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6200.0
2020-03-09 00:00:00 UTC
7 Services Stocks to Buy on Coronavirus Weakness
AAL
https://www.nasdaq.com/articles/7-services-stocks-to-buy-on-coronavirus-weakness-2020-03-09
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The S&P 500 on March 2 after news suggested that central banks around the globe would inject some stimulus into the economy via lower interest rates. The gain comes on the heels of the final week of February, which was an unmitigated disaster for stocks; the S&P 500 index lost in market capitalization on fears the coronavirus was turning into a global pandemic.   On March 3, Federal Reserve chair Jerome Powell announced an emergency cut in interest rates. The head of the federal reserve believes the U.S. economy will “return to solid growth and a solid labor market” once the coronavirus outbreak ends and life gets back to normal. Thanks to the March 2 recovery, the U.S. markets over the last five trading days are only down 4.5% (including dividends) through March 2. However, several services stocks have still lost more than 15% of their value over the past week as investors bet Americans will stay away from public spaces. Here are seven stocks to buy that I see recovering all of these losses in the weeks and months ahead. Planet Fitness (PLNT) Source: Ken Wolter / Shutterstock.com 1-Week Return: (through March 9) Year to Date: -13.83% I don’t think you could use enough Lysol wipes to get me to go near a sweaty gym at this point, which is why Planet Fitness (NYSE:) has lost more than 15% of its stock over the past week. It’s fair to say, however, that PLNT was due for a comedown after delivering a 3-year annualized total return of 47.9%. Trading at 8.3 times sales and 34.7 times its forward earnings, the stock is still not very cheap considering the bloodletting it has experienced over the past week. Expectations were very high for Planet Fitness stock, so when it reported fourth-quarter results Feb. 25 that included revenue of ($1.9 million higher than the consensus estimate) and earnings of 44 cents (three cents above expectations), the coronavirus was an easy way to take PLNT stock out to the woodshed. The reality is that business at its locations was still robust before the coronavirus reared its ugly head. System-wide same-store sales grew 8.6% in the final quarter of fiscal 2019. For the entire year, same-store sales rose an impressive 8.8%. In 2020, it expects same-store sales growth of approximately 8%. While fitness clubs such as Planet Fitness are likely to experience reduced visits as the coronavirus outbreak continues to spread, viruses such as COVID-19 will continue to occur in the years ahead. All the company can do is continue to educate its members, potential members, employees, and business partners while doing everything possible to keep its facilities as sterile as possible. If there’s a stock that was due for a correction, Planet Fitness was it. It might get even cheaper before it starts the next leg up. Under $60, it’s a steal. Churchill Downs (CHDN) Source: Thomas Kelley / Shutterstock.com 1-Week Return: -6.2% Year to Date: -14.1% Churchill Downs (NASDAQ:) is a stock I’ve long promoted as a good buy. The last time I recommended it to InvestorPlace readers was in April 2018. At the time, I mentioned the diversity of its business model, which includes the iconic Kentucky Derby, the horse race of horse races held on the first Saturday each May. After all, who can resist the Run for the Roses? I’ve never owned CHDN stock because I’m not keen on the number of horses that are put down each year during races. However, there’s no denying its success. “The business is certainly a lot more diversified than most investors realize, but what I really like is the stock’s performance. It hasn’t had since 2009 and is up 9% year to date,” I wrote April 24, 2018. CHDN finished up 2.5% in 2018, which isn’t half bad considering that year. In 2019, Churchill Downs gained 69.6%, its 10th consecutive year with positive returns. Down 14.1% year to date, I smell a comeback in the backstretch. American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com 1-Week Return: -16.17% Year to Date: -43.9% Flying, much like taking the subway to work, is a giant moving petri dish of germs and unhealthiness. It’s not surprising that airline stocks as a group have lost 14.8% in the past week, with American Airlines (NASDAQ:) leading the pack. InvestorPlace Market Strategist William Roth recently recommended investors sell three particular airline stocks now before it’s too late. One of those stocks is American Air.   “American Airlines shares are continuing their hard and fast drop, since peaking in the middle of February. Shares have lost nearly 40% of their value over that time, falling below their 2013 IPO lows,” Roth stated March 2. Usually, I’d recommend a safer play like Southwest Airlines (NYSE:), which I suggested was cheaper than most investors thought back in April 2018. It has lost about 14% of its value since then, but it’s still held up much better than AAL. However, AAL has been beaten down so dramatically, the contrarian in me believes it’s got to bounce off the mat once the coronavirus threat is contained or eliminated. I see from the CNBC Berkshire Hathaway (NYSE:, NYSE:BRK.B) portfolio tracker that Warren Buffett still good for a 10% ownership stake in the company. Despite all the doom and gloom in the airline sector in the past year, American Airlines still managed to earn excluding net special items, in 2019, 8% higher than a year earlier. Cheaper than it has been since its 2013 merger with US Airways, American Airlines is the risk-takers dream stock. Six Flags (SIX) Source: Martina Badini/Shutterstock.com 1-Week Return: -14.64%  Year to Date: -52.2% There is no question you aren’t a happy camper if you’ve owned Six Flags Entertainment (NYSE:) the past five years. During this period, it’s delivered an annualized total return of -5.5%, considerably worse than the entire U.S. market, which gained 9.7%. The operator of 25 amusement and water parks in North America, Six Flags, is about to start its for the busy summer season. The last thing it needs is to hire thousands of people only to have them stay at home because of the widespread outbreak. Considering how SIX stock has performed, it would have to consider the most speculative of the bunch. That’s especially true given the company recently reported a surprise fourth-quarter loss, sending its share price to a seven-year low. It also provided weak guidance and cut its quarterly dividend by 70%, to 25 cents from 83 cents.  That’s all terrible news. However, for the entire fiscal 2019, it managed to generate positive adjusted free cash flow of While that was down from $292.9 million in 2018, it expects 2020 adjusted EBITDA of at least $435 million. Analysts have reason to be skeptical. They were expecting Six Flags delivered a 13-cent loss. To provide itself a little financial flexibility in 2020, the company will only pay out an estimated $85 million in dividends in 2020, down from $279 million in 2019. If you’re a speculative investor, getting paid 5.12% to wait for Six Flags to recover is an excellent risk/reward proposition. If this is money from your retirement account, I’d look elsewhere for income. Royal Caribbean (RCL) Source: Laszlo Halasi / Shutterstock.com 1-Week Return: -18% Year to Date: -50.7% Like a lot of services stocks, Royal Caribbean (NYSE:) was getting pummeled before this past week’s major slide. It’s been so bad that you have to go back to its 10-year numbers to find a decent performance. Back in March 2015, I recommended Royal Caribbean, along with Tractor Supply (NYSE:) and Under Armour (NYSE:UA, NYSE:), three of 16 stocks that were added to the S&P 500 in 2014. My rationale for buying RCL was all about CEO Richard Fain, who still runs the massive cruise operation. “When Fain took the helm of the second-largest cruise operator in the world in 1988, RCL had Since then, its revenues have grown almost 9% per year over a 27-year period to $8.1 billion. It might not sound like much, but over such a long period of time, it’s really quite significant,” I wrote on March 18, 2015. Fast forward to 2019. Royal Caribbean finished the fiscal year with and revenue of $11 billion. Year over year, its operating income increased 9.9% to $2.08 billion. Those are all very respectable numbers. In 2020, it expects adjusted earnings per share of $10.40 to $10.70 a share.   That doesn’t take into consideration the effect of the coronavirus. On Feb. 13, Fain directly, suggesting that the outbreak could materially impact the company’s business, but it’s too early to tell. Cruises are getting canceled. That’s undeniable. However, RCL stock is cheaper than it has been on a valuation basis since 9/11. Fain handled that period with composure. He’ll do the same regardless of what transpires in the next few months. At less than it’s one of the best values available. Urban Outfitters (URBN) Source: Konmac/Shutterstock.com 1-Week Return: -18.9% Year to Date: -31.3% Since Urban Outfitters (NASDAQ:) recovered from the financial crisis in 2008, its stock’s only traded under $20 on one occasion for approximately three months in the summer of 2017. It did dip under $20 for a brief week in August 2019. Since then, it’s traded between $20 and $30. The company’s three main banners: Urban Outfitters, Anthropologie, and Free People, have struggled to find their footing in recent years. This has kept a lid on any real stock appreciation at a time when the markets have generally done well. Over the past three years, for example, URBN stock has generated an annualized total return of -9.4%, significantly worse than the 10.8% total return for the markets as a whole. On March 3, after the markets closed, the company reported its Q4 2020 results. Its same-store sales grew 4% in the quarter due to strong online sales offset by negative brick-and-mortar sales. Overall, the company’s $1.7 billion in Q4 sales was a record. Furthermore, its spring assortment is selling well, suggesting that the first quarter of 2021 should also be good. For the year, it had $3.98 billion in sales with Anthropologie and Free People showing small gains offset by a slight drop at its legacy Urban Outfitters concept. On the bottom line, unfortunately, the company continues to struggle to produce higher margins. In the fourth quarter, its adjusted operating income was $67.1 million, or a margin of 5.7%. A year earlier, its operating profit was $117.8 million, or a 10.4% margin. For the entire year, its operating margin was 5.8%, 390 basis points less than in 2019. If you consider that TJX (NYSE:), which many think is one of the best retailers going, has a price-to-book multiple of 12.6, Urban Outfitter’s P/B multiple of 1.6 seems like a downright steal. I’m being slightly facetious. TJX’s business is in a much better place than Urban Outfitters. However, down almost 27% over the past 52 weeks, and closing in on $20, aggressive investors interested in retail might want to give it some consideration.       Park Hotels & Resorts (PK) Source: Shutterstock 1-Week Return: -10.8%  Year to Date: -37% Park Hotels & Resorts (NYSE:) was spun-off from Hilton Hotels (NYSE:) on Jan. 3, 2017. Hilton shareholders received one share of Park Hotels for every five shares of the parent and one share of Hilton Grand Vacations (NYSE:) for every 10 shares of Hilton. For example, if you owned 10 shares of Hilton immediately before the split into three companies, but after the 3-for-1 reverse stock split, today your $540 would be worth $999, a compound annual growth rate of 22.8%. That’s good news. The bad news is that Park stock has severely underperformed, losing 14% of its value in the three years since it started trading as an independent public company. The hotel owner’s business, however, looks healthier than ever. On Feb. 26, it announced fiscal 2019 results that included a comparable 1.9% higher than in 2018, with an average daily rate (ADR) of $221.91, 1.2% higher than a year earlier. On the bottom line, it had adjusted funds from operations (FFO) of $613 million, 1.7% higher than a year earlier. While it’s true those numbers will take a hit in the short term, CEO Thomas Baltimore is confident that it continues to build on its strengths while deleveraging the balance sheet. To that end, it sold three hotels during the fourth quarter for gross proceeds of $260 million. In all four quarters of fiscal 2019, it sold eight non-core hotels for total proceeds of $497 million. Thanks to its acquisition of Chesapeake Lodging, the lodging REIT owns 60 premium-branded hotels with over 33,000 rooms available. Yielding 9.8% at the moment and likely to move higher as the overall effects of the coronavirus become known, Park Hotel’s position within the U.S. lodging industry suggests it’s a good buy for an income-generating portfolio.    Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. The post 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.
American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com 1-Week Return: -16.17% Year to Date: -43.9% Flying, much like taking the subway to work, is a giant moving petri dish of germs and unhealthiness. It has lost about 14% of its value since then, but it’s still held up much better than AAL. However, AAL has been beaten down so dramatically, the contrarian in me believes it’s got to bounce off the mat once the coronavirus threat is contained or eliminated. Shares have lost nearly 40% of their value over that time, falling below their 2013 IPO lows,” Roth stated March 2. Usually, I’d recommend a safer play like Southwest Airlines (NYSE:), which I suggested was cheaper than most investors thought back in April 2018.
American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com 1-Week Return: -16.17% Year to Date: -43.9% Flying, much like taking the subway to work, is a giant moving petri dish of germs and unhealthiness. It has lost about 14% of its value since then, but it’s still held up much better than AAL. However, AAL has been beaten down so dramatically, the contrarian in me believes it’s got to bounce off the mat once the coronavirus threat is contained or eliminated. Under $60, it’s a steal. Churchill Downs (CHDN) Source: Thomas Kelley / Shutterstock.com 1-Week Return: -6.2% Year to Date: -14.1% Churchill Downs (NASDAQ:) is a stock I’ve long promoted as a good buy.
American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com 1-Week Return: -16.17% Year to Date: -43.9% Flying, much like taking the subway to work, is a giant moving petri dish of germs and unhealthiness. It has lost about 14% of its value since then, but it’s still held up much better than AAL. However, AAL has been beaten down so dramatically, the contrarian in me believes it’s got to bounce off the mat once the coronavirus threat is contained or eliminated. However, several services stocks have still lost more than 15% of their value over the past week as investors bet Americans will stay away from public spaces. Here are seven stocks to buy that I see recovering all of these losses in the weeks and months ahead. Planet Fitness (PLNT) Source: Ken Wolter / Shutterstock.com 1-Week Return: (through March 9) Year to Date: -13.83% I don’t think you could use enough Lysol wipes to get me to go near a sweaty gym at this point, which is why Planet Fitness (NYSE:) has lost more than 15% of its stock over the past week. It’s fair to say, however, that PLNT was due for a comedown after delivering a 3-year annualized total return of 47.9%.
American Airlines (AAL) Source: GagliardiPhotography / Shutterstock.com 1-Week Return: -16.17% Year to Date: -43.9% Flying, much like taking the subway to work, is a giant moving petri dish of germs and unhealthiness. It has lost about 14% of its value since then, but it’s still held up much better than AAL. However, AAL has been beaten down so dramatically, the contrarian in me believes it’s got to bounce off the mat once the coronavirus threat is contained or eliminated. However, several services stocks have still lost more than 15% of their value over the past week as investors bet Americans will stay away from public spaces. Here are seven stocks to buy that I see recovering all of these losses in the weeks and months ahead. Planet Fitness (PLNT) Source: Ken Wolter / Shutterstock.com 1-Week Return: (through March 9) Year to Date: -13.83% I don’t think you could use enough Lysol wipes to get me to go near a sweaty gym at this point, which is why Planet Fitness (NYSE:) has lost more than 15% of its stock over the past week. It’s fair to say, however, that PLNT was due for a comedown after delivering a 3-year annualized total return of 47.9%.
6201.0
2020-03-09 00:00:00 UTC
This ETF Holds Stocks Insiders Want to Own
AAL
https://www.nasdaq.com/articles/this-etf-holds-stocks-insiders-want-to-own-2020-03-09
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A look at the weighted underlying holdings of the iShares Edge MSCI USA Value Factor ETF (VLUE) shows an impressive 15.1% of holdings on a weighted basis have experienced insider buying within the past six months. Vistra Energy Corp (Symbol: VST), which makes up 0.18% of the iShares Edge MSCI USA Value Factor ETF (VLUE), has seen 3 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $7,102,300 worth of VST, making it the #106 largest holding. The table below details the recent insider buying activity observed at VST: VST — last trade: $20.53 — Recent Insider Buys: PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE 03/03/2020 Scott B. Helm Director 20,000 $20.21 $404,240 03/03/2020 Paul M. Barbas Director 9,925 $20.26 $201,075 03/03/2020 John R. Sult Director 5,000 $20.50 $102,524 And American Airlines Group Inc (Symbol: AAL), the #130 largest holding among components of the iShares Edge MSCI USA Value Factor ETF (VLUE), shows 2 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $4,672,326 worth of AAL, which represents approximately 0.12% of the ETF's total assets at last check. The recent insider buying activity observed at AAL is detailed in the table below: AAL — last trade: $15.97 — Recent Insider Buys: PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE 10/28/2019 James F. Albaugh Director 10,000 $31.41 $314,070 02/24/2020 John T. Cahill Director 25,000 $25.14 $628,378 02/28/2020 John T. Cahill Director 25,000 $18.96 $474,125 02/28/2020 Michael J. Embler Director 4,000 $19.33 $77,312 10 ETFs With Stocks That Insiders Are Buying » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The recent insider buying activity observed at AAL is detailed in the table below: AAL — last trade: $15.97 — Recent Insider Buys: Helm Director 20,000 $20.21 $404,240 03/03/2020 Paul M. Barbas Director 9,925 $20.26 $201,075 03/03/2020 John R. Sult Director 5,000 $20.50 $102,524 And American Airlines Group Inc (Symbol: AAL), the #130 largest holding among components of the iShares Edge MSCI USA Value Factor ETF (VLUE), shows 2 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $4,672,326 worth of AAL, which represents approximately 0.12% of the ETF's total assets at last check.
Helm Director 20,000 $20.21 $404,240 03/03/2020 Paul M. Barbas Director 9,925 $20.26 $201,075 03/03/2020 John R. Sult Director 5,000 $20.50 $102,524 And American Airlines Group Inc (Symbol: AAL), the #130 largest holding among components of the iShares Edge MSCI USA Value Factor ETF (VLUE), shows 2 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $4,672,326 worth of AAL, which represents approximately 0.12% of the ETF's total assets at last check. The recent insider buying activity observed at AAL is detailed in the table below: AAL — last trade: $15.97 — Recent Insider Buys:
Helm Director 20,000 $20.21 $404,240 03/03/2020 Paul M. Barbas Director 9,925 $20.26 $201,075 03/03/2020 John R. Sult Director 5,000 $20.50 $102,524 And American Airlines Group Inc (Symbol: AAL), the #130 largest holding among components of the iShares Edge MSCI USA Value Factor ETF (VLUE), shows 2 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $4,672,326 worth of AAL, which represents approximately 0.12% of the ETF's total assets at last check. The recent insider buying activity observed at AAL is detailed in the table below: AAL — last trade: $15.97 — Recent Insider Buys:
Helm Director 20,000 $20.21 $404,240 03/03/2020 Paul M. Barbas Director 9,925 $20.26 $201,075 03/03/2020 John R. Sult Director 5,000 $20.50 $102,524 And American Airlines Group Inc (Symbol: AAL), the #130 largest holding among components of the iShares Edge MSCI USA Value Factor ETF (VLUE), shows 2 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $4,672,326 worth of AAL, which represents approximately 0.12% of the ETF's total assets at last check. The recent insider buying activity observed at AAL is detailed in the table below: AAL — last trade: $15.97 — Recent Insider Buys:
6202.0
2020-03-08 00:00:00 UTC
Should You Buy or Sell Airline Stocks Right Now?
AAL
https://www.nasdaq.com/articles/should-you-buy-or-sell-airline-stocks-right-now-2020-03-08
nan
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Airline shares have been decimated by the COVID-19 coronavirus sell-off, with some stocks losing nearly half of their value in the last two weeks alone. And not without reason. As the coronavirus has spread globally, travel demand has plummeted, with United Airlines Holdings (NASDAQ: UAL) saying it saw near-term demand to all of Asia fall by more than 75% when the virus was largely contained to China. The airlines have canceled flights to parts of the world that have been heavily affected, and some, including United and JetBlue Airways (NASDAQ: JBLU), have announced plans to scale back service across their entire networks until demand resumes. Airline stocks year to date data by YCharts The airline sector has long been highly cyclical, and the downturns have usually been painful for investors. Storied names like Eastern Airlines, TWA, Braniff, and PanAm disappeared from the skies during past downturns. Nothing is certain about the ultimate effects coronavirus will have on the economy at large, and airlines in particular, but it does appear the blow will be substantial. It's a scary time to be holding airline shares. But for those with a long time horizon, and the stomach to handle turbulence, here's why it's a great time to buy. This is material, but not permanent Wall Street tends to be focused on quarterly results, and there is little doubt the coronavirus will affect airline financials at least for the first half of 2020. That could extend into the second half of the year as well. During a TV appearance, Southwest Airlines (NYSE: LUV) CEO Gary Kelly said the drop in demand is reminiscent of what happened after the attacks on Sept. 11, 2001. In years past that might have been enough to permanently ground a U.S. airline, and based on the stock reactions in recent weeks, memories of past crises are weighing heavily on investors this time around. However, the industry has changed dramatically. A period of restructuring and consolidation in the early 2000s reduced the number of airlines competing for business and fortified the balance sheets of the survivors. Today Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), United, and Southwest control about 80% of the U.S. market, giving them unprecedented pricing power. Image source: Getty Images. The coronavirus could cause changes in behavior, for example, boosting teleconferencing over business travel. There is also the risk the virus-related slowdown could lead to a U.S. recession that could soften corporate travel demand. But there is nothing to suggest there will not be an eventual recovery. If past virus outbreaks are a guide, tourism and leisure travel will return first, possibly as soon as this summer, because it is more easily stimulated by fare sales. Prior to coronavirus, the International Air Transport Association had projected that global air traffic will double over the next two decades. Near-term earnings are likely to tumble because of the outbreak, but in all likelihood the long-term growth forecast will not be altered. And fortunately for investors, all major airlines have the balance sheets to weather a near-term disruption. Airlines are healthier than they have ever been In past downturns airlines failed because the industry has massive fixed costs tied to airplane purchases, and with so many competitors chasing a limited number of fliers, pricing discipline went out the window. Consolidation has helped on the pricing side, and the post-9/11 bankruptcies of Delta, American, and United have helped bring costs under control as well. American's share price fall has been the most dramatic among major airlines because the company has $24 billion in long-term debt, the most in the industry, and is therefore seen as the most vulnerable to a prolonged downturn. The company went into 2020 hoping to use profits to pay down that debt total by as much as $4 billion over the next two years, and coronavirus has certainly cast doubt on that plan. But American and its peers are far from a cash crunch. The company successfully raised more than $1 billion earlier in the year and has significant unencumbered assets to borrow against if it needs more cash in a pinch. At year's end, it also had about $7.1 billion in total available liquidity under its borrowing agreements. Spirit Airlines (NYSE: SAVE) has fallen nearly as much as American, which is perhaps unsurprising given that the company's 31% debt to asset ratio is the only U.S. airline approaching American's 40% figure. The company's shares have also been beaten down because it was expected to be one of the fastest-growing airlines in 2020, and its valuation prior to the outbreak reflected an outlook for growth that now seems unlikely to materialize. But Spirit, like American, is not cash constrained, with more than $1 billion in cash at year's end. Image source: Getty Images. The industry also has the support of Washington, with the White House reportedly willing to consider deferring taxes to help stem the economic fallout of the slowdown. The bottom line is that every publicly traded U.S. airline has considerable runway ahead of it before the coronavirus becomes a severe financial crisis. Warren Buffett, who famously said investors should be greedy when others are fearful, manages a basket of airline stocks inside Berkshire Hathaway. We won't know for sure what Buffett was buying and selling as markets turned south until quarter-end disclosures, but we do know Berkshire added to its massive Delta stake in late February. Buy for the long haul Investors looking at the airline sector need to understand this could get worse before it gets better. The global industry has lost more than $40 billion in combined market capitalization in February alone, about one-fifth of its total, according to British investment firm AJ Bell. That sort of drop is driven by emotion, and not financials, and until the full extent of the coronavirus is known it could be hard for airline stocks to find a bottom. That said, the long-term outlook for the industry is not 20% worse today than it was in early January. Investors willing to buy in today and ride through the headwinds have the opportunity to buy quality operators like Delta at six times earnings, less than half the multiple investors were paying for the stock a little more than a year ago. Be careful bargain hunting: Companies like American and Spirit have fallen the most because their upside is delayed more than most due to coronavirus and could be facing multi-year recoveries. But for those who can ignore the headlines, keep a focus on the long term, and be selective about what they buy, it is an intriguing time to buy airline stocks. 10 stocks we like better than Delta Air Lines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Delta Air Lines wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman owns shares of Berkshire Hathaway (B shares), Delta Air Lines, and Spirit Airlines. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends JetBlue Airways and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short March 2020 $225 calls on Berkshire Hathaway (B shares). 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.
Today Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), United, and Southwest control about 80% of the U.S. market, giving them unprecedented pricing power. The airlines have canceled flights to parts of the world that have been heavily affected, and some, including United and JetBlue Airways (NASDAQ: JBLU), have announced plans to scale back service across their entire networks until demand resumes. We won't know for sure what Buffett was buying and selling as markets turned south until quarter-end disclosures, but we do know Berkshire added to its massive Delta stake in late February.
Today Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), United, and Southwest control about 80% of the U.S. market, giving them unprecedented pricing power. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman owns shares of Berkshire Hathaway (B shares), Delta Air Lines, and Spirit Airlines. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, Southwest Airlines, and Spirit Airlines.
Today Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), United, and Southwest control about 80% of the U.S. market, giving them unprecedented pricing power. Airline stocks year to date data by YCharts The airline sector has long been highly cyclical, and the downturns have usually been painful for investors. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman owns shares of Berkshire Hathaway (B shares), Delta Air Lines, and Spirit Airlines.
Today Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), United, and Southwest control about 80% of the U.S. market, giving them unprecedented pricing power. As the coronavirus has spread globally, travel demand has plummeted, with United Airlines Holdings (NASDAQ: UAL) saying it saw near-term demand to all of Asia fall by more than 75% when the virus was largely contained to China. American's share price fall has been the most dramatic among major airlines because the company has $24 billion in long-term debt, the most in the industry, and is therefore seen as the most vulnerable to a prolonged downturn.
6203.0
2020-03-06 00:00:00 UTC
Airlines Reducing Flights, Fares Due To Coronavirus
AAL
https://www.nasdaq.com/articles/airlines-reducing-flights-fares-due-to-coronavirus-2020-03-06
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(RTTNews) - Airlines are continuing to cut flight schedules and fares as the rapid spread of the coronavirus across the world has sharply reduced demand for air travel. The weak demand for air travel is the worst since the last financial crisis. Several major companies are avoiding attending major business events or curbing travel plans of their employees amid worries about the coronavirus. Travel restrictions enforced by governments and the risks of getting quarantined too have hurt demand for air travel. Thursday, the International Air Transport Association or IATA updated its analysis of the financial impact of the novel coronavirus or COVID-19 public health emergency on the global air transport industry. The agency said it sees 2020 global revenue losses of between $63 billion and $113 billion for the passenger business. United Airlines said its plans to reduce domestic as well as international flights amid weak demand. The airline reportedly said in a letter to its employees that domestic service would be cut by about 10 percent and international service by about 20 percent in the month of April, with likely similar cuts in the month of May as well. United Airlines and many airlines across the world have already suspended flights to Hong Kong and mainland China, where the coronavirus outbreak emerged. Delta Air Lines has also suspended flights to China, and reduced service from the U.S. to South Korea and Japan. In addition, the airline has temporarily suspended flights to Milan, Italy. American Airlines has suspended operations from the U.S. to South Korea, China, Hong Kong and Milan, Italy. Further, United, Delta Air Lines, JetBlue Airways and American Airlines have all suspended their change fees due to passenger uncertainty about travel. Lufthansa, one of the largest airlines in Europe, is canceling about 7,100 European flights until the end of March due to lower demand. This will reduce capacity by up to 25 percent. The group will also cancel all flights to Israel as well as reduce frequencies in its route network to and from Hong Kong and Seoul. Last week, Lufthansa had said it would suspend flights from Germany to China and Israel. In the UK, struggling airline Flybe ceased operations Thursday and went into administration. The regional airline, which was already reeling under financial issues, was delivered the final blow by the ongoing coronavirus outbreak. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
(RTTNews) - Airlines are continuing to cut flight schedules and fares as the rapid spread of the coronavirus across the world has sharply reduced demand for air travel. Further, United, Delta Air Lines, JetBlue Airways and American Airlines have all suspended their change fees due to passenger uncertainty about travel. Lufthansa, one of the largest airlines in Europe, is canceling about 7,100 European flights until the end of March due to lower demand.
United Airlines said its plans to reduce domestic as well as international flights amid weak demand. United Airlines and many airlines across the world have already suspended flights to Hong Kong and mainland China, where the coronavirus outbreak emerged. American Airlines has suspended operations from the U.S. to South Korea, China, Hong Kong and Milan, Italy.
(RTTNews) - Airlines are continuing to cut flight schedules and fares as the rapid spread of the coronavirus across the world has sharply reduced demand for air travel. United Airlines and many airlines across the world have already suspended flights to Hong Kong and mainland China, where the coronavirus outbreak emerged. Further, United, Delta Air Lines, JetBlue Airways and American Airlines have all suspended their change fees due to passenger uncertainty about travel.
The weak demand for air travel is the worst since the last financial crisis. United Airlines and many airlines across the world have already suspended flights to Hong Kong and mainland China, where the coronavirus outbreak emerged. American Airlines has suspended operations from the U.S. to South Korea, China, Hong Kong and Milan, Italy.
6204.0
2020-03-06 00:00:00 UTC
White House Mulls Coronavirus Relief for Airlines, Cruise Industry
AAL
https://www.nasdaq.com/articles/white-house-mulls-coronavirus-relief-for-airlines-cruise-industry-2020-03-06
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Airline stocks including Delta (NYSE: DAL), American (NASDAQ: AAL), and United Airlines (NASDAQ: UAL) turned sharply higher in Friday afternoon trading. The reason: The Trump Administration may "consider deferring taxes for the cruise, travel and airline industries to stem the economic fallout of the coronavirus," according to a report from The Washington Post. Image source: Getty Images. As the paper explains, "the travel and tourism industries are facing their worst crisis since the 2001 terrorist attacks." Airlines alone are thought to have lost as much as $113 billion in sales from flight cancellations and reservations not made, and Administration officials are weighing how to respond to the crisis. One possibility: deferring taxes on profits for travel industry companies. White House economic advisor Larry Kudlow has confirmed that the Administration is considering "timely and targeted" measures to safeguard "some of the sectors might need some temporary assistance," while not confirming that tax deferrals per se will be the specific method of choice. He also made a point of reassuring investors that the coronavirus is largely "contained" in the U.S. and said the Administration doesn't want "to act prematurely," dismissing the need for a large economic stimulus package to right the economy. Contradicting the optimism of airline investors, this afternoon, shares of Royal Caribbean Cruises (NYSE: RCL) and Carnival Corporation (NYSE: CCL) are each down over 2%. 10 stocks we like better than United Airlines Holdings When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and United Airlines Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Delta Air Lines. The Motley Fool recommends Carnival. 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.
Airline stocks including Delta (NYSE: DAL), American (NASDAQ: AAL), and United Airlines (NASDAQ: UAL) turned sharply higher in Friday afternoon trading. The reason: The Trump Administration may "consider deferring taxes for the cruise, travel and airline industries to stem the economic fallout of the coronavirus," according to a report from The Washington Post. Airlines alone are thought to have lost as much as $113 billion in sales from flight cancellations and reservations not made, and Administration officials are weighing how to respond to the crisis.
Airline stocks including Delta (NYSE: DAL), American (NASDAQ: AAL), and United Airlines (NASDAQ: UAL) turned sharply higher in Friday afternoon trading. The reason: The Trump Administration may "consider deferring taxes for the cruise, travel and airline industries to stem the economic fallout of the coronavirus," according to a report from The Washington Post. Contradicting the optimism of airline investors, this afternoon, shares of Royal Caribbean Cruises (NYSE: RCL) and Carnival Corporation (NYSE: CCL) are each down over 2%.
Airline stocks including Delta (NYSE: DAL), American (NASDAQ: AAL), and United Airlines (NASDAQ: UAL) turned sharply higher in Friday afternoon trading. 10 stocks we like better than United Airlines Holdings When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Rich Smith has no position in any of the stocks mentioned.
Airline stocks including Delta (NYSE: DAL), American (NASDAQ: AAL), and United Airlines (NASDAQ: UAL) turned sharply higher in Friday afternoon trading. One possibility: deferring taxes on profits for travel industry companies. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
6205.0
2020-03-06 00:00:00 UTC
Nasdaq 100 Movers: MELI, UAL
AAL
https://www.nasdaq.com/articles/nasdaq-100-movers%3A-meli-ual-2020-03-06
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In early trading on Friday, shares of United Airlines Holdings topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.5%. Year to date, United Airlines Holdings has lost about 40.0% of its value. And the worst performing Nasdaq 100 component thus far on the day is MercadoLibre, trading down 5.2%. MercadoLibre is showing a gain of 4.1% looking at the year to date performance. Two other components making moves today are Tesla, trading down 4.5%, and American Airlines Group, trading up 1.6% on the day. VIDEO: Nasdaq 100 Movers: MELI, UAL 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 Friday, shares of United Airlines Holdings topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.5%. And the worst performing Nasdaq 100 component thus far on the day is MercadoLibre, trading down 5.2%. VIDEO: Nasdaq 100 Movers: MELI, UAL 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 Friday, shares of United Airlines Holdings topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.5%. Year to date, United Airlines Holdings has lost about 40.0% of its value. And the worst performing Nasdaq 100 component thus far on the day is MercadoLibre, trading down 5.2%.
In early trading on Friday, shares of United Airlines Holdings topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.5%. And the worst performing Nasdaq 100 component thus far on the day is MercadoLibre, trading down 5.2%. Two other components making moves today are Tesla, trading down 4.5%, and American Airlines Group, trading up 1.6% on the day.
In early trading on Friday, shares of United Airlines Holdings topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.5%. And the worst performing Nasdaq 100 component thus far on the day is MercadoLibre, trading down 5.2%. VIDEO: Nasdaq 100 Movers: MELI, UAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
6206.0
2020-03-05 00:00:00 UTC
Coronavirus Could Cost Airlines $113 Billion
AAL
https://www.nasdaq.com/articles/coronavirus-could-cost-airlines-%24113-billion-2020-03-05
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As COVID-19 continues to spread, the trade association for the world's airlines updated its impact assessment today. The International Air Transport Association (IATA) now sees global revenue losses for 2020 potentially hitting $113 billion for passenger airlines. Just over two weeks after it released its last analysis, IATA now sees losses more than doubling the previous estimate, even in a scenario of COVID-19 containment. Further spreading of the virus could bring losses to the $113 billion figure. Image source: Getty Images. Continued pain The latest airline to suffer from the impacts of the coronavirus spread came overnight when British regional carrier, Flybe Airlines, entered Administration, grounding all flights and ceasing operations. This comes on the heels of additional cancellation announcements by airlines such as American Airlines Group Inc. (NASDAQ: AAL), Delta Air Lines Inc. (NYSE: DAL), and United Airlines Holdings Inc. (NASDAQ: UAL). American recently announced the suspension of flights to Soeoul, South Korea, and Milan, Italy, through April 25, 2020. United suspended some flights to Japan, Singapore and South Korea, after already suspending flights to China and Hong Kong through April, 2020. Delta also is reducing flights between the United States and Japan, effective through April. These are just some of the markets seeing lost traffic. The IATA "limited spread" scenario equates to a loss of 11% of global passenger revenue due to the outbreak. The "extensive spread" outcome would be a loss of 19%, which would equal industry losses seen during the Global Financial Crisis. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Howard Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends 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.
This comes on the heels of additional cancellation announcements by airlines such as American Airlines Group Inc. (NASDAQ: AAL), Delta Air Lines Inc. (NYSE: DAL), and United Airlines Holdings Inc. (NASDAQ: UAL). The International Air Transport Association (IATA) now sees global revenue losses for 2020 potentially hitting $113 billion for passenger airlines. Just over two weeks after it released its last analysis, IATA now sees losses more than doubling the previous estimate, even in a scenario of COVID-19 containment.
This comes on the heels of additional cancellation announcements by airlines such as American Airlines Group Inc. (NASDAQ: AAL), Delta Air Lines Inc. (NYSE: DAL), and United Airlines Holdings Inc. (NASDAQ: UAL). The International Air Transport Association (IATA) now sees global revenue losses for 2020 potentially hitting $113 billion for passenger airlines. United suspended some flights to Japan, Singapore and South Korea, after already suspending flights to China and Hong Kong through April, 2020.
This comes on the heels of additional cancellation announcements by airlines such as American Airlines Group Inc. (NASDAQ: AAL), Delta Air Lines Inc. (NYSE: DAL), and United Airlines Holdings Inc. (NASDAQ: UAL). Continued pain The latest airline to suffer from the impacts of the coronavirus spread came overnight when British regional carrier, Flybe Airlines, entered Administration, grounding all flights and ceasing operations. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
This comes on the heels of additional cancellation announcements by airlines such as American Airlines Group Inc. (NASDAQ: AAL), Delta Air Lines Inc. (NYSE: DAL), and United Airlines Holdings Inc. (NASDAQ: UAL). The International Air Transport Association (IATA) now sees global revenue losses for 2020 potentially hitting $113 billion for passenger airlines. Delta also is reducing flights between the United States and Japan, effective through April.
6207.0
2020-03-05 00:00:00 UTC
Why Shares of Airline Stocks Are Falling Today
AAL
https://www.nasdaq.com/articles/why-shares-of-airline-stocks-are-falling-today-2020-03-05
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What happened The airline sector was hit by COVID-19 coronavirus-related concerns again on Thursday, with shares of Alaska Air Group (NYSE: ALK) and Spirit Airlines (NYSE: SAVE) each down more than 10% in early trading. The losses extended well beyond those two, however, with shares of American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), Hawaiian Holdings (NASDAQ: HA), and United Airlines Holdings (NASDAQ: UAL) all down more than 5%. The industry seems certain to be hit hard by an outbreak-related slowdown in travel. But until the extent of that hit can be quantified, trying to call a bottom in these stocks is like trying to catch a falling knife. So what Airline stocks have been in a downward spiral in recent weeks as it has become more apparent that concerns about the novel coronavirus would stifle near-term demand for travel. This realization has called into question whether demand will materialize during typically peak travel times including spring break, Easter, and summer vacation. Shares of Spirit, Hawaiian, and American are now down about 40% year to date, and many other airline stocks are not far behind. The sell-off has gotten worse as airlines begin to take actions that confirm investor fears about demand are accurate. Late Wednesday United said it would cut international flying by 20% and domestic flights by 10% in April, while on Thursday morning Southwest revised its capacity estimate downward saying it has seen a "significant decline" in demand in recent days. Image source: Getty Images. On Thursday the International Air Transport Association estimated the coronavirus could cost airlines about $113 billion in lost 2020 revenue worldwide, well above the $29 billion estimate it had forecast just weeks ago. Investors were also likely worried after British regional carrier Flybe ceased operations late Wednesday, the first major airline to fail due to the slowdown. Spirit is under particular pressure because that company had originally forecast aggressive growth in 2020, and its shares had been priced in anticipation for that growth. American, meanwhile, is seen as the most vulnerable of the major U.S. airlines due to its high debt burden. American had intended to use profits in 2020 to pay down that debt, but it now appears likely the company's turnaround is going to take longer than anticipated. Hawaiian is a niche airline both exposed to U.S. vacation travel and more reliant than any other U.S.-based carrier on Asia travel. Now what The markets hate uncertainty, and until there is some sense to how bad the coronavirus outbreak will be, and then some firm numbers on what the impact on airlines will be, it's going to be hard for these stocks to rally. Fortunately, the U.S. industry came into this slowdown healthy, and unless conditions deteriorate significantly, the carriers should be able to weather this storm without ceasing operations or succumbing to bankruptcy. In fact, I'd wager that a year from now we will look back on this decline as a buying opportunity. Berkshire Hathaway seems to think so: Warren Buffett's company raised its stake in Delta last week during the sell-off. Note that Delta's shares are now trading below the average price Berkshire paid when it added shares, a reminder that these sell-offs can last longer, and run deeper, than even the smartest investors can anticipate. But for those who can handle the turbulence, and are selective about what they buy, now is a good time to take a flier on some airline stocks. 10 stocks we like better than Delta Air Lines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Delta Air Lines wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman owns shares of Berkshire Hathaway (B shares), Delta Air Lines, and Spirit Airlines. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends Alaska Air Group and Hawaiian Holdings and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short March 2020 $225 calls on Berkshire Hathaway (B shares). 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.
The losses extended well beyond those two, however, with shares of American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), Hawaiian Holdings (NASDAQ: HA), and United Airlines Holdings (NASDAQ: UAL) all down more than 5%. This realization has called into question whether demand will materialize during typically peak travel times including spring break, Easter, and summer vacation. Late Wednesday United said it would cut international flying by 20% and domestic flights by 10% in April, while on Thursday morning Southwest revised its capacity estimate downward saying it has seen a "significant decline" in demand in recent days.
The losses extended well beyond those two, however, with shares of American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), Hawaiian Holdings (NASDAQ: HA), and United Airlines Holdings (NASDAQ: UAL) all down more than 5%. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends Alaska Air Group and Hawaiian Holdings and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short March 2020 $225 calls on Berkshire Hathaway (B shares).
The losses extended well beyond those two, however, with shares of American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), Hawaiian Holdings (NASDAQ: HA), and United Airlines Holdings (NASDAQ: UAL) all down more than 5%. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman owns shares of Berkshire Hathaway (B shares), Delta Air Lines, and Spirit Airlines. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, Southwest Airlines, and Spirit Airlines.
The losses extended well beyond those two, however, with shares of American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), Hawaiian Holdings (NASDAQ: HA), and United Airlines Holdings (NASDAQ: UAL) all down more than 5%. Note that Delta's shares are now trading below the average price Berkshire paid when it added shares, a reminder that these sell-offs can last longer, and run deeper, than even the smartest investors can anticipate. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman owns shares of Berkshire Hathaway (B shares), Delta Air Lines, and Spirit Airlines.
6208.0
2020-03-05 00:00:00 UTC
Nasdaq 100 Movers: AAL, NTES
AAL
https://www.nasdaq.com/articles/nasdaq-100-movers%3A-aal-ntes-2020-03-05
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In early trading on Thursday, shares of NetEase, topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.3%. Year to date, NetEase registers a 12.4% gain. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 8.0%. American Airlines Group is lower by about 40.6% looking at the year to date performance. Two other components making moves today are United Airlines Holdings, trading down 7.7%, and Gilead Sciences, trading up 1.2% on the day. VIDEO: Nasdaq 100 Movers: AAL, NTES The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
VIDEO: Nasdaq 100 Movers: AAL, NTES The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 8.0%. American Airlines Group is lower by about 40.6% looking at the year to date performance.
VIDEO: Nasdaq 100 Movers: AAL, NTES 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 Thursday, shares of NetEase, topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.3%. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 8.0%.
VIDEO: Nasdaq 100 Movers: AAL, NTES 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 Thursday, shares of NetEase, topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.3%. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 8.0%.
VIDEO: Nasdaq 100 Movers: AAL, NTES The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 8.0%. American Airlines Group is lower by about 40.6% looking at the year to date performance.
6209.0
2020-03-04 00:00:00 UTC
Nasdaq 100 Movers: UAL, JD
AAL
https://www.nasdaq.com/articles/nasdaq-100-movers%3A-ual-jd-2020-03-04
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In early trading on Wednesday, shares of JD.com, topped the list of the day's best performing components of the Nasdaq 100 index, trading up 5.2%. Year to date, JD.com registers a 23.8% gain. And the worst performing Nasdaq 100 component thus far on the day is United Airlines Holdings, trading down 2.3%. United Airlines Holdings is lower by about 35.3% looking at the year to date performance. Two other components making moves today are American Airlines Group, trading down 1.7%, and Take-Two Interactive Software, trading up 3.6% on the day. VIDEO: Nasdaq 100 Movers: UAL, JD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
And the worst performing Nasdaq 100 component thus far on the day is United Airlines Holdings, trading down 2.3%. United Airlines Holdings is lower by about 35.3% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: UAL, JD 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 JD.com, topped the list of the day's best performing components of the Nasdaq 100 index, trading up 5.2%. And the worst performing Nasdaq 100 component thus far on the day is United Airlines Holdings, trading down 2.3%. United Airlines Holdings is lower by about 35.3% looking at the year to date performance.
In early trading on Wednesday, shares of JD.com, topped the list of the day's best performing components of the Nasdaq 100 index, trading up 5.2%. And the worst performing Nasdaq 100 component thus far on the day is United Airlines Holdings, trading down 2.3%. Two other components making moves today are American Airlines Group, trading down 1.7%, and Take-Two Interactive Software, trading up 3.6% on the day.
And the worst performing Nasdaq 100 component thus far on the day is United Airlines Holdings, trading down 2.3%. United Airlines Holdings is lower by about 35.3% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: UAL, JD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
6210.0
2020-03-03 00:00:00 UTC
Volatility is Still With Us, But a Return to Logic is a Welcome Thing
AAL
https://www.nasdaq.com/articles/volatility-is-still-with-us-but-a-return-to-logic-is-a-welcome-thing-2020-03-03
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Y esterday, after a couple of records were broken by stocks dropping last week, there was another record, this time on the positive side. The, Dow Jones Industrial Index had its largest one-day point gain in history, jumping 1,293 points. Does that mean that the problems are over, at least in terms of the stock market, and we can all move on? Not really, although there are some encouraging signs. Because the word that has been so overused over the last week or so, it is important to remember that "volatility" does not mean just downward movement; it means violent swings in the market. If yesterday’s gains had been a couple of hundred points or so, it would suggest that things were slowing down. Such a big jump, however, is still technically volatility. Moving higher gives some relief to battered investors, of course, but it isn’t really a sign of consolidation. If you look at markets other than stocks, however, the picture does look promising. Crude oil, which is more directly affected by expectations for global demand, also bounced. There, the move was exaggerated by things specific to that market’s supply, namely the increasing likelihood that OPEC+ will respond to crude’s collapse with another round of production cuts, but demand expectations are still more optimistic this week than last. Other markets also reacted in a consistent manner. Gold gave back some gains, although that retracement began as early as last Tuesday as traders took profits due to these being the highest levels for the metal since 2011. The dollar, on the other hand, stopped falling but barely bounced at all. Most interestingly of all, the yield on the benchmark U.S. 10-Year Note reacted more like the dollar than the risk assets, stabilizing a bit, but regaining very little of the ground lost last week. Once again, there are factors specific to that market at play here. There had been an almost universal expectation that the Fed will cut rates soon, the question most analysts seem to be asking is whether they do so before or at the FOMC meeting in a couple of weeks (spoiler alert: they did cut rates). That expectation is keeping yields low, but in that context any bounce at all is a positive sign for market sentiment. A restrained move up such as we saw yesterday looks like consolidation, which has a better chance of signaling a change of direction than the still-volatile stock market. The most encouraging sign for stocks came from within. The bounce was led by stocks that had been caught up in the big drop even though there was little direct relationship to the economic impact of the novel coronavirus. Stocks like Netflix (NFLX), for example, could actually benefit if we all stayed home to avoid infection. Apple (AAPL) too was a notable outperformer. There are potential direct issues there, but they are on the supply side, which probably just means temporary weakness in sales and pent up demand that ensures that is made up in the near future. Stocks more directly impacted by the potential for weaker demand, such as American Airlines (AAL) lost ground as everything else bounced. All of this suggests that at least the panic that I pointed to on Friday is beginning to subside, and traders are making rational decisions again. That was the point of that article, that the air of panic itself was a sign that the time to buy was close. That doesn’t necessarily mean that we won’t go lower again, especially given that today is “Super Tuesday” in the Democratic primary race, but it is still a welcome thing for an old-fashioned guy like me who trusts logic more than emotion. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Stocks more directly impacted by the potential for weaker demand, such as American Airlines (AAL) lost ground as everything else bounced. There, the move was exaggerated by things specific to that market’s supply, namely the increasing likelihood that OPEC+ will respond to crude’s collapse with another round of production cuts, but demand expectations are still more optimistic this week than last. Most interestingly of all, the yield on the benchmark U.S. 10-Year Note reacted more like the dollar than the risk assets, stabilizing a bit, but regaining very little of the ground lost last week.
Stocks more directly impacted by the potential for weaker demand, such as American Airlines (AAL) lost ground as everything else bounced. esterday, after a couple of records were broken by stocks dropping last week, there was another record, this time on the positive side. The, Dow Jones Industrial Index had its largest one-day point gain in history, jumping 1,293 points.
Stocks more directly impacted by the potential for weaker demand, such as American Airlines (AAL) lost ground as everything else bounced. There, the move was exaggerated by things specific to that market’s supply, namely the increasing likelihood that OPEC+ will respond to crude’s collapse with another round of production cuts, but demand expectations are still more optimistic this week than last. A restrained move up such as we saw yesterday looks like consolidation, which has a better chance of signaling a change of direction than the still-volatile stock market.
Stocks more directly impacted by the potential for weaker demand, such as American Airlines (AAL) lost ground as everything else bounced. There, the move was exaggerated by things specific to that market’s supply, namely the increasing likelihood that OPEC+ will respond to crude’s collapse with another round of production cuts, but demand expectations are still more optimistic this week than last. The most encouraging sign for stocks came from within.
6211.0
2020-03-03 00:00:00 UTC
Why Shares of Major U.S. Airlines Declined in February
AAL
https://www.nasdaq.com/articles/why-shares-of-major-u.s.-airlines-declined-in-february-2020-03-03
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What happened Shares of the legacy U.S. airlines all lost altitude in February, according to data provided by S&P Global Market Intelligence, caught in the broader COVID-19 coronavirus-related market downdraft. Shares of American Airlines Group (NASDAQ: AAL) traded down 29%, while shares of United Airlines Holdings (NASDAQ: UAL) and Delta Air Lines (NYSE: DAL) each lost more than 17% during the month. So what Although some of the market sell-off over coronavirus was likely fueled by uncertainty, the outbreak will definitely have a significant effect on first quarter results due to canceled flights and lost revenue. The "big three" airlines all canceled flights to China in late January after near-term demand for travel plummeted, and have selectively suspended other routes in response to coronavirus-related fears. Image source: Getty Images. The stocks were hit hard in January due to the fears. What caused the sell-off to accelerate in late February was the spread of the coronavirus into new markets, including the first cases in the United States. Investors fretted that the coronavirus-related headlines would weigh on U.S. consumers as they plan summer vacation travel, potentially depressing demand during the peak summer season. Virus concerns also caused a number of companies to suspend non-essential business travel, eating into a key profit center for these large, legacy airlines. American was hit particularly hard because it is seen as the most vulnerable of the major U.S. airlines to a prolonged travel slowdown. The airline has the highest debt burden among U.S. airlines, and going into 2020 had intended to use profits generated this year to pay down some of that debt. Airline data by YCharts United, meanwhile, is the major U.S. airline with the most exposure to Asia. United gets about 10% of its revenue from Asia and has about 15% of its total capacity tied to the region, compared to 9% for Delta and 6% for American. Delta might not be as big in the region as United, but the company does own a stake in one of the largest Chinese airlines and has targeted its relationship with Korean Air as a source of growth. Now what The markets hate uncertainty, and there is no way to say how aggressively the coronavirus will spread globally or how long it will take to get the outbreak under control. Until there is more clarity, it is going to be difficult for these stocks to take off. That said, there is nothing to date to suggest that the coronavirus outbreak will leave a permanent mark on travel demand. And the airlines, though likely to report weaker earnings in the first half of 2020 if not beyond, are much healthier today than they were the last time there was a downturn and should be able to weather the storm. Airline stocks are a lot cheaper today than they were a month ago. Expect continued volatility, and be selective about what you buy, but for those with the stomach to handle a rough ride in the weeks to come, the February drop-off has created some intriguing buying opportunities. 10 stocks we like better than Delta Air Lines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Delta Air Lines wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman owns shares of Delta Air Lines. The Motley Fool owns shares of and recommends 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.
Shares of American Airlines Group (NASDAQ: AAL) traded down 29%, while shares of United Airlines Holdings (NASDAQ: UAL) and Delta Air Lines (NYSE: DAL) each lost more than 17% during the month. The "big three" airlines all canceled flights to China in late January after near-term demand for travel plummeted, and have selectively suspended other routes in response to coronavirus-related fears. Virus concerns also caused a number of companies to suspend non-essential business travel, eating into a key profit center for these large, legacy airlines.
Shares of American Airlines Group (NASDAQ: AAL) traded down 29%, while shares of United Airlines Holdings (NASDAQ: UAL) and Delta Air Lines (NYSE: DAL) each lost more than 17% during the month. The "big three" airlines all canceled flights to China in late January after near-term demand for travel plummeted, and have selectively suspended other routes in response to coronavirus-related fears. The Motley Fool owns shares of and recommends Delta Air Lines.
Shares of American Airlines Group (NASDAQ: AAL) traded down 29%, while shares of United Airlines Holdings (NASDAQ: UAL) and Delta Air Lines (NYSE: DAL) each lost more than 17% during the month. 10 stocks we like better than Delta Air Lines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman owns shares of Delta Air Lines.
Shares of American Airlines Group (NASDAQ: AAL) traded down 29%, while shares of United Airlines Holdings (NASDAQ: UAL) and Delta Air Lines (NYSE: DAL) each lost more than 17% during the month. So what Although some of the market sell-off over coronavirus was likely fueled by uncertainty, the outbreak will definitely have a significant effect on first quarter results due to canceled flights and lost revenue. That's right -- they think these 10 stocks are even better buys.
6212.0
2020-03-02 00:00:00 UTC
Notable Monday Option Activity: FIVE, AAL, STMP
AAL
https://www.nasdaq.com/articles/notable-monday-option-activity%3A-five-aal-stmp-2020-03-02
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Five Below Inc (Symbol: FIVE), where a total of 9,693 contracts have traded so far, representing approximately 969,300 underlying shares. That amounts to about 91.2% of FIVE's average daily trading volume over the past month of 1.1 million shares. Particularly high volume was seen for the $65 strike put option expiring May 15, 2020, with 760 contracts trading so far today, representing approximately 76,000 underlying shares of FIVE. Below is a chart showing FIVE's trailing twelve month trading history, with the $65 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 117,398 contracts thus far today. That number of contracts represents approximately 11.7 million underlying shares, working out to a sizeable 85.7% of AAL's average daily trading volume over the past month, of 13.7 million shares. Especially high volume was seen for the $10 strike put option expiring April 17, 2020, with 3,493 contracts trading so far today, representing approximately 349,300 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $10 strike highlighted in orange: And Stamps.com Inc. (Symbol: STMP) saw options trading volume of 9,542 contracts, representing approximately 954,200 underlying shares or approximately 82.2% of STMP's average daily trading volume over the past month, of 1.2 million shares. Especially high volume was seen for the $145 strike call option expiring March 06, 2020, with 2,090 contracts trading so far today, representing approximately 209,000 underlying shares of STMP. Below is a chart showing STMP's trailing twelve month trading history, with the $145 strike highlighted in orange: For the various different available expirations for FIVE options, AAL options, or STMP 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.
Especially high volume was seen for the $10 strike put option expiring April 17, 2020, with 3,493 contracts trading so far today, representing approximately 349,300 underlying shares of AAL. Below is a chart showing FIVE's trailing twelve month trading history, with the $65 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 117,398 contracts thus far today. That number of contracts represents approximately 11.7 million underlying shares, working out to a sizeable 85.7% of AAL's average daily trading volume over the past month, of 13.7 million shares.
Especially high volume was seen for the $10 strike put option expiring April 17, 2020, with 3,493 contracts trading so far today, representing approximately 349,300 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $10 strike highlighted in orange: And Stamps.com Inc. (Symbol: STMP) saw options trading volume of 9,542 contracts, representing approximately 954,200 underlying shares or approximately 82.2% of STMP's average daily trading volume over the past month, of 1.2 million shares. Below is a chart showing STMP's trailing twelve month trading history, with the $145 strike highlighted in orange: For the various different available expirations for FIVE options, AAL options, or STMP options, visit StockOptionsChannel.com.
Especially high volume was seen for the $10 strike put option expiring April 17, 2020, with 3,493 contracts trading so far today, representing approximately 349,300 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $10 strike highlighted in orange: And Stamps.com Inc. (Symbol: STMP) saw options trading volume of 9,542 contracts, representing approximately 954,200 underlying shares or approximately 82.2% of STMP's average daily trading volume over the past month, of 1.2 million shares. Below is a chart showing FIVE's trailing twelve month trading history, with the $65 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 117,398 contracts thus far today.
Below is a chart showing AAL's trailing twelve month trading history, with the $10 strike highlighted in orange: And Stamps.com Inc. (Symbol: STMP) saw options trading volume of 9,542 contracts, representing approximately 954,200 underlying shares or approximately 82.2% of STMP's average daily trading volume over the past month, of 1.2 million shares. Below is a chart showing STMP's trailing twelve month trading history, with the $145 strike highlighted in orange: For the various different available expirations for FIVE options, AAL options, or STMP options, visit StockOptionsChannel.com. Below is a chart showing FIVE's trailing twelve month trading history, with the $65 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 117,398 contracts thus far today.
6213.0
2020-03-02 00:00:00 UTC
Why Shares of American Airlines Are Falling Today
AAL
https://www.nasdaq.com/articles/why-shares-of-american-airlines-are-falling-today-2020-03-02
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What happened Shares of airline stocks traded down again on Monday on continued concerns about the impact of the COVID-19 coronavirus outbreak on travel. American Airlines Group (NASDAQ: AAL) continues to get hit particularly hard, down nearly 5% at midday. So what Airlines have been among the sectors hardest hit by coronavirus concerns, as the companies have been forced to suspend service to parts of Asia. The recent spread of the virus into new regions, including confirmed cases and deaths in the United States, have led to concerns about a much broader, and prolonged, impact on the sector. Image source: American Airlines. Cowen analyst Helane Becker on Monday raised the prospect that airlines could be forced to start canceling transatlantic flights or even start drawing down domestic capacity if demand weakens. A growing number of companies are also limiting corporate travel, which is significant because major airlines depend on corporate accounts for much of their profits. Should business travel decline, airlines could attempt to fill seats by offering lower fares. But that would be profit-draining at best and could be difficult if consumer anxiety about the outbreak further cuts into demand. American Airlines shares have fallen faster and harder than those of other airlines because it is considered the most vulnerable to a prolonged slowdown. The airline has the highest debt burden among U.S. carriers, and going into 2020 it had made paying down that debt a priority. With the Boeing 737 MAX grounding affecting operations and now the threat of lower revenue and profits for the year due to health concerns, American's recovery is going to take longer than expected to materialize. Now what With Monday's sell-off, American shares have now fallen more than 37% since Feb. 15. The company now trades at less than 0.3 times sales. Airline data by YCharts American has significant issues, but in all but the worst-case scenario it should have the wherewithal to avoid a bankruptcy filing. It's hard to recommend investors jump into the shares due to the continued virus-related uncertainty and the long-term nature of the airline's turnaround plan, but with each passing day of declines the sell-off is beginning to feel more overdone. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
American Airlines Group (NASDAQ: AAL) continues to get hit particularly hard, down nearly 5% at midday. The recent spread of the virus into new regions, including confirmed cases and deaths in the United States, have led to concerns about a much broader, and prolonged, impact on the sector. With the Boeing 737 MAX grounding affecting operations and now the threat of lower revenue and profits for the year due to health concerns, American's recovery is going to take longer than expected to materialize.
American Airlines Group (NASDAQ: AAL) continues to get hit particularly hard, down nearly 5% at midday. What happened Shares of airline stocks traded down again on Monday on continued concerns about the impact of the COVID-19 coronavirus outbreak on travel. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
American Airlines Group (NASDAQ: AAL) continues to get hit particularly hard, down nearly 5% at midday. What happened Shares of airline stocks traded down again on Monday on continued concerns about the impact of the COVID-19 coronavirus outbreak on travel. American Airlines shares have fallen faster and harder than those of other airlines because it is considered the most vulnerable to a prolonged slowdown.
American Airlines Group (NASDAQ: AAL) continues to get hit particularly hard, down nearly 5% at midday. What happened Shares of airline stocks traded down again on Monday on continued concerns about the impact of the COVID-19 coronavirus outbreak on travel. Now what With Monday's sell-off, American shares have now fallen more than 37% since Feb. 15.
6214.0
2020-03-02 00:00:00 UTC
Nasdaq 100 Movers: SGEN, JD
AAL
https://www.nasdaq.com/articles/nasdaq-100-movers%3A-sgen-jd-2020-03-02
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In early trading on Monday, shares of JD.com, topped the list of the day's best performing components of the Nasdaq 100 index, trading up 7.7%. Year to date, JD.com, registers a 17.7% gain. And the worst performing Nasdaq 100 component thus far on the day is Seattle Genetics, trading down 6.9%. Seattle Genetics is lower by about 7.2% looking at the year to date performance. Two other components making moves today are American Airlines Group, trading down 6.7%, and Costco Wholesale, trading up 6.5% on the day. VIDEO: Nasdaq 100 Movers: SGEN, JD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
And the worst performing Nasdaq 100 component thus far on the day is Seattle Genetics, trading down 6.9%. Seattle Genetics is lower by about 7.2% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: SGEN, JD 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 Monday, shares of JD.com, topped the list of the day's best performing components of the Nasdaq 100 index, trading up 7.7%. And the worst performing Nasdaq 100 component thus far on the day is Seattle Genetics, trading down 6.9%. Seattle Genetics is lower by about 7.2% looking at the year to date performance.
In early trading on Monday, shares of JD.com, topped the list of the day's best performing components of the Nasdaq 100 index, trading up 7.7%. And the worst performing Nasdaq 100 component thus far on the day is Seattle Genetics, trading down 6.9%. Two other components making moves today are American Airlines Group, trading down 6.7%, and Costco Wholesale, trading up 6.5% on the day.
