price target for AAL. My expectations are supported by Statista estimates, which suggest that a significantly lower number of about 3.43 billion passengers will use global airlines this year, compared to the pre-pandemic level of ~4.7 billion passengers.
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One of the losers was American Airlines (AAL), a Texas-based provider of passenger and cargo air transport in the U.S. and overseas. Wall Street's Take In the past three months, 13 Wall Street analysts have issued a 12-month price target for AAL. Higher Fossil Fuels Prices Weigh on Airline Stocks Certainly, it's no easy feat for airlines to continue offering the service at higher rates without seeing a drop in demand at the same time.
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One of the losers was American Airlines (AAL), a Texas-based provider of passenger and cargo air transport in the U.S. and overseas. Wall Street's Take In the past three months, 13 Wall Street analysts have issued a 12-month price target for AAL. Thus, I am bearish on this stock.
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3695.0
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2022-03-30 00:00:00 UTC
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Stock Market News for Mar 30, 2022
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AAL
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https://www.nasdaq.com/articles/stock-market-news-for-mar-30-2022
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nan
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nan
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Wall Street closed sharply higher on Tuesday following positive developments related to the geopolitical conflict between Russia and Ukraine. Lower crude oil prices have also strengthened market participant’s confidence. All three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 1% or 338.30 points to close at 35,294.19. Notably, 16 component of the 30-stock index ended in green while 25 finished in positive zone and 5 ended in red. The tech-heavy Nasdaq Composite finished at 14,619.64, advancing 1.8% or 264.73 points due to the strong performance of large-cap technology stocks.
Meanwhile, the S&P 500 rose 1.2% to end at 4,631.60. Ten out of 11 broad sectors of the benchmark index closed in positive zone while one in red. The Consumer Discretionary Select Sector SPDR (XLY), the Real Estate Select Sector SPDR (XLRE), the Communication Services Select Sector SPDR (XLC) and the Technology Select Sector SPDR (XLK) rallied 1.7%, 2.9%, 1.7% and 2.1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 3.7% to 18.90. A total of 13.22 billion shares were traded Tuesday, lower than the last 20-session average of 14 billion. Advancers outnumbered advancers on the NYSE by a 4.20-to-1 ratio. On Nasdaq, a 2.97-to-1 ratio favored advancing issues.
Russia-Ukraine Peace Talk Continues
On Mar 29, the first negotiations meeting in two weeks between Russia and Ukraine held in Turkey. This was the sixth round of meeting between the two warring countries after Russian troops invaded Ukraine on Feb 24. So far, this meeting was the most fruitful one.
In the meeting\, Russia said that it will significantly reduce its military operations around the Ukraine’s capital of Kyiv and the norther city of Chernihiv. Instead, Russian troops will concentrate more on the eastern part of Ukraine. On the other hand, Ukraine has decided to follow the path of neutrality and will not join the U.S.-led alliance of NATO.
Consequently, the price of the U.S. benchmark – West Texas Intermediate – crude future for May delivery dropped 1.6% to settle at $104.24 per barrel, marking the lowest closing for a front-month WTI contract since Mar 17.
As a result, shares of airlines stocks like United Airlines Holdings Inc. UAL, Delta Air Lines Inc. DAL and American Airlines Group Inc. AAL appreciated 4.1%, 3.1% and 5%, respectively. All three stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Economic Data
According to the S&P CoreLogic Case-Shiller Index, both the 10-city and 20-city composite index rose 1.4% in January. Year over year, nationally home prices jumped 19.2% in January compared with 18.9% in December. The 10-city composite jumped 17.5% annually in January compared with 17.1% in December. The 20-city composite climbed 19.1% annually in January compared with 18.6% in December.
The Conference Board reported that consumer confidence index came in at 107.2% in March, marking the first rise of the index in 2022. However, the consensus estimate was 107.5%. February’s data was revised downward to 105.7% from 110.5% reported earlier. The present situation sub-index rose from 152.9% in February to 153% in March, marking its highest since Jul 2021. The expectation sub-index dropped to 76.6% in March from 80.8% in February.
The Job Openings and Labor Turnover Survey of the Department of Labor reported that around 11.27 million jobs were open in February. Total unemployment level contracted to 6.27 million in February. Consequently, 1.8 jobs were available for every unemployed person in February. Moreover, people who quit jobs increased 94,000 to 4.35 million workers in February compared with January.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As a result, shares of airlines stocks like United Airlines Holdings Inc. UAL, Delta Air Lines Inc. DAL and American Airlines Group Inc. AAL appreciated 4.1%, 3.1% and 5%, respectively. American Airlines Group Inc. (AAL): Free Stock Analysis Report Wall Street closed sharply higher on Tuesday following positive developments related to the geopolitical conflict between Russia and Ukraine.
