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7000.0
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2018-07-11 00:00:00 UTC
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Nasdaq 100 Movers: AAL, FAST
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-aal-fast-2018-07-11
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nan
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nan
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In early trading on Wednesday, shares of Fastenal ( FAST ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 5.3%. Year to date, Fastenal has lost about 4.7% of its value.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 5.5%. American Airlines Group is lower by about 28.9% looking at the year to date performance.
Two other components making moves today are Twenty-First Century Fox ( FOX ), trading down 2.6%, and Check Point Software Technologies ( CHKP ), trading up 2.5% on the day.
VIDEO: Nasdaq 100 Movers: AAL, FAST
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 5.5%. VIDEO: Nasdaq 100 Movers: AAL, FAST 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 28.9% looking at the year to date performance.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 5.5%. VIDEO: Nasdaq 100 Movers: AAL, FAST The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 5.5%. VIDEO: Nasdaq 100 Movers: AAL, FAST 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 Fastenal ( FAST ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 5.3%.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 5.5%. VIDEO: Nasdaq 100 Movers: AAL, FAST 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 Fastenal ( FAST ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 5.3%.
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7001.0
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2018-07-11 00:00:00 UTC
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Why American Airlines, Idera Pharmaceuticals, and RH Holdings Slumped Today
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-idera-pharmaceuticals-and-rh-holdings-slumped-today-2018-07-11
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nan
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nan
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Major market benchmarks declined on Wednesday after President Trump threatened to impose another $200 billion in tariffs on imported Chinese products, shifting investors' focus away from the start of corporate earnings season.
But several individual stocks fared much worse than most, among them American Airlines (NASDAQ: AAL) , Idera Pharmaceuticals (NASDAQ: IDRA) , and RH (NYSE: RH) .
American Airlines hits turbulence
Shares of American Airlines fell 8.1% today after the company updated guidance for several key industry metrics.
On one hand, in an SEC filing this morning, American Airlines told investors that total revenue per average seat mile (TRASM) was expected to increase in the range of 1% to 3% year over year, down from its prior outlook for 1.5% to 3.5% growth. The airline also expects average fuel prices for the quarter will land in the $2.24 to $2.29 per gallon range, or roughly $0.06 per gallon higher than previously expected. If that wasn't enough, it said pre-tax income this quarter will be negatively impacted by $35 million due to an IT issue at a regional carrier that resulted in the cancellation of roughly 3,000 flights last month.
On the other hand, American Airlines also says that cost per average seat mile (CASM) will only increase 2.5%, down from an expected 3.5% increase previously. But with the negatives in the filing easily outweighing the positives -- in particular as it pertains to revenue -- it was no surprise the stock fell in response.
Idera Pharmaceuticals' merger is a no-go
Shares of Idera Pharmaceuticals fell 20.4% after the biotech company announced the termination of its planned merger with BioCryst Pharmaceuticals (NASDAQ: BCRX) .
To be fair, we should recall that shares of both companies initially plunged after the merger was announced in January, as industry watchers speculated the combination was being made out of weakness. Motley Fool writer Sean Williams warned at the time that securing shareholder approval for the agreement was "no sure thing."
Sure enough, while a majority of Idera shareholders voted in favor, BioCryst's shareholders simultaneously voted against the plan at their own special stockholder meeting Tuesday. As a result, BioCryst will pay Idera a $6 million termination penalty, and both businesses will move forward as independent entities.
Restoration Hardware's tariff trouble
Finally, shares of Restoration Hardware parent RH fell 4.4% as investors worried the home decor retailer will suffer under the effects of President Trump's plan to escalate the U.S. trade conflict with China. In particular, the aforementioned $200 billion in tariffs he has threatened to impose on Chinese goods would include all furniture imported from the country. And as analysts at Goldman Sachs pointed out in a note to clients Wednesday morning, RH has disclosed that it imports "77% of its dollar volume from Asia, with China constituting the majority of these imports."
This leaves home-goods retailers like RH in a bind. If they simply absorb the cost of the tariffs, it would have a material negative impact on gross margin. But if they attempt to pass their higher costs through to consumers via higher product prices, they risk losing market share and customer interest in an increasingly competitive industry.
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Steve Symington has no position in any of the stocks mentioned. The Motley Fool recommends RH. 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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But several individual stocks fared much worse than most, among them American Airlines (NASDAQ: AAL) , Idera Pharmaceuticals (NASDAQ: IDRA) , and RH (NYSE: RH) . Major market benchmarks declined on Wednesday after President Trump threatened to impose another $200 billion in tariffs on imported Chinese products, shifting investors' focus away from the start of corporate earnings season. If that wasn't enough, it said pre-tax income this quarter will be negatively impacted by $35 million due to an IT issue at a regional carrier that resulted in the cancellation of roughly 3,000 flights last month.
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But several individual stocks fared much worse than most, among them American Airlines (NASDAQ: AAL) , Idera Pharmaceuticals (NASDAQ: IDRA) , and RH (NYSE: RH) . Major market benchmarks declined on Wednesday after President Trump threatened to impose another $200 billion in tariffs on imported Chinese products, shifting investors' focus away from the start of corporate earnings season. On one hand, in an SEC filing this morning, American Airlines told investors that total revenue per average seat mile (TRASM) was expected to increase in the range of 1% to 3% year over year, down from its prior outlook for 1.5% to 3.5% growth.
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But several individual stocks fared much worse than most, among them American Airlines (NASDAQ: AAL) , Idera Pharmaceuticals (NASDAQ: IDRA) , and RH (NYSE: RH) . Idera Pharmaceuticals' merger is a no-go Shares of Idera Pharmaceuticals fell 20.4% after the biotech company announced the termination of its planned merger with BioCryst Pharmaceuticals (NASDAQ: BCRX) . Offer from The Motley Fool: The 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market.
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But several individual stocks fared much worse than most, among them American Airlines (NASDAQ: AAL) , Idera Pharmaceuticals (NASDAQ: IDRA) , and RH (NYSE: RH) . Major market benchmarks declined on Wednesday after President Trump threatened to impose another $200 billion in tariffs on imported Chinese products, shifting investors' focus away from the start of corporate earnings season. Idera Pharmaceuticals' merger is a no-go Shares of Idera Pharmaceuticals fell 20.4% after the biotech company announced the termination of its planned merger with BioCryst Pharmaceuticals (NASDAQ: BCRX) .
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7002.0
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2018-07-11 00:00:00 UTC
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American Airlines Joins the Plastic Straws Ban
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AAL
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https://www.nasdaq.com/articles/american-airlines-joins-plastic-straws-ban-2018-07-11
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
American Airlines (NASDAQ: AAL ) is the next company that is ditching plastic straws.
Source: Shutterstock
American Airlines says that it is no longer going to offer plastic straws on its flights or in its lounges. Instead, the airline company says that it will be making the switch to biodegradable paper straws.
According to American Airlines, it isn't just stopping with a plastic straws ban. The airline will also be removing plastic stir sticks that its offers with beverages on its flights and in its lounges. Replacing these plastic stir sticks will be wood stir sticks. These stir sticks will be made from sustainable and environmentally friendly bamboo.
American Airlines notes that it will start introducing its new biodegradable straws and wooden stir sticks sometime this month. The airline also says that it will be switching to all eco-friendly flatware in its lounges.
"We're very excited and proud to share this initiative with our team members and customers," Jill Surdek, Vice President of Flight Service at American Airlines, said in a statement . "We're cognizant of our impact on the environment and we remain committed to doing our part to sustain the planet for future generations of travelers."
4 Developments That Will Fuel the Mega Marijuana Market
American Airlines is far from the only one banning plastic straws. Several cities already have bans on the products. There are also a couple of countries that are considering a plastic straw ban to cut down on the waste. You can learn more about that at this link .
More From InvestorPlace
20 Red-Hot Tech Stocks to Consider
The ABSOLUTE Best Way to Invest in the Marijuana Boom
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As of this writing, William White did not hold a position in any of the aforementioned securities.
Compare Brokers
The post American Airlines Joins the Plastic Straws Ban 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ: AAL ) is the next company that is ditching plastic straws. American Airlines notes that it will start introducing its new biodegradable straws and wooden stir sticks sometime this month. "We're very excited and proud to share this initiative with our team members and customers," Jill Surdek, Vice President of Flight Service at American Airlines, said in a statement .
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ: AAL ) is the next company that is ditching plastic straws. 4 Developments That Will Fuel the Mega Marijuana Market American Airlines is far from the only one banning plastic straws. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ: AAL ) is the next company that is ditching plastic straws. 4 Developments That Will Fuel the Mega Marijuana Market American Airlines is far from the only one banning plastic straws. Compare Brokers The post American Airlines Joins the Plastic Straws Ban appeared first on InvestorPlace .
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ: AAL ) is the next company that is ditching plastic straws. According to American Airlines, it isn't just stopping with a plastic straws ban. The airline will also be removing plastic stir sticks that its offers with beverages on its flights and in its lounges.
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7003.0
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2018-07-11 00:00:00 UTC
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5 Top Stock Trades for Thursday — Buy Salesforce’s New Highs?
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AAL
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https://www.nasdaq.com/articles/5-top-stock-trades-for-thursday-buy-salesforces-new-highs-2018-07-11
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Despite President Trump hitting back at China - again - with more tariffs, the stock markets weren't under as much pressure as investors would have thought. While the S&P 500 was down about 0.8%, the Nasdaq slipped just 43 basis points on the day. With the shakeup, we paid attention to what was hot, and what was not, for our top stock trades.
Top Stock Trades for Tomorrow #1: Salesforce (CRM)
Look at salesforce.com (NASDAQ: CRM ) go. We don't even need a trend-line on this type of name.
For traders, this has been one of the best stocks. Yes it's expensive and yes it seems destined to fall any day as it continues to run. But investors who have bought on continuous retests of the 50-day and 75-day moving averages, they have made a boatload of money.
CRM could get caught up in a market-wide pullback, but like other cloud names, it's not directly vulnerable to a trade war.
18 Stocks That Could Be Takeover Targets
As CRM breaks out to new highs, it should be on investors' radar. While it could grind higher, perhaps to $150, buying right now is not a great risk/reward. CRM is an excellent dip-buying stock. We have preferred buying at the moving averages , but support could come into play near $135 too. Below $135 and short-term longs may want to lock in some profit and look to buy further down. Long-term bulls don't have to worry though.
Top Stock Trades for Tomorrow #2: Nike (NKE)
Short-term bulls in Nike Inc (NYSE: NKE ) have a solid level to trade against at $76.
This level was previous resistance until Nike reported strong earnings results at the end of June. After a gap up to $80, shares pulled back and found this level as support.
Even amid the market current market decline, NKE stock is holding up strong. A break below could trigger the stop-loss for some investors, while Nike would be a sure-fire buy in the $70 to $72 area.
Top Stock Trades for Tomorrow #3: Digital Realty (DLR)
An excellent REIT candidate, Digital Realty (NYSE: DLR ) is a stock that InvestorPlace readers have had ample warnings to buy .
Now near $116.50 and with an RSI near 80, I wouldn't be a new buyer of DLR today. With its solid yield and great business though, DLR has been in demand.
Investors waiting to buy can wait for DLR to take a rest, while those that are long should be aware of potential resistance near $120. Should Digital Reality not take a rest before challenging this level, it's likely it will remain as resistance.
It would be healthy for DLR to take a rest, giving it the necessary energy to push through $120.
Top Stock Trades for Tomorrow #4: Activision (ATVI)
Shares of Activision Blizzard, Inc. (NASDAQ: ATVI ) initially fell Wednesday, despite announcing a live eSports agreement with Walt Disney Co (NYSE: DIS ). Both stocks are advancing Wednesday.
ATVI stock is now looking for new highs. Should it push through $79, it will find them.