And the worst performing Nasdaq 100 component thus far on the day is Seattle Genetics, trading down 6.9%. Seattle Genetics is lower by about 7.2% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: SGEN, JD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
6215.0
2020-03-02 00:00:00 UTC
Daily Markets: Investors Hoping Central Banks Will Relieve Coronavirus Pressures
AAL
https://www.nasdaq.com/articles/daily-markets%3A-investors-hoping-central-banks-will-relieve-coronavirus-pressures-2020-03
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Today's Big Picture Today's markets are a battle between fear over just how much damage COVID-19 can do to the global economy and hope that fiscal and monetary stimulus will be able to cushion the blow and push shares higher. Can Central Bank liquidity injections affect demand suppressed by contagion fears or repair broken supply chains? Can deficit spending repair and/or replace lost demand? China and Italy will be the firsts test cases. Over the weekend, Italy announced a couple of fiscal measures to help cushion the blow to its economy, more on that later. US investors are waking up to reports the virus has spread to four more states with roughly 90 cases, including one in Manhattan, and two reported deaths. New cases of the virus were announced in Oregon, Rhode Island, Washington state, New York and Florida. Equity markets in Asia today closed mostly in the green despite the massive drop in PMI data coming out of China on hopes of all kinds of policy stimulus because those numbers were just that awful - a case of bad news is good news. China's Shanghai Composite rose 3.2%, Shenzhen Composite 3.8%, Hong Kong's Hang Seng gained 0.8%, South Korea's Kospi rose 0.8%, but Australia's ASX 200 lost 0.8%. Markets in Europe started the day well into positive territory, but by midday started to lose steam in what has become a typical day over the past week. By midday trading, all the major indices had dropped well into the red with the pan-European Stoxx 600 was down 1.5%, Germany's DAX down 1.9%, and Italy's FTSE MIB down 3.5%. US equity futures have ranged from deeply in negative territory to a positive jump at the open with the Dow futures in a range of over 1,000 points. As of around 7:30am EST, all the major indices were pointing to a drop at the open. Data Download On Saturday, we learned that China's National Bureau of Statistics Manufacturing PMI in February fell to a record low 35.7 from the prior 50 and well below expectations for 46. Non-Manufacturing (Services) PMI was even worse at 29.6 from the prior 54.1, leaving the composite at 28.9. Keep in mind that anything under 50 is contraction. The sharp drop in activity was confirmed by the February Caixin China General Manufacturing PMI reading that fell to 40.3 from 51.1 at the start of 2020. These are the kinds of levels one would expect in a financial crisis. By comparison, the IHS Markit Eurozone Manufacturing PMI for the Eurozone rebounded in February vs. January but remained in contraction, registering 49.2. This marked the 13th consecutive month of a reading below the expansion-contraction line of 50.0. The report from IHS Markit also served as a solid reminder of the interconnected global economy: "Manufacturers primarily linked the deterioration in vendor performance to the coronavirus-related factory shutdowns in China." Keep in mind that this report has limited data from the virus. Japan's Jibun bank Manufacturing PMI fell to 47.8 and points to the steepest month of contraction in the manufacturing sector in nearly four years. New Orders fell the most since December 2012, and new export sales fell for the 15th consecutive month. Backlogs of work fell by the most in over seven years. Russia's Markit Manufacturing PMI rose to 48.2 from 47.9 in January - the tenth consecutive month of contraction. The UK's Markit/CIPS Manufacturing saw the biggest increase in factory activity since April 2019 in February, rising to 51.7 from the prior 50. New work saw the biggest gain in 11 months as demand recovered with the reduced political uncertainty around Brexit. Manufacturing continues to be weak in Europe as well, in February: Overall the IHS Markit Manufacturing PMI for the Euro Area rose to 49.2 from 47.9, the thirteenth consecutive month in contraction. Spain's Markit Manufacturing PMI rose to 50.4 (just barely in expansion territory) from 48.5, beating expectations for 49.2 and the first increase in factory activity in nine months. TBD how COVID-19 will change this. Italy's Markit/ADACI Manufacturing PMI fell to 48.7 from 48.9, below expectations for an increase to 49.2. This was the seventeenth consecutive month in contraction. France's Markit Manufacturing fell to 49.8 from 51.1 - the first contraction in seven months. New Orders saw the steepest decline since December 2018. IHS Markit/BME Germany Manufacturing PMI rose to 48 from 45.3 - the thirteenth consecutive month of contraction. Italy's economy grew all of 0.3% in 2019, the slowest since 2014, after a whopping 0.8% in 2018. The next week is critical for Italy as the number of confirmed cases of COVID-19 jumped from 3 on Friday February 21 to 800 last Friday to over 1,600 today. The closure of schools, churches, gyms and museums and the postponement of cultural, civic, and sporting events continues in the regions most affected. Guidelines have been issued for restaurants to keep patrons a set distance apart. Bars cannot have clientele gather at the "bar," but must sit at tables set specified distance apart. Reports out of Milan are warning that hospitals are running out of beds. Italy is expected to ask the EU for leeway over its budget deficit as it copes with the economic impact of the semi-shutdown. Friday, the government announced an aid package of around €900 million euros to help the worst-affected regions. Sunday, the Economy Minister announced additional €3.6 billion stimulus measures, which will include tax credits for companies that have seen their revenue hit 25% or more as well as additional funding for the nation's health services. Countries around the world are watching and waiting to see if Italy's measures are able to slow the spread of the virus. This morning the Organization for Economic Cooperation and Development updated its global GDP outlook to 2.4% for 2020, the weakest pace since 2009 and down from its 2.9% growth forecast in November. The OECD warned that if the virus spreads, global growth could drop as low as 1.5% this year, putting many nations into a recession. OPEC is expected to decide today if the March 5-6 meeting schedule for Vienna will go ahead. If the meeting is postponed, due to fears around COVID-19, it will be the first time the 60-year-old group has canceled/postponed a session due to external events. Later this morning, the February data from IHS Markit continues with the US Manufacturing PMI, which will be followed by the February ISM Manufacturing Index and January Construction reports. Stocks to Watch Shares of JD.com (JD) are trading higher this morning following quarterly results that handily beat expectations. Helping lift the shares is the guidance offered by the company calling for "net revenues for the first quarter of 2020 are expected to grow at least 10% compared with the first quarter of 2019." This would suggest the company is able to shrug off the coronavirus; however, reading the fine lines of JD's guidance, we find the forecast could "change in light of uncertainties related to how COVID-19 develops. We suspect this puts and takes in this guidance will be a key topic on the company's earnings conference call this morning. NXP Semiconductor (NXPI) updated its guidance for the current quarter and sees the impact of the coronavirus hitting its top line by $50-$150 million vs. its February 3 revenue guidance of $2.195-$2.255 billion. In revising its outlook, the company shared, "What we have seen is lower than expected sell-through and order push-outs in both our distribution channel and with direct customers." We suspect this announcement made by NXP will hardly be the lone one to be had this week. Over the weekend, United Airlines (UAL) Chief Executive Oscar Munoz shared the company will likely need to cut additional flights given sagging demand related to the coronavirus outbreak. Delta Air Lines (DAL) on Sunday announced it is suspending flights to Milan until early May. American Airlines (AAL) said it is suspending Milan flights through April 24. IHS Markit (INFO) announced the cancellation of several large customer events in the current quarter, which will impact its quarterly revenue by $50 million and its EPS for the quarter by $0.09. A list of the canceled events can be found here. Also, over the weekend, the Macau Gaming Inspection and Coordination Bureau reported February gross revenue fell 87% year over year to HKD 3.1 billion. Companies to feel the bite of this data include Wynn Resorts (WYNN), Las Vegas Sands (LVS), and MGM Resorts (MGM). February sales fell 13% across the globe for Hyundai Motor (HYMLF) to 275,044 vehicles as the coronavirus sapped demand and hit the company's China supply chain. Hyundai also shared it closed a factory in South Korea last Friday after a worker tested positive for the virus. After a worker tested positive for the coronavirus, Samsung Electronics (SSNLF) and LG Innotek (011070) have shut their respective factories in South Korea. Footwear and athletic apparel company Nike (NKE) announced it will close its European headquarters today and tomorrow after an employee tested positive for the coronavirus. Following reports that it is exploring strategic options ranging from asset sales to mergers, mobile infrastructure, and IP licensing company Nokia (NOK) announced it Board has appointed Pekka Lundmark as President and Chief Executive Officer effective September 1, 2020. Given current stock market conditions, Warner Music (WMGC), the world's third-largest music recording label, and shoemaker Cole Haan (CLHN) have put their respective IPO offerings on hold. WillScot Corporation (WSC) and Mobile Mini (MINI) announced they have entered into a definitive merger agreement with WillScot, a leading specialty rental services provider of innovative modular space and portable storage solutions across North America, combining with Mobile Mini, a leading provider of portable storage solutions serving customers in the U.S., U.K., and Canada. Mobile Mini stockholders will receive 2.4050 shares of WillScot common stock for each share of Mobile Mini common stock in an all-stock merger of equals transaction. Gilead (GILD) has entered into a definitive agreement to acquire clinical-stage immuno-oncology company Forty Seven (FTSV) for $95.50 per share in cash. Reports suggest activist investor Elliott Management is seeking to replace Twitter (TWTR) CEO Jack Dorsey and has nominated four directors to Twitter's board. After US equity markets close today, investors will be digging through a number of earnings reports, including those from Allscripts Healthcare (MDRX), Inter Parfums (IPAR), Livongo Health (LVGO), and Tilray (TLRY). For more details on those and other upcoming earnings reports, we suggest visiting Nasdaq's earnings calendar page. On the Horizon Upcoming IPOs: Genetics medicines company Passage Bio (PASG) is looking to price $7.4 million shares in the range of $16-$18. Environmental services company GFL Environmental (GFL) targets 73.2 million shares in the range of $20-$21. For a complete list of upcoming IPOs by month, please visit the Nasdaq IPO Calendar. Dates to mark: March 3: Prior to the market open, Gardner Denver (GDI) will replace Cimarex (XEC) in the S&P 500, and Cimarex Energy will replace Chesapeake Energy (CHK) in the S&P MidCap 400 March 3: 2020 Presidential Election Super Tuesday March 5-6: OPEC meeting March 12: European Central Bank rate decision March 17-18: Federal Reserve FOMC meeting April 28-29: Federal Reserve FOMC meeting April 30: European Central Bank rate decision May 12-14: Google I/O Developer Conference May 25: US stock market closed for Memorial Day Thoughts for the Day "It would be interesting to find out what goes on in that moment when someone looks at you and comes to all sorts of conclusions." ~ Malcolm Gladwell Disclosures Nike (NKE) is a constituent in Tematica Research's 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.
American Airlines (AAL) said it is suspending Milan flights through April 24. The report from IHS Markit also served as a solid reminder of the interconnected global economy: "Manufacturers primarily linked the deterioration in vendor performance to the coronavirus-related factory shutdowns in China." Following reports that it is exploring strategic options ranging from asset sales to mergers, mobile infrastructure, and IP licensing company Nokia (NOK) announced it Board has appointed Pekka Lundmark as President and Chief Executive Officer effective September 1, 2020.
American Airlines (AAL) said it is suspending Milan flights through April 24. WillScot Corporation (WSC) and Mobile Mini (MINI) announced they have entered into a definitive merger agreement with WillScot, a leading specialty rental services provider of innovative modular space and portable storage solutions across North America, combining with Mobile Mini, a leading provider of portable storage solutions serving customers in the U.S., U.K., and Canada. For more details on those and other upcoming earnings reports, we suggest visiting Nasdaq's earnings calendar page.
American Airlines (AAL) said it is suspending Milan flights through April 24. Manufacturing continues to be weak in Europe as well, in February: Overall the IHS Markit Manufacturing PMI for the Euro Area rose to 49.2 from 47.9, the thirteenth consecutive month in contraction. Later this morning, the February data from IHS Markit continues with the US Manufacturing PMI, which will be followed by the February ISM Manufacturing Index and January Construction reports.
American Airlines (AAL) said it is suspending Milan flights through April 24. Japan's Jibun bank Manufacturing PMI fell to 47.8 and points to the steepest month of contraction in the manufacturing sector in nearly four years. Manufacturing continues to be weak in Europe as well, in February: Overall the IHS Markit Manufacturing PMI for the Euro Area rose to 49.2 from 47.9, the thirteenth consecutive month in contraction.
6216.0
2020-02-28 00:00:00 UTC
First Week of April 9th Options Trading For American Airlines Group (AAL)
AAL
https://www.nasdaq.com/articles/first-week-of-april-9th-options-trading-for-american-airlines-group-aal-2020-02-28
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the April 9th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new April 9th contracts and identified one put and one call contract of particular interest. The put contract at the $19.50 strike price has a current bid of $2.00. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $19.50, but will also collect the premium, putting the cost basis of the shares at $17.50 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $19.95/share today. Because the $19.50 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 59%. 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 10.26% return on the cash commitment, or 91.40% 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 $19.50 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $20.50 strike price has a current bid of $1.97. If an investor was to purchase shares of AAL stock at the current price level of $19.95/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $20.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 12.63% if the stock gets called away at the April 9th 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 $20.50 strike highlighted in red: Considering the fact that the $20.50 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 56%. 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 9.87% boost of extra return to the investor, or 88.00% annualized, which we refer to as the YieldBoost. The implied volatility in the put contract example is 97%, while the implied volatility in the call contract example is 91%. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $19.95) to be 38%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com. Top YieldBoost Calls of the Nasdaq 100 » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 $20.50 strike highlighted in red: Considering the fact that the $20.50 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the April 9th expiration.
Below is a chart showing AAL's trailing twelve month trading history, with the $20.50 strike highlighted in red: Considering the fact that the $20.50 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the April 9th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new April 9th 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 $20.50 strike highlighted in red: Considering the fact that the $20.50 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the April 9th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new April 9th 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 April 9th 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 $20.50 strike highlighted in red: Considering the fact that the $20.50 strike represents an approximate 3% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options begin trading this week, for the April 9th expiration.
6217.0
2020-02-27 00:00:00 UTC
Why Airline Shares Are Down Today
AAL
https://www.nasdaq.com/articles/why-airline-shares-are-down-today-2020-02-27
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What happened Shares of American Airlines Group (NASDAQ: AAL) fell more than 9% on Thursday morning, and shares of Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) each fell more than 6%, on continued coronavirus worries. Investors have been concerned for weeks that the virus would impact travel plans, and Wall Street analysts are beginning to try to get a sense of the damage done to the businesses. So what Airline stocks are a natural target for a coronavirus-related sell-off, with companies sure to see revenue declines in the first quarter due to cancelled flights. The more recent concern is that the spread of the virus into new regions would stunt global demand, and might weigh heavy on the minds of U.S. consumers as they book summer vacation travel. On Thursday a number of airline stocks were downgraded by Deutsche Bank and Buckingham due to coronavirus concerns. Deutsche Bank analyst Michael Linenberg said that there is an increasing risk the coronavirus will impact travel patterns in the U.S., affecting peak travel periods including spring break, Easter, and summer. It could also impact business travelers, which tends to be a more lucrative business for airlines. Image source: Getty Images. Buckingham analyst Daniel McKenzie said his firm's booking survey found a "near-collapse" of demand to Asia, and worried recent warnings by the Centers for Disease Control and Prevention were likely to impact U.S. travel. McKenzie said he initially had expected airline stocks to fall 10% to 15% further, but the pullback could be stronger and for longer than he had assumed. American is under particular pressure because the company is seen as the most vulnerable major U.S. carrier to a prolonged slowdown in travel demand. American has the highest debt burden among U.S. airlines, and had intended to use 2020 profits to accelerate debt payments. Shares of American have now lost more than one-third of their value in the last two weeks. Delta, meanwhile, has substantial exposure to Asia and owns a stake in one of China's top airlines, while Southwest is closely tied to U.S. leisure travel and is likely to feel a pinch if spring break travel is curtailed. Now what For the airlines, the question isn't whether the coronavirus will impact operations, it is how much they will impact and for how long. What had initially been seen as a first-quarter issue now appears likely to spread into the second and third quarters as well, and the total revenue hit is not yet quantifiable. That sort of uncertainty understandably has sparked a sell-off, but for those with a long-term horizon and the stomach to ride through turbulence, the downdraft is likely to create some buying opportunities. Investors should trade carefully and be willing to accept more down days in the near future, but the airline industry is likely to fly through these headwinds eventually. 10 stocks we like better than Southwest Airlines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Southwest Airlines wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman owns shares of Delta Air Lines. The Motley Fool owns shares of and 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.
What happened Shares of American Airlines Group (NASDAQ: AAL) fell more than 9% on Thursday morning, and shares of Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) each fell more than 6%, on continued coronavirus worries. The more recent concern is that the spread of the virus into new regions would stunt global demand, and might weigh heavy on the minds of U.S. consumers as they book summer vacation travel. Buckingham analyst Daniel McKenzie said his firm's booking survey found a "near-collapse" of demand to Asia, and worried recent warnings by the Centers for Disease Control and Prevention were likely to impact U.S. travel.
What happened Shares of American Airlines Group (NASDAQ: AAL) fell more than 9% on Thursday morning, and shares of Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) each fell more than 6%, on continued coronavirus worries. On Thursday a number of airline stocks were downgraded by Deutsche Bank and Buckingham due to coronavirus concerns. The Motley Fool owns shares of and recommends Delta Air Lines and Southwest Airlines.
What happened Shares of American Airlines Group (NASDAQ: AAL) fell more than 9% on Thursday morning, and shares of Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) each fell more than 6%, on continued coronavirus worries. Delta, meanwhile, has substantial exposure to Asia and owns a stake in one of China's top airlines, while Southwest is closely tied to U.S. leisure travel and is likely to feel a pinch if spring break travel is curtailed. 10 stocks we like better than Southwest Airlines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
What happened Shares of American Airlines Group (NASDAQ: AAL) fell more than 9% on Thursday morning, and shares of Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) each fell more than 6%, on continued coronavirus worries. Investors have been concerned for weeks that the virus would impact travel plans, and Wall Street analysts are beginning to try to get a sense of the damage done to the businesses. That's right -- they think these 10 stocks are even better buys.
6218.0
2020-02-27 00:00:00 UTC
First Week of AAL April 17th Options Trading
AAL
https://www.nasdaq.com/articles/first-week-of-aal-april-17th-options-trading-2020-02-27
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available this week, for the April 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new April 17th contracts and identified one put and one call contract of particular interest. The put contract at the $19.00 strike price has a current bid of $1.88. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $19.00, but will also collect the premium, putting the cost basis of the shares at $17.12 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $20.12/share today. Because the $19.00 strike represents an approximate 6% 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 69%. 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 9.89% return on the cash commitment, or 72.29% 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 $19.00 strike is located relative to that history: Turning to the calls side of the option chain, the call contract at the $28.00 strike price has a current bid of 30 cents. If an investor was to purchase shares of AAL stock at the current price level of $20.12/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $28.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 40.66% if the stock gets called away at the April 17th 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 $28.00 strike highlighted in red: Considering the fact that the $28.00 strike represents an approximate 39% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.49% boost of extra return to the investor, or 10.89% annualized, which we refer to as the YieldBoost. The implied volatility in the put contract example is 86%, while the implied volatility in the call contract example is 72%. Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $20.12) to be 39%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com. Top YieldBoost Calls of the Nasdaq 100 » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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 $28.00 strike highlighted in red: Considering the fact that the $28.00 strike represents an approximate 39% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available this week, for the April 17th expiration.
Below is a chart showing AAL's trailing twelve month trading history, with the $28.00 strike highlighted in red: Considering the fact that the $28.00 strike represents an approximate 39% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available this week, for the April 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new April 17th 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 $28.00 strike highlighted in red: Considering the fact that the $28.00 strike represents an approximate 39% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available this week, for the April 17th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AAL options chain for the new April 17th 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 April 17th 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 $28.00 strike highlighted in red: Considering the fact that the $28.00 strike represents an approximate 39% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available this week, for the April 17th expiration.
6219.0
2020-02-27 00:00:00 UTC
Nasdaq 100 Movers: AAL, GILD
AAL
https://www.nasdaq.com/articles/nasdaq-100-movers%3A-aal-gild-2020-02-27
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In early trading on Thursday, shares of Gilead Sciences topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.6%. Year to date, Gilead Sciences registers a 16.8% gain. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 9.1%. American Airlines Group is lower by about 29.3% looking at the year to date performance. Two other components making moves today are Tesla, trading down 8.2%, and Netflix, trading up 1.1% on the day. VIDEO: Nasdaq 100 Movers: AAL, GILD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
VIDEO: Nasdaq 100 Movers: AAL, GILD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 9.1%. American Airlines Group is lower by about 29.3% looking at the year to date performance.
VIDEO: Nasdaq 100 Movers: AAL, GILD 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, Gilead Sciences registers a 16.8% gain. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 9.1%.
VIDEO: Nasdaq 100 Movers: AAL, GILD 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 Thursday, shares of Gilead Sciences topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.6%. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 9.1%.
VIDEO: Nasdaq 100 Movers: AAL, GILD 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 Thursday, shares of Gilead Sciences topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.6%. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 9.1%.
6220.0
2020-02-26 00:00:00 UTC
Can Southwest Airlines Overcome Its Capacity Crunch To Grow Revenues In 2020?
AAL
https://www.nasdaq.com/articles/can-southwest-airlines-overcome-its-capacity-crunch-to-grow-revenues-in-2020-2020-02-27
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After facing a capacity shortage for most of 2019 due to the grounding of 34 Boeing MAX 8 aircraft, Southwest Airlines (NYSE: LUV) hopes to be able to return these planes to service during the latter half of the year. As the company’s capacity growth plan only includes the Boeing MAX series, the uncertainty surrounding this aircraft is likely to result in another year of capacity crunch for the low-cost airline. Despite this imminent headwind, Trefis expects Southwest Airlines’ Revenues to grow by 3% to $23 billion in 2020, assisted by a higher occupancy rate and rising airfares. In this article, we take a quick look at key operational parameters driving the company’s top line and our expectations for 2020. A Quick Look at Southwest Airlines’ Revenues Southwest Airlines’ reported $22.4 billion in Total Revenues for full-year 2019. It includes three revenue streams: Passenger Revenue: $20.7 billion in FY2019 (93% of Total Revenues). It represents income from the sale of air tickets and other ancillary offerings for the company’s mainline and affiliate carriers. If a ticket is sold and travel is yet to happen, the company recognizes income from such tickets as air traffic liability. Due to the complex structure of ticket pricing, cancellation, and rescheduling, a certain portion of the liability is recognized as passenger revenues based on recognized historical patterns. Cargo Revenue: $172 million in FY2019 (1% of Total Revenues). It represents income freight and mail services. Other Revenue: $1.5 billion in FY2019 (6% of Total Revenues). It comprises of the sale of loyalty points to credit card companies. [A] Southwest Airlines’ capacity likely to remain flat in 2020 Before the grounding of MAX, Southwest had planned to expand its fleet size from 750 to 775 aircraft in 2019 (after retiring Boeing 737-700s and adding MAX 8s). However, the company ended FY2019 with a total of 747 aircraft (including the grounded MAX 8s) in its fleet, resulting in a 1.6% decline in available seat miles. In 2020, the company expects to expand its fleet size by just 11 additional aircraft, which includes delivery of 27 new MAX 8s and retiring of 16 737-700. Keeping the slow growth in fleet size in mind, we expect Southwest’s available seat miles to remain relatively flat for the full year 2020. For forecasting, Trefis recognizes available seat miles as an airline’s total capacity, which refers to the number of seats available for passengers multiplied by the number of miles flown. [B] Occupancy rate likely to grow Historically, Southwest Airlines’ average occupancy rate has remained relatively stable at around 83.5%. As a variation in flight schedule impacts airline’s capacity (i.e., available seat miles), we do not expect a significant shift in occupancy rate due to supply-side factors. However, considering the overall shortage in capacity across the industry due to the MAX groundings, we expect Southwest’s average occupancy rate to increase by 0.5% to 84% in 2020. [C] Passenger yield primarily dependent on fuel prices Passenger yield refers to the average fare one passenger pays to fly one mile and is impacted by fuel prices, demand, and competitive environment. Consistent with the company’s guidance of $2.00-$2.10 of fuel cost per gallon for the full year (which includes targeted improvement in aircraft efficiency and the impact of fuel hedges), we expect Southwest’s passenger yield to grow by 2% in 2020. Taking all these factors into account, we expect Southwest Airlines’ Revenues to grow from $22.4 billion in 2019 to $23 billion for the current year. See all Trefis Price Estimates and Download Trefis Data here What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
After facing a capacity shortage for most of 2019 due to the grounding of 34 Boeing MAX 8 aircraft, Southwest Airlines (NYSE: LUV) hopes to be able to return these planes to service during the latter half of the year. Despite this imminent headwind, Trefis expects Southwest Airlines’ Revenues to grow by 3% to $23 billion in 2020, assisted by a higher occupancy rate and rising airfares. As a variation in flight schedule impacts airline’s capacity (i.e., available seat miles), we do not expect a significant shift in occupancy rate due to supply-side factors.
[A] Southwest Airlines’ capacity likely to remain flat in 2020 Before the grounding of MAX, Southwest had planned to expand its fleet size from 750 to 775 aircraft in 2019 (after retiring Boeing 737-700s and adding MAX 8s). For forecasting, Trefis recognizes available seat miles as an airline’s total capacity, which refers to the number of seats available for passengers multiplied by the number of miles flown. [B] Occupancy rate likely to grow Historically, Southwest Airlines’ average occupancy rate has remained relatively stable at around 83.5%.
A Quick Look at Southwest Airlines’ Revenues Southwest Airlines’ reported $22.4 billion in Total Revenues for full-year 2019. It includes three revenue streams: Passenger Revenue: $20.7 billion in FY2019 (93% of Total Revenues). [A] Southwest Airlines’ capacity likely to remain flat in 2020 Before the grounding of MAX, Southwest had planned to expand its fleet size from 750 to 775 aircraft in 2019 (after retiring Boeing 737-700s and adding MAX 8s).
Despite this imminent headwind, Trefis expects Southwest Airlines’ Revenues to grow by 3% to $23 billion in 2020, assisted by a higher occupancy rate and rising airfares. A Quick Look at Southwest Airlines’ Revenues Southwest Airlines’ reported $22.4 billion in Total Revenues for full-year 2019. It represents income from the sale of air tickets and other ancillary offerings for the company’s mainline and affiliate carriers.
6221.0
2020-02-26 00:00:00 UTC
Is This the Week Warren Buffett Finally Pulls Out His Checkbook?
AAL
https://www.nasdaq.com/articles/is-this-the-week-warren-buffett-finally-pulls-out-his-checkbook-2020-02-26
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"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." -- Warren Buffett That quote is not only one of Warren Buffett's best-known aphorisms, but it's also the mantra that has guided his investing strategy over much of his career. The Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) chief has long been opportunistic with his stock purchases and investments, taking advantage of the 2008-09 financial crisis, for example, to scoop up preferred stock in Goldman Sachs and Bank of America in the years following, when the giant lenders were still ailing from the Great Recession. However, as the current bull market has now extended to more than a decade, Buffett has grown weary of chasing overpriced stocks and businesses in search of a worthy deal. Image source: Motley Fool. Many times, Buffett has lamented the high valuations of a business he'd like to acquire. In his 2018 letter to shareholders, Buffett wrote, "Prices are sky-high for businesses possessing decent long-term prospects," though he added that the prospect of an "elephant-sized acquisition" sent his heart racing. In the recently released 2019 letter, he said, "The opportunities to make major acquisitions possessing our required attributes are rare." While Buffett has bided his time waiting for the perfect opportunity, Berkshire's cash hoard has reached record levels, sitting at $128 billion in cash and marketable securities at the end of 2019. With that kind of dough, he could buy nearly every American company outright, publicly traded or not. Lately, with various exchanges reeling over novel coronavirus fears, Buffett may be presented with an opportunity to go elephant hunting and make his first sizeable acquisition in years. It looks like a classic case of being greedy when others are fearful. With the S&P 500 down 6.3% in just two trading sessions, now seems like an opportune time for Buffett to pull out his checkbook and make a deal. Buffett's thoughts on the coronavirus In an interview with CNBC on Monday, Buffett said that he had noticed an impact on Berkshire's businesses from the novel coronavirus (officially known as COVID-19) outbreak, saying that performance was a little softer than six months ago. However, he encouraged investors not to buy or sell stocks based on news of the virus, saying they should think of them as businesses. You don't buy and sell a business based on short-term news, he argued. Characteristically, Buffett also expressed optimism about the American economy, saying that 20 or 30 years from now, American business and probably the world will be far better off than it is today. He didn't disguise his pleasure at stocks falling, saying that lower stock prices are good for Berkshire, a net buyer of stocks. One sector potentially primed for a targeted acquisition In his annual letter to shareholders, Buffett said that though Berkshire would prefer whole takeovers of companies, it's been easier to buy stocks. He expected that strategy to continue, with the company making equity investments rather than full-on acquisitions. However, there's one sector that could be ripe for a Buffett-backed acquisition after the recent sell-off, and one in which he's already made several stock purchases in recent years: airlines. Though Buffett once hated the airline industry, in recent years he's become a fan, as airlines now deliver solid profits after a wave of consolidation and trade at relatively cheap valuations. Berkshire now owns significant shares in all four major domestic carriers: United Continental Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest (NYSE: LUV). Back in 2018, Buffett said he was even considering buying an entire airline. If Buffett liked airlines two years ago, the industry looks even more appealing today in terms of stock prices. Here's how those four stocks have performed since he made those comments two years ago, and in the last week as coronavirus fears have spread. ^SPX data by YCharts ^SPX data by YCharts As you can see, all four stocks have underperformed the S&P 500 in both time intervals, and all four have plunged over the last week, as coronavirus fears have hit the travel sector especially hard. Some airlines have suspended flights to China, and United pulled its full-year guidance due to the outbreak. With his long-term focus and optimistic outlook, Buffett seems like just the kind of investor who would capitalize on the sell-off. We don't know what will happen with the coronavirus outbreak or the market's reaction to it. The sell-off certainly could get worse and the CDC warned on Tuesday that the spread of the virus in the U.S. was inevitable, with one official saying, "This could be bad." If the market continues to swoon, however, Buffett is likely to seize the opportunity. While there's no way of knowing if he will bag one of his prized elephants, he's likely to hit the buy button in one way or another. 10 stocks we like better than Berkshire Hathaway (A shares) When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway (A shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, and Southwest Airlines and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short March 2020 $225 calls on Berkshire Hathaway (B shares). 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.
Berkshire now owns significant shares in all four major domestic carriers: United Continental Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest (NYSE: LUV). However, as the current bull market has now extended to more than a decade, Buffett has grown weary of chasing overpriced stocks and businesses in search of a worthy deal. Lately, with various exchanges reeling over novel coronavirus fears, Buffett may be presented with an opportunity to go elephant hunting and make his first sizeable acquisition in years.
Berkshire now owns significant shares in all four major domestic carriers: United Continental Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest (NYSE: LUV). In his 2018 letter to shareholders, Buffett wrote, "Prices are sky-high for businesses possessing decent long-term prospects," though he added that the prospect of an "elephant-sized acquisition" sent his heart racing. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, and Southwest Airlines and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short March 2020 $225 calls on Berkshire Hathaway (B shares).
Berkshire now owns significant shares in all four major domestic carriers: United Continental Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest (NYSE: LUV). Buffett's thoughts on the coronavirus In an interview with CNBC on Monday, Buffett said that he had noticed an impact on Berkshire's businesses from the novel coronavirus (officially known as COVID-19) outbreak, saying that performance was a little softer than six months ago. He didn't disguise his pleasure at stocks falling, saying that lower stock prices are good for Berkshire, a net buyer of stocks.
Berkshire now owns significant shares in all four major domestic carriers: United Continental Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest (NYSE: LUV). With the S&P 500 down 6.3% in just two trading sessions, now seems like an opportune time for Buffett to pull out his checkbook and make a deal. Here's how those four stocks have performed since he made those comments two years ago, and in the last week as coronavirus fears have spread.
6222.0
2020-02-25 00:00:00 UTC
American Airlines Group Enters Oversold Territory (AAL)
AAL
https://www.nasdaq.com/articles/american-airlines-group-enters-oversold-territory-aal-2020-02-25
nan
nan
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30. In trading on Tuesday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.4, after changing hands as low as $23.05 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 29.6. A bullish investor could look at AAL's 28.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $23.05 per share, with $36.725 as the 52 week high point — that compares with a last trade of $23.12. Find out what 9 other oversold stocks you need to know about » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
In trading on Tuesday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.4, after changing hands as low as $23.05 per share. A bullish investor could look at AAL's 28.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $23.05 per share, with $36.725 as the 52 week high point — that compares with a last trade of $23.12.
A bullish investor could look at AAL's 28.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $23.05 per share, with $36.725 as the 52 week high point — that compares with a last trade of $23.12. In trading on Tuesday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.4, after changing hands as low as $23.05 per share.
In trading on Tuesday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.4, after changing hands as low as $23.05 per share. A bullish investor could look at AAL's 28.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $23.05 per share, with $36.725 as the 52 week high point — that compares with a last trade of $23.12.
In trading on Tuesday, shares of American Airlines Group Inc (Symbol: AAL) entered into oversold territory, hitting an RSI reading of 28.4, after changing hands as low as $23.05 per share. A bullish investor could look at AAL's 28.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of AAL shares: Looking at the chart above, AAL's low point in its 52 week range is $23.05 per share, with $36.725 as the 52 week high point — that compares with a last trade of $23.12.
6223.0
2020-02-25 00:00:00 UTC
Why Shares of American Airlines Are Down Today
AAL
https://www.nasdaq.com/articles/why-shares-of-american-airlines-are-down-today-2020-02-25
nan
nan
What happened Shares of American Airlines Group (NASDAQ: AAL) fell another 5% on Tuesday, continuing a difficult week for the airline stock. On Tuesday afternoon, American shares traded at their lowest level since the company emerged from bankruptcy in 2013 as investors continue to fret about growing threat posed by the coronavirus. So what American Airlines actually has less exposure to China and Asia than rivals Delta Air Lines and United Holdings, but as the virus has spread globally it is American that is increasingly in investors' crosshairs. Shares of American are down 11% so far in February, compared to Delta's 7% decline and United's 4% drop. An American Airlines 737 in flight. Image source: American Airlines. Shares of American are coming under increased pressure because the company is seen as the most vulnerable among major U.S. carriers to a prolonged slowdown in travel demand. American has the highest debt burden among U.S. airlines, and had intended to use 2020 profits to accelerate debt payments. The virus' rapid spread in Europe and elsewhere in recent days has generated frightening headlines, and put U.S. and other western officials on alert. U.S. Health and Human Services Secretary Alex Azar said on Tuesday there will likely be more coronavirus cases in the U.S., and the Centers for Disease Control put out a report outlining what schools and businesses would likely need to do if a coronavirus outbreak occurred in the U.S. These headlines come at a time of year when U.S. households are typically making summer vacation plans. Investors are worried that the uncertainty will stifle summer travel demand, eating into airline profits. Now what American might be trading at near post-bankruptcy levels, but this is a far healthier company than it was a decade ago. The economic impact of the coronavirus is likely to be substantial, but American Airlines has the balance-sheet strength to weather what is likely ahead. That said, the potential for a depressed peak summer travel season and American's continued Boeing 737 MAX headwinds will make it more difficult for the company to push forward with its recovery in 2020. Current investors who can handle the turbulence should hold tight but given the uncertainty and the long journey ahead there isn't a compelling reason to climb on board right now. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman owns shares of Delta Air Lines. The Motley Fool owns shares of and recommends 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.
What happened Shares of American Airlines Group (NASDAQ: AAL) fell another 5% on Tuesday, continuing a difficult week for the airline stock. On Tuesday afternoon, American shares traded at their lowest level since the company emerged from bankruptcy in 2013 as investors continue to fret about growing threat posed by the coronavirus. That said, the potential for a depressed peak summer travel season and American's continued Boeing 737 MAX headwinds will make it more difficult for the company to push forward with its recovery in 2020.
What happened Shares of American Airlines Group (NASDAQ: AAL) fell another 5% on Tuesday, continuing a difficult week for the airline stock. So what American Airlines actually has less exposure to China and Asia than rivals Delta Air Lines and United Holdings, but as the virus has spread globally it is American that is increasingly in investors' crosshairs. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.
What happened Shares of American Airlines Group (NASDAQ: AAL) fell another 5% on Tuesday, continuing a difficult week for the airline stock. So what American Airlines actually has less exposure to China and Asia than rivals Delta Air Lines and United Holdings, but as the virus has spread globally it is American that is increasingly in investors' crosshairs. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
What happened Shares of American Airlines Group (NASDAQ: AAL) fell another 5% on Tuesday, continuing a difficult week for the airline stock. So what American Airlines actually has less exposure to China and Asia than rivals Delta Air Lines and United Holdings, but as the virus has spread globally it is American that is increasingly in investors' crosshairs. Investors are worried that the uncertainty will stifle summer travel demand, eating into airline profits.
6224.0
2020-02-25 00:00:00 UTC
New 52-Week Low Could Prompt More Insider Buying At AAL
AAL
https://www.nasdaq.com/articles/new-52-week-low-could-prompt-more-insider-buying-at-aal-2020-02-25
nan
nan
In trading on Tuesday, shares of American Airlines Group Inc (Symbol: AAL) touched a new 52-week low of $24.00/share. That's a $12.73 share price drop, or -34.66% decline from the 52-week high of $36.73 set back on 02/26/2019. Large percentage drops always require that the stock post even larger percentage gains from the low in order to recover the old price point, and for AAL that means the stock would have to gain 53.04% to get back to the 52-week high. For a move like that, American Airlines Group Inc would need fundamental strength at the business level. Here's a rhetorical question: Who knows more about fundamentals at the business level than the company's own insiders? So let's take a look to see whether any company insiders were taking the other side of the trade as AAL shares were being sold down to this new 52-week low, focusing on the most recent trailing six month period. As summarized by the table below, AAL has seen 2 different instances of insiders buying over the past six months. PURCHASED INSIDER TITLE SHARES PRICE/SHARE VALUE 08/29/2019 Robert D. Isom Jr. President 2,500 $26.34 $65,844.00 10/28/2019 James F. Albaugh Director 10,000 $31.41 $314,070.00 In the short run, while the new 52-week low suggests the stock is at the cheapest price and perhaps therefore the best bargain it has been over the last 52 weeks, the low print also means anyone who has purchased the stock over that timeframe is staring at an unrealized loss. Oftentimes, that factor drives a stock's technical analysis metrics by creating overhead resistance, with investors who bought higher now anxious to reverse their trade once they are back to breakeven. The chart below shows where AAL has traded over the past year, with the 50-day and 200-day moving averages included. Time will tell whether the insider purchases foretell a future rebound for AAL shares, which are presently showing a last trade of $23.93/share, slightly above the new 52-week low. Ten Bargains You Can Buy Cheaper Than The Insiders Did » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
In trading on Tuesday, shares of American Airlines Group Inc (Symbol: AAL) touched a new 52-week low of $24.00/share. Time will tell whether the insider purchases foretell a future rebound for AAL shares, which are presently showing a last trade of $23.93/share, slightly above the new 52-week low. Large percentage drops always require that the stock post even larger percentage gains from the low in order to recover the old price point, and for AAL that means the stock would have to gain 53.04% to get back to the 52-week high.
In trading on Tuesday, shares of American Airlines Group Inc (Symbol: AAL) touched a new 52-week low of $24.00/share. Large percentage drops always require that the stock post even larger percentage gains from the low in order to recover the old price point, and for AAL that means the stock would have to gain 53.04% to get back to the 52-week high. So let's take a look to see whether any company insiders were taking the other side of the trade as AAL shares were being sold down to this new 52-week low, focusing on the most recent trailing six month period.
Large percentage drops always require that the stock post even larger percentage gains from the low in order to recover the old price point, and for AAL that means the stock would have to gain 53.04% to get back to the 52-week high. So let's take a look to see whether any company insiders were taking the other side of the trade as AAL shares were being sold down to this new 52-week low, focusing on the most recent trailing six month period. In trading on Tuesday, shares of American Airlines Group Inc (Symbol: AAL) touched a new 52-week low of $24.00/share.
Large percentage drops always require that the stock post even larger percentage gains from the low in order to recover the old price point, and for AAL that means the stock would have to gain 53.04% to get back to the 52-week high. The chart below shows where AAL has traded over the past year, with the 50-day and 200-day moving averages included. In trading on Tuesday, shares of American Airlines Group Inc (Symbol: AAL) touched a new 52-week low of $24.00/share.
6225.0
2020-02-25 00:00:00 UTC
Daily Markets: Will Stocks Bounce Back After Coronavirus-Fueled Drop?
AAL
https://www.nasdaq.com/articles/daily-markets%3A-will-stocks-bounce-back-after-coronavirus-fueled-drop-2020-02-25
nan
nan
Today’s Big Picture Following yesterday’s coronavirus-driven hit to global equity markets, the major equity indices in Asia ended today on a mixed, but mostly lower note. Japan’s Nikkei 225 fell 3.3% after having been closed on Monday and the Australian S&P/ASX 200 lost 1.6%. South Korea’s Kospi closed 1.2% higher while China’s Shanghai Composite fell 0.6% but its Shenzhen Composite rose 0.5%. By midday trading today, most of the major European indices were down between 0.5% and 1.0%. Following yesterday's sharp sell-off, US equity futures initially pointed to a larger snapback but have since eroded from those levels. Currently, the major US equity indices point to a slightly positive open, but it's TBD how the market will trade today following comments from the World Health Organization that it isn't clear the coronavirus has been contained. Yesterday the S&P 500 experienced its biggest one-day decline since February of 2018 that left all the major US equity indices in negative territory year to date except for the Nasdaq 100 that finished up 4% YTD. Amid the widespread sell-off, there were pockets of relative strength as investors sought out haven investments that included domestically-focused, inelastic businesses models, as well as companies offering disinfectants and shelf-stable food - for more, see Stocks to Watch below. The safety trade has been strong with the SPDR Gold Shares ETF (GLD) up 9.2% YTD and the iShares 20+ Year Treasury Bond ETF (TLT) up 10.9% YTD. Yesterday front-month gold futures saw the fifth-highest trading volume on record. Interestingly the ETF that tracks gold miners, GDX, has not broken out. What we are seeing in the global markets is investors coming to grips with the widening impact of the coronavirus, which is bringing many uncertainties along with it in terms of the global economy and corporate earnings. What initially looked to be a March quarter, China-centric event is now looking to be a far greater one in terms of scale and scope with global implications. Polling data from DataTrek Research published yesterday indicated that 44% of respondents thought China would contain the coronavirus sometime in the second quarter. However, the firm's findings showed "there is little consensus among our survey takers about a strong Chinese economic rebound in 2H 2020. This may be more of a 2021 story based on what we all know today." The resetting of expectations, be it for the global economy, earnings, or both, tend to be an unsettling process for the stock market, and often takes more than one day to digest. We strongly suspect equity markets will continue to trade day-to-day based on the latest virus-related developments until there is confirmation its outbreak has slowed across the globe on a consistent basis. Data Download Japan’s Leading Economic Index for December rose to 91.6 as expected, from 90.8. The Coincident Index dropped from 94.7 where it was expected to remain. Germany, the largest economy in the Eurozone, saw its final Q4 GDP growth slow to 0.4% YoY as expected, from 0.6% in the prior quarter. The nation’s economy flat-lined at 0% QoQ growth in the final quarter, as expected, from the prior 0.2%. This stalling out occurred well before any impact from the coronavirus could be felt. Business Confidence for France remained at 102 in February instead of falling to 99 as expected. The Business Climate Indicator also remained steady at 105. Mexico’s economy shrank 0.5% YoY in the final quarter of 2019 vs. the expected fall of 0.4% and the 0.3% decline in the September quarter. In terms of US economic data, later today we’ll receive the December reading for the S&P Case-Shiller Home Price Index, the February FHFA Housing Price Index and the February Consumer Confidence Index. This afternoon brings yet another regional Fed manufacturing index, this time from the Richmond Federal Reserve Bank. With investors and the markets grappling with the fallout of the expanding coronavirus, both will likely be taking heed to any monetary policy facing comments made later today during speeches from Fed Vice Chair Clarida and Federal Reserve Bank of Dallas President Kaplan. Yesterday, former Minneapolis Fed President Narayana Kocherlakota published an op-ed arguing the Fed needed to call an “immediate” meeting ahead of its March date and cut rates by at least 25 basis points. Fed fund futures are now pricing in more than 50% probability of a rate cut by the Federal Reserve’s April 29th meeting. Stocks to Watch Home Depot (HD) reported quarterly EPS that beat expectations on revenue that was in-line with the Wall Street consensus. Comparable sales for fiscal 2019 increased 3.5%, and comparable sales in the U.S. increased 3.8%. The company’s 2020 outlook includes sales growing 3.5%-4.0% with comp sales up the same and the opening of six new stores but its EPS guidance of $10.45 is below the $10.55 consensus. In addition, the company shared its Board authorized a 10% increase in its quarterly dividend to $1.50 per share. Macy’s (M) beat quarterly EPS expectations by $0.16 per share on revenue that matched Wall Street forecasts. Before investors break out the party hats, the company also reported its quarterly comparable sales fell 0.6% at company-owned stores during the quarter. The issued inline revenue guidance for the coming year but guided EPS below expectations to $2.20-$2.40 vs. the $2.46 consensus. On the company's earnings conference call to be held this morning, investors will get a better understanding of the holiday quarter, including promotional activity as well as digital sales metrics. In response to the expanding outbreak of the coronavirus, airline stocks ranging from Delta Air Lines (DAL) and American Airlines (AAL) to United Airlines (UAL) and Southwest Airlines (LUV) were hard hit in trading yesterday. After the market close, citing "heightened uncertainty surrounding [the coronavirus] outbreak, its duration, its impact on the overall demand for air travel and the possibility the outbreak spreads to other regions," United Airlines withdrew its 2020 guidance that was issued last month. The company went on to say, "Beyond the first quarter, we believe the range of possible scenarios is too wide to provide earnings guidance at this time." We'd note that as airline stocks have taken it on the chin, shares of Zoom Video Communications (ZM) continued their march higher that began in late January. Shares of Hertz Global (HTZ) dropped 4.4% yesterday after the company reported a revenue miss but an earnings beat after the close. The consensus was for revenue of $2.34 billion (actual was $2.33 billion) with an EPS loss of $0.27 (actual was a loss of $0.24). Carlyle has delayed the initial public offering of its German specialty chemicals group Atotech (ATC), concerned that the virus would negatively impact the valuation. Concerns over the virus's spread led investors to flock to companies offering disinfectants and shelf-stable foods offered by companies including Clorox (CLX), Kimberly-Clark (KMB), Hormel Foods (HRL) and Campbell Soup (CPB). Direct to consumer company Tupperware (TUP) now sees its 2019 EPS in the range of $1.35-$1.70, dramatically below the $2.79 consensus. The company also updated its 2020 EPS outlook revising it significantly lower to $1.16-$1.23 vs. the $2.63 consensus. Intuit shares (INTU) lost as much as 6% yesterday in early trading then reversed slightly more than that loss right after the company reported a beat on both the top and bottom line of $1.7 billion in revenue on EPS of $1.16 compared to expectations for $1.68 billion and $1.02 respectively. The company then offered weak guidance on both revenue and earnings which led to shares falling again, closing extended trading down 1.5%. Shares of Mastercard (MA) were hit after the company warned the coronavirus could hurt its revenue for 2020. According to the company, “Cross-border travel, and to a lesser extent cross-border e-commerce growth, is being impacted by the Coronavirus” and its March quarter revenue will be 2-3 percentage points below its previous guidance. Shares of Moderna (MRNA) jumped in aftermarket trading last night following the news the company shipped the first batch of its mRNA-1273 vaccine against the coronavirus to US government researchers to be used in a planned phase 1 study in the US. Johnson & Johnson (JNJ), Sanofi SA (SNY) and Inovio Pharmaceuticals (INO) have started to develop coronavirus vaccines, with human studies slated to start in the coming quarters. HP (HPQ) reported better than expected quarterly results and boosted its 2020 EPS forecast to $2.33-42.43, up from $2.24-$2.32 and the $2.27 consensus. The company also shared it plans to return roughly $16 billion in capital to shareholders over the 2020-2022 period and it will explore a combination with Xerox (XRX). Shares of measurement company Keysight Technologies (KEYS) jumped higher after the company reported better than expected quarterly results "driven by ongoing strength in 5G-related investments and increased spending in aerospace defense and semiconductor measurement…" For the current quarter, Keysight issued guidance that was in line with expectations. After serving up mixed quarterly results and issued downside guidance for the current quarter, shares of Palo Alto Networks (PANW) fell last night in aftermarket trading. The company now sees its revenue for 2020 in the range of $3.35-$3.39 billion down from the prior $3.44-$3.48 billion and EPS of $4.55-$4.65 down $4.90-$5.00. Shake Shack (SHAK) served investors a hot plate of disappointing guidance after an appetizer of mixed quarterly results that led the shares lower last night. The company's same-shack sales fell 3.6% during the quarter, missing the expected 2.8% decline. Comparable traffic was down 5.4% during the quarter compared to the year-ago one. The company expects 2020 revenue of $712-$720 million vs. the $736 million consensus off a low single-digit drop in Same-Shack sales. Charles Schwab (SCHW) agreed to buy Wasmer, Schroeder & Company, an independent investment manager of fixed income separately managed accounts with $10.5 billion in assets under management. After the closing bell today we will be getting another onslaught of earnings reports from the likes of Alarm.com (ALRM) CoreLogic (CLGX), EnLink Midstream (ENLC), Frontier Communications (FTR), Planet Fitness (PLNT), Public Storage (PSA), Qurate Retail Group (QRTEA), RR Donnelley & Sons (RRD), Virgin Galatic (SPCE) and Unisys (UIS). For more on who is reporting when visit Nasdaq’s earnings calendar page. On the Horizon Upcoming IPOs: Genetics medicines company Passage Bio (PASG) is looking to price $7.4 million shares in the range of $16-$18. For a complete list of upcoming IPOs by month, please visit the Nasdaq IPO Calendar. Dates to mark: March 3: 2020 Presidential Election Super Tuesday March 5-6: OPEC meeting March 12: European Central Bank rate decision March 17-18: Federal Reserve FOMC meeting April 28-29: Federal Reserve FOMC meeting April 30: European Central Bank rate decision May 12-14: Google I/O Developer Conference May 25: US stock market closed for Memorial Day Thoughts for the Day “Be a yardstick of quality. Some people aren’t used to an environment where excellence is expected” ~ Steve Jobs Disclosures Planet Fitness (PLNT) is a constituent in Tematica Research’s Cleaner Living Index. Palo Alto Networks (PAWN) is a constituent in the Foxberry Tematica Research Cybersecurity & Data Privacy Index. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
In response to the expanding outbreak of the coronavirus, airline stocks ranging from Delta Air Lines (DAL) and American Airlines (AAL) to United Airlines (UAL) and Southwest Airlines (LUV) were hard hit in trading yesterday. Amid the widespread sell-off, there were pockets of relative strength as investors sought out haven investments that included domestically-focused, inelastic businesses models, as well as companies offering disinfectants and shelf-stable food - for more, see Stocks to Watch below. With investors and the markets grappling with the fallout of the expanding coronavirus, both will likely be taking heed to any monetary policy facing comments made later today during speeches from Fed Vice Chair Clarida and Federal Reserve Bank of Dallas President Kaplan.
In response to the expanding outbreak of the coronavirus, airline stocks ranging from Delta Air Lines (DAL) and American Airlines (AAL) to United Airlines (UAL) and Southwest Airlines (LUV) were hard hit in trading yesterday. Concerns over the virus's spread led investors to flock to companies offering disinfectants and shelf-stable foods offered by companies including Clorox (CLX), Kimberly-Clark (KMB), Hormel Foods (HRL) and Campbell Soup (CPB). After serving up mixed quarterly results and issued downside guidance for the current quarter, shares of Palo Alto Networks (PANW) fell last night in aftermarket trading.
In response to the expanding outbreak of the coronavirus, airline stocks ranging from Delta Air Lines (DAL) and American Airlines (AAL) to United Airlines (UAL) and Southwest Airlines (LUV) were hard hit in trading yesterday. Intuit shares (INTU) lost as much as 6% yesterday in early trading then reversed slightly more than that loss right after the company reported a beat on both the top and bottom line of $1.7 billion in revenue on EPS of $1.16 compared to expectations for $1.68 billion and $1.02 respectively. Shares of measurement company Keysight Technologies (KEYS) jumped higher after the company reported better than expected quarterly results "driven by ongoing strength in 5G-related investments and increased spending in aerospace defense and semiconductor measurement…" For the current quarter, Keysight issued guidance that was in line with expectations.
In response to the expanding outbreak of the coronavirus, airline stocks ranging from Delta Air Lines (DAL) and American Airlines (AAL) to United Airlines (UAL) and Southwest Airlines (LUV) were hard hit in trading yesterday. The issued inline revenue guidance for the coming year but guided EPS below expectations to $2.20-$2.40 vs. the $2.46 consensus. Shares of Hertz Global (HTZ) dropped 4.4% yesterday after the company reported a revenue miss but an earnings beat after the close.
6226.0
2020-02-24 00:00:00 UTC
Why Shares of Airlines and Vacation Operators Are Falling Today
AAL
https://www.nasdaq.com/articles/why-shares-of-airlines-and-vacation-operators-are-falling-today-2020-02-24
nan
nan
What happened Shares of travel stocks, including airlines and cruise operators, plunged Monday following news over the weekend that the coronavirus is spreading rapidly in countries such as South Korea and Italy. Among airlines, American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and Spirit Airlines (NYSE: SAVE) were hit particularly hard, as were cruise operators Carnival (NYSE: CCL) and Royal Caribbean (NYSE: RCL). Marriott International (NASDAQ: MAR) also fell nearly 5% on worries about what the outbreak will mean for travel and vacation demand. So what The cruise business has been one of the consumer-focused industries hardest-hit by the coronavirus outbreak, with the Carnival-owned Diamond Princess cruise ship quarantined for two weeks in Japan after more than 600 people tested positive for the virus. Those are the sort of headlines and images that can weigh on the minds of travelers planning summer vacations. The cruise operators have already cancelled a number of voyages due to the outbreak and have warned the virus will have a material impact on results. The worry now is that with the outbreak spreading to new markets, additional cruises will have to be cancelled in new areas, including the lucrative summer Mediterranean tourism area. The cruise industry is going to have a hard time maintaining its course. Image source: Getty Images. Airline stocks also were down, continuing a turbulent start to the year for the sector. The industry was hit hard in late January as the coronavirus outbreak worsened, but had made back much of that decline in the early part of February. About 5% of Delta's total revenue and 9% of total capacity is exposed to Asia, and the airline also owns a stake in one of China's largest airlines. American has less exposure to the region, at just 3% of revenue and 6% of capacity, but the airline has the highest debt burden among major U.S. carriers and is seen as most vulnerable to a prolonged slowdown in travel demand. Shares of United Holdings and Hawaiian Airlines, the two U.S. carriers with the most exposure to the Asia Pacific region, were also down on Monday. Spirit has no exposure to Asia, but the discount carrier has a large hub in Fort Lauderdale and is popular with vacation travelers booking cruises out of south Florida and the Caribbean. The airline's summer growth plans could fail to materialize if virus fears lead to a slowdown in vacation travel, or tourists looking elsewhere instead of booking cruises. Quarterly results for the hotel industry were already threatened by the coronavirus prior to the weekend escalation, with China revenue estimates slashed in half for the first quarter. Marriott and other hoteliers were down on Monday on fears that with the virus spreading rapidly in new markets, it could cut into demand outside of China. Now what There is a definite logic to the sell-off, as the coronavirus is a serious threat to the travel industry that seems likely to cut into travel demand, and earnings, during the first half of 2020 if not longer. The talk of a potential global pandemic is unsettling; for investors who don't have the stomach for such uncertainty, it is understandable to want to head to the sidelines. However, the stocks impacted represent strong businesses with the wherewithal to survive a temporary slowdown and thrive when the outbreak is finally over. Among travel companies, cruise operators seem to have the most risk right now, as the outbreak is a fresh reminder of the public health risks associated with being in close quarters with hundreds of other people. But the industry has proven to be resilient in the past, such as when norovirus concerns dominated the headlines. The airlines and hotel companies can weather a bad summer travel season, and investors would be well served to analyze the companies not just on what is going on right now due to the coronavirus, but also based on longer-term trends. It's a tough time to be invested in travel stocks, but for those able to hold on through the turbulence, I believe there will be clear skies ahead. 10 stocks we like better than Carnival When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Carnival wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Delta Air Lines and Spirit Airlines. The Motley Fool recommends Carnival, Hawaiian Holdings, and Marriott International. 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.
Among airlines, American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and Spirit Airlines (NYSE: SAVE) were hit particularly hard, as were cruise operators Carnival (NYSE: CCL) and Royal Caribbean (NYSE: RCL). What happened Shares of travel stocks, including airlines and cruise operators, plunged Monday following news over the weekend that the coronavirus is spreading rapidly in countries such as South Korea and Italy. American has less exposure to the region, at just 3% of revenue and 6% of capacity, but the airline has the highest debt burden among major U.S. carriers and is seen as most vulnerable to a prolonged slowdown in travel demand.
Among airlines, American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and Spirit Airlines (NYSE: SAVE) were hit particularly hard, as were cruise operators Carnival (NYSE: CCL) and Royal Caribbean (NYSE: RCL). The Motley Fool owns shares of and recommends Delta Air Lines and Spirit Airlines. The Motley Fool recommends Carnival, Hawaiian Holdings, and Marriott International.
Among airlines, American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and Spirit Airlines (NYSE: SAVE) were hit particularly hard, as were cruise operators Carnival (NYSE: CCL) and Royal Caribbean (NYSE: RCL). What happened Shares of travel stocks, including airlines and cruise operators, plunged Monday following news over the weekend that the coronavirus is spreading rapidly in countries such as South Korea and Italy. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman owns shares of Delta Air Lines and Spirit Airlines.
Among airlines, American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and Spirit Airlines (NYSE: SAVE) were hit particularly hard, as were cruise operators Carnival (NYSE: CCL) and Royal Caribbean (NYSE: RCL). Those are the sort of headlines and images that can weigh on the minds of travelers planning summer vacations. The cruise operators have already cancelled a number of voyages due to the outbreak and have warned the virus will have a material impact on results.
6227.0
2020-02-24 00:00:00 UTC
Monday Sector Laggards: Energy, Industrial
AAL
https://www.nasdaq.com/articles/monday-sector-laggards%3A-energy-industrial-2020-02-24
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Looking at the sectors faring worst as of midday Monday, shares of Energy companies are underperforming other sectors, showing a 5.4% loss. Within the sector, Devon Energy Corp. (Symbol: DVN) and HollyFrontier Corp (Symbol: HFC) are two large stocks that are lagging, showing a loss of 8.5% and 7.9%, respectively. Among energy ETFs, one ETF following the sector is the Energy Select Sector SPDR ETF (Symbol: XLE), which is down 4.8% on the day, and down 14.12% year-to-date. Devon Energy Corp., meanwhile, is down 26.09% year-to-date, and HollyFrontier Corp, is down 21.17% year-to-date. Combined, DVN and HFC make up approximately 1.6% of the underlying holdings of XLE. The next worst performing sector is the Industrial sector, showing a 3.6% loss. Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) are the most notable, showing a loss of 10.0% and 9.3%, respectively. One ETF closely tracking Industrial stocks is the Industrial Select Sector SPDR ETF (XLI), which is down 3.1% in midday trading, and down 0.56% on a year-to-date basis. American Airlines Group Inc, meanwhile, is down 12.31% year-to-date, and Norwegian Cruise Line Holdings Ltd, is down 27.06% year-to-date. AAL makes up approximately 0.4% of the underlying holdings of XLI. Comparing these stocks and ETFs on a trailing twelve month basis, below is a relative stock price performance chart, with each of the symbols shown in a different color as labeled in the legend at the bottom: Here's a snapshot of how the S&P 500 components within the various sectors are faring in afternoon trading on Monday. As you can see, none of the sectors are up on the day, while nine sectors are down. SECTOR % CHANGE Utilities -0.9% Consumer Products -2.9% Healthcare -3.0% Financial -3.0% Services -3.3% Materials -3.3% Technology & Communications -3.5% Industrial -3.6% Energy -5.4% 25 Dividend Giants Widely Held By ETFs » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) are the most notable, showing a loss of 10.0% and 9.3%, respectively. AAL makes up approximately 0.4% of the underlying holdings of XLI. Combined, DVN and HFC make up approximately 1.6% of the underlying holdings of XLE.
Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) are the most notable, showing a loss of 10.0% and 9.3%, respectively. AAL makes up approximately 0.4% of the underlying holdings of XLI. Within the sector, Devon Energy Corp. (Symbol: DVN) and HollyFrontier Corp (Symbol: HFC) are two large stocks that are lagging, showing a loss of 8.5% and 7.9%, respectively.
Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) are the most notable, showing a loss of 10.0% and 9.3%, respectively. AAL makes up approximately 0.4% of the underlying holdings of XLI. Within the sector, Devon Energy Corp. (Symbol: DVN) and HollyFrontier Corp (Symbol: HFC) are two large stocks that are lagging, showing a loss of 8.5% and 7.9%, respectively.
Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Norwegian Cruise Line Holdings Ltd (Symbol: NCLH) are the most notable, showing a loss of 10.0% and 9.3%, respectively. AAL makes up approximately 0.4% of the underlying holdings of XLI. Within the sector, Devon Energy Corp. (Symbol: DVN) and HollyFrontier Corp (Symbol: HFC) are two large stocks that are lagging, showing a loss of 8.5% and 7.9%, respectively.
6228.0
2020-02-24 00:00:00 UTC
Noteworthy Monday Option Activity: DAL, FDX, AAL
AAL
https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-dal-fdx-aal-2020-02-24
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Delta Air Lines Inc (Symbol: DAL), where a total of 62,446 contracts have traded so far, representing approximately 6.2 million underlying shares. That amounts to about 99.9% of DAL's average daily trading volume over the past month of 6.3 million shares. Particularly high volume was seen for the $52.50 strike put option expiring March 06, 2020, with 7,290 contracts trading so far today, representing approximately 729,000 underlying shares of DAL. Below is a chart showing DAL's trailing twelve month trading history, with the $52.50 strike highlighted in orange: FedEx Corp (Symbol: FDX) saw options trading volume of 19,766 contracts, representing approximately 2.0 million underlying shares or approximately 77.1% of FDX's average daily trading volume over the past month, of 2.6 million shares. Particularly high volume was seen for the $200 strike call option expiring June 19, 2020, with 1,009 contracts trading so far today, representing approximately 100,900 underlying shares of FDX. Below is a chart showing FDX's trailing twelve month trading history, with the $200 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 75,249 contracts thus far today. That number of contracts represents approximately 7.5 million underlying shares, working out to a sizeable 70.8% of AAL's average daily trading volume over the past month, of 10.6 million shares. Particularly high volume was seen for the $24.50 strike put option expiring March 06, 2020, with 5,150 contracts trading so far today, representing approximately 515,000 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $24.50 strike highlighted in orange: For the various different available expirations for DAL options, FDX 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.
Particularly high volume was seen for the $24.50 strike put option expiring March 06, 2020, with 5,150 contracts trading so far today, representing approximately 515,000 underlying shares of AAL. Below is a chart showing FDX's trailing twelve month trading history, with the $200 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 75,249 contracts thus far today. That number of contracts represents approximately 7.5 million underlying shares, working out to a sizeable 70.8% of AAL's average daily trading volume over the past month, of 10.6 million shares.
Particularly high volume was seen for the $24.50 strike put option expiring March 06, 2020, with 5,150 contracts trading so far today, representing approximately 515,000 underlying shares of AAL. Below is a chart showing FDX's trailing twelve month trading history, with the $200 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 75,249 contracts thus far today. That number of contracts represents approximately 7.5 million underlying shares, working out to a sizeable 70.8% of AAL's average daily trading volume over the past month, of 10.6 million shares.
Below is a chart showing FDX's trailing twelve month trading history, with the $200 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 75,249 contracts thus far today. That number of contracts represents approximately 7.5 million underlying shares, working out to a sizeable 70.8% of AAL's average daily trading volume over the past month, of 10.6 million shares. Particularly high volume was seen for the $24.50 strike put option expiring March 06, 2020, with 5,150 contracts trading so far today, representing approximately 515,000 underlying shares of AAL.
Below is a chart showing AAL's trailing twelve month trading history, with the $24.50 strike highlighted in orange: For the various different available expirations for DAL options, FDX options, or AAL options, visit StockOptionsChannel.com. Below is a chart showing FDX's trailing twelve month trading history, with the $200 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 75,249 contracts thus far today. That number of contracts represents approximately 7.5 million underlying shares, working out to a sizeable 70.8% of AAL's average daily trading volume over the past month, of 10.6 million shares.
6229.0
2020-02-24 00:00:00 UTC
Nasdaq 100 Movers: AAL, GILD
AAL
https://www.nasdaq.com/articles/nasdaq-100-movers%3A-aal-gild-2020-02-24
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In early trading on Monday, shares of Gilead Sciences topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.8%. Year to date, Gilead Sciences registers a 12.4% gain. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 8.3%. American Airlines Group is lower by about 11.0% looking at the year to date performance. Two other components making moves today are Advanced Micro Devices, trading down 7.9%, and Xcel Energy, trading up 0.6% on the day. VIDEO: Nasdaq 100 Movers: AAL, GILD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
VIDEO: Nasdaq 100 Movers: AAL, GILD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 8.3%. American Airlines Group is lower by about 11.0% looking at the year to date performance.
VIDEO: Nasdaq 100 Movers: AAL, GILD 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, Gilead Sciences registers a 12.4% gain. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 8.3%.
VIDEO: Nasdaq 100 Movers: AAL, GILD 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 Monday, shares of Gilead Sciences topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.8%. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 8.3%.
VIDEO: Nasdaq 100 Movers: AAL, GILD 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, Gilead Sciences registers a 12.4% gain. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 8.3%.
6230.0
2020-02-20 00:00:00 UTC
Why Did Buffett Sell Shares of These 8 Stocks in the Fourth Quarter?