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As a result, shares of airlines stocks like United Airlines Holdings Inc. UAL, Delta Air Lines Inc. DAL and American Airlines Group Inc. AAL appreciated 4.1%, 3.1% and 5%, respectively. American Airlines Group Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
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As a result, shares of airlines stocks like United Airlines Holdings Inc. UAL, Delta Air Lines Inc. DAL and American Airlines Group Inc. AAL appreciated 4.1%, 3.1% and 5%, respectively. American Airlines Group Inc. (AAL): Free Stock Analysis Report The Conference Board reported that consumer confidence index came in at 107.2% in March, marking the first rise of the index in 2022.
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As a result, shares of airlines stocks like United Airlines Holdings Inc. UAL, Delta Air Lines Inc. DAL and American Airlines Group Inc. AAL appreciated 4.1%, 3.1% and 5%, respectively. American Airlines Group Inc. (AAL): Free Stock Analysis Report Ten out of 11 broad sectors of the benchmark index closed in positive zone while one in red.
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3696.0
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2022-03-28 00:00:00 UTC
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JetBlue to add 5,000 jobs in New York
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AAL
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https://www.nasdaq.com/articles/jetblue-to-add-5000-jobs-in-new-york
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nan
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nan
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Changes sourcing to company
March 28 (Reuters) - JetBlue Airways Corp JBLU.Osaid on Monday it would add 5,000 jobs in all sections of its operations in New York this year, as U.S. carriers ramp up their hiring plans amid a rebound in travel.
In January, American Airlines Group Inc AAL.O said it planned to hire another 18,000 employees this year after adding 16,000 new team members last year.]
Delta Air Lines Inc DAL.N also early this year said it planned to hire 3,000 to 5,000 people in 2022.
JetBlue said it would hire for roles in airport operations, ground operations, technical operations, inflight, information technology and other support center roles.
Earlier in the day, CBS News first reported JetBlue's hiring plan.
The company's shares were down about 1% at $14.41.
In December, top executives of major U.S. airlines including JetBlue said that they would tell a Senate committee about ramping up hiring amid rising concerns over the Omicron variant of COVID-19.
(Reporting by Nathan Gomes in Bengaluru; Editing by Maju Samuel)
((Nathan.Gomes@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In January, American Airlines Group Inc AAL.O said it planned to hire another 18,000 employees this year after adding 16,000 new team members last year.] Changes sourcing to company March 28 (Reuters) - JetBlue Airways Corp JBLU.Osaid on Monday it would add 5,000 jobs in all sections of its operations in New York this year, as U.S. carriers ramp up their hiring plans amid a rebound in travel. Delta Air Lines Inc DAL.N also early this year said it planned to hire 3,000 to 5,000 people in 2022.
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In January, American Airlines Group Inc AAL.O said it planned to hire another 18,000 employees this year after adding 16,000 new team members last year.] Changes sourcing to company March 28 (Reuters) - JetBlue Airways Corp JBLU.Osaid on Monday it would add 5,000 jobs in all sections of its operations in New York this year, as U.S. carriers ramp up their hiring plans amid a rebound in travel. JetBlue said it would hire for roles in airport operations, ground operations, technical operations, inflight, information technology and other support center roles.
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In January, American Airlines Group Inc AAL.O said it planned to hire another 18,000 employees this year after adding 16,000 new team members last year.] Changes sourcing to company March 28 (Reuters) - JetBlue Airways Corp JBLU.Osaid on Monday it would add 5,000 jobs in all sections of its operations in New York this year, as U.S. carriers ramp up their hiring plans amid a rebound in travel. JetBlue said it would hire for roles in airport operations, ground operations, technical operations, inflight, information technology and other support center roles.
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In January, American Airlines Group Inc AAL.O said it planned to hire another 18,000 employees this year after adding 16,000 new team members last year.] Changes sourcing to company March 28 (Reuters) - JetBlue Airways Corp JBLU.Osaid on Monday it would add 5,000 jobs in all sections of its operations in New York this year, as U.S. carriers ramp up their hiring plans amid a rebound in travel. Delta Air Lines Inc DAL.N also early this year said it planned to hire 3,000 to 5,000 people in 2022.
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3697.0
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2022-03-28 00:00:00 UTC
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3 Great Airline Stocks to Buy Flying Into April 2022
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AAL
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https://www.nasdaq.com/articles/3-great-airline-stocks-to-buy-flying-into-april-2022
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The global pandemic has been harder on the airline sector than most industries. Border closures and travel restrictions left airplanes stranded on tarmacs around the world in 2020 and throughout much of 2021. And even as restrictions have been eased, travel demand has been slow to recover.