Support down near $74 held up, as did its recent trend-line of support. The stock's series of higher lows bodes well for its move. Even if ATVI stock fails now, it will likely be retesting this level sooner rather than later.
Its momentum-measuring MACD and RSI (blue circles) also bode well for bulls.
Top Stock Trades for Tomorrow #5: American Air (AAL)
One stock that doesn't bode well for the bulls though? American Airlines Group Inc (NASDAQ: AAL ). Shares are down 7.5% Wednesday after providing its second-quarter update. Worth noting is that Southwest Airlines Co (NYSE: LUV ) initially fell on the day, but held right where it needed to. We covered LUV earlier this week .
Regarding AAL, the stock's fall is bad news, as 2018's turbulent patch has led the stock to new 52-week lows on Wednesday.
Trapped in a brutal descending channel, there's no reason to buy quite yet. Near $34 could provide a bounce, and should shares really fall hard, they could make their way down to $30.
7 S&P 500 Stocks With Low P/E Ratios
I know AAL has a low valuation and pays a small dividend (yielding approximately 1%), but right now, at least from the technical side, American Air is downright ugly. I'd rather buy the dip in a winner like CRM than the one in AAL.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell . As of this writing, Bret Kenwell was long CRM.
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More From InvestorPlace
20 Red-Hot Tech Stocks to Consider
The ABSOLUTE Best Way to Invest in the Marijuana Boom
The Best Shot You'll Ever Have at Making 50 TIMES Your Money
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Compare Brokers
The post 5 Top Stock Trades for Thursday - Buy Salesforce's New Highs? 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Top Stock Trades for Tomorrow #5: American Air (AAL) One stock that doesn't bode well for the bulls though? American Airlines Group Inc (NASDAQ: AAL ). Regarding AAL, the stock's fall is bad news, as 2018's turbulent patch has led the stock to new 52-week lows on Wednesday.
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Top Stock Trades for Tomorrow #5: American Air (AAL) One stock that doesn't bode well for the bulls though? American Airlines Group Inc (NASDAQ: AAL ). Regarding AAL, the stock's fall is bad news, as 2018's turbulent patch has led the stock to new 52-week lows on Wednesday.
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Top Stock Trades for Tomorrow #5: American Air (AAL) One stock that doesn't bode well for the bulls though? American Airlines Group Inc (NASDAQ: AAL ). Regarding AAL, the stock's fall is bad news, as 2018's turbulent patch has led the stock to new 52-week lows on Wednesday.
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Top Stock Trades for Tomorrow #5: American Air (AAL) One stock that doesn't bode well for the bulls though? American Airlines Group Inc (NASDAQ: AAL ). Regarding AAL, the stock's fall is bad news, as 2018's turbulent patch has led the stock to new 52-week lows on Wednesday.
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7004.0
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2018-07-11 00:00:00 UTC
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Airline Stock Outlook & Trump's Latest Trade War Jousting | Free Lunch
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AAL
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https://www.nasdaq.com/articles/airline-stock-outlook-trumps-latest-trade-war-jousting-free-lunch-2018-07-11
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nan
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On today's episode of Free Lunch, Associate Stock Strategist Ryan McQueeney touches on the latest trade war jousting after the Trump administration said it was readying new tariffs on $200 billion worth of Chinese goods. Later, he recaps recent news affecting the airline industry and dragging down stocks like American AAL , Delta DAL , and United UAL .
Want more video content from Zacks? Subscribe to Zacks Investment News now!
Free Lunch is the newest show from Zacks Investment Research. It is streamed live, four times per week, and features breaking news and analysis from Zacks strategists. Free Lunch is available on YouTube, Facebook Live, Twitter, Ustream, and more.
The Trump administration surprised global investors this morning by saying that it is preparing to impose tariffs on an additional $200 million worth of Chinese goods. The tariffs would slap 10% charges on a number of products, including produce, furniture, and baseball gloves.
Ryan recaps this new story and explains why the ongoing trade war drama has dragged the Shanghai index into a bear market. He also touches on earnings results from Fastenal FAST and speculates as to whether a great Q2 report season could outweigh trade war fears.
Later, he touches on airline stocks, which fell in early trading Wednesday after American lowered its unit revenue guidance for the second quarter. American is still predicting TRASM growth, but its lowered guidance-and raised estimate for average fuel prices-underscores industry-wide headwinds which have hurt airlines this year.
Ryan checks in with American and discusses its new outlook. He also digs into several key charts from the "Big 3" airlines, as well as the broader industry. Can a strong summer travel season help these stocks rebound? Check out the show to hear what Ryan has to say!
More Stock News: This Is Bigger than the iPhone!
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Fastenal Company (FAST): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Later, he recaps recent news affecting the airline industry and dragging down stocks like American AAL , Delta DAL , and United UAL . Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Fastenal Company (FAST): Free Stock Analysis Report To read this article on Zacks.com click here. On today's episode of Free Lunch, Associate Stock Strategist Ryan McQueeney touches on the latest trade war jousting after the Trump administration said it was readying new tariffs on $200 billion worth of Chinese goods.
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Later, he recaps recent news affecting the airline industry and dragging down stocks like American AAL , Delta DAL , and United UAL . Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Fastenal Company (FAST): Free Stock Analysis Report To read this article on Zacks.com click here. On today's episode of Free Lunch, Associate Stock Strategist Ryan McQueeney touches on the latest trade war jousting after the Trump administration said it was readying new tariffs on $200 billion worth of Chinese goods.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Fastenal Company (FAST): Free Stock Analysis Report To read this article on Zacks.com click here. Later, he recaps recent news affecting the airline industry and dragging down stocks like American AAL , Delta DAL , and United UAL . On today's episode of Free Lunch, Associate Stock Strategist Ryan McQueeney touches on the latest trade war jousting after the Trump administration said it was readying new tariffs on $200 billion worth of Chinese goods.
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Later, he recaps recent news affecting the airline industry and dragging down stocks like American AAL , Delta DAL , and United UAL . Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Fastenal Company (FAST): Free Stock Analysis Report To read this article on Zacks.com click here. On today's episode of Free Lunch, Associate Stock Strategist Ryan McQueeney touches on the latest trade war jousting after the Trump administration said it was readying new tariffs on $200 billion worth of Chinese goods.
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7005.0
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2018-07-11 00:00:00 UTC
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Why American Airlines Group Inc. Stock Was Heading South Today
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-group-inc-stock-was-heading-south-today-2018-07-11
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nan
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What happened
Shares of American Airlines Group Inc. (NASDAQ: AAL) were losing altitude today after the company cut its forecast for a key industry metric, saying in a filing that it expected total revenue per average seat mile, or TRASM, to increase just 1% to 3% in the current quarter, compared to previous guidance of 1.5% to 3.5%.
As a result, the stock was down 6.5% as of 12:25 p.m. EDT.
So what
In the highly competitive airline industry, TRASM is a key performance indicator, and management said that increasing competition in the domestic market had caused prices to come down. The news was also concerning since rising fuel prices are likely to squeeze profits as the company also raised guidance on fuel spending.
Separately, the company said pre-tax income for the second quarter would take a $35 million hit due to an IT problem at regional airline PSA airlines. American also said that cost per average seat mile, or CASM, was only expected to rise 2.5% as opposed to previous guidance of 3.5%, but investors instead focused on the revenue side of the equation.
Now what
The update weighed on airline stocks broadly as the industry tends to move together because airlines are subject to the same macroeconomic and competitive forces. Shares of American approached a two-year low on the news as the company had slashed its guidance in the first-quarter report . We'll learn more when the airline reports earnings later this month, but with rising oil prices and increasing competition, challenges are likely to persist.
10 stocks we like better than American Airlines Group
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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.
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*Stock Advisor returns as of June 4, 2018
Jeremy Bowman 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of American Airlines Group Inc. (NASDAQ: AAL) were losing altitude today after the company cut its forecast for a key industry metric, saying in a filing that it expected total revenue per average seat mile, or TRASM, to increase just 1% to 3% in the current quarter, compared to previous guidance of 1.5% to 3.5%. American also said that cost per average seat mile, or CASM, was only expected to rise 2.5% as opposed to previous guidance of 3.5%, but investors instead focused on the revenue side of the equation. We'll learn more when the airline reports earnings later this month, but with rising oil prices and increasing competition, challenges are likely to persist.
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What happened Shares of American Airlines Group Inc. (NASDAQ: AAL) were losing altitude today after the company cut its forecast for a key industry metric, saying in a filing that it expected total revenue per average seat mile, or TRASM, to increase just 1% to 3% in the current quarter, compared to previous guidance of 1.5% to 3.5%. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of American Airlines Group Inc. (NASDAQ: AAL) were losing altitude today after the company cut its forecast for a key industry metric, saying in a filing that it expected total revenue per average seat mile, or TRASM, to increase just 1% to 3% in the current quarter, compared to previous guidance of 1.5% to 3.5%. Now what The update weighed on airline stocks broadly as the industry tends to move together because airlines are subject to the same macroeconomic and competitive forces. 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.
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What happened Shares of American Airlines Group Inc. (NASDAQ: AAL) were losing altitude today after the company cut its forecast for a key industry metric, saying in a filing that it expected total revenue per average seat mile, or TRASM, to increase just 1% to 3% in the current quarter, compared to previous guidance of 1.5% to 3.5%. So what In the highly competitive airline industry, TRASM is a key performance indicator, and management said that increasing competition in the domestic market had caused prices to come down. We'll learn more when the airline reports earnings later this month, but with rising oil prices and increasing competition, challenges are likely to persist.
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7006.0
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2018-07-11 00:00:00 UTC
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Market Close Report: NASDAQ Composite index closes at 7,716.61 down -42.59 points
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AAL
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https://www.nasdaq.com/articles/market-close-report-nasdaq-composite-index-closes-771661-down-4259-points-2018-07-11
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Wednesday's session closes with the NASDAQ Composite Index at 7,716.61. The total shares traded for the NASDAQ was over 1.79 billion. Declining stocks led advancers by 1.86 to 1 ratio. There were 1047 advancers and 1950 decliners for the day. On the NASDAQ Stock Exchange 33 stocks reached a 52 week high and 32 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
The NASDAQ 100 index closed down -.53% for the day; a total of -38.62 points. The current value is 7,243.98. American Airlines Group, Inc. ( AAL ) had the largest percent change down (-8.08%) while Fastenal Company ( FAST ) had the largest percent change gain rising 10.05%.
The Dow Jones index closed down -.88% for the day; a total of -219.21 points. The current value is 24,700.45. Chevron Corporation ( CVX ) had the largest percent change down (-3.19%) while Walt Disney Company (The) ( DIS ) had the largest percent change gain rising 1.9%.
NASDAQ Market Wrap
As of 7/11/2018 4:44:01 PM
BILLIONS OF 1.79 NASDAQ SHARES TRADED TODAY 33 STOCKS REACHED A 52 WEEK HIGH 32 THOSE REACHING LOWS TOTALEDFastenal Company [FAST]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 10.05 ROSE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-8.08%) while Fastenal Company ( FAST ) had the largest percent change gain rising 10.05%. The Dow Jones index closed down -.88% for the day; a total of -219.21 points. Chevron Corporation ( CVX ) had the largest percent change down (-3.19%) while Walt Disney Company (The) ( DIS ) had the largest percent change gain rising 1.9%.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-8.08%) while Fastenal Company ( FAST ) had the largest percent change gain rising 10.05%. On the NASDAQ Stock Exchange 33 stocks reached a 52 week high and 32 those reaching lows totaled. NASDAQ Market Wrap As of 7/11/2018 4:44:01 PM BILLIONS OF 1.79 NASDAQ SHARES TRADED TODAY 33 STOCKS REACHED A 52 WEEK HIGH 32 THOSE REACHING LOWS TOTALEDFastenal Company [FAST]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 10.05 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-8.08%) while Fastenal Company ( FAST ) had the largest percent change gain rising 10.05%. On the NASDAQ Stock Exchange 33 stocks reached a 52 week high and 32 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-8.08%) while Fastenal Company ( FAST ) had the largest percent change gain rising 10.05%. There were 1047 advancers and 1950 decliners for the day. The NASDAQ 100 index closed down -.53% for the day; a total of -38.62 points.