AAL
https://www.nasdaq.com/articles/why-did-buffett-sell-shares-of-these-8-stocks-in-the-fourth-quarter-2020-02-20
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Few investors on Wall Street are more revered than Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett. While Buffett's investing strategy is relatively simple, buying and holding great companies for long periods of time has worked out very well for the Oracle of Omaha. In fact, Buffett's investing prowess is so well-known that some investors mirror his buying and selling activity. There's arguably not a more exciting event each quarter than when Berkshire Hathaway files its 13F with the Securities and Exchange Commission. Form 13F is a requirement for companies with more than $100 million in assets under management, and it allows investors to see what the brightest minds on Wall Street have been up to over the previous quarter. On Friday, Feb. 14, Berkshire Hathaway filed its 13F, which ultimately disclosed a very active quarter for Buffett and his team. Berkshire Hathaway CEO Warren Buffett at his company's annual shareholder meeting. Image source: The Motley Fool. During the fourth quarter, Berkshire Hathaway opened a position in or added to eight securities. Likewise, Buffett's company also pared down its position in eight of its securities, with the amount sold outpacing the amount purchased by a significant margin ($7 billion in securities sold, versus $1.58 billion purchased). Why did Buffett sell shares of eight stocks during the fourth quarter? Let's take a closer look. 1. Wells Fargo: 55,156,000 shares sold For the past 2.5 years, Buffett has been paring down his company's holdings in money-center bank Wells Fargo (NYSE: WFC). Having once owned more than 479 million shares, Berkshire's latest sale, totaling more than $2.9 billion in market value, has reduced Buffett's company's stake to 323.2 million shares. The reason for the continued selling looks to be Wall Street's and consumers' lack of trust with Wells Fargo. Remember, we're less than four years removed from Wells Fargo's fake-account scandal that saw 3.5 million unauthorized accounts created. While most banks have rallied over those four years, Wells Fargo's stock has pretty much gone nowhere. Trust is very difficult to rebuild, and Buffett realizes it. 2. Goldman Sachs: 6,348,884 shares sold Arguably one of the tougher sells to figure out is why Buffett reduced Berkshire's stake in investment bank Goldman Sachs (NYSE: GS) by around a third. Goldman Sachs is still historically inexpensive based on its book value and forward earnings, and its fourth-quarter results featured blowout adjusted revenue and profit figures. However, investment banking revenue declined 6% in the fourth quarter as merger and acquisition (M&A) activity slowed. With Buffett a net seller of stocks in Q4 and unwilling to put Berkshire's record cash hoard to work, it's pretty evident he's worried about the state of the U.S. and/or global economy (without actually saying so). With Goldman dependent on M&A activity and global markets, Buffett might have hedged his bet a bit against a recession by paring down his stake. Image source: Getty Images. 3. Travelers Cos.: 5,646,012 shares sold The thesis for selling nearly all of Berkshire Hathaway's stake in Travelers Cos. (NYSE: TRV) likely has to do with some combination of valuation and intermediate-term interest-rate prospects. On the valuation front, Travelers' forward price-to-earnings ratio is modestly higher than its five-year average, while its earning yield has declined noticeably over the past five years. Ultimately, this insurer's share price has more than tripled since the Great Recession but the company grows its top line at only 5% per year. The other consideration here is that interest rates may remain low for the foreseeable future. Higher rates are preferable for insurers since they invest their float (i.e. unused premium that's been collected) to generate interest income. With yields looking dismal, Travelers' upside may be limited. 4. Phillips 66: 4,955,201 shares sold Buffett continued to heavily sell integrated oil and gas giant Phillips 66 (NYSE: PSX) -- and that's no surprise. Berkshire has been steadily paring down its position in Phillips 66 for the past seven quarters. At one time, Berkshire held more than 80 million shares of Phillips 66 but ended December with only 227,436 shares remaining. The writing was on the wall when Buffett pledged $10 billion to Occidental Petroleum in April 2019 to aid in its acquisition of Anadarko. It was clear then that Buffett viewed Occidental as a better long-term value than Phillips 66. Image source: Apple. 5. Apple: 3,683,113 shares sold Investors will likely gain better clarity as to why close to 3.7 million shares of tech kingpin Apple (NASDAQ: AAPL) were sold during the fourth quarter when Buffett releases his annual shareholder letter. Although this sale equates to almost $1.1 billion, it's important to note that Apple still represents Berkshire's biggest holding by a longshot ($72 billion, as of Dec. 31). One possibility is that Buffett had nothing to do with this sale. Remember, a small number of Buffett's investment team can buy and sell equities, and they might be responsible for this profit-taking move on Apple. 6. Bank of America: 2,240,000 shares sold Easily the most benign sale of the quarter goes to Bank of America (NYSE: BAC). Buffett has often said that he doesn't want Berkshire's investment stakes in any bank to exceed 10% because it means there will be added levels of Federal Reserve oversight if it crosses this 10% threshold. That's a problem when Bank of America is enacting massive capital return programs ($37 billion in 2019) that include hefty stock repurchases. Selling 2.24 million shares was simply a means for Buffett to bring his company's ownership stake in BofA back below 10%. In other words, the Oracle of Omaha is still a very big fan of Bank of America. Image source: American Airlines. 7. American Airlines Group: 1,200,000 shares sold It's also likely that Buffett pared down his company's stake in American Airlines Group (NASDAQ: AAL) to stay below the 10% ownership threshold. Although American Airlines' share-buyback program has slowed in recent quarters from what it was in 2017-2018, Berkshire's selling of 1.2 million shares might simply be a reaction to American Airlines' declining outstanding share count. Then again, it's also possible that Buffett is modestly hedging against a recession. The airline industry has historically performed poorly during recessions, and no major airline is lugging around more net debt right now than American Airlines. 8. Bank of NY Mellon: 1,172,193 shares sold Last but not least, Buffett modestly reduced Berkshire's stake in Bank of NY Mellon (NYSE: BK). The likely reason for this sale is the same as with insurer Travelers: lower yields. As the largest custodial bank in the U.S., Bank of NY Mellon leans on higher yields to drive its net income. However, the Federal Reserve lowered its fed funds rate by 25 basis points on three separate occasions in 2019 and is once again walking on eggshells as it attempts to feel out the U.S. economy. As a result, near-term growth prospects for the Bank of NY Mellon look tepid, at best. 10 stocks we like better than Bank of America When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Bank of America wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Sean Williams owns shares of Bank of America. The Motley Fool owns shares of and recommends Apple and Berkshire Hathaway (B shares) and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short March 2020 $225 calls on Berkshire Hathaway (B shares). 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.
American Airlines Group: 1,200,000 shares sold It's also likely that Buffett pared down his company's stake in American Airlines Group (NASDAQ: AAL) to stay below the 10% ownership threshold. Goldman Sachs is still historically inexpensive based on its book value and forward earnings, and its fourth-quarter results featured blowout adjusted revenue and profit figures. With Buffett a net seller of stocks in Q4 and unwilling to put Berkshire's record cash hoard to work, it's pretty evident he's worried about the state of the U.S. and/or global economy (without actually saying so).
American Airlines Group: 1,200,000 shares sold It's also likely that Buffett pared down his company's stake in American Airlines Group (NASDAQ: AAL) to stay below the 10% ownership threshold. Wells Fargo: 55,156,000 shares sold For the past 2.5 years, Buffett has been paring down his company's holdings in money-center bank Wells Fargo (NYSE: WFC). Goldman Sachs: 6,348,884 shares sold Arguably one of the tougher sells to figure out is why Buffett reduced Berkshire's stake in investment bank Goldman Sachs (NYSE: GS) by around a third.
American Airlines Group: 1,200,000 shares sold It's also likely that Buffett pared down his company's stake in American Airlines Group (NASDAQ: AAL) to stay below the 10% ownership threshold. Goldman Sachs: 6,348,884 shares sold Arguably one of the tougher sells to figure out is why Buffett reduced Berkshire's stake in investment bank Goldman Sachs (NYSE: GS) by around a third. Bank of NY Mellon: 1,172,193 shares sold Last but not least, Buffett modestly reduced Berkshire's stake in Bank of NY Mellon (NYSE: BK).
American Airlines Group: 1,200,000 shares sold It's also likely that Buffett pared down his company's stake in American Airlines Group (NASDAQ: AAL) to stay below the 10% ownership threshold. Why did Buffett sell shares of eight stocks during the fourth quarter? Wells Fargo: 55,156,000 shares sold For the past 2.5 years, Buffett has been paring down his company's holdings in money-center bank Wells Fargo (NYSE: WFC).
6231.0
2020-02-18 00:00:00 UTC
There's No Doubt Anymore: Buffett Thinks Stocks Are Grossly Overvalued
AAL
https://www.nasdaq.com/articles/theres-no-doubt-anymore%3A-buffett-thinks-stocks-are-grossly-overvalued-2020-02-18
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Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett is easily one of the greatest investors of our time. In 65 years, he's grown his net worth from $10,000 to more than $89 billion, all while creating more than $400 billion in value for Berkshire Hathaway's shareholders over a more than five-decade stretch. Given Buffett's stock-picking prowess, he's also someone that Wall Street and retail investors look to for guidance as to where the broader market and certain core sectors/industries may be headed next. Berkshire's quarterly 13F filings with the Securities and Exchange Commission provide that intimate look under the hood, so to speak, and allows us inside access to what the greatest mind on Wall Street has been up to in recent months. On Valentine's Day, Feb. 14, Berkshire Hathaway filed its latest 13F for the fourth quarter. Unfortunately for investors, there was little to love. If there was any question as to whether Buffett still views equities as overvalued -- he referred to the valuations of businesses "possessing decent long-term prospects" as "sky-high" in Berkshire's 2019 annual shareholder letter -- the latest 13F absolutely confirmed it. Berkshire Hathaway CEO Warren Buffett at his company's annual shareholder meeting. Image source: The Motley Fool. Buffett remains a net seller of equities The most telltale sign that Warren Buffett is no fan of stocks at the moment can be seen when comparing the amount of stock sold to what was purchased during the fourth quarter. Although Berkshire added or bought into eight equities and reduced its position in an equal number of companies, there was a huge disparity on the sell side of the equation compared to the buy side. Although we don't know the exact price Buffett bought and sold these companies, I utilized their closing values on Dec. 31 to estimate how much capital was put to work versus how much was freed up via selling. On the buy side, Berkshire Hathaway purchased around $1.58 billion worth of stock. The newly added supermarket giant Kroger accounted for the largest portion of this ($549.1 million), with Occidental Petroleum trailing fairly closely behind ($472.5 million). Comparatively, Buffett and his team sold approximately $7 billion worth of stock during the fourth quarter, or more than four times the amount of stock that was purchased. In fact, the five largest sells -- Wells Fargo (NYSE: WFC), Goldman Sachs, Apple, Travelers Cos., and Phillips 66 -- equaled a higher dollar value than the biggest buy (Kroger) Buffett made in Q4. As further evidence, we've witnessed Berkshire Hathaway's cash pile grow to an all-time record of $128.2 billion in the third quarter of 2019. It's been four years since Buffett has made a needle-moving acquisition, and this combination of the company's rising cash hoard and its net-seller position in Q4 firmly suggests that Buffett is no fan of equities right now. Image source: Wells Fargo. He pared down core cyclical businesses However, this isn't the only evidence we have that Buffett is hesitant to put his capital to work. What's particularly notable about the latest 13F filing is what stocks were sold. Here's the rundown of the eight stocks that were pared down, along with the number of shares sold: Wells Fargo: 55,156,000 shares sold Goldman Sachs: 6,348,884 Travelers Cos.: 5,646.012 Phillips 66: 4,955,201 Apple: 3,683,113 Bank of America (NYSE: BAC): 2,240,000 American Airlines Group (NASDAQ: AAL): 1,200,000 Bank of NY Mellon: 1,172,193 Some of these reductions are probably benign, such as the disposition of 2.24 million Bank of America shares and 1.2 million American Airlines shares. Buffett has regularly opined that he prefers to keep his investment stakes under 10% of a company's outstanding shares, and both Bank of America and American Airlines have been regularly buying back their own stock (thereby reducing their outstanding share count). In particular, the bulk of Bank of America's $37 billion capital return program over the next year is based on share buybacks. What really stands out, though, is Buffett's move away from cyclical names that rely on a strong economy to thrive. The continued paring down of money-center bank Wells Fargo and the big sale of more than 5.6 million shares of insurance giant Travelers speak volumes. In other words, not only is Buffett worried about sky-high valuations, but his confidence in U.S. and/or global growth appears to be waning. Image source: Getty Images. Critical of diversification, Buffett bought into ETFs One final bit of evidence that reinforces the idea that Buffett views stocks as grossly overvalued comes from the buy-side of the equation in the fourth quarter. Though they accounted for Berkshire's two smallest additions, Buffett (or perhaps some member of his team) purchased $12.7 million worth of the SPDR S&P 500 ETF Trust and $12.7 million worth of the Vanguard S&P 500 ETF. Why's this meaningful, you ask? Well, one of Buffett's most famous quotes has to do with diversification. Said Buffett, "Diversification is protection against ignorance. It makes very little sense for those who know what they're doing." While there's no question that Buffett knows exactly what he's doing on the investment front, the purchase of two index funds that almost perfectly mirror the S&P 500 goes against everything Buffett has traditionally done on the investment front. Though he is a fan of index funds for everyday investors, this isn't a move we've seen before from an investor who traditionally focuses on only a few sectors of the market. I believe it's crystal clear at this point that Buffett is leery of existing stock valuations -- and that's saying something for one of the most successful buy-and-hold investors of our generation. 10 stocks we like better than Berkshire Hathaway (B shares) When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway (B shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Sean Williams owns shares of Bank of America and has the following options: long March 2020 $334 puts on SPDR S&P 500. The Motley Fool owns shares of and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool owns shares of Vanguard S&P 500 ETF and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short March 2020 $225 calls on Berkshire Hathaway (B shares). 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.
Here's the rundown of the eight stocks that were pared down, along with the number of shares sold: Wells Fargo: 55,156,000 shares sold Goldman Sachs: 6,348,884 Travelers Cos.: 5,646.012 Phillips 66: 4,955,201 Apple: 3,683,113 Bank of America (NYSE: BAC): 2,240,000 American Airlines Group (NASDAQ: AAL): 1,200,000 Bank of NY Mellon: 1,172,193 Some of these reductions are probably benign, such as the disposition of 2.24 million Bank of America shares and 1.2 million American Airlines shares. Berkshire's quarterly 13F filings with the Securities and Exchange Commission provide that intimate look under the hood, so to speak, and allows us inside access to what the greatest mind on Wall Street has been up to in recent months. If there was any question as to whether Buffett still views equities as overvalued -- he referred to the valuations of businesses "possessing decent long-term prospects" as "sky-high" in Berkshire's 2019 annual shareholder letter -- the latest 13F absolutely confirmed it.
Here's the rundown of the eight stocks that were pared down, along with the number of shares sold: Wells Fargo: 55,156,000 shares sold Goldman Sachs: 6,348,884 Travelers Cos.: 5,646.012 Phillips 66: 4,955,201 Apple: 3,683,113 Bank of America (NYSE: BAC): 2,240,000 American Airlines Group (NASDAQ: AAL): 1,200,000 Bank of NY Mellon: 1,172,193 Some of these reductions are probably benign, such as the disposition of 2.24 million Bank of America shares and 1.2 million American Airlines shares. In fact, the five largest sells -- Wells Fargo (NYSE: WFC), Goldman Sachs, Apple, Travelers Cos., and Phillips 66 -- equaled a higher dollar value than the biggest buy (Kroger) Buffett made in Q4. The Motley Fool owns shares of Vanguard S&P 500 ETF and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short March 2020 $225 calls on Berkshire Hathaway (B shares).
Here's the rundown of the eight stocks that were pared down, along with the number of shares sold: Wells Fargo: 55,156,000 shares sold Goldman Sachs: 6,348,884 Travelers Cos.: 5,646.012 Phillips 66: 4,955,201 Apple: 3,683,113 Bank of America (NYSE: BAC): 2,240,000 American Airlines Group (NASDAQ: AAL): 1,200,000 Bank of NY Mellon: 1,172,193 Some of these reductions are probably benign, such as the disposition of 2.24 million Bank of America shares and 1.2 million American Airlines shares. Buffett remains a net seller of equities The most telltale sign that Warren Buffett is no fan of stocks at the moment can be seen when comparing the amount of stock sold to what was purchased during the fourth quarter. The Motley Fool owns shares of Vanguard S&P 500 ETF and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short March 2020 $225 calls on Berkshire Hathaway (B shares).
Here's the rundown of the eight stocks that were pared down, along with the number of shares sold: Wells Fargo: 55,156,000 shares sold Goldman Sachs: 6,348,884 Travelers Cos.: 5,646.012 Phillips 66: 4,955,201 Apple: 3,683,113 Bank of America (NYSE: BAC): 2,240,000 American Airlines Group (NASDAQ: AAL): 1,200,000 Bank of NY Mellon: 1,172,193 Some of these reductions are probably benign, such as the disposition of 2.24 million Bank of America shares and 1.2 million American Airlines shares. Comparatively, Buffett and his team sold approximately $7 billion worth of stock during the fourth quarter, or more than four times the amount of stock that was purchased. Critical of diversification, Buffett bought into ETFs One final bit of evidence that reinforces the idea that Buffett views stocks as grossly overvalued comes from the buy-side of the equation in the fourth quarter.
6232.0
2020-02-15 00:00:00 UTC
American Airlines and Alaska Air Join Forces to Take On Delta
AAL
https://www.nasdaq.com/articles/american-airlines-and-alaska-air-join-forces-to-take-on-delta-2020-02-15
nan
nan
Today, American Airlines (NASDAQ: AAL) and Alaska Air (NYSE: ALK) have a common problem: Delta Air Lines (NYSE: DAL). Since 2014, Delta has built up a global hub in Seattle, gaining market share in Alaska Airlines' home city and threatening its ability to compete for corporate travel contracts there. Meanwhile, Delta has grown significantly in Los Angeles, challenging American's main West Coast hub and top transpacific gateway. Delta's joint ventures with Virgin Atlantic and Aeromexico and its planned JV with LATAM Airlines are also putting pressure on American Airlines in the U.K. and Latin America, two of the strongest points in its international route network. Now American Airlines and Alaska Airlines have realized that they would be better off teaming up to take on the threat posed by Delta's growth. On Thursday, the two airlines announced a new West Coast partnership, which will eventually include Alaska joining the oneworld global airline alliance. Distinct strengths and weaknesses The late-2013 merger between AMR and US Airways made American Airlines the largest airline in the U.S. However, while American became significantly bigger than rivals Delta and United Airlines east of the Rockies, it remained the clear No. 3 player in the western U.S. American Airlines' domestic route network is concentrated east of the Rockies. Image source: American Airlines. This has made it hard to compete in Asia, a key growth market for American's competitors. In fact, after ending its routes from Chicago to Asia over the past year and a half, the airline is now considering whether or not to resume its flights from Los Angeles to Beijing and Shanghai when the current coronavirus outbreak subsides. Additionally, American Airlines has trouble competing for business in the Pacific Northwest, as its hubs are poorly positioned for serving the region. By contrast, Alaska Airlines is the dominant airline in the Pacific Northwest. In Seattle, it offers about twice as many flights and seats as Delta, despite the latter's growth. It is also the leading carrier in Portland. Alaska has a substantial presence in many other West Coast markets, too. That said, with no wide-body jets to serve long-haul routes, Alaska Airlines has had to rely on a hodgepodge of international airline partners to take its customers to overseas destinations. That's given Delta a natural advantage in competing for lucrative corporate contracts from big tech companies as it has grown in Seattle. Delta and its joint venture partners fly nonstop from Seattle to up to eight destinations in Europe and Asia. An expanded partnership could be the answer Alaska Airlines and American Airlines already have a codeshare agreement, but they have been scaling back that partnership in recent years. Now the two airlines are changing course. They plan to continue the current codeshare arrangement and extend it to new American Airlines long-haul routes from the West Coast. American and Alaska will also return to full reciprocity between their loyalty programs, allowing customers to earn miles for their preferred airline regardless of which carrier operates a given flight. The two airlines will also offer reciprocal lounge access. Image source: Alaska Airlines. In conjunction with this agreement, American Airlines announced that it will launch two long-haul routes from Seattle. It will begin flying to Bangalore, India, in October and will add daily service to London in March 2021. These routes would have been unthinkable without the Alaska partnership, as American Airlines doesn't offer any domestic service from Seattle except to its hubs. Bangalore is a major tech hub, and American Airlines has seen growing demand from its customers to fly there. Partnering with Alaska to enable nonstop Seattle-Bangalore flights was a natural move based on Seattle's burgeoning tech industry and the simple fact that no other major city in the U.S. is close enough to Bangalore to permit reliable nonstop flights by fully loaded planes. London is also a natural city to serve, as a key business market and the hub of American Airlines' joint venture partner British Airways. This expanded partnership is great news for Alaska Airlines. It's low risk, it will remedy a major network disadvantage vis-a-vis Delta, and connecting traffic to and from American's long-haul flights will boost traffic on Alaska's network. From American Airlines' perspective, there is more risk. Starting a new 8,000-mile route in an unproven market is never a sure thing. But gaining additional connecting traffic from Alaska Airlines in Los Angeles will reinforce American's existing long-haul routes there. Plus, there's more long-term upside for American. If the Bangalore and London routes are successful, American Airlines could add other long-haul routes from Seattle, which might prove to be a more profitable international gateway than Los Angeles. Alaska will join oneworld, too In addition to partnering directly with American Airlines, Alaska Airlines plans to join the oneworld alliance in the summer of 2021. This will significantly improve its ability to serve customers' international travel needs. Alaska Airlines customers will be able to earn and redeem miles with all oneworld member airlines. Elite members of its frequent-flyer program will also get privileges like priority boarding, upgrades, and lounge access across the oneworld network. In the long run, joining oneworld could be a bigger deal for Alaska Airlines than the American Airlines partnership. Through oneworld, Alaska Airlines will be able to book tickets to more than 1,200 destinations around the globe. Nearly all of Alaska's international airline partners today are members of oneworld (including British Airways, Cathay Pacific, Finnair, Japan Airlines, and Qantas) or are unaligned. Thus, the carrier isn't likely to lose many partners from joining oneworld. Meanwhile, it will benefit from deeper integration with its oneworld partners, making it a more compelling alternative to Delta for business travelers based in Seattle -- and elsewhere up and down the West Coast. That could turbocharge Alaska's revenue and profit growth in the years ahead. 10 stocks we like better than Alaska Air Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Alaska Air Group wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Adam Levine-Weinberg owns shares of Alaska Air Group, American Airlines Group, and Delta Air Lines. The Motley Fool owns shares of and recommends Delta Air Lines. The Motley Fool recommends Alaska Air Group. 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.
Today, American Airlines (NASDAQ: AAL) and Alaska Air (NYSE: ALK) have a common problem: Delta Air Lines (NYSE: DAL). Since 2014, Delta has built up a global hub in Seattle, gaining market share in Alaska Airlines' home city and threatening its ability to compete for corporate travel contracts there. In fact, after ending its routes from Chicago to Asia over the past year and a half, the airline is now considering whether or not to resume its flights from Los Angeles to Beijing and Shanghai when the current coronavirus outbreak subsides.
Today, American Airlines (NASDAQ: AAL) and Alaska Air (NYSE: ALK) have a common problem: Delta Air Lines (NYSE: DAL). Since 2014, Delta has built up a global hub in Seattle, gaining market share in Alaska Airlines' home city and threatening its ability to compete for corporate travel contracts there. London is also a natural city to serve, as a key business market and the hub of American Airlines' joint venture partner British Airways.
Today, American Airlines (NASDAQ: AAL) and Alaska Air (NYSE: ALK) have a common problem: Delta Air Lines (NYSE: DAL). Now American Airlines and Alaska Airlines have realized that they would be better off teaming up to take on the threat posed by Delta's growth. Alaska will join oneworld, too In addition to partnering directly with American Airlines, Alaska Airlines plans to join the oneworld alliance in the summer of 2021.
Today, American Airlines (NASDAQ: AAL) and Alaska Air (NYSE: ALK) have a common problem: Delta Air Lines (NYSE: DAL). Delta and its joint venture partners fly nonstop from Seattle to up to eight destinations in Europe and Asia. These routes would have been unthinkable without the Alaska partnership, as American Airlines doesn't offer any domestic service from Seattle except to its hubs.
6233.0
2020-02-11 00:00:00 UTC
Notable Tuesday Option Activity: AAL, PLAB, PYPL
AAL
https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-aal-plab-pypl-2020-02-11
nan
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 52,321 contracts has been traded thus far today, a contract volume which is representative of approximately 5.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 46.4% of AAL's average daily trading volume over the past month, of 11.3 million shares. Particularly high volume was seen for the $29 strike call option expiring February 21, 2020, with 4,046 contracts trading so far today, representing approximately 404,600 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $29 strike highlighted in orange: Photronics, Inc. (Symbol: PLAB) options are showing a volume of 2,859 contracts thus far today. That number of contracts represents approximately 285,900 underlying shares, working out to a sizeable 45.9% of PLAB's average daily trading volume over the past month, of 622,495 shares. Especially high volume was seen for the $17.50 strike call option expiring February 21, 2020, with 2,299 contracts trading so far today, representing approximately 229,900 underlying shares of PLAB. Below is a chart showing PLAB's trailing twelve month trading history, with the $17.50 strike highlighted in orange: And PayPal Holdings Inc (Symbol: PYPL) saw options trading volume of 33,889 contracts, representing approximately 3.4 million underlying shares or approximately 45.5% of PYPL's average daily trading volume over the past month, of 7.5 million shares. Particularly high volume was seen for the $120 strike call option expiring February 14, 2020, with 3,281 contracts trading so far today, representing approximately 328,100 underlying shares of PYPL. Below is a chart showing PYPL's trailing twelve month trading history, with the $120 strike highlighted in orange: For the various different available expirations for AAL options, PLAB options, or PYPL 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.
Particularly high volume was seen for the $29 strike call option expiring February 21, 2020, with 4,046 contracts trading so far today, representing approximately 404,600 underlying shares of AAL. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 52,321 contracts has been traded thus far today, a contract volume which is representative of approximately 5.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 46.4% of AAL's average daily trading volume over the past month, of 11.3 million shares.
Particularly high volume was seen for the $29 strike call option expiring February 21, 2020, with 4,046 contracts trading so far today, representing approximately 404,600 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $29 strike highlighted in orange: Photronics, Inc. (Symbol: PLAB) options are showing a volume of 2,859 contracts thus far today. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 52,321 contracts has been traded thus far today, a contract volume which is representative of approximately 5.2 million underlying shares (given that every 1 contract represents 100 underlying shares).
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 52,321 contracts has been traded thus far today, a contract volume which is representative of approximately 5.2 million underlying shares (given that every 1 contract represents 100 underlying shares). Particularly high volume was seen for the $29 strike call option expiring February 21, 2020, with 4,046 contracts trading so far today, representing approximately 404,600 underlying shares of AAL. That number works out to 46.4% of AAL's average daily trading volume over the past month, of 11.3 million shares.
Below is a chart showing PYPL's trailing twelve month trading history, with the $120 strike highlighted in orange: For the various different available expirations for AAL options, PLAB options, or PYPL options, visit StockOptionsChannel.com. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 52,321 contracts has been traded thus far today, a contract volume which is representative of approximately 5.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 46.4% of AAL's average daily trading volume over the past month, of 11.3 million shares.
6234.0
2020-02-11 00:00:00 UTC
American Airlines Group Breaks Above 200-Day Moving Average - Bullish for AAL
AAL
https://www.nasdaq.com/articles/american-airlines-group-breaks-above-200-day-moving-average-bullish-for-aal-2020-02-11
nan
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In trading on Tuesday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $29.36, changing hands as high as $29.77 per share. American Airlines Group Inc shares are currently trading up about 3.3% 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 $24.23 per share, with $37.17 as the 52 week high point — that compares with a last trade of $29.67. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
In trading on Tuesday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $29.36, changing hands as high as $29.77 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 $24.23 per share, with $37.17 as the 52 week high point — that compares with a last trade of $29.67. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
In trading on Tuesday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $29.36, changing hands as high as $29.77 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 $24.23 per share, with $37.17 as the 52 week high point — that compares with a last trade of $29.67. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
In trading on Tuesday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $29.36, changing hands as high as $29.77 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 $24.23 per share, with $37.17 as the 52 week high point — that compares with a last trade of $29.67. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
In trading on Tuesday, shares of American Airlines Group Inc (Symbol: AAL) crossed above their 200 day moving average of $29.36, changing hands as high as $29.77 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 $24.23 per share, with $37.17 as the 52 week high point — that compares with a last trade of $29.67. The AAL DMA information above was sourced from TechnicalAnalysisChannel.com Click here to find out which 9 other stocks recently crossed above their 200 day moving average » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
6235.0
2020-02-10 00:00:00 UTC
What Factors Will Drive United Airlines' Revenues In 2020?
AAL
https://www.nasdaq.com/articles/what-factors-will-drive-united-airlines-revenues-in-2020-2020-02-11
nan
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United Airlines (NASDAQ: UAL) results came fairly in-line with the market expectations for the full year 2019. Though the company’s fleet plan included 30 Boeing 737 MAX aircraft for 2019, it received only four aircraft before the FAA grounding order last March. The impact of groundings was relatively low on the company’s non-fuel expenses, though, as CASM-ex (Cost per Available Seat Mile excluding fuel) increased by just 1% (against the earlier guidance range of flat CASM-ex for the full year). In 2020, the company expects to expand its fleet with Boeing 787 Dreamliners. While the global airline industry is likely to face sizable revenue headwinds over the coming weeks due to fears surrounding the global spread of coronavirus, Trefis expects United Airlines’ Revenues to reach $45.5 billion in 2020 assisted by growing capacity and rising airfares. We detail our forecast in our interactive dashboard for the company, parts of which we summarize below. A Quick Look at United Airlines’ Revenues United Airlines’ reported $43.3 billion in Total Revenues for full-year 2019. This includes three revenue streams: Passenger Revenue: $40 billion in FY2019 (91% of Total Revenues). It represents income from the sale of air tickets and other ancillary offerings for the company’s mainline and affiliate carriers. If a ticket is sold and travel is yet to happen, the company recognizes income from such tickets as air traffic liability. Due to the complex structure of ticket pricing, cancellation, and rescheduling, a certain portion of the liability is recognized as passenger revenues based on historical patterns. Cargo: $1.2 billion in FY2019 (3% of Total Revenues). It represents income freight and mail services. Other Revenue: $2.5 billion in FY2019 (6% of Total Revenues). It comprises of the sale of loyalty points to credit card companies. [A] United Airlines’ capacity likely to expand from increased utilization of its existing fleet Per recent filings, United Airlines operates a total of 1,372 aircraft across 358 airports. The company expects to expand its fleet with 65 new aircraft by the end of 2020 (per recent investor update report). Though 40% of these aircraft are Boeing 737 MAX, we expect the company’s existing fleet to assist capacity growth and service strong demand in Latin America as well as the U.S. (Domestic). For forecasting, Trefis recognizes available seat miles as an airline’s total capacity, which refers to the number of seats available for passengers multiplied by the number of miles flown. [B] Occupancy rate likely to remain stable Historically, United Airlines’ average occupancy rate has remained fairly steady at around 84%. As a variation in flight schedule impacts an airline’s capacity (i.e., available seat miles), we do not expect a significant shift in occupancy rate due to supply-side factors. For the full year 2020, we expect United Airlines’ average occupancy rate to be 85%, although this figure could be notably lower over coming weeks [C] Passenger yield mostly dependent on fuel prices Passenger yield refers to the average fare one passenger pays to fly one mile and is impacted by fuel prices, demand, and competitive environment. In 2018, rising oil prices drove United Airlines’ passenger yield up by 2.8%. However, a fairly stable oil market increased passenger yield by just 1% in 2019 despite a capacity crunch in the industry. Consistent with the company’s guidance of $2.04-$2.14 of fuel cost per gallon during the first quarter (which includes targeted improvement in aircraft efficiency and the impact of fuel hedges), we expect United’s passenger yield to grow by 1% in 2020. See all Trefis Price Estimates and Download Trefis Data here What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Due to the complex structure of ticket pricing, cancellation, and rescheduling, a certain portion of the liability is recognized as passenger revenues based on historical patterns. Though 40% of these aircraft are Boeing 737 MAX, we expect the company’s existing fleet to assist capacity growth and service strong demand in Latin America as well as the U.S. (Domestic). As a variation in flight schedule impacts an airline’s capacity (i.e., available seat miles), we do not expect a significant shift in occupancy rate due to supply-side factors.
A Quick Look at United Airlines’ Revenues United Airlines’ reported $43.3 billion in Total Revenues for full-year 2019. [B] Occupancy rate likely to remain stable Historically, United Airlines’ average occupancy rate has remained fairly steady at around 84%. For the full year 2020, we expect United Airlines’ average occupancy rate to be 85%, although this figure could be notably lower over coming weeks [C] Passenger yield mostly dependent on fuel prices Passenger yield refers to the average fare one passenger pays to fly one mile and is impacted by fuel prices, demand, and competitive environment.
While the global airline industry is likely to face sizable revenue headwinds over the coming weeks due to fears surrounding the global spread of coronavirus, Trefis expects United Airlines’ Revenues to reach $45.5 billion in 2020 assisted by growing capacity and rising airfares. A Quick Look at United Airlines’ Revenues United Airlines’ reported $43.3 billion in Total Revenues for full-year 2019. For the full year 2020, we expect United Airlines’ average occupancy rate to be 85%, although this figure could be notably lower over coming weeks [C] Passenger yield mostly dependent on fuel prices Passenger yield refers to the average fare one passenger pays to fly one mile and is impacted by fuel prices, demand, and competitive environment.
A Quick Look at United Airlines’ Revenues United Airlines’ reported $43.3 billion in Total Revenues for full-year 2019. It represents income from the sale of air tickets and other ancillary offerings for the company’s mainline and affiliate carriers. For the full year 2020, we expect United Airlines’ average occupancy rate to be 85%, although this figure could be notably lower over coming weeks [C] Passenger yield mostly dependent on fuel prices Passenger yield refers to the average fare one passenger pays to fly one mile and is impacted by fuel prices, demand, and competitive environment.
6236.0
2020-02-05 00:00:00 UTC
Why Shares of United Airlines Lost 15% in January
AAL
https://www.nasdaq.com/articles/why-shares-of-united-airlines-lost-15-in-january-2020-02-05
nan
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What happened Shares of United Airlines Holdings (NASDAQ: UAL) fell 15.1% in January, according to data provided by S&P Global Market Intelligence, as investors reacted to the growing coronavirus scare. Airline stocks were all under pressure over concerns that the outbreak would eat into travel demand, and United was hit particularly hard. So what Frightening stories out of China dominated headlines throughout much of January and hit travel stocks hard based on concerns that the outbreak would lead to empty flights and vacationers deferring travel plans. United and other U.S. airlines suspended flights to China late in the month, but the outbreak at the very least is certain to hurt first-quarter results and could weigh on the sector for some time to come. United lost more than most from the coronavirus because of its oversize exposure to China and the Asia Pacific region. It has about 4% of its total capacity tied to China and 15% tied to the region. In comparison, Delta Air Lines has about 3% of capacity tied to China and 9% to the Asia Pacific, and American Airlines Group 2% and 6%, respectively. Image source: United Airlines Holdings. Now what The outbreak didn't end when the calendar turned to February, but markets appear to be growing more confident that the virus can be contained. In the first few trading days of February, United shares made back about half of what was lost in January and are now down just 8% for the year. This story is far from over, and alarming headlines about a spike in cases or a rapid spread into new areas could easily send stocks down again. There could be more turbulence in the weeks ahead, but long-term investors able to handle the volatility should be fine holding on to airlines through the crisis. 10 stocks we like better than United Airlines Holdings When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and United Airlines Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman owns shares of Delta Air Lines. The Motley Fool owns shares of and recommends 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.
What happened Shares of United Airlines Holdings (NASDAQ: UAL) fell 15.1% in January, according to data provided by S&P Global Market Intelligence, as investors reacted to the growing coronavirus scare. United and other U.S. airlines suspended flights to China late in the month, but the outbreak at the very least is certain to hurt first-quarter results and could weigh on the sector for some time to come. In comparison, Delta Air Lines has about 3% of capacity tied to China and 9% to the Asia Pacific, and American Airlines Group 2% and 6%, respectively.
So what Frightening stories out of China dominated headlines throughout much of January and hit travel stocks hard based on concerns that the outbreak would lead to empty flights and vacationers deferring travel plans. In comparison, Delta Air Lines has about 3% of capacity tied to China and 9% to the Asia Pacific, and American Airlines Group 2% and 6%, respectively. The Motley Fool owns shares of and recommends Delta Air Lines.
What happened Shares of United Airlines Holdings (NASDAQ: UAL) fell 15.1% in January, according to data provided by S&P Global Market Intelligence, as investors reacted to the growing coronavirus scare. 10 stocks we like better than United Airlines Holdings When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and United Airlines Holdings wasn't one of them!
So what Frightening stories out of China dominated headlines throughout much of January and hit travel stocks hard based on concerns that the outbreak would lead to empty flights and vacationers deferring travel plans. United lost more than most from the coronavirus because of its oversize exposure to China and the Asia Pacific region. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and United Airlines Holdings wasn't one of them!
6237.0
2020-02-04 00:00:00 UTC
Why Shares of American and Other Airlines Are Climbing Higher Today
AAL
https://www.nasdaq.com/articles/why-shares-of-american-and-other-airlines-are-climbing-higher-today-2020-02-04
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What happened Shares of American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) both traded up more than 5% on Tuesday afternoon, caught up in a broader surge higher as markets brush off concerns about the ongoing coronavirus outbreak in China. The airlines were among the biggest losers as virus fears were growing, with both stocks down more than 12% for the month in late January, and are bouncing back now that the panic is at least temporarily subsiding. So what The coronavirus outbreak has weighed heavy on investors for weeks now, with airline stocks under pressure due to concerns over revenue lost to canceled flights, and vacationers deciding to defer travel out of fear of getting sick. Image source: Getty Images. American and United were among the airlines most affected, but for different reasons. American has the highest debt burden among major airlines and is seen as the most vulnerable to an unexpected drop in demand. United is the U.S. airline most exposed to the China market, with an estimated 4% of its capacity tied to China and 15% tied to the Asia Pacific region. In comparison, American has about 2% of its capacity tied to China and 6% to Asia, and Delta Air Lines about 3% and 9%, respectively. Hawaiian Holdings (NASDAQ: HA) is also moving higher on Tuesday. Though Hawaiian Airlines has no China capacity, it is No. 1 among U.S. airlines in exposure to Asia, which accounts for close to one-fourth of its revenue. In recent days all the major airlines have canceled flights to China into April, a move that helped put investors at ease -- it's better for the companies not to operate service when there's no demand, rather than have the expense of flying nearly empty planes. A general sentiment that China is moving to contain the virus, and is willing to stimulate its economy to make sure there are no long-term ramifications of the outbreak, is also helping move airline shares and other stocks higher on Tuesday. Now what The outbreak is far from over, and a new batch of headlines announcing an uptick in cases could easily send stocks in the opposite direction tomorrow. But today's trading action should serve as a reminder that the weakness is tied to the outbreak, and buy-and-hold investors are best served by riding out the crisis and the headlines without making a move. Just buckle up and be prepared for turbulence. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman owns shares of, and The Motley Fool owns shares of and recommends, Delta Air Lines. The Motley Fool recommends Hawaiian Holdings. 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.
What happened Shares of American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) both traded up more than 5% on Tuesday afternoon, caught up in a broader surge higher as markets brush off concerns about the ongoing coronavirus outbreak in China. The airlines were among the biggest losers as virus fears were growing, with both stocks down more than 12% for the month in late January, and are bouncing back now that the panic is at least temporarily subsiding. So what The coronavirus outbreak has weighed heavy on investors for weeks now, with airline stocks under pressure due to concerns over revenue lost to canceled flights, and vacationers deciding to defer travel out of fear of getting sick.
What happened Shares of American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) both traded up more than 5% on Tuesday afternoon, caught up in a broader surge higher as markets brush off concerns about the ongoing coronavirus outbreak in China. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman owns shares of, and The Motley Fool owns shares of and recommends, Delta Air Lines. The Motley Fool recommends Hawaiian Holdings.
What happened Shares of American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) both traded up more than 5% on Tuesday afternoon, caught up in a broader surge higher as markets brush off concerns about the ongoing coronavirus outbreak in China. A general sentiment that China is moving to contain the virus, and is willing to stimulate its economy to make sure there are no long-term ramifications of the outbreak, is also helping move airline shares and other stocks higher on Tuesday. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman owns shares of, and The Motley Fool owns shares of and recommends, Delta Air Lines.
What happened Shares of American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) both traded up more than 5% on Tuesday afternoon, caught up in a broader surge higher as markets brush off concerns about the ongoing coronavirus outbreak in China. A general sentiment that China is moving to contain the virus, and is willing to stimulate its economy to make sure there are no long-term ramifications of the outbreak, is also helping move airline shares and other stocks higher on Tuesday. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them!
6238.0
2020-02-04 00:00:00 UTC
Notable Tuesday Option Activity: NOW, AAL, TXT
AAL
https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-now-aal-txt-2020-02-04
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in ServiceNow Inc (Symbol: NOW), where a total of 9,530 contracts have traded so far, representing approximately 953,000 underlying shares. That amounts to about 48.5% of NOW's average daily trading volume over the past month of 2.0 million shares. Especially high volume was seen for the $350 strike call option expiring February 07, 2020, with 737 contracts trading so far today, representing approximately 73,700 underlying shares of NOW. Below is a chart showing NOW's trailing twelve month trading history, with the $350 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 49,341 contracts, representing approximately 4.9 million underlying shares or approximately 46.1% of AAL's average daily trading volume over the past month, of 10.7 million shares. Particularly high volume was seen for the $30 strike call option expiring February 21, 2020, with 3,461 contracts trading so far today, representing approximately 346,100 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $30 strike highlighted in orange: And Textron Inc (Symbol: TXT) options are showing a volume of 7,186 contracts thus far today. That number of contracts represents approximately 718,600 underlying shares, working out to a sizeable 41.6% of TXT's average daily trading volume over the past month, of 1.7 million shares. Particularly high volume was seen for the $50 strike call option expiring February 21, 2020, with 3,414 contracts trading so far today, representing approximately 341,400 underlying shares of TXT. Below is a chart showing TXT's trailing twelve month trading history, with the $50 strike highlighted in orange: For the various different available expirations for NOW options, AAL options, or TXT 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.
Particularly high volume was seen for the $30 strike call option expiring February 21, 2020, with 3,461 contracts trading so far today, representing approximately 346,100 underlying shares of AAL. Below is a chart showing NOW's trailing twelve month trading history, with the $350 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 49,341 contracts, representing approximately 4.9 million underlying shares or approximately 46.1% of AAL's average daily trading volume over the past month, of 10.7 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $30 strike highlighted in orange: And Textron Inc (Symbol: TXT) options are showing a volume of 7,186 contracts thus far today.
Below is a chart showing NOW's trailing twelve month trading history, with the $350 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 49,341 contracts, representing approximately 4.9 million underlying shares or approximately 46.1% of AAL's average daily trading volume over the past month, of 10.7 million shares. Particularly high volume was seen for the $30 strike call option expiring February 21, 2020, with 3,461 contracts trading so far today, representing approximately 346,100 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $30 strike highlighted in orange: And Textron Inc (Symbol: TXT) options are showing a volume of 7,186 contracts thus far today.
Below is a chart showing NOW's trailing twelve month trading history, with the $350 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 49,341 contracts, representing approximately 4.9 million underlying shares or approximately 46.1% of AAL's average daily trading volume over the past month, of 10.7 million shares. Particularly high volume was seen for the $30 strike call option expiring February 21, 2020, with 3,461 contracts trading so far today, representing approximately 346,100 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $30 strike highlighted in orange: And Textron Inc (Symbol: TXT) options are showing a volume of 7,186 contracts thus far today.
Particularly high volume was seen for the $30 strike call option expiring February 21, 2020, with 3,461 contracts trading so far today, representing approximately 346,100 underlying shares of AAL. Below is a chart showing TXT's trailing twelve month trading history, with the $50 strike highlighted in orange: For the various different available expirations for NOW options, AAL options, or TXT options, visit StockOptionsChannel.com. Below is a chart showing NOW's trailing twelve month trading history, with the $350 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 49,341 contracts, representing approximately 4.9 million underlying shares or approximately 46.1% of AAL's average daily trading volume over the past month, of 10.7 million shares.
6239.0
2020-02-04 00:00:00 UTC
GOL Linhas Enters Into Codeshare Agreement With American Airlines
AAL
https://www.nasdaq.com/articles/gol-linhas-enters-into-codeshare-agreement-with-american-airlines-2020-02-04
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(RTTNews) - GOL Linhas Aéreas Inteligentes S.A. (GOL) entered into a codeshare agreement with American Airlines that will offer the more daily flights between South America and the U.S. Once approved by the authorities in Brazil and the U.S., the new codeshare will enable its customers to travel seamlessly to more than 30 destinations in the U.S., GOL said in a statement. The flights will operate from GOL's hubs São Paulo, Rio de Janeiro, Brasília and Fortaleza, and will add to GOL's existing regular flights to Miami and Orlando. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
(RTTNews) - GOL Linhas Aéreas Inteligentes S.A. (GOL) entered into a codeshare agreement with American Airlines that will offer the more daily flights between South America and the U.S. Once approved by the authorities in Brazil and the U.S., the new codeshare will enable its customers to travel seamlessly to more than 30 destinations in the U.S., GOL said in a statement. The flights will operate from GOL's hubs São Paulo, Rio de Janeiro, Brasília and Fortaleza, and will add to GOL's existing regular flights to Miami and Orlando. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
(RTTNews) - GOL Linhas Aéreas Inteligentes S.A. (GOL) entered into a codeshare agreement with American Airlines that will offer the more daily flights between South America and the U.S. Once approved by the authorities in Brazil and the U.S., the new codeshare will enable its customers to travel seamlessly to more than 30 destinations in the U.S., GOL said in a statement. The flights will operate from GOL's hubs São Paulo, Rio de Janeiro, Brasília and Fortaleza, and will add to GOL's existing regular flights to Miami and Orlando. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
(RTTNews) - GOL Linhas Aéreas Inteligentes S.A. (GOL) entered into a codeshare agreement with American Airlines that will offer the more daily flights between South America and the U.S. Once approved by the authorities in Brazil and the U.S., the new codeshare will enable its customers to travel seamlessly to more than 30 destinations in the U.S., GOL said in a statement. The flights will operate from GOL's hubs São Paulo, Rio de Janeiro, Brasília and Fortaleza, and will add to GOL's existing regular flights to Miami and Orlando. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
(RTTNews) - GOL Linhas Aéreas Inteligentes S.A. (GOL) entered into a codeshare agreement with American Airlines that will offer the more daily flights between South America and the U.S. Once approved by the authorities in Brazil and the U.S., the new codeshare will enable its customers to travel seamlessly to more than 30 destinations in the U.S., GOL said in a statement. The flights will operate from GOL's hubs São Paulo, Rio de Janeiro, Brasília and Fortaleza, and will add to GOL's existing regular flights to Miami and Orlando. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
6240.0
2020-02-04 00:00:00 UTC
American Airlines Q4 Earnings Could Signal a Turnaround
AAL
https://www.nasdaq.com/articles/american-airlines-q4-earnings-could-signal-a-turnaround-2020-02-04
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American Airlines (NASDAQ: AAL) has had a rough go of it the last five years, losing nearly half of its value. Amid an onslaught of the fallout from the Boeing (NYSE: BA) 737 MAX groundings, uncertain future growth, and a weak balance sheet, things weren't looking good for American Airlines until the company reported some positive news in its fourth quarter 2019 report. Is a turnaround in store for the airline, or are its problems far from over? AAL data by YCharts A reprieve As the second-largest owner of 737 MAX aircraft behind Southwest Airlines, American Airlines has spent 10 tiresome months dealing with the consequences of an undersized fleet by canceling flights and reassessing the timeline for the MAX's return to service. American had originally planned to have 100 737 MAX 8 aircraft in its fleet, but the additional 76 aircraft, like all orders, have been placed on hold. American blamed the MAX groundings as the primary reason it didn't have better third quarter 2019 results, and in the fourth quarter of 2019, CEO Doug Parker noted the groundings have brought "a lot of uncertainty and frustration to our customers, our team and our shareholders." Parker went on to say, "The financial cost of the MAX grounding should be borne by Boeing shareholders, not American. We're pleased that recently, we reached a confidential settlement with Boeing to compensate American for the financial damages we incurred in 2019 due to the grounding of the MAX." Going forward, American has suspended flying of the MAX through June 3, 2020, and plans to hold Boeing accountable for future financial damages. Image Source: Getty Images. Addressing free cash flow In its fourth quarter 2019 report, American Airlines announced an aggressive goal of $6 billion in Free Cash Flow (FCF) over the next two years. The surge in FCF should help American fix what may be its biggest problem: debt. American Airlines has more net long-term debt than the other five major U.S. airlines combined. Also concerning is American's debt to capital (D/C) ratio, which is the highest of the group and now exceeds 100%, meaning the company is highly leveraged and prone to using debt financing over equity financing. AAL Free Cash Flow data by YCharts $6 billion in FCF over the next two years is a great goal, but American hasn't had a year of positive FCF since 2016, when it posted just under $800 million in annual FCF. Generating positive free cash flow would be a big step in the right direction for American Airlines to pay down debt and continue to distribute income to shareholders in the form of dividends. That being said, it's unlikely American will raise its dividend anytime soon, considering its quarterly payout of $0.10 per share has been unchanged since 2014. A good sign for revenue Total revenue per available seat mile, or TRASM, is a closely watched revenue metric for airline stocks. Total operating revenue divided by available seat miles equals TRASM. An available seat mile is simply a seat on the airplane flown one mile. Two hundred seats flown 2,000 miles is 400,000 available seat miles. Whether filled or not, there are several costs associated with flying that seat one mile, such as crew salaries, airport costs like landing fees, plane payments, insurance, and maintenance, taxes and charges, and the administrative costs of running the airline. Like any company, it's a good thing if costs can be limited while growing revenue. Seeing as TRASM is crucial to airline financials, it was quite the scare when American only grew TRASM 0.5% year-over-year in the fourth quarter of 2019, which came a little too close to snapping the company's streak of 12 consecutive quarters of TRASM growth. In a year where growth is expected to slow, according to United Airlines and Delta Air Lines, and American is still dealing with the MAX problem, it's impressive that the company is guiding for 0% to 2% of TRASM growth for the first quarter of 2020. What a turnaround would look like The fourth quarter of 2019 was an important quarter for American Airlines because it painted a picture of what a turnaround would look like by directly addressing free cash flow. Capital investment should start to decline as a result of the airline's completion of its "historic fleet renewal program", which would bolster free cash flow aside from organic growth. Agreements with Boeing help with the short-term pain of a diminished fleet and painstaking rescheduling. Simply put, if American hits its goal of $6 billion in FCF over the next two years, it would make the company a better candidate for a value investment given that the airline has the lowest P/E ratio of the six major U.S. airlines. American Airlines isn't out of the woods yet, but the company has constructed a plan that, if executed, could reverse the stock's downward trend. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Daniel Foelber owns shares of American Airlines Group and Boeing. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
American Airlines (NASDAQ: AAL) has had a rough go of it the last five years, losing nearly half of its value. AAL data by YCharts A reprieve As the second-largest owner of 737 MAX aircraft behind Southwest Airlines, American Airlines has spent 10 tiresome months dealing with the consequences of an undersized fleet by canceling flights and reassessing the timeline for the MAX's return to service. AAL Free Cash Flow data by YCharts $6 billion in FCF over the next two years is a great goal, but American hasn't had a year of positive FCF since 2016, when it posted just under $800 million in annual FCF.
AAL Free Cash Flow data by YCharts $6 billion in FCF over the next two years is a great goal, but American hasn't had a year of positive FCF since 2016, when it posted just under $800 million in annual FCF. American Airlines (NASDAQ: AAL) has had a rough go of it the last five years, losing nearly half of its value. AAL data by YCharts A reprieve As the second-largest owner of 737 MAX aircraft behind Southwest Airlines, American Airlines has spent 10 tiresome months dealing with the consequences of an undersized fleet by canceling flights and reassessing the timeline for the MAX's return to service.
American Airlines (NASDAQ: AAL) has had a rough go of it the last five years, losing nearly half of its value. AAL data by YCharts A reprieve As the second-largest owner of 737 MAX aircraft behind Southwest Airlines, American Airlines has spent 10 tiresome months dealing with the consequences of an undersized fleet by canceling flights and reassessing the timeline for the MAX's return to service. AAL Free Cash Flow data by YCharts $6 billion in FCF over the next two years is a great goal, but American hasn't had a year of positive FCF since 2016, when it posted just under $800 million in annual FCF.
AAL Free Cash Flow data by YCharts $6 billion in FCF over the next two years is a great goal, but American hasn't had a year of positive FCF since 2016, when it posted just under $800 million in annual FCF. American Airlines (NASDAQ: AAL) has had a rough go of it the last five years, losing nearly half of its value. AAL data by YCharts A reprieve As the second-largest owner of 737 MAX aircraft behind Southwest Airlines, American Airlines has spent 10 tiresome months dealing with the consequences of an undersized fleet by canceling flights and reassessing the timeline for the MAX's return to service.
6241.0
2020-01-31 00:00:00 UTC
Ex-Div Reminder for American Airlines Group (AAL)
AAL
https://www.nasdaq.com/articles/ex-div-reminder-for-american-airlines-group-aal-2020-01-31
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Looking at the universe of stocks we cover at Dividend Channel, on 2/4/20, American Airlines Group Inc (Symbol: AAL) will trade ex-dividend, for its quarterly dividend of $0.10, payable on 2/19/20. As a percentage of AAL's recent stock price of $27.24, this dividend works out to approximately 0.37%. In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from AAL is likely to continue, and whether the current estimated yield of 1.47% on annualized basis is a reasonable expectation of annual yield going forward. 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 $24.23 per share, with $37.23 as the 52 week high point — that compares with a last trade of $27.21. In Friday trading, American Airlines Group Inc shares are currently off about 1.7% on the day. Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
As a percentage of AAL's recent stock price of $27.24, this dividend works out to approximately 0.37%. In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from AAL is likely to continue, and whether the current estimated yield of 1.47% on annualized basis is a reasonable expectation of annual yield going forward. 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 $24.23 per share, with $37.23 as the 52 week high point — that compares with a last trade of $27.21.
Looking at the universe of stocks we cover at Dividend Channel, on 2/4/20, American Airlines Group Inc (Symbol: AAL) will trade ex-dividend, for its quarterly dividend of $0.10, payable on 2/19/20. 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 $24.23 per share, with $37.23 as the 52 week high point — that compares with a last trade of $27.21. As a percentage of AAL's recent stock price of $27.24, this dividend works out to approximately 0.37%.
Looking at the universe of stocks we cover at Dividend Channel, on 2/4/20, American Airlines Group Inc (Symbol: AAL) will trade ex-dividend, for its quarterly dividend of $0.10, payable on 2/19/20. In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from AAL is likely to continue, and whether the current estimated yield of 1.47% on annualized basis is a reasonable expectation of annual yield going forward. 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 $24.23 per share, with $37.23 as the 52 week high point — that compares with a last trade of $27.21.
As a percentage of AAL's recent stock price of $27.24, this dividend works out to approximately 0.37%. In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from AAL is likely to continue, and whether the current estimated yield of 1.47% on annualized basis is a reasonable expectation of annual yield going forward. Looking at the universe of stocks we cover at Dividend Channel, on 2/4/20, American Airlines Group Inc (Symbol: AAL) will trade ex-dividend, for its quarterly dividend of $0.10, payable on 2/19/20.
6242.0
2020-01-30 00:00:00 UTC
American Airlines Reaches Tentative Deal With Mechanics And Fleet Service Union
AAL
https://www.nasdaq.com/articles/american-airlines-reaches-tentative-deal-with-mechanics-and-fleet-service-union-2020-01-30
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(RTTNews) - American Airlines said that it reached tentative agreements with the TWU-IAM Association for new joint collective bargaining agreements that cover more than 31,000 team members. The tentative agreements are subject to ratification by Maintenance & Related and Fleet Service team members represented by the Association. The association will communicate details of the agreements to its members in the coming weeks. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
(RTTNews) - American Airlines said that it reached tentative agreements with the TWU-IAM Association for new joint collective bargaining agreements that cover more than 31,000 team members. The tentative agreements are subject to ratification by Maintenance & Related and Fleet Service team members represented by the Association. The association will communicate details of the agreements to its members in the coming weeks.
(RTTNews) - American Airlines said that it reached tentative agreements with the TWU-IAM Association for new joint collective bargaining agreements that cover more than 31,000 team members. The tentative agreements are subject to ratification by Maintenance & Related and Fleet Service team members represented by the Association. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
(RTTNews) - American Airlines said that it reached tentative agreements with the TWU-IAM Association for new joint collective bargaining agreements that cover more than 31,000 team members. The tentative agreements are subject to ratification by Maintenance & Related and Fleet Service team members represented by the Association. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
(RTTNews) - American Airlines said that it reached tentative agreements with the TWU-IAM Association for new joint collective bargaining agreements that cover more than 31,000 team members. The tentative agreements are subject to ratification by Maintenance & Related and Fleet Service team members represented by the Association. The association will communicate details of the agreements to its members in the coming weeks.
6243.0
2020-01-30 00:00:00 UTC
World Health Organization Classifies Wuhan Coronavirus as International Health Emergency
AAL
https://www.nasdaq.com/articles/world-health-organization-classifies-wuhan-coronavirus-as-international-health-emergency
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The World Health Organization (WHO) has classified the Wuhan Coronavirus as an international health emergency. Over 8,000 people have caught the virus in China, with 170 deaths resulting from it so far. The virus poses a risk of becoming a worldwide pandemic. The Centers for Disease Control and Prevention (CDC) reports that the spouse of one of the first U.S. cases has caught the virus, despite having never been to Wuhan. So far people in 19 countries have been affected, but no one has died outside of China. CDC director Robert Redfield said, "We understand that this may be concerning, but based on what we know now, we still believe the immediate risk to the American public is low." Source: Getty Images Markets affected by Wuhan Coronavirus Airlines are severely curtailing flights in and out of China. United (NASDAQ: UAL), American Airlines (NASDAQ: AAL) and Delta (NYSE: DAL) have suspended flights to and from China this week. United is down 13% for the year. Cruise lines have also been hit. Royal Caribbean (NYSE: RCL) is down 11%. Shares of smaller vaccination companies have soared. Vir Biotechnology (NASDAQ: VIR) is up 98% in 2020, and Novavax (NASDAQ: NVAX) is up 54%. The good news is that Chinese health authorities have sequenced the virus. The National Institute of Allergy and Infectious Diseases (NIAID) is working with Moderna (NASDAQ: MRNA) to produce a vaccine. The Coalition for Epidemic Preparedness Innovations (CEPI) is financing the effort. CEPI is also funding a vaccine from Inovio (NASDAQ: INO). Johnson & Johnson (NYSE: JNJ) is working on a vaccine as well. Sequencing the virus will speed up vaccination attempts. Anthony Fauci, director of Allergy and Infectious Diseases at the National Institute of Health, says clinical trials could begin in three months. 10 stocks we like better than Moderna INC When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Moderna INC wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Taylor Carmichael owns shares of Novavax. The Motley Fool owns shares of and recommends Delta Air Lines. The Motley Fool recommends Johnson & Johnson. 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.
United (NASDAQ: UAL), American Airlines (NASDAQ: AAL) and Delta (NYSE: DAL) have suspended flights to and from China this week. Source: Getty Images Markets affected by Wuhan Coronavirus Airlines are severely curtailing flights in and out of China. The National Institute of Allergy and Infectious Diseases (NIAID) is working with Moderna (NASDAQ: MRNA) to produce a vaccine.
United (NASDAQ: UAL), American Airlines (NASDAQ: AAL) and Delta (NYSE: DAL) have suspended flights to and from China this week. The National Institute of Allergy and Infectious Diseases (NIAID) is working with Moderna (NASDAQ: MRNA) to produce a vaccine. The Motley Fool owns shares of and recommends Delta Air Lines.
United (NASDAQ: UAL), American Airlines (NASDAQ: AAL) and Delta (NYSE: DAL) have suspended flights to and from China this week. The National Institute of Allergy and Infectious Diseases (NIAID) is working with Moderna (NASDAQ: MRNA) to produce a vaccine. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Taylor Carmichael owns shares of Novavax.
United (NASDAQ: UAL), American Airlines (NASDAQ: AAL) and Delta (NYSE: DAL) have suspended flights to and from China this week. CEPI is also funding a vaccine from Inovio (NASDAQ: INO). The Motley Fool owns shares of and recommends Delta Air Lines.
6244.0
2020-01-27 00:00:00 UTC
Why Shares of Travel Stocks Are Falling Today
AAL
https://www.nasdaq.com/articles/why-shares-of-travel-stocks-are-falling-today-2020-01-27
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What happened Shares of American Airlines Group (NASDAQ: AAL) fell more than 8% on Monday morning, and shares of other travel companies, including Delta Air Lines (NYSE: DAL), Carnival (NYSE: CCL) and Royal Caribbean (NYSE: RCL), opened down more than 5%, following a weekend of scary headlines concerning the coronavirus outbreak. It is still far too early to know how dangerous this virus will ultimately prove to be, but investors have seen enough to move to the sidelines on key travel names. So what The coronavirus outbreak originating in Wuhan, China, captured international attention and moved markets last week, and the news only grew more alarming over the weekend. The virus is now blamed for more than 80 deaths, and there are more than 2,700 confirmed cases on China's mainland, with more than 30,000 people under observation. Image source: Getty Images. As researchers learn more about the virus, fear is growing that it has a slow incubation period, meaning it is possible people infected with the virus can spread it before they have noticeable symptoms. The S&P 500 fell more than 1.3% at the open on Monday, in part because of concerns about the virus, and a number of travel stocks were hit particularly hard. American Airlines was the low flier among airline stocks because it is the U.S. carrier seen as most vulnerable to an unexpected drop in demand. American has the highest debt burden among major airlines. It is already facing labor unrest and is among the airlines most affected by the grounding of Boeing's 737 MAX. American Airlines shares are now down more than 13% in the last month, and other travel stocks are not far behind. Delta has actually held up better than some, but the airline is the target of concern because it owns a stake in China Eastern Airlines and has targeted that region for growth. United Airlines Holdings (NASDAQ: UAL) also traded down more than 4%. Year-to-date Travel stock data by YCharts China also accounts for about 5% of global cruise capacity and tends to be the destination for some of the higher-margin trips for cruise operators such as Carnival and Royal Caribbean, with China accounting for nearly 9% of Royal Caribbean's total revenue over the past 12 months. With cruise companies canceling trips and port calls in the country, the companies are likely to at the very least take a hit to first-quarter earnings, and they could face longer-term growth challenges. Now what The logic behind this sell-off is solid. The coronavirus outbreak is still in its early days, and it is impossible to say how widespread the outbreak will be or how long it will last. The headlines alone are likely enough to make many business travelers and vacationers think twice about booking travel right now, and that seems likely to at least temporarily cut into demand. For investors with a long-term outlook and the ability to handle volatility, this sell-off could create an opportunity to buy into some quality companies. But there is no reason to rush. We're likely to be reading headlines about the coronavirus for days, if not weeks or months, to come. 10 stocks we like better than Carnival When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Carnival wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman owns shares of Delta Air Lines. The Motley Fool owns shares of and recommends Delta Air Lines. The Motley Fool recommends Carnival. 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.
What happened Shares of American Airlines Group (NASDAQ: AAL) fell more than 8% on Monday morning, and shares of other travel companies, including Delta Air Lines (NYSE: DAL), Carnival (NYSE: CCL) and Royal Caribbean (NYSE: RCL), opened down more than 5%, following a weekend of scary headlines concerning the coronavirus outbreak. So what The coronavirus outbreak originating in Wuhan, China, captured international attention and moved markets last week, and the news only grew more alarming over the weekend. Year-to-date Travel stock data by YCharts China also accounts for about 5% of global cruise capacity and tends to be the destination for some of the higher-margin trips for cruise operators such as Carnival and Royal Caribbean, with China accounting for nearly 9% of Royal Caribbean's total revenue over the past 12 months.
What happened Shares of American Airlines Group (NASDAQ: AAL) fell more than 8% on Monday morning, and shares of other travel companies, including Delta Air Lines (NYSE: DAL), Carnival (NYSE: CCL) and Royal Caribbean (NYSE: RCL), opened down more than 5%, following a weekend of scary headlines concerning the coronavirus outbreak. Year-to-date Travel stock data by YCharts China also accounts for about 5% of global cruise capacity and tends to be the destination for some of the higher-margin trips for cruise operators such as Carnival and Royal Caribbean, with China accounting for nearly 9% of Royal Caribbean's total revenue over the past 12 months. The Motley Fool owns shares of and recommends Delta Air Lines.
What happened Shares of American Airlines Group (NASDAQ: AAL) fell more than 8% on Monday morning, and shares of other travel companies, including Delta Air Lines (NYSE: DAL), Carnival (NYSE: CCL) and Royal Caribbean (NYSE: RCL), opened down more than 5%, following a weekend of scary headlines concerning the coronavirus outbreak. American Airlines shares are now down more than 13% in the last month, and other travel stocks are not far behind. Year-to-date Travel stock data by YCharts China also accounts for about 5% of global cruise capacity and tends to be the destination for some of the higher-margin trips for cruise operators such as Carnival and Royal Caribbean, with China accounting for nearly 9% of Royal Caribbean's total revenue over the past 12 months.
What happened Shares of American Airlines Group (NASDAQ: AAL) fell more than 8% on Monday morning, and shares of other travel companies, including Delta Air Lines (NYSE: DAL), Carnival (NYSE: CCL) and Royal Caribbean (NYSE: RCL), opened down more than 5%, following a weekend of scary headlines concerning the coronavirus outbreak. American Airlines shares are now down more than 13% in the last month, and other travel stocks are not far behind. The Motley Fool owns shares of and recommends Delta Air Lines.
6245.0
2020-01-27 00:00:00 UTC
Nasdaq 100 Movers: AAL, BIIB
AAL
https://www.nasdaq.com/articles/nasdaq-100-movers%3A-aal-biib-2020-01-27
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In early trading on Monday, shares of Biogen (BIIB) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 0.3%. Year to date, Biogen has lost about 6.0% of its value. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group (AAL), trading down 6.9%. American Airlines Group is lower by about 10.3% looking at the year to date performance. Two other components making moves today are United Airlines Holdings (UAL), trading down 5.3%, and Charter Communications (CHTR), trading flat on the day on the day. VIDEO: Nasdaq 100 Movers: AAL, BIIB The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group (AAL), trading down 6.9%. VIDEO: Nasdaq 100 Movers: AAL, BIIB 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 is lower by about 10.3% looking at the year to date performance.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group (AAL), trading down 6.9%. VIDEO: Nasdaq 100 Movers: AAL, BIIB 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 is lower by about 10.3% looking at the year to date performance.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group (AAL), trading down 6.9%. VIDEO: Nasdaq 100 Movers: AAL, BIIB 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 Monday, shares of Biogen (BIIB) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 0.3%.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group (AAL), trading down 6.9%. VIDEO: Nasdaq 100 Movers: AAL, BIIB 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 is lower by about 10.3% looking at the year to date performance.