The International Air Transport Association (IATA) trade group estimates that the Covid-19 pandemic cost the global aviation industry more than $200 billion in losses between 2020 and 2022.
The good news is that a recovery appears to now be underway. IATA also reports that annual passenger traffic recovered to 42% of pre-pandemic 2019 levels last year and continues to improve this year as restrictions related to the Omicron variant of Covid-19 are eased. In other “good news” comes a report that the TSA Instagram account is considered “the Funniest Travel Account” on the social media platform.
While it’s still early in the year, we thought it a good time to look at three of the best airline stocks to buy flying into April 2022. These stocks are also among the top four holdings in the U.S. Global Jets ETF (NYSEARCA:JETS). They make up almost 30% of the assets of the exchange-traded fund’s 52-stock portfolio.
American Airlines (NASDAQ:AAL)
Delta Air Lines (NYSE:DAL)
Southwest Airlines (NYSE:LUV)
Airline Stocks to Buy: American Airlines (AAL)
Source: GagliardiPhotography / Shutterstock.com
Investors should focus on best of breed stocks, and American Airlines comes with a top pedigree. The Fort Worth, Texas-based company operates the biggest airline not just in the U.S. but the entire world, flying to 350 destinations in 50 countries, and employing more than 130,000 people globally.
To be sure, it’s been a difficult two years for American Airlines. The company burned through more than $6 billion of cash in 2020 during the trough of the pandemic, and has accumulated nearly $25 billion in long-term debt over the past 24 months. These metrics weigh on AAL stock, which is down 5.3% year-to-date at $17.01 a share and remains 44% below its pre-pandemic share price of about $30.
The good news for investors is that American Airlines is recovering from the ravages of Covid-19 and its share price remains comparatively cheap. Many analysts expect AAL stock to takeoff later this year given the expected recovery in both domestic U.S. air travel and to international destinations, where American Airlines has more exposure than any other U.S.-based carrier.
Wolfe Research recently initiated coverage of the entire U.S. airline industry with an “overweight” rating, and singled out American Airlines as a carrier that should lead the pack during the recovery in air travel.
Delta Air Lines (DAL)
Source: Markus Mainka / Shutterstock.com
Delta Air Lines was the first carrier to report a profit coming out of the pandemic. The Atlanta, Georgia-based company reported a full year 2021 profit of $280 million, its first in two years.
And, despite the fact that the emergence of the omicron variant of Covid-19 will push the carrier to a first quarter loss, Delta is still guiding for a full year profit in 2022. And the company continues on a hiring spree with plans to bring onboard 3,000 to 5,000 new employees this year on top of 9,000 hires last year. These hires include pilots, flight attendants and baggage handlers, among others.
7 Dividend Stocks That Can Withstand Inflation
Delta Air Lines’ outperformance and bullish guidance hasn’t been able to lift its share price. Year-to-date, DAL stock has declined 3% to now trades at $37.91 a share. That’s on pace with the decline in the S&P 500 index amid ongoing market volatility.
But despite its recent slump, Delta stock can likely soar higher in coming months. The share price remains about 37% lower than the $62 a share it was trading at pre-pandemic. The company has said that while leisure air travel came roaring back in the second half of 2021, business travel has yet to recover, providing the company with further room to grow and expand in coming months.
Airline Stocks to Buy: Southwest Airlines (LUV)
Source: Markus Mainka / Shutterstock.com
Southwest, the largest discount carrier in the U.S., is one of the few airlines whose stock has managed to buck the market downturn this year. So far in 2022, LUV stock eked out a 2.52% gain to $44.38 a share.
However, the stock remains down 16% over the past six months and is 26% lower then where it was a year ago. The JETS ETF share price shows a 14.8% decline over the past six months and is 22.4% lower then where it was a year ago.
Southwest Airlines has had a difficult time getting back on track coming out of the pandemic. In the lead up to the busy Thanksgiving through New Year’s holiday period, the Dallas, Texas-based airline was forced to cancel hundreds of flights due to pilot shortages and scheduling problems.
The carrier’s finances also continued to experience turbulence in 2021, with the airline reporting that it lost $1.3 billon for the year. However, Southwest Airlines looks to now be putting the turmoil of the past year behind it.
For the most recent fourth quarter, Southwest reported that it earned $5.05 billion of revenue and a quarterly profit of $0.14 per share, which was double the profit of $0.07 a share that analysts had forecast.