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7007.0
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2018-07-10 00:00:00 UTC
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Should You Buy Delta (DAL) Stock Ahead of Q2 Earnings?
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AAL
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https://www.nasdaq.com/articles/should-you-buy-delta-dal-stock-ahead-q2-earnings-2018-07-10
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nan
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nan
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Shares of Delta Air Lines DAL have sunk roughly 8% over the last month in a sign that investors might not expect good things from the U.S. airline company's second quarter financial results, especially with fuel costs on the rise. But let's take a look at what they should really expect from Delta on Thursday and see if DAL might be worth buying.
Recent News
Delta announced last week that it flew a record number of passengers during the month of June, noting that it carried 17.7 million customers across its global network, which marked a roughly 3% climb from the year-ago period. Year to date, Delta has boarded a total of 93.3 million passengers, up 2.5%. Meanwhile, the company's revenue passenger miles also climbed 3%.
Closing the quarter on a strong note should be good news for investors. Coupled with the fact that United UAL also reported record-breaking passenger totals last month at 15.2 million, it could signal that airline companies are set for a strong second quarter. But there are concerns that higher fuel costs will hurt the industry's bottom line.
The fear is that Delta, United, American AAL , Southwest LUV , and other airlines won't be able to raise their prices quickly enough to make up for the roughly 55% increase in fuel costs from a year ago.
With that said, Delta reaffirmed its Q2 earnings guidance of $1.65 per share to $1.75 per share last week. "We've made money at fuel prices at $100 and we've made money at $40," Delta CEO Ed Bastian said recently at the National Press Club in Washington. "There's a resiliency and a stability to our business like never before."
So now let's look to see what investors should expect from Delta when it reports its Q2 results before the market opens on Thursday, kicking off a wave airline giant's quarterly earnings releases.
Q2 Outlook
Our current Zacks Consensus Estimates are calling for Delta's quarterly revenues to climb by 8.23% to hit $11.68 billion. Meanwhile, its quarterly earnings are projected to pop by 6.71% to reach $1.75 per share.
Investors should note that DAL's Most Accurate Estimate-the representation of the most recent analyst sentiment-is calling for earnings of $1.76 per share, which is 1 cent above our current consensus estimate.
Delta has also topped earnings estimates in five out of the last six quarters. We judge the price effect of these earnings beats by comparing the closing price of the stock two days before the report and two days after the report, and DAL stock climbed 2.8% last quarter and 7.1% in the fourth quarter following its quarterly earnings release.
Price Movement/ Valuation
Moving on, investors should want to understand how Delta stock has performed. Shares of DAL have climbed 32% over the last two years, just outpacing the S&P 500's climb. However, Delta stock is down 7.3% over the last year and has sunk 14% during the last six months. This is good news for investors if they are considering buying DAL stock since it currently sits roughly $10 below its 52-week high of $60.79 per share, and could easily climb if the company posts strong results or guidance.
Delta's recent performance has helped its valuation picture look a bit more attractive at the moment. DAL is currently trading at 8.1X forward 12-month Zacks Consensus EPS estimates, which marks a significant discount compared to the S&P 500's 17.2X and its industry's average of 9.8X.
Bottom Line
Delta is currently a Zacks Rank #3 (Hold) and sports a "B" grade for Value in our Style Scores system and an overall "A" VGM grade. The company is also expected to see both its top and bottom lines expand at relatively solid rates for a company of its age and size.
DAL has also seen its shares climb directly following its earnings release in the trailing two periods, which means it might be a stock worth considering before the opening bell on Thursday.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The fear is that Delta, United, American AAL , Southwest LUV , and other airlines won't be able to raise their prices quickly enough to make up for the roughly 55% increase in fuel costs from a year ago. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Delta Air Lines DAL have sunk roughly 8% over the last month in a sign that investors might not expect good things from the U.S. airline company's second quarter financial results, especially with fuel costs on the rise.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The fear is that Delta, United, American AAL , Southwest LUV , and other airlines won't be able to raise their prices quickly enough to make up for the roughly 55% increase in fuel costs from a year ago. Q2 Outlook Our current Zacks Consensus Estimates are calling for Delta's quarterly revenues to climb by 8.23% to hit $11.68 billion.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The fear is that Delta, United, American AAL , Southwest LUV , and other airlines won't be able to raise their prices quickly enough to make up for the roughly 55% increase in fuel costs from a year ago. Shares of Delta Air Lines DAL have sunk roughly 8% over the last month in a sign that investors might not expect good things from the U.S. airline company's second quarter financial results, especially with fuel costs on the rise.
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The fear is that Delta, United, American AAL , Southwest LUV , and other airlines won't be able to raise their prices quickly enough to make up for the roughly 55% increase in fuel costs from a year ago. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Delta Air Lines DAL have sunk roughly 8% over the last month in a sign that investors might not expect good things from the U.S. airline company's second quarter financial results, especially with fuel costs on the rise.
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7008.0
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2018-07-10 00:00:00 UTC
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Tuesday Sector Laggards: Financial, Industrial
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AAL
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https://www.nasdaq.com/articles/tuesday-sector-laggards-financial-industrial-2018-07-10
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nan
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nan
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The worst performing sector as of midday Tuesday is the Financial sector, showing a 0.2% loss. Within the sector, Brighthouse Financial Inc (Symbol: BHF) and Huntington Bancshares Inc (Symbol: HBAN) are two large stocks that are lagging, showing a loss of 2.4% and 1.7%, respectively. Among financial ETFs , one ETF following the sector is the Financial Select Sector SPDR ETF (Symbol: XLF), which is down 0.4% on the day, and down 1.85% year-to-date. Brighthouse Financial Inc, meanwhile, is down 27.94% year-to-date, and Huntington Bancshares Inc is up 4.16% year-to-date. Combined, BHF and HBAN make up approximately 0.7% of the underlying holdings of XLF.
The next worst performing sector is the Industrial sector, showing a 0.1% loss. Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Alaska Air Group, Inc. (Symbol: ALK) are the most notable, showing a loss of 1.8% and 1.7%, respectively. One ETF closely tracking Industrial stocks is the Industrial Select Sector SPDR ETF ( XLI ), which is up 0.1% in midday trading, and down 2.01% on a year-to-date basis. American Airlines Group Inc, meanwhile, is down 25.42% year-to-date, and Alaska Air Group, Inc., is down 14.22% year-to-date. Combined, AAL and ALK make up approximately 1.1% 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 Tuesday. As you can see, five sectors are up on the day, while two sectors are down.
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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Combined, AAL and ALK make up approximately 1.1% of the underlying holdings of XLI. Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Alaska Air Group, Inc. (Symbol: ALK) are the most notable, showing a loss of 1.8% and 1.7%, respectively. Combined, BHF and HBAN make up approximately 0.7% of the underlying holdings of XLF.
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Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Alaska Air Group, Inc. (Symbol: ALK) are the most notable, showing a loss of 1.8% and 1.7%, respectively. Combined, AAL and ALK make up approximately 1.1% of the underlying holdings of XLI. Within the sector, Brighthouse Financial Inc (Symbol: BHF) and Huntington Bancshares Inc (Symbol: HBAN) are two large stocks that are lagging, showing a loss of 2.4% and 1.7%, respectively.
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Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Alaska Air Group, Inc. (Symbol: ALK) are the most notable, showing a loss of 1.8% and 1.7%, respectively. Combined, AAL and ALK make up approximately 1.1% of the underlying holdings of XLI. Within the sector, Brighthouse Financial Inc (Symbol: BHF) and Huntington Bancshares Inc (Symbol: HBAN) are two large stocks that are lagging, showing a loss of 2.4% and 1.7%, respectively.
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Among large Industrial stocks, American Airlines Group Inc (Symbol: AAL) and Alaska Air Group, Inc. (Symbol: ALK) are the most notable, showing a loss of 1.8% and 1.7%, respectively. Combined, AAL and ALK make up approximately 1.1% of the underlying holdings of XLI. The worst performing sector as of midday Tuesday is the Financial sector, showing a 0.2% loss.
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7009.0
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2018-07-05 00:00:00 UTC
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AAL August 24th Options Begin Trading
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AAL
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https://www.nasdaq.com/articles/aal-august-24th-options-begin-trading-2018-07-05
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nan
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Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the August 24th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the AAL options chain for the new August 24th contracts and identified one put and one call contract of particular interest.
The put contract at the $37.50 strike price has a current bid of $1.67. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $37.50, but will also collect the premium, putting the cost basis of the shares at $35.83 (before broker commissions). To an investor already interested in purchasing shares of AAL, that could represent an attractive alternative to paying $37.77/share today.
Because the $37.50 strike represents an approximate 1% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 100%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract . Should the contract expire worthless, the premium would represent a 4.45% return on the cash commitment, or 32.51% 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 $37.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $38.50 strike price has a current bid of $1.46. If an investor was to purchase shares of AAL stock at the current price level of $37.77/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $38.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 5.80% if the stock gets called away at the August 24th 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 $38.50 strike highlighted in red:
Considering the fact that the $38.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 99%. On our website under the contract detail page for this contract , Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 3.87% boost of extra return to the investor, or 28.22% annualized, which we refer to as the YieldBoost .
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $37.77) to be 31%. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Of course, a lot of upside could potentially be left on the table if AAL shares really soar, which is why looking at the trailing twelve month trading history for American Airlines Group Inc, as well as studying the business fundamentals becomes important. Below is a chart showing AAL's trailing twelve month trading history, with the $38.50 strike highlighted in red: Considering the fact that the $38.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the August 24th expiration.
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Below is a chart showing AAL's trailing twelve month trading history, with the $38.50 strike highlighted in red: Considering the fact that the $38.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the August 24th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the AAL options chain for the new August 24th contracts and identified one put and one call contract of particular interest.
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Below is a chart showing AAL's trailing twelve month trading history, with the $38.50 strike highlighted in red: Considering the fact that the $38.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the August 24th expiration. At Stock Options Channel , our YieldBoost formula has looked up and down the AAL options chain for the new August 24th contracts and identified one put and one call contract of particular interest.
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At Stock Options Channel , our YieldBoost formula has looked up and down the AAL options chain for the new August 24th 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 $38.50 strike highlighted in red: Considering the fact that the $38.50 strike represents an approximate 2% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Investors in American Airlines Group Inc (Symbol: AAL) saw new options become available today, for the August 24th expiration.
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7010.0
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2018-07-05 00:00:00 UTC
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Why Hold Strategy is Apt for United Continental Stock Now?
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AAL
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https://www.nasdaq.com/articles/why-hold-strategy-is-apt-for-united-continental-stock-now-2018-07-05
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nan
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nan
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Shares of United Continental Holdings, Inc.UAL have gained 4.2% since the company reported better-than-expected first-quarter 2018 results on Apr 17. Also, management's trimmed capacity growth outlook for 2018 has dismissed fears pertaining to capacity overexpansion.
We expect United Continental's top line in the second quarter to be driven by robust growth in passenger revenues owing to solid demand for air travel. Additionally, its projection on unit revenues for the same period is encouraging. The company anticipates pre-tax margin between 9% and 11%. Passenger unit revenues are expected to increase 1-3% year over year. Detailed results are expected to be out later in the month.
A glance at the company's share price performance shows that it has outperformed the industry on a year-to-date basis. The stock has gained 4.1% against the industry's 19.7% decline.
YTD Price Performance
We are also impressed by the carrier's efforts to modernize its fleet. Evidently, United Continentalis constantly adding more efficient planes to its fleet and removing outdated ones.