6246.0
2020-01-25 00:00:00 UTC
The Boeing 737 MAX Crisis Will Crush American Airlines' Profit Again in 2020
AAL
https://www.nasdaq.com/articles/the-boeing-737-max-crisis-will-crush-american-airlines-profit-again-in-2020-2020-01-25
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A year ago, American Airlines' (NASDAQ: AAL) management predicted that the company's adjusted earnings per share would rise to between $5.50 and $7.50 in 2019. It was an aggressive forecast, considering that adjusted EPS totaled just $4.55 in 2018. However, with fuel prices having fallen significantly in the last few months of 2018 and various other margin improvement drivers scheduled to ramp up during 2019, the guidance wasn't totally unrealistic, either. Unfortunately, the grounding of Boeing's (NYSE: BA) 737 MAX beginning last March dashed all hope of achieving the 2019 earnings target. Moreover, with the 737 MAX now likely to stay grounded for most of 2020, American Airlines' management doesn't expect meaningful margin improvement or EPS growth this year. A moving target When the Boeing 737 MAX was grounded last March, airlines initially thought it would be cleared to resume service within a few months, prior to the busy summer season. That optimistic view didn't last long. As of late April, when American Airlines held its Q1 2019earnings call the airline had removed the 737 MAX from its schedule through Aug. 19. Still, management expressed confidence (based on conversations with Boeing and the FAA) that the troubled jet would be recertified well before that date. However, Boeing and global regulators gradually identified more and more issues needing to be resolved prior to recertification. This caused the timeline for recertification to slip into the fall, then into December, and -- as of a few weeks ago -- into the first quarter of 2020. Earlier this week, Boeing acknowledged that it now expects regulators to begin recertifying the 737 MAX in mid-2020. The most recent delay is related to the aerospace giant's decision to recommend simulator training for all 737 MAX pilots. Given the lingering uncertainty over the exact timing of recertification and the time necessary to take aircraft out of storage and complete necessary crew training, this timeline almost certainly implies a return to scheduled service in the fall. The 737 MAX crisis is grounding American's earnings In its investor update last April -- six weeks after the 737 MAX was grounded -- American Airlines slashed its full-year EPS guidance to a range of $4 to $6. This reflected $350 million in lost operating income related to the grounding, as well as an uptick in fuel prices. Image source: American Airlines. Oil prices quickly receded after peaking last April, but American's earnings forecast never recovered. To some extent, that reflected the extension of the Boeing 737 MAX grounding into 2020. The full-year tally of lost operating income from the MAX grounding was approximately $550 million. Additionally, a labor contract dispute with American's mechanics led to a spike in cancellations during the spring, costing the airline hundreds of millions of dollars. On Thursday, American Airlines reported adjusted EPS of $1.15 for the fourth quarter, up from $0.97 a year earlier. That brought its full-year adjusted EPS to $4.90 -- up a modest 7.7% year over year. This was near the midpoint of American's most recent guidance range. However, it was a subpar result considering that the company's average fuel price fell by $0.16 per gallon in 2019. Looking ahead to 2020, American Airlines expects the impact of the 737 MAX grounding on earnings to be similar to what it experienced in 2019. The end result is likely to be similar, too. American's initial earnings forecast for the year calls for EPS between $4 and $6, in line with the company's post-grounding 2019 outlook and its final result for the year. The average analyst EPS estimate for 2020 recently sat at $5.10. There's still hope Had the Boeing 737 MAX grounding not occurred, American Airlines' EPS would have been nearly $1 higher in 2019. That would have put the airline's earnings comfortably within its initial guidance range of $5.50 to $7.50, albeit near the low end of the range. If the 737 MAX is recertified in June or July of this year as expected -- which is still a big if -- the grounding should have a minimal impact on American Airlines' results beyond 2020. That alone would provide a big earnings boost in 2021. Additionally, the company is poised to make substantial progress toward simplifying its fleet over the next two years or so, which should help it limit unit cost growth. On the revenue side, the expansion of its operations in its highest-margin hubs (Dallas; Charlotte, North Carolina; and Washington, D.C.) is starting to pay dividends, but the earnings boost won't fully ramp up until 2021 or 2022. Meanwhile, a sharp decline in capital expenditures should enable American to substantially reduce its debt load over the next two years. The company will also pay less for future aircraft deliveries as part of its compensation package from Boeing, contributing to lower capex going forward. There is still plenty of risk, and the airline giant has seemingly endured setback after setback in recent years, but American Airlines could finally start to hit its stride once the Boeing 737 MAX returns to service. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Adam Levine-Weinberg owns shares of American Airlines Group. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
A year ago, American Airlines' (NASDAQ: AAL) management predicted that the company's adjusted earnings per share would rise to between $5.50 and $7.50 in 2019. A moving target When the Boeing 737 MAX was grounded last March, airlines initially thought it would be cleared to resume service within a few months, prior to the busy summer season. Additionally, a labor contract dispute with American's mechanics led to a spike in cancellations during the spring, costing the airline hundreds of millions of dollars.
A year ago, American Airlines' (NASDAQ: AAL) management predicted that the company's adjusted earnings per share would rise to between $5.50 and $7.50 in 2019. Moreover, with the 737 MAX now likely to stay grounded for most of 2020, American Airlines' management doesn't expect meaningful margin improvement or EPS growth this year. The 737 MAX crisis is grounding American's earnings In its investor update last April -- six weeks after the 737 MAX was grounded -- American Airlines slashed its full-year EPS guidance to a range of $4 to $6.
A year ago, American Airlines' (NASDAQ: AAL) management predicted that the company's adjusted earnings per share would rise to between $5.50 and $7.50 in 2019. Moreover, with the 737 MAX now likely to stay grounded for most of 2020, American Airlines' management doesn't expect meaningful margin improvement or EPS growth this year. The 737 MAX crisis is grounding American's earnings In its investor update last April -- six weeks after the 737 MAX was grounded -- American Airlines slashed its full-year EPS guidance to a range of $4 to $6.
A year ago, American Airlines' (NASDAQ: AAL) management predicted that the company's adjusted earnings per share would rise to between $5.50 and $7.50 in 2019. Earlier this week, Boeing acknowledged that it now expects regulators to begin recertifying the 737 MAX in mid-2020. The 737 MAX crisis is grounding American's earnings In its investor update last April -- six weeks after the 737 MAX was grounded -- American Airlines slashed its full-year EPS guidance to a range of $4 to $6.
6247.0
2020-01-25 00:00:00 UTC
Winners and Losers From Boeing's 'Even Further' MAX Delay
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https://www.nasdaq.com/articles/winners-and-losers-from-boeings-even-further-max-delay-2020-01-25
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On Jan. 21, 2020, Boeing (NYSE: BA) announced a further delay in its anticipated ungrounding of the 737 MAX, stating expectations for mid-2020. The January release was a painful follow-up to a December 2019 announcement in which Boeing said it would suspend 737 MAX production starting in January 2020 as a result of uncertain Federal Aviation Administration and global regulatory authorities' reservice approval. The news is crippling to Boeing, which had reached production of around 400 MAX planes that it cannot sell despite thousands of pre-orders from airlines across the world. Worst of all is that mid-2020 is simply Boeing's best guess, and that means airlines who expected to be flying dozens of 737 MAX aircraft by now might have fewer planes to respond to the summer travel season this year. Here are the biggest winners and losers from Boeing's announcement, some of which may surprise you. Winner: Airbus. Loser: Boeing EADSY data by YCharts. Boeing is the biggest loser, suffering more than just a revenue hit. The company's rival, Airbus (OTC: EADSY), had a backlog of 7,471 as of Oct. 31, 2019, versus Boeing's 5,488 backlog as of September 30, 2019. Airbus makes a similar product to Boeing's 737, the Airbus 320, which, like Boeing's 737, makes up the vast majority of production. According to Forecast International, 88% of Airbus' backlog is A220 and A320 ceo/neo family narrow-bodies. 4,406, or 80% of Boeing's backlog, are 737s. For years, Boeing was the undisputed leader in the aircraft business, but that's no longer the case. Although Boeing is about 50% larger than Airbus by market capitalization, its lead has been narrowing. The MAX delays further encourage airlines to question their fleets of the future. The most notable recent announcement came in December 2019, when United Airlines (NASDAQ: UAL) ordered 50 new Airbus A321s to replace its Boeing 757-200 planes, which are no longer in production. Boeing's superior engineering and craftsmanship are fleeting arguments in the face of a rival company with a competitive product and newfound pricing power. Image Source: Getty Images. Winner: Delta Air Lines Delta Air Lines (NYSE: DAL), the largest U.S. airline by market capitalization, doesn't have any 737 MAX aircraft in its fleet. This gives Delta a distinct advantage over other airlines who forecasted flights with the 737 MAX. Delta's $7.31 2019 earnings per share (EPS) represented 30% year-over-year (YoY) growth. With a 2020 outlook of $6.75 to $7.75 EPS, Delta's growth is expected to slow, but its earnings, compared with the price, make it a powerhouse value stock. Winner: Alaska Air Group Alaska Air Group (NYSE: ALK) doesn't have any 737 MAX planes in its fleet of 166 Boeing 737 aircraft, 72 Airbus A320 family aircraft, 34 Bombardier Q400 aircraft, and 60 Embraer 175 aircraft. In the third quarter of 2019, Alaska was able to grow net income a whopping 48% YoY, far surpassing even Delta's 29% or United's 31% over the same period. Winner: JetBlue Airways JetBlue Airways (NASDAQ: JBLU) will need all the help it can get in 2020. The company's COO, Joanna Geraghty, "expects low-single-digit RASM growth for 2020." RASM, or revenue per available seat mile, is a key revenue metric for airlines. Although in line with guidance, RASM declined 0.9% year over year in Q3 2019 and 2.7% year over year in Q4 2019, as reported on Jan. 23. Fortunately for JetBlue, the company is the only major U.S. airline that doesn't operate Boeing planes in its fleet, meaning JetBlue should have no problem filling its expected 14 Airbus orders for 2020. Loser: Southwest Airlines As an exclusive operator of Boeing aircraft and the largest current holder of grounded 737 MAX planes, Southwest Airlines (NYSE: LUV) takes the cake as the greatest loser among airlines. Southwest was originally expecting 113 737s by year-end 2020, a forecast that continues to look all the more unlikely. On Dec. 17, 2019, Southwest delayed scheduling MAX flights until mid-April before pushing that forecast to June 6, 2020. But Southwest's press release came five days before Boeing's announcement, meaning Southwest will likely be forced to delay scheduling MAX flights until late summer or early fall. Airlines like Southwest have little choice but to remove the MAX from any flight schedules until at least a few months after Boeing's latest estimates, or risk cancellations and jeopardizing customers' loyalty. Adjusting from April 14 to June 6, Southwest removed 330 weekday flights from its schedule out of a "total peak-day schedule of more than 4,000 daily flights." That being said, Southwest achieved a record third quarter in 2019 despite the MAX delays. Southwest has the lowest net total long-term debt and the lowest price-to-free-cash-flow ratio of the largest six U.S. airlines by market capitalization, a testament to its financial strength. Southwest is doing just about everything in its control to improve the situation, but there's no overstating the negative effects the MAX groundings are having on its earnings, as well as its ability to accurately schedule flights. Loser: American Airlines American Airlines (NASDAQ: AAL) is already facing some serious challenges as the worst-performing major U.S. airline stock over the past five years. American Airlines has more net long-term debt than the other five major U.S. airlines combined. Also concerning is American's debt-to-capital (D/C) ratio, which is the highest of the group and now exceeds 100%, meaning the company is highly leveraged and prone to using debt financing over equity financing. The company currently has 24 MAX planes in its fleet, with plans to order 76 more for a total of 100. Loser: United Airlines On Jan. 21, United Airlines reported Q4 2019 earnings. After a slew of analyst questions regarding the MAX and its impact on United's earnings, it was at the very end of the call when Andrew Nocella, executive vice president and chief commercial officer, stated, "We do not anticipate flying the MAX this summer." The harsh reality that the MAX will likely remain grounded during the peak travel season from June to August will undoubtedly weigh on United's 2020 earnings. United also anticipates that the grounding of the MAX effectively creates "about 1 to 2 points of CASM "ex pressure." CASM, or cost per available seat mile, rose 1% in 2019, but management expects it would have been flat or negative if it weren't for the MAX groundings. If the MAX is grounded for the whole year, it will up United's CASM closer to 2%. Investors should be aware that the groundings not only result in lost revenue for affected airlines but also drive costs up, since planes with lower capacity tend to have a higher CASM than larger planes, like the MAX, have. Delta and United had excellent 2019 earnings, but both expect 2020 to be slower. For United, that could mean some seriously disappointing comps given its exposure to the MAX. United currently has 14 MAX planes in its fleet with orders for over 100 more. BA data by YCharts. Key takeaways There's no denying that Boeing stock is a tough pill to swallow in the near term, especially given the fierce competition. Boeing will likely remain in the doghouse for the first half of the year and lose further ground to Airbus. That being said, it could return to be a premium dividend stock over the long term if the company handles these next few months well in an effort to rectify previous transgressions. Southwest Airlines remains a premium value stock and one of the healthiest airlines from a financial perspective, but it also is the most severely affected by the MAX groundings. American and United are also negatively impacted, whereas Alaska and JetBlue gain a distinct advantage as smaller airlines operating without the burden of commitment to the MAX. Delta Airlines, given its size and monster 2019 performance, looks to further separate itself from the pack as it rides the tailwinds of its lack of exposure to the MAX groundings. 10 stocks we like better than Boeing When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Boeing wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Daniel Foelber owns shares of American Airlines Group, Boeing, and Southwest Airlines. The Motley Fool owns shares of and recommends Delta Air Lines and Southwest Airlines. The Motley Fool recommends Alaska Air Group 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.
Loser: American Airlines American Airlines (NASDAQ: AAL) is already facing some serious challenges as the worst-performing major U.S. airline stock over the past five years. Worst of all is that mid-2020 is simply Boeing's best guess, and that means airlines who expected to be flying dozens of 737 MAX aircraft by now might have fewer planes to respond to the summer travel season this year. The most notable recent announcement came in December 2019, when United Airlines (NASDAQ: UAL) ordered 50 new Airbus A321s to replace its Boeing 757-200 planes, which are no longer in production.
Loser: American Airlines American Airlines (NASDAQ: AAL) is already facing some serious challenges as the worst-performing major U.S. airline stock over the past five years. Winner: Delta Air Lines Delta Air Lines (NYSE: DAL), the largest U.S. airline by market capitalization, doesn't have any 737 MAX aircraft in its fleet. Winner: Alaska Air Group Alaska Air Group (NYSE: ALK) doesn't have any 737 MAX planes in its fleet of 166 Boeing 737 aircraft, 72 Airbus A320 family aircraft, 34 Bombardier Q400 aircraft, and 60 Embraer 175 aircraft.
Loser: American Airlines American Airlines (NASDAQ: AAL) is already facing some serious challenges as the worst-performing major U.S. airline stock over the past five years. Winner: Alaska Air Group Alaska Air Group (NYSE: ALK) doesn't have any 737 MAX planes in its fleet of 166 Boeing 737 aircraft, 72 Airbus A320 family aircraft, 34 Bombardier Q400 aircraft, and 60 Embraer 175 aircraft. Loser: Southwest Airlines As an exclusive operator of Boeing aircraft and the largest current holder of grounded 737 MAX planes, Southwest Airlines (NYSE: LUV) takes the cake as the greatest loser among airlines.
Loser: American Airlines American Airlines (NASDAQ: AAL) is already facing some serious challenges as the worst-performing major U.S. airline stock over the past five years. The most notable recent announcement came in December 2019, when United Airlines (NASDAQ: UAL) ordered 50 new Airbus A321s to replace its Boeing 757-200 planes, which are no longer in production. On Dec. 17, 2019, Southwest delayed scheduling MAX flights until mid-April before pushing that forecast to June 6, 2020.
6248.0
2020-01-24 00:00:00 UTC
Stock Market Today: Rally Over?; Apple TV+ Count
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https://www.nasdaq.com/articles/stock-market-today%3A-rally-over-apple-tv-count-2020-01-24
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Did Friday’s selloff catch you off guard? The S&P 500 shed over 1% at one point, as investors book profits and pare down risk ahead of the weekend in thestock market today The coronavirus continues to drive the narrative. While the World Health Organization said on Thursday that the virus strain not yet , traders and investors are unsure how to process the situation. For many observers though, it’s simply an opportunity to sell off. Meaning that, the market has been too hot and any excuse to pullback a bit is in play. Stocks have been on a steady ascent, and at this point, even an 8% to 10% correction from the highs would still leave the technicals in pretty good shape. The coronavirus has a few memory sensors tingling back to late-Q3 early-Q4 2014, when the Ebola scare sent the market lower by almost 10%. And remember, that was mainly out of Africa. There are a lot more people in China doing a lot more traveling and working in a much larger economy. Source: Chart courtesy of StockCharts.com So if the headlines continue to worsen, perhaps we’ll continue to see some air leave the market. Movers in the Stock Market Today Boeing (NYSE:) was one of the wildest movers today. Shares sank on reports that the company is mulling a production cut for its 787 Dreamliner jet. So how did the stock surge from the lows and end higher by 1.7%? from the FAA now suggest that the 737 MAX may be reinstated before mid-year. Earlier this week, BA shares sold off on reports of a software issue and a possible delay of the 737 MAX until June or July. Friday’s news also sent Southwest Airlines (NYSE:) from negative to positive territory, and helped alleviate some of the losses in American Airlines (NYSE:) and United Airlines (NYSE:). Broadcom (NASDAQ:) initially jumped over 3% to new 52-week highs, although most of those gains evaporated on the back of market-wide selling. In any regard, shares were on the rise after the company agreed to two multi-year deals to supply wireless components to Apple (NASDAQ:). The agreement could be worth up to $15 billion in revenue for AVGO. Apple Speaking of Apple, the company has garnered more than 33 million U.S. subscribers for its Apple TV+ service. That’s behind Netflix’s (NASDAQ:) 61.3 million subscribers and Amazon’s (NASDAQ:) 42.2 million Prime Video subs, but ahead of Disney’s (NYSE:) Disney+ subscribers of 23.2 million. Honestly though, the figures for both Disney+ and Apple TV+ are impressive given that both platforms just launched a few months ago. It may make competition even harder for Comcast’s (NASDAQ:) coming Peacock service. Lastly for Apple, the stock received yet another price target hike from Wedbush analyst Dan Ives. Ives has been bullish on Apple for a while now, but took his price target from $350 to $400 on more 5G optimism. That wasn’t the only call regarding Apple and 5G, although the sentiment is not shared. Rosenblatt analysts that “the market has become too enthusiastic about the upcoming 5G cycle. We expect the cycle to be similar to a regular smartphone upgrade cycle (or even slower than a regular upgrade cycle) due to consumers waiting for 5G networks to get better and 5G phone prices to drop.” While the analyst raised their price target by $100, it was only up from $150 to $250, which doesn’t exactly come across as bullish as Apple recently hit a high of $323. Heard on the Street Disney Shanghai will be closed on Saturday, as to not aid in the spread of the coronavirus. That’s even as the Chinese New Year gets underway. That didn’t stop Morgan Stanley analysts from feeling bullish on the stock though. They upped their price target to $170. That’s also despite the . Keybanc analysts are feeling bullish on big tech. In particular, they like Facebook (NASDAQ:) and Alphabet (NASDAQ:, NASDAQ:GOOGL), raising their price target to $263 and $1,749, respectively. Higher valuations, strong growth and free cash flow should drive the stocks higher, they say. Finally, Intel (NASDAQ:) stock tacked on 8.1% after better-than-expected fourth-quarter results. In fact, INTC smoked earnings and revenue estimates and provided robust guidance. However, that didn’t stop Loop Capital from downgrading the stock from “hold” to “sell.” Although they did raise their price target from $50 to $59. Bret Kenwell is the manager and author of and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AVGO, AMZN, AAPL and DIS. The post 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.
The S&P 500 shed over 1% at one point, as investors book profits and pare down risk ahead of the weekend in thestock market today The coronavirus continues to drive the narrative. Earlier this week, BA shares sold off on reports of a software issue and a possible delay of the 737 MAX until June or July. In any regard, shares were on the rise after the company agreed to two multi-year deals to supply wireless components to Apple (NASDAQ:).
The S&P 500 shed over 1% at one point, as investors book profits and pare down risk ahead of the weekend in thestock market today The coronavirus continues to drive the narrative. That’s behind Netflix’s (NASDAQ:) 61.3 million subscribers and Amazon’s (NASDAQ:) 42.2 million Prime Video subs, but ahead of Disney’s (NYSE:) Disney+ subscribers of 23.2 million. In particular, they like Facebook (NASDAQ:) and Alphabet (NASDAQ:, NASDAQ:GOOGL), raising their price target to $263 and $1,749, respectively.
That’s behind Netflix’s (NASDAQ:) 61.3 million subscribers and Amazon’s (NASDAQ:) 42.2 million Prime Video subs, but ahead of Disney’s (NYSE:) Disney+ subscribers of 23.2 million. We expect the cycle to be similar to a regular smartphone upgrade cycle (or even slower than a regular upgrade cycle) due to consumers waiting for 5G networks to get better and 5G phone prices to drop.” While the analyst raised their price target by $100, it was only up from $150 to $250, which doesn’t exactly come across as bullish as Apple recently hit a high of $323. In particular, they like Facebook (NASDAQ:) and Alphabet (NASDAQ:, NASDAQ:GOOGL), raising their price target to $263 and $1,749, respectively.
Apple Speaking of Apple, the company has garnered more than 33 million U.S. subscribers for its Apple TV+ service. Ives has been bullish on Apple for a while now, but took his price target from $350 to $400 on more 5G optimism. In particular, they like Facebook (NASDAQ:) and Alphabet (NASDAQ:, NASDAQ:GOOGL), raising their price target to $263 and $1,749, respectively.
6249.0
2020-01-24 00:00:00 UTC
Why Airline Stocks Are Declining Today
AAL
https://www.nasdaq.com/articles/why-airline-stocks-are-declining-today-2020-01-24
nan
nan
What happened Concerns about the coronavirus outbreak in China weighed on airline stocks on Friday, with shares of American Airlines Group (NASDAQ: AAL) and United Holdings (NASDAQ: UAL) each trading down more than 5% and Hawaiian Holdings (NASDAQ: HA) down more than 4%. It's far too soon to say for sure how bad the outbreak will get, or how widespread it will become, but investors aren't in a mood to hang around to find out. So what International public health experts are carefully monitoring an outbreak originating in Wuhan, China, that to date has infected more than 830 and killed at least 26. Most of the cases so far have been in China; however, the Centers for Disease Control and Prevention (CDC) on Friday confirmed a second U.S. case, and France confirmed the first two cases in Europe. Image source: Getty Images. The CDC continues to downplay the risk of an outbreak in the United States, but headlines out of China about a spreading infection and government efforts to quarantine large cities offer reason for concern. Airline stocks figure to be among the hardest-hit sectors by a prolonged outbreak, as it would likely limit business and vacation travel. American Airlines is seen as particularly vulnerable to an unexpected demand shock because it has the highest debt burden among major airlines. American is already facing labor unrest and is among the airlines most impacted by the grounding of Boeing's 737 MAX. Among other large airlines, shares of Delta Air Lines (NYSE: DAL) traded down more than 3% and Southwest Airlines (NYSE: LUV) shares were down less than 1%. Delta, which owns a stake in one of China's largest airlines, was hit hardest earlier in the week, and Southwest's primarily domestic network is less vulnerable to a slowdown in international travel. Now what It is far too soon to say whether investors are overreacting, or underreacting, to the headlines and images coming out of China. Yet from what we know so far, it doesn't seem to me that we are in the early stages of a global pandemic that will decimate travel for months if not years to come. Airline stocks will likely be volatile while this story plays out, and it seems possible that analysts will at least have to bring down first-quarter estimates due to the coronavirus scare. But for long-term holders able to ride out the turbulence, I see no reason to sell at this time. The airline industry remains much healthier than it has been through most of its history, and all of the carriers should have the resources to ride out an outbreak similar in scale to the SARS outbreak in 2003. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman owns shares of Delta Air Lines. The Motley Fool owns shares of and recommends Delta Air Lines and Southwest Airlines. The Motley Fool recommends Hawaiian Holdings. 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.
What happened Concerns about the coronavirus outbreak in China weighed on airline stocks on Friday, with shares of American Airlines Group (NASDAQ: AAL) and United Holdings (NASDAQ: UAL) each trading down more than 5% and Hawaiian Holdings (NASDAQ: HA) down more than 4%. So what International public health experts are carefully monitoring an outbreak originating in Wuhan, China, that to date has infected more than 830 and killed at least 26. The CDC continues to downplay the risk of an outbreak in the United States, but headlines out of China about a spreading infection and government efforts to quarantine large cities offer reason for concern.
What happened Concerns about the coronavirus outbreak in China weighed on airline stocks on Friday, with shares of American Airlines Group (NASDAQ: AAL) and United Holdings (NASDAQ: UAL) each trading down more than 5% and Hawaiian Holdings (NASDAQ: HA) down more than 4%. Among other large airlines, shares of Delta Air Lines (NYSE: DAL) traded down more than 3% and Southwest Airlines (NYSE: LUV) shares were down less than 1%. The Motley Fool owns shares of and recommends Delta Air Lines and Southwest Airlines.
What happened Concerns about the coronavirus outbreak in China weighed on airline stocks on Friday, with shares of American Airlines Group (NASDAQ: AAL) and United Holdings (NASDAQ: UAL) each trading down more than 5% and Hawaiian Holdings (NASDAQ: HA) down more than 4%. Among other large airlines, shares of Delta Air Lines (NYSE: DAL) traded down more than 3% and Southwest Airlines (NYSE: LUV) shares were down less than 1%. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
What happened Concerns about the coronavirus outbreak in China weighed on airline stocks on Friday, with shares of American Airlines Group (NASDAQ: AAL) and United Holdings (NASDAQ: UAL) each trading down more than 5% and Hawaiian Holdings (NASDAQ: HA) down more than 4%. * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! The Motley Fool owns shares of and recommends Delta Air Lines and Southwest Airlines.
6250.0
2020-01-24 00:00:00 UTC
Noteworthy Friday Option Activity: AAL, DLR, ANTM
AAL
https://www.nasdaq.com/articles/noteworthy-friday-option-activity%3A-aal-dlr-antm-2020-01-24
nan
nan
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 64,534 contracts has been traded thus far today, a contract volume which is representative of approximately 6.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 76.3% of AAL's average daily trading volume over the past month, of 8.5 million shares. Especially high volume was seen for the $23 strike put option expiring March 20, 2020, with 7,288 contracts trading so far today, representing approximately 728,800 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $23 strike highlighted in orange: Digital Realty Trust Inc (Symbol: DLR) saw options trading volume of 8,051 contracts, representing approximately 805,100 underlying shares or approximately 59.6% of DLR's average daily trading volume over the past month, of 1.4 million shares. Particularly high volume was seen for the $120 strike put option expiring April 17, 2020, with 3,914 contracts trading so far today, representing approximately 391,400 underlying shares of DLR. Below is a chart showing DLR's trailing twelve month trading history, with the $120 strike highlighted in orange: And Anthem Inc (Symbol: ANTM) saw options trading volume of 6,363 contracts, representing approximately 636,300 underlying shares or approximately 58.2% of ANTM's average daily trading volume over the past month, of 1.1 million shares. Especially high volume was seen for the $270 strike put option expiring February 21, 2020, with 1,636 contracts trading so far today, representing approximately 163,600 underlying shares of ANTM. Below is a chart showing ANTM's trailing twelve month trading history, with the $270 strike highlighted in orange: For the various different available expirations for AAL options, DLR options, or ANTM 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.
Especially high volume was seen for the $23 strike put option expiring March 20, 2020, with 7,288 contracts trading so far today, representing approximately 728,800 underlying shares of AAL. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 64,534 contracts has been traded thus far today, a contract volume which is representative of approximately 6.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 76.3% of AAL's average daily trading volume over the past month, of 8.5 million shares.
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 64,534 contracts has been traded thus far today, a contract volume which is representative of approximately 6.5 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing AAL's trailing twelve month trading history, with the $23 strike highlighted in orange: Digital Realty Trust Inc (Symbol: DLR) saw options trading volume of 8,051 contracts, representing approximately 805,100 underlying shares or approximately 59.6% of DLR's average daily trading volume over the past month, of 1.4 million shares. That number works out to 76.3% of AAL's average daily trading volume over the past month, of 8.5 million shares.
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 64,534 contracts has been traded thus far today, a contract volume which is representative of approximately 6.5 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing AAL's trailing twelve month trading history, with the $23 strike highlighted in orange: Digital Realty Trust Inc (Symbol: DLR) saw options trading volume of 8,051 contracts, representing approximately 805,100 underlying shares or approximately 59.6% of DLR's average daily trading volume over the past month, of 1.4 million shares. That number works out to 76.3% of AAL's average daily trading volume over the past month, of 8.5 million shares.
Especially high volume was seen for the $23 strike put option expiring March 20, 2020, with 7,288 contracts trading so far today, representing approximately 728,800 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $23 strike highlighted in orange: Digital Realty Trust Inc (Symbol: DLR) saw options trading volume of 8,051 contracts, representing approximately 805,100 underlying shares or approximately 59.6% of DLR's average daily trading volume over the past month, of 1.4 million shares. Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 64,534 contracts has been traded thus far today, a contract volume which is representative of approximately 6.5 million underlying shares (given that every 1 contract represents 100 underlying shares).
6251.0
2020-01-24 00:00:00 UTC
Daily Markets: Coronavirus Escalation Forces Companies To React
AAL
https://www.nasdaq.com/articles/daily-markets%3A-coronavirus-escalation-forces-companies-to-react-2020-01-24
nan
nan
Today’s Big Picture Despite a rough start yesterday, the major US equity indices managed to close little changed after the World Health Organization (WHO) calmed rising fears around the coronavirus coming out of China. The WHO's declaration that coronavirus is not a global emergency helped travel stocks such as American Airlines (AAL) and United Airlines (UAL) rebound. In contrast to the WHO, however, yesterday the Centers for Disease Control and Prevention (CDC) escalated its health warning to a level 3. Overnight things coronavirus continued to escalate and as we write today's Daily Markets note, there are 875 confirmed cases with reported deaths now totaling 26, and all but two of China's 31 provinces and municipalities reporting cases of the virus. In response, China has instituted travel restrictions that will affect at least 20 million people across 10 cities. The big concern here is how the outbreak will impact China's Lunar New Year holiday season that spans Jan. 25- Feb. 8. The restricted travel is likely to hit consumer-related activity hard during the holiday season, and we are already starting to see companies such as Walt Disney (DIS) take action while others, like Remy Cointreau (REMYY) are warning over the potential impact to their business - we discuss both below. Until the virus is contained, we suspect the ranks of companies taking action and issues warnings will only grow in size as will the impact on China's economy in the current quarter. The Shanghai market was closed for the first day of the Lunar New Year festival, the Hang Seng finished 0.2% higher on a shortened session and Japan’s Nikkei finished with a gain of 0.1%. European equities are higher following the WHO's declaration that coronavirus is not a global emergency and this morning's Flash January IHS Markit Eurozone Manufacturing PMI that came in at 47.8 vs. the consensus of 46.8. US equity futures point to a rebound at the market open as the indices look to recover the week's lost ground for the Dow Jones Industrial Average and the S&P 500 as investors digest corporate earnings and continue to assess the impact to be had of the coronavirus. Data Download Earlier today, we received several January Flash PMI reports, which offer the first take on how the global economy fared entering the new year: The Flash January Jibun Bank Japan Composite PMI rose to 51.1 from 48.6 in December, led by a rebound in the Services component (52.1 in January vs. 49.4 in December) while Manufacturing activity continued to contract month over month (49.3 vs. December’s 48.4). The Flash January IHS Markit Eurozone Composite PMI registered an unchanged reading of 50.9 falling short of the expected 51.2. The Services component slipped to 52.2 in January from 52.8 in December, while the Manufacturing economy contracted at a slower pace, coming in at 47.8 vs. 46.3 in December. The IHS Markit January Flash PMI for Germany rebounded to 51.1, up from December's 50.2, marking a five-month high. The month over month improvement was led by a faster-growing Services economy (54.2 vs. 52.9 in December), while the country's Manufacturing activity improved but remained firmly in contraction territory (45.2 vs. December's 43.7). Later this morning IHS Markit will publish its January Flash for the US and investors will be sizing up the report relative to the December Composite PMI reading of 52.7 that saw Services come in at 52.8 and Manufacturing at 52.4. Stocks to Watch American Express (AXP) reported December quarter EPS of $2.03, $0.02 ahead of the consensus forecast; revenue for the quarter rose 8.6% year over year to $11.37 billion, matching expectations. The quarter marked the company’s 10th consecutive quarter of FX-adjusted revenue growth at or above 8%. During the quarter, 70% of the company’s new Card Members opted for fee-based products. For 2020, American Express sees FX-adjusted revenue rising 8%-10% YoY and EPS in the range of $8.85-$9.25 vs 2019’s EPS of $8.20. Shares of mobile infrastructure company Ericsson (ERIC) are down in pre-market trading despite in-line December quarter results as the company shared its operating expense will trend higher in 2020 due to spending on “digitalization, compliance, and security." With Ericsson retaking the 5G lead with 78 commercial 5G agreements and 24 live 5G networks on four continents, we suspect 2020 margins may also reflect some aggressive pricing to win back share from the likes of Huawei and Nokia (NOK). We'd also note Ericsson's comment on the slowdown in its North American business during the quarter, which was tied to the pending merger between T-Mobile (TMUS) and Sprint (S). No surprise there as should the two successfully merge, the combined entity will likely rationalize capital spending as well as suppliers. Shares of Remy Martin cognac and Cointreau liquor, Remy Cointreau came under pressure earlier today as the company reported its quarterly sales fell 11.3% and suspended its guidance. Sales for the company's cognac in Hong Kong were already under pressure due to the protests and warned about the potential impact of the coronavirus outbreak on demand for its premium cognac in China during the Lunar New Year holiday. As coronavirus concerns spread, Walt Disney announced, “Shanghai Disney Resort is temporarily closing Shanghai Disneyland, Disneytown including Walt Disney Grand Theatre and Wishing Star Park, starting January 25, 2020.” A reopening date is TBD. Chipmaker Broadcom (AVGO) announced inked two multi-year deals for higher performance wireless components and modules with Apple (AAPL). Per a filing with the SEC, over the next three and a half years these agreements are expected to generate revenue of around $15 billion from Apple products launched beginning in January 2020. After denying the company was for sale earlier this month, Grubhub (GRUB) CEO Matt Maloney shared the company would "evaluate any offer" and there is a "reckoning coming to the industry." While we tend not to engage in rumor-mongering, likely potential suitors could include Google (GOOGL) as well as Oracle (ORCL), which acquired hospitality software company MICROS in 2014. Today, the Department of Homeland Security will publish a report outlining its immediate actions and longer-term goals for enlisting online players to combat counterfeits. This follows the phase one agreement that requires China to take additional steps against counterfeiters or face enforcement actions that could trigger new tariffs. Digital shopping hub companies to watch include Amazon (AMZN), Shopify (SHOP), Walmart (WMT), Alibaba (BABA), and JD.com (JD). Activision’s (ATVI) Call of Duty League named its initial sponsors for the 2020 season, which includes’ PepsiCo’s (PEP) Mountain Dew, Sony (SNE) PlayStation, Astro Gaming, Scuf Gaming and the US Air Force. More layoffs ahead at Union Pacific (UNP). The company aims to operate its railroad with ~3,000 fewer employees in 2020 as it turns to its new operating plan that runs fewer, longer trains. Such a cut equates to roughly 8% of the company’s workforce and would follow the company’s 2019 staff reduction of 11%. Associated Capital Group (AC), a diversified global financial services company, fell over 17% yesterday after lowering guidance for the December quarter to be significantly weaker than for the same quarter in 2018. Citrix Systems (CTXS) rose over 7% yesterday after the company reported December quarter results that beat expectations. Intel (INTC) shares rose more than 7% in extending trading yesterday after the company reported better-than-expected top and bottom-line results. It also forecasted earnings for the March quarter and for full-year 2020 that were higher than expected. FuelCell Energy (FCEL) closed down over 21% yesterday after reporting December quarter results that were a major disappointment to investors. This comes after shares were a major Nasdaq comeback story, rising from an all-time low of $0.13 June 26, 2019, to reach $3.00 before Wednesday's earnings release. General Electric (GE) found itself in the news yesterday when the Food and Drug Administration releases a warning concerning a vulnerability in certain health care data equipment made by the company - an area of concern we discuss frequently as part of the Foxberry Tematica Research Cybersecurity and Data Privacy Index. Sonos (SONO) CEO Patrick Spence apologized to customers yesterday after the company announced that legacy speakers will stop getting new features beginning in May, but will continue to get updates for bug fixes and security patches. TBD is this affects future sales. Hawkins is not-so-silently fuming after having purchased a mind-boggling number of Sonos devices. TBD if future customers and shareholders will penalize the company for this decision. Yesterday Moody’s Investors Services warned that default risks are rising for the nearly $1.2 trillion of speculative-grade loans and bonds and related instruments maturing from 2020 through 2024. This is record level, up 14% from 2019. Moody’s specifically mentioned that companies including Newell Brands (NWL), Western Digital (WDC) and Elanco Animal Health (ELAN), all of which carry Baa3 negative ratings, continue to risk falling to speculative grade. After today’s US equity markets close, there are no expected earnings reports to be had but with more than 420 on deck next week vs. 207 this week, investors looking to get a jump on things may want to visit Nasdaq’s earnings calendar page. On the Horizon Upcoming IPOs: For a complete list of upcoming IPOs by month, please visit the Nasdaq IPO Calendar. Dates to mark: Jan. 22 - Jan 25: World Economic Forum Jan 28: Before the opening of trading Paycom (PAYC) will replace WellCare (WCG) in the S&P 500 Jan 28-29: Federal Reserve FOMC Meeting Jan 31: Brexit deadline Feb. 24-27: Mobile World Congress Thoughts for the Day “When things aren’t working, perhaps the universe is trying to save you.” Disclosures PepsiCo (PEP) and Walmart (WMT) are constituents in Tematica Research's 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.
The WHO's declaration that coronavirus is not a global emergency helped travel stocks such as American Airlines (AAL) and United Airlines (UAL) rebound. Today’s Big Picture Despite a rough start yesterday, the major US equity indices managed to close little changed after the World Health Organization (WHO) calmed rising fears around the coronavirus coming out of China. US equity futures point to a rebound at the market open as the indices look to recover the week's lost ground for the Dow Jones Industrial Average and the S&P 500 as investors digest corporate earnings and continue to assess the impact to be had of the coronavirus.
The WHO's declaration that coronavirus is not a global emergency helped travel stocks such as American Airlines (AAL) and United Airlines (UAL) rebound. Data Download Earlier today, we received several January Flash PMI reports, which offer the first take on how the global economy fared entering the new year: The Flash January Jibun Bank Japan Composite PMI rose to 51.1 from 48.6 in December, led by a rebound in the Services component (52.1 in January vs. 49.4 in December) while Manufacturing activity continued to contract month over month (49.3 vs. December’s 48.4). Stocks to Watch American Express (AXP) reported December quarter EPS of $2.03, $0.02 ahead of the consensus forecast; revenue for the quarter rose 8.6% year over year to $11.37 billion, matching expectations.
The WHO's declaration that coronavirus is not a global emergency helped travel stocks such as American Airlines (AAL) and United Airlines (UAL) rebound. Data Download Earlier today, we received several January Flash PMI reports, which offer the first take on how the global economy fared entering the new year: The Flash January Jibun Bank Japan Composite PMI rose to 51.1 from 48.6 in December, led by a rebound in the Services component (52.1 in January vs. 49.4 in December) while Manufacturing activity continued to contract month over month (49.3 vs. December’s 48.4). Stocks to Watch American Express (AXP) reported December quarter EPS of $2.03, $0.02 ahead of the consensus forecast; revenue for the quarter rose 8.6% year over year to $11.37 billion, matching expectations.
The WHO's declaration that coronavirus is not a global emergency helped travel stocks such as American Airlines (AAL) and United Airlines (UAL) rebound. The restricted travel is likely to hit consumer-related activity hard during the holiday season, and we are already starting to see companies such as Walt Disney (DIS) take action while others, like Remy Cointreau (REMYY) are warning over the potential impact to their business - we discuss both below. Stocks to Watch American Express (AXP) reported December quarter EPS of $2.03, $0.02 ahead of the consensus forecast; revenue for the quarter rose 8.6% year over year to $11.37 billion, matching expectations.
6252.0
2020-01-24 00:00:00 UTC
American Airlines Group (AAL) Q4 2019 Earnings Call Transcript
AAL
https://www.nasdaq.com/articles/american-airlines-group-aal-q4-2019-earnings-call-transcript-2020-01-24
nan
nan
Image source: The Motley Fool. American Airlines Group (NASDAQ: AAL) Q4 2019 Earnings Call Jan 23, 2020, 8:30 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Good morning, and welcome to the American Airlines Group fourth-quarter 2019earnings call Today's conference call is being recorded. [Operator instructions] And now, I would like to turn the conference over to your moderator, managing director of investor relations, Mr. Dan Cravens. Dan Cravens -- Managing Director of Investor Relations Good morning, everybody, and welcome to the American Airlines fourth-quarter 2019earnings conference call With us in the room this morning is Doug Parker, our chairman and CEO; Robert Isom, president; and Derek Kerr, our chief financial officer. Also in the room for question-and-answer session are several of our senior execs, including Maya Leibman, who is our chief information officer; Steve Johnson, our EVP of corporate affairs; Elise Eberwein, our EVP of people and communications; Don Casey, our senior vice president of revenue; and Vasu Raja, our senior VP of network planning and alliance.Like we normally do, Doug will start the call with an overview of our financial results. Robert will then follow with commentary on the operational performance and other commercial initiatives. Derek will then walk us through the details of the fourth quarter and provide some additional information on our guidance for 2020. And then after we hear from those comments, we will open the call for analyst questions and, lastly, questions from the media. [Operator instructions] Before we begin, we must state that today's call does contain forward-looking statements, including statements concerning future revenues and costs, forecast of capacity, traffic, load factor, fleet plans and fuel prices. These statements represent our predictions and expectations as to future events, but numerous risks and uncertainties could cause actual results to differ from those projected. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Information about some of these risks and uncertainties can be found in our earnings press release issued this morning and our Form 10-Q from the third quarter September -- ending September 30, 2019. In addition, we will be discussing certain non-GAAP financial measures this morning, such as pre-tax profit and CASM, excluding unusual items. A reconciliation of those numbers to the GAAP financial measures is included in the earnings release, and that can be found in the Investor Relations section of our website. A webcast of this call will also be archived on the website. The information that we're giving you on this call is as of today's date, and we undertake no obligation to update the information subsequently. So thanks again for joining us. At this point. I'll turn the call over to our chairman and CEO, Doug Parker. Doug Parker -- Chairman and Chief Executive Officer Thanks, Dan. Good morning, everyone. Thanks for joining us. Today, we reported our fourth-quarter and full-year results for 2019. Excluding net special items, our fourth-quarter net earnings were $1.15 per diluted share, that's up 19% year over year. And our full-year net earnings were $4.90 per diluted share, that's up 8% on a year-over-year basis. While it's a solid year-over-year improvement, especially given the tough environment we experienced, we know we can perform better, and we will. As we look to 2020, we remain focused on three key areas that will create real value for our shareholders: producing excellent operating results; growing efficiently and profitably; and generating significant free cash flow. The past few months prove that that work is already paying off. When we spoke in October, we noted two key challenges that affected our third-quarter earnings. First, we were on the heels of subpar operating reliability results as we work through labor contract negotiations. And second, our 2019 earnings were negatively impacted by the Boeing 737 MAX being grounded for more than seven months, bringing a lot of uncertainty and frustration to our customers, our team and our shareholders. We committed then that we would swiftly and aggressively address both of these near-term issues, and we've made meaningful progress. First, as it relates to our operating reliability, we've seen enormous improvement, including the best quarterly operating performance in company history in this past quarter. Robert is going to talk more about this in a minute, but we're incredibly proud of our team and the great work they're doing to take care of our customers, and we're running a great operation. Second, on the MAX last quarter, we discussed our clear position. The financial cost of the MAX grounding should be borne by Boeing shareholders, not American. We're pleased that recently, we reached a confidential settlement with Boeing to compensate American for the financial damages we incurred in 2019 due to the grounding of the MAX. While we can't disclose details of the agreement, American shareholders should know that the agreement reflects our priority to ensure our shareholders are adequately compensated with real value for the extended grounding. Of course, the settlement relates to the damages we incurred in 2019, and the MAX is still grounded, so we'll continue to hold Boeing accountable for future financial damages to protect our company and our shareholders. Turning now to our 2020 priorities. First, operational excellence. Robert will talk more about this, as I said, and the ongoing initiatives we have to continue to ensure excellent operating results into the future. But one thing I want to point out is the impact the operation is already having on customer satisfaction. Our goal is to become customers' airline of choice, and a measure of -- and as a measure of that, we're looking to become the industry leader in customer Likelihood to Recommend scores, or LTR. Running our reliable operation is a significant driver of that, and our fourth-quarter LTR results prove it. In this past quarter, our LTR returned near-record highs and improved year-over-year for the first time since the second quarter of 2018. That gives us great momentum and encouragement for 2020 and beyond. Turning to efficient profitable growth. We now expect to grow American's network by approximately 4% to 5% in 2020. However, annual growth rate estimates don't really tell the story of growth in American in 2020 because our capacity growth will be lower than 4% to 5% until the MAX returns and will be greater than that as the aircraft returns to service. But we're excited about that growth, both before and after the return to service date, because it will be efficient and profitable growth. It will be in markets that are expected to produce at or above average unit revenues largely because of the gates we've been able to add in two of our most profitable hubs: Dallas/Fort Worth and Charlotte. It will also be highly efficient growth as it will be funded by the return of some aircraft already included on our cost structure, improved operating reliability and an increase in the gauge of our airplanes. Next, in a particular interest to our investors, we are very pleased to have reached a point where we will be generating significant free cash flow. After six years of considerable capital investments in integration and fleet modernization, we're now seeing a significant decline in future capex needs and a return on those prior investments. Derek will provide more information on this in a moment, but we expect two-year free cash flow to be $6 billion. We believe that free cash flow yield will be a key differentiator between American and our largest competitors going forward, and we will keep investors apprised of our progress. This free cash flow will be used to naturally delever our balance sheet and return capital to shareholders. We continue to estimate that our total adjusted debt will decline by approximately $3 billion to $4 billion over the next two years and $8 billion to $10 billion over the next five years. So in summary, we've made real progress in the fourth quarter, and we'll apply that same tenacity to 2020. Our team is doing an amazing job of running a reliable operation and taking care of our customers. We have outstanding profitable growth opportunities ahead, and we are intent on producing real cash returns for our investors. With that, I'll turn it over to Robert. Robert Isom -- President Thanks, Doug, and good morning, everyone. I'd like to start by adding my thanks to the American team for doing a phenomenal job, taking care of our customers during the busy holiday travel period. We are pleased with the operation we ran in the fourth quarter and the momentum it gives us to further improve as we head into 2020. During the critical holiday period, we achieved record results for combined mainline and regional on-time departures, on-time arrivals and completion factor, a fantastic way to end our strongest operational quarter on record. Throughout the spring and summer, reliability and customer service suffered because of exceptionally high aircraft out of service. That's not the case today. Since September, start-of-the-day aircraft out of service has steadily improved, reaching best-ever levels in December and through January to date. On December 24, we had our lowest number of aircraft out of service at the start of the day since the merger, with more aircraft available to start the day, more flights departed and arrived on time, with fewer cancellations and fewer disruptions to our customers' travel flight plans. To add up to Doug's comments about the MAX, we had previously pushed the return to service date to early June. Of course, as new information becomes available, like earlier this week, we'll reassess that time line. And to that end, we'll continue to work closely with the FAA, Boeing, our pilots and our unions on return-to-service preparation and a new flight schedule. As a reminder, by the end of 2020, we had planned to take delivery of an additional 26 MAX aircraft. We understand from Boeing that 13 of those aircraft have been built and are in storage, and we expect most of the remaining aircraft to be delivered by the end of 2020. On the revenue front, we reported record fourth-quarter and full-year revenue. Fourth-quarter revenue was up 3.4% to $11.3 billion. This marks the 13th consecutive quarter of unit revenue growth. For the year, our top line grew 2.8% to $45.8 billion. Derek will talk more about our revenue performance in his remarks. Looking at our business today, the revenue environment remains strong, and the economy continues to show no signs of slowing down. Importantly, demand for American's product remains robust, as our traffic growth continues to outpace GDP growth. Corporate demand remains strong, and we're picking up share gap within that segment. This is driven in part by our operational improvement during the quarter, but also by the great work of our global sales and distribution team to drive that business forward. We saw a 28% increase in transactions through NDC-enabled channels during the fourth quarter. This growth is driven by adoption from NDC-connected agencies in both domestic and international points of sale. This is a key component of our goal of being the easiest airline to do business with, so we're excited to see NDC become available to a wider set of customers. Leisure revenue growth was also very strong in the fourth quarter, as we delivered a record load factor, and we're off to an outstanding start in the new year. In 2019, our AAdvantage program enrolled the largest number of new members since the merger, with the highest year-over-year growth occurring in the fourth quarter. We also ended the year with record numbers of co-brand card members, acquisitions, card spend and flight redemptions. More members than ever are interacting with American through the enhanced digital experience in their -- of their -- in their AAdvantage accounts. And in 2019, our team delivered even more customer benefits by extending -- by expanding dynamically price redemption opportunities across our network. As Doug mentioned, our operational reliability improved in the fourth quarter and started our Likelihood to Recommend scores. In 2019, we took strides to improve the customer experience in several significant ways. We completed the installation of industry-leading high-speed WiFi across our mainline narrow-body fleet for more than 700 aircraft, giving customers the ability to stay connected from gate to gate. We introduced the A321neo, enhancing what was already the youngest fleet among U.S. network carriers. We expanded the footprint of our industry-leading premium lounge product with new flagship in Admirals Club lounges in -- at DFW and renovated Admirals Clubs in Boston and Pittsburgh. We launched innovative partnerships with Apple, Blade and the James Beard Foundation, and expanded our relationship with Hyatt to improve customers' experience throughout their journeys with us. And we introduced biometric boarding and passport scanning and our mobile app, expediting the boarding process on international flights. Of course, one of American's biggest competitive advantages is the strength of our network and our ability to grow in our most profitable hubs. We continue to be incredibly pleased with the results from the growth at DFW this past year. In the fourth quarter, we grew DFW capacity by 9%, resulting in a 21% increase in origins and destinations. And importantly, this growth came in at above system average passenger unit revenue. We'll continue to see the benefits of this high-margin growth at DFW for years to come as we continue to upgauge the airline. A lot of our growth in 2020 will happen at DFW from the lapping of our expansion there last year and also in Charlotte, where we added four new gates in late 2019. We have planned to add three additional gates at Charlotte beginning in 2020, and we'll continue to grow in 2021 with the opening of the new regional concourse at Reagan National, as well as the compounding effect of our growth at DFW and Charlotte. On the international side, with full government approval of our joint business with Qantas, customers are already benefiting from new routes and expanded code share and improved frequent flier benefits. In October, we announced new service between DFW and Auckland and Los Angeles and Christchurch starting this year. Our Atlantic Joint Business continues to perform well, and it brings significant benefits to customers in North America and Europe. Last month, we announced a new British Airways-operated service between Portland and London Heathrow, which is one of eight new transatlantic routes starting this summer throughout the Atlantic Joint Business venture. In addition, late last year, we announced plans to co-locate with British Airways at JFK, which will allow us to more efficiently and immediately connect customers traveling across our networks. We're also excited about starting our first-ever service to Africa and Poland in 2020 and returning to Tel Aviv as well. We launched a new reciprocal code share with Royal Air Maroc late last year, which will support our new Philadelphia-Casablanca service and allow for easy connections further into Africa. On January 31, we will stop code sharing with LATAM. American remains the large -- the leading carrier and largest carrier between the U.S. and Latin America and the best partner for future relationships. We feel very good about our position in this important region and expect only to grow on our own and with partners in the coming years. And as a result, we don't see any impact to revenue or profitability in 2020. In summary, we made great progress in the fourth quarter, especially in regard to our operations. We have a solid foundation in place, and the demand and revenue environment remains strong. The challenges of last year brought us closer as a team, have aligned us in purpose, and we're excited to deliver on what we've built so far and continue to focus on our operating reliability, improving the customer experience and capitalizing on our valuable growth opportunities. And with that, I'll turn it over to Derek. Derek Kerr -- Chief Financial Officer All right. Thanks, Robert, and good morning, everyone. Despite the operational and fleet challenges we faced throughout most of 2019, we were able to grow both pre-tax margins and earnings per share for the third successive quarter and for the year. Our fourth-quarter pre-tax profit, excluding net special items of $679 million, resulted in a pre-tax margin of 6% as compared to 5.4% in 2018. The revenue environment continues to be positive with fourth-quarter total revenue growth of 3.4%. Passenger revenues grew by 3.9% to $10.3 billion, a record for the fourth quarter on unit revenue growth of 0.9 points. For the year, total revenue grew 2.8% to $45.8 billion and was also the highest level of revenue in company history, with total revenue per available seat mile up 1.7%. Robert touched on our international operations, but as we look at our fourth-quarter international revenue performance by entity, we continue to see the strength of our Latin American franchise. Latin America was our best-performing entity during the fourth quarter, with a year-over-year unit revenue improvement of 10% driven by double-digit unit revenue improvements in Brazil and Mexico. We also had positive unit revenue growth in Argentina for the quarter, while Caribbean performance was flat. In the fourth quarter, our Pacific unit revenue continued to show improvement, up 1.3% year over year, which was aided by our China restructuring last year and our partnership with Japan Airlines. We saw strength in the Japan market and brought China to positive unit revenue territory. We're executing quickly on our new joint business with Qantas. We recently expanded code share selling to all Qantas and American flights between Australia and New Zealand and the continental U.S., encompassing 104 Qantas and 48 American flights per week during the peak season. Atlantic revenue was up 4.6% on 8.7% more capacity and a decline in unit revenue of 3.7%. The decline in unit revenue is attributed to a foreign exchange headwind and, in part, due to a potential labor disruption at one of our joint business partners. Underlying premium demand remained strong, and we made good progress with premium leisure customers, growing this segment by 15% during the quarter. Premium Economy continues to do well as the product matures, with the average fares approximately 2.3 times the coach fare. Domestic revenue grew 4.4% from strong load factors, offset in part by weaker yields during the pre-Thanksgiving travel period, which led to somewhat flat unit revenue production during the quarter. Investors shouldn't read too much into the softness we saw in November as December closed out very strong, and those trends have continued into January. On the cargo front, trade concerns and macro weakness outside the United States continued to weigh on both cargo volumes and yields. When combined with year-over-year international schedule reductions we made in the fourth quarter of 2018, cargo revenues fell 18.3% to $216 million in the fourth quarter. Total operating expenses in the fourth quarter were up 2.1% at $10.6 billion. When fuel and special items are excluded, our unit cost increased in the fourth quarter by 2% compared to 2018 due primarily to higher salaries and benefits, maintenance and regional expenses. Turning to the balance sheet. We ended the quarter with approximately $7.1 billion in total available liquidity. As we noted on our January 10 investor update, due to the uncertainty of the return of service of the MAX and our commitment to our $7 billion liquidity target, we arranged an additional revolving line of credit to provide the company with increased borrowing capacity of up to $400 million. We don't have any present intention to borrow any amounts under this facility, which matures in September 2020, with an optional extension to December 2020. During the fourth quarter, we paid dividends of $44 million and repurchased approximately $285 million of stock or 9.9 million shares. We have begun to delever the balance sheet as our capex requirements have come down. As a result, our year-end adjusted debt position decreased by $1.5 billion year over year. Before we turn to guidance, I'd like to talk about the changes we made to the format of our investor update. Due to material uncertainty around the grounding of the MAX, we are adjusting how we provide our forward-looking guidance. Going forward, we will provide guidance on the current quarter and the full year only. As we look at 2020, with the MAX grounding in mind, we currently project our earnings will be negatively affected by substantially the same amount as our 2019 earnings were impacted. While we expect Boeing to compensate us for these 2020 losses, this compensation is not included in any of our forward guidance. As Doug mentioned, we now expect that our 2020 capacity growth will be approximately 4% to 5% and that our CASM -- 2020 CASM growth, excluding fuel, special items and new labor deals, will be up approximately 1%. However, because our annual metrics, like capacity and unit costs, are highly sensitive to our MAX return assumptions, it's worth pointing out that these metrics will have a different trajectory in the second half of 2020 than what we are guiding in the first quarter. As such, our CASM will be up 2% to 4% in the first quarter. And when the MAX returns later in the year, our capacity will be higher and our CASM is expected to be down year over year. Looking forward, despite the geopolitical headlines, we continue to see no signs of macro softness in our forward bookings. We expect first-quarter domestic demand to remain robust and LATAM to again be the best-performing international entity. With that backdrop, we forecast our first-quarter year-over-year TRASM to be flat to up 2%. We also expect that our first-quarter pre-tax margin, excluding net special items, will be roughly flat on a year-over-year basis. Based on the assumptions I referenced earlier, we believe our full-year earnings per diluted share, excluding net special items, will be between $4 and $6 a share. In 2019, we made contributions of more than $1.2 billion to our defined benefit pension plans or $436 million in excess of required contributions, pre-funding a portion of our 2020 minimum required contribution. Favorable asset performance of 23.5%, coupled with significant company contributions, helped to offset an increase in the benefit obligation due to declining interest rates, improving funded status by 4 percentage points. For 2020, we intend to make a total contribution of $193 million. We also expect a significant reduction in pension expense year over year by approximately $260 million. Our total projected capital expenditures for 2020 is expected to be $3.3 billion, comprised of $1.7 billion in non-aircraft capex and $1.6 billion in aircraft capex. With these capital numbers, as Doug said, we currently forecast that we will generate $6 billion in free cash flow over the next two years. So with that, I will turn it back over to the operator to begin our question-and-answer session. Questions & Answers: Operator [Operator instructions] And our first question comes from Michael Linenberg with Deutsche Bank. Your line is now open. Michael Linenberg -- Deutsche Bank -- Analyst Yeah. Hey, two questions here, and maybe this is to Derek. I realize that you mentioned with the guidance that it doesn't reflect any sort of benefit from Boeing. But I want to touch on that $6 billion of free cash flow over the next two years because in the Southwest press release, they did call out $400 million of supplier proceeds that they received in 2019. So you were talking about the forward guidance. I want to be clear. Does your 2019 number include any sort of benefit -- cash benefit from Boeing? And if not, is that potential upside to the $6 billion over the next two years? Anything you can say on that would be great. Derek Kerr -- Chief Financial Officer It's hard to talk about any of this because it's a confidential settlement that's out there today. The impact in '20 and '21, where -- is in there from a settlement perspective. But we can't really talk about how we got the settlement and where we got it. We got it over time after things, and that's kind of where we are, Mike. It's really just because it's a deal with Boeing that we have and it's confidential that we can't really outline where that's at. But it will -- the Boeing settlement for the $6 billion that we talked about is included in those numbers, so there's no change to that. No upside to that number because of the Boeing settlement, unless we talk about a 2020 settlement that's out there that we have not talked about at all. So I guess, there's some upside if there's a Boeing settlement on 2020. But I think the '20 -- the settlement we already have is included in that $6 billion number. Michael Linenberg -- Deutsche Bank -- Analyst OK. That's actually very helpful. And then just my second question, you haven't made recently any change to your bag fees -- what you charge for bag fees. Have you, I just -- I haven't been able to check. Derek Kerr -- Chief Financial Officer We have not. Michael Linenberg -- Deutsche Bank -- Analyst OK, great. Thank you. Derek Kerr -- Chief Financial Officer Thank you. Operator And our next question comes from Catherine O'Brien with Goldman Sachs. Your line is open. Catherine O'Brien -- Goldman Sachs -- Analyst Good morning, everyone. Thanks for the time. So a question on cost. Your better-than-expected fourth-quarter cost performance is due to running a better operation. You talked about some of the milestones you hit on aircraft out of service during the quarter. So have you extrapolated these better trends into your 2020 CASM guide? Or did you build it on any cushion from an operational performance standpoint? Any color there would be helpful. Derek Kerr -- Chief Financial Officer We have an ASM guide at 4% to 6%, so we have assumed a completion factor of 4% to 5%, excuse me. And we have built in a completion factor that we assume that we continue to run the operation that we have today. So that is in play there. From a CASM perspective, for the full year, the one big headwind that we have is in the maintenance area, and it's mostly in engine cost. And some of that is driven by keeping some of the older aircraft around and doing engine hauls on those aircraft -- engine overalls on those aircraft due to the fact that the uncertainty on the MAX and some of the delays on the 321 aircraft. So we have extrapolated in the operation is going to be better. And we have -- but we have -- one of the biggest headwinds is just the maintenance side of things from a cost perspective. Doug Parker -- Chairman and Chief Executive Officer And this is Doug, and I'll just add to that. Again, much like we said,that the ASM numbers for the year don't really reflect our plan for the entire year because, again, that 4% to 5% will be lower than that before the MAX returns and higher than after. The same holds true for CASM. So that number can move as return to service dates move. But know this, once the return to service date is here, the CASM will be lower than that average number Derek gave. And until it does, they will be somewhat higher than that. Catherine O'Brien -- Goldman Sachs -- Analyst OK. Understood. And then a question on the $6 billion in free cash flow you're expecting over the next few years. So approximately how much of that is from sale leaseback proceeds? I know in 2020, that number is $1.5 billion. But what's that figure for 2021? Derek Kerr -- Chief Financial Officer Right now, it's zero for 2021. $1.5 billion is correct for 2020. Zero for 2021. Catherine O'Brien -- Goldman Sachs -- Analyst Appreciate that. Derek Kerr -- Chief Financial Officer Thank you. Operator Our next question comes from Jose Caiado with Credit Suisse. Your line is now open. Jose Caiado -- Credit Suisse -- Analyst Hey. Thank you very much. Good morning. Robert, maybe a question for you. I wanted to ask about the progress on your sub-fleet optimization initiative. I believe you were hoping to take something like 50-or-so different sub fleet combos down to 30 or so. Can you just give us an update on that initiative? I imagine the MAX situation last year maybe delayed the progress there and just how you're thinking about that for 2020. Robert Isom -- President Sure. So one of our big projects on the mainline side was to make the configurations on our 321s and our 737 fleets identical. So because of the issues that we ran into last year, of course, with the MAX and aircraft out of service, we slowed that project down. So to date, we plan on reconfiguring a total 304 737s. And I believe that we're -- it changes daily, but I believe that we're 80 or so through that. We've just started on the 321s, the 202 or so aircraft there. So there's a lot more that is coming there. Recall that those configurations, not only did they standardize, not only did they also add to the total seat count, but they also brought great customer amenities, such as new lighting, new seats, oversized bins, satellite WiFi and whatnot. So we're really excited about that and getting great feedback from customers on that. We still have, in our plan, to eliminate the E190s by the end of the summer. The Super 80s are gone. The 767s will be gone next year. And on the regional side, we've done a great job in terms of both rationalizing our fleets in terms of different configurations and also carry partner carriers as well, greatly simplifying things. So we're really excited about where we've -- where we started. There's still a lot of upside, though, as we move forward, especially on the mainline side of things. Jose Caiado -- Credit Suisse -- Analyst And then just a quick second question on your load factor initiatives in 2019. Generally, were you pretty satisfied with how the initiative sort of played out? And do you have any plans to make any adjustments to that strategy in 2020? Don Casey -- Senior Vice President of Revenue OK. This is Don. Actually, we're very, very pleased with how well we executed on our -- what we described as kind of the smartly go load factor because, obviously, our objective is not to maximize load factor, but to maximize revenue. And we had, over the course of 2019, issued record load factors. It was the highest load factor the company has never had in its history. And as we look at where we grew, because that's really the most important part, we were able to find the right places in order to be able to push the load factor out. As we look forward into 2020, we still think there is a little bit of opportunity as we look back to fine-tune what we did in 2019. So I think a bit more upside going forward. Operator Thank you. And our next question comes from Jamie Baker with JP Morgan. Your line is now open. Jamie Baker -- J.P. Morgan -- Analyst Hey, good morning, everybody. First one for Derek, a similar question, well, actually identical to what I asked from United yesterday. Could you talk about the evolution of the $4 to $6 guide and the timing of when that forecast really did come together, the degree to which it