With the company getting its staffing and scheduling sorted, it is expected that Southwest will put the impact of the pandemic behind it for good and fly sunnier skies throughout this year.
On the date of publication, Joel Baglole held a long position in LUV stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
The post 3 Great Airline Stocks to Buy Flying Into April 2022 appeared first on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (NASDAQ:AAL) Delta Air Lines (NYSE:DAL) Southwest Airlines (NYSE:LUV) Airline Stocks to Buy: American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com Investors should focus on best of breed stocks, and American Airlines comes with a top pedigree. These metrics weigh on AAL stock, which is down 5.3% year-to-date at $17.01 a share and remains 44% below its pre-pandemic share price of about $30. Many analysts expect AAL stock to takeoff later this year given the expected recovery in both domestic U.S. air travel and to international destinations, where American Airlines has more exposure than any other U.S.-based carrier.
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American Airlines (NASDAQ:AAL) Delta Air Lines (NYSE:DAL) Southwest Airlines (NYSE:LUV) Airline Stocks to Buy: American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com Investors should focus on best of breed stocks, and American Airlines comes with a top pedigree. These metrics weigh on AAL stock, which is down 5.3% year-to-date at $17.01 a share and remains 44% below its pre-pandemic share price of about $30. Many analysts expect AAL stock to takeoff later this year given the expected recovery in both domestic U.S. air travel and to international destinations, where American Airlines has more exposure than any other U.S.-based carrier.
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American Airlines (NASDAQ:AAL) Delta Air Lines (NYSE:DAL) Southwest Airlines (NYSE:LUV) Airline Stocks to Buy: American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com Investors should focus on best of breed stocks, and American Airlines comes with a top pedigree. Many analysts expect AAL stock to takeoff later this year given the expected recovery in both domestic U.S. air travel and to international destinations, where American Airlines has more exposure than any other U.S.-based carrier. These metrics weigh on AAL stock, which is down 5.3% year-to-date at $17.01 a share and remains 44% below its pre-pandemic share price of about $30.
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American Airlines (NASDAQ:AAL) Delta Air Lines (NYSE:DAL) Southwest Airlines (NYSE:LUV) Airline Stocks to Buy: American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com Investors should focus on best of breed stocks, and American Airlines comes with a top pedigree. These metrics weigh on AAL stock, which is down 5.3% year-to-date at $17.01 a share and remains 44% below its pre-pandemic share price of about $30. Many analysts expect AAL stock to takeoff later this year given the expected recovery in both domestic U.S. air travel and to international destinations, where American Airlines has more exposure than any other U.S.-based carrier.
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3698.0
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2022-03-26 00:00:00 UTC
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U.S. FAA safety official Billy Nolen named acting administrator
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AAL
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https://www.nasdaq.com/articles/u.s.-faa-safety-official-billy-nolen-named-acting-administrator
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nan
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By David Shepardson
WASHINGTON, March 26 (Reuters) - The Biden administration on Saturday named the Federal Aviation Administration's (FAA) safety chief as the acting leader of the agency effective Friday.
Billy Nolen, who in December was named the FAA's associate administrator for aviation safety, had previously been vice president for safety, security and quality for WestJet Airlines in Canada.
Nolen, who started his career as an American Airlines AAL.O pilot, will replace FAA administrator Steve Dickson, who is stepping down on March 31, until the White House nominates a permanent successor.
"Billy Nolen has extensive expertise in aviation and a deep understanding of the vital role the FAA plays in ensuring the safety of the traveling public,” said U.S Transportation Secretary Pete Buttigieg.
Nolen leads a team of more than 7,600 FAA employees. The FAA’s safety efforts and oversight of Boeing BA.N have come under fire after two fatal 737 MAX crashes in a five-month period killed 346 people and led to the plane's 20-month grounding. Congress in December 2020 passed legislation to reform how the FAA certifies new airplanes and delegates some duties to manufacturers like Boeing.
Dickson, 64, is resigning about halfway through his five-year term. The Biden administration "is conducting a national search for a nominee to become the permanent FAA administrator," the FAA said Saturday.
Dickson headed the FAA as it oversaw a comprehensive review of the then-grounded Boeing 737 MAX. He took a hard line, warning in late 2019 that Boeing was pursuing "a return-to-service schedule that is not realistic."
Earlier this week, the FAA warned Boeing it may not gain certification of a lengthened version of the 737 MAX ahead of a key safety deadline set by Congress and also sought updates on progress for both the 737 MAX 10 and 777-9, Reuters reported Friday.
The FAA is still scrutinizing a number of issues involving Boeing and last month said it would not allow Boeing to self-certify 787 Dreamliners.