Additionally, the stock has a VGM Score of A, which highlights its attractiveness. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores.
Such a score allows investors to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score.
Despite these key driving factors, we advise investors to wait for a better entry point before buying shares of this airline heavyweight. Here's Why:
Headwinds
We remain concerned about the various setbacks pertaining to customer service at United Continental over the past year. Earlier in 2018, a dog died in one of its flights resulting in severe criticism from all possible quarters. In fact, United Continental earned the dubious distinction of recording the maximum number of animal deaths on its flights in 2017.
Furthermore, high labor costs are likely to hurt United Continental's bottom line in the second quarter as was the case in the first quarter of 2018. This apart, increased fuel costs are anticipated to dent this Zacks Rank #3 (Hold) carrier's bottom-line growth in the second quarter. Consolidated average aircraft fuel price per gallon is anticipated between $2.18 and $2.23 in the same period. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Apart from United Continental, the rise in oil prices is likely to weigh on the second-quarter earnings of other airline operators like Southwest Airlines Co. LUV , Delta Air Lines, Inc. DAL and American Airlines Group Inc. AAL .
The frequent management changes at United Continental also highlight the lack of stability in its management team. Such changes at short intervals generally do not go down well with investors, shaking their confidence in the stock. United Continental's high debt levels raise concerns as well.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apart from United Continental, the rise in oil prices is likely to weigh on the second-quarter earnings of other airline operators like Southwest Airlines Co. LUV , Delta Air Lines, Inc. DAL and American Airlines Group Inc. AAL . Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We expect United Continental's top line in the second quarter to be driven by robust growth in passenger revenues owing to solid demand for air travel.
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Apart from United Continental, the rise in oil prices is likely to weigh on the second-quarter earnings of other airline operators like Southwest Airlines Co. LUV , Delta Air Lines, Inc. DAL and American Airlines Group Inc. AAL . Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. This apart, increased fuel costs are anticipated to dent this Zacks Rank #3 (Hold) carrier's bottom-line growth in the second quarter.
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Apart from United Continental, the rise in oil prices is likely to weigh on the second-quarter earnings of other airline operators like Southwest Airlines Co. LUV , Delta Air Lines, Inc. DAL and American Airlines Group Inc. AAL . Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of United Continental Holdings, Inc.UAL have gained 4.2% since the company reported better-than-expected first-quarter 2018 results on Apr 17.
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Apart from United Continental, the rise in oil prices is likely to weigh on the second-quarter earnings of other airline operators like Southwest Airlines Co. LUV , Delta Air Lines, Inc. DAL and American Airlines Group Inc. AAL . Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Passenger unit revenues are expected to increase 1-3% year over year.
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7011.0
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2018-07-05 00:00:00 UTC
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After Hours Most Active for Jul 5, 2018 : KKR, WFC, QQQ, T, PPL, WBA, WPX, QEP, AAL, PDCO, HOLX, VGLT
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AAL
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https://www.nasdaq.com/articles/after-hours-most-active-jul-5-2018-kkr-wfc-qqq-t-ppl-wba-wpx-qep-aal-pdco-holx-vglt-2018
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nan
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The NASDAQ 100 After Hours Indicator is up .06 to 7,101.11. The total After hours volume is currently 49,493,761 shares traded.
The following are the most active stocks for the after hours session :
KKR & Co. Inc. ( KKR ) is unchanged at $26.85, with 14,964,702 shares traded. As reported by Zacks, the current mean recommendation for KKR is in the "buy range".
Wells Fargo & Company ( WFC ) is unchanged at $55.24, with 2,347,976 shares traded. WFC's current last sale is 88.38% of the target price of $62.5.
Invesco QQQ Trust, Series 1 ( QQQ ) is +0.08 at $173.00, with 2,094,307 shares traded. This represents a 27.39% increase from its 52 Week Low.
AT&T Inc. ( T ) is +0.0001 at $32.60, with 1,902,469 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2018. The consensus EPS forecast is $0.89. T's current last sale is 83.59% of the target price of $39.
PPL Corporation ( PPL ) is unchanged at $29.46, with 1,575,250 shares traded. PPL's current last sale is 89.27% of the target price of $33.
Walgreens Boots Alliance, Inc. ( WBA ) is unchanged at $62.38, with 1,559,343 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Feb 2019. The consensus EPS forecast is $1.75. WBA's current last sale is 81.01% of the target price of $77.
WPX Energy, Inc. ( WPX ) is unchanged at $18.50, with 1,474,666 shares traded. WPX's current last sale is 84.09% of the target price of $22.
QEP Resources, Inc. ( QEP ) is unchanged at $12.42, with 1,455,578 shares traded. As reported by Zacks, the current mean recommendation for QEP is in the "buy range".
American Airlines Group, Inc. ( AAL ) is unchanged at $37.99, with 1,255,161 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range".
Patterson Companies, Inc. ( PDCO ) is unchanged at $22.75, with 950,845 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2018. The consensus EPS forecast is $0.35. As reported in the last short interest update the days to cover for PDCO is 11.655059; this calculation is based on the average trading volume of the stock.
Hologic, Inc. ( HOLX ) is unchanged at $40.24, with 883,004 shares traded. As reported by Zacks, the current mean recommendation for HOLX is in the "buy range".
Vanguard Long-Treasury ETF ( VGLT ) is unchanged at $75.11, with 716,529 shares traded. This represents a 5.09% increase from its 52 Week Low.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) is unchanged at $37.99, with 1,255,161 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2018.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group, Inc. ( AAL ) is unchanged at $37.99, with 1,255,161 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range".
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American Airlines Group, Inc. ( AAL ) is unchanged at $37.99, with 1,255,161 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2018.
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American Airlines Group, Inc. ( AAL ) is unchanged at $37.99, with 1,255,161 shares traded. As reported by Zacks, the current mean recommendation for AAL is in the "buy range". AT&T Inc. ( T ) is +0.0001 at $32.60, with 1,902,469 shares traded.
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7012.0
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2018-07-03 00:00:00 UTC
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United Continental: The Best Airline Stock to Fly Through Market Turbulence
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AAL
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https://www.nasdaq.com/articles/united-continental-best-airline-stock-fly-through-market-turbulence-2018-07-03
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Since February of this year, the stock market has been in turmoil. Airline stocks were especially hit hard and they are mostly down for the year. United Continental Holdings Inc (NYSE: UAL ) stock has held up better than all other major airlines but today the beatings continue.
This morning traders are reacting negatively to a Deutsche Bank downgrade of UAL from BUY to HOLD. So I'm looking to go long the stock on this dip.
Investors have been on edge since March mostly due to headlines threatening global trade wars. So stocks have suffered whipsaw effects. Nevertheless, we've seen new all-time highs in the small-cap and tech sector while other areas still suffer. So there is risk appetite but it's being held hostage by headline threats.
Airlines of late have had the added downside pressure from a large spike in oil prices. But therein lies the opportunity.
I believe that the airlines will eventually pass the added cost through to consumers by raising prices. And I believe that the masses will end up paying the extra buck without many cancellations.
3 Big-Time Cloud Stocks With Monster Growth Potential
Valuations are attractive in the sector. UAL stock sells at a 10 price-to-earnings ratio which is cheap and absolute terms and in line to the sector. So owning the shares especially if at a deep discount from now is not likely to be a massive financial debacle.
In the long term, I am confident that I can manage out at the position for a profit. This is critical to the way I trade. I am not buying the shares of United Airlines today hoping it will rally so I can profit. Instead, I bet that investor fears are not likely to come true.
So I sell downside risk against proven support levels that I believe will hold through 2018.
Two UAL Trade Ideas
Technically, United Airlines stock range is getting tighter, so a move is likely to come. The direction of the move however is undetermined. But since we are at a levels that have been pivotal since 2015 so then it's likely to lend support so the bulls may have an edge.
If the rally comes my profits will come faster. However I do not need the rally to collect. I can still retain my maximum gains even if the stock falls 20%.
The Trade: Sell UAL Dec $55 naked put for $1.03 This is a bullish trade where I have a 85% theoretical chance for maximum gains. Otherwise, I will own shares and accrue losses below $53.97.
Selling naked puts is daunting especially in a week with tariff deadlines and a jobs report. Those who want to mitigate that risk can sell spreads instead.
The Alternate Trade: Sell the UAL Dec $57.5/$55 bull put spread which has about the same odds of winning and would yield 20% on risk. Compare this with risking $70 per share here and without any room for error expect a rally profit.
Click here for more of my market thesis and get an ongoing free copy of my weekly newsletters.
Nicolas Chahine is the managing director of SellSpreads.com . As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on twitter and stocktwits .
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The post United Continental: The Best Airline Stock to Fly Through Market Turbulence 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Continental Holdings Inc (NYSE: UAL ) stock has held up better than all other major airlines but today the beatings continue. Two UAL Trade Ideas Technically, United Airlines stock range is getting tighter, so a move is likely to come. The Alternate Trade: Sell the UAL Dec $57.5/$55 bull put spread which has about the same odds of winning and would yield 20% on risk.
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The Trade: Sell UAL Dec $55 naked put for $1.03 This is a bullish trade where I have a 85% theoretical chance for maximum gains. The Alternate Trade: Sell the UAL Dec $57.5/$55 bull put spread which has about the same odds of winning and would yield 20% on risk. Legendary Investor Louis Navellier's Trading Breakthrough Discovered almost by accident, Louis Navellier's incredible trading breakthrough has delivered 148 double- and triple-digit winners over the past 5 years - including a stunning 487% win in just 10 months.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since February of this year, the stock market has been in turmoil. Two UAL Trade Ideas Technically, United Airlines stock range is getting tighter, so a move is likely to come. More From InvestorPlace The ABSOLUTE Best Way to Invest in the Marijuana Boom 4 Developments That Will Fuel the Mega Marijuana Market The Best Shot You'll Ever Have at Making 50 TIMES Your Money 6 Marijuana Stocks to Invest In for 1,000%+ Gains Compare Brokers The post United Continental: The Best Airline Stock to Fly Through Market Turbulence appeared first on InvestorPlace .
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Since February of this year, the stock market has been in turmoil. In the long term, I am confident that I can manage out at the position for a profit. Two UAL Trade Ideas Technically, United Airlines stock range is getting tighter, so a move is likely to come.
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7013.0
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2018-07-03 00:00:00 UTC
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Nasdaq 100 Movers: TSLA, VOD
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-tsla-vod-2018-07-03
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nan
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nan
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In early trading on Tuesday, shares of Vodafone Group ( VOD ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.5%. Year to date, Vodafone Group has lost about 22.9% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Tesla ( TSLA ), trading down 3.6%. Tesla is showing a gain of 3.7% looking at the year to date performance.
Two other components making moves today are American Airlines Group ( AAL ), trading down 2.2%, and Kraft Heinz ( KHC ), trading up 1.2% on the day.
VIDEO: Nasdaq 100 Movers: TSLA, VOD
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 2.2%, and Kraft Heinz ( KHC ), trading up 1.2% on the day. In early trading on Tuesday, shares of Vodafone Group ( VOD ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.5%. And the worst performing Nasdaq 100 component thus far on the day is Tesla ( TSLA ), trading down 3.6%.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 2.2%, and Kraft Heinz ( KHC ), trading up 1.2% on the day. Year to date, Vodafone Group has lost about 22.9% of its value. VIDEO: Nasdaq 100 Movers: TSLA, VOD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 2.2%, and Kraft Heinz ( KHC ), trading up 1.2% on the day. In early trading on Tuesday, shares of Vodafone Group ( VOD ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.5%. VIDEO: Nasdaq 100 Movers: TSLA, VOD The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 2.2%, and Kraft Heinz ( KHC ), trading up 1.2% on the day. In early trading on Tuesday, shares of Vodafone Group ( VOD ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.5%. And the worst performing Nasdaq 100 component thus far on the day is Tesla ( TSLA ), trading down 3.6%.