was influenced by some of the recent geopolitical uncertainty? Also clearly, a foregoing conclusion that you're going to have to push the June reentry schedule. Should we anticipate updated annual metrics when that happens? Doug Parker -- Chairman and Chief Executive Officer Jamie, I'll take that on a broad one. If you need more, Derek can give you more detail. But -- and to your question, when was it -- when do we come that, it was last night. So it incorporates everything we know at this point in time, everything we anticipate at this point in time. Certainly, our objective is not to amend it other than to maybe be amending it upwards we had hoped maybe at some point in time. Because everything we see right now are really what we anticipate right now. And to the extent that changes, of course, we would update it at that time. But anything we know now is in there. And to the extent unanticipated issues come up, we'll work very hard to offset those, so we don't have to adjust it. All those things you mentioned are incorporated in that. Jamie Baker -- J.P. Morgan -- Analyst And just to drill down, no accruals for any -- no unique contract assumptions that are in the guide. Doug Parker -- Chairman and Chief Executive Officer I'm sorry. Jamie Baker -- J.P. Morgan -- Analyst No labor accruals or assumptions on your behalf as part of the guide, just want to make sure. Doug Parker -- Chairman and Chief Executive Officer Yes. I want to make sure I said it's right again. It includes everything we anticipate at this time. We know where we are in labor negotiations. What we anticipate is included in that, so... Jamie Baker -- J.P. Morgan -- Analyst OK. Excellent. And a follow-up on labor, Doug. I wanted to ask about the bench. I was impressed to see the hire of Brian on Vasu's team. I think there has been some surprise among investors that there haven't been, how should I say this, more gyrations in terms of the overall bench. I want to ask the question in a way that you're comfortable asking -- or answering, excuse me. You could answer my question with a question, if you want. I guess I'll ask it this way. Was Brian a one-off? Or would you say that you are actively looking to pick up new talent where needed throughout the organization? Doug Parker -- Chairman and Chief Executive Officer Yes, we're always actively looking to pick up new talent throughout the organization. We've been doing so for quite some time. That's one case. There have been several over the years, and they've been some of the best additions to the team. It's one of the really nice things, actually from my perspective, of the transformation that's happened. American and in this industry, there was a time it was difficult to attract good people that are -- that were already in the business. Who we are and what we can do now, I mean, might get us -- just look at -- you apparently haven't or we haven't been prominent enough in pointing out to you the kinds of people we have been adding, such as our General Counsel with a phenomenal resume in the division. We have people we've added over the last two years from firms like, this memory now, IBM, PepsiCo, Walmart, J.P. Morgan, Starwood, Texas Instruments, that have all come to this organization and had made a huge difference, and we'll continue to do so. So we'll keep doing that, and we do it throughout the organization. Those people are all throughout the organization. We feel fantastic about the team we have in place, the structure we have in place and the bench strength we have in place. We're -- what we -- but we always are looking to improve. And are -- as you know, we're excited about the hire, as you noted, and there are more to come, as there always will be and really excited about we have in place. Jamie Baker -- J.P. Morgan -- Analyst Excellent. Strong answer. Thank you, Doug. Take care. Doug Parker -- Chairman and Chief Executive Officer Thanks. Thanks, Jamie. Operator Thank you. And our next question comes from Hunter Keay with Wolfe Research. Your line is now open. Doug Parker -- Chairman and Chief Executive Officer Hi, Hunter. Hunter Keay -- Wolfe Research -- Analyst Hey. Hey, Doug, everybody. Doug, a bit of an offbeat question, but the way you were talking about the shareholders sort of feeling the impact of the MAX delays in your prepared remarks, it kind of just dawned on me. Wouldn't one way to soften that might be cutting a special dividend of about $5 per share to your shareholders using Boeing money to make up for how much your stock price has gone down since the MAX was grounded? Is that something you would consider? Doug Parker -- Chairman and Chief Executive Officer Jamie, here's how we think about -- I'm sorry, every time. I swear I'm not doing it for -- I swear I'm not doing it for -- all right, all right -- right now. But I do it to each one of you. So anyway, Hunter, sorry. Look, this -- we view this settlement as we do all cash proceeds and cash flow generated by the company, it goes in order. First, to invest in the business, make sure we're doing that. Next, to make sure we're paying down any debt, either that is expensive, which we don't have any of that, or as it comes due, and we don't need to add more to do that. And then having done those things, invest in the company and make sure we're paying down debt as prudent. And then make sure we have sufficient amount on hand to ensure that we have -- as we do an extremely large cash balance ought to be prepared to be ready for any sort of black swan event that might happen. So we make sure we always have at least $7 billion of liquidity in hand. So you know all that. And then having done all that, the excess, we do look to return to shareholders. We've been aggressive about that in the past, we'll be in the future. We believe with where the stock is -- when we believe the stock is undervalued, we think the best way to return that to the shareholders is to repurchase some shares. From those who are not as -- we're not as -- don't have as much of a strong view on the future as others might. We think that's the best way to return to shareholders, not through dividends. So that's how we'll treat these proceeds as well. Hunter Keay -- Wolfe Research -- Analyst OK. That's fair. And then as I look at the headcount over the last few years, I'm curious, Derek, how attrition rates have impacted that relative to what your baseline plan was at the time of the merger. Obviously, labor rates have gone up. And folks who don't have mandatory retirement ages are probably hanging on a little bit longer to make up for lost pensions and things like that. So how has attrition impacted headcount? And is that something -- is that an area that's been a little bit worse than expected relative to your baseline sort of merger cost outlook? And is there anything that can be done about that going forward? Derek Kerr -- Chief Financial Officer I wouldn't say it's any -- we're different than what's expected. I mean, from attrition rates have definitely gone down because of the salaries within the industry. So at certain areas where there were high attrition, it's gone down a fair amount. But we're managing that. That just means we're not hiring as many people in those areas than we have. So I'm not concerned about where we're at. I think we're efficient. We're going to become more efficient over time. There might be some opportunities that we will go after over the next few years. But as we go forward, I think we look at that all the time. But attrition really hasn't impacted it. That's really lowered hiring and lowered where we needed to be from a hiring standpoint. Hunter Keay -- Wolfe Research -- Analyst OK. Thank you. Operator Thank you. And our next question comes from Duane Pfennigwerth with Evercore ISI. Your line is now open. Duane Pfennigwerth -- Evercore ISI -- Analyst Hey. Good morning. Thank you. Doug Parker -- Chairman and Chief Executive Officer Hey, Duane. Duane Pfennigwerth -- Evercore ISI -- Analyst Just revisiting the fourth quarter a little bit, and I apologize if this is overly simplistic. But you grew below 3%, you had the benefit of Dallas hub growth. Competitors had fleet limitations, which limited their ability to grow and inflated their non-fuel costs. You were in a seasonally stronger period and yet revenue came in softer versus your initial guide. And so again, maybe overly simplistic, but if you can't find price on 3% growth, how are investors supposed to get comfortable that you can find it on five-plus to offset inflationary pressures on the business longer term? And more importantly, how are you going to evaluate if that aspirational growth rate is working as we proceed maybe in the back half of this year? Don Casey -- Senior Vice President of Revenue OK. Duane, this is Don Casey talking. So if you could just look at kind of what our guide was, our guide was to have TRASM up I think at 1 point in the fourth quarter. We ended up half a point. Two-tenths of that was we had more ASMs in the quarter because of better completion factor, we're down about three-tenths. When you do look at the numbers that we have, you have to remember this is the kind of the last quarter, but we have this headwind related to frequent flyer recognition is about 0.9 point. So when you kind of back that and look at our numbers, we actually did, I think, pretty well relative to everybody else. Probably more importantly is as we look forward into the second quarter, particularly in the domestic market, we actually see the domestic market looking pretty robust as we head forward -- look forward. So in every forward month right now, our yields, which were a bit soft in the fourth quarter because of the performance in November, all look positive, right? So we're pretty, actually, optimistic about our forward outlook. And again, as you think about the fourth quarter, really, the only thing that was off track for us was November. We did better in December than we expected. We did better in October than we expected. But November, with the extra week of trough, that last week before Thanksgiving for us was very, very weak. But beyond that, everything really performed, really, at or above expectations. And again, the forward look in terms of forward deals is positive. Doug Parker -- Chairman and Chief Executive Officer And Bob, on the growth... Robert Isom -- President Yes. Hey, Duane. This is Bob, too. I'll just add something to Don's comments too, in that the manner in which we've taken out the MAX in the past and the way we're taking it out in the first quarter and second quarter is different, right? Until this point in time, certainly in fourth quarter and third quarter before that, we were taking the MAX out sometimes 60 or 75 days before the flights flew. So what we are effectively doing is we had already filled up capacity, and we had fewer seats available for higher-yielding last-minute bookings. And so you can see it certainly stands to reason. You see it in the industry data that there has been a huge transfer of share from carriers that operate the MAX to carriers that don't operate the MAX, and we saw that in the fourth quarter. But despite that, as we look forward, we have been -- actually, we've taken it out further in advance. And so that enables us to go and revenue manage the airline to a more predictable capacity base. But also in fourth quarter, despite the very obvious frustrations we have with the MAX, one thing that is encouraging as we think about bringing the MAX back is as we took the MAX out, we sought to preserve the connecting power of our three biggest hubs: Chicago, DFW and Charlotte. And so even tho we saw net traffic loss across our system, in those three hubs, we actually both saw traffic gain. And most critically, we saw share gains of the highest value O&Ds in the domestic system. This is encouraging to us, of course, because when the MAX comes back, the marginal cost of bringing that airplane back is minuscule. Indeed, we're carrying it right now. But we believe the marginal RASMs will be certainly uniquely high for us because so much of what the MAX will do is provide more seats on those higher-value O&Ds that are at the highest percentiles of our domestic yield curves. Don Casey -- Senior Vice President of Revenue Yes. This is Don again. Just add one more point. If you look at where the MAX capacity effect is, it's really domestic. That's where we actually have the impact. It grew domestically only by 1.2% in the fourth quarter. We expect it to grow a lot more. And domestic has the far and away the highest nominal PRASMs, so it hasn't taken important impact on us in terms of fourth-quarter unit revenue. Duane Pfennigwerth -- Evercore ISI -- Analyst And just for a quick follow-up, Derek, the lower pension expense ratable across the quarters. And would you be willing to disclose the actual pension expense in '20 versus '19? Derek Kerr -- Chief Financial Officer It is ratable throughout the quarters. And the $260 million number is the number that is going to be the expense this year. Duane Pfennigwerth -- Evercore ISI -- Analyst Thank you. Operator Thank you. And our next question comes from Darryl Genovesi with Vertical Research. Your line is now open. Darryl Genovesi -- Vertical Research -- Analyst Hi. Good morning, everyone. Doug, I guess, given that this is the start of a new year, I just wanted to ask you a bigger-picture question. And then I don't mean to be combative, but since 2014, the first year following the merger, your pre-tax income has declined by about 30%, a little over $1 billion. I know the MAX creates some hardship, but United and Southwest, who are both MAX operators, have grown pre-tax over that period. Neither one of those carriers has a significantly larger operational footprint than you and neither has a single hub that's bigger than either of your two largest at DFW and Charlotte as they currently exist. So I guess the question, with all respect and without reference to the MAX or the need for more capacity, what do you think the one to two things are that you've done wrong since the merger? And what are the one or two things that you think you need to do differently in 2020 to show investors that you can reverse the downward earnings trend? Doug Parker -- Chairman and Chief Executive Officer Yes. Let me answer it this way, by -- first, by noting, look, one, we agree. We know, of course, that -- let's just talk about this as the margin gap. We fully recognize that our relative -- our margins relative to our two largest competitors have -- that gap has gone from being positive to American to negative to American or to the extent it was positive -- if Delta was positive which was more positive of late. And we're concerned about that and certainly intent on reversing the trend. Further, to explain most of what you described, from 2014 on, part of our large margin, relative margin performance was the fact that as we took two airlines: one, US Airways, which has lower labor costs than the big three; and then American, which has lower labor costs than those two airlines as it went through a bankruptcy, a large part of that margin advantage was unsustainable. We certainly -- I think we're quite clear about that at the time that we were going to need to, over time, as we sign new contracts, get our teams' wages and benefits in line with those, and that's happened. So that's certainly a part of it. But that's not -- but having said that, that's not always what we're going on. So let me just say it this way. As we sit here today, having just closed these years out, that gap, I mean, I don't know what what the line you look at, I know generally, people look at pre-tax, we get somewhat hurt on that, of course. But the fact that we've gone and invested in $20 billion of new aircraft for the last five years that those airlines haven't done yet. So that's about a point of it. So a way to adjust for that is to look -- but anyway, the trends are much the same. I'm not trying to blame it on that. But I think a better way to look at it is with the EBITDAR margin. And again, the story is exactly the same. You look at the EBITDAR margins for the year just ended, we're going to -- we come out a little less than 2 points behind United for the year and about 6 points behind Delta. So I look at those and think that doesn't seem right. We should -- there's no reason that American Airlines should have margins that are lower than United. There may be a structural reason at this point in time that we would be lower than Delta as United is. That structural reason being that they had so much of their capacity flying in and out of really, really profitable hubs. But we're not -- I'm not trying to say that there's some structural reason that can't be closed, but it may not be able to be closed in the really near term. As we end up growing Dallas and Charlotte over time in our network, I think that can be closed. But I suspect you're talking more near term. So in the near term, here's what I think. We have one more of these contracts to do. That's in -- that's one more to actually get our labor costs in line. We have one more joint collective bargain agreement to get done. That will happen in 2020. Once we do that, you will then be at a point where our labor costs in general across the border, largely in line with theirs, so you won't see that continued kind of pressure. So as we look to 2020, we have that headwind, but what I believe is because of all the things we have going on, that we'll close that gap. The 2020 margin, again, let's set the MAX side for whatever that does to this year's earnings what we will then be compensated for. But just looking at adjusted for the MAX, I think our margins this year will be, despite that headwind, in line or hopefully, maybe in a little better than those two carriers. Year-over-year improvement, I'm saying. So while we may not be able to start closing it in 2020 because we have to get that last contract there within there, and having done that, we will then have labor costs that are now largely the same as our competitors. Well, to the extent labor costs go up at any of our airlines, it will go up at all of the airlines at a better or similar amount. And as that happens, I think right now is we expect that margin gap to be closed. How much, how fast? Hard to say. Conservatively, I think we should easily be able to get one point here. So again, let's, for 2020, assume that we not only get that point but we stay where we are in the gap. And then a couple more years, we're at or near United and then -- and over three years ahead of United and -- or by 1 point or so and closing that and halving that gap and half again still. That, I believe, is what you'll see from us from all the initiatives that we've been laying out over time. They're working now. Despite all that is going on and the headwinds we've had, we did indeed have margin expansion year over year. We had, this quarter, our fourth-quarter margin improvement for the first time in two years was -- didn't that -- was -- the improvement was better than United for the first time in two years. I don't want to make a big deal about that because it's not that much, but it's not that much improved and it's one quarter and it's the last quarter of the year, so who knows. But that's a fact. It was the first time in two years that we've seen our margin gap versus United start to narrow, albeit at a small rate. We hope that's the beginning of a trend. Certainly, I think that should be -- like I say, once we get this last contract in place going forward. So that's where we're headed. That happens, by the way, without -- if you ask me, "What do we need to do about that?" I believe we've been -- I believe we explained all that. Again, if you want more, Robert and Don can do it again. It's largely revenue and its revenue initiatives, things like getting our -- the entire fleet harmonized, things like getting our ability to sell up in the same position than some of our competitors are, things that we know we can and will do, and it will allow our revenues to increase at a rate -- again, our revenues to increase at a rate and our profits to increase at a rate that they don't have the opportunity to do. So that's what I think. I know it's a long answer, but it's a really important question that we get a lot, and that's what I believe. It's -- that margin gap is not something we believe is acceptable, not something we believe will be sustained and one that you should continue to hold our feet to the fire as we move forward. Darryl Genovesi -- Vertical Research -- Analyst Great. Thank you very much Doug for the answer. Doug Parker -- Chairman and Chief Executive Officer Sure. Operator Thank you. And our next question comes from Joseph DeNardi with Stifel. Your line is now open. Joseph DeNardi -- Stifel Financial Corp. -- Analyst Yes. Thanks. Doug, I just want to highlight that. I mean, you do refer to kind of the competitive disadvantage that you face in some cases. You guys have an enormous competitive advantage over United, in particular, related to the credit card program. That I think needs to be considered. But my question is, when you look out over the next couple of years in the $6 billion in free cash flow, how much of that do you expect to return to shareholders versus going to pay down debt or the pension? Like what's the actual number that you see being free to return? Doug Parker -- Chairman and Chief Executive Officer Yes. Before I answer that, I just want to respond to your comment. Nothing that I said, said we have disadvantages to United, nothing. We're not saying any reason that we think we shouldn't have margins at or better than United. And I agree with you, our credit card program is an advantage. That's one of the reasons that there shouldn't -- what I said was, we may have a structural disadvantage on the network front versus Delta today. So anyway, that's what I tried to say. As to your question on how much of that free cash flow gets to investors, I'll refer back to my comments, which were as follows. We said that we expect over the next two years, free cash flow of $6 billion. And we also said that we expected to reduce our total adjusted debt by $3 billion to $4 billion. Again, so that's -- there's a couple of billion dollars there. And again, all else equal, would be excess of the $7 billion. And with -- again, consistent with our past behavior and our views about our obligation to our shareholders, I would expect, if I was modeling that, that would be returned to shareholders. Joseph DeNardi -- Stifel Financial Corp. -- Analyst OK. And then if the MAX reduced 2019 pre-tax by $550 million, the mechanics was another few hundred million. Can you just help us understand how much of an impact that's expected to be in 2020? If things are getting better and the operation is getting better and there's revenue momentum, then why shouldn't the baseline for 2020 be 2019 results plus the MAX and the mechanics impacts? I guess, how much of those factors are reduced? How much are those reducing the first-quarter '20 guidance by? Can you just maybe help us understand that? Doug Parker -- Chairman and Chief Executive Officer Yes, sure. Yes, thanks. Look, the MAX is still an issue in 2020. So -- and when we say we expect to be back, obviously, we have our June date and -- but that we're going to need to reassess that. So some time late summer, early fall, let's assume that's going to be at about the same number of months in 2020 as it was in 2019. So the MAX effect on financials, there's no positive impact in those numbers. I do want to make this -- take the time to make this point. Whatever that amount is, we will be compensated. That -- Boeing has been clear about that. They've shown that they're -- they will do that. It is unfortunate that the accounting for that doesn't match the period in which the pain happens. But it's real value. It's value that accrues to our shareholders and we are committed to ensuring that we receive that value for you on your behalf, on our behalf. So that, again, those -- I would just ask all of you, as you look to those kind of large impacts of the Boeing impact, to understand that those are -- that's an accounting issue in large part, at least again for financial purposes. It's a huge, obviously, issue for our customers and our team. But other than that, as it relates to the financials, that amount, our shareholders will be compensated for. It just won't be -- it just won't be accounted for in the current period. Point one. So that's my answers to how much is the MAX. So that leaves you with the other piece, which is the operating issues we had this year. Certainly, there's upside to that. We -- as I mentioned, we have some -- we have another headwind, which is the contract which caused the -- the contract negotiations which were related to that issue will result in -- what we really want to get happen, make happen with this contract for our fleet service and maintenance team. That will lead to an increase in our costs. So on a year-over-year basis, I think those things certainly don't have a huge positive. It's certainly not a positive impact. I'll say it's one versus the other. But having said all that, I go back to where -- what we said, which is knowing everything we know at this point, we gave you an EPS estimate that we believe is our best estimate of where we are at this point, incorporating all of this. Joseph DeNardi -- Stifel Financial Corp. -- Analyst Thanks, Doug. Doug Parker -- Chairman and Chief Executive Officer Yeah. Operator Thank you. And our next question comes from Dan McKenzie with Buckingham Research. Your line is now open. Dan McKenzie -- Buckingham Research -- Analyst Yeah. Thanks for the time, guys. With respect to the $7 billion liquidity target, what's the debt profile that you'd like to see before you draw that down? So if there's $3 billion to $4 billion less debt in two years, what liquidity target might accompany that? Doug Parker -- Chairman and Chief Executive Officer Yes, it's a good question, Dan. I don't have all the answers specifically, but you raised a good point. That number is based upon -- we work with -- again, there is science, but at the end of the day, it's -- there's some art as well. But the science is going and working with some outside investment bankers and running all sorts kind of Monte Carlo simulation, worst case, make sure under any sort of difficult situation that we have more than enough to handle that. Those simulations run with less debt will result in a lower cash balance required. They're not doing it yet. When they do, we'll continue to look at it. But it's a fair -- but anyway, you raise a good point. I look forward to the day that that's the question we're getting from all of our shareholders, which is, "Why are you holding so much of the cash." But right now, we believe it's prudent. But there will -- I certainly expect, as we produce the kind of cash flow we suggested and use it to pay down debt that there will come a time in the future that we'll -- that number will come down somewhat. Dan McKenzie -- Buckingham Research -- Analyst Understood. OK. Don or Vasu -- Sure. And then next question here, Don or Vasu, I think you've been really clear that the growth is focused where you're strong. But as you look at where you're strong, you look at where you're weak, how do you get more critical mass in the markets where you're weak? So I guess the question is, could an expanded codeshare domestically be a good solution? And then kind of separate to that question, I'm just wondering, just given the Atlantic RASM headwind, I'm just wondering if you could just -- as a housecleaning question, just sort of comment on when you think that might reverse? Vasu Raja -- Senior Vice President of Network Planning and Alliance Dan, this is Vasu. Let me start, and then Don and others can pick up. Actually, let me take the second question first, and then I'll do the first one. So there's certainly a foreign exchange impact in fourth-quarter transatlantic RASM. But one of the things -- and we've talked about this for a long time. Certainly, I have, is that as we go and shrink the number of subfleets, we're turning 767s into 787s. So in the old days of both AMR and US Airways, we could go into the winters when demand was lower and simply idle widebodies or widen in the domestic system or things like that. The ownership of those things was very different. So one of the things which we've been doing increasingly is going and extending fourth-quarter flying on our widebodies. And the RASMs are down. We've been really pleased with the marginal earnings from it, right? Of course, we -- the cost of operating a 787 flying Chicago to Barcelona in the winter is maybe -- it's very, very small, respectively, just the incremental cost of the fuel burn on the thing. But what we're seeing on it are marginal RASMs that are in the 75% to 80% range of or otherwise flying in Transatlantic. And so that's been a really positive development for us. Indeed, over time, not that long ago, the airline didn't make money flying Transatlantic in the winter, and now we make money Transatlantic all 12 months of the year, and we see opportunities to go and do more. And so though we see this near-term RASM challenge is backed up by something, which is a really promising sign for future earnings and future network development. And then, to your earlier point about places where we're relatively strong or relatively weaker. Look, it remains to be seen. The more critical point is that in the places where we're strong, and certainly, in markets like in the Midwest, the Southeast, Florida, things like that, the Southwest, we -- every chance we've had to grow it, we have been seeing that the marginal earnings off of that growth has been really attractive. Indeed, it -- though it is obscured with any number of other things going on, we see opportunities to be able to grow earnings primarily by being able to do that organically in the near term. Don Casey -- Senior Vice President of Revenue This is Don. I'll just talk just about the Atlantic. Just the way our joint business, kind of we settle out revenues at the end of the year, we didn't have a three-point headwind on the Atlantic, which we can not really relate it to the kind of performance. You back that out, our performance is basically right in line with Delta and United. So I think we're all seeing the same thing, which is a pretty stable business demand and demand for premium products that have pretty aggressive pricing at this point in the coacher. Dan McKenzie -- Buckingham Research -- Analyst OK. Yeah. Thanks for the time. Doug Parker -- Chairman and Chief Executive Officer Sure. Operator Ladies and gentlemen, we will now take questions from the media. [Operator instructions] And our first question comes from Alison Sider with Wall Street Journal. Your line is now open. Alison Sider -- Wall Street Journal -- Reporter Hi. Thanks so much. Doug Parker -- Chairman and Chief Executive Officer Hi, Ali. Alison Sider -- Wall Street Journal -- Reporter I was wondering if you could share if there's any sort of thinking that you have right now? I know there's a lot of uncertainty, but any contingency plans for a much longer-term grounding? If this were to continue past mid-year through the end of the year or even longer, kind of what kind of things would you do differently? Does that feel like it's a possibility? Is it something you're kind of gaming out already? Doug Parker -- Chairman and Chief Executive Officer Ali, we aren't at this point. We are running our airline today without the MAX in service. And if we're going to be out longer than we anticipate, we will continue to do the same things. We're not going to have our strategy dictated by when this airplane comes or doesn't come. We know it will fly again someday. When it does, we'll be ready. In the meantime, we're going to keep focusing on running a great operation, making sure that where we are growing, that we're growing, where we can be profitable and making sure we're generating some free cash flow. But when the FAA side of the aircraft is ready to fly, we'll be ready -- we will make -- we'll be ready to get our pods training at the aircraft back up. We're looking forward to that. But until that time, we'll keep doing exactly what we're doing. And don't have any plans beyond trying to figure out what happens after that or before that. Alison Sider -- Wall Street Journal -- Reporter Got it. And do you expect a simulator training requirement to sort of create a lot of new delays or slow down the return to service process when it eventually comes? Doug Parker -- Chairman and Chief Executive Officer Go ahead, Rob. Robert Isom -- President Yes. We're working really closely with the FAA in trying to make sure that there's -- all the information is built into our planning. From what we know right now, we know that there's going to be simulator -- 737 MAX simulator training required. We are sketching out a number of different scenarios. And in all of those, we've made sure that American is sufficiently staffed with resources, simulators and also training resources to make sure that we can get the aircraft back up as soon as possible once the FAA and once our pilots and Boeing say the aircraft ready to go. Operator Thank you. And our next question comes from Dawn Gilbertson with USA Today. Your line is now open. Doug Parker -- Chairman and Chief Executive Officer Hi, Dawn. Dawn Gilbertson -- USA Today-Consumer Travel Reporter Hi. Hey, how are you? My question has to do with the coronavirus but are kind of on three fronts. I know it's early, but are you guys seeing any booking impact at all? Have you contemplated any travel waivers for the region? And lastly, maybe this one is for Robert. What measures is American taking to protect passengers and crew? Robert Isom -- President Thanks, Dawn. So first off, we haven't -- it's too soon to see any impact. Our network isn't that extensive in Asia. But we're on top of it. We're working with CBP, the CDC and public health officials, as well as our medical resources here to make sure that we're following all best practices. We're doing that with an intent to make sure that we take care of our customers and team members. We've seen viruses in the past that we've had to make accommodations for and to be prepared for. We're doing all those same things right now. And we're going to watch it and make sure that we take aggressive action if there is a need to. Operator Thank you. And our next question comes from Leslie Josephs with CNBC. Your line is now open. Leslie Josephs -- CNBC -- Airline Reporter Hi. Good morning, everybody. On the MAX, how has the grounding affected your hiring plans for this year and going forward? And when do you expect to be fully over the issues with the MAX, considering or thinking if Boeing's forecast for midyear FAA ground lifting holds? Thanks. Robert Isom -- President So we know -- we're confident that the MAX will come back. And we plan for the future. And as we take a look out into that future and where we will be later in 2020, assuming the aircraft comes back in late summer or early fall or even out into 2021, we are planning and making sure that we're ready to accommodate those aircraft. The planning cycle for pilots is a lengthy one. And so we actually have to start hiring 12 months or more in advance not only to handle growth, but also to handle the hundreds of pilots that are now retiring out of American. We feel really good about that pilot pipeline. We're going to make it's -- our pilots are our best asset, and we do a great job in going out and hiring and recruiting the best of the best and making sure that they're always trained and ready to go. So we're planning well in advance. We have sufficient number of pilots. And right now, we're not making any changes to that plan. Leslie Josephs -- CNBC -- Airline Reporter And then the other question about the hold MAX issue. When do you expect to have your 76? Has Boeing given you any guidance on that? And when do you expect this whole thing to resolve? Does Boeing forecast for the grounding is lifted in the middle of the year and you have the plane by, let's say, like late summer, early fall? Robert Isom -- President So right now, all we can tell you is that we know that we have 24 owned aircraft. And that once the ungrounding is lifted, we're ready to go with those. As I mentioned, there's a number of aircraft that have also been produced. We're hopeful that those would be some of the first that could be released. But then in terms of future production, we don't know. And so we'll continue to work very closely with Boeing once the aircraft is ungrounded. And we're hopeful to get delivery and back to the levels of flying that we had intended originally. Leslie Josephs -- CNBC -- Airline Reporter OK. And then so no reduction in hiring of pilots or cabin crews because of the MAX issues? Robert Isom -- President No. Leslie Josephs -- CNBC -- Airline Reporter OK. Thank you. Operator Thank you. And our next question comes from David Slotnik with Business Insider. Your line is now open. David Slotnick -- Business Insider -- Senior Transportation Reporter Hi. How are you? Thanks for taking my question. I know that you have resolved the worst part of the labor issues that you were experiencing last spring and into the summer. I just wondered if you had any update on contract negotiations with mechanics and pilot teams. Doug Parker -- Chairman and Chief Executive Officer They continue. The National Mediation Board is overseeing those negotiations. We recently restarted again after the new year. They continue. And that's the update. All parties have agreed at the NMB's request not to discuss those negotiations. Other than that -- and that's that's been productive thus far, so we'll abide by that. David Slotnick -- Business Insider -- Senior Transportation Reporter Got you. Thanks. And just quickly, I know you were talking about the partnership and co-sharing Qantas earlier. Have you seen any impact because of the fires? Or has it really been too soon for that? Robert Isom -- President Don, do you want to talk about that? Don Casey -- Senior Vice President of Revenue Yes, yes. So we have started. We've expanded the codeshare with Qantas. So right now, I think it's still in the early stages. In terms of performance, obviously, we when we look at the Australian market, we've seen, over the last -- really started about three weeks ago, a bit of a softening in terms of U.S. demand. But overall, I think we're very happy with the progress we're making with Qantas right now. David Slotnick -- Business Insider -- Senior Transportation Reporter OK, thanks. Operator And our next question comes from Edward Russell with The Points Guy. Your line is now open. Edward Russell -- The Points Guy -- Senior Airline Business Reporter Hi. Thank you for taking my question. I just wanted to ask about the fleet plans with the continued MAX grounding. I see you're continuing with the E190 retirements. And I don't see any other modifications to the fleet plan to address the fact that the MAXs won't be back in the sky until at least the summer. Is American considering holding on to the 190s? Or any other measures to make sure that you can continue to grow to the MAX? Robert Isom -- President Right now, the 190s are scheduled to go out at the end of the summer. That's the game plan. That's the way we've built the airline. We will make adjustments based on what we hear from Boeing and the actual time lines as they become more firm. But right now, we anticipate the MAX coming back late summer, early fall. And we're preparing our airline to that end. Edward Russell -- The Points Guy -- Senior Airline Business Reporter OK. And is it also correct then, since the retrofits of the 321s and the 737s are going to move forward this -- in the new this year on schedule? I know they were postponed last year due to the MAX. Robert Isom -- President Yes. So from the original schedule, we're probably a year behind. But as we take a look into the year, we will have -- we restarted the 737 line. We have the 321 prototype done as well. And we will have a critical mass. I don't know the exact number that we'll have done by next summer, but it's 115... Don Casey -- Senior Vice President of Revenue All the 738s will be done by April of '21, and then all the 321s will be done by May of '22. And we're going to keep the line going at the entire time. We're not going to pull the line because of the delay in the MAXs this year. We're going to keep it moving. Operator Thank you. Ladies and gentlemen, this concludes our question-and-answer session. I would now like to turn the call back over to chairman and chief executive officer, Doug Parker, for any closing remarks. Doug Parker -- Chairman and Chief Executive Officer Thank you, all, very much. We appreciate your interest, and if you have any questions, please let us know. Thank you. Operator [Operator signoff] Duration: 78 minutes Call participants: Dan Cravens -- Managing Director of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Robert Isom -- President Derek Kerr -- Chief Financial Officer Michael Linenberg -- Deutsche Bank -- Analyst Catherine O'Brien -- Goldman Sachs -- Analyst Jose Caiado -- Credit Suisse -- Analyst Don Casey -- Senior Vice President of Revenue Jamie Baker -- J.P. Morgan -- Analyst Hunter Keay -- Wolfe Research -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Darryl Genovesi -- Vertical Research -- Analyst Joseph DeNardi -- Stifel Financial Corp. -- Analyst Dan McKenzie -- Buckingham Research -- Analyst Vasu Raja -- Senior Vice President of Network Planning and Alliance Alison Sider -- Wall Street Journal -- Reporter Dawn Gilbertson -- USA Today-Consumer Travel Reporter Leslie Josephs -- CNBC -- Airline Reporter David Slotnick -- Business Insider -- Senior Transportation Reporter Edward Russell -- The Points Guy -- Senior Airline Business Reporter More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. Motley Fool Transcribing has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
American Airlines Group (NASDAQ: AAL) Q4 2019 Earnings Call Jan 23, 2020, 8:30 a.m. Operator [Operator signoff] Duration: 78 minutes Call participants: Dan Cravens -- Managing Director of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Robert Isom -- President Derek Kerr -- Chief Financial Officer Michael Linenberg -- Deutsche Bank -- Analyst Catherine O'Brien -- Goldman Sachs -- Analyst Jose Caiado -- Credit Suisse -- Analyst Don Casey -- Senior Vice President of Revenue Jamie Baker -- J.P. Morgan -- Analyst Hunter Keay -- Wolfe Research -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Darryl Genovesi -- Vertical Research -- Analyst Joseph DeNardi -- Stifel Financial Corp. -- Analyst Dan McKenzie -- Buckingham Research -- Analyst Vasu Raja -- Senior Vice President of Network Planning and Alliance Alison Sider -- Wall Street Journal -- Reporter Dawn Gilbertson -- USA Today-Consumer Travel Reporter Leslie Josephs -- CNBC -- Airline Reporter David Slotnick -- Business Insider -- Senior Transportation Reporter Edward Russell -- The Points Guy -- Senior Airline Business Reporter More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. The challenges of last year brought us closer as a team, have aligned us in purpose, and we're excited to deliver on what we've built so far and continue to focus on our operating reliability, improving the customer experience and capitalizing on our valuable growth opportunities.
Operator [Operator signoff] Duration: 78 minutes Call participants: Dan Cravens -- Managing Director of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Robert Isom -- President Derek Kerr -- Chief Financial Officer Michael Linenberg -- Deutsche Bank -- Analyst Catherine O'Brien -- Goldman Sachs -- Analyst Jose Caiado -- Credit Suisse -- Analyst Don Casey -- Senior Vice President of Revenue Jamie Baker -- J.P. Morgan -- Analyst Hunter Keay -- Wolfe Research -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Darryl Genovesi -- Vertical Research -- Analyst Joseph DeNardi -- Stifel Financial Corp. -- Analyst Dan McKenzie -- Buckingham Research -- Analyst Vasu Raja -- Senior Vice President of Network Planning and Alliance Alison Sider -- Wall Street Journal -- Reporter Dawn Gilbertson -- USA Today-Consumer Travel Reporter Leslie Josephs -- CNBC -- Airline Reporter David Slotnick -- Business Insider -- Senior Transportation Reporter Edward Russell -- The Points Guy -- Senior Airline Business Reporter More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q4 2019 Earnings Call Jan 23, 2020, 8:30 a.m. [Operator instructions] Before we begin, we must state that today's call does contain forward-looking statements, including statements concerning future revenues and costs, forecast of capacity, traffic, load factor, fleet plans and fuel prices.
Operator [Operator signoff] Duration: 78 minutes Call participants: Dan Cravens -- Managing Director of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Robert Isom -- President Derek Kerr -- Chief Financial Officer Michael Linenberg -- Deutsche Bank -- Analyst Catherine O'Brien -- Goldman Sachs -- Analyst Jose Caiado -- Credit Suisse -- Analyst Don Casey -- Senior Vice President of Revenue Jamie Baker -- J.P. Morgan -- Analyst Hunter Keay -- Wolfe Research -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Darryl Genovesi -- Vertical Research -- Analyst Joseph DeNardi -- Stifel Financial Corp. -- Analyst Dan McKenzie -- Buckingham Research -- Analyst Vasu Raja -- Senior Vice President of Network Planning and Alliance Alison Sider -- Wall Street Journal -- Reporter Dawn Gilbertson -- USA Today-Consumer Travel Reporter Leslie Josephs -- CNBC -- Airline Reporter David Slotnick -- Business Insider -- Senior Transportation Reporter Edward Russell -- The Points Guy -- Senior Airline Business Reporter More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q4 2019 Earnings Call Jan 23, 2020, 8:30 a.m. We had, this quarter, our fourth-quarter margin improvement for the first time in two years was -- didn't that -- was -- the improvement was better than United for the first time in two years.
Operator [Operator signoff] Duration: 78 minutes Call participants: Dan Cravens -- Managing Director of Investor Relations Doug Parker -- Chairman and Chief Executive Officer Robert Isom -- President Derek Kerr -- Chief Financial Officer Michael Linenberg -- Deutsche Bank -- Analyst Catherine O'Brien -- Goldman Sachs -- Analyst Jose Caiado -- Credit Suisse -- Analyst Don Casey -- Senior Vice President of Revenue Jamie Baker -- J.P. Morgan -- Analyst Hunter Keay -- Wolfe Research -- Analyst Duane Pfennigwerth -- Evercore ISI -- Analyst Darryl Genovesi -- Vertical Research -- Analyst Joseph DeNardi -- Stifel Financial Corp. -- Analyst Dan McKenzie -- Buckingham Research -- Analyst Vasu Raja -- Senior Vice President of Network Planning and Alliance Alison Sider -- Wall Street Journal -- Reporter Dawn Gilbertson -- USA Today-Consumer Travel Reporter Leslie Josephs -- CNBC -- Airline Reporter David Slotnick -- Business Insider -- Senior Transportation Reporter Edward Russell -- The Points Guy -- Senior Airline Business Reporter More AAL analysis All earnings call transcripts This article is a transcript of this conference call produced for The Motley Fool. American Airlines Group (NASDAQ: AAL) Q4 2019 Earnings Call Jan 23, 2020, 8:30 a.m. And when the MAX returns later in the year, our capacity will be higher and our CASM is expected to be down year over year.
6253.0
2020-01-23 00:00:00 UTC
Nasdaq 100 Movers: AAL, CTXS
AAL
https://www.nasdaq.com/articles/nasdaq-100-movers%3A-aal-ctxs-2020-01-23
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In early trading on Thursday, shares of Citrix Systems topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.0%. Year to date, Citrix Systems registers a 13.9% gain. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 2.2%. American Airlines Group is lower by about 6.8% looking at the year to date performance. Two other components making moves today are Texas Instruments, trading down 2.1%, and Expedia Group, trading up 2.4% on the day. VIDEO: Nasdaq 100 Movers: AAL, CTXS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
VIDEO: Nasdaq 100 Movers: AAL, CTXS The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 2.2%. American Airlines Group is lower by about 6.8% looking at the year to date performance.
VIDEO: Nasdaq 100 Movers: AAL, CTXS 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, Citrix Systems registers a 13.9% gain. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 2.2%.
VIDEO: Nasdaq 100 Movers: AAL, CTXS 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 Thursday, shares of Citrix Systems topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.0%. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 2.2%.
VIDEO: Nasdaq 100 Movers: AAL, CTXS 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 Thursday, shares of Citrix Systems topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.0%. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 2.2%.
6254.0
2020-01-23 00:00:00 UTC
Buy the Possible Hard Landing for Boeing Stock
AAL
https://www.nasdaq.com/articles/buy-the-possible-hard-landing-for-boeing-stock-2020-01-23
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I can’t think of a more embattled company in recent memory than Boeing (NYSE:). Typically, when the U.S. President labels your organization as “disappointing,” it hurts no matter what you think of the administration. But for Boeing stock, it’s much worse. With the underlying aerospace firm being the manufacturer of Air Force One, getting blasted by the Commander-in-Chief is unfathomably bleak. Source: VDB Photos / Shutterstock.com But in all fairness to President Donald Trump, he’s not wrong. As you know, Boeing landed in hot water after two of its jetliners crashed, resulting in hundreds of deaths. After a series of denials and obfuscations, management later confirmed what crash investigators discovered: a faulty stabilization system contributed to the fatal incidents. Moreover, the plane in question, the 737 Max, represents Boeing’s best-selling aircraft. In fact, the company has a backlog of over 4,000 of this jetliner. And in a recent announcement, the manufacturer basically suggested that the backlog will worsen. Executives told the firm’s suppliers and clients that “it on the 737 Max until June or July, months later than originally expected.” Naturally, Wall Street punished Boeing stock sharply on the dour disclosure. If that wasn’t bad enough press, Treasury Secretary Steven Mnuchin stated earlier this month that the 737 Max problems could by a half point this year. Because of the flight ban extension along with internal chaos at Boeing, many analysts are expecting disastrous results for the upcoming fourth quarter of 2019 earnings report. Based on the litany of troubles, I can understand the fear toward Boeing stock. Should investors throw in the towel on this possibly impending train wreck? Pessimistic Consensus for Boeing Stock On the print prior to the latest announcement, analysts’ consensus target for earnings per share in Q4 was $1.51. Technically, that was near the upper end of estimates, which ranged from 95 cents to $1.91. However, an updated assessment now calls for a severely . Either way, the optics against the prior year Q4 EPS of $5.48 was always going to be ugly. On the revenue front, analysts are targeting a . Estimates range from $19.1 billion to $22.4 billion. As with earnings, Boeing stock faces extremely ugly comparisons. In the year-ago quarter, the airplane manufacturer rang up $28.3 billion. With all the ugly PR, I can’t imagine the upcoming Q4 report will go down well. Additionally, Boeing’s woes are obviously not exclusively limited to the iconic organization. For example, General Electric (NYSE:) provides the engines for the embattled 737 Max. As the aviation unit is one of very few bright spots for GE, the Max is pivotal for GE’s recovery. As well, you have Boeing rival Airbus (OTCMKTS:) enjoying strong demand for its A320 and A321 series of jetliners. Factor in that airliners such as United Airlines (NASDAQ:), Southwest Airlines (NYSE:), and American Airlines (NASDAQ:) are anticipating that the Max will miss out on another summer season and you realize that Boeing has a huge credibility crisis. But just how badly will Boeing stock drop when the report does? I think the signals are ambiguous. While the environment is obviously terrible, the bad news is already known. Now, we’re just getting into the numbers. Moreover, Boeing has already contributing to the two fatal crashes. Nothing’s worse than that yet shares have tread water relatively well. Potential Opportunities on the Table Ultimately, you’ve got to imagine that once Boeing releases their awful numbers for Q4, its equity price will see red. How much of it, though, is anyone’s guess. But despite the recent and unfortunate news, I’m still cautiously optimistic about Boeing stock. When the Max crisis first unraveled, for instance, shares took a hit but it wasn’t catastrophic, all things considered. This is a giant blue chip and it might take a little bit more to take it down. And even if shares tank, the broader fundamentals are nevertheless positive. Although most of Boeing’s revenue stream come from commercial sources, it does have viable defense business units. That could see renewed interest due to various geopolitical conflicts. Also, the company’s space division is suddenly more relevant than it arguably ever has. For one thing, the Trump administration announced the creation of the sixth military branch, the Space Force. Plus, Japanese Prime Minister Shinzo Abe introduced his country’s own . Interestingly, it will work closely with its American counterpart. While you don’t want to get overly excited about this development, it still offers a potential long-term revenue channel. Once Boeing gets past its crisis – and it will because that’s what great organizations do – the outlook is surprisingly positive. As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. The post 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.
After a series of denials and obfuscations, management later confirmed what crash investigators discovered: a faulty stabilization system contributed to the fatal incidents. Executives told the firm’s suppliers and clients that “it on the 737 Max until June or July, months later than originally expected.” Naturally, Wall Street punished Boeing stock sharply on the dour disclosure. Because of the flight ban extension along with internal chaos at Boeing, many analysts are expecting disastrous results for the upcoming fourth quarter of 2019 earnings report.
Because of the flight ban extension along with internal chaos at Boeing, many analysts are expecting disastrous results for the upcoming fourth quarter of 2019 earnings report. Pessimistic Consensus for Boeing Stock On the print prior to the latest announcement, analysts’ consensus target for earnings per share in Q4 was $1.51. Factor in that airliners such as United Airlines (NASDAQ:), Southwest Airlines (NYSE:), and American Airlines (NASDAQ:) are anticipating that the Max will miss out on another summer season and you realize that Boeing has a huge credibility crisis.
Executives told the firm’s suppliers and clients that “it on the 737 Max until June or July, months later than originally expected.” Naturally, Wall Street punished Boeing stock sharply on the dour disclosure. Pessimistic Consensus for Boeing Stock On the print prior to the latest announcement, analysts’ consensus target for earnings per share in Q4 was $1.51. Factor in that airliners such as United Airlines (NASDAQ:), Southwest Airlines (NYSE:), and American Airlines (NASDAQ:) are anticipating that the Max will miss out on another summer season and you realize that Boeing has a huge credibility crisis.
But for Boeing stock, it’s much worse. On the revenue front, analysts are targeting a . But just how badly will Boeing stock drop when the report does?
6255.0
2020-01-23 00:00:00 UTC
American Airlines Group Issues FY20 Earnings Guidance - Quick Facts
AAL
https://www.nasdaq.com/articles/american-airlines-group-issues-fy20-earnings-guidance-quick-facts-2020-01-23
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(RTTNews) - American Airlines Group Inc. (AAL) announced the company expects fiscal 2020 earnings per share excluding net special items to be between $4.00 and $6.00. Analysts polled by Thomson Reuters expect the company to report profit per share of $5.10. Analysts' estimates typically exclude special items. Fourth-quarter earnings per share, excluding net special items, was $1.15, up 19 percent year over year. On average, 18 analysts polled by Thomson Reuters expected the company to report profit per share of $1.14, for the quarter. Fourth-quarter total revenue increased 3.4 percent year-over-year to $11.31 billion. Analysts expected revenue of $11.31 billion for the quarter. The company declared a dividend of $0.10 per share to be paid Feb. 19, 2020, to stockholders of record as of Feb. 5, 2020. American Airlines Group said it is committed to generating significant free cash flow for shareholders in 2020 and beyond and presently expects to generate approximately $6 billion in free cash flow over the next two years. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
(RTTNews) - American Airlines Group Inc. (AAL) announced the company expects fiscal 2020 earnings per share excluding net special items to be between $4.00 and $6.00. Analysts polled by Thomson Reuters expect the company to report profit per share of $5.10. On average, 18 analysts polled by Thomson Reuters expected the company to report profit per share of $1.14, for the quarter.
(RTTNews) - American Airlines Group Inc. (AAL) announced the company expects fiscal 2020 earnings per share excluding net special items to be between $4.00 and $6.00. Analysts polled by Thomson Reuters expect the company to report profit per share of $5.10. Fourth-quarter earnings per share, excluding net special items, was $1.15, up 19 percent year over year.
(RTTNews) - American Airlines Group Inc. (AAL) announced the company expects fiscal 2020 earnings per share excluding net special items to be between $4.00 and $6.00. On average, 18 analysts polled by Thomson Reuters expected the company to report profit per share of $1.14, for the quarter. American Airlines Group said it is committed to generating significant free cash flow for shareholders in 2020 and beyond and presently expects to generate approximately $6 billion in free cash flow over the next two years.
(RTTNews) - American Airlines Group Inc. (AAL) announced the company expects fiscal 2020 earnings per share excluding net special items to be between $4.00 and $6.00. Fourth-quarter earnings per share, excluding net special items, was $1.15, up 19 percent year over year. Analysts expected revenue of $11.31 billion for the quarter.
6256.0
2020-01-23 00:00:00 UTC
American Airlines Group Inc Q4 adjusted earnings of $1.15 per share
AAL
https://www.nasdaq.com/articles/american-airlines-group-inc-q4-adjusted-earnings-of-%241.15-per-share-2020-01-23
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(RTTNews) - American Airlines Group Inc (AAL) reported earnings for its fourth quarter that rose from the same period last year. The company's bottom line totaled $414 million, or $0.95 per share. This compares with $325 million, or $0.70 per share, in last year's fourth quarter. Excluding items, American Airlines Group Inc reported adjusted earnings of $502 million or $1.15 per share for the period. The company's revenue for the quarter rose 3.4% to $11.31 billion from $10.94 billion last year. American Airlines Group Inc earnings at a glance: -Earnings (Q4): $502 Mln. vs. $448 Mln. last year. -EPS (Q4): $1.15 vs. $0.97 last year. -Revenue (Q4): $11.31 Bln vs. $10.94 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.
(RTTNews) - American Airlines Group Inc (AAL) reported earnings for its fourth quarter that rose from the same period last year. Excluding items, American Airlines Group Inc reported adjusted earnings of $502 million or $1.15 per share for the period. American Airlines Group Inc earnings at a glance: -Earnings (Q4): $502 Mln.
(RTTNews) - American Airlines Group Inc (AAL) reported earnings for its fourth quarter that rose from the same period last year. Excluding items, American Airlines Group Inc reported adjusted earnings of $502 million or $1.15 per share for the period. The company's revenue for the quarter rose 3.4% to $11.31 billion from $10.94 billion last year.
(RTTNews) - American Airlines Group Inc (AAL) reported earnings for its fourth quarter that rose from the same period last year. This compares with $325 million, or $0.70 per share, in last year's fourth quarter. Excluding items, American Airlines Group Inc reported adjusted earnings of $502 million or $1.15 per share for the period.
(RTTNews) - American Airlines Group Inc (AAL) reported earnings for its fourth quarter that rose from the same period last year. This compares with $325 million, or $0.70 per share, in last year's fourth quarter. last year.
6257.0
2020-01-23 00:00:00 UTC
American Airlines Group Q4 19 Earnings Conference Call At 8:30 AM ET
AAL
https://www.nasdaq.com/articles/american-airlines-group-q4-19-earnings-conference-call-at-8%3A30-am-et-2020-01-23
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(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on January 23, 2020, to discuss Q4 19 earnings results. To access the live webcast, log on to aa.com/investorrelations The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on January 23, 2020, to discuss Q4 19 earnings results. To access the live webcast, log on to aa.com/investorrelations The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on January 23, 2020, to discuss Q4 19 earnings results. To access the live webcast, log on to aa.com/investorrelations The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on January 23, 2020, to discuss Q4 19 earnings results. To access the live webcast, log on to aa.com/investorrelations The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
(RTTNews) - American Airlines Group Inc. (AAL) will host a conference call at 8:30 AM ET on January 23, 2020, to discuss Q4 19 earnings results. To access the live webcast, log on to aa.com/investorrelations The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
6258.0
2020-01-22 00:00:00 UTC
Will American Airlines Continue to Struggle Over the Next 5 Years?
AAL
https://www.nasdaq.com/articles/will-american-airlines-continue-to-struggle-over-the-next-5-years-2020-01-22
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American Airlines (NASDAQ: AAL) beat the S&P 500 last decade, rising 271% ahead of 188% for the index. Recently, however, investors have little to smile about, as American was the worst-performing major U.S. airline in the second half of the 2010s. Is there any hope for American Airlines, or should investors look for another opportunity? AAL data by YCharts Industry tailwinds Airlines are cyclical, capital-intensive businesses that used to be seen as poor investments given their exposure to fuel prices, safety risks, and geopolitics. That negative sentiment has changed in the United States, and for good reason; oil has been cheap for years. AAL data by YCharts With greater oil production comes more stability with jet fuel prices. Jet fuel can make or break an airline's bottom line, and in fact, it was a spike in prices that led to the downfall and eventual bankruptcy of Delta Air Lines (NYSE: DAL) in 2005 and American Airlines Group in 2011. According to Forbes, the airline industry lost over $52 billion between 1977 and 2009. An economic slowdown, high jet fuel prices, and wavering demand pushed airlines to consolidate, a strategy that proved effective as airlines improved their capital structure and ability to pay obligations. Management evolved, analytics became more powerful, and an intense focus on measuring and improving the total revenue per available seat mile, known as TRASM, held management accountable and gave investors a more concrete way to evaluate the newly restructured airline industry. YEAR MERGERS & ACQUISITIONS 2005 US Airways with American West Airlines 2008 Delta Air Lines with Northwest Airlines 2010 United Airlines with Continental Airlines 2011 Southwest Airlines with AirTran Airways 2013 American Airlines with US Airways With lower fuel prices, rising air travel demand, and P/E ratios that are less than half the S&P 500 average, U.S. major airlines are now seen as value stocks, garnering particular interest in 2016 when Warren Buffett, a longtime opponent of investing in airlines, added millions of shares of American Airlines, Delta Air Lines, Southwest Airlines (NYSE: LUV), and United Airlines (NASDAQ: UAL) to Berkshire Hathaway's portfolio. Challenges for American Airlines Like Southwest and United Airlines, American is negatively impacted by the ongoing groundings of Boeing (NYSE: BA) 737 MAX planes. In its third-quarter 2019 press release, the company states: "we know that our results should have been better. Our third quarter was impacted by the continued grounding of the Boeing 737 MAX and the operational challenges resulting from ongoing labor contract negotiations." AAL Net Total Long Term Debt (Annual) data by YCharts Even worse than Southwest and United is American's net total long-term debt, which has ballooned to nearly $20 billion. In fact, American Airlines has more net long-term debt than the other five major U.S. airlines combined. Also concerning is American's debt to capital (D/C) ratio, which is the highest of the group and now exceeds 100%, meaning the company is highly leveraged and prone to using debt financing over equity financing. Earnings aren't much better. Although American was able to grow net income more than 15% year over year in Q3 2019, these results pale in comparison to Delta's 29% or United's 31% increase. Both Delta and United expect growth to slow in the coming quarters, and American is no different. Riding on its 12th consecutive quarter of total revenue per available seat mile (TRASM) growth, American originally expected fourth-quarter TRASM to grow 0% to 2% year over year, but then lowered that guidance on Jan. 13 to 0% to 1%. Little to no TRASM growth in American's fourth-quarter 2019 results, comparably weaker overall 2019 growth results, large net long-term debt, and a D/C ratio exceeding 100% tally up to be some pretty serious headwinds for a stock that has been on a downward trajectory for years now. Image source: Getty Images. In terms of value, American now has the lowest P/E ratio of major U.S. airlines at 8.0, less than a third of the market average. Although American is in value stock territory since its price decline over the last three years has outpaced the decline in earnings, it doesn't appear to have a clear advantage compared to its competitors in quality of service or quality of financial health. The company's 1.4% dividend yield is adequate for an airline but out of range to make American a true dividend stock. Decent, but turbulent Despite a changing sentiment toward airline stocks, American Airlines has underperformed both the market and its peers over the past five years. Going forward, slowing growth and high debt make American comparatively unattractive. A low valuation and hopes of a turnaround are two of the only things American has going for it at this time. The company's Q4 2019 earnings announcement on Jan. 23 is a big deal. Investors should look to see how American forecasts 2020 based on the ongoing MAX delays. Another key element to watch is TRASM to see if year-over-year growth does indeed slow to 0% to 1%. If it comes in flat, it will break American's 12-quarter streak of TRASM growth and likely could lead to more headache ahead for shareholders. With a nice selection of solid U.S. airline stocks out there, investors are probably better off with Southwest Airlines or Delta Air Lines until American can prove it's on the upswing. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Daniel Foelber owns shares of American Airlines Group, Boeing, and Southwest Airlines. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, and Southwest Airlines and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short January 2020 $220 calls on Berkshire Hathaway (B shares). 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.
AAL data by YCharts Industry tailwinds Airlines are cyclical, capital-intensive businesses that used to be seen as poor investments given their exposure to fuel prices, safety risks, and geopolitics. American Airlines (NASDAQ: AAL) beat the S&P 500 last decade, rising 271% ahead of 188% for the index. AAL data by YCharts With greater oil production comes more stability with jet fuel prices.
AAL Net Total Long Term Debt (Annual) data by YCharts Even worse than Southwest and United is American's net total long-term debt, which has ballooned to nearly $20 billion. American Airlines (NASDAQ: AAL) beat the S&P 500 last decade, rising 271% ahead of 188% for the index. AAL data by YCharts Industry tailwinds Airlines are cyclical, capital-intensive businesses that used to be seen as poor investments given their exposure to fuel prices, safety risks, and geopolitics.
American Airlines (NASDAQ: AAL) beat the S&P 500 last decade, rising 271% ahead of 188% for the index. AAL data by YCharts Industry tailwinds Airlines are cyclical, capital-intensive businesses that used to be seen as poor investments given their exposure to fuel prices, safety risks, and geopolitics. AAL data by YCharts With greater oil production comes more stability with jet fuel prices.
AAL Net Total Long Term Debt (Annual) data by YCharts Even worse than Southwest and United is American's net total long-term debt, which has ballooned to nearly $20 billion. American Airlines (NASDAQ: AAL) beat the S&P 500 last decade, rising 271% ahead of 188% for the index. AAL data by YCharts Industry tailwinds Airlines are cyclical, capital-intensive businesses that used to be seen as poor investments given their exposure to fuel prices, safety risks, and geopolitics.
6259.0
2020-01-21 00:00:00 UTC
Why Shares of Casino and Travel Stocks Are Falling Today
AAL
https://www.nasdaq.com/articles/why-shares-of-casino-and-travel-stocks-are-falling-today-2020-01-21
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Shares of Melco Resorts & Entertainment (NASDAQ: MLCO) fell more than 9% on Tuesday, and shares of Delta Air Lines (NYSE: DAL) and Royal Caribbean Cruises (NYSE: RCL) were each down by about 5%, on reports that suggest the coronavirus outbreak in China is spreading beyond China's borders. The World Health Organization is considering declaring an international public health emergency as a total of 291 cases have now been reported across major cities in China. So what The world is watching carefully as a coronavirus originating in Wuhan, China, is spreading across the country and is sparking fears that there could soon be a global outbreak similar to the spread of SARS in 2003. While the issue has mostly been contained to China so far, markets were likely spooked by an announcement by the U.S. Centers for Disease Control and Prevention (CDC) Tuesday that the first confirmed case has been found on U.S. soil. Melco Resorts, a developer and owner of casino gaming and resort operations in Asia including a large presence in Macau, China, is among the western stocks seen as most vulnerable to being affected by the spreading coronavirus. Wynn Resorts (NASDAQ: WYNN) and Las Vegas Sands (NYSE: LVS) were also down on the fears. The casino and resort operators are concerned that the deadly outbreak could significantly lower attendance during the upcoming Chinese New Year holiday when many Chinese citizens travel and take vacation. Image source: Getty Images. Shares of Delta and other airline stocks fell quickly in the early afternoon following the CDC announcement over similar travel concerns, which could prompt consumers to avoid getting on planes or delay travel plans. Delta, in particular, has targeted China for growth and owns a small stake in the country's China Eastern Airlines. United Airlines Holdings (NASDAQ: UAL) shares fell more than 4%, and shares of American Airlines Group (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) were each down more than 2%. Royal Caribbean's decline was likely also due to concerns that an outbreak would eat into cruise industry bookings. China accounts for about 5% of global cruise capacity but tends to be among the more lucrative destinations. Royal Caribbean, according to Wells Fargo research, generates about 6% of its capacity from China, higher than rivals Carnival (NYSE: CCL) or Norwegian Cruise Line Holdings (NYSE: NCLH). Now what There is no doubt the reporting surrounding the virus outbreak is a major concern, and the current outbreak could turn into a pandemic on a scale similar to the SARS outbreak. Investors should monitor developments closely. However, it is also way too early to assume the worst, and investors need to be careful not to overreact to worrying headlines. Some early reporting is suggesting that this virus is not nearly as lethal as the SARS coronavirus. Of the three stocks mentioned that are down the most, Melco is the one that deserves the most scrutiny, because of its heavy exposure to China. Delta and the airlines figure to be, if nothing else, volatile as this plays out, and the cruise industry the most likely to weather the storm undamaged. Investors need to buckle their seatbelts and prepare for turbulence. We're likely to see a lot more coronavirus headlines in the days and weeks to come. 10 stocks we like better than Royal Caribbean When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Royal Caribbean wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman owns shares of Delta Air Lines. The Motley Fool owns shares of and recommends Delta Air Lines and Southwest Airlines. The Motley Fool recommends Carnival and Las Vegas Sands. 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.
United Airlines Holdings (NASDAQ: UAL) shares fell more than 4%, and shares of American Airlines Group (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) were each down more than 2%. Shares of Melco Resorts & Entertainment (NASDAQ: MLCO) fell more than 9% on Tuesday, and shares of Delta Air Lines (NYSE: DAL) and Royal Caribbean Cruises (NYSE: RCL) were each down by about 5%, on reports that suggest the coronavirus outbreak in China is spreading beyond China's borders. While the issue has mostly been contained to China so far, markets were likely spooked by an announcement by the U.S. Centers for Disease Control and Prevention (CDC) Tuesday that the first confirmed case has been found on U.S. soil.
United Airlines Holdings (NASDAQ: UAL) shares fell more than 4%, and shares of American Airlines Group (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) were each down more than 2%. Shares of Melco Resorts & Entertainment (NASDAQ: MLCO) fell more than 9% on Tuesday, and shares of Delta Air Lines (NYSE: DAL) and Royal Caribbean Cruises (NYSE: RCL) were each down by about 5%, on reports that suggest the coronavirus outbreak in China is spreading beyond China's borders. Wynn Resorts (NASDAQ: WYNN) and Las Vegas Sands (NYSE: LVS) were also down on the fears.
United Airlines Holdings (NASDAQ: UAL) shares fell more than 4%, and shares of American Airlines Group (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) were each down more than 2%. Shares of Melco Resorts & Entertainment (NASDAQ: MLCO) fell more than 9% on Tuesday, and shares of Delta Air Lines (NYSE: DAL) and Royal Caribbean Cruises (NYSE: RCL) were each down by about 5%, on reports that suggest the coronavirus outbreak in China is spreading beyond China's borders. Melco Resorts, a developer and owner of casino gaming and resort operations in Asia including a large presence in Macau, China, is among the western stocks seen as most vulnerable to being affected by the spreading coronavirus.
United Airlines Holdings (NASDAQ: UAL) shares fell more than 4%, and shares of American Airlines Group (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) were each down more than 2%. Shares of Melco Resorts & Entertainment (NASDAQ: MLCO) fell more than 9% on Tuesday, and shares of Delta Air Lines (NYSE: DAL) and Royal Caribbean Cruises (NYSE: RCL) were each down by about 5%, on reports that suggest the coronavirus outbreak in China is spreading beyond China's borders. The Motley Fool owns shares of and recommends Delta Air Lines and Southwest Airlines.
6260.0
2020-01-21 00:00:00 UTC
Why Shares of Boeing Are Falling Today
AAL
https://www.nasdaq.com/articles/why-shares-of-boeing-are-falling-today-2020-01-21
nan
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What happened Shares of Boeing (NYSE: BA) fell more than 5% on Tuesday afternoon after the company said it does not expect its troubled 737 MAX to return to service until mid-year at the earliest. Boeing had originally hoped to have the 737 MAX flying again before the end of 2019, but it's becoming clear that the plane's issues will weigh on the company well into 2021 at least. So what It has now been more than 10 months since the crash of an Ethiopian Airlines 737 MAX that killed all on board and prompted regulators to pull the plane out of service. Boeing has failed to meet a series of internal deadlines to resolve the issues with the plane and get it airborne again, and in December said it would halt production to deal with a backlog of jets that were manufactured but can't be delivered to customers. Boeing's 737 MAX in flight. Image source: Boeing. Also in December, Boeing replaced its CEO with board member Dave Calhoun, and in the weeks since taking charge, Calhoun has been trying to reassess the 737 MAX situation. Boeing said in a statement today it expects the "ungrounding" of the 737 MAX to begin in mid-2020. The new timetable pushes back the expected return of the 737 MAX to the skies and will cause extended damage to the growth plans of customers including American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), and United Airlines Group (NASDAQ: UAL). Boeing is likely to be on the hook for billions in future expenses to compensate customers for their troubles, as well as to handle the costs of storing the airframes that are grounded. Now what Boeing has been in talks to secure upwards of $10 billion in loans to help it weather the slowdown. With the stock still trading at more than 20 times forward earnings, I wouldn't be surprised if management eventually considers raising cash through an equity offering as well. Even with the 737 MAX issues, Boeing has an impressive portfolio of commercial aerospace and defense platforms, and should be a long-term winner. However, until there is more clarity about the 737 MAX situation and Boeing's new management team has had a chance to demonstrate they have the situation under control, it remains a dangerous time to buy in. 10 stocks we like better than Boeing When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Boeing wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends 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.