Nolen will face the headache of the 5G wireless deployment using C-Band spectrum, an issue that saw major international airlines scramble to cancel some U.S flights amid warnings the network could interfere with sensitive aviation electronics. Nolen has been in ongoing discussions with telecom and aviation industry officials.
The FAA also said Saturday that Deputy FAA Administrator Bradley Mims "will also take on an expanded role during this interim period, focusing on the FAA’s workforce and the nation’s airports."
(Reporting by David Shepardson; editing by Diane Craft and Aurora Ellis)
((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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Nolen, who started his career as an American Airlines AAL.O pilot, will replace FAA administrator Steve Dickson, who is stepping down on March 31, until the White House nominates a permanent successor. "Billy Nolen has extensive expertise in aviation and a deep understanding of the vital role the FAA plays in ensuring the safety of the traveling public,” said U.S Transportation Secretary Pete Buttigieg. Nolen will face the headache of the 5G wireless deployment using C-Band spectrum, an issue that saw major international airlines scramble to cancel some U.S flights amid warnings the network could interfere with sensitive aviation electronics.
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Nolen, who started his career as an American Airlines AAL.O pilot, will replace FAA administrator Steve Dickson, who is stepping down on March 31, until the White House nominates a permanent successor. By David Shepardson WASHINGTON, March 26 (Reuters) - The Biden administration on Saturday named the Federal Aviation Administration's (FAA) safety chief as the acting leader of the agency effective Friday. Billy Nolen, who in December was named the FAA's associate administrator for aviation safety, had previously been vice president for safety, security and quality for WestJet Airlines in Canada.
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Nolen, who started his career as an American Airlines AAL.O pilot, will replace FAA administrator Steve Dickson, who is stepping down on March 31, until the White House nominates a permanent successor. By David Shepardson WASHINGTON, March 26 (Reuters) - The Biden administration on Saturday named the Federal Aviation Administration's (FAA) safety chief as the acting leader of the agency effective Friday. Billy Nolen, who in December was named the FAA's associate administrator for aviation safety, had previously been vice president for safety, security and quality for WestJet Airlines in Canada.
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Nolen, who started his career as an American Airlines AAL.O pilot, will replace FAA administrator Steve Dickson, who is stepping down on March 31, until the White House nominates a permanent successor. Billy Nolen, who in December was named the FAA's associate administrator for aviation safety, had previously been vice president for safety, security and quality for WestJet Airlines in Canada. Nolen leads a team of more than 7,600 FAA employees.
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3699.0
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2022-03-25 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-0
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In the latest trading session, American Airlines (AAL) closed at $17.01, marking a +1.73% move from the previous day. This move outpaced the S&P 500's daily gain of 0.51%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 0.1%.
Coming into today, shares of the world's largest airline had lost 1.42% in the past month. In that same time, the Transportation sector gained 6.28%, while the S&P 500 gained 5.51%.
Wall Street will be looking for positivity from American Airlines as it approaches its next earnings report date. In that report, analysts expect American Airlines to post earnings of -$2.45 per share. This would mark year-over-year growth of 43.29%. Our most recent consensus estimate is calling for quarterly revenue of $8.52 billion, up 112.64% from the year-ago period.
AAL's full-year Zacks Consensus Estimates are calling for earnings of -$2.50 per share and revenue of $42.63 billion. These results would represent year-over-year changes of +70.17% and +42.65%, respectively.
Investors should also note any recent changes to analyst estimates for American Airlines. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Within the past 30 days, our consensus EPS projection has moved 21.28% lower. American Airlines is currently a Zacks Rank #3 (Hold).
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 224, putting it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the latest trading session, American Airlines (AAL) closed at $17.01, marking a +1.73% move from the previous day. AAL's full-year Zacks Consensus Estimates are calling for earnings of -$2.50 per share and revenue of $42.63 billion. American Airlines Group Inc. (AAL): Free Stock Analysis Report
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AAL's full-year Zacks Consensus Estimates are calling for earnings of -$2.50 per share and revenue of $42.63 billion. American Airlines Group Inc. (AAL): Free Stock Analysis Report In the latest trading session, American Airlines (AAL) closed at $17.01, marking a +1.73% move from the previous day.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report In the latest trading session, American Airlines (AAL) closed at $17.01, marking a +1.73% move from the previous day. AAL's full-year Zacks Consensus Estimates are calling for earnings of -$2.50 per share and revenue of $42.63 billion.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report In the latest trading session, American Airlines (AAL) closed at $17.01, marking a +1.73% move from the previous day. AAL's full-year Zacks Consensus Estimates are calling for earnings of -$2.50 per share and revenue of $42.63 billion.
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