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7014.0
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2018-07-03 00:00:00 UTC
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Morning Movers: Campbell Soup Jumps, Facebook Slides, Delta Air Lines Drops
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AAL
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https://www.nasdaq.com/articles/morning-movers-campbell-soup-jumps-facebook-slides-delta-air-lines-drops-2018-07-03
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nan
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nan
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The Dow Jones Industrial Average is set for a higher open on a truncated trading day. In today's Morning Movers, we...
Getty Images
•...explain why stocks continue to buck trade concerns; •...highlight an activists attempt to shake up Campbell Soup (CPB); •...and ponder an expanded investigation of Facebook (FB).
It looks like we'll have to save the fireworks for tomorrow.
S&P 500 futures have advanced 0.4%, while Dow Jones Industrial Average futures have risen 130 points, or 0.5%. Nasdaq Composite futures have gained 0.5%.
What's going on here? It's not as if trade war fears have dissipated or anything, as new tariffs are set to be imposed on Friday. Credit the strength of the U.S. economy. "Yet despite the rising risks of a full-blown trade war, animal spirits remain animated in the US," writes Yardeni Research's Ed Yardeni. "The US economy is performing well, and the stock market has been holding up remarkably well despite mounting protectionist tensions between the US and our major trading partners."
Of course, next week brings the start of earnings season, which could upend all that. Earnings are going to be good-- BofA Merrill Lynch's Savita Subramanian expects S&P 500 profits to increase by 22%, above the 20% consensus--but everyone will be paying attention to the guidance for signs that trade tensions are starting to have an impact. "This quarter we will be paying close attention to management guidance and commentary for any deterioration in outlooks driven by uncertainty around growth or trade, which could halt the capex recovery and stall confidence," Subramanian explains. "So far, so good - management has continued to guide above analysts' upwardly revised earnings estimates."
Maybe this time, they'll be worth celebrating.
Acuity Brands (AYI) is up 11.9% to $131 after reporting third-quarter earnings. The lighting firm earned $2.37 a share on revenue of $944.1 million. Analysts were looking for earnings of $2.17 a share on revenue of $900.46 million. It also expects improved demand after several quarters of weakness.
Albemarle (ALB) is up 2.5% to $95.78 after Goldman Sachs upgraded it to Buy.
Getty Images
American Airlines (AAL) is down 1.1% to $37.95, Delta Air Lines (DAL) is down 1.3% to $49.25, and United Continental (UAL) is down 1.1% to $70.15 after Deutsche Bank downgraded each to Hold.
Campbell Soup (CPB) is up 3.6% to $41.75 on news that activist investor Dan Loeb is pushing for a sale of the packaged food firm.
Dean Foods (DF) is up 1.3% to $10.66 on news that it increased its stake in Good Karma, becoming a majority shareholder.
Facebook (FB) is down 1.3% to $194.85 on a report from the Washington Post that the federal investigation into its ad-sharing practices is expanding.
PepsiCo (PEP) is down 0.6% to $108.85 after Deutsche Bank downgraded it to Hold.
Roku (ROKU) is up 5.2% to $45.51 after Oppenheimer upgraded it to Outperform. - Teresa Rivas
Sign up to Review & Preview, a new daily email from Barron's. Every evening we'll review the news that moved markets during the day and look ahead to what it means for your portfolio in the morning.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Getty Images American Airlines (AAL) is down 1.1% to $37.95, Delta Air Lines (DAL) is down 1.3% to $49.25, and United Continental (UAL) is down 1.1% to $70.15 after Deutsche Bank downgraded each to Hold. In today's Morning Movers, we... Getty Images •...explain why stocks continue to buck trade concerns; •...highlight an activists attempt to shake up Campbell Soup (CPB); •...and ponder an expanded investigation of Facebook (FB). Earnings are going to be good-- BofA Merrill Lynch's Savita Subramanian expects S&P 500 profits to increase by 22%, above the 20% consensus--but everyone will be paying attention to the guidance for signs that trade tensions are starting to have an impact.
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Getty Images American Airlines (AAL) is down 1.1% to $37.95, Delta Air Lines (DAL) is down 1.3% to $49.25, and United Continental (UAL) is down 1.1% to $70.15 after Deutsche Bank downgraded each to Hold. The Dow Jones Industrial Average is set for a higher open on a truncated trading day. In today's Morning Movers, we... Getty Images •...explain why stocks continue to buck trade concerns; •...highlight an activists attempt to shake up Campbell Soup (CPB); •...and ponder an expanded investigation of Facebook (FB).
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Getty Images American Airlines (AAL) is down 1.1% to $37.95, Delta Air Lines (DAL) is down 1.3% to $49.25, and United Continental (UAL) is down 1.1% to $70.15 after Deutsche Bank downgraded each to Hold. In today's Morning Movers, we... Getty Images •...explain why stocks continue to buck trade concerns; •...highlight an activists attempt to shake up Campbell Soup (CPB); •...and ponder an expanded investigation of Facebook (FB). Earnings are going to be good-- BofA Merrill Lynch's Savita Subramanian expects S&P 500 profits to increase by 22%, above the 20% consensus--but everyone will be paying attention to the guidance for signs that trade tensions are starting to have an impact.
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Getty Images American Airlines (AAL) is down 1.1% to $37.95, Delta Air Lines (DAL) is down 1.3% to $49.25, and United Continental (UAL) is down 1.1% to $70.15 after Deutsche Bank downgraded each to Hold. Nasdaq Composite futures have gained 0.5%. Earnings are going to be good-- BofA Merrill Lynch's Savita Subramanian expects S&P 500 profits to increase by 22%, above the 20% consensus--but everyone will be paying attention to the guidance for signs that trade tensions are starting to have an impact.
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7015.0
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2018-07-03 00:00:00 UTC
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Notable Tuesday Option Activity: RL, AAL, EA
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AAL
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https://www.nasdaq.com/articles/notable-tuesday-option-activity-rl-aal-ea-2018-07-03
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Ralph Lauren Corp (Symbol: RL), where a total volume of 5,825 contracts has been traded thus far today, a contract volume which is representative of approximately 582,500 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 48.9% of RL's average daily trading volume over the past month, of 1.2 million shares. Particularly high volume was seen for the $140 strike call option expiring August 17, 2018 , with 915 contracts trading so far today, representing approximately 91,500 underlying shares of RL. Below is a chart showing RL's trailing twelve month trading history, with the $140 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) options are showing a volume of 28,560 contracts thus far today. That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 48.4% of AAL's average daily trading volume over the past month, of 5.9 million shares. Especially high volume was seen for the $42 strike call option expiring July 20, 2018 , with 3,095 contracts trading so far today, representing approximately 309,500 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $42 strike highlighted in orange:
And Electronic Arts, Inc. (Symbol: EA) saw options trading volume of 14,254 contracts, representing approximately 1.4 million underlying shares or approximately 45.4% of EA's average daily trading volume over the past month, of 3.1 million shares. Particularly high volume was seen for the $180 strike call option expiring September 21, 2018 , with 2,057 contracts trading so far today, representing approximately 205,700 underlying shares of EA. Below is a chart showing EA's trailing twelve month trading history, with the $180 strike highlighted in orange:
For the various different available expirations for RL options , AAL options , or EA 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $42 strike call option expiring July 20, 2018 , with 3,095 contracts trading so far today, representing approximately 309,500 underlying shares of AAL. Below is a chart showing RL's trailing twelve month trading history, with the $140 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 28,560 contracts thus far today. That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 48.4% of AAL's average daily trading volume over the past month, of 5.9 million shares.
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Below is a chart showing RL's trailing twelve month trading history, with the $140 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 28,560 contracts thus far today. Below is a chart showing AAL's trailing twelve month trading history, with the $42 strike highlighted in orange: And Electronic Arts, Inc. (Symbol: EA) saw options trading volume of 14,254 contracts, representing approximately 1.4 million underlying shares or approximately 45.4% of EA's average daily trading volume over the past month, of 3.1 million shares. Below is a chart showing EA's trailing twelve month trading history, with the $180 strike highlighted in orange: For the various different available expirations for RL options , AAL options , or EA options , visit StockOptionsChannel.com.
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Below is a chart showing AAL's trailing twelve month trading history, with the $42 strike highlighted in orange: And Electronic Arts, Inc. (Symbol: EA) saw options trading volume of 14,254 contracts, representing approximately 1.4 million underlying shares or approximately 45.4% of EA's average daily trading volume over the past month, of 3.1 million shares. Below is a chart showing RL's trailing twelve month trading history, with the $140 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 28,560 contracts thus far today. That number of contracts represents approximately 2.9 million underlying shares, working out to a sizeable 48.4% of AAL's average daily trading volume over the past month, of 5.9 million shares.
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Especially high volume was seen for the $42 strike call option expiring July 20, 2018 , with 3,095 contracts trading so far today, representing approximately 309,500 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $42 strike highlighted in orange: And Electronic Arts, Inc. (Symbol: EA) saw options trading volume of 14,254 contracts, representing approximately 1.4 million underlying shares or approximately 45.4% of EA's average daily trading volume over the past month, of 3.1 million shares. Below is a chart showing RL's trailing twelve month trading history, with the $140 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 28,560 contracts thus far today.
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7016.0
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2018-07-02 00:00:00 UTC
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The Newest Stocks in the Motley Fool 100
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AAL
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https://www.nasdaq.com/articles/newest-stocks-motley-fool-100-2018-07-02
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nan
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nan
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The Motley Fool 100 continued its impressive year-to-date performance through the end of the second quarter, returning 9.39% versus 2.65% for the S&P 500. The Fool 100 has benefited thus far in 2018 from its relatively heavy exposure to large-cap technology companies (its allocation to the sector more than doubles that of the S&P 500), but that exposure will tilt slightly with some large and interesting new companies entering the index as of the most recent rebalance
Here's what is coming in:
Although the Motley Fool 100 has historically been underweight financial stocks, two big ones -- JPMorgan and Bank of America -- entered the index this quarter as top 10 positions, as did the smaller SVB Financial Group, parent of Silicon Valley Bank. These additions will bring the Fool 100's financial sector exposure much closer to that of the S&P 500. What has prompted our team of analysts to turn more bullish on the sector? Likely the lower relative valuations that can be found in the space today, as well as the potential for better-than-expected earnings growth in a rising-interest rate environment.
Also interesting is that Southwest and American will be joining Delta in the Fool 100 to grow the index's exposure to the airline history. While the airline industry has long been considered an uninvestable and poor-performing sector, a few of our analysts suspect that industry consolidation and more rational pricing will lead to rising profits across the industry.
If you're interested in learning more about the Motley Fool 100 index and seeing all of the stocks that make up its 100 constituents, visit the Fool 100 website at www.fool100.com .
SVB Financial provides credit and banking services to The Motley Fool. Tim Hanson has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Abiomed, Splunk, SVB Financial Group, Take-Two Interactive, and TransDigm Group. The Motley Fool recommends BioMarin Pharmaceutical, Broadcom Ltd, CoStar Group, Lam Research, McCormick, Nasdaq, ResMed, Southwest Airlines, Textron, Ulta Beauty, and XPO Logistics. 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Fool 100 has benefited thus far in 2018 from its relatively heavy exposure to large-cap technology companies (its allocation to the sector more than doubles that of the S&P 500), but that exposure will tilt slightly with some large and interesting new companies entering the index as of the most recent rebalance Here's what is coming in: Although the Motley Fool 100 has historically been underweight financial stocks, two big ones -- JPMorgan and Bank of America -- entered the index this quarter as top 10 positions, as did the smaller SVB Financial Group, parent of Silicon Valley Bank. Likely the lower relative valuations that can be found in the space today, as well as the potential for better-than-expected earnings growth in a rising-interest rate environment. The Motley Fool recommends BioMarin Pharmaceutical, Broadcom Ltd, CoStar Group, Lam Research, McCormick, Nasdaq, ResMed, Southwest Airlines, Textron, Ulta Beauty, and XPO Logistics.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. These additions will bring the Fool 100's financial sector exposure much closer to that of the S&P 500.