The new timetable pushes back the expected return of the 737 MAX to the skies and will cause extended damage to the growth plans of customers including American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), and United Airlines Group (NASDAQ: UAL). What happened Shares of Boeing (NYSE: BA) fell more than 5% on Tuesday afternoon after the company said it does not expect its troubled 737 MAX to return to service until mid-year at the earliest. Boeing has failed to meet a series of internal deadlines to resolve the issues with the plane and get it airborne again, and in December said it would halt production to deal with a backlog of jets that were manufactured but can't be delivered to customers.
The new timetable pushes back the expected return of the 737 MAX to the skies and will cause extended damage to the growth plans of customers including American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), and United Airlines Group (NASDAQ: UAL). After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman has no position in any of the stocks mentioned.
The new timetable pushes back the expected return of the 737 MAX to the skies and will cause extended damage to the growth plans of customers including American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), and United Airlines Group (NASDAQ: UAL). 10 stocks we like better than Boeing When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman has no position in any of the stocks mentioned.
The new timetable pushes back the expected return of the 737 MAX to the skies and will cause extended damage to the growth plans of customers including American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), and United Airlines Group (NASDAQ: UAL). However, until there is more clarity about the 737 MAX situation and Boeing's new management team has had a chance to demonstrate they have the situation under control, it remains a dangerous time to buy in. That's right -- they think these 10 stocks are even better buys.
6261.0
2020-01-19 00:00:00 UTC
Why Southwest Airlines Remains a Buy, Despite Boeing Woes
AAL
https://www.nasdaq.com/articles/why-southwest-airlines-remains-a-buy-despite-boeing-woes-2020-01-19
nan
nan
Southwest Airlines (NYSE: LUV) posted a record financial performance in Q3 2019 -- perfect timing for a decade that boosted shares of Southwest up 372%, about double the S&P 500. Southwest will report Q4 2019 earnings on Jan. 23, along with competitors American Airlines, JetBlue Airways, and Alaska Air Group. Here's a look at Southwest's 2019 performance and what to expect from this quarter and the years ahead. LUV data by YCharts Financial strength Southwest has a history of financial strength and a reputation for a rock-solid balance sheet. Southwest's fundamentals, consistent performance, and low P/E ratio that is about half of the S&P 500 make it a premier value stock. Despite droves of airline bankruptcies in the early and mid-2000s, including United Airlines and Delta Air Lines,followed by American Airlines in 2011, Southwest has remained profitable for 46 consecutive years. LUV Net Total Long Term Debt (Annual) data by YCharts Regarded as a fun-loving airline dedicated to its people, Southwest is also the only company out of the six major U.S. airlines to have negative net total long-term debt. As a result of its capital discipline, Southwest also has the lowest Price to Free Cash Flow (FCF) of the six major airlines, with a market capitalization that is just 10.6 times FCF. Free cash flow is a means to fund growth outside of typical operations, such as returning cash to shareholders in the form of a dividend or buying back stock. Although not an elite dividend stock, Southwest yields 1.3% and raised its dividend 200% over the past five years. IMAGE SOURCE: GETTY IMAGES. MAX pain Southwest's record quarter was achieved despite the grounding of Boeing (NYSE: BA) 737 MAX planes which have cost Southwest an estimated $435 million as of Sept. 30, 2019. Boeing, like many airlines, expected the groundings to cease before 2019 year-end, but the planes remain out of service. The delays have forced airlines to prepare for the worst. American Airlines has delayed service of its Boeing 737 MAX fleet until April 7, 2020, Southwest until mid-April, and United until June 4, 2020, costing billions for Boeing and hundreds of millions for these airlines. Southwest's record quarter despite the MAX delays is impressive when you consider the airline can't fly its 34 MAX planes. Southwest was originally expecting 113 737s by year-end 2020, but that forecast will probably go down the longer the planes stay grounded. That being said, the company's resilience in the face of adversity speaks volumes to Southwest doing what it can despite an unfortunate situation. Q3 2019 takeaways Third-quarter records included $5.6 billion in operating revenues, $659 million in net income, and $1.23 earnings per diluted share. In terms of Q3 2019 highlights, Revenue per Available Seat Mile (RASM) came in at a record 14.32 cents, a 4.2% increase Year-over-Year (YoY). Also noteworthy was fuel costs that came in low, at $2.07 per gallon. Fuel costs used to be one of the biggest headwinds for airlines until the rise of U.S. oil supply drove prices down to what's widely considered a less volatile, more playable range. This surge in domestic production was enough to spark even the interest of Warren Buffett, a long-term critic of airlines who began buying stock in four of the majors in 2016 . Q4 outlook Southwest doesn't forecast fourth-quarter results to be as good as the third quarter, but RASM is expected to be up as high as 2% YoY. Southwest noted that removing the MAX from its flight schedule is hurting capacity. Since Southwest is forced to operate with a smaller than expected fleet, there is "less flying in peak periods than planned, or optimal." In sum, Southwest is doing just about everything in its control to improve the situation, but there's no understating the negative effects the MAX groundings are having on its earnings. Investors should be on the lookout for any adjustments Southwest makes to its Boeing 737 MAX flight schedule based on fourth-quarter results, as well as how the bottom line fared during a quarter that was intended to have the first wave of Southwest's MAX planes in service. Southwest's ability to break records, keep its debt low, and retain the lowest price to FCF despite its susceptibility to the MAX groundings is a testament to the company's quality, making Southwest a buy despite the current predicament. 10 stocks we like better than Southwest Airlines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Southwest Airlines wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Daniel Foelber owns shares of American Airlines Group, Boeing, and Southwest Airlines. The Motley Fool owns shares of and recommends Delta Air Lines and Southwest Airlines. The Motley Fool recommends Alaska Air Group 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.
Q3 2019 takeaways Third-quarter records included $5.6 billion in operating revenues, $659 million in net income, and $1.23 earnings per diluted share. Fuel costs used to be one of the biggest headwinds for airlines until the rise of U.S. oil supply drove prices down to what's widely considered a less volatile, more playable range. This surge in domestic production was enough to spark even the interest of Warren Buffett, a long-term critic of airlines who began buying stock in four of the majors in 2016 .
As a result of its capital discipline, Southwest also has the lowest Price to Free Cash Flow (FCF) of the six major airlines, with a market capitalization that is just 10.6 times FCF. The Motley Fool owns shares of and recommends Delta Air Lines and Southwest Airlines. The Motley Fool recommends Alaska Air Group and JetBlue Airways.
Despite droves of airline bankruptcies in the early and mid-2000s, including United Airlines and Delta Air Lines,followed by American Airlines in 2011, Southwest has remained profitable for 46 consecutive years. MAX pain Southwest's record quarter was achieved despite the grounding of Boeing (NYSE: BA) 737 MAX planes which have cost Southwest an estimated $435 million as of Sept. 30, 2019. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Daniel Foelber owns shares of American Airlines Group, Boeing, and Southwest Airlines.
MAX pain Southwest's record quarter was achieved despite the grounding of Boeing (NYSE: BA) 737 MAX planes which have cost Southwest an estimated $435 million as of Sept. 30, 2019. Southwest's record quarter despite the MAX delays is impressive when you consider the airline can't fly its 34 MAX planes. That's right -- they think these 10 stocks are even better buys.
6262.0
2020-01-17 00:00:00 UTC
Can Delta Stock Fly Higher in 2020 With These Catalysts?
AAL
https://www.nasdaq.com/articles/can-delta-stock-fly-higher-in-2020-with-these-catalysts-2020-01-17
nan
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January has already seen impressive gains in broader markets, and shareholders in the Atlanta-based airline Delta (NYSE:) stock have also enjoyed a year-to-date gain of about 6%. Source: VanderWolf Images/Shutterstock.com In the U.S, four major carriers — American Airlines (NASDAQ:), United Continental Holdings (NASDAQ:UAL), Delta and Southwest Airlines (NYSE:) — control about 70% of the domestic market. Furthermore, prices of airline stocks — including DAL — have strongly increased over the past decade. If you had invested $1,000 on Delta shares in mid-January 2010, you would now have about $5,270. This change equates to more than 18% in terms of the compound annual growth rate (CAGR). And the calculation does not take into consideration the actual dividend or further return through the reinvestment of that income. Now, investors are wondering whether the growth story of Delta stock may take a pause, or if they should stay invested Delta shares. Although I believe DAL stock is a good long-term investment, there is likely to be short-term in the airline. With that said, let’s take a closer look. A Closer Look at Delta Stock’s Recent Earnings On Jan. 14, Delta stock reported that exceeded expectations. Revenue reached $11.4 billion, a 7% year-over-year increase. Additionally, adjusted earnings per share came at $1.70, a 31% increase YoY, and it was above the guidance of $1.20 to $1.50 This year, the International Air Transport Association (IATA) expects to be spent on air travel. Over the next two decades, the forecast also anticipates about 3.5% CAGR growth. A strong economy, low unemployment and increased consumer spending both in the U.S. and worldwide have been the recent tailwinds for the industry. Additionally, Delta’s have confirmed these industry-wide trends. CEO Ed Bastian said that last year was “the best in Delta’s history operationally, financially and for our customers.” Another reason for the airline’s strong earnings has been the fact Delta Boeing’s (NYSE:) 737 MAX. Therefore, the group has not been affected by various adverse developments following the two crashes of the aircraft. Looking forward, Delta management now anticipates an annual revenue growth of 5% to 7% in Q1 2020. Latin American Developments Could Be a Further Catalyst When evaluating stocks, in addition to looking at various fundamental metrics, I also pay attention to possible future changes and trends within a geography or society. Last year, Delta announced an with LATAM Airlines Group (NYSE:LTM). This will involve an investment of $1.9 billion by Delta in common shares of LATAM, as well as an additional $350 million to support the partnership. In 2012, LAN Airlines and TAM Linhas Aereas had merged to form LATAM Airlines. The Chile-based group 146 destinations in 26 countries, operating more than 1,300 flights a day and transporting 69 million passengers per year. In other words, LATAM’s management has been able to increase operational efficiencies through this merger, and created a brand that has caught the attention of Latin American customers. Now eight years later, Delta is able to access routes to South America that wouldn’t have been possible without the partnership. As travel demand in Latin America grows due to demographic developments, LATAM will be in a robust position to capitalize on its current market dominance. And that long-term growth should bode well both Delta and LATAM stocks. Valuation and Dividend Are on the Side of Delta Stock Despite the decade-long increase in the price of DAL shares, Delta stock currently trades at a forward price-earnings ratio of — a number that should catch the attention of value investors. In other words, the price appreciation is well-deserved. In November 2016, Warren Buffett’s Berkshire Hathaway (NYSE:, NYSE:BRK.B) that the group had taken a stake in the four major domestic airlines. At the time, this rather unexpected investment by the legendary investor had brought the industry into the limelight. Moreover, in March 2019, Berkshire Hathaway in Delta stock. So if Buffett believes in DAL stock long-term, maybe you should too. And, anyone who buys Delta shares can enjoy dividend income, which now stands at a yield of 2.6%. Also, the airline has plenty of cash, as its adjusted free cash flow (FCF) hit $4.2 billion in 2019. Management is confident of generating similar FCF in 2020, and therefore, the annual cash flow would strong enough to cover current payouts and future dividend raises. As the name implies, the airline would be “free” to do whatever it wants with this free cash flow. Most companies would decide to return a good portion of it to investors. Indeed, earlier in 2019, Delta had by 15%. Could we possibly expect a similar dividend increase from the airline in 2020 or by 2021 at the latest? What Could Derail Delta Stock in 2020? Many analysts regard transportation companies, such as Delta, as the backbone of an economy. There are several crucial drivers of change that affect the industry, as well as airline management. These factors include: Economy, such as the price of oil, business cycles and volatility. Environment, such as regulation of emissions and noise pollution. Within this context, airlines such as Delta are under constant pressure to improve performance, ensure passenger safety, increase efficiency, become technologically advanced and — at the same time — excel in customer satisfaction. Overall, the economics of running an airline like Delta are quite complex. However, at the end of the day — like any other company — DAL stock needs revenues to cover operating costs and become profitable. Delta stock’s two largest operating costs are fuel and labor. In 2020, if there is an unexpected and permanent increase in the price of oil, then DAL shares may suffer. Currently, the international benchmark Brent crude is hovering around $64. Yet, over the past 20 years, the price of oil between from as low $28 per barrel to as high as almost $165. Therefore, long-term DAL stock investors would need to keep in mind that the airline industry is cyclical — meaning profits could stall or drop in a slowing economy. And oil prices do matter for Delta stock. The Bottom Line on DAL Stock I believe Delta is a solid income and value stock to round out long-term portfolios. Yet, as the earnings season gets underway in the coming weeks, I expect volatility in broader markets that may also affect the price of DAL stock. Also, Delta’s technical momentum indicators — which describe the speed at which prices move over a given period — are currently in overbought territory. Although these indicators can stay overbought for quite a long time, short-term profit taking in the company’s stock is probably around the corner. There could easily be a move back below $60 in Delta stock in the near future. However, long-term investors may regard any such dip as opportunity to buy into the Delta share price. As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. The post 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.
Looking forward, Delta management now anticipates an annual revenue growth of 5% to 7% in Q1 2020. Latin American Developments Could Be a Further Catalyst When evaluating stocks, in addition to looking at various fundamental metrics, I also pay attention to possible future changes and trends within a geography or society. In 2012, LAN Airlines and TAM Linhas Aereas had merged to form LATAM Airlines. The Chile-based group 146 destinations in 26 countries, operating more than 1,300 flights a day and transporting 69 million passengers per year. Within this context, airlines such as Delta are under constant pressure to improve performance, ensure passenger safety, increase efficiency, become technologically advanced and — at the same time — excel in customer satisfaction.
Furthermore, prices of airline stocks — including DAL — have strongly increased over the past decade. Looking forward, Delta management now anticipates an annual revenue growth of 5% to 7% in Q1 2020. Latin American Developments Could Be a Further Catalyst When evaluating stocks, in addition to looking at various fundamental metrics, I also pay attention to possible future changes and trends within a geography or society. Valuation and Dividend Are on the Side of Delta Stock Despite the decade-long increase in the price of DAL shares, Delta stock currently trades at a forward price-earnings ratio of — a number that should catch the attention of value investors.
Now, investors are wondering whether the growth story of Delta stock may take a pause, or if they should stay invested Delta shares. A Closer Look at Delta Stock’s Recent Earnings On Jan. 14, Delta stock reported that exceeded expectations. Valuation and Dividend Are on the Side of Delta Stock Despite the decade-long increase in the price of DAL shares, Delta stock currently trades at a forward price-earnings ratio of — a number that should catch the attention of value investors.
Furthermore, prices of airline stocks — including DAL — have strongly increased over the past decade. Last year, Delta announced an with LATAM Airlines Group (NYSE:LTM). This will involve an investment of $1.9 billion by Delta in common shares of LATAM, as well as an additional $350 million to support the partnership.
6263.0
2020-01-17 00:00:00 UTC
Boeing Stock Could Run to $400 Under New CEO David Calhoun
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https://www.nasdaq.com/articles/boeing-stock-could-run-to-%24400-under-new-ceo-david-calhoun-2020-01-17
nan
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Boeing (NYSE:) found itself grounded for most of 2019. Source: Alex JW Robinson / Shutterstock.com Even now, Boeing stock still faces plenty of headwinds. Just this week, for example, news hit that Airbus (OTCMKTS:) delivered twice as many airplanes to customers in 2019. Worse, for the first time in three decades, Boeing had a negative net number of airplane orders. On top of that, American Airlines (NASDAQ:) said it would keep the 737 Max out of commission until June 2020, according to Fortune contributor Erik Sherman. This all comes just weeks after Boeing fired CEO Denis Muilenberg, and after the Federal Aviation Administration’s Stephen Dickson said there was no way the FAA would allow the planes to fly again in 2019. Dickson also noted there were still approximately 10 steps left in the certification process. “If you do the math, ,” he said. Yet, the stock is beginning to recover, with a good deal of negativity priced in. From here, while plenty of patience will be required, I believe BA stock could rally back to $375. The Bullish Case for Boeing Stock While Boeing’s January 2020 earnings aren’t going to be great, the stock still appears to have priced in a substantial amount of fear and negativity. Many investors also believe Boeing stock has hit the bottom. For one, “Boeing’s share price if people thought there was a reasonable probability that the 737 MAX would not fly again,” said Jerry Braakman, chief investment officer for First American Trust. Two, Boeing now has a CEO that will more than likely be upfront and honest. On the announcement that David Calhoun would be the next CEO, shares of BA rallied 10%. “Bringing David Calhoun in is what ,” said Kevin Simpson, chief investment officer at Capital Wealth Planning. “He’s the polar opposite of David Muilenberg. He’s not hiding things under the rug.” Three, BA stock is a solid blue-chip dividend stock. As long as the 737 Max can return to service this year, I don’t believe we’ll see any disruption to the dividend. Four, it’s often a good idea to buy stocks when they’re the most hated — especially if they’ve already priced in a good deal of negativity. The Bottom Line Granted, Boeing stock still faces plenty of headwinds and uncertainty. However, if the new CEO can turn things around, and engineers can get a design fix approved, the stock could run to $400. With the stock firmly holding support, I’d buy and hold BA stock for the long term. As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities. The post 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.
On top of that, American Airlines (NASDAQ:) said it would keep the 737 Max out of commission until June 2020, according to Fortune contributor Erik Sherman. This all comes just weeks after Boeing fired CEO Denis Muilenberg, and after the Federal Aviation Administration’s Stephen Dickson said there was no way the FAA would allow the planes to fly again in 2019. For one, “Boeing’s share price if people thought there was a reasonable probability that the 737 MAX would not fly again,” said Jerry Braakman, chief investment officer for First American Trust.
Source: Alex JW Robinson / Shutterstock.com Even now, Boeing stock still faces plenty of headwinds. The Bottom Line Granted, Boeing stock still faces plenty of headwinds and uncertainty. With the stock firmly holding support, I’d buy and hold BA stock for the long term.
The Bullish Case for Boeing Stock While Boeing’s January 2020 earnings aren’t going to be great, the stock still appears to have priced in a substantial amount of fear and negativity. He’s not hiding things under the rug.” Three, BA stock is a solid blue-chip dividend stock. With the stock firmly holding support, I’d buy and hold BA stock for the long term.
The Bullish Case for Boeing Stock While Boeing’s January 2020 earnings aren’t going to be great, the stock still appears to have priced in a substantial amount of fear and negativity. He’s not hiding things under the rug.” Three, BA stock is a solid blue-chip dividend stock. With the stock firmly holding support, I’d buy and hold BA stock for the long term.
6264.0
2020-01-17 00:00:00 UTC
Can United Airlines Surge Another 582%?
AAL
https://www.nasdaq.com/articles/can-united-airlines-surge-another-582-2020-01-17
nan
nan
The 2010s were a good decade for the U.S. stock market, but an even better one for United Airlines (NASDAQ: UAL), which saw its stock rise 582%. United deserves some serious credit, as it was able to outperform the market. Given that airlines were once considered poor investments by legendary investors like Warren Buffett, this decade of outperformance is all the more impressive. With 2019 fourth-quarter earnings approaching on Jan. 21, now is a great time to reflect on United's strong decade and look at what's in store for this year. UAL data by YCharts A new hope In many ways, it was the bankruptcy of Delta Air Lines (NYSE: DAL) and Northwest in 2005 that would set the stage for a surge in airline stocks. Back then, it was fuel costs that crippled airline margins, a problem that now seems to be less of a threat given the massive supply increase of U.S. oil that has more than doubled over the past decade. Delta would go on to merge with Northwest in 2008, followed by United Airlines' purchase of Continental Airlines in 2010. Although the deal was just $3.2 billion, it made United the world's largest airline at the time. Fast forward to today, and United currently ranks as the third-largest U.S. airline. Aside from the infamous forcible passenger removal incident on Flight 3411 in 2017, the last five years have been beneficial to United, which has improved its balance sheet and pricing strategy. United continued to impress in 2019,raising 2019 earnings per share (EPS) guidance in July and again in October to $11.25 to $12.25. 2020 EPS is expected to be $11.00 to $13.00. According to United, third-quarter 2019 adjusted EPS was up 31% year over year (YoY). Image source: Getty Images. Slowing growth Although third-quarter earnings were impressive, United finds itself facing some difficult comparisons in 2020. One of the challenges for United will be keeping its Cost per Available Seat Mile (CASM) low. CASM, often quoted as CASM-ex when excluding fuel, is a good way for airlines to view their total costs independent of the volatility of oil prices. United President Scott Kirby put it well when he asked on the 2019 Q3earnings call "So how can we continue to invest in our people and our customer experience and drive toward flat CASM-ex? For one thing, we plan to take advantage of increasing gauge." Changing gauge means passengers switch aircraft throughout the course of a flight, typically from smaller planes that feed into a larger plane going to a larger hub. This process can be a headache for passengers but saves airlines money. By wanting to increase its gauge, United is saying that it wants more seats per departure, forecasting a 3% increase in seats per departure by the end of 2020. According to Kirby, United has "approximately 13% fewer seats per domestic departure compared to Delta," which is one reason why increasing gauge is the main way United will try to decrease costs going forward. United touted that it was "#1 in on-time departures at all hubs where we face a large competitor," so investors should look to see how increasing gauge affects United's punctuality. That being said, the strategy does make sense for United, seeing as it has some of the largest hubs across major U.S. cities. Large aircraft flying from big city to big city is an efficient way for airlines to avoid the typically more expensive use of regional aircraft. With the Boeing (NYSE: BA) 737 MAX expected to enter into service in the coming months, United could benefit from redirecting passengers to larger planes to save on costs. American Airlines (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) also have orders for the 737 MAX, meaning once the MAX enters into service there could be a spike in supply, leading to lower Passenger Revenue Per Available Seat Mile (RASM) despite the potential cost savings. Financials UAL Debt to Capital (Annual) data by YCharts United and JetBlue Airways (NASDAQ: JBLU) are the only two major U.S. airlines that don't pay a dividend. In terms of a value stock, United is second behind American Airlines in net total long-term debt and debt to capital. A high debt to capital (D/C) ratio suggests that a company uses a lot of debt to finance its operations, which could be risky if revenues slow and a company is strained to make payments on its debt. United's D/C ratio has come down since the start of the decade but remains something to watch in the event that revenue growth begins to slow as United expects in 2020. Companies with stronger balance sheets, like Southwest, which has the lowest D/C ratio and least net total long-term debt, tend to garner higher P/E ratios as financing operations with equity over debt is generally preferred. Therefore, it shouldn't be surprising that United and American have the lowest P/E ratios of the largest six U.S. airlines. Looking ahead United had a fantastic decade, but the company's earnings forecast points to stalling growth. United is entering into what most great companies face after a meteoric rise -- determining how to grow from here. United is a decent airline stock, but investors should watch how the company adjusts to a year of tough comparables, if it will be able to keep costs low, and how the integration of the 737 MAX will affect supply, and thus, revenue. 10 stocks we like better than United Airlines Holdings When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and United Airlines Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Daniel Foelber owns shares of American Airlines Group and Southwest Airlines. The Motley Fool owns shares of and recommends Delta Air Lines, Microsoft, and Southwest Airlines and recommends the following options: long January 2021 $85 calls on Microsoft and short January 2021 $115 calls on Microsoft. 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.
American Airlines (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) also have orders for the 737 MAX, meaning once the MAX enters into service there could be a spike in supply, leading to lower Passenger Revenue Per Available Seat Mile (RASM) despite the potential cost savings. UAL data by YCharts A new hope In many ways, it was the bankruptcy of Delta Air Lines (NYSE: DAL) and Northwest in 2005 that would set the stage for a surge in airline stocks. Financials UAL Debt to Capital (Annual) data by YCharts United and JetBlue Airways (NASDAQ: JBLU) are the only two major U.S. airlines that don't pay a dividend.
American Airlines (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) also have orders for the 737 MAX, meaning once the MAX enters into service there could be a spike in supply, leading to lower Passenger Revenue Per Available Seat Mile (RASM) despite the potential cost savings. In terms of a value stock, United is second behind American Airlines in net total long-term debt and debt to capital. Companies with stronger balance sheets, like Southwest, which has the lowest D/C ratio and least net total long-term debt, tend to garner higher P/E ratios as financing operations with equity over debt is generally preferred.
American Airlines (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) also have orders for the 737 MAX, meaning once the MAX enters into service there could be a spike in supply, leading to lower Passenger Revenue Per Available Seat Mile (RASM) despite the potential cost savings. The 2010s were a good decade for the U.S. stock market, but an even better one for United Airlines (NASDAQ: UAL), which saw its stock rise 582%. In terms of a value stock, United is second behind American Airlines in net total long-term debt and debt to capital.
American Airlines (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) also have orders for the 737 MAX, meaning once the MAX enters into service there could be a spike in supply, leading to lower Passenger Revenue Per Available Seat Mile (RASM) despite the potential cost savings. The 2010s were a good decade for the U.S. stock market, but an even better one for United Airlines (NASDAQ: UAL), which saw its stock rise 582%. According to Kirby, United has "approximately 13% fewer seats per domestic departure compared to Delta," which is one reason why increasing gauge is the main way United will try to decrease costs going forward.
6265.0
2020-01-14 00:00:00 UTC
Nasdaq 100 Movers: ALXN, AAL
AAL
https://www.nasdaq.com/articles/nasdaq-100-movers%3A-alxn-aal-2020-01-14
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In early trading on Tuesday, shares of American Airlines Group (AAL) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.2%. Year to date, American Airlines Group has lost about 1.4% of its value. And the worst performing Nasdaq 100 component thus far on the day is Alexion Pharmaceuticals (ALXN), trading down 2.3%. Alexion Pharmaceuticals is showing a gain of 2.9% looking at the year to date performance. Two other components making moves today are Baidu (BIDU), trading down 2.2%, and Incyte Corporation (INCY), trading up 3.2% on the day. VIDEO: Nasdaq 100 Movers: ALXN, 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 Tuesday, shares of American Airlines Group (AAL) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.2%. VIDEO: Nasdaq 100 Movers: ALXN, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is Alexion Pharmaceuticals (ALXN), trading down 2.3%.
In early trading on Tuesday, shares of American Airlines Group (AAL) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.2%. VIDEO: Nasdaq 100 Movers: ALXN, 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 has lost about 1.4% of its value.
In early trading on Tuesday, shares of American Airlines Group (AAL) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.2%. VIDEO: Nasdaq 100 Movers: ALXN, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is Alexion Pharmaceuticals (ALXN), trading down 2.3%.
In early trading on Tuesday, shares of American Airlines Group (AAL) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.2%. VIDEO: Nasdaq 100 Movers: ALXN, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is Alexion Pharmaceuticals (ALXN), trading down 2.3%.
6266.0
2020-01-14 00:00:00 UTC
Can Delta Air Lines Stock Keep Soaring in 2020?
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https://www.nasdaq.com/articles/can-delta-air-lines-stock-keep-soaring-in-2020-2020-01-14
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In the past, Delta Air Lines (NYSE: DAL) had a poor reputation as a slow and stodgy legacy airline. The darkest hour came in 2005, when the company filed for Chapter 11 bankruptcy. Since emerging as an independent company in 2007, Delta has rebranded and restructured a culture of excellence, achieving a reputation that has now earned it "industry-leading reliability and record customer satisfaction." Delta will hope to wrap up a solid 2019 when it reports Q4 earnings on Jan. 14. Here's what investors need to know about Delta and expect from its earnings report. The paradigm shift DAL data by YCharts The past decade was nothing less than revolutionary in terms of investor sentiment toward airline stocks. All six major airline stocks ascended over 200% in the 2010s, beating the S&P 500 during one of the best bull markets in history. In years past, even top investors like Warren Buffett criticized the cyclical nature and capital intensity of airlines. That changed in 2016 when Berkshire Hathaway purchased shares of four major airlines, one of which was Delta. Buffett then added more than 5 million shares in 2019. Image Source: Getty Images. Q3 earnings and Q4 outlook Delta reported Q3 2019 basic earnings per share (EPS) of $2.32 -- a 29% increase year over year (YOY). With the economy booming and the summer travel season in full swing, third-quarter earnings are typically one of the best for airline stocks. For Delta, it was outstanding. CEO Edward H. Bastian noted, "[W]e had [a] record summer in terms of both volumes and revenues, so all-time high revenues for us." Most of the growth for air travel is from emerging markets, but Delta was able to increase domestic revenues by 8% in the third quarter of 2019. Basic earnings per share for the nine months ended Sept. 30, 2019 stand at $5.61 versus $4.20 from the same period in 2018, a 33% increase. Delta is forecasting Q3 2019 EPS of $1.20 to $1.50, wrapping up 2019 guidance of $6.75 to $7.25 and a 2020 outlook of $6.75 to $7.75. Although 2020 isn't expected to have the same YOY growth as 2018 to 2019, Delta's earnings, compared to the price, make it a powerhouse value stock. Financial analysis DAL data by YCharts Between May 2019 and July 2019, Delta increased its quarterly dividend by 15%, fueling a decade that ended with a 570% increase to its dividend. The company's 2.5% dividend yield is the highest of all airline stocks, making Delta a competitive dividend stock, as well. In terms of value, Delta used $468 million of its $1.43 billion in free cash flow (FCF) from 3Q 2019 for "$208 million in share repurchases and $260 million in dividends." The company expects total 2019 free cash flow to be about $4 billion and is guiding for $4 billion for 2020, as well, meaning cash flow is strong enough to cover current payouts and future dividend raises. On top of that, Delta's price to free cash flow is second only to Southwest Airlines, and its price-to-earnings (P/E) ratio sits at just 8.2, which is less than a third of the current S&P 500's P/E ratio. What to watch Delta Air Lines had nothing short of a banner decade full of record breakers and improving economics for the industry as a whole. For 4Q 2019, investors should look to make sure that earnings come in between the $1.20-$1.50 range and the cash flow outlook stays where it is. Despite Delta stock's 223% surge in the 2010s, the core valuation metrics remain low, meaning Delta's stock appreciation is well deserved. Keep in mind that the airline industry is cyclical, meaning profits could stall or drop in a slowing economy. That being said, low fuel prices and growing demand for air travel in emerging markets are two tailwinds that should persist over the long term, making Delta Air Lines a solid income and value stock to round out your portfolio. 10 stocks we like better than Delta Air Lines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Delta Air Lines wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Daniel Foelber owns shares of American Airlines Group and Southwest Airlines. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, and Southwest Airlines. The Motley Fool recommends Alaska Air Group and JetBlue Airways and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short January 2020 $220 calls on Berkshire Hathaway (B shares). 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.
Since emerging as an independent company in 2007, Delta has rebranded and restructured a culture of excellence, achieving a reputation that has now earned it "industry-leading reliability and record customer satisfaction." The paradigm shift DAL data by YCharts The past decade was nothing less than revolutionary in terms of investor sentiment toward airline stocks. What to watch Delta Air Lines had nothing short of a banner decade full of record breakers and improving economics for the industry as a whole.
Q3 earnings and Q4 outlook Delta reported Q3 2019 basic earnings per share (EPS) of $2.32 -- a 29% increase year over year (YOY). The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, and Southwest Airlines. The Motley Fool recommends Alaska Air Group and JetBlue Airways and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short January 2020 $220 calls on Berkshire Hathaway (B shares).
The company's 2.5% dividend yield is the highest of all airline stocks, making Delta a competitive dividend stock, as well. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, and Southwest Airlines. The Motley Fool recommends Alaska Air Group and JetBlue Airways and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short January 2020 $220 calls on Berkshire Hathaway (B shares).
Q3 earnings and Q4 outlook Delta reported Q3 2019 basic earnings per share (EPS) of $2.32 -- a 29% increase year over year (YOY). * David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Delta Air Lines wasn't one of them! The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, and Southwest Airlines.
6267.0
2020-01-14 00:00:00 UTC
4 Stocks Buffett Seems Likeliest to Sell in 2020
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https://www.nasdaq.com/articles/4-stocks-buffett-seems-likeliest-to-sell-in-2020-2020-01-14
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When Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) CEO Warren Buffett makes a move, Wall Street and retail investors pay close attention. That's the sort of respect Buffett has earned after transforming $10,000 in seed capital in the mid-1950s into a net worth of more than $89 billion today. Buffett has built up his own net worth, as well as created more than $400 billion in value for Berkshire Hathaway's shareholders, two ways. First, his company has acquired more than five dozen businesses in a variety of sectors and industries, all of which contribute to Berkshire's top and bottom lines. Secondly, the Oracle of Omaha, as Buffett has come to be known, and a small number of his team are responsible for investing Berkshire Hathaway's money into a portfolio of stocks. Right now Berkshire Hathaway holds 48 securities with an aggregate market value of $249 billion. Although Buffett is best known for his buy-and-hold ethos, it's not uncommon for new companies to be added, or existing positions to be pared or completely sold out of. While it's always a mystery as to what Buffett and his team will sell next, the following four stocks appear the likeliest to get the heave-ho at some point in 2020. Berkshire Hathaway CEO Warren Buffett at his company's annual shareholder meeting. Image source: The Motley Fool. Phillips 66 If my arm were twisted, I'd choose integrated oil and gas giant Phillips 66 (NYSE: PSX) as the stock that's the most likely to be completely sold out of in 2020. For what it's worth, Berkshire Hathaway already sold more than 6.7 million shares of its stake in Phillips 66 in 2019, representing a reduction of 56% from where it began the year. This clearly suggests that Buffett would have little issue in parting with the remaining 5.18 million shares Berkshire owns. There are two reasons selling Phillips 66 here makes sense. First -- and by far the more important reason -- is that Buffett committed $10 billion to Occidental Petroleum in April 2019 to aid in its acquisition of Anadarko. While this is ultimately a bet on higher oil prices, which is something Buffett could benefit from by holding both integrated oil giants, the magnitude of Buffett's commitment implies that he believes Occidental offers a greater potential return on investment than Phillips 66. Secondly, Phillips 66 has more than tripled in value since Buffett took his initial stake in 2012, so profit-taking could be in order. Energy has never represented a large percentage of Berkshire's holdings, so freeing up additional cash by selling Phillips 66 seems like a logical move. Image source: Getty Images. Johnson & Johnson Another likely candidate to get the boot is healthcare conglomerate Johnson & Johnson (NYSE: JNJ). Berkshire currently owns 321,000 shares, worth $47 million, making J&J one of Berkshire's smallest positions by value. Once upon a time, just prior to the Great Recession, Buffett was Johnson & Johnson's fourth-largest shareholder. But the Oracle of Omaha wound up selling practically all of his company's position in the early part of the previous decade. In 2011, The Wall Street Journal noted that Buffett wasn't particularly happy with the way J&J structured its acquisition of medical-device maker Synthes. The $19.7 billion deal was paid for with cash and stock -- and Buffett loathes the idea of using common stock as capital when cash is available. Not long after this deal, the paring down of J&J began. Selling Berkshire's remaining stake in J&J would also make sense given that Johnson & Johnson's reliance on pharmaceutical sales as a percentage of total revenue has increased over the past decade. Buffett isn't a fan of having to keep up on clinical trial data, which is why healthcare represents such a small percentage of his company's investment holdings. I expect J&J to be removed sooner rather than later. Image source: Getty Images. Charter Communications Cable services provider Charter Communications (NASDAQ: CHTR) is another candidate that could get the ax from Berkshire Hathaway's portfolio. The more than 5.4 million shares of Charter that Buffett's company owns are worth $2.7 billion, making it Berkshire's 15th-largest holding. As with Phillips 66, Buffett has been paring down his stake in Charter for some time. Last year, for instance, over 1.6 million shares of the company were sold. One reason this paring down could continue is that Berkshire Hathaway is up big on its initial stake, opened in 2014. The position having essentially tripled in value, it wouldn't be surprising to see the Oracle of Omaha ring the register and put this capital to work elsewhere. Though Buffett intends to hold onto his investments for long periods of time and doesn't just sell in order to lock in gains, the other reason selling could be prudent is Charter's valuation. With top-line sales growth estimated at only 4% to 5% but a forward P/E ratio of 38, Charter isn't cheap. Buffett likes to own good companies at fair prices -- and this is anything but a "fair" price. Image source: American Airlines. American Airlines Group Lastly, I believe American Airlines Group (NASDAQ: AAL) could be shown the door in 2020. Berkshire Hathaway currently owns a 10% stake in the major airline. Warren Buffett first began diving into airline stocks during the second half of 2016, after West Texas Intermediate oil dipped to as low as $26 a barrel in the first quarter of that year. With crude prices sinking, it gave major airlines the pricing power to compete with regional airlines, as well as fattened up their operating margins. The thing is, we're almost certainly in the latter innings of the current economic expansion, and airlines have an abysmal operating track record during economic contractions and recessions. American Airlines is particularly worrisome given that it has more than $29 billion in net debt. Though management has pushed to modernize the company's fleet, and interest rates do remain at attractive levels for borrowing purposes, American Airlines' debt situation is a serious concern. I suspect it may be enough of a worry to get Buffett to "deplane" from the stock completely in 2020. 10 stocks we like better than Johnson & Johnson When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Johnson & Johnson wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short January 2020 $220 calls on Berkshire Hathaway (B shares). 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.
American Airlines Group Lastly, I believe American Airlines Group (NASDAQ: AAL) could be shown the door in 2020. Energy has never represented a large percentage of Berkshire's holdings, so freeing up additional cash by selling Phillips 66 seems like a logical move. Warren Buffett first began diving into airline stocks during the second half of 2016, after West Texas Intermediate oil dipped to as low as $26 a barrel in the first quarter of that year.
American Airlines Group Lastly, I believe American Airlines Group (NASDAQ: AAL) could be shown the door in 2020. When Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) CEO Warren Buffett makes a move, Wall Street and retail investors pay close attention. The more than 5.4 million shares of Charter that Buffett's company owns are worth $2.7 billion, making it Berkshire's 15th-largest holding.
American Airlines Group Lastly, I believe American Airlines Group (NASDAQ: AAL) could be shown the door in 2020. Secondly, the Oracle of Omaha, as Buffett has come to be known, and a small number of his team are responsible for investing Berkshire Hathaway's money into a portfolio of stocks. The more than 5.4 million shares of Charter that Buffett's company owns are worth $2.7 billion, making it Berkshire's 15th-largest holding.
American Airlines Group Lastly, I believe American Airlines Group (NASDAQ: AAL) could be shown the door in 2020. The more than 5.4 million shares of Charter that Buffett's company owns are worth $2.7 billion, making it Berkshire's 15th-largest holding. As with Phillips 66, Buffett has been paring down his stake in Charter for some time.
6268.0
2020-01-10 00:00:00 UTC
Nasdaq 100 Movers: AAL, ISRG
AAL
https://www.nasdaq.com/articles/nasdaq-100-movers%3A-aal-isrg-2020-01-10
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In early trading on Friday, shares of Intuitive Surgical (ISRG) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.5%. Year to date, Intuitive Surgical registers a 2.5% gain. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group (AAL), trading down 2.0%. American Airlines Group is lower by about 4.5% looking at the year to date performance. Two other components making moves today are Liberty Global (LBTYK), trading down 2.0%, and Monster Beverage Corp (MNST), trading up 2.4% on the day. VIDEO: Nasdaq 100 Movers: AAL, ISRG The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group (AAL), trading down 2.0%. VIDEO: Nasdaq 100 Movers: AAL, ISRG 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 is lower by about 4.5% looking at the year to date performance.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group (AAL), trading down 2.0%. VIDEO: Nasdaq 100 Movers: AAL, ISRG 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, Intuitive Surgical registers a 2.5% gain.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group (AAL), trading down 2.0%. VIDEO: Nasdaq 100 Movers: AAL, ISRG 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 Friday, shares of Intuitive Surgical (ISRG) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.5%.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group (AAL), trading down 2.0%. VIDEO: Nasdaq 100 Movers: AAL, ISRG 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 Friday, shares of Intuitive Surgical (ISRG) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.5%.
6269.0
2020-01-10 00:00:00 UTC
3 Big Stock Charts for Friday: Square, American Airlines, and Kinder Morgan
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https://www.nasdaq.com/articles/3-big-stock-charts-for-friday%3A-square-american-airlines-and-kinder-morgan-2020-01-10
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It suddenly looks like U.S. stocks are back on track. Tensions in the Middle East have eased and U.S. stocks — again — have reached new highs. Source: Shutterstock Short of a stunning disappointment in Friday’s jobs report, there seems little that can slow this market down. That would be particularly good news for Friday’s three big stock charts. All three stocks have a reasonable amount of correlation to macroeconomic and market sentiment. All three big stock charts show real potential for a significant near-term move. With a little bit of external help, those moves could go in the right direction. Square (SQ) Source: Provided by Finviz Right now, Square (NYSE:) looks like it’s at the beginning of a breakout. The one big concern with the first of Friday’s big stock charts is that we have been here before: But there are concerns. Technically, again, we’ve been here before. SQ looked set for a breakout in November before fading at the 200DMA. A summer rally was undercut by a disappointing second quarter earnings report. The chart looks positive, but there’s still the chance of a reversal. American Airlines (AAL) Source: Provided by Finviz The same could be said of American Airlines (NYSE:). The economy is growing. Global demand for air travel should continue to rise. The airline industry in the U.S. has stopped its destructive pattern of pricing wars. Yet AAL stock remains one of the market’s cheapest stocks, and the second of Friday’s big stock charts doesn’t yet look bullish: Fundamentally, the case seems more positive. Again, AAL stock is one of the market’s most inexpensive names. A 5.3x forward price-to-earnings multiple is the 3rd-lowest in the S&P 500. Among components on that index, only Mylan (NYSE:), which is dealing with debt and secular pressure on its generic business, and insurer Unum Group (NYSE:), which faces significant potential long-term liabilities in its long-term care business, are cheaper on the same basis. AAL has cyclical risk and is managing through the 737 MAX situation at supplier Boeing (NYSE:), but does not face any such existential crisis. In that context, AAL stock seems simply too cheap. But “too cheap” has been a dangerous phrase in a market that has preferred growth to value, and the chart at the very least suggests investors can stay patient before buyers pile in. Kinder Morgan (KMI) Source: Provided by Finviz Pipeline operator Kinder Morgan (NYSE:) seems to have had its breakout already, with shares bouncing sharply amid optimism toward energy stocks. But the rally in the third of Friday’s big stock charts may not be done: Fundamentally, KMI stock is intriguing as well. A 4.6% dividend yield is attractive on its own. But Kinder Morgan already has announced that it will increase its payout 25% in 2020. That puts the forward yield above 6%, and represents another step in the company’s effort to repair amid a disastrous dividend cut back in 2015. That said, there’s still work to do in regaining trust and driving growth. The recent bout of optimism toward U.S. energy might not last, particularly with the geopolitical environment (hopefully) returning to normal. Some investors may still have a “once bitten, twice shy” attitude toward KMI stock. And there are pipeline operators available at similar yields and multiples — and some of those stocks aren’t at resistance. I do like KMI here, but as always investors need to keep the potential risks in mind. As of this writing, Vince Martin has no positions in any securities mentioned. The post 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.
AAL has cyclical risk and is managing through the 737 MAX situation at supplier Boeing (NYSE:), but does not face any such existential crisis. American Airlines (AAL) Source: Provided by Finviz The same could be said of American Airlines (NYSE:). Yet AAL stock remains one of the market’s cheapest stocks, and the second of Friday’s big stock charts doesn’t yet look bullish: Fundamentally, the case seems more positive.
American Airlines (AAL) Source: Provided by Finviz The same could be said of American Airlines (NYSE:). Yet AAL stock remains one of the market’s cheapest stocks, and the second of Friday’s big stock charts doesn’t yet look bullish: Fundamentally, the case seems more positive. Again, AAL stock is one of the market’s most inexpensive names.
Yet AAL stock remains one of the market’s cheapest stocks, and the second of Friday’s big stock charts doesn’t yet look bullish: Fundamentally, the case seems more positive. American Airlines (AAL) Source: Provided by Finviz The same could be said of American Airlines (NYSE:). Again, AAL stock is one of the market’s most inexpensive names.
Yet AAL stock remains one of the market’s cheapest stocks, and the second of Friday’s big stock charts doesn’t yet look bullish: Fundamentally, the case seems more positive. American Airlines (AAL) Source: Provided by Finviz The same could be said of American Airlines (NYSE:). Again, AAL stock is one of the market’s most inexpensive names.
6270.0
2020-01-09 00:00:00 UTC
Can Southwest Maintain Its Revenue Growth Trajectory In 2020 Despite The Grounding Of Its 737 MAX Fleet?
AAL
https://www.nasdaq.com/articles/can-southwest-maintain-its-revenue-growth-trajectory-in-2020-despite-the-grounding-of-its
nan
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After the Federal Aviation Administration’s emergency order last March, Southwest Airlines (NYSE: LUV) grounded 34 Boeing 737 MAX aircraft in its fleet. Despite the expected decline in capacity from the groundings, the airline’s revenues are likely to witness single-digit growth in revenues over 2019 as well as 2020 owing to growing passenger demand which has driven up airfares. Trefis details the key drivers of Southwest Airlines’ Revenues in an interactive dashboard along with the expectations for 2020, parts of which are highlighted below A Quick Look at Southwest Airlines’ Revenues Southwest Airlines reported $22 billion in Total Revenues for full-year 2018. It includes three revenue streams: Passenger Revenue: $20.5 billion in FY2018 (93% of Total Revenues). It represents income from the sale of air tickets and other ancillary offerings for the company’s mainline and affiliate carriers. If a ticket is sold and travel is yet to happen, the company recognizes income from such tickets as air traffic liability. Due to the complex structure of ticket pricing, cancellation and rescheduling, a certain portion of the liability is recognized as passenger revenues based on recognized historical patterns. Cargo Revenue: $175 million in FY2018 (1% of Total Revenues). It represents income from freight and mail services. Other Revenue: $1.3 billion in FY2018 (6% of Total Revenues). It comprises of the sale of loyalty points to credit card companies. Southwest Airlines’ Total Revenue has grown by 8% from $20.2 billion in 2016 to $22 billion in 2018, and is expected to reach $23.5 billion in 2020 The company generates a bulk of its revenues from air ticket sales, which contribute nearly 93% of Passenger revenues. Redemption of certain passenger loyalty rewards and other ancillary services such as baggage fees and on-board sales are also recognized as Passenger revenues. Air ticket sales are driven by available seat miles, passenger yield, and aircraft occupancy level. In the last three quarters, Southwest’s available seat miles have declined by 2% and aircraft occupancy levels have remained relatively flat. Moreover, the removal of MAX aircraft from flight schedule until April’20 is likely to have a negative impact on capacity growth in the near term. However, growing passenger yield from rising airfares is expected to expand passenger revenues by 2.5% in 2019 and 4% in 2020. In 2019, the company’s Cargo revenues have observed headwinds primarily due to a weak demand for air cargo services, and this trend is unlikely to change in 2020. Other Revenues comprise of the sale of loyalty points to credit card companies and other miscellaneous services such as lounge access, and has remained relatively stable over the last few years. We expect it to continue growing with the Passenger revenues. Additional details about how key operating metrics underlying Southwest Airlines’ Passenger Revenues have trended over the years are available in our interactive dashboard. What’s behind Trefis? See How it’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams All Trefis Data Like our charts? Explore example interactive dashboards and create your own The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
After the Federal Aviation Administration’s emergency order last March, Southwest Airlines (NYSE: LUV) grounded 34 Boeing 737 MAX aircraft in its fleet. Other Revenues comprise of the sale of loyalty points to credit card companies and other miscellaneous services such as lounge access, and has remained relatively stable over the last few years. Additional details about how key operating metrics underlying Southwest Airlines’ Passenger Revenues have trended over the years are available in our interactive dashboard.
Trefis details the key drivers of Southwest Airlines’ Revenues in an interactive dashboard along with the expectations for 2020, parts of which are highlighted below A Quick Look at Southwest Airlines’ Revenues Southwest Airlines reported $22 billion in Total Revenues for full-year 2018. Air ticket sales are driven by available seat miles, passenger yield, and aircraft occupancy level. Other Revenues comprise of the sale of loyalty points to credit card companies and other miscellaneous services such as lounge access, and has remained relatively stable over the last few years.
Trefis details the key drivers of Southwest Airlines’ Revenues in an interactive dashboard along with the expectations for 2020, parts of which are highlighted below A Quick Look at Southwest Airlines’ Revenues Southwest Airlines reported $22 billion in Total Revenues for full-year 2018. It includes three revenue streams: Passenger Revenue: $20.5 billion in FY2018 (93% of Total Revenues). Southwest Airlines’ Total Revenue has grown by 8% from $20.2 billion in 2016 to $22 billion in 2018, and is expected to reach $23.5 billion in 2020 The company generates a bulk of its revenues from air ticket sales, which contribute nearly 93% of Passenger revenues.
Trefis details the key drivers of Southwest Airlines’ Revenues in an interactive dashboard along with the expectations for 2020, parts of which are highlighted below A Quick Look at Southwest Airlines’ Revenues Southwest Airlines reported $22 billion in Total Revenues for full-year 2018. Southwest Airlines’ Total Revenue has grown by 8% from $20.2 billion in 2016 to $22 billion in 2018, and is expected to reach $23.5 billion in 2020 The company generates a bulk of its revenues from air ticket sales, which contribute nearly 93% of Passenger revenues. Air ticket sales are driven by available seat miles, passenger yield, and aircraft occupancy level.
6271.0
2020-01-09 00:00:00 UTC
What Factors Will Drive Alaska Airlines' Revenues In 2020?
AAL
https://www.nasdaq.com/articles/what-factors-will-drive-alaska-airlines-revenues-in-2020-2020-01-10
nan
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In 2019, Alaska Airlines’ (NYSE: ALK) revenues continued to expand from stable capacity and rising airfares while other major carriers such as Southwest Airlines and American Airlines faced headwinds from the Boeing 737 MAX groundings. As the Boeing 737 MAX is yet to clear regulatory proceedings and be available for service, the U.S. airline industry is likely to face another year of capacity shortage. Notably, Alaska Airlines was slated to induct nine Boeing 737 MAX aircraft into its fleet – driving a 3-4% growth in capacity. However, the overall capacity shortage in the industry should continue to keep airfare elevated – helping sustain growth in Alaska Airlines’ revenues over 2020, as detailed in our interactive dashboard. A Quick Look at Alaska Airlines’ Revenues Alaska Airlines’ reported $8.3 billion in Total Revenues for full-year 2018. It includes three revenue streams: Passenger Revenue: $7.6 billion in FY2018 (92% of Total Revenues). It represents income from the sale of air tickets and other ancillary offerings for the company’s mainline and affiliate carriers. If a ticket is sold and travel is yet to happen, the company recognizes income from such tickets as air traffic liability. Due to the complex structure of ticket pricing, cancellation and rescheduling, a certain portion of the liability is recognized as passenger revenues based on recognized historical patterns. Cargo Revenue: $198 million in FY2018 (3% of Total Revenues). It represents income from freight and mail services. Mileage Plan Revenue: $434 million in FY2018 (5% of Total Revenues). It comprises of income from loyalty point sales to credit card companies. Alaska Airlines’ Total Revenue has grown by 40% from $6 billion in 2016 to $8.3 billion in 2018, and is expected to reach $9.4 billion in 2020 The company generates a bulk of its revenues from air ticket sales, which contribute nearly 85% of Passenger revenues. Redemption of certain passenger loyalty rewards and other ancillary services such as baggage fees and on-board sales are also recognized as Passenger revenues. Air ticket sales are driven by available seat miles, passenger yield, and aircraft occupancy level. In the last three quarters, Alaska’s available seat miles have increased by 1.5%, aircraft occupancy levels have remained relatively flat, and passenger yield has grown by 4%. This has enabled Alaska’s passenger revenues to grow at a high single-digit rate in 2019. Mileage Plan comprises of income from loyalty point sales to credit card companies and Cargo Revenue includes income from mail services and other amenities such as lounge access. Income from these other sources have remained relatively stable over the last few years and we expect it to continue growing with the Passenger revenues in 2020. Additional details about how key operating metrics underlying Alaska Airlines’ Passenger Revenues have trended over the years are available in our interactive dashboard. What’s behind Trefis? See How it’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams All Trefis Data Like our charts? Explore example interactive dashboards and create your own The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
However, the overall capacity shortage in the industry should continue to keep airfare elevated – helping sustain growth in Alaska Airlines’ revenues over 2020, as detailed in our interactive dashboard. In the last three quarters, Alaska’s available seat miles have increased by 1.5%, aircraft occupancy levels have remained relatively flat, and passenger yield has grown by 4%. Additional details about how key operating metrics underlying Alaska Airlines’ Passenger Revenues have trended over the years are available in our interactive dashboard.
A Quick Look at Alaska Airlines’ Revenues Alaska Airlines’ reported $8.3 billion in Total Revenues for full-year 2018. Air ticket sales are driven by available seat miles, passenger yield, and aircraft occupancy level. Mileage Plan comprises of income from loyalty point sales to credit card companies and Cargo Revenue includes income from mail services and other amenities such as lounge access.
A Quick Look at Alaska Airlines’ Revenues Alaska Airlines’ reported $8.3 billion in Total Revenues for full-year 2018. It includes three revenue streams: Passenger Revenue: $7.6 billion in FY2018 (92% of Total Revenues). Alaska Airlines’ Total Revenue has grown by 40% from $6 billion in 2016 to $8.3 billion in 2018, and is expected to reach $9.4 billion in 2020 The company generates a bulk of its revenues from air ticket sales, which contribute nearly 85% of Passenger revenues.
A Quick Look at Alaska Airlines’ Revenues Alaska Airlines’ reported $8.3 billion in Total Revenues for full-year 2018. Mileage Plan comprises of income from loyalty point sales to credit card companies and Cargo Revenue includes income from mail services and other amenities such as lounge access. Income from these other sources have remained relatively stable over the last few years and we expect it to continue growing with the Passenger revenues in 2020.
6272.0
2020-01-08 00:00:00 UTC
Notable Wednesday Option Activity: VZ, AAL, INTU
AAL
https://www.nasdaq.com/articles/notable-wednesday-option-activity%3A-vz-aal-intu-2020-01-08
nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Verizon Communications Inc (Symbol: VZ), where a total of 110,600 contracts have traded so far, representing approximately 11.1 million underlying shares. That amounts to about 90.1% of VZ's average daily trading volume over the past month of 12.3 million shares. Particularly high volume was seen for the $57.50 strike call option expiring January 17, 2020, with 45,669 contracts trading so far today, representing approximately 4.6 million underlying shares of VZ. Below is a chart showing VZ's trailing twelve month trading history, with the $57.50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 48,142 contracts, representing approximately 4.8 million underlying shares or approximately 70.8% of AAL's average daily trading volume over the past month, of 6.8 million shares. Particularly high volume was seen for the $30 strike call option expiring February 21, 2020, with 20,153 contracts trading so far today, representing approximately 2.0 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $30 strike highlighted in orange: And Intuit Inc (Symbol: INTU) options are showing a volume of 8,089 contracts thus far today. That number of contracts represents approximately 808,900 underlying shares, working out to a sizeable 65.7% of INTU's average daily trading volume over the past month, of 1.2 million shares. Especially high volume was seen for the $230 strike call option expiring January 17, 2020, with 1,890 contracts trading so far today, representing approximately 189,000 underlying shares of INTU. Below is a chart showing INTU's trailing twelve month trading history, with the $230 strike highlighted in orange: For the various different available expirations for VZ options, AAL options, or INTU 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.
Particularly high volume was seen for the $30 strike call option expiring February 21, 2020, with 20,153 contracts trading so far today, representing approximately 2.0 million underlying shares of AAL. Below is a chart showing VZ's trailing twelve month trading history, with the $57.50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 48,142 contracts, representing approximately 4.8 million underlying shares or approximately 70.8% of AAL's average daily trading volume over the past month, of 6.8 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $30 strike highlighted in orange: And Intuit Inc (Symbol: INTU) options are showing a volume of 8,089 contracts thus far today.
Below is a chart showing VZ's trailing twelve month trading history, with the $57.50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 48,142 contracts, representing approximately 4.8 million underlying shares or approximately 70.8% of AAL's average daily trading volume over the past month, of 6.8 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $30 strike highlighted in orange: And Intuit Inc (Symbol: INTU) options are showing a volume of 8,089 contracts thus far today. Particularly high volume was seen for the $30 strike call option expiring February 21, 2020, with 20,153 contracts trading so far today, representing approximately 2.0 million underlying shares of AAL.
Below is a chart showing VZ's trailing twelve month trading history, with the $57.50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 48,142 contracts, representing approximately 4.8 million underlying shares or approximately 70.8% of AAL's average daily trading volume over the past month, of 6.8 million shares. Particularly high volume was seen for the $30 strike call option expiring February 21, 2020, with 20,153 contracts trading so far today, representing approximately 2.0 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $30 strike highlighted in orange: And Intuit Inc (Symbol: INTU) options are showing a volume of 8,089 contracts thus far today.
Below is a chart showing VZ's trailing twelve month trading history, with the $57.50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) saw options trading volume of 48,142 contracts, representing approximately 4.8 million underlying shares or approximately 70.8% of AAL's average daily trading volume over the past month, of 6.8 million shares. Below is a chart showing INTU's trailing twelve month trading history, with the $230 strike highlighted in orange: For the various different available expirations for VZ options, AAL options, or INTU options, visit StockOptionsChannel.com. Particularly high volume was seen for the $30 strike call option expiring February 21, 2020, with 20,153 contracts trading so far today, representing approximately 2.0 million underlying shares of AAL.
6273.0
2020-01-08 00:00:00 UTC
Is Delta Airlines Too Optimistic About Its Revenue Growth Prospects In 2020?
AAL
https://www.nasdaq.com/articles/is-delta-airlines-too-optimistic-about-its-revenue-growth-prospects-in-2020-2020-01-08
nan
nan
Delta Airlines (NYSE: DAL) recently released its revenue guidance for 2020, with the company expecting its top line to expand by 4-6% despite growing fears of a macroeconomic slowdown in the U.S. Trefis highlights the key drivers of Delta Airlines’ Revenues in an interactive dashboard along with our forecast for 2019 and 2020, and we believe that revenue growth for the year is likely to aroune 3.4% – below the company’s guidance range. Our estimate for the company’s revenue growth rate is based on our detailed forecast for each of Delta’s revenue streams, parts of which are highlighted below. A Quick Look at Delta Airlines’ Revenues Delta Airlines’ reported $43.5 billion in Total Revenues for full-year 2018. It includes three revenue streams: Passenger Revenue: $40 billion in FY2018 (90% of Total Revenues). It represents income from the sale of air tickets and other ancillary offerings for the company’s mainline and affiliate carriers. If a ticket is sold and travel is yet to happen, the company recognizes income from such tickets as air traffic liability. Due to the complex structure of ticket pricing, cancellation and rescheduling, a certain portion of the liability is recognized as passenger revenues based on recognized historical patterns. Cargo Revenue: $1 billion in FY2018 (2% of Total Revenues). It represents income freight and mail services. Other Revenue: $4 billion in FY2018 (8% of Total Revenues). It comprises of the sale of loyalty points to credit card companies. Delta Airlines’ Total Revenue has grown by 13% from $39.5 billion in 2016 to $44.4 billion in 2018, and is expected to reach $48.4 billion in 2020 In 2019, the company’s Passenger division is expected to report revenue growth of around 5.7%, driven by growing passenger traffic. Passenger Revenues include air ticket sales, income from loyalty rewards, and other ancillary services such as baggage fees. Air ticket sales are driven by available seat miles, passenger yield, and aircraft occupancy levels. In 2019, the company’s Cargo division observed sharp declines, primarily due to a weak demand for air cargo services. We expect Other Revenues comprise of loyalty points sales to credit card companies, income from aircraft maintenance and staffing services, and other miscellaneous services such as lounge accessibility. Other Revenues have remained relatively stable over the last few years and we expect it to continue growing with the Passenger revenues. As we detail in our interactive dashboard, despite steady improvements to each of these key metrics, Delta’s Revenues will be around $48.4 billion for full-year 2020 What’s behind Trefis? See How it’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams All Trefis Data Like our charts? Explore example interactive dashboards and create your own The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Passenger Revenues include air ticket sales, income from loyalty rewards, and other ancillary services such as baggage fees. Air ticket sales are driven by available seat miles, passenger yield, and aircraft occupancy levels. As we detail in our interactive dashboard, despite steady improvements to each of these key metrics, Delta’s Revenues will be around $48.4 billion for full-year 2020 What’s behind Trefis?
A Quick Look at Delta Airlines’ Revenues Delta Airlines’ reported $43.5 billion in Total Revenues for full-year 2018. Delta Airlines’ Total Revenue has grown by 13% from $39.5 billion in 2016 to $44.4 billion in 2018, and is expected to reach $48.4 billion in 2020 In 2019, the company’s Passenger division is expected to report revenue growth of around 5.7%, driven by growing passenger traffic. We expect Other Revenues comprise of loyalty points sales to credit card companies, income from aircraft maintenance and staffing services, and other miscellaneous services such as lounge accessibility.
Delta Airlines (NYSE: DAL) recently released its revenue guidance for 2020, with the company expecting its top line to expand by 4-6% despite growing fears of a macroeconomic slowdown in the U.S. Trefis highlights the key drivers of Delta Airlines’ Revenues in an interactive dashboard along with our forecast for 2019 and 2020, and we believe that revenue growth for the year is likely to aroune 3.4% – below the company’s guidance range. It includes three revenue streams: Passenger Revenue: $40 billion in FY2018 (90% of Total Revenues). Delta Airlines’ Total Revenue has grown by 13% from $39.5 billion in 2016 to $44.4 billion in 2018, and is expected to reach $48.4 billion in 2020 In 2019, the company’s Passenger division is expected to report revenue growth of around 5.7%, driven by growing passenger traffic.
It includes three revenue streams: Passenger Revenue: $40 billion in FY2018 (90% of Total Revenues). Delta Airlines’ Total Revenue has grown by 13% from $39.5 billion in 2016 to $44.4 billion in 2018, and is expected to reach $48.4 billion in 2020 In 2019, the company’s Passenger division is expected to report revenue growth of around 5.7%, driven by growing passenger traffic. Passenger Revenues include air ticket sales, income from loyalty rewards, and other ancillary services such as baggage fees.
6274.0
2020-01-07 00:00:00 UTC
Is Boeing Stock a Buy?