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The Fool 100 has benefited thus far in 2018 from its relatively heavy exposure to large-cap technology companies (its allocation to the sector more than doubles that of the S&P 500), but that exposure will tilt slightly with some large and interesting new companies entering the index as of the most recent rebalance Here's what is coming in: Although the Motley Fool 100 has historically been underweight financial stocks, two big ones -- JPMorgan and Bank of America -- entered the index this quarter as top 10 positions, as did the smaller SVB Financial Group, parent of Silicon Valley Bank. If you're interested in learning more about the Motley Fool 100 index and seeing all of the stocks that make up its 100 constituents, visit the Fool 100 website at www.fool100.com . The Motley Fool owns shares of and recommends Abiomed, Splunk, SVB Financial Group, Take-Two Interactive, and TransDigm Group.
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The Fool 100 has benefited thus far in 2018 from its relatively heavy exposure to large-cap technology companies (its allocation to the sector more than doubles that of the S&P 500), but that exposure will tilt slightly with some large and interesting new companies entering the index as of the most recent rebalance Here's what is coming in: Although the Motley Fool 100 has historically been underweight financial stocks, two big ones -- JPMorgan and Bank of America -- entered the index this quarter as top 10 positions, as did the smaller SVB Financial Group, parent of Silicon Valley Bank. Also interesting is that Southwest and American will be joining Delta in the Fool 100 to grow the index's exposure to the airline history. The Motley Fool owns shares of and recommends Abiomed, Splunk, SVB Financial Group, Take-Two Interactive, and TransDigm Group.
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7017.0
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2018-06-29 00:00:00 UTC
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Here's Why You Should Dump Allegiant From Your Portfolio
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AAL
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https://www.nasdaq.com/articles/heres-why-you-should-dump-allegiant-from-your-portfolio-2018-06-29
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nan
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nan
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Allegiant Travel CompanyALGT has been plagued with numerous headwinds, of late. In fact, factors like capacity-related woes, safety-related issues and escalating fuel costs have resulted in the Allegiant stock shedding 10.2% of its value so far this year.
YTD Price Performance
Reasons for the Lackluster Performance
High fuel and labor costs have been limiting the carrier's bottom-line growth for quite some time now and the second quarter of 2018 is likely to be no different. In May, fuel costs at Allegiant were approximately $2.44 per gallon, higher than the April reading of $2.28 per gallon. With oil prices on an uptrend, Allegiant might revise its current-year fuel price guidance of $2.20 per gallon upward in the near future. High labor costs may also weigh on the company's bottom-line performance.
We note that Allegiant is not the sole airline company to suffer from high fuel costs. Other carriers like Southwest Airlines Co. LUV , JetBlue Airways Corporation JBLU and American Airlines Group Inc. AAL are also being hurt by the rise in one of the largest input costs for any airline.
Additionally, capacity-related woes have been hurting Allegiant for quite some time and the company's May traffic report was no exception. In May, system capacity, calculated in available seat miles (ASMs), expanded 10.7% to 1.23 billion. Notably, capacity expansion was more in May compared with 9% in April, giving rise to capacity-overexpansion related fears.
Meanwhile, Allegiant is still suffering from CBS News' report, 60 Minutes, alleging that it was facing a number of safety-related issues. The damaging television program was aired on Apr 15. The allegations are being investigated.
Furthermore, Allegiant's high debt levels are concerning. The fact that it is a highly leveraged company is quite evident from the ratio of its long-term debt-to-equity (expressed as a percentage), which is currently in excess of 100. This compares unfavorably to the figure of 92.6% for its industry .
Unfavorable Readings
The Zacks Consensus Estimate for second-quarter and 2018 earnings moved south 1.8% and 2%, respectively, in the last 60 days. This reflects investor's pessimism surrounding the stock. Moreover, the company exhibits a Momentum Score of D, which highlights its short-term unattractiveness.
Undoubtedly, the above negatives substantiate the company's Zacks Rank #4 (Sell).
However, you can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Our View
Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Allegiant seems to one such stock, which has witnessed downward earnings estimate revisions and has an unfavorable Zacks Rank.
Therefore, if you are still holding on to shares of Allegiant in your portfolio, we believe that it is time you dump them as chances of favorable returns in the near term appear bleak.
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Southwest Airlines Co. (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Allegiant Travel Company (ALGT): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other carriers like Southwest Airlines Co. LUV , JetBlue Airways Corporation JBLU and American Airlines Group Inc. AAL are also being hurt by the rise in one of the largest input costs for any airline. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, factors like capacity-related woes, safety-related issues and escalating fuel costs have resulted in the Allegiant stock shedding 10.2% of its value so far this year.
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Other carriers like Southwest Airlines Co. LUV , JetBlue Airways Corporation JBLU and American Airlines Group Inc. AAL are also being hurt by the rise in one of the largest input costs for any airline. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We note that Allegiant is not the sole airline company to suffer from high fuel costs.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Other carriers like Southwest Airlines Co. LUV , JetBlue Airways Corporation JBLU and American Airlines Group Inc. AAL are also being hurt by the rise in one of the largest input costs for any airline. We note that Allegiant is not the sole airline company to suffer from high fuel costs.
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Other carriers like Southwest Airlines Co. LUV , JetBlue Airways Corporation JBLU and American Airlines Group Inc. AAL are also being hurt by the rise in one of the largest input costs for any airline. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We note that Allegiant is not the sole airline company to suffer from high fuel costs.
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7018.0
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2018-06-29 00:00:00 UTC
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American Airlines Dips to 52-Week Low on Multiple Headwinds
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AAL
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https://www.nasdaq.com/articles/american-airlines-dips-to-52-week-low-on-multiple-headwinds-2018-06-29
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Shares of American Airlines Group Inc . AAL slipped to a 52-week low of $37.06 during the trading session on Jun 28 before retracing a bit to close at $38.20. The stock has lost 24.1% in a year's time, wider than the industry 's 17.7% decline.
Reasons Behind the Stock's Plunge
Earlier this month, a computer failure at American Airlines' regional carrier PSA Airlines adversely impacted its crew scheduling system. The carrier's operations went haywire as a result of this disruption and it had to call off more than 2, 500 flights.
High costs are also a persistent problem at the carrier. In the first quarter of 2018, average fuel price per gallon increased 23.6% year over year to $2.10. Fuel prices are anticipated to be even higher (between $2.18 and $2.23) in the second quarter. This downside could further pressurize the company's bottom line in the upcoming quarter. Moreover, in April, the company trimmed its current-year adjusted earnings per share guidance due to the same reason. It now expects the metric between $5.00 and $6.00 (previous guidance had hinted at earnings between $5.50 and $6.50).
Apart from fuel costs, expenses pertaining to labor are expected to weigh on the bottom line in the current quarter. Consolidated cost per available seat miles (excluding special items and fuel) is also likely to rise 3.5% in the ongoing quarter.
The company's high debt levels also raise concerns. This is indicated by its long-term debt-to-equity ratio of 85.2 (expressed as a percentage), which compares unfavorably with the industry average of 43.3 and the S&P 500 index's measure of 43.1.
Downward Estimate Revisions
Due to the above-mentioned headwinds, the Zacks Consensus Estimate for the company's current-quarter earnings has been moved 4.5% south in the last 60 days. Also, the current-year bottom line has been revised 8.3% downward over the same time frame.
The company's unimpressive Momentum Score of D further highlights its short-term unattractiveness.
Zacks Rank & Key Picks
American Airlines carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are GATX Corporation GATX , Atlas Air Worldwide Holdings AAWW and Expeditors International of Washington, Inc. EXPD . While GATX carries a Zacks Rank #2 (Buy), Expeditors and Atlas Air Worldwide sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of GATX, Atlas Air Worldwide and Expeditors have gained more than 7%, 34% and 29%, respectively, in a year.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
GATX Corporation (GATX): Free Stock Analysis Report
Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report
Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAL slipped to a 52-week low of $37.06 during the trading session on Jun 28 before retracing a bit to close at $38.20. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report To read this article on Zacks.com click here. Consolidated cost per available seat miles (excluding special items and fuel) is also likely to rise 3.5% in the ongoing quarter.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report To read this article on Zacks.com click here. AAL slipped to a 52-week low of $37.06 during the trading session on Jun 28 before retracing a bit to close at $38.20. Some better-ranked stocks in the broader Transportation sector are GATX Corporation GATX , Atlas Air Worldwide Holdings AAWW and Expeditors International of Washington, Inc. EXPD .
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report To read this article on Zacks.com click here. AAL slipped to a 52-week low of $37.06 during the trading session on Jun 28 before retracing a bit to close at $38.20. While GATX carries a Zacks Rank #2 (Buy), Expeditors and Atlas Air Worldwide sport a Zacks Rank #1 (Strong Buy).
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AAL slipped to a 52-week low of $37.06 during the trading session on Jun 28 before retracing a bit to close at $38.20. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report Atlas Air Worldwide Holdings (AAWW): Free Stock Analysis Report To read this article on Zacks.com click here. High costs are also a persistent problem at the carrier.
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7019.0
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2018-06-29 00:00:00 UTC
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Delta's CEO Estimates $2B Extra Costs as Oil Prices Rise
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AAL
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https://www.nasdaq.com/articles/deltas-ceo-estimates-%242b-extra-costs-as-oil-prices-rise-2018-06-29
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It is a well-known fact that airline stocks are inversely related to oil prices . This is because expenses on fuel represent one of the most significant input costs for an airline company. Much to the anguish of airlines, oil prices have been on the rise, up more than 20% so far this year. Apart from the geopolitical tensions in the Middle East, the economic crisis in Venezuela - a major oil exporter and OPEC's recent plans of a lower-than-expected output raise have backed the rally in oil prices.
Generally, the rise in oil prices induces significant increase in operating expenses of carriers and limits bottom-line growth. According to the recent commentary by Ed Bastian, CEO of Delta Air Lines, Inc.DAL , the carrier is likely to incur additional costs to the tune of $2 billion in 2018 due to increase in oil prices.
In fact, it is not only Delta but the entire airline space that is likely to suffer due to rise in fuel costs. This is quite evident from the International Air Transport Association's ("IATA") bearish forecast for current-year airlines' profitability. According to the research firm, global net profit for the industry is expected to be $33.8 billion, much lower than the 2018 profitability forecast of $38.4 billion, unveiled in December 2017.
In April, another airline heavyweight - American Airlines Group Inc. AAL - had trimmed its current-year earnings per share projection due to high fuel costs.
Rise in fuel costs is likely to dent Delta's profitability in the second quarter as well. This Atlanta, GA-based Zacks Rank #4 (Sell) carrier had slashed its second-quarter earnings per share guidance earlier this month, due to rising fuel costs. The metric is now likely to be in the range of $1.65-$1.75, much lower than the previous estimate between $1.80 and $2.
In fact, high fuel costs have contributed to the 11% year to date decline in the Delta stock price.
Apart from Delta, other carriers like Southwest Airlines Co. LUV and JetBlue Airways Corporation JBLU are likely to witness bottom-line decline, respectively, due to upsurge in oil prices.
Also, JetBlue and Southwest's unfavorable Zacks Ranks can be primarily attributed to increase in oil prices. However, you can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In April, another airline heavyweight - American Airlines Group Inc. AAL - had trimmed its current-year earnings per share projection due to high fuel costs. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. According to the recent commentary by Ed Bastian, CEO of Delta Air Lines, Inc.DAL , the carrier is likely to incur additional costs to the tune of $2 billion in 2018 due to increase in oil prices.
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In April, another airline heavyweight - American Airlines Group Inc. AAL - had trimmed its current-year earnings per share projection due to high fuel costs. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Apart from Delta, other carriers like Southwest Airlines Co. LUV and JetBlue Airways Corporation JBLU are likely to witness bottom-line decline, respectively, due to upsurge in oil prices.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In April, another airline heavyweight - American Airlines Group Inc. AAL - had trimmed its current-year earnings per share projection due to high fuel costs. Apart from Delta, other carriers like Southwest Airlines Co. LUV and JetBlue Airways Corporation JBLU are likely to witness bottom-line decline, respectively, due to upsurge in oil prices.
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In April, another airline heavyweight - American Airlines Group Inc. AAL - had trimmed its current-year earnings per share projection due to high fuel costs. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, it is not only Delta but the entire airline space that is likely to suffer due to rise in fuel costs.
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7020.0
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2018-06-28 00:00:00 UTC
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American Airlines Stock Hits a New Multiyear Low -- but This Rival Is a Better Buy
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AAL
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https://www.nasdaq.com/articles/american-airlines-stock-hits-new-multiyear-low-rival-better-buy-2018-06-28
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Airline stocks have plunged this week for two major reasons. First, trade tensions with China caused investors to start worrying about demand. Second, oil prices have started moving higher again, following a brief respite prior to last week's OPEC meeting.
Not surprisingly, the airlines with the lowest profit margins have been hit hardest. These carriers are the most vulnerable to fuel price increases and demand shocks, as small changes in their profit margins can severely impact their earnings. During the past year, American Airlines (NASDAQ: AAL) has fallen into the bottom echelon of U.S. airlines in terms of profitability, and so its share price tumbled 7.5% in the first three days of this week.
American Airlines Weekly Stock Chart, data by YCharts .
American Airlines stock closed at $38.26 on Wednesday, its lowest level since 2016. Yet while the stock is starting to look cheap, investors would probably be better off sticking with shares of its smaller rival, JetBlue Airways (NASDAQ: JBLU) .
American is starting to get its house in order
In 2017, American Airlines' pre-tax margin fell to 9.1% from 12.6% a year earlier (and more than 15% a year before that). Profitability is set to decline again in 2018. While American Airlines has posted solid unit revenue growth over the past two years and is even starting to get nonfuel unit costs under control , it hasn't been able to fully cover the recent increases in its fuel costs.
American's management does recognize that it must stabilize the company's profitability, even if fuel prices continue to trend higher. In early May, American Airlines decided to cancel its Chicago-Beijing route, which has been losing tens of millions of dollars every year. American Airlines is also reducing or eliminating service on several routes to Brazil.
The capacity from these routes is being redeployed in markets that are likely to perform better based on current demand conditions, including Argentina, Hawaii, the Caribbean, and Europe. American Airlines is ready to make additional route adjustments if needed, such as dropping its other loss-making routes from Chicago to Asia. These moves may help American Airlines slow or even reverse its profit declines.
Plenty of problems remain
While American Airlines is starting to move in the right direction, the domestic fare environment could be challenging for the foreseeable future, due to United Continental 's aggressive growth plan. (American competes primarily with United in several of its hubs.)
In the long run, JetBlue Airways' steady growth represents an even bigger threat. Unlike other competitors that American Airlines has faced in the past, JetBlue threatens to steal some of American's most valuable customers by underpricing it on premium seats -- and potentially offering better service.
JetBlue's combination of price and service allowed it to become a force in the New York-Los Angeles and New York-San Francisco markets between 2014 and 2015. It's upgraded 10 more transcontinental routes to its Mint premium service since then, with great success.
Flights to Europe could be the carrier's next target. JetBlue is currently evaluating adding a long-range version of the Airbus A321 to its fleet, which would enable flights from the Northeast to much of Western Europe. A natural first step would be flying from its New York and Boston focus cities to London. American Airlines and joint venture partner British Airways currently fly four times a day from Boston to London and 16 times a day from New York to London. These routes are particularly lucrative for the two carriers.
With the A321LR, JetBlue could also fly from its Fort Lauderdale focus city further into South America, disrupting American's monopoly on several routes to South America from Miami. Thus, American Airlines could be uniquely vulnerable to JetBlue's future growth.
JetBlue is the better bet for long-term investors
After its recent tumble, American Airlines stock trades for less than eight times analysts' 2018 earnings expectations. If oil prices recede and American is able to continue posting even modest unit revenue growth, EPS could surge higher over the next few years, making American Airlines stock a steal at its current price.
That said, oil prices could continue to rise. Furthermore, increasing competition -- especially for premium passengers -- could erode American's unit revenue growth. To make matters worse, American Airlines has a huge debt load, making it vulnerable to an industry downturn.
By contrast, JetBlue has a pristine balance sheet, with almost as much cash as debt on the books. JetBlue's focus on coastal markets and transcontinental flights makes it less vulnerable to the fare wars occurring in Mid-Continent hub markets. JetBlue also has a lot more room to grow than American Airlines, thanks to its comparatively small size today.
Despite all of these advantages, JetBlue stock trades for just 11 times analysts' 2018 earnings estimates. Long-term investors are likely to be better off paying a modest premium and betting on this disruptive growth company rather than trying to time a bottom in American Airlines stock.
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Adam Levine-Weinberg owns shares of JetBlue Airways and is long January 2019 $10 calls on JetBlue Airways. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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During the past year, American Airlines (NASDAQ: AAL) has fallen into the bottom echelon of U.S. airlines in terms of profitability, and so its share price tumbled 7.5% in the first three days of this week. Plenty of problems remain While American Airlines is starting to move in the right direction, the domestic fare environment could be challenging for the foreseeable future, due to United Continental 's aggressive growth plan. JetBlue is the better bet for long-term investors After its recent tumble, American Airlines stock trades for less than eight times analysts' 2018 earnings expectations.
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During the past year, American Airlines (NASDAQ: AAL) has fallen into the bottom echelon of U.S. airlines in terms of profitability, and so its share price tumbled 7.5% in the first three days of this week. American Airlines and joint venture partner British Airways currently fly four times a day from Boston to London and 16 times a day from New York to London. JetBlue is the better bet for long-term investors After its recent tumble, American Airlines stock trades for less than eight times analysts' 2018 earnings expectations.
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During the past year, American Airlines (NASDAQ: AAL) has fallen into the bottom echelon of U.S. airlines in terms of profitability, and so its share price tumbled 7.5% in the first three days of this week. JetBlue is the better bet for long-term investors After its recent tumble, American Airlines stock trades for less than eight times analysts' 2018 earnings expectations. If oil prices recede and American is able to continue posting even modest unit revenue growth, EPS could surge higher over the next few years, making American Airlines stock a steal at its current price.
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During the past year, American Airlines (NASDAQ: AAL) has fallen into the bottom echelon of U.S. airlines in terms of profitability, and so its share price tumbled 7.5% in the first three days of this week. Flights to Europe could be the carrier's next target. Long-term investors are likely to be better off paying a modest premium and betting on this disruptive growth company rather than trying to time a bottom in American Airlines stock.
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7021.0
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2018-06-26 00:00:00 UTC
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Zacks Industry Outlook Highlights: Southwest Airlines, SkyWest, Delta Air Lines, American Airlines Group and JetBlue Airways
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AAL
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights%3A-southwest-airlines-skywest-delta-air-lines-american
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For Immediate Release
Chicago, IL - June 26, 2018 - Today, Zacks Equity Research discusses the Industry: Airlines, including Southwest Airlines Co. LUV , SkyWest, Inc. SKYW , Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL and JetBlue Airways Corp. JBLU .
Industry: Airlines
Link: https://www.zacks.com/commentary/168866/airline-stock-outlook-high-costs-pose-short-term-challenges
The airline industry is benefiting from strong demand for air travel. Declining air fares along with a much-improved job market and rising disposable income have provided consumers an added incentive to opt for air travel. The bullish projection by the Airlines for America (A4A) for the ongoing summer season confirms the robust demand. The association expects the season to be the busiest one for U.S. carriers in terms of air travel.
However, the rise in fuel costs has hurt airline stocks big time. Oil prices have risen roughly 10% year to date. Since expenses on fuel are significant for airlines, an increase in oil prices is unfavorable for the space.
In fact, the bearish forecast by the International Air Transport Association ("IATA") on current-year airlines' profitability highlights the fact that the woes are likely to continue for carriers. The research firm predicts global net profit for the industry to be $33.8 billion, much lower than the 2018 profitability forecast of $38.4 billion, unveiled in December 2017. Escalating oil prices apart, labor and interest costs also weighed on the profitability forecast.
Industry Underperforms on Shareholder Returns
Judging by shareholder returns over the past year, it seems that solid demand for air travel and the improving unit revenue scenario weren't enough for instilling investors' confidence as far as the industry's growth prospects are concerned.
Headwinds like high fuel and labor costs, capacity-related issues and technological glitches have contributed to investors' pessimism surrounding the space.
The Zacks Airline industry , which is a 25-stock group within the broader Zacks Transportation Sector , has underperformed both the S&P 500 and its own sector over the past year.
While the stocks in this industry have collectively lost 12.1%, the Zacks S&P 500 Composite and Zacks Transportation Sector have rallied 13.4% and 0.8%, respectively.
One-Year Price Performance
Airline Stocks Trading Cheap
Thanks to the industry's underperformance over the past year, the valuation looks really cheap now. One might get a good sense of the industry's relative valuation by looking at its EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation and amortization) ratio, which is often used to value airline stocks, given their significant debt levels and high depreciation and amortization expenses.
This ratio is essentially utilized by buyers to come to a conclusion regarding the reasonability of a target's valuation.
The industry currently has a trailing 12-month EV/EBITDA ratio of 6.07, near the lowest level over the past year. When compared with the highest level of 7.29 and median level of 6.31 over that period, there is apparently plenty of upside left.
The space also looks inexpensive when compared with the market at large, as the trailing 12-month EV/EBITDA ratio for the S&P 500 is 11.49 and the median level is 11.36.
However, as transportation stocks have unique characteristics, a comparison of the group's EV/EBITDA ratio with that of its border sector is probably the best approach. Such a comparison ensures that the group is trading at a decent discount. The Zacks Transportation Sector's trailing 12-month EV/EBITDA ratio of 10.09 and the median level of 7.66 for the same period are significantly above the Zacks Airline Industry's respective ratios.
Underperformance May Continue Due to Bleak Earnings Outlook
The strong balance sheets of major carriers have enabled them to engage in shareholder and employee-friendly activities. Additionally, strong demand on the back of a buoyant U.S. economy coupled with low air fares may help airline stocks in delivering improved shareholder returns in the near future.
But what really matters to investors is whether this group has the potential to perform better than the broader market in the quarters ahead. The above ratio analysis already shows that there is hardly any value-oriented path ahead and one should not really consider the current price levels as good entry points unless there are convincing reasons to predict a rebound in the near term.
One reliable measure that can help investors understand the industry's prospects of a solid price performance is the earnings outlook for its member companies. Empirical research shows that a company's earnings outlook significantly influences the performance of its stock.
One could get a good sense of a company's earnings outlook by comparing the consensus earnings expectation for the current financial year with the last year's reported number, but an effective measure could be the magnitude and direction of the recent change in earnings estimates.
While the consensus earnings estimate for the Zacks Airline industry of $3.59 per share shows a year-over-year deterioration, the trend in earnings estimate revisions is not favorable either.
Looking at the aggregate earnings estimate revisions, it appears that analysts are losing confidence in this group's earnings potential.
The consensus EPS estimate for the current fiscal year has been revised 11.4% downward since Mar 31, 2018.