AAL
https://www.nasdaq.com/articles/is-boeing-stock-a-buy-2020-01-07
nan
nan
Boeing (NYSE: BA) found itself in the spotlight for all the wrong reasons in 2019. Boeing 737 MAX jets were grounded the same day Ethiopian Airlines Flight 302, a Boeing 737 MAX 8 aircraft, crashed and killed all 157 people aboard. Boeing is often regarded as one of the most respected and advanced American industrial and defense stocks, making up the largest percentage of any company in the price-weighted Dow Jones Industrial Average index. Boeing enters the new decade amid scandal and underperformance in 2019. Is it possible for long-term investors to look past Boeing's many current headwinds amid the recent sell-off, or is Boeing stock too opaque to be considered a buy? BA data by YCharts 737 history and fallout Looking at the events from the below table, it's no surprise why Boeing stock underperformed the S&P 500 in 2019. Major airlines such as Southwest Airlines (NYSE: LUV), American Airlines (NASDAQ: AAL), and United Airlines (NASDAQ: UAL) are all struggling to adjust their fleets and flights to the MAX delays. DATE INCIDENT Jan. 17, 1967 The first Boeing 737 is introduced. January 2006 Boeing reaches a milestone of 5,000 total 737 planes assembled. May 22, 2017 Boeing 737 MAX entered into service, as Boeing's newest line of single-aisle airplanes. Mar. 2018 Boeing reaches a milestone of 10,000 total 737 planes assembled. Oct. 29, 2018 Lion Air Flight 710 crashes and kills all on board. Mar. 10, 2019 Ethiopian Airlines Flight 302 crashes and kills all on board. Mar. 10, 2019 Boeing 737 MAX planes are grounded. Deliveries were 34 for Southwest Airlines, 24 for American Airlines, and 14 for United Airlines at the time. Oct. 9, 2019 American Airlines pushes back return to service date of the MAX to Jan. 16, 2020. Oct. 11, 2019 United pushes MAX flights from Dec. 19, 2019 to Jan. 6, 2020. Dec. 12, 2019 American Airlines delays commercial service of Boeing 737 MAX fleet until Apr. 7, 2020. Dec. 16, 2019 Boeing suspends 737 MAX production starting in January 2020 as a result of uncertain FAA and global regulatory authorities' reservice approval. Production had reached a total of 400 MAX planes, which sit in storage as Boeing waits for approval to sell the planes. Dec. 17, 2019 Southwest delays scheduling MAX flights until mid-April 2020. Dec. 20, 2019 United Airlines pushes MAX's return to Jun. 4, 2020. Dec. 23, 2019 Boeing fires CEO Dennis Muilenburg, who is replaced by the former chairman, David Calhoun. For Boeing, the late December news to suspend production and appoint a new CEO was the nail in the coffin for a disastrous 2019. Even though Boeing has severed some goodwill, not to mention some of its reputation, there is little airlines can do about it. The power of a backlog Both Boeing and its rival, Airbus (OTC: EADSY), have massive backlogs in plane production. Boeing has a total commercial airplane backlog of 5,488 planes, 4,406 of which are 737 aircraft. As of Sept. 30, 2019, Boeing produced 32 class 737s per month and plans to up its production to 57 class 737s by late 2020. "As of Oct. 31, 2019, Airbus' backlog was 7,471 jets," according to Forecast International, noting that "88% were A220 and A320 ceo/neo Family narrowbodies." Since Boeing and Airbus have essentially a duopoly on the commercial jet market, customers have little alternative but to simply wait in line for planes to be produced, or in the case of the Boeing MAX, for regulatory bodies to reinstate the jet into service. High demand and customers waiting with cash in hand has historically been one of the main reasons why Boeing stock is attractive. Over the past five years, Boeing has typically traded at a P/E ratio of 15-25, garnering a slightly premium valuation to the market average given its legacy and robust portfolio. Although Boeing delivered hundreds fewer aircraft in 2019 than in 2018, the company was able to grow revenue and operating margins for its defense, space, and security division, as well as its global services division, citing a backlog of $62 billion and $21 billion, respectively, as of the third quarter of 2019. Image source: Getty Images. Separating short term from long term There's no denying that Boeing stock is a tough pill to swallow in the near term, especially given fierce competition from Airbus. The 737 MAX has already cost Boeing billions of dollars and will continue to severely affect the company's profitability until the planes can be sold and flown. That said, Boeing is riding the tailwinds of a global rise in air travel, particularly out of developing countries in Southeast Asia and China. As hard as it is to advocate buying Boeing stock now, it may be even harder to argue how the stock couldn't do well over the long term. If Boeing can get 737 MAX planes out of parking lots and into the hands of customers, the stock would look attractive at the current price. Based on 2018 earnings of $17.85, the stock would have a P/E ratio of 18.5, give or take. Pair that with a dividend yield of 2.5%, and Boeing would find itself hovering around both value stock and dividend stock territory. BA EPS Diluted (TTM) data by YCharts A strategy to consider In my opinion, the classic Foolish principle of buying in thirds applies well to Boeing at this time. The first step would be to determine what a full position of the company would look like in your portfolio, and then consider buying a third now, another third when domestic and international regulations approve the 737 MAX back into service, and then the final third whenever you're ready. It's a good strategy for when a stock comes down in price but you're hesitant to jump in all at once. 10 stocks we like better than Boeing When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Boeing wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Daniel Foelber owns shares of Boeing and Southwest Airlines. The Motley Fool owns shares of and recommends 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.
Major airlines such as Southwest Airlines (NYSE: LUV), American Airlines (NASDAQ: AAL), and United Airlines (NASDAQ: UAL) are all struggling to adjust their fleets and flights to the MAX delays. Dec. 16, 2019 Boeing suspends 737 MAX production starting in January 2020 as a result of uncertain FAA and global regulatory authorities' reservice approval. Over the past five years, Boeing has typically traded at a P/E ratio of 15-25, garnering a slightly premium valuation to the market average given its legacy and robust portfolio.
Major airlines such as Southwest Airlines (NYSE: LUV), American Airlines (NASDAQ: AAL), and United Airlines (NASDAQ: UAL) are all struggling to adjust their fleets and flights to the MAX delays. Boeing 737 MAX jets were grounded the same day Ethiopian Airlines Flight 302, a Boeing 737 MAX 8 aircraft, crashed and killed all 157 people aboard. Dec. 12, 2019 American Airlines delays commercial service of Boeing 737 MAX fleet until Apr.
Major airlines such as Southwest Airlines (NYSE: LUV), American Airlines (NASDAQ: AAL), and United Airlines (NASDAQ: UAL) are all struggling to adjust their fleets and flights to the MAX delays. Boeing 737 MAX jets were grounded the same day Ethiopian Airlines Flight 302, a Boeing 737 MAX 8 aircraft, crashed and killed all 157 people aboard. Since Boeing and Airbus have essentially a duopoly on the commercial jet market, customers have little alternative but to simply wait in line for planes to be produced, or in the case of the Boeing MAX, for regulatory bodies to reinstate the jet into service.
Major airlines such as Southwest Airlines (NYSE: LUV), American Airlines (NASDAQ: AAL), and United Airlines (NASDAQ: UAL) are all struggling to adjust their fleets and flights to the MAX delays. Boeing has a total commercial airplane backlog of 5,488 planes, 4,406 of which are 737 aircraft. That's right -- they think these 10 stocks are even better buys.
6275.0
2020-01-06 00:00:00 UTC
Why Shares of American Airlines Fell 10% in 2019
AAL
https://www.nasdaq.com/articles/why-shares-of-american-airlines-fell-10-in-2019-2020-01-07
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What happened Shares of American Airlines Group (NASDAQ: AAL) lost 10.7% in 2019, according to data from S&P Global Market Intelligence, a year in which the overall market and airline stocks on average gained more than 20%. American is widely seen as the weakest of the major U.S. carriers at present, and even though the industry is much healthier than it has been in years past, the airline's balance sheet and other issues, including its exposure to Boeing's ongoing troubles, were front of mind for investors through most of the year. Airline 2019 stock performance data by YCharts So what American Airlines, the last of the major airlines to file for bankruptcy protection earlier in the decade and the last to participate in an industrywide round of consolidation that followed, has been playing catch-up for a number of years. And it faced a number of significant headwinds in 2019. The airline during the year faced labor unrest and was among the carriers most affected by the grounding of Boeing's 737 MAX. American Airlines hopes to get off the ground in 2020. Image source: American Airlines. It also has the weakest balance sheets among major airlines, with more than $25 billion in long-term debt. That debt burden came into focus midyear as the yield on a 10-year Treasury bond fell below the two-year rate, creating a so-called inverted yield curve that many investors believe is a signal that a recession is imminent. Airlines historically have struggled during a downturn, and American, because of its debt and other issues, seemed particularly poorly suited for a slowdown. Now what American clearly trails rivals including Delta Air Lines and United Airlines Holdings in terms of profitability and strength of balance sheet, and investors were likely correct to focus their attention away from the airline. But the fears about a recession have subsided, and even if they emerge again the days of a major airline collapsing during an economic downturn appear to be over. American might be the weakest link for now, but it is far from troubled. The company and its management team are taking much-needed steps to catch up. American is in the early days of revamping its route network and pricing strategies to improve profitability. And the company after a period of fleet renewal expects capital expenditures to come down in the years to come, freeing up cash to attack the debt load. It won't happen overnight, but American in time can fly through the turbulence it is facing. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Lou Whiteman owns shares of Delta Air Lines. The Motley Fool owns shares of and recommends 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.
What happened Shares of American Airlines Group (NASDAQ: AAL) lost 10.7% in 2019, according to data from S&P Global Market Intelligence, a year in which the overall market and airline stocks on average gained more than 20%. Airlines historically have struggled during a downturn, and American, because of its debt and other issues, seemed particularly poorly suited for a slowdown. And the company after a period of fleet renewal expects capital expenditures to come down in the years to come, freeing up cash to attack the debt load.
What happened Shares of American Airlines Group (NASDAQ: AAL) lost 10.7% in 2019, according to data from S&P Global Market Intelligence, a year in which the overall market and airline stocks on average gained more than 20%. It also has the weakest balance sheets among major airlines, with more than $25 billion in long-term debt. The Motley Fool owns shares of and recommends Delta Air Lines.
What happened Shares of American Airlines Group (NASDAQ: AAL) lost 10.7% in 2019, according to data from S&P Global Market Intelligence, a year in which the overall market and airline stocks on average gained more than 20%. Airline 2019 stock performance data by YCharts So what American Airlines, the last of the major airlines to file for bankruptcy protection earlier in the decade and the last to participate in an industrywide round of consolidation that followed, has been playing catch-up for a number of years. Now what American clearly trails rivals including Delta Air Lines and United Airlines Holdings in terms of profitability and strength of balance sheet, and investors were likely correct to focus their attention away from the airline.
What happened Shares of American Airlines Group (NASDAQ: AAL) lost 10.7% in 2019, according to data from S&P Global Market Intelligence, a year in which the overall market and airline stocks on average gained more than 20%. American is widely seen as the weakest of the major U.S. carriers at present, and even though the industry is much healthier than it has been in years past, the airline's balance sheet and other issues, including its exposure to Boeing's ongoing troubles, were front of mind for investors through most of the year. The airline during the year faced labor unrest and was among the carriers most affected by the grounding of Boeing's 737 MAX.
6276.0
2020-01-06 00:00:00 UTC
The Math Shows RPV Can Go To $76
AAL
https://www.nasdaq.com/articles/the-math-shows-rpv-can-go-to-%2476-2020-01-06
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the Invesco S&P 500— Pure Value ETF (Symbol: RPV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $76.04 per unit. With RPV trading at a recent price near $68.66 per unit, that means that analysts see 10.75% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of RPV's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), Mosaic Co (Symbol: MOS), and Diamondback Energy, Inc. (Symbol: FANG). Although AAL has traded at a recent price of $27.64/share, the average analyst target is 40.17% higher at $38.75/share. Similarly, MOS has 35.24% upside from the recent share price of $20.76 if the average analyst target price of $28.08/share is reached, and analysts on average are expecting FANG to reach a target price of $126.20/share, which is 33.67% above the recent price of $94.41. Below is a twelve month price history chart comparing the stock performance of AAL, MOS, and FANG: Below is a summary table of the current analyst target prices discussed above: NAME SYMBOL RECENT PRICE AVG. ANALYST 12-MO. TARGET % UPSIDE TO TARGET Invesco S&P 500— Pure Value ETF RPV $68.66 $76.04 10.75% American Airlines Group Inc AAL $27.64 $38.75 40.17% Mosaic Co MOS $20.76 $28.08 35.24% Diamondback Energy, Inc. FANG $94.41 $126.20 33.67% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research. 10 ETFs With Most Upside To Analyst Targets » The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Although AAL has traded at a recent price of $27.64/share, the average analyst target is 40.17% higher at $38.75/share. Invesco S&P 500— Pure Value ETF RPV $68.66 $76.04 10.75% American Airlines Group Inc AAL $27.64 $38.75 40.17% Mosaic Co MOS $20.76 $28.08 35.24% Diamondback Energy, Inc. FANG $94.41 $126.20 33.67% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of RPV's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), Mosaic Co (Symbol: MOS), and Diamondback Energy, Inc. (Symbol: FANG).
Three of RPV's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), Mosaic Co (Symbol: MOS), and Diamondback Energy, Inc. (Symbol: FANG). Invesco S&P 500— Pure Value ETF RPV $68.66 $76.04 10.75% American Airlines Group Inc AAL $27.64 $38.75 40.17% Mosaic Co MOS $20.76 $28.08 35.24% Diamondback Energy, Inc. FANG $94.41 $126.20 33.67% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Although AAL has traded at a recent price of $27.64/share, the average analyst target is 40.17% higher at $38.75/share.
Three of RPV's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), Mosaic Co (Symbol: MOS), and Diamondback Energy, Inc. (Symbol: FANG). Although AAL has traded at a recent price of $27.64/share, the average analyst target is 40.17% higher at $38.75/share. Below is a twelve month price history chart comparing the stock performance of AAL, MOS, and FANG: Below is a summary table of the current analyst target prices discussed above:
Invesco S&P 500— Pure Value ETF RPV $68.66 $76.04 10.75% American Airlines Group Inc AAL $27.64 $38.75 40.17% Mosaic Co MOS $20.76 $28.08 35.24% Diamondback Energy, Inc. FANG $94.41 $126.20 33.67% Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of RPV's underlying holdings with notable upside to their analyst target prices are American Airlines Group Inc (Symbol: AAL), Mosaic Co (Symbol: MOS), and Diamondback Energy, Inc. (Symbol: FANG). Although AAL has traded at a recent price of $27.64/share, the average analyst target is 40.17% higher at $38.75/share.
6277.0
2020-01-05 00:00:00 UTC
Weekly Market Preview: Stocks Fall Amid Middle East Tensions; Time To Buy?
AAL
https://www.nasdaq.com/articles/weekly-market-preview%3A-stocks-fall-amid-middle-east-tensions-time-to-buy-2020-01-05
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L ast week, I asked “how high will the markets rise in 2020, assuming the markets rise at all?” After a record-breaking 2019, investors are, understandably, cautious that the end of this decade-long bull run we have enjoyed is imminent. The manner in which stocks declined on Friday will only accentuate those fears. But does it answer the question: is the bull run finally over? The holiday-shortened week didn’t end the way investors hoped. Stocks closed lower on Friday, with the Dow Jones Industrial Average falling 233.92 points, or 0.81% to close at 28,634.88. As it stands, this is the Dow’s worst-performing trading session in four weeks. The S&P 500 index declined 0.71% to end the day at 3,234.85, while the tech-heavy Nasdaq Composite, which suffered its worst performance since Dec. 2, closed 0.79% lower at 9,020.77. All three major averages were pressured by rising Middle East tensions and weak U.S. factory data — though all three major benchmarks finished Friday’s session off their lows. Investors looked for safety after the price of oil surged 3% amid reports late Thursday night of the assassination of top Iranian military leader Gen. Qasem Soleimani via airstrike, which the Pentagon said was done to supposedly prevent future Iranian attacks. The question now is, how will the markets fare in the coming week, particularly amid fears of further escalation between the two countries? The likelihood of a targeted retaliation by Iran will be an overhang and present a level of uncertainty for investors. This is because Ayatollah Ali Khamenei, Iran’s supreme leader, who has declared three days of mourning for Soleimani’s death, has also promised that a “hard revenge awaits criminals,” responsible for the attack. In the meantime, the Pentagon said Friday afternoon it was dispatching more than 3,000 additional troops to the Middle East, while the U.S. Embassy in Iraq advised U.S. citizens in the country to leave immediately. While the markets can’t know when Iran will retaliate, it’s hard to imagine that investors will have any appetite for risk until there is more clarity or some assurance of de-escalation. This is especially since this scenario is certain to put upward pressure on oil prices. Accordingly, in the coming week, we are likely to see a move towards safe havens, including gold and U.S. Treasuries and a decline in risky assets. Some of this was evidenced by the fact that Apple (AAPL) shares fell abut 1% Friday — a day after hitting $300 per share for the first time. Airline stocks were also under pressure amid the threat of higher oil prices. American Airlines (AAL) declined about 5%, while United Airlines (UAL) and Delta Airlines (DAL) fell 2.05% and 1.66%, respectively. Stocks were also pressured by Friday’s U.S. manufacturing data, which came in worse-than-expected, which suggests risks to economic growth. December’s U.S. manufacturing purchasing managers index fell to 47.2%, according to the Institute for Supply Management, falling short of the 48.8% reading analysts were looking for. December’s number is a decline from a reading of 48.1% in November and its lowered reading in almost a decade for the closely-watched gauge of economic growth. To be sure, the shortfall does not imply imminent danger. But when factored with the tension that is now present in the Middle East, combined with the effect of rising gas prices, it creates an environment of deep uncertainty that was not expected to start the new year, particularly as it seems the market was just getting its act together as it relates to the U.S.-China trade war. As it stands, investors, particularly those who have felt uneasy about stocks sitting all-time highs, should expects some volatility in the in the near term and possibly in the weeks and months ahead. With stocks closing out 2019 with such momentum, caution should be the recommended approach. And with the Q4 earnings season right around the corner, this puts CEOs in a position to justify what some analysts see as “lofty valuations” by guiding 2020 with even with greater confidence than in 2019. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
American Airlines (AAL) declined about 5%, while United Airlines (UAL) and Delta Airlines (DAL) fell 2.05% and 1.66%, respectively. This is because Ayatollah Ali Khamenei, Iran’s supreme leader, who has declared three days of mourning for Soleimani’s death, has also promised that a “hard revenge awaits criminals,” responsible for the attack. In the meantime, the Pentagon said Friday afternoon it was dispatching more than 3,000 additional troops to the Middle East, while the U.S. Embassy in Iraq advised U.S. citizens in the country to leave immediately.
American Airlines (AAL) declined about 5%, while United Airlines (UAL) and Delta Airlines (DAL) fell 2.05% and 1.66%, respectively. Stocks closed lower on Friday, with the Dow Jones Industrial Average falling 233.92 points, or 0.81% to close at 28,634.88. All three major averages were pressured by rising Middle East tensions and weak U.S. factory data — though all three major benchmarks finished Friday’s session off their lows.
American Airlines (AAL) declined about 5%, while United Airlines (UAL) and Delta Airlines (DAL) fell 2.05% and 1.66%, respectively. ast week, I asked “how high will the markets rise in 2020, assuming the markets rise at all?” After a record-breaking 2019, investors are, understandably, cautious that the end of this decade-long bull run we have enjoyed is imminent. Stocks closed lower on Friday, with the Dow Jones Industrial Average falling 233.92 points, or 0.81% to close at 28,634.88.
American Airlines (AAL) declined about 5%, while United Airlines (UAL) and Delta Airlines (DAL) fell 2.05% and 1.66%, respectively. Stocks closed lower on Friday, with the Dow Jones Industrial Average falling 233.92 points, or 0.81% to close at 28,634.88. The question now is, how will the markets fare in the coming week, particularly amid fears of further escalation between the two countries?
6278.0
2020-01-03 00:00:00 UTC
Friday Sector Laggards: Auto Parts, Airlines
AAL
https://www.nasdaq.com/articles/friday-sector-laggards%3A-auto-parts-airlines-2020-01-03
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In trading on Friday, auto parts shares were relative laggards, down on the day by about 1.9%. Helping drag down the group were shares of Veoneer (VNE), down about 11% and shares of Cooper-Standard Holdings (CPS) off about 6.8% on the day. Also lagging the market Friday are airlines shares, down on the day by about 1.7% as a group, led down by Copa Holdings (CPA), trading lower by about 4.3% and American Airlines Group (AAL), trading lower by about 4.2%. VIDEO: Friday Sector Laggards: Auto Parts, Airlines The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Also lagging the market Friday are airlines shares, down on the day by about 1.7% as a group, led down by Copa Holdings (CPA), trading lower by about 4.3% and American Airlines Group (AAL), trading lower by about 4.2%. In trading on Friday, auto parts shares were relative laggards, down on the day by about 1.9%. VIDEO: Friday Sector Laggards: Auto Parts, Airlines The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Also lagging the market Friday are airlines shares, down on the day by about 1.7% as a group, led down by Copa Holdings (CPA), trading lower by about 4.3% and American Airlines Group (AAL), trading lower by about 4.2%. In trading on Friday, auto parts shares were relative laggards, down on the day by about 1.9%. VIDEO: Friday Sector Laggards: Auto Parts, Airlines The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Also lagging the market Friday are airlines shares, down on the day by about 1.7% as a group, led down by Copa Holdings (CPA), trading lower by about 4.3% and American Airlines Group (AAL), trading lower by about 4.2%. Helping drag down the group were shares of Veoneer (VNE), down about 11% and shares of Cooper-Standard Holdings (CPS) off about 6.8% on the day. VIDEO: Friday Sector Laggards: Auto Parts, Airlines The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Also lagging the market Friday are airlines shares, down on the day by about 1.7% as a group, led down by Copa Holdings (CPA), trading lower by about 4.3% and American Airlines Group (AAL), trading lower by about 4.2%. In trading on Friday, auto parts shares were relative laggards, down on the day by about 1.9%. Helping drag down the group were shares of Veoneer (VNE), down about 11% and shares of Cooper-Standard Holdings (CPS) off about 6.8% on the day.
6279.0
2020-01-03 00:00:00 UTC
Stock Market News: Tesla Delivers; American Loses Altitude
AAL
https://www.nasdaq.com/articles/stock-market-news%3A-tesla-delivers-american-loses-altitude-2020-01-03
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Investors weren't able to enjoy a second day of gains to start 2020, as markets fell following unexpected news on the geopolitical front. A U.S. attack that killed a key Iranian military leader raised new concerns about the state of affairs internationally, and repercussions rippled throughout many different financial markets. As of 11 a.m. EST, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 223 points to 28,645. The S&P 500 (SNPINDEX: ^GSPC) lost 21 points to sink to 3,237, while the NASDAQ Composite (NASDAQINDEX: ^IXIC) fell 63 points to 9,029. Among individual stocks, earnings season is still a couple weeks away, but some good news from Tesla (NASDAQ: TSLA) sent shares of the automaker higher. Meanwhile, American Airlines Group (NASDAQ: AAL) saw its stock price descend amid worries about the ramifications of the U.S. attack on Iran. Tesla hits the target Shares of Tesla rose almost 5% after the electric vehicle specialist announced its delivery figures for the fourth quarter of 2019. The numbers were above what most of those following Tesla had anticipated, helping the automaker hit its annual targets. Image source: Tesla. Tesla delivered a total of 112,000 vehicles during the fourth quarter: 92,550 of those cars were Model 3s, while the other 19,450 were higher-price Model S and X vehicles. Production came in just shy of 104,900 cars for the quarter. With these results, Tesla celebrated record annual deliveries of 367,500 vehicles in 2019. That figure ended up toward the lower end of the company's projections for 360,000 to 400,000 cars. Yet shareholders were encouraged that Tesla didn't end up missing the target entirely, as some had feared. Tesla has high hopes that its newly launched facility in Shanghai will help it sustain even stronger production and delivery volume into 2020. With the stock at all-time highs, investors are counting on Tesla's growth curve continuing to rise for the foreseeable future. American deals with oil threats Meanwhile, shares of American Airlines Group were down almost 5%. Many of its peers also suffered declines as the threat of disruptions to global oil supplies pushed crude prices higher by more than $2 per barrel to around $63.50. Fuel makes up a substantial portion of the overall costs that airlines like American have to cover, and fuel costs can be among the most volatile of an airline's regular expenses. For the most part, companies can predict the behavior of other major cost centers like employee compensation and equipment expenses, but energy markets can rise sharply over very short periods of time. Costs have been a rising concern for American, and fuel is only part of the issue. Increases in nonfuel unit costs have climbed over the past five years at a rate that's roughly double what most airlines try to achieve, and the grounding of the 737 MAX has added some extra short-term pressure on margins. Airlines have been extremely profitable in recent years, but many had anticipated that low energy prices would eventually give way to a more typical pricing environment. If the current conflict with Iran escalates, that might prove to be the catalyst that makes fuel more expensive for American -- eating further into its profit margin. 10 stocks we like better than Tesla When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. 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.
Meanwhile, American Airlines Group (NASDAQ: AAL) saw its stock price descend amid worries about the ramifications of the U.S. attack on Iran. A U.S. attack that killed a key Iranian military leader raised new concerns about the state of affairs internationally, and repercussions rippled throughout many different financial markets. For the most part, companies can predict the behavior of other major cost centers like employee compensation and equipment expenses, but energy markets can rise sharply over very short periods of time.
Meanwhile, American Airlines Group (NASDAQ: AAL) saw its stock price descend amid worries about the ramifications of the U.S. attack on Iran. The numbers were above what most of those following Tesla had anticipated, helping the automaker hit its annual targets. American deals with oil threats Meanwhile, shares of American Airlines Group were down almost 5%.
Meanwhile, American Airlines Group (NASDAQ: AAL) saw its stock price descend amid worries about the ramifications of the U.S. attack on Iran. Tesla hits the target Shares of Tesla rose almost 5% after the electric vehicle specialist announced its delivery figures for the fourth quarter of 2019. Fuel makes up a substantial portion of the overall costs that airlines like American have to cover, and fuel costs can be among the most volatile of an airline's regular expenses.
Meanwhile, American Airlines Group (NASDAQ: AAL) saw its stock price descend amid worries about the ramifications of the U.S. attack on Iran. Tesla hits the target Shares of Tesla rose almost 5% after the electric vehicle specialist announced its delivery figures for the fourth quarter of 2019. Fuel makes up a substantial portion of the overall costs that airlines like American have to cover, and fuel costs can be among the most volatile of an airline's regular expenses.
6280.0
2019-12-31 00:00:00 UTC
JetBlue Shares Are Cheap. Is Timing Still Bad?
AAL
https://www.nasdaq.com/articles/jetblue-shares-are-cheap.-is-timing-still-bad-2019-12-31
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JetBlue (NASDAQ: JBLU) is a low-cost airline that serves passengers in North and South America with more than 1,000 daily flights on average. The airline stock has been range-bound for the past year and a half, moving between $19 and $15.50. Investors are bullish about the company's optimistic profit forecasts for next year, and initiatives to improve revenue and earnings with route reallocation, cost restructuring, load optimization, and purchases of more efficient new planes. The company also has an advantage over competitors that are dealing with grounded Boeing 737 MAX airplanes while regulators investigate the safety of those planes. JetBlue's fleet is almost entirely composed of Airbus (OTC: EADSY) airplanes, so it has an operational edge in the short term. JetBlue looks mediocre in key operational metrics JetBlue's passenger load factor, a measure of the extent to which flights are filled, was 84.7% through Q3 2019, which compares poorly to peers. Delta (NYSE: DAL) is among the industry leaders on this metric, and it is 180 basis points higher. The disparity in load factor and average ticket pricing also lead JetBlue to lower revenue per available seat mile (RASM), an important metric tracked by airlines to measure how efficiently they generate revenue with their services. JetBlue's $0.1222 RASM was 28% lower than Delta's. Image Source: JetBlue JetBlue has delivered a 10.3% operating margin despite the above shortcomings, 350 basis points above the airline industry average. This is comparable to United's (NASDAQ: UAL) operating margin and superior to American Airlines', but inferior to Delta's, Spirit's, and Southwest's. JetBlue's 9.57% return on invested capital (ROIC) stacks up in a very similar way. This pattern suggests that JetBlue does a fair job of utilizing its financial resources to deliver returns, but there are more efficient peers in the market. JetBlue's valuation metrics tell a mixed story JetBlue's forward price-to-earnings ratio is 8.2, well below the airline industry average of 14.4. The company's 5% to 6% top-line forecast growth rate and 21% earnings growth forecast results in a very attractive PEG ratio well below 1.0. JetBlue has among the highest analyst consensus growth forecasts among airlines. The stock's 5.07 EV/EBITDA compares favorably to the industry average of 6.65, and it is lower than Delta, Southwest, United, American Airlines, Allegiant, Spirit, and Alaska Air. These would seem to imply that the stock is cheap, but other metrics complicate this. JetBlue's 16.1 price-to-free-cash-flow is high among airlines, which average 11.8 on this metric, which could indicate relatively low-quality profits, as the company has struggled to generate cash flows in line with accounting profits. Investors should monitor this to determine if cash flows can approximate earnings in the long term. Further, JetBlue is one of the few airline stocks that does not pay a dividend. That means that investors must rely entirely on price appreciation to realize returns, whereas other airlines create some income to supplement gains or offset losses. However, the company has delivered three straight years of meaningful share repurchases, driving a more than 6% buyback yield. JetBlue's stock should outperform if the company can match the current growth outlook and succeed on the revenue and profitability initiatives that have been communicated by management. Improving cash flows and sustained growth would mean the valuation ratios are very inexpensive compared to its peers. However, any failure to meet these high expectations will almost certainly lead the stock lower. Airlines are also cyclical stocks and heavily exposed to oil prices, so a recession or spike in oil prices are two scenarios completely beyond the company's control that would see shares slump. There is clearly a narrative here that can appeal to some value investors. But the risks to this are clear, and there are other airline stocks with better operational metrics that investors can own at attractive valuations. 10 stocks we like better than JetBlue Airways When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and JetBlue Airways wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Ryan Patrick has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends Alaska Air Group 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.
Investors are bullish about the company's optimistic profit forecasts for next year, and initiatives to improve revenue and earnings with route reallocation, cost restructuring, load optimization, and purchases of more efficient new planes. The stock's 5.07 EV/EBITDA compares favorably to the industry average of 6.65, and it is lower than Delta, Southwest, United, American Airlines, Allegiant, Spirit, and Alaska Air. That means that investors must rely entirely on price appreciation to realize returns, whereas other airlines create some income to supplement gains or offset losses.
JetBlue looks mediocre in key operational metrics JetBlue's passenger load factor, a measure of the extent to which flights are filled, was 84.7% through Q3 2019, which compares poorly to peers. The stock's 5.07 EV/EBITDA compares favorably to the industry average of 6.65, and it is lower than Delta, Southwest, United, American Airlines, Allegiant, Spirit, and Alaska Air. The Motley Fool owns shares of and recommends Delta Air Lines, Southwest Airlines, and Spirit Airlines.
Image Source: JetBlue JetBlue has delivered a 10.3% operating margin despite the above shortcomings, 350 basis points above the airline industry average. JetBlue's valuation metrics tell a mixed story JetBlue's forward price-to-earnings ratio is 8.2, well below the airline industry average of 14.4. JetBlue's 16.1 price-to-free-cash-flow is high among airlines, which average 11.8 on this metric, which could indicate relatively low-quality profits, as the company has struggled to generate cash flows in line with accounting profits.
JetBlue's 16.1 price-to-free-cash-flow is high among airlines, which average 11.8 on this metric, which could indicate relatively low-quality profits, as the company has struggled to generate cash flows in line with accounting profits. But the risks to this are clear, and there are other airline stocks with better operational metrics that investors can own at attractive valuations. 10 stocks we like better than JetBlue Airways When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen.
6281.0
2019-12-30 00:00:00 UTC
Notable Monday Option Activity: AAL, STZ, CVNA
AAL
https://www.nasdaq.com/articles/notable-monday-option-activity%3A-aal-stz-cvna-2019-12-30
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 28,060 contracts has been traded thus far today, a contract volume which is representative of approximately 2.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 44% of AAL's average daily trading volume over the past month, of 6.4 million shares. Particularly high volume was seen for the $35 strike call option expiring August 21, 2020, with 2,600 contracts trading so far today, representing approximately 260,000 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $35 strike highlighted in orange: Constellation Brands Inc (Symbol: STZ) saw options trading volume of 4,186 contracts, representing approximately 418,600 underlying shares or approximately 43.7% of STZ's average daily trading volume over the past month, of 957,905 shares. Particularly high volume was seen for the $190 strike call option expiring January 17, 2020, with 261 contracts trading so far today, representing approximately 26,100 underlying shares of STZ. Below is a chart showing STZ's trailing twelve month trading history, with the $190 strike highlighted in orange: And Carvana Co (Symbol: CVNA) options are showing a volume of 5,380 contracts thus far today. That number of contracts represents approximately 538,000 underlying shares, working out to a sizeable 43.7% of CVNA's average daily trading volume over the past month, of 1.2 million shares. Especially high volume was seen for the $75 strike put option expiring January 15, 2021, with 1,502 contracts trading so far today, representing approximately 150,200 underlying shares of CVNA. Below is a chart showing CVNA's trailing twelve month trading history, with the $75 strike highlighted in orange: For the various different available expirations for AAL options, STZ options, or CVNA 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.
Particularly high volume was seen for the $35 strike call option expiring August 21, 2020, with 2,600 contracts trading so far today, representing approximately 260,000 underlying shares of AAL. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 28,060 contracts has been traded thus far today, a contract volume which is representative of approximately 2.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 44% of AAL's average daily trading volume over the past month, of 6.4 million shares.
Below is a chart showing AAL's trailing twelve month trading history, with the $35 strike highlighted in orange: Constellation Brands Inc (Symbol: STZ) saw options trading volume of 4,186 contracts, representing approximately 418,600 underlying shares or approximately 43.7% of STZ's average daily trading volume over the past month, of 957,905 shares. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 28,060 contracts has been traded thus far today, a contract volume which is representative of approximately 2.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 44% of AAL's average daily trading volume over the past month, of 6.4 million shares.
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 28,060 contracts has been traded thus far today, a contract volume which is representative of approximately 2.8 million underlying shares (given that every 1 contract represents 100 underlying shares). Below is a chart showing AAL's trailing twelve month trading history, with the $35 strike highlighted in orange: Constellation Brands Inc (Symbol: STZ) saw options trading volume of 4,186 contracts, representing approximately 418,600 underlying shares or approximately 43.7% of STZ's average daily trading volume over the past month, of 957,905 shares. That number works out to 44% of AAL's average daily trading volume over the past month, of 6.4 million shares.
Below is a chart showing AAL's trailing twelve month trading history, with the $35 strike highlighted in orange: Constellation Brands Inc (Symbol: STZ) saw options trading volume of 4,186 contracts, representing approximately 418,600 underlying shares or approximately 43.7% of STZ's average daily trading volume over the past month, of 957,905 shares. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 28,060 contracts has been traded thus far today, a contract volume which is representative of approximately 2.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 44% of AAL's average daily trading volume over the past month, of 6.4 million shares.
6282.0
2019-12-30 00:00:00 UTC
Which Of United Airlines' Operating Regions Offers The Best Growth Potential?
AAL
https://www.nasdaq.com/articles/which-of-united-airlines-operating-regions-offers-the-best-growth-potential-2019-12-30
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United Airlines (NASDAQ: UAL) is one of the largest passenger airlines in the world and operates an extensive domestic and international network which spans across the Americas, Europe, Asia-Pacific, Africa, the Middle East, the Caribbean, and Australia. Amid ongoing fears of a slowdown in the U.S. economy, United Airlines’ Latin American operations have posted strong results in the last three quarters, primarily due to increasing average fares and passenger load factor. Trefis compares how revenues have trended for United Airlines’ Domestic operations vs. Latin America in an interactive dashboard, parts of which are summarized below. Notably, Latin America represents just about 8% of United Airlines’ Revenues – a figure that can see sizable growth over coming years. A Quick Look at United Airlines’ Revenues United Airlines reported $42 billion in Total Operating Revenues for full-year 2018. This includes three revenue streams: Passenger Revenue: $38 billion in FY2018 (91% of Total Operating Revenue). It represents income from the sale of air tickets and other ancillary offerings for the company’s mainline and affiliate carriers. If a ticket is sold and travel is yet to happen, the company recognizes income from such tickets as air traffic liability. Due to the complex structure of ticket pricing, cancellation and rescheduling, a certain portion of the liability is recognized as passenger revenues based on recognized historical patterns. Cargo: $1.3 billion in FY2018 (3% of Total Operating Revenue). It represents income freight and mail services. Other Revenue: $2.4 billion in FY2018 (6% of Total Operating Revenue). It comprises of the sale of loyalty points to credit card companies. Strong growth in Latin America likely due to increasing demand United Airlines reports operating revenues across four geographies: Domestic (U.S. and Canada), Atlantic, Pacific, and Latin America. In 2018, the Domestic, Atlantic, Pacific, and Latin America regions contributed 62%, 17%, 13%, and 8% of total operating revenues, respectively. In the first three quarters, United Airlines’ revenues from Latin America observed an 8% growth, primarily due to increasing average fares and passenger load factor. Though the company’s domestic operations also observed a 6% growth, the average fare and passenger load factor have remained relatively flat. Moreover, the Atlantic and the Asia Pacific regions also reported a lukewarm performance, primarily due to declining average fares. According to recent reports, increasing demand for air travel is likely to continue in Latin America for the next two decades and is a potential growth opportunity for all regional and international carriers. What’s behind Trefis? See How it’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams More Trefis Data Like our charts? Explore example interactive dashboards and create your own The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Amid ongoing fears of a slowdown in the U.S. economy, United Airlines’ Latin American operations have posted strong results in the last three quarters, primarily due to increasing average fares and passenger load factor. In the first three quarters, United Airlines’ revenues from Latin America observed an 8% growth, primarily due to increasing average fares and passenger load factor. According to recent reports, increasing demand for air travel is likely to continue in Latin America for the next two decades and is a potential growth opportunity for all regional and international carriers.
A Quick Look at United Airlines’ Revenues United Airlines reported $42 billion in Total Operating Revenues for full-year 2018. Strong growth in Latin America likely due to increasing demand United Airlines reports operating revenues across four geographies: Domestic (U.S. and Canada), Atlantic, Pacific, and Latin America. In the first three quarters, United Airlines’ revenues from Latin America observed an 8% growth, primarily due to increasing average fares and passenger load factor.
A Quick Look at United Airlines’ Revenues United Airlines reported $42 billion in Total Operating Revenues for full-year 2018. Strong growth in Latin America likely due to increasing demand United Airlines reports operating revenues across four geographies: Domestic (U.S. and Canada), Atlantic, Pacific, and Latin America. In the first three quarters, United Airlines’ revenues from Latin America observed an 8% growth, primarily due to increasing average fares and passenger load factor.
Trefis compares how revenues have trended for United Airlines’ Domestic operations vs. Latin America in an interactive dashboard, parts of which are summarized below. A Quick Look at United Airlines’ Revenues United Airlines reported $42 billion in Total Operating Revenues for full-year 2018. It represents income from the sale of air tickets and other ancillary offerings for the company’s mainline and affiliate carriers.
6283.0
2019-12-27 00:00:00 UTC
4 Top Stock Trades for Monday: GOOGL, SPCE, RH, AAL
AAL
https://www.nasdaq.com/articles/4-top-stock-trades-for-monday%3A-googl-spce-rh-aal-2019-12-27
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Is the market finally running out of gas? While we saw new highs in the market on Friday, bulls struggled to keep the indices higher throughout the session. Let’s look at a few top stock trades going into the last few days of 2019. Top Stock Trades for Tomorrow No. 1: Alphabet (GOOG) Source: Chart courtesy of While Apple (NASDAQ:), Microsoft (NASDAQ:) and other mega-cap tech stocks explode higher, Alphabet (NASDAQ:, NASDAQ:GOOG) is missing a bit. Not so much in the sense that it hasn’t enjoyed 2019 — it has, up 30% — but in the sense that it hasn’t done nearly as well as its peers. In any regard, GOOGL stock continues to coil just below $1,365. A breakout over the $1,367 high could kickstart a further rally, likely up toward $1,400. Let’s see if the rising 20-day moving average can give GOOGL a boost, or if a pullback will be in order first. In the latter case, see that uptrend support (blue line) and the 50-day moving average buoy Alphabet. Below that level puts $1,295 back in play. Top Stock Trades for Tomorrow No. 2: American Airlines (AAL) Source: Chart courtesy of Oof. That’s all that can be said about American Airlines (NYSE:) stock over the past few years. The stock continues to put in a series of lower highs, as sellers bully the price lower and lower. On the plus side though, AAL stock put in a lower high in recent months. Shares are getting hit on Friday to the tune of 4%, so it’s not all good news. Still though, if American Airlines can put in another higher low — riding uptrend support (black line) higher — then bulls may get a breakout in 2020. Should uptrend support fail, it puts $25.50 on the table, as well as downtrend support well below $24. Over downtrend resistance and the 50-week moving average, and AAL can garner some upside momentum. Top Stock Trades for Tomorrow No. 3: Virgin Galactic (SPCE) Source: Chart courtesy of Virgin Galactic (NYSE:) officially came public about two months ago, but it has not received a very warm welcome. However, that’s starting to change. After bottoming at $6.90 and finding its footing in the low-$7s, SPCE stock is looking better. Now consolidating between $10.50 and $11.50, traders are looking for a break of either level. A breakout over resistance signals to bulls that more upside could be on the way, particularly if the stock can clear the post-IPO high of $12.09. A breakdown could send SPCE to its 200-day moving average. Should bulls fail to buoy it, sellers could knock it down to single digits. Top Stock Trades for Tomorrow No. 4: RH (RH) Source: Chart courtesy of Formerly known as Restoration Hardware, RH Inc (NYSE:) has been on fire this year. Earnings are routinely better than -expected and a Warren Buffett investment has bulls feeling good. That said, shares are slipping Friday, down more than 6% at one point. I would love to see bulls make a stand in this $210 area. There it has uptrend support (blue line), as well as the earnings gap-up level from earlier this month. Below that and RH may need more time to digest this year’s gains. See if the 50-day moving average supports the stock in that case. If not, a retest of the $192.50 breakout area could be in order. On the upside, bulls want to see RH reclaim the 20-day moving average, then take out the recent high at $229.55. If they can, it puts the prior high at $243.67 on the table. Bret Kenwell is the manager and author of and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AAPL and GOOGL. The post 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.
2: American Airlines (AAL) Source: Chart courtesy of Oof. On the plus side though, AAL stock put in a lower high in recent months. Over downtrend resistance and the 50-week moving average, and AAL can garner some upside momentum.
2: American Airlines (AAL) Source: Chart courtesy of Oof. On the plus side though, AAL stock put in a lower high in recent months. Over downtrend resistance and the 50-week moving average, and AAL can garner some upside momentum.
2: American Airlines (AAL) Source: Chart courtesy of Oof. On the plus side though, AAL stock put in a lower high in recent months. Over downtrend resistance and the 50-week moving average, and AAL can garner some upside momentum.
2: American Airlines (AAL) Source: Chart courtesy of Oof. On the plus side though, AAL stock put in a lower high in recent months. Over downtrend resistance and the 50-week moving average, and AAL can garner some upside momentum.
6284.0
2019-12-27 00:00:00 UTC
Nasdaq 100 Movers: AAL, AMZN
AAL
https://www.nasdaq.com/articles/nasdaq-100-movers%3A-aal-amzn-2019-12-27
nan
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In early trading on Friday, shares of Amazon.com topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.0%. Year to date, Amazon.com Inc registers a 25.6% gain. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 2.0%. American Airlines Group is lower by about 9.5% looking at the year to date performance. Two other components making moves today are Netflix, trading down 1.7%, and Ulta Beauty, trading up 0.7% on the day. VIDEO: Nasdaq 100 Movers: AAL, AMZN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
VIDEO: Nasdaq 100 Movers: AAL, AMZN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 2.0%. American Airlines Group is lower by about 9.5% looking at the year to date performance.
VIDEO: Nasdaq 100 Movers: AAL, AMZN 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 Friday, shares of Amazon.com topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.0%. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 2.0%.
VIDEO: Nasdaq 100 Movers: AAL, AMZN 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 Friday, shares of Amazon.com topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.0%. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 2.0%.
VIDEO: Nasdaq 100 Movers: AAL, AMZN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 2.0%. American Airlines Group is lower by about 9.5% looking at the year to date performance.
6285.0
2019-12-27 00:00:00 UTC
S&P 500 Movers: NFLX, AMZN
AAL
https://www.nasdaq.com/articles/sp-500-movers%3A-nflx-amzn-2019-12-27
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In early trading on Friday, shares of Amazon.com topped the list of the day's best performing components of the S&P 500 index, trading up 1.2%. Year to date, Amazon.com registers a 25.9% gain. And the worst performing S&P 500 component thus far on the day is Netflix, trading down 1.8%. Netflix is showing a gain of 22.0% looking at the year to date performance. Two other components making moves today are American Airlines Group, trading down 1.6%, and Amcor, trading up 0.8% on the day. VIDEO: S&P 500 Movers: NFLX, AMZN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
And the worst performing S&P 500 component thus far on the day is Netflix, trading down 1.8%. Netflix is showing a gain of 22.0% looking at the year to date performance. VIDEO: S&P 500 Movers: NFLX, AMZN 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 Friday, shares of Amazon.com topped the list of the day's best performing components of the S&P 500 index, trading up 1.2%. And the worst performing S&P 500 component thus far on the day is Netflix, trading down 1.8%. Netflix is showing a gain of 22.0% looking at the year to date performance.
In early trading on Friday, shares of Amazon.com topped the list of the day's best performing components of the S&P 500 index, trading up 1.2%. And the worst performing S&P 500 component thus far on the day is Netflix, trading down 1.8%. Two other components making moves today are American Airlines Group, trading down 1.6%, and Amcor, trading up 0.8% on the day.
And the worst performing S&P 500 component thus far on the day is Netflix, trading down 1.8%. Netflix is showing a gain of 22.0% looking at the year to date performance. VIDEO: S&P 500 Movers: NFLX, AMZN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
6286.0
2019-12-23 00:00:00 UTC
American Airlines Offers Non-binary Gender Booking Options For Customers
AAL
https://www.nasdaq.com/articles/american-airlines-offers-non-binary-gender-booking-options-for-customers-2019-12-23
nan
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(RTTNews) - American Airlines has become the second carrier in the U.S. after United Airlines to offer customers non-binary gender options while booking flight tickets, according to a report by USA Today. The airline has reportedly added two gender options 'U' and 'X' for customers in addition to the traditional male and female options. The 'U' option stands for 'undisclosed' and 'X' stands for 'unspecified.' "We recently completed a system update to offer non-binary gender selections. Taking care of our customers and team members is what we do, and we are glad to be able to better accommodate the gender preferences of our travelers and team members," the report quoted company spokesperson Ross Feinstein as saying. According to the USA Today report, the additional gender options are currently available only to customers who call American Airlines directly to book a flight. The airline is continuing to work on updating its website to accommodate the 'U' and 'X' options during online booking, with the update expected to launch sometime in early 2020. In March, United Airlines was the first airline to offer the new gender options for customers when they buy tickets. The airline offers non-binary gender options throughout all booking channels in addition to providing the option to select the title 'Mx.' during booking and in a MileagePlus customer profile. The move by airlines to offer additional gender options come as they seek to comply with recently implemented regulatory changes in states that allow people to identify their gender as non-binary on driving licenses and other documents. Two trade groups of the airline industry, the International Air Transport Association and Airlines for America, have provided best practices guidance to all airlines on how to accommodate customers with non-binary IDs. Delta Air Lines and Southwest Airlines may reportedly join United and American Airlines in offering customers additional gender options when they purchase tickets. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
"We recently completed a system update to offer non-binary gender selections. According to the USA Today report, the additional gender options are currently available only to customers who call American Airlines directly to book a flight. The move by airlines to offer additional gender options come as they seek to comply with recently implemented regulatory changes in states that allow people to identify their gender as non-binary on driving licenses and other documents.
(RTTNews) - American Airlines has become the second carrier in the U.S. after United Airlines to offer customers non-binary gender options while booking flight tickets, according to a report by USA Today. The airline offers non-binary gender options throughout all booking channels in addition to providing the option to select the title 'Mx.' Delta Air Lines and Southwest Airlines may reportedly join United and American Airlines in offering customers additional gender options when they purchase tickets.
(RTTNews) - American Airlines has become the second carrier in the U.S. after United Airlines to offer customers non-binary gender options while booking flight tickets, according to a report by USA Today. The airline offers non-binary gender options throughout all booking channels in addition to providing the option to select the title 'Mx.' Delta Air Lines and Southwest Airlines may reportedly join United and American Airlines in offering customers additional gender options when they purchase tickets.
"We recently completed a system update to offer non-binary gender selections. According to the USA Today report, the additional gender options are currently available only to customers who call American Airlines directly to book a flight. The airline offers non-binary gender options throughout all booking channels in addition to providing the option to select the title 'Mx.'
6287.0
2019-12-22 00:00:00 UTC
Will Going After Citi Card Churners Backfire on American Airlines?
AAL
https://www.nasdaq.com/articles/will-going-after-citi-card-churners-backfire-on-american-airlines-2019-12-22
nan
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There's a rumbling in the community of credit card churners, folks who apply for new cards to nab attractive sign-up bonuses before moving on to the next piece of plastic. American Airlines (NASDAQ: AAL) has been locking down and in some cases terminating AAdvantage accounts this month of folks who acquired too many loyalty miles through Citigroup (NYSE: C) mailers, in some cases stranding travelers by canceling their awards-based flights. This is a story that has more turns than you'd probably think in trying to sort out the good guys from the bad. It's quite possible there are no clean hands in this mess as the airline giant tries to sift out the unprofitable accounts churning away in the gray areas of sign-up-bonus eligibility. The "fasten your seat belts" light is on, so buckle up as we size up the turbulence. Image source: American Airlines. Flying the unfriendly skies Issuing credit cards is a big business, and the competition is fierce to stand out. The end result of the one-upmanship is good news for consumers, with great offers to top lists of the best credit cards for 2020. It's in this operating climate that Citigroup has been aggressively promoting its family of American Airlines-branded cards that reward purchases with AAdvantage miles over points or cash-back opportunities. Approved cardholders for Citi can earn as many as 75,000 AAdvantage miles after spending as much as $5,000 in the first few months of ownership, a hefty bounty that can cover the cost of a few low-priced trips. These cards typically include the boilerplate language that these bonuses can be earned only by folks who haven't received the sign-up bonus miles in the past 24 months, limiting the payouts to every two years. However, Citigroup has also been aggressively putting out mailers and online offers for years, and until recently those promotional pitches didn't include the 24-month language. Sniffing out a loophole, churners were limited solely by Citi's velocity cap that OKs just two new approvals roughly every two months. Folks began to create bogus accounts to generate more of these promotional mailings without the 24-month sign-up-bonus limitation, and since there was often no language making the mailers non-transferable, there quickly emerged a marketplace for churners to buy or trade for these potentially lucrative deals. It's easy to point the finger at the churners who were clearly sidestepping the intention of the miles-earning program. Creating multiple AAdvantage accounts for pets or fictional people to drum up the volume of mailers is against the loyalty plan's terms, and a marketplace for these offers won't pass any reasonable person's sniff test of ethics. However, Citigroup and American didn't do themselves any favors by omitting the 24-month language from the promotional mailings and email offers for years. Unlike other banks that tie new card offers exclusively to the promotion's named recipients, Citi's online approval process allowed anyone to change the name and often let several people apply using the same unique code. There's a lot to unpack here. Churners aren't innocent, but they can counter that loopholes and back doors left unchecked for years were baiting them. On the other hand, Citi isn't the only bank with an AAdvantage-branded credit card, but its peers have checks in place to make sure that only real intended recipients are the one applying for new plastic. American Airlines may think it's in the right to cancel flights and zero out accounts that also include legitimately earned AAdvantage miles, but as the hunt widens and the media stories covering the situation expand, the roles of heroes and villains -- and winners and losers -- may become interchangeable. American Airlines and Citigroup have more to lose than just churners. 5 Simple Tips to Skyrocket Your Credit Score Over 800! Increasing your credit score above 800 will put you in rare company. So rare that only 1 in 9 Americans can claim they're members of this elite club. But contrary to popular belief, racking up a high credit score is a lot easier than you may have imagined following 5 simple, disciplined strategies. You'll find a full rundown of each inside our FREE credit score guide. It's time to put your financial future first and secure a lifetime of savings by increasing your credit score. Simply click here to claim a copy 5 Simple Tips to Skyrocket Your Credit Score over 800. Rick Munarriz owns shares of American Airlines Group. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
American Airlines (NASDAQ: AAL) has been locking down and in some cases terminating AAdvantage accounts this month of folks who acquired too many loyalty miles through Citigroup (NYSE: C) mailers, in some cases stranding travelers by canceling their awards-based flights. Folks began to create bogus accounts to generate more of these promotional mailings without the 24-month sign-up-bonus limitation, and since there was often no language making the mailers non-transferable, there quickly emerged a marketplace for churners to buy or trade for these potentially lucrative deals. Creating multiple AAdvantage accounts for pets or fictional people to drum up the volume of mailers is against the loyalty plan's terms, and a marketplace for these offers won't pass any reasonable person's sniff test of ethics.
American Airlines (NASDAQ: AAL) has been locking down and in some cases terminating AAdvantage accounts this month of folks who acquired too many loyalty miles through Citigroup (NYSE: C) mailers, in some cases stranding travelers by canceling their awards-based flights. There's a rumbling in the community of credit card churners, folks who apply for new cards to nab attractive sign-up bonuses before moving on to the next piece of plastic. These cards typically include the boilerplate language that these bonuses can be earned only by folks who haven't received the sign-up bonus miles in the past 24 months, limiting the payouts to every two years.
American Airlines (NASDAQ: AAL) has been locking down and in some cases terminating AAdvantage accounts this month of folks who acquired too many loyalty miles through Citigroup (NYSE: C) mailers, in some cases stranding travelers by canceling their awards-based flights. There's a rumbling in the community of credit card churners, folks who apply for new cards to nab attractive sign-up bonuses before moving on to the next piece of plastic. These cards typically include the boilerplate language that these bonuses can be earned only by folks who haven't received the sign-up bonus miles in the past 24 months, limiting the payouts to every two years.
American Airlines (NASDAQ: AAL) has been locking down and in some cases terminating AAdvantage accounts this month of folks who acquired too many loyalty miles through Citigroup (NYSE: C) mailers, in some cases stranding travelers by canceling their awards-based flights. However, Citigroup has also been aggressively putting out mailers and online offers for years, and until recently those promotional pitches didn't include the 24-month language. However, Citigroup and American didn't do themselves any favors by omitting the 24-month language from the promotional mailings and email offers for years.
6288.0
2019-12-20 00:00:00 UTC
Notable Friday Option Activity: AAL, SKT, PBF
AAL
https://www.nasdaq.com/articles/notable-friday-option-activity%3A-aal-skt-pbf-2019-12-20
nan
nan
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 32,654 contracts has been traded thus far today, a contract volume which is representative of approximately 3.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 56.4% of AAL's average daily trading volume over the past month, of 5.8 million shares. Especially high volume was seen for the $28 strike call option expiring December 20, 2019, with 10,416 contracts trading so far today, representing approximately 1.0 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $28 strike highlighted in orange: Tanger Factory Outlet Centers, Inc. (Symbol: SKT) options are showing a volume of 15,230 contracts thus far today. That number of contracts represents approximately 1.5 million underlying shares, working out to a sizeable 55.8% of SKT's average daily trading volume over the past month, of 2.7 million shares. Particularly high volume was seen for the $15 strike put option expiring December 20, 2019, with 4,311 contracts trading so far today, representing approximately 431,100 underlying shares of SKT. Below is a chart showing SKT's trailing twelve month trading history, with the $15 strike highlighted in orange: And PBF Energy Inc (Symbol: PBF) saw options trading volume of 8,159 contracts, representing approximately 815,900 underlying shares or approximately 55.4% of PBF's average daily trading volume over the past month, of 1.5 million shares. Particularly high volume was seen for the $40 strike call option expiring March 20, 2020, with 5,464 contracts trading so far today, representing approximately 546,400 underlying shares of PBF. Below is a chart showing PBF's trailing twelve month trading history, with the $40 strike highlighted in orange: For the various different available expirations for AAL options, SKT options, or PBF 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.
Especially high volume was seen for the $28 strike call option expiring December 20, 2019, with 10,416 contracts trading so far today, representing approximately 1.0 million underlying shares of AAL. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 32,654 contracts has been traded thus far today, a contract volume which is representative of approximately 3.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 56.4% of AAL's average daily trading volume over the past month, of 5.8 million shares.
Especially high volume was seen for the $28 strike call option expiring December 20, 2019, with 10,416 contracts trading so far today, representing approximately 1.0 million underlying shares of AAL. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 32,654 contracts has been traded thus far today, a contract volume which is representative of approximately 3.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 56.4% of AAL's average daily trading volume over the past month, of 5.8 million shares.
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 32,654 contracts has been traded thus far today, a contract volume which is representative of approximately 3.3 million underlying shares (given that every 1 contract represents 100 underlying shares). Especially high volume was seen for the $28 strike call option expiring December 20, 2019, with 10,416 contracts trading so far today, representing approximately 1.0 million underlying shares of AAL. That number works out to 56.4% of AAL's average daily trading volume over the past month, of 5.8 million shares.
Especially high volume was seen for the $28 strike call option expiring December 20, 2019, with 10,416 contracts trading so far today, representing approximately 1.0 million underlying shares of AAL. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 32,654 contracts has been traded thus far today, a contract volume which is representative of approximately 3.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 56.4% of AAL's average daily trading volume over the past month, of 5.8 million shares.
6289.0
2019-12-19 00:00:00 UTC
Ex-American Airlines Mechanic Faces Prison For Attempting To Destruct Aircraft
AAL
https://www.nasdaq.com/articles/ex-american-airlines-mechanic-faces-prison-for-attempting-to-destruct-aircraft-2019-12-19
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(RTTNews) - A former American Airlines Mechanic has been charged with attempt to destruct an aircraft that was scheduled to take off from Miami airport. Abdul-Majeed Marouf Ahmed Alani, 60, of Tracy, California who worked for more than three decades for the airline, pleaded guilty to the charge. Alani admitted that on July 17 this year, he tampered with the air data module (ADM) system of the aircraft at Miami International Airport, the U.S. attorney's office in Miami said. ADM reports aircraft speed, pitch and other critical data. Before the aircraft's scheduled take-off from Miami, Alani had inserted a foam substance into the ADM system and used super glue to hold the substance in place, the US Attorney's Office said in a statement. The aircraft was scheduled to depart from Miami International Airport to Nassau, Bahamas. Pilots increased power to the aircraft engines in preparation for take-off causing an error reading by the aircraft's computer related to the ADM system. The take-off was consequently cancelled. About 150 people were reportedly on board. Alani faces up to twenty years in prison. He is currently detained and is scheduled to be sentenced in March 2020. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
(RTTNews) - A former American Airlines Mechanic has been charged with attempt to destruct an aircraft that was scheduled to take off from Miami airport. Abdul-Majeed Marouf Ahmed Alani, 60, of Tracy, California who worked for more than three decades for the airline, pleaded guilty to the charge. The aircraft was scheduled to depart from Miami International Airport to Nassau, Bahamas.
Alani admitted that on July 17 this year, he tampered with the air data module (ADM) system of the aircraft at Miami International Airport, the U.S. attorney's office in Miami said. ADM reports aircraft speed, pitch and other critical data. Before the aircraft's scheduled take-off from Miami, Alani had inserted a foam substance into the ADM system and used super glue to hold the substance in place, the US Attorney's Office said in a statement.
Alani admitted that on July 17 this year, he tampered with the air data module (ADM) system of the aircraft at Miami International Airport, the U.S. attorney's office in Miami said. Before the aircraft's scheduled take-off from Miami, Alani had inserted a foam substance into the ADM system and used super glue to hold the substance in place, the US Attorney's Office said in a statement. Pilots increased power to the aircraft engines in preparation for take-off causing an error reading by the aircraft's computer related to the ADM system.
(RTTNews) - A former American Airlines Mechanic has been charged with attempt to destruct an aircraft that was scheduled to take off from Miami airport. Alani admitted that on July 17 this year, he tampered with the air data module (ADM) system of the aircraft at Miami International Airport, the U.S. attorney's office in Miami said. ADM reports aircraft speed, pitch and other critical data.
6290.0
2019-12-18 00:00:00 UTC
Insiders Buy the Holdings of VLUE ETF
AAL
https://www.nasdaq.com/articles/insiders-buy-the-holdings-of-vlue-etf-2019-12-18
nan
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A look at the weighted underlying holdings of the iShares Edge MSCI USA Value Factor ETF (VLUE) shows an impressive 16.3% of holdings on a weighted basis have experienced insider buying within the past six months. American Airlines Group Inc (Symbol: AAL), which makes up 0.19% of the iShares Edge MSCI USA Value Factor ETF (VLUE), has seen 3 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $8,435,040 worth of AAL, making it the #109 largest holding. The table below details the recent insider buying activity observed at AAL: AAL — last trade: $28.28 — Recent Insider Buys: And DISH Network Corp (Symbol: DISH), the #129 largest holding among components of the iShares Edge MSCI USA Value Factor ETF (VLUE), shows 2 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $6,482,566 worth of DISH, which represents approximately 0.14% of the ETF's total assets at last check. The recent insider buying activity observed at DISH is detailed in the table below: DISH — last trade: $34.47 — Recent Insider Buys: 10 ETFs With Stocks That Insiders Are Buying » 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 (Symbol: AAL), which makes up 0.19% of the iShares Edge MSCI USA Value Factor ETF (VLUE), has seen 3 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The table below details the recent insider buying activity observed at AAL: AAL — last trade: $28.28 — Recent Insider Buys: And DISH Network Corp (Symbol: DISH), the #129 largest holding among components of the iShares Edge MSCI USA Value Factor ETF (VLUE), shows 2 directors and officers as recently filing Form 4's indicating purchases. The ETF holds a total of $8,435,040 worth of AAL, making it the #109 largest holding.
American Airlines Group Inc (Symbol: AAL), which makes up 0.19% of the iShares Edge MSCI USA Value Factor ETF (VLUE), has seen 3 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The table below details the recent insider buying activity observed at AAL: AAL — last trade: $28.28 — Recent Insider Buys: And DISH Network Corp (Symbol: DISH), the #129 largest holding among components of the iShares Edge MSCI USA Value Factor ETF (VLUE), shows 2 directors and officers as recently filing Form 4's indicating purchases. The ETF holds a total of $8,435,040 worth of AAL, making it the #109 largest holding.
The table below details the recent insider buying activity observed at AAL: AAL — last trade: $28.28 — Recent Insider Buys: And DISH Network Corp (Symbol: DISH), the #129 largest holding among components of the iShares Edge MSCI USA Value Factor ETF (VLUE), shows 2 directors and officers as recently filing Form 4's indicating purchases. American Airlines Group Inc (Symbol: AAL), which makes up 0.19% of the iShares Edge MSCI USA Value Factor ETF (VLUE), has seen 3 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $8,435,040 worth of AAL, making it the #109 largest holding.
American Airlines Group Inc (Symbol: AAL), which makes up 0.19% of the iShares Edge MSCI USA Value Factor ETF (VLUE), has seen 3 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $8,435,040 worth of AAL, making it the #109 largest holding. The table below details the recent insider buying activity observed at AAL: AAL — last trade: $28.28 — Recent Insider Buys: And DISH Network Corp (Symbol: DISH), the #129 largest holding among components of the iShares Edge MSCI USA Value Factor ETF (VLUE), shows 2 directors and officers as recently filing Form 4's indicating purchases.
6291.0
2019-12-17 00:00:00 UTC
Buffett Is Increasing His Bets on These 3 Sectors
AAL
https://www.nasdaq.com/articles/buffett-is-increasing-his-bets-on-these-3-sectors-2019-12-17
nan
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Few investors have been as successful over their lifetimes as Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) CEO Warren Buffett. Over a span of roughly 65 years, Buffett has transformed roughly $10,000 in seed capital into a net worth of more than $87 billion, as of Thursday, Dec. 12. Not to mention, Berkshire Hathaway's share price appreciation has created more than $400 billion in wealth for shareholders over the years. Because Buffett has a storied history of beating the market, Wall Street and investors often look to the "Oracle of Omaha" for investment ideas. And what better way to get ideas than scour quarterly 13F filings with the Securities and Exchange Commission, which provide a portfolio snapshot for investors of what the biggest and brightest minds in the investment world have been up to. A quick look at Buffett's 13Fs over the past three years shows that he's been upping the ante on three sectors in particular. Berkshire Hathaway CEO Warren Buffett at his company's annual shareholder meeting. Image source: The Motley Fool. Financials This probably comes as a surprise to absolutely no one, but Berkshire Hathaway has been steadily increasing its exposure to financial stocks for some time now. At the midpoint of 2016, Berkshire Hathaway had "only" 32.6% of its investment portfolio tied up in financials. But as of the end of the third quarter 2019, financials occupied a 46% stake. Buffett has made it pretty clear that he really likes the profit potential of money center banks, which is why his position in Bank of America (NYSE: BAC) has been beefed up so much in recent years. Bank of America might very well be the most interest-sensitive of all the big banks. Thus, as the Federal Reserve moved interest rates off of record-low levels between December 2008 and December 2015, it began putting some serious pep into BofA's net interest income. Not to mention, the credit quality of Bank of America's loans has improved immensely, and the company has done an excellent job of reducing expenses by closing some of its physical branches and focusing on digital banking. Berkshire Hathaway has also steadily increased its holding in JPMorgan Chase (NYSE: JPM). Buffett is a big fan of JPMorgan Chase CEO Jamie Dimon and has previously opined that he reads Dimon's annual shareholder letter to get a feel for what's going on in the banking industry. JPMorgan Chase typically has among the highest return on assets and return on equity among the major U.S. banks, and is currently sporting a market-topping 2.7% dividend yield. Image source: Getty Images. Transports Now, this might come as a bit of a surprise. After having virtually no investment dollars tied up in the transportation space at the midpoint of 2016, Buffett now has 4.7% of his investment portfolio devoted to transportation stocks. And when I say "transport stocks," I pretty much mean airlines. In the third and fourth quarters of 2016, Buffett began taking sizable positions in a number of major airlines, including American Airlines Group (NASDAQ: AAL), Delta Air Lines, United Airlines, and Southwest Airlines. The thesis behind these investments looks to be the dramatic decline in crude oil prices during the early part of 2016. Briefly touching below $30 a barrel, lower crude prices caused fuel expenses to significantly drop for airlines. This, in turn, helped to send profits through the roof. Nevertheless, transports are an odd choice for the Oracle of Omaha, given that they require a lot of capital input to produce what's often menial margins. Persistently low interest rates have helped an industry that often relies on debt financing to expand and modernize their fleets, but airlines haven't shown the ability to deal with recessions well, at least historically. American Airlines is particularly worrisome, with more than $29 billion in net debt in tow. If the U.S. economy hits any significant bumps, American Airlines would be among the first of the transports to descend. Image source: Apple. Information technology Last, but not least, Buffett has also been an active buyer in the technology space in recent years. By the midpoint of 2016, information technology comprised a 10.6% stake in Berkshire Hathaway's portfolio. But as of the end of the third quarter, information technology's share was up to 26%. Why the sudden interest in the tech space? Well, the fact is that Buffett had been investing heavily in IBM (NYSE: IBM) since 2011, but this investment soured over time. IBM's tardiness in promoting cloud products led to a multiyear sales slump from which it's yet to recover. Buffett subsequently sold out of IBM completely by 2018. At the same time, Buffett quickly ramped up Berkshire Hathaway's stake in tech giant Apple (NASDAQ: AAPL), which he first bought in 2016. Today, Apple makes up more than a quarter of Berkshire's invested capital, which demonstrates just how much conviction Buffett has in the company and CEO Tim Cook. Buffett views the iPhone as an underpriced and underappreciated asset for the company, and has been a big fan of Apple's massive share repurchase plans. Also, few companies on the planet pay out more in annual dividends than Apple, and Buffett has no issue reaping the rewards of the company's steady dividend growth. 10 stocks we like better than Bank of America When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Bank of America wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Sean Williams owns shares of Bank of America. The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), Delta Air Lines, and Southwest Airlines. The Motley Fool is short shares of IBM and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), long January 2020 $200 calls on IBM, short January 2020 $200 puts on IBM, short January 2020 $155 calls on IBM, and short January 2020 $220 calls on Berkshire Hathaway (B shares). 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.
In the third and fourth quarters of 2016, Buffett began taking sizable positions in a number of major airlines, including American Airlines Group (NASDAQ: AAL), Delta Air Lines, United Airlines, and Southwest Airlines. And what better way to get ideas than scour quarterly 13F filings with the Securities and Exchange Commission, which provide a portfolio snapshot for investors of what the biggest and brightest minds in the investment world have been up to. Persistently low interest rates have helped an industry that often relies on debt financing to expand and modernize their fleets, but airlines haven't shown the ability to deal with recessions well, at least historically.
In the third and fourth quarters of 2016, Buffett began taking sizable positions in a number of major airlines, including American Airlines Group (NASDAQ: AAL), Delta Air Lines, United Airlines, and Southwest Airlines. The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), Delta Air Lines, and Southwest Airlines. The Motley Fool is short shares of IBM and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), long January 2020 $200 calls on IBM, short January 2020 $200 puts on IBM, short January 2020 $155 calls on IBM, and short January 2020 $220 calls on Berkshire Hathaway (B shares).
In the third and fourth quarters of 2016, Buffett began taking sizable positions in a number of major airlines, including American Airlines Group (NASDAQ: AAL), Delta Air Lines, United Airlines, and Southwest Airlines. After having virtually no investment dollars tied up in the transportation space at the midpoint of 2016, Buffett now has 4.7% of his investment portfolio devoted to transportation stocks. The Motley Fool is short shares of IBM and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), long January 2020 $200 calls on IBM, short January 2020 $200 puts on IBM, short January 2020 $155 calls on IBM, and short January 2020 $220 calls on Berkshire Hathaway (B shares).
In the third and fourth quarters of 2016, Buffett began taking sizable positions in a number of major airlines, including American Airlines Group (NASDAQ: AAL), Delta Air Lines, United Airlines, and Southwest Airlines. Well, the fact is that Buffett had been investing heavily in IBM (NYSE: IBM) since 2011, but this investment soured over time. At the same time, Buffett quickly ramped up Berkshire Hathaway's stake in tech giant Apple (NASDAQ: AAPL), which he first bought in 2016.
6292.0
2019-12-14 00:00:00 UTC
The 7 Biggest Iron Stocks
AAL
https://www.nasdaq.com/articles/the-7-biggest-iron-stocks-2019-12-14
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Iron is crucial in supporting the growth of the global economy. That's because the metal is a critical ingredient in making steel, which we use to build everything from commercial buildings to bridges to pipelines. It's also a key component of many products, such as automobiles, appliances, and wind turbines. Given steel's important role in building the critical infrastructure of the global economy, the iron market is the largest one in the mining sector by volume. It's also the third-largest commodities market overall by dollar value behind oil and gold. Because of how vital this metal is to the global economy, investors should get to know the iron sector's top stocks. Image source: Getty Images. The largest publicly traded iron companies in the world While iron is the most used metal in the world, only a handful of companies focus on this key industrial metal due to the high costs of producing it economically. In fact, just four companies -- Vale (NYSE: VALE), Rio Tinto (NYSE: RIO), BHP Group (NYSE: BHP), and Fortescue Metals Group (OTC: FSUMF) -- control 70% of the global iron ore export market. While several other companies vie for that remaining share, many are either privately owned or government-controlled. Many others, meanwhile, have market capitalizations (the sum of the company's total available shares multiplied by its stock price) of less than $200 million. Those factors trim the list of noteworthy iron stocks down to seven: Data source: Company websites. Market cap as of October 27, 2019. Here's a closer look at each one of these iron-focused companies. Image source: Getty Images. 1. BHP Group BHP Group is the largest mining company in the world by market capitalization. In addition to being one of the biggest iron ore miners, it also produces copper, nickel, zinc, oil, and natural gas. In BHP's fiscal 2019, iron ore contributed 48% of the group's underlying EBITDA. Copper, meanwhile, accounted for 19% of its earnings while coal followed at 17%, and oil and gas provided 16% of its profits. BHP Group has iron ore assets in two regions: Australia and Brazil. Its key iron ore operation is Western Australia Iron Ore (WAIO), which is an integrated system of four processing hubs and five mines focused on the Pilbara region of northern Western Australia. More than 600 miles of railroads connect these mines and hubs to port infrastructure, which exports iron to global markets. In fiscal 2019, WAIO -- which is made up of four joint ventures 85%-owned by BHP -- produced 238 metric tons of iron ore attributable to BHP Group. The company's Brazilian iron ore business consists of the Samarco mine, which it co-owns with Vale. The companies, however, suspended operations from that mine in 2015 following a tragic dam failure, which killed 19 people. The partners spent several billion dollars cleaning up the disaster and received approval to resume production at the mine in October of 2019. They expect it to start producing again toward the end of 2020, aiming to bring it back online slowly. The initial plan is for output to be at about one-third of the mine's previous capacity of nearly 25 million tons per year, with a target to get production up to 14-16 million tons within six years of restarting the mine. In addition to bringing Samarco back online, another of the big drivers of BHP's iron ore business in the future is its more than $3 billion investment in South Flank. This mine will replace the output of Yandi, which is nearing the end of its useful life. South Flank should come online in 2021 and produce about 80 MT per year, offsetting Yandi's current output. With the planned restart of Samarco and the upcoming completion of South Flank, BHP Group should remain a dominant force in the iron ore industry over the next decade. 2. Rio Tinto Rio Tinto is a large, diversified mining company. It has organized its operations into four product groups: Aluminum, copper & diamonds, energy & minerals, and iron ore. The company makes most of its money on iron ore. In 2018, that product group supplied 59% of its underlying EBITDA. Aluminum was next at 16%, followed by copper & diamonds at 14% and energy & minerals at 11%. Like BHP, Rio Tinto is a major iron producer in the Pilbara region of Western Australia, where it operates the world's largest integrated portfolio of iron ore assets, which also boast industry-leading margins. Overall, it has 16 mines, four port facilities, and more than 1,000 miles of rail. This business produced 281.8 million tonnes of iron ore for Rio Tinto in 2018, up about 4% year over year. Rio Tinto approved three new iron ore projects in 2018 designed to sustain its existing operations. The largest is a $2.6 billion investment in the Koodaideri mine that should start-up in 2021 and produce 43 million tonnes of ore per year. The company also approved a $44 million investment for a pre-feasibility study into Koodaideri Phase 2, which could expand this mine's capacity up to 70 million tonnes per year. Finally, the company and two joint venture partners will invest $1.55 billion to sustain the production capacity at the Robe Valley and West Angelas mines in a project that should also start-up in 2021. Rio Tinto's investments in its iron ore business should ensure that it remains a leader in the sector for years to come. 3. Vale Brazil's Vale is the world leader in producing iron ore as well as nickel. The company also mines manganese, ferroalloys, coal, and copper. In addition to mining, the company operates a large-scale logistics business, which includes railroads, ports, terminals, and a shipping fleet, an electricity-generating business, and has joint-ventures that make steel. In 2018, Vale's ferrous minerals group, which includes its iron ore, manganese, and ferroalloys operations, generated 89% of its adjusted EBITDA (nearly all of which came from iron-ore related activities). The company's base metals group, which includes nickel and copper, produced 15% of its earnings. Coal also contributed to its earnings while all its other businesses recorded losses. Brazil is the center of Vale's iron ore mining business. The company operates 22 mines in the country, with the bulk located in the Carajas region in Northern Brazil, which contains some of the highest quality iron ore in the world. On average, rocks found in Carajas contain 67% iron ore, which is the most concentrated level on earth. The company's mines produced 307.4 million metric tons of iron ore in 2018. That's a 6.5% increase from 2017's level. The company also produced 56 million metric tons of iron ore pellets at its plants in Brazil, Oman, and China. Vale has invested a lot of money over the years to become the leading iron ore producer. One of its largest investments was in building the S11D mine in Brazil, with spending totaling $14.3 billion to bring it online. That mine, which produced 55 million tons in 2018, should reach its current capacity of 90 million tons by 2020. The company, however, is investing another $770 million into that mine to boost its annual production capacity to 100 million tons per year by 2022. That's one of several projects the company has under way to improve its iron ore operations by not only increasing output but also reducing costs and improving product quality. These investments should ensure that Vale remains the global iron ore leader in the coming years. 4. AngloAmerican AngloAmerican is a diversified mining company headquartered in the UK. It produces diamonds, copper, platinum group metals, coal, iron ore, nickel, and manganese from mines in Africa, North and South America, and Australia. Coal was the company's biggest money-maker in 2018 at 35% of its underlying EBITDA. Copper came in second at 20%, followed by its investment in the De Beers diamond business at 14%. Its iron ore operations, meanwhile, contributed 13% of its underlying profitability. AngloAmerican's iron ore operations consist of two assets. It holds a 69.7% interest in Kumba Iron Ore in South Africa and has developed the integrated Minas-Rio mining operation in Brazil. Those assets produced 46.5 million tons of iron ore in 2018. That was down nearly 25% from 2017's total due to third-party rail constraints at Kumba and a long suspension of Minas-Rio due to two iron ore pipeline leaks. AngloAmerican doesn't currently have any plans to invest in growing its iron ore business. While it aims to invest $1.5 billion to $2 billion per year in the 2020 to 2021 timeframe on mining growth projects, that will mainly go toward expanding its copper, diamonds, and metallurgical coal operations. That's because those projects offer the highest margins and returns, as well as fast paybacks. Given this focus elsewhere, AngloAmerican will likely remain a second-tier player in the iron ore market in the future. Image source: Getty Images. 5. Fortescue Metals Group Ltd Fortescue Mining Group, FMG, is one of the four main global leaders in the iron ore industry along with Vale, Rio Tinto, and BHP Group. Like those latter two, it focuses on operating world-class infrastructure and mining assets in the Pilbara region of Western Australia. The company mined 206.7 million tons of iron ore in its fiscal 2019, up 12% year over year. FMG's production should continue rising in the coming years, given the amount of money it's investing in new iron ore projects. The $1.275 billion Eliwana project, for example, will enable it to boost production by 30 million tons per year when it comes online at the end of 2020. The Iron Bridge Magnetite project, meanwhile, is a $2.6 billion investment by the company and its joint venture partners. It will supply 22 million tons of ore per year when it starts up in mid-2022. FMG is working to ensure it remains a major force in the iron ore market by continuing to explore for new resources. It's the largest landholder in the Pilbara, where it continues to look for new resources. It's also searching for iron ore deposits in places like Ecuador, Argentina, and Colombia. That combination of visible growth and exploration upside potential should enable FMG to remain a leader in the iron ore sector in the decades to come. 6. ArcelorMittal ArcelorMittal is the world's leading integrated mining and steel company. It's one of the largest global steel producers, including being the biggest one in North and South America, Africa, and the European Union. The company also operates a world-class mining business with a global portfolio of 13 mines. It produces both iron ore and coking coal, which are the two main ingredients for making steel. The company engages in iron ore activities in Brazil, Bosnia, Canada, Kazakhstan, Liberia, Mexico, Ukraine, and the U.S. These operations produced 58.5 million tons of iron in 2018, which supplied about 49% of the company's total need. Arcelor Mittal's mining business contributed about 12.5% of its EBITDA in 2018, with its steel operations accounting for the rest of its earnings. In many ways, ArcelorMittal uses its iron business as an offset to its steelmaking operations. It ships about 35% of the iron ore its mines produce directly to its steel mills on a cost-plus basis, which adds a markup to the direct mining costs to arrive at a price for the material. It sells the rest of its ore at the going market price to external customers as well as internally. As such, it sources some of its ore at potentially below market prices while the rest at the prevailing market price, enabling it to offset a large portion of its iron input costs. Given that ArcelorMittal's iron ore operations primarily support its steelmaking business, its focus isn't on becoming a leader in that industry. Instead, it's pouring the bulk of its growth-focused capital into expanding its steel business. Because of that focus, it's not growing its iron ore production, which means it will likely remain in the sector's second tier. 7. Cleveland-Cliffs Cleveland-Cliffs is North America's largest iron ore producer. It operates three mines in the Great Lakes region and is also a minority partner in another mine in that area. Those locations combined to produce 20.3 million tons of ore for the company in 2018. Cleveland-Cliffs is a niche player in the iron ore industry. It primarily supplies ore and other iron-based materials to steel mills in the U.S. Further, it focuses on producing high-grade, custom-made pellets that its steelmaking customers can feed directly into a blast furnace. These products sell for a premium price compared to the ore sold by rivals. While this focus enables it to earn a higher profit margin on the iron it produces, it's highly susceptible to changes in the North American steel sector. As such, if industry conditions weaken due to an economic slowdown in the U.S. or increased competition from global steel producers, it can negatively impact Cleveland-Cliffs operations. The company, however, remains focused on meeting the needs of its core market. It took another step toward supplying customers with high-grade iron materials in 2017 when it announced the construction of an HBI (hot briquetted iron) plant in Ohio. That material is a specialized, high-quality iron alternative to scrap metal, which enables steel manufacturers to produce more valuable grades of steel. The company expects to finish the $830 million plant in 2020. It should produce 1.9 million metric tons per year, which should replace the 3 million metric tons of ore that the Great Lakes region's steel producers need to import each year to support their operations. Because Cleveland-Cliffs focuses on supplying iron to the North American steel market, it has limited its upside to that one region. That can prove problematic. In 2019, for example, steel demand in the U.S. was on track to fell by about 1% compared to 1.3% growth in global steel consumption. That puts the company at a disadvantage to its global rivals, which could have more growth potential as they supply the more rapidly expanding Asian economies with iron ore. As a result, Cleveland-Cliffs will likely remain a second-tier iron producer. Dominated by a quartet Many regard iron ore as the second most important commodity to the global economy behind oil. However, it's an expensive metal to mine, which is why only a handful of companies focus on it, with the market dominated by four main players. Because of that, investors who are interested in this market should focus their attention on those leaders. They're best positioned to profit from the metal's importance in helping support economic growth, which means that iron could provide the biggest boost to their stock prices. 10 stocks we like better than Arcelor Mittal NY Registry Shares NEW When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Arcelor Mittal NY Registry Shares NEW wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of June 1, 2019 Matthew DiLallo owns shares of BHP Group Ltd. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Finally, the company and two joint venture partners will invest $1.55 billion to sustain the production capacity at the Robe Valley and West Angelas mines in a project that should also start-up in 2021. In 2018, Vale's ferrous minerals group, which includes its iron ore, manganese, and ferroalloys operations, generated 89% of its adjusted EBITDA (nearly all of which came from iron-ore related activities). It primarily supplies ore and other iron-based materials to steel mills in the U.S. Further, it focuses on producing high-grade, custom-made pellets that its steelmaking customers can feed directly into a blast furnace.
In fact, just four companies -- Vale (NYSE: VALE), Rio Tinto (NYSE: RIO), BHP Group (NYSE: BHP), and Fortescue Metals Group (OTC: FSUMF) -- control 70% of the global iron ore export market. Like BHP, Rio Tinto is a major iron producer in the Pilbara region of Western Australia, where it operates the world's largest integrated portfolio of iron ore assets, which also boast industry-leading margins. It should produce 1.9 million metric tons per year, which should replace the 3 million metric tons of ore that the Great Lakes region's steel producers need to import each year to support their operations.
Its key iron ore operation is Western Australia Iron Ore (WAIO), which is an integrated system of four processing hubs and five mines focused on the Pilbara region of northern Western Australia. The company's mines produced 307.4 million metric tons of iron ore in 2018. The company mined 206.7 million tons of iron ore in its fiscal 2019, up 12% year over year.
BHP Group has iron ore assets in two regions: Australia and Brazil. Rio Tinto's investments in its iron ore business should ensure that it remains a leader in the sector for years to come. The company operates 22 mines in the country, with the bulk located in the Carajas region in Northern Brazil, which contains some of the highest quality iron ore in the world.
6293.0
2019-12-08 00:00:00 UTC
United Airlines Buys the Airbus A321XLR: Is Boeing's NMA Dead?
AAL
https://www.nasdaq.com/articles/united-airlines-buys-the-airbus-a321xlr%3A-is-boeings-nma-dead-2019-12-08
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Today, United Airlines (NASDAQ: UAL), American Airlines (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) operate hundreds of Boeing (NYSE: BA) 757 and Boeing 767 jets, with transatlantic flights being the most prominent use case. However, these planes are aging, leading to lots of speculation about how the three legacy carriers would replace them. Until recently, there were no direct replacements available for either model. The Boeing 737 MAX 10 and Airbus (OTC: EADSY) A321neo are similar in size to the 757-200 but don't have enough range for most transatlantic routes. Even the smallest Boeing 787 Dreamliner variant is larger than the most popular 767 model (the 767-300ER). The Dreamliner also has far more range than is needed for transatlantic routes, adding unnecessary costs. However, Airbus began selling an ultra-long-range version of the A321neo earlier this year: the A321XLR. It has been racking up orders quickly. Last week, United Airlines jumped on the bandwagon, ordering 50 Airbus A321XLRs. This could be the final nail in the coffin for Boeing's proposed "NMA" (new midsize airplane) concept, which would have filled a similar niche. United Airlines ordered 50 Airbus A321XLRs last week. Image source: United Airlines. Quick sales success for Airbus The Airbus A321XLR has an advertised range of 4,700 nautical miles -- even more than the Boeing 757. It's also about 30% more fuel efficient. As a result, it represents a great direct replacement and can also open the door to new routes that were slightly too long for the Boeing 757 or wouldn't have been sufficiently profitable with the 757's higher fuel burn. Unsurprisingly, Airbus quickly won commitments for the A321XLR from three U.S. airlines after launching the model at the 2019 Paris Air Show. Most notably, American Airlines ordered 50. It will likely use them for flights to Hawaii from Los Angeles and Phoenix, as well as transatlantic flights from Philadelphia (and perhaps also Chicago and New York). Many of these routes are operated with Boeing 757s today, or were in the past. Airbus also received smaller order commitments from two U.S. low-fare carriers. JetBlue Airways converted 13 A321neo orders to the A321XLR, as part of its plan to begin flying from Boston and New York to Europe. Finally, Frontier Airlines ordered 18, although its A321XLR plans are less clear. Another vote for the A321XLR United Airlines (and merger partner Continental Airlines before that) has been the biggest user of the 757 for transatlantic routes, mainly connecting Newark Airport to smaller destinations in Europe. In early 2017, former United CFO Andrew Levy expressed interest in replacing them with Boeing's NMA concept plane, which was expected to carry 200 to 270 passengers (depending on the variant) up to around 5,000 nautical miles. He noted that none of the alternatives then available could fulfill all of the missions performed by United's 757s and 767s. United likes the Boeing 787, but it's not an ideal Boeing 767 replacement. Image source: United Airlines. At that time, Boeing seemed likely to begin selling the NMA (probably as the "Boeing 797") by mid-2018 at the latest, with the jet entering service by 2024 or 2025. However, it delayed the formal launch decision to 2019 as management worked to nail down the business case, which was complicated by the fairly small addressable market. Boeing has estimated that the total market for planes in the NMA size/range class may be 4,000 to 5,000 units over a 20-to-25-year period. Many others in the industry think the addressable market is even smaller. The 737 MAX crisis of the past year has led to further delays. Boeing has shifted engineering resources to fixing the MCAS system that contributed to two fatal crashes. Additionally, the 737 MAX fiasco will likely extend the development timeline for new aircraft, further delaying the potential availability of the NMA. Making matters worse, Boeing will need to think hard about accelerating the complete replacement of the 737 MAX family rather than investing heavily in a niche market opportunity. With the NMA's entry-into-service nowhere on the horizon, United Airlines executives revealed earlier this year that they were looking hard at the Airbus A321XLR. Last week, they pulled the trigger, matching American Airlines with an order for 50. United's A321XLRs will begin arriving in 2024 and will replace its transatlantic 757s on a one-for-one basis, more or less. They will primarily operate on transatlantic routes from the airline's Newark, New Jersey, and Washington, D.C., hubs. The Boeing NMA may be doomed Even as they announced the A321XLR order, United executives continued to express interest in the NMA concept. After all, the airline still has more than 50 aging Boeing 767s waiting to be replaced, and none of the options Boeing and Airbus are producing today are perfect replacements. Delta Air Lines has also been a vocal supporter of Boeing's NMA concept. CEO Ed Bastian has noted that Delta still has more than 200 757s and 767s that will need to be replaced in the coming years. However, the American Airlines and United Airlines orders for A321XLRs have further hurt the commercial viability of the NMA concept, given the small size of the addressable market. Furthermore, Delta's 757s and 767s are more than 22 years old, on average. Many will need to be replaced before the NMA would likely become available. Given that Delta already operates hundreds of A320-family planes, it wouldn't be surprising to see the airline pick the A321neo and its longer-range variants to replace its 100-plus 757s, leaving a much smaller opportunity remaining for Boeing. Of course, there are plenty of airlines in other regions that may have use for a medium-range, medium-size jet. But it seems increasingly uncertain that there's enough of a market to support the massive cost of developing an all-new airplane. With cheaper options on the table that would require fewer development resources -- like building a re-engined 767-X -- United's decision to buy the A321XLR could be the beginning of the end for Boeing's NMA aircraft concept. 10 stocks we like better than Boeing When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Boeing wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Adam Levine-Weinberg owns shares of Delta Air Lines and JetBlue Airways and is long January 2020 $20 calls on American Airlines Group. The Motley Fool owns shares of and recommends Delta Air Lines. The Motley Fool recommends JetBlue Airways. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Today, United Airlines (NASDAQ: UAL), American Airlines (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) operate hundreds of Boeing (NYSE: BA) 757 and Boeing 767 jets, with transatlantic flights being the most prominent use case. As a result, it represents a great direct replacement and can also open the door to new routes that were slightly too long for the Boeing 757 or wouldn't have been sufficiently profitable with the 757's higher fuel burn. In early 2017, former United CFO Andrew Levy expressed interest in replacing them with Boeing's NMA concept plane, which was expected to carry 200 to 270 passengers (depending on the variant) up to around 5,000 nautical miles.
Today, United Airlines (NASDAQ: UAL), American Airlines (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) operate hundreds of Boeing (NYSE: BA) 757 and Boeing 767 jets, with transatlantic flights being the most prominent use case. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Adam Levine-Weinberg owns shares of Delta Air Lines and JetBlue Airways and is long January 2020 $20 calls on American Airlines Group. The Motley Fool owns shares of and recommends Delta Air Lines.
Today, United Airlines (NASDAQ: UAL), American Airlines (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) operate hundreds of Boeing (NYSE: BA) 757 and Boeing 767 jets, with transatlantic flights being the most prominent use case. After all, the airline still has more than 50 aging Boeing 767s waiting to be replaced, and none of the options Boeing and Airbus are producing today are perfect replacements. However, the American Airlines and United Airlines orders for A321XLRs have further hurt the commercial viability of the NMA concept, given the small size of the addressable market.
Today, United Airlines (NASDAQ: UAL), American Airlines (NASDAQ: AAL), and Delta Air Lines (NYSE: DAL) operate hundreds of Boeing (NYSE: BA) 757 and Boeing 767 jets, with transatlantic flights being the most prominent use case. United Airlines ordered 50 Airbus A321XLRs last week. However, the American Airlines and United Airlines orders for A321XLRs have further hurt the commercial viability of the NMA concept, given the small size of the addressable market.
6294.0
2019-12-07 00:00:00 UTC
The 10 Biggest Airline Stocks
AAL
https://www.nasdaq.com/articles/the-10-biggest-airline-stocks-2019-12-07
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Humanity has long dreamed of flying, but one must imagine even Orville and Wilbur Wright would be in awe of the industry that has sprung up around the invention they first got airborne in December 1903. Airlines have changed the way we do business and opened up new opportunities as they have made the globe smaller and more accessible. In 2018, the global airline industry carried 4.3 billion passengers and generated more than $800 billion in revenue, according to the International Air Transportation Association, up 6% and 9.4%, respectively, from 2017. A substantial share of that total is traveled on U.S. airlines, and an investor interested in buying into that growth (or at least recouping a small bit of what they spend annually on vacation travel) might want to take a look at U.S. airline stocks. Before committing capital to airlines, it is a good idea to examine the lay of the land and get to know the different competitors vying to transport customers from point A to point B. Here's a quick look at the 10 biggest U.S. airline stocks, including a few names that might surprise you. Image source: Getty Images. Airline investing 101 Historically, airline stocks have been dangerous for buy-and-hold investors. The industry is known for its high fixed costs, including airplanes and skilled labor, and fluid demand that tends to ebb and flow with the business cycle. Airlines spend hundreds of millions of dollars on new aircraft, taking on considerable debt in the process, and then hope to sell tickets at a price that allows them to recoup the investment. Most of the large airlines run what is known as a hub-and-spoke network, with flights from all over a region feeding into one central location. A traveler flying from Greensboro, South Carolina, for example, to Fargo, North Dakota, is unlikely to find a nonstop flight. But the traveler will have options, perhaps flying Delta Air Lines through its Atlanta hub or American Air Group through Charlotte, North Carolina. The airlines have gotten better at making money through the business cycle -- a round of consolidation that cut the number of major airlines in half (leaving four) helped -- and have in recent years attracted the attention of high-profile former critics like Warren Buffett, who last decade swore off the industry but today owns shares of a basket of U.S. carriers through Berkshire Hathaway. The companies still face a lot of factors beyond their control, ranging from the health of the U.S. economy and the price of jet fuel to issues with suppliers (like Boeing's high-profile grounding of its 737 MAX aircraft). But they also have stronger balance sheets than ever before and should have the wherewithal to survive even a prolonged economic slowdown. The airline industry, once nearly uninvestable, is now an option for a buy-and-hold investor willing to dig into the financials and get to know the industry. The 10 largest U.S. airlines Airlines traditionally have fallen into one of four categories, and while the boundaries have blurred a bit in recent years, the designations still largely hold true. Full-service airlines boast massive route networks and international partners designed to take you anywhere in the world and offer a range of cabin choices en route. Discount airlines provide fewer frills and usually fewer destinations but focus on low costs. Regional airlines offer outsourced lifts but rely on the full-service airlines for branding, marketing, and ticket sales. Contract carriers, which tend to be smaller and operate off the radar, fly mostly cargo and charter missions. Here's a list of the 10 largest U.S. airline companies based on market capitalization (the total company shares multiplied by the stock's current market price): Data source: Yahoo! Finance. Data as of Oct. 25, 2019. Let's see where these companies fit in the industry spectrum and how they look as potential investments. 1. Delta Air Lines: The legacy leader Delta Air Lines has emerged over the past decade as the driving force behind much of the change in the U.S. aviation market. It was among the first to fly into bankruptcy following the terrorist attacks of Sept. 11, 2001, emerging with a revitalized balance sheet that it used to kick off a round of consolidation when it acquired Northwest Airlines in 2008. Since that time, Delta has continued to push aggressively. It was one of the first to revamp its pricing strategy to better compete with discounters that, for a generation, had been eating into domestic market share and profitability. Delta has had success in recent years by offering low fares to price-sensitive flyers but also by increasing revenue from less-sensitive business travelers via upgrades and other ticket add-ons. Currently, Delta generates about 50% of its revenue from its main-cabin passengers, down from a historical average of closer to 70% of revenue. It has made that change by offering more premium services. A Delta A-321. Image source: Delta Air Lines. The airline has a reputation for writing its own playbook. In 2012, for example, it responded to worries about a lack of affordable jet fuel in the northeast U.S. by buying a refinery in the region. More recently, Delta has been experimenting with a variation on a subscription service, perhaps tied to getting priority seating assignments or discounts on bag fees and other amenities, as a way to generate recurring revenue. Delta is part of the international SkyTeam alliance along with foreign partners including Air France-KLM and Korean Air Lines. It has aggressively sought to lock in foreign partners by taking equity stakes in Aeromexico, China Eastern Airlines, Virgin Atlantic, and Gol Linhas Aereas Inteligentes. 2. Southwest Airlines: The discount pioneer Southwest Airlines is the grandfather of discounters, formed in the 1960s (flying within Texas) and kicking off a nationwide expansion in 1979 after the industry was deregulated. No airline over the past half century has done more to disrupt the industry. Southwest, despite its low costs and few frills, has a well-earned reputation as a premium stock able to profit in good times and bad. Unlike most of the major carriers on this list, Southwest has never filed for bankruptcy protection. The model has evolved a lot since the early days, and Southwest planes can now be seen far from their Texas base, landing in the Caribbean and flying to Hawaii. Southwest still differentiates itself with a lack of seat assignments and is one of the few airlines to not charge for luggage. But the legacy full-service airlines are much more efficient than they once were and are no longer as vulnerable to Southwest cherry-picking key markets. The so-called Southwest Effect, a phrase coined by regulators in the early 1990s to describe the pattern of lower fares and higher passenger volumes that come as Southwest enters a market, seems to be fading. A Southwest-branded Boeing 737. Image source: Boeing. Southwest historically has kept costs low by relying on a single aircraft type, Boeing's 737, and the 2019 grounding of the 737 MAX caused schedule disruptions and temporarily cut into growth. But it also forced Southwest management to make some difficult but necessary decisions about the strength of some of its markets. That forced pruning should benefit the company for years, as it has allowed Southwest to allocate extra resources to the markets and routes that work best. Today's Southwest is more a member of the ruling class of four top airlines that control nearly 80% of the domestic U.S. market than it is an outsider, but the company is still one of the lower-cost operators in the business and continues to generate consistent earnings growth. 3. United Airlines: Finally flying straight United Airlines was a meandering giant through most of the 1990s and 2000s, plagued by seemingly continuous labor strife, poor management, and a bloated cost structure. The airline followed Delta into bankruptcy in 2002 and expanded its footprint by combining with Continental Airlines in 2010. But the airline, despite its massive U.S. network and unrivaled connections to Europe and Asia, continued to have a reputation as an underperformer. That has changed in recent years under the leadership of CEO Oscar Munoz, who joined in 2015. United has slowly been catching up to Delta in terms of profitability and earnings power, in part by modernizing its scheduling and pricing strategies to better pursue the dual goal of attracting leisure travelers and higher-margin business traffic. The airline's hub in San Francisco, the international gateway for Silicon Valley, has been a feather in its cap in recent years and has helped drive business travel growth. It also has a hub in Houston that does well when oil prices are climbing. Two questions that United investors now need to consider are how much of this turnaround in recent years was simply Munoz taking advantage of low-hanging fruit at an underperforming enterprise and how much of it is sustainable. The guess here is that the recent performance was a combination of both. United is much healthier than it has been at almost any time in the last three decades, and its operations are strong enough to power through the lows of the business cycle and generate strong profits at the highs. But the airline seems like a long shot to match or surpass industry leader Delta any time soon. United is part of the international Star Alliance along with foreign partners, including Lufthansa, Air Canada, and Japan's All Nippon Airways. Star is the largest of the three major global alliances in terms of passenger counts, serving about 762 million passengers annually. 4. American Airlines: A work in progress American is one of the oldest names in U.S. aviation history, but the airline that operates under that brand today is very different than the airline that once dominated the skies. American Airlines didn't file for bankruptcy until 2011, and by the time it did, the company had bloated costs and a crippled balance sheet due to multiple years of losses. The airline was acquired out of bankruptcy by the much smaller US Airways, which itself had been acquired by discounter America West years earlier. Doug Parker -- who, as CEO of America West in the early 2000s, engineered first his company's merger with US Air and then later the bid to buy American Airlines out of bankruptcy -- remains at the helm of the company today. An American Airlines 737 in flight. Image source: American Airlines. American has flown through a lot of turbulence since that merger, in part due to the complexity of combining seniority lists and union contracts among three sets of pilots, mechanics, and flight attendants. The airline also took on a lot of debt as part of the merger process. In recent years, American has also been dinged by Boeing's 737 MAX issues as well as continued labor issues. A common criticism of American in recent years is that the airline still operates with a discounter mentality, failing to follow rivals Delta and United in upgrading its in-flight experience and amenities and therefore falling behind in the global battle for business accounts. American also has a much higher debt load than its rivals. It's an issue the company is working to address that, for the time being, makes it potentially more vulnerable should the U.S. economy fall into a recession. American is a member of the OneWorld international alliance along with foreign partners British Airways parent International Consolidated Airlines Group, Japan Airlines, and Qantas Airways. 5. Alaska Air: Regaining altitude For years, Alaska Air Group carved out a profitable niche serving the Pacific Northwest and north/south California traffic, doing well in part by nurturing relationships with multiple larger airlines willing to feed Alaska customers to deliver to local markets. That both provided Alaska a steady stream of business and kept competition in its core markets to a minimum. That model came under pressure as larger airlines consolidated and began to claim more turf for themselves, with one-time close partner Delta, for example, opening a hub at Alaska's Seattle base and increasing flights in the region. Alaska responded in 2016 by bulking up itself and acquiring Virgin America airlines. The deal was expensive -- Alaska had to outbid JetBlue Airways for the prize -- and saddled the company with $2 billion in debt and a difficult integration. It took a few years, but Alaska appears to have finally gotten over the hump of integrating the Virgin America deal and is ready to soar again. Of late, the company has been rethinking the national ambitions it carried after the acquisition and is returning to its West Coast roots, shifting capacity by abandoning some of its underperforming transcontinental routes and adding it to secondary regional airports like Redmond, Oregon, Everett, Washington, and San Luis Obispo, California. The idea is to focus on flights that have a substantial customer base on both sides of the route at the expense of flights to places where it has little exposure or brand loyalty to help sell tickets. As part of the process, Alaska is also rolling out a fare system to rival those of Delta and the other large airlines. Alaska investors did very well in years past by sticking with an airline that served its home region well and commanded loyalty -- and pricing power -- from its local customers. The new Alaska Air is larger and more complex, and some of its erstwhile partners are now competitors in its home region, but the airline looks well on its way to once again becoming an outperformer. 6. JetBlue: Ready for a second act JetBlue Airways was an overnight success when the airline debuted in 2000, using crisp, hip branding, a premium cabin experience at an affordable price, and the reach of the local media at its New York hub to quickly build a loyal following. The novelty eventually faded, and some of JetBlue's signature perks were borrowed by competitors, leaving JetBlue floundering. Today's JetBlue is well into the company's second act, and the initial results are encouraging. In 2016, the airline began a campaign to cut costs by upward of $300 million annually, including by better automating maintenance and crew scheduling to gain efficiencies, and has revamped its route network to focus on markets in which it was generating higher revenue. A JetBlue Airbus following a landing. Image source: JetBlue Airways. JetBlue's Mint product, a rework of an airline's traditional first-class offering lie-flat seats and added perks on transcontinental and Caribbean flights, is a hit with customers. The airline is also in the process of rolling out a no-frills basic economy ticket class aimed at price-sensitive flyers, following the industry trend of trying to cater to bargain hunters and get added revenue from those who are willing to pay for amenities. The airline is also looking to increase its international presence, teaming up with Norwegian Air Shuttle to offer its customers access to Europe and provide Norwegian passengers a connection to U.S. markets Norwegian doesn't serve on its own. JetBlue also has announced its intention to start flying to London from New York and Boston using its own planes in 2021, creating new opportunities but also considerable new risks. It's more expensive to fly internationally, and JetBlue, in heading to London, is taking on numerous entrenched competitors as well as encroaching on Norwegian turf. It is going to be difficult for JetBlue to regain the industry-darling status -- and premium stock multiple -- it enjoyed soon after its inception. But the company in its modern-day form is a solid operator and a reputable competitor, with the added optionality of being one of the few reasonable acquisition targets flying in the U.S. if consolidation in the industry resumes. 7. SkyWest: Airline for hire SkyWest is the biggest airline you've never heard of. While most of the airlines on this list spend billions annually to get their names and brands out in front of the flying public, SkyWest operates outside of the limelight by doing business under brand names like United Express, Delta Connection, and American Eagle. SkyWest has a fleet of more than 475 small to mid-sized planes carrying more than 40 million passengers to more than 250 destinations under contract with bigger partners. As part of those contract agreements, the larger airlines cover marketing, ticketing, and other expenses for SkyWest in return for a fixed fee for flying. The arrangement minimizes the risk for SkyWest but also limits its upside. Unions representing employees at the larger airline partners that SkyWest works with have clauses in their contracts limiting the size of the airplanes regional operators like SkyWest can fly as well as limiting the number of planes and the number of service airlines that Delta and United are allowed to farm out to third parties. In years past, the regional portion of the aviation business was fraught with bankruptcies and failures. Larger partners would pit regional operators against each other and create a race to the bottom that would zap profitability. A wave of consolidations and failures has taken away much of that excess capacity, and SkyWest (as the largest and most stable regional) now has some pricing power because of a lack of other viable options and SkyWest's reputation for being a stable and reliable partner. But investors should understand that, in the event of a prolonged downturn or financial distress at a major airline, it is the regional partners (not internal staff) that usually are targeted for the first cuts. 8. Spirit Airlines: The new wave of discounter Spirit Airlines takes "no frills" to the extreme, introducing in the U.S. the "ultra-low-cost carrier" (ULCC) model that was first made popular in Europe. The airline is the leader of a second generation of rule breakers to enter the industry since the late-1970s deregulation. Decades ago, Southwest Airlines proved you can be successful by cherry-picking routes and simplifying the product that an airline offers to its passengers. Spirit and other ULCCs have taken that model a step further, offering dirt-cheap fares and then charging customers for add-ons that were once seen as a part of the standard fare, including choosing a seat ahead of time, bringing carry-on luggage aboard, and receiving snacks and drinks. It's a business plan that tends to make Spirit the target of a lot of jokes and customer complaints, but the model works (despite the griping). The fare structure has caught on with the subset of travelers who want affordable tickets and have no real need for add-ons. Spirit has also carved out a niche with business travelers needing last-minute passage at an affordable price. A Spirit A-319 coming in for a landing. Image source: Spirit Airlines. Spirit had been one of the industry's best growth stories in recent years until some 2019 stumbles. These included runway construction holdups at its Fort Lauderdale, Florida, hub and self-inflicted wounds like the airline's failure to put enough flexibility in its schedule to account for storm delays and other operational hiccups. Airline management claims to have learned its lesson from those issues, and results seem to back them up. But this remains a higher-risk, higher-reward growth story that's still prone to volatility. Spirit is regarded as a "spill" carrier, an industry term that implies it is only able to fill its seats after competitors have sold out. But the airline's load factor, a measure of seats sold, has improved as it has grown and now consistently comes in above 84% occupancy. The airline remains in growth mode. In late 2019, it announced an order for at least 100 additional aircraft. Those plans could come under pressure should the U.S. economy hit the skids. But so far in its history, Spirit has shown it has the flexibility to adjust to conditions and profit over time. 9. Allegiant Travel: More than just an airline Allegiant Travel has always marched to the beat of its own drummer, spending most of its history flying older, more-affordable-to-acquire aircraft between second-tier airports that cater mostly to sun-seeking vacation travelers. For example, the airline flew from Grand Rapids, Michigan, to St. Petersburg, Florida, bypassing busier and more expensive airports in Detroit and Tampa. The airline has modernized in recent years, transitioning to a fleet of newer, more fuel-efficient Airbus planes and entering tier-one markets like Ft. Lauderdale, New Orleans, and Los Angeles. But the airline has also continued to chart a unique path, launching a chain of family entertainment centers and investing $250 million to construct a luxurious resort on Florida's Gulf Coast. Allegiant's new Airbus jet. Image source: Allegiant Travel. Allegiant sees itself more as a diversified leisure company than simply a provider of transit to your destination. The company is wagering that it can use its customer data and loyalty programs to cross-sell family fun activities at home and while on vacation. With its all-new Sunseeker Resort, it hopes to generate revenue from becoming the actual vacation destination. The jury is still out on the broader ambitions, but it is hard to argue against Allegiant's performance as an airline. Expenses have been pushed higher due to training and other costs related to the transition to an Airbus fleet, but Allegiant consistently puts up some of the top performance metrics in the industry. Skeptics will argue that the nonairline businesses will eat into Allegiant's airline returns, and it is worth noting that tourism-focused carriers like Allegiant tend to perform worse than peers during an economic slowdown, but Allegiant has a track record that suggests this underdog should not be underestimated. 10. Hawaiian Holdings: A connection to paradise Hawaiian Holdings, as its name suggests, has carved out a profitable niche by providing fliers access to a paradise-like setting and, importantly, providing Hawaii residents and visitors mobility throughout the state via its island-hopper service. The airline connects its home state to the U.S. mainland and destinations throughout Asia and the South Pacific. Hawaii is an attractive destination and gets enough business to justify having its own airline. Alas, that demand also attracts significant competition. Hawaiian has always battled full-service airlines like United. Lately, it has faced new competitive pressure as discounter Southwest Airlines has introduced service there and has targeted Hawaii as one of its principal focuses for growth. Overall, Hawaiian execs expect competitive capacity to grow by 9% in 2019 alone, which will put pressure on airline margins. Hawaiian's plan to counter that competition is to look to its west and south. The airline already has tapped into Japan's seemingly insatiable demand for Hawaiian vacations by offering service to that market. It also flies to Australia, New Zealand, American Samoa, and Tahiti, where competition is less intense. Hawaiian also plans to buy a fleet of fuel-efficient Boeing 787 Dreamliners with deliveries starting in 2021 to help it expand its Trans-Pacific network and operate more efficiently. The airline in 2019 was dealt a blow when U.S. regulators blocked its application for antitrust immunity for a planned joint venture with Japan Airlines (JAL). The immunity, if granted, would have given Hawaiian and JAL the freedom to coordinate on schedules and fares and to pool revenues and resources, making the combined joint venture a competitive powerhouse in the Pacific. Hawaiian has a strong franchise and should be able to manage through the competitive onslaught, but the company remains reliant on a vibrant economy that creates robust tourism demand. The current focus on the islands by Southwest and other competitors risks limiting Hawaiian's ability to cash in during a period of strong demand. A final word on airline stocks Over time, airline stocks tend to move together, influenced by macroeconomic factors like the price of oil, the overall health of the economy, and travel demand that are largely outside an individual company's control. For that reason, there can be periods in which investors are better off ignoring the sector instead of investing new money in any carrier and periods coming out of a recession in which both top performers and second-tier players tend to outperform the market. Investors interested in airlines should pay attention to where we are in the cycle and how that could impact the industry. Once you've determined the time is right to buy in, a number of factors can differentiate airlines and determine which are the best buys. The U.S. industry is much healthier now than it has been in years past, and there is much less bankruptcy risk than in previous decades. Airlines, for the first time in a generation, are suitable candidates for a buy-and-hold investor. Just understand there can be turbulence before boarding. 10 stocks we like better than Southwest Airlines When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Southwest Airlines wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of June 1, 2019 Lou Whiteman owns shares of Berkshire Hathaway (B shares), Delta Air Lines, and Spirit Airlines. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Hawaiian Holdings, and JetBlue Airways and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short January 2020 $220 calls on Berkshire Hathaway (B shares). 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.
A common criticism of American in recent years is that the airline still operates with a discounter mentality, failing to follow rivals Delta and United in upgrading its in-flight experience and amenities and therefore falling behind in the global battle for business accounts. Of late, the company has been rethinking the national ambitions it carried after the acquisition and is returning to its West Coast roots, shifting capacity by abandoning some of its underperforming transcontinental routes and adding it to secondary regional airports like Redmond, Oregon, Everett, Washington, and San Luis Obispo, California. In 2016, the airline began a campaign to cut costs by upward of $300 million annually, including by better automating maintenance and crew scheduling to gain efficiencies, and has revamped its route network to focus on markets in which it was generating higher revenue.
Here's a list of the 10 largest U.S. airline companies based on market capitalization (the total company shares multiplied by the stock's current market price): Data source: Yahoo! The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, Southwest Airlines, and Spirit Airlines. The Motley Fool recommends Alaska Air Group, Hawaiian Holdings, and JetBlue Airways and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short January 2020 $220 calls on Berkshire Hathaway (B shares).
American Airlines: A work in progress American is one of the oldest names in U.S. aviation history, but the airline that operates under that brand today is very different than the airline that once dominated the skies. Unions representing employees at the larger airline partners that SkyWest works with have clauses in their contracts limiting the size of the airplanes regional operators like SkyWest can fly as well as limiting the number of planes and the number of service airlines that Delta and United are allowed to farm out to third parties. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares), Delta Air Lines, Southwest Airlines, and Spirit Airlines.
A Delta A-321. An American Airlines 737 in flight. Spirit had been one of the industry's best growth stories in recent years until some 2019 stumbles.
6295.0
2019-12-06 00:00:00 UTC
Why United Airlines Is Likely To See Very Little Revenue Growth In 2020?
AAL
https://www.nasdaq.com/articles/why-united-airlines-is-likely-to-see-very-little-revenue-growth-in-2020-2019-12-06
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United Airlines (NASDAQ: UAL) is one of the largest passenger airlines in the world and operates an extensive domestic and international network which spans across the Americas, Europe, Asia-Pacific, Africa, the Middle East, the Caribbean, and Australia. Trefis highlights trends in United Airlines’ Revenues over recent years along with our forecast for full-year 2019 and 2020 in an interactive dashboard. We expect the company to generate $44.4 billion in total revenues for 2020 – representing a growth of just 2% over the figure for 2019 due to weak passenger as well as cargo demand. A Quick Look at United Airlines’ Revenues United Airlines’ reported $42 billion in Total Operating Revenues for full-year 2018. This includes three revenue streams: Passenger Revenue: $38 billion in FY2018 (91% of Total Operating Revenue). It represents income from the sale of air tickets and other ancillary offerings for the company’s mainline and affiliate carriers. If a ticket is sold and travel is yet to happen, the company recognizes income from such tickets as air traffic liability. Due to the complex structure of ticket pricing, cancellation and rescheduling, a certain portion of the liability is recognized as passenger revenues based on recognized historical patterns. Cargo: $1.3 billion in FY2018 (3% of Total Operating Revenue). It represents income freight and mail services. Other Revenue: $2.4 billion in FY2018 (6% of Total Operating Revenue). It comprises of the sale of loyalty points to credit card companies. United Airlines’ Total Revenues have grown at a CAGR of 6.3% from $36 billion in 2016 to $41 billion in 2018, and is expected to grow at a slower pace in the next 2 years Air ticket sales are the major contributor to United Airlines’ revenues, which is driven by available seat miles, the passenger yield, and occupancy levels. Passenger division is expected to remain the sole driver of United Airlines’ revenues for the next two years and is expected to add $2.8 billion to our total revenue forecast for 2020. Revenue increases would primarily be driven by growing passenger yield, which represents the average amount a person pays to fly one mile. Cargo revenues have observed declines in 2019, primarily due to weaker transportation demand. The ongoing trade war between the U.S. and China has also weighed on the company’s freight business. As the developments around the trade deal unfold, we expect the company’s cargo division to continue to face headwinds in 2020. United Airlines’ Other Revenues, which primarily comprises of the sale of loyalty points to credit card companies, should grow at a similar rate as the passenger division. Notably, we expect United Airlines’ top line to grow at a notably slower rate compared to peers Delta Airlines and Southwest Airlines. Additional details about our forecast for Delta Airlines’ and Southwest Airlines’ Revenues for 2019 and 2020 are available in our interactive dashboard. What’s behind Trefis? See How it’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams More Trefis Data Like our charts? Explore example interactive dashboards and create your own The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
We expect the company to generate $44.4 billion in total revenues for 2020 – representing a growth of just 2% over the figure for 2019 due to weak passenger as well as cargo demand. Revenue increases would primarily be driven by growing passenger yield, which represents the average amount a person pays to fly one mile. United Airlines’ Other Revenues, which primarily comprises of the sale of loyalty points to credit card companies, should grow at a similar rate as the passenger division.
A Quick Look at United Airlines’ Revenues United Airlines’ reported $42 billion in Total Operating Revenues for full-year 2018. United Airlines’ Other Revenues, which primarily comprises of the sale of loyalty points to credit card companies, should grow at a similar rate as the passenger division. Notably, we expect United Airlines’ top line to grow at a notably slower rate compared to peers Delta Airlines and Southwest Airlines.
A Quick Look at United Airlines’ Revenues United Airlines’ reported $42 billion in Total Operating Revenues for full-year 2018. United Airlines’ Total Revenues have grown at a CAGR of 6.3% from $36 billion in 2016 to $41 billion in 2018, and is expected to grow at a slower pace in the next 2 years Air ticket sales are the major contributor to United Airlines’ revenues, which is driven by available seat miles, the passenger yield, and occupancy levels. Passenger division is expected to remain the sole driver of United Airlines’ revenues for the next two years and is expected to add $2.8 billion to our total revenue forecast for 2020.
A Quick Look at United Airlines’ Revenues United Airlines’ reported $42 billion in Total Operating Revenues for full-year 2018. United Airlines’ Total Revenues have grown at a CAGR of 6.3% from $36 billion in 2016 to $41 billion in 2018, and is expected to grow at a slower pace in the next 2 years Air ticket sales are the major contributor to United Airlines’ revenues, which is driven by available seat miles, the passenger yield, and occupancy levels. Passenger division is expected to remain the sole driver of United Airlines’ revenues for the next two years and is expected to add $2.8 billion to our total revenue forecast for 2020.
6296.0
2019-12-03 00:00:00 UTC
Notable Tuesday Option Activity: HAL, AAL, MLM
AAL
https://www.nasdaq.com/articles/notable-tuesday-option-activity%3A-hal-aal-mlm-2019-12-03
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Halliburton Company (Symbol: HAL), where a total volume of 44,946 contracts has been traded thus far today, a contract volume which is representative of approximately 4.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 47.3% of HAL's average daily trading volume over the past month, of 9.5 million shares. Especially high volume was seen for the $22 strike call option expiring February 21, 2020, with 13,980 contracts trading so far today, representing approximately 1.4 million underlying shares of HAL. Below is a chart showing HAL's trailing twelve month trading history, with the $22 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 26,396 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 46.4% of AAL's average daily trading volume over the past month, of 5.7 million shares. Especially high volume was seen for the $23 strike put option expiring January 15, 2021, with 2,185 contracts trading so far today, representing approximately 218,500 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $23 strike highlighted in orange: And Martin Marietta Materials, Inc. (Symbol: MLM) saw options trading volume of 2,855 contracts, representing approximately 285,500 underlying shares or approximately 44.7% of MLM's average daily trading volume over the past month, of 638,420 shares. Especially high volume was seen for the $250 strike put option expiring January 17, 2020, with 700 contracts trading so far today, representing approximately 70,000 underlying shares of MLM. Below is a chart showing MLM's trailing twelve month trading history, with the $250 strike highlighted in orange: For the various different available expirations for HAL options, AAL options, or MLM 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.
Especially high volume was seen for the $23 strike put option expiring January 15, 2021, with 2,185 contracts trading so far today, representing approximately 218,500 underlying shares of AAL. Below is a chart showing HAL's trailing twelve month trading history, with the $22 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 26,396 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 46.4% of AAL's average daily trading volume over the past month, of 5.7 million shares.
Especially high volume was seen for the $23 strike put option expiring January 15, 2021, with 2,185 contracts trading so far today, representing approximately 218,500 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $23 strike highlighted in orange: And Martin Marietta Materials, Inc. (Symbol: MLM) saw options trading volume of 2,855 contracts, representing approximately 285,500 underlying shares or approximately 44.7% of MLM's average daily trading volume over the past month, of 638,420 shares. Below is a chart showing HAL's trailing twelve month trading history, with the $22 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 26,396 contracts thus far today.
Below is a chart showing AAL's trailing twelve month trading history, with the $23 strike highlighted in orange: And Martin Marietta Materials, Inc. (Symbol: MLM) saw options trading volume of 2,855 contracts, representing approximately 285,500 underlying shares or approximately 44.7% of MLM's average daily trading volume over the past month, of 638,420 shares. Below is a chart showing HAL's trailing twelve month trading history, with the $22 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 26,396 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 46.4% of AAL's average daily trading volume over the past month, of 5.7 million shares.
Especially high volume was seen for the $23 strike put option expiring January 15, 2021, with 2,185 contracts trading so far today, representing approximately 218,500 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $23 strike highlighted in orange: And Martin Marietta Materials, Inc. (Symbol: MLM) saw options trading volume of 2,855 contracts, representing approximately 285,500 underlying shares or approximately 44.7% of MLM's average daily trading volume over the past month, of 638,420 shares. Below is a chart showing HAL's trailing twelve month trading history, with the $22 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 26,396 contracts thus far today.
6297.0
2019-11-26 00:00:00 UTC
Here's How Much Warren Buffett Has Lost on American Airlines
AAL
https://www.nasdaq.com/articles/heres-how-much-warren-buffett-has-lost-on-american-airlines-2019-11-26
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Warren Buffett for years advised against buying airline stocks, warning the industry had an "insatiable" demand for capital that required investors to pour money "into a bottomless pit." But all of that changed in the second half of 2016, when Buffett's Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) began buying a basket of U.S. airline stocks including shares of American Airlines (NASDAQ: AAL). Buffett explained his change of heart to CNBC in February 2017. Airlines indeed had had "a bad first century," he said, comparing the industry to the until-recently feckless Chicago Cubs baseball team. But he said that while it remains "a very tough business" due to the high fixed cost of buying airplanes, he believes a round of bankruptcies and consolidation has created an industry that can better match up supply with demand and generate sustained profitability. Image source: American Airlines. So how has the investment in American Airlines paid off for the Oracle of Omaha? Here's a look at Berkshire Hathaway's returns so far. By the numbers First, some caveats. Berkshire Hathaway doesn't tell us the exact day and price it bought its shares, but the company does file quarterly statements with regulators disclosing its holdings, giving us a rough idea of when shares were bought and sold. The price paid is far less clear, but we can get a general idea by using American's average share price during the quarter. These are back-of-the-envelope calculations that should be in range but are not meant to be precise. Berkshire Hathaway first bought into American in the third quarter of 2016 and continued to build its position in the two quarters that followed. The company trimmed its position slightly in late 2017 and then again in 2018. As of Sept. 30 of this year, Berkshire Hathaway owns 43.7 million shares of American worth about $1.22 billion as of the company's Nov. 21 closing share price. Sources: Securities and Exchange Commission forms 13F, Yahoo! Finance. Berkshire Hathaway spent a total of about $1.656 billion to build its position over three quarters and recouped about $225 million of that investment in subsequent sales. Still, to date, Berkshire and Warren Buffett are down about $211 million on the American Airlines investment. What to make of the selling? Some retail investors like to follow Warren Buffett in and out of stocks, but in the case of American, the stock sales aren't a reason to run for the exits. In an August 2018 statement, Berkshire Hathaway noted that some sales were attempts to keep its ownership below 10% of a company's shares outstanding and "did not reflect our investment management's view as to the relative attractiveness" of the securities. As of Sept. 30, Berkshire Hathaway owned about 9.49% of American's shares outstanding and likely had to sell down its stake to keep pace with American's share buybacks and keep its holding below 10%. That said, when Berkshire Hathaway ran up against a similar ceiling at American rival Delta Air Lines, Buffett decided to blow through the 10% threshold and increase his holdings to a current 10.96%. So perhaps the decision to sell does reflect his view of the relative attractiveness of the two airline stocks. What's next for American Airlines? American Airlines has been the clear laggard among the four airline stocks Berkshire Hathaway bought beginning in the second half of 2016. American is among the carriers most impacted by the grounding of Boeing's 737 MAX, and it also faces labor unrest. American also has the highest debt burden among major airlines, which could make it more vulnerable should the U.S. fall into a recession. Airline stock performance since Berkshire bought in data by YCharts. But not all is lost for American. Management is in the early stages of revamping the airline's route network and pricing to increase profitability, attempting to focus on markets in which it is able to generate higher returns. Delta pioneered ticket pricing strategies that have helped it to both better compete with discounters for bargain hunters and still extract extra revenue from less price-sensitive travelers. American should see benefits as it implements similar changes. After a period of spending on fleet renewal, the airline expects capital expenditures to come down dramatically over the next few years, which will free up cash to attack its debt. American Airlines is not currently on my list of best airline stocks to buy, but the company has the wherewithal to power through current headwinds and slowly gain altitude. Warren Buffett and Berkshire are down on their investment in American so far, but there is still plenty of opportunity for a patient investor like Buffett to come out ahead. 10 stocks we like better than American Airlines Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of June 1, 2019 Lou Whiteman owns shares of Berkshire Hathaway (B shares) and Delta Air Lines. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and Delta Air Lines and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short January 2020 $220 calls on Berkshire Hathaway (B shares). 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.
But all of that changed in the second half of 2016, when Buffett's Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) began buying a basket of U.S. airline stocks including shares of American Airlines (NASDAQ: AAL). Warren Buffett for years advised against buying airline stocks, warning the industry had an "insatiable" demand for capital that required investors to pour money "into a bottomless pit." But he said that while it remains "a very tough business" due to the high fixed cost of buying airplanes, he believes a round of bankruptcies and consolidation has created an industry that can better match up supply with demand and generate sustained profitability.
But all of that changed in the second half of 2016, when Buffett's Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) began buying a basket of U.S. airline stocks including shares of American Airlines (NASDAQ: AAL). As of Sept. 30 of this year, Berkshire Hathaway owns 43.7 million shares of American worth about $1.22 billion as of the company's Nov. 21 closing share price. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and Delta Air Lines and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short January 2020 $220 calls on Berkshire Hathaway (B shares).
But all of that changed in the second half of 2016, when Buffett's Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) began buying a basket of U.S. airline stocks including shares of American Airlines (NASDAQ: AAL). American Airlines has been the clear laggard among the four airline stocks Berkshire Hathaway bought beginning in the second half of 2016. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and Delta Air Lines and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short January 2020 $220 calls on Berkshire Hathaway (B shares).
But all of that changed in the second half of 2016, when Buffett's Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) began buying a basket of U.S. airline stocks including shares of American Airlines (NASDAQ: AAL). Warren Buffett for years advised against buying airline stocks, warning the industry had an "insatiable" demand for capital that required investors to pour money "into a bottomless pit." What's next for American Airlines?
6298.0
2019-11-25 00:00:00 UTC
Noteworthy Monday Option Activity: PII, WDC, AAL
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https://www.nasdaq.com/articles/noteworthy-monday-option-activity%3A-pii-wdc-aal-2019-11-25
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Polaris Inc (Symbol: PII), where a total of 2,535 contracts have traded so far, representing approximately 253,500 underlying shares. That amounts to about 49.4% of PII's average daily trading volume over the past month of 512,920 shares. Especially high volume was seen for the $105 strike call option expiring January 17, 2020, with 1,400 contracts trading so far today, representing approximately 140,000 underlying shares of PII. Below is a chart showing PII's trailing twelve month trading history, with the $105 strike highlighted in orange: Western Digital Corp (Symbol: WDC) options are showing a volume of 30,093 contracts thus far today. That number of contracts represents approximately 3.0 million underlying shares, working out to a sizeable 48.6% of WDC's average daily trading volume over the past month, of 6.2 million shares. Particularly high volume was seen for the $62.50 strike call option expiring January 17, 2020, with 8,483 contracts trading so far today, representing approximately 848,300 underlying shares of WDC. Below is a chart showing WDC's trailing twelve month trading history, with the $62.50 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 31,821 contracts, representing approximately 3.2 million underlying shares or approximately 47.5% of AAL's average daily trading volume over the past month, of 6.7 million shares. Especially high volume was seen for the $25 strike call option expiring December 20, 2019, with 4,000 contracts trading so far today, representing approximately 400,000 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $25 strike highlighted in orange: For the various different available expirations for PII options, WDC 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.
Especially high volume was seen for the $25 strike call option expiring December 20, 2019, with 4,000 contracts trading so far today, representing approximately 400,000 underlying shares of AAL. Below is a chart showing WDC's trailing twelve month trading history, with the $62.50 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 31,821 contracts, representing approximately 3.2 million underlying shares or approximately 47.5% of AAL's average daily trading volume over the past month, of 6.7 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $25 strike highlighted in orange: For the various different available expirations for PII options, WDC options, or AAL options, visit StockOptionsChannel.com.
Below is a chart showing WDC's trailing twelve month trading history, with the $62.50 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 31,821 contracts, representing approximately 3.2 million underlying shares or approximately 47.5% of AAL's average daily trading volume over the past month, of 6.7 million shares. Especially high volume was seen for the $25 strike call option expiring December 20, 2019, with 4,000 contracts trading so far today, representing approximately 400,000 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $25 strike highlighted in orange: For the various different available expirations for PII options, WDC options, or AAL options, visit StockOptionsChannel.com.
Below is a chart showing WDC's trailing twelve month trading history, with the $62.50 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 31,821 contracts, representing approximately 3.2 million underlying shares or approximately 47.5% of AAL's average daily trading volume over the past month, of 6.7 million shares. Especially high volume was seen for the $25 strike call option expiring December 20, 2019, with 4,000 contracts trading so far today, representing approximately 400,000 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $25 strike highlighted in orange: For the various different available expirations for PII options, WDC options, or AAL options, visit StockOptionsChannel.com.
Below is a chart showing WDC's trailing twelve month trading history, with the $62.50 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 31,821 contracts, representing approximately 3.2 million underlying shares or approximately 47.5% of AAL's average daily trading volume over the past month, of 6.7 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $25 strike highlighted in orange: For the various different available expirations for PII options, WDC options, or AAL options, visit StockOptionsChannel.com. Especially high volume was seen for the $25 strike call option expiring December 20, 2019, with 4,000 contracts trading so far today, representing approximately 400,000 underlying shares of AAL.
6299.0
2019-11-22 00:00:00 UTC
Nasdaq 100 Movers: TSLA, NTES
AAL
https://www.nasdaq.com/articles/nasdaq-100-movers%3A-tsla-ntes-2019-11-22
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In early trading on Friday, shares of NetEase, topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.9%. Year to date, NetEase, registers a 31.2% gain. And the worst performing Nasdaq 100 component thus far on the day is Tesla, trading down 6.1%. Tesla is showing a gain of 0.1% looking at the year to date performance. Two other components making moves today are Intuit, trading down 3.4%, and American Airlines Group, trading up 1.9% on the day. VIDEO: Nasdaq 100 Movers: TSLA, NTES The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
And the worst performing Nasdaq 100 component thus far on the day is Tesla, trading down 6.1%. Tesla is showing a gain of 0.1% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: TSLA, NTES 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 Friday, shares of NetEase, topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.9%. Year to date, NetEase, registers a 31.2% gain. And the worst performing Nasdaq 100 component thus far on the day is Tesla, trading down 6.1%.
In early trading on Friday, shares of NetEase, topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.9%. And the worst performing Nasdaq 100 component thus far on the day is Tesla, trading down 6.1%. Two other components making moves today are Intuit, trading down 3.4%, and American Airlines Group, trading up 1.9% on the day.
And the worst performing Nasdaq 100 component thus far on the day is Tesla, trading down 6.1%. Tesla is showing a gain of 0.1% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: TSLA, NTES The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.