Zacks Industry Rank Indicates Bleak Prospects
The group's Zacks Industry Rank , which is basically the average of the Zacks Rank of all the member stocks, indicates continued underperformance in the near term.
The Zacks Airline industry currently carries a Zacks Industry Rank #244, which places it at the bottom 5% of more than 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
In fact, the basis of this bearish outlook could be the downward trend, albeit some fluctuations, in top line that airlines have been showing since the beginning of 2015.
Airline Stocks Promise Long-Term Growth
While the near-term prospects look unwelcoming for investors, the long-term (3-5 years) EPS growth estimate for the Zacks Airline industry appears upbeat. The group's mean estimate of long-term EPS growth has been showing an upward trend since January 2018 to reach the current level of 13.4%. This compares to 9.8% for the Zacks S&P 500 composite.
In fact, the basis of this long-terms EPS growth could be an increase in free cash flow for the industry since the beginning of the current-year.
The increase in free cash flow bodes well for airline stocks, as far as their dividend-paying capacity is concerned. This is because dividends are paid from a company's cash flow. We note that airline stocks like Southwest Airlines Co. have raised their dividend payouts this year. Moreover, an uptick in such shareholder-friendly activities in the space is likely due to the massive savings resulting from the new tax law.
Investors prefer dividend-paying stocks, as these are financially stable and mature, and can also generate steady cash flow irrespective of market conditions. Therefore, our anticipation that airlines will fly high in the long run is justified.
Bottom Line
Even though factors like an improving unit revenue scenario, increased demand for air travel, cheap valuation and infrastructural developments to attract more passengers are positives for the sector and might contribute to long-term growth, we believe that that airlines will fly low in the short term mainly due to the surge in fuel costs. According to IATA, jet fuel prices are likely to escalate around 27.5% to $70 per barrel this year. Fuel bill is likely to account for 24.2% of total costs in 2018 (21.4% in 2017).
Overall, the industry might not be able to tide over the challenges in the near term and therefore none of the stocks in our airline universe currently hold a Zacks Rank #1 (Strong Buy). However, below is a stock that has been witnessing positive earnings estimate revisions and carries a Zacks Rank #2 (Buy).
(You can see the complete list of today's Zacks #1 Rank stocks here. )
SkyWest, Inc. is a regional carrier operating in the United States. The Zacks Consensus Estimate for the current-year EPS has been revised 5.2% upward over the last 60 days.
As mentioned throughout, there are a number of reasons to worry about the industry's performance in the near to medium term. So, it would be prudent to stay away from some weak airline stocks for now. Stocks carrying an unfavorable Zacks Rank are particularly expected to underperform.
Delta Air Lines, Inc : The stock of this Atlanta, GA-based airline behemoth has shed 2.9% of its value over the past six months. The Zacks Consensus Estimate for the current-year EPS has been revised 6.9% downward over the last 60 days. The stock carries a Zacks Rank #4 (Sell).
American Airlines Group Inc : The stock of this Fort Worth, TX-based carrier has shed 19.7% of its value over the past six months. The Zacks Consensus Estimate for the current-year EPS has been revised 9.5% downward over the last 60 days. The stock carries a Zacks Rank #5 (Strong Sell).
JetBlue Airways Corp : The stock of this Long Island City, New York based carrier has shed 15% of its value over the past six months. The Zacks Consensus Estimate for the current-year EPS has been revised 8.1% downward over the last 60 days. The stock carries a Zacks Rank #4.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Southwest Airlines Co. (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL - June 26, 2018 - Today, Zacks Equity Research discusses the Industry: Airlines, including Southwest Airlines Co. LUV , SkyWest, Inc. SKYW , Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL and JetBlue Airways Corp. JBLU . Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Additionally, strong demand on the back of a buoyant U.S. economy coupled with low air fares may help airline stocks in delivering improved shareholder returns in the near future.
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For Immediate Release Chicago, IL - June 26, 2018 - Today, Zacks Equity Research discusses the Industry: Airlines, including Southwest Airlines Co. LUV , SkyWest, Inc. SKYW , Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL and JetBlue Airways Corp. JBLU . Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Industry Underperforms on Shareholder Returns Judging by shareholder returns over the past year, it seems that solid demand for air travel and the improving unit revenue scenario weren't enough for instilling investors' confidence as far as the industry's growth prospects are concerned.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - June 26, 2018 - Today, Zacks Equity Research discusses the Industry: Airlines, including Southwest Airlines Co. LUV , SkyWest, Inc. SKYW , Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL and JetBlue Airways Corp. JBLU . Zacks Industry Rank Indicates Bleak Prospects The group's Zacks Industry Rank , which is basically the average of the Zacks Rank of all the member stocks, indicates continued underperformance in the near term.
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For Immediate Release Chicago, IL - June 26, 2018 - Today, Zacks Equity Research discusses the Industry: Airlines, including Southwest Airlines Co. LUV , SkyWest, Inc. SKYW , Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL and JetBlue Airways Corp. JBLU . Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Industry: Airlines Link: https://www.zacks.com/commentary/168866/airline-stock-outlook-high-costs-pose-short-term-challenges The airline industry is benefiting from strong demand for air travel.
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7022.0
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2018-06-25 00:00:00 UTC
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Airline Stock Outlook: High Costs Pose Short-Term Challenges
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AAL
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https://www.nasdaq.com/articles/airline-stock-outlook%3A-high-costs-pose-short-term-challenges-2018-06-25
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The airline industry is benefiting from strong demand for air travel. Declining air fares along with a much-improved job market and rising disposable income have provided consumers an added incentive to opt for air travel. The bullish projection by the Airlines for America (A4A) for the ongoing summer season confirms the robust demand. The association expects the season to be the busiest one for U.S. carriers in terms of air travel.
However, the rise in fuel costs has hurt airline stocks big time. Oil prices have risen roughly 10% year to date. Since expenses on fuel are significant for airlines, an increase in oil prices is unfavorable for the space.
In fact, the bearish forecast by the International Air Transport Association ("IATA") on current-year airlines' profitability highlights the fact that the woes are likely to continue for carriers. The research firm predicts global net profit for the industry to be $33.8 billion, much lower than the 2018 profitability forecast of $38.4 billion, unveiled in December 2017. Escalating oil prices apart, labor and interest costs also weighed on the profitability forecast.
Industry Underperforms on Shareholder Returns
Judging by shareholder returns over the past year, it seems that solid demand for air travel and the improving unit revenue scenario weren't enough for instilling investors' confidence as far as the industry's growth prospects are concerned.
Headwinds like high fuel and labor costs, capacity-related issues and technological glitches have contributed to investors' pessimism surrounding the space.
The Zacks Airline industry , which is a 25-stock group within the broader Zacks Transportation Sector , has underperformed both the S&P 500 and its own sector over the past year.
While the stocks in this industry have collectively lost 12.1%, the Zacks S&P 500 Composite and Zacks Transportation Sector have rallied 13.4% and 0.8%, respectively.
One-Year Price Performance
Airline Stocks Trading Cheap
Thanks to the industry's underperformance over the past year, the valuation looks really cheap now. One might get a good sense of the industry's relative valuation by looking at its EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation and amortization) ratio, which is often used to value airline stocks, given their significant debt levels and high depreciation and amortization expenses.
This ratio is essentially utilized by buyers to come to a conclusion regarding the reasonability of a target's valuation.
The industry currently has a trailing 12-month EV/EBITDA ratio of 6.07, near the lowest level over the past year. When compared with the highest level of 7.29 and median level of 6.31 over that period, there is apparently plenty of upside left.
The space also looks inexpensive when compared with the market at large, as the trailing 12-month EV/EBITDA ratio for the S&P 500 is 11.49 and the median level is 11.36.
Enterprise Value/EBITDA (TTM)
However, as transportation stocks have unique characteristics, a comparison of the group's EV/EBITDA ratio with that of its border sector is probably the best approach. Such a comparison ensures that the group is trading at a decent discount. The Zacks Transportation Sector's trailing 12-month EV/EBITDA ratio of 10.09 and the median level of 7.66 for the same period are significantly above the Zacks Airline Industry's respective ratios.
Enterprise Value/EBITDA (TTM)
Underperformance May Continue Due to Bleak Earnings Outlook
The strong balance sheets of major carriers have enabled them to engage in shareholder and employee-friendly activities. Additionally, strong demand on the back of a buoyant U.S. economy coupled with low air fares may help airline stocks in delivering improved shareholder returns in the near future.
But what really matters to investors is whether this group has the potential to perform better than the broader market in the quarters ahead. The above ratio analysis already shows that there is hardly any value-oriented path ahead and one should not really consider the current price levels as good entry points unless there are convincing reasons to predict a rebound in the near term.
One reliable measure that can help investors understand the industry's prospects of a solid price performance is the earnings outlook for its member companies. Empirical research shows that a company's earnings outlook significantly influences the performance of its stock.
One could get a good sense of a company's earnings outlook by comparing the consensus earnings expectation for the current financial year with the last year's reported number, but an effective measure could be the magnitude and direction of the recent change in earnings estimates.
While the consensus earnings estimate for the Zacks Airline industry of $3.59 per share shows a year-over-year deterioration, the trend in earnings estimate revisions is not favorable either.
Price and Consensus: Zacks Airline Industry
The consensus EPS estimate for the current fiscal year has been revised 11.4% downward since Mar 31, 2018.
Current Fiscal Year EPS Estimate Revisions
Zacks Industry Rank Indicates Bleak Prospects
The group's Zacks Industry Rank , which is basically the average of the Zacks Rank of all the member stocks, indicates continued underperformance in the near term.
The Zacks Airline industry currently carries a Zacks Industry Rank #244, which places it at the bottom 5% of more than 250 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Our proprietary Heat Map shows that the industry's rank has been bearish over the past five weeks.
In fact, the basis of this bearish outlook could be the downward trend, albeit some fluctuations, in top line that airlines have been showing since the beginning of 2015.
Airline Stocks Promise Long-Term Growth
While the near-term prospects look unwelcoming for investors, the long-term (3-5 years) EPS growth estimate for the Zacks Airline industry appears upbeat. The group's mean estimate of long-term EPS growth has been showing an upward trend since January 2018 to reach the current level of 13.4%. This compares to 9.8% for the Zacks S&P 500 composite.
Mean Estimate of Long-Term EPS Growth Rate
In fact, the basis of this long-terms EPS growth could be an increase in free cash flow for the industry since the beginning of the current-year.
The increase in free cash flow bodes well for airline stocks, as far as their dividend-paying capacity is concerned. This is because dividends are paid from a company's cash flow. We note that airline stocks like Southwest Airlines Co. (LUV) have raised their dividend payouts this year. Moreover, an uptick in such shareholder-friendly activities in the space is likely due to the massive savings resulting from the new tax law.
Investors prefer dividend-paying stocks, as these are financially stable and mature, and can also generate steady cash flow irrespective of market conditions. Therefore, our anticipation that airlines will fly high in the long run is justified.
Bottom Line
Even though factors like an improving unit revenue scenario, increased demand for air travel, cheap valuation and infrastructural developments to attract more passengers are positives for the sector and might contribute to long-term growth, we believe that that airlines will fly low in the short term mainly due to the surge in fuel costs. According to IATA, jet fuel prices are likely to escalate around 27.5% to $70 per barrel this year. Fuel bill is likely to account for 24.2% of total costs in 2018 (21.4% in 2017).
Overall, the industry might not be able to tide over the challenges in the near term and therefore none of the stocks in our airline universe currently hold a Zacks Rank #1 (Strong Buy). However, below is a stock that has been witnessing positive earnings estimate revisions and carries a Zacks Rank #2 (Buy).
(You can see the complete list of today's Zacks #1 Rank stocks here. )
SkyWest, Inc. (SKYW) is a regional carrier operating in the United States. The Zacks Consensus Estimate for the current-year EPS has been revised 5.2% upward over the last 60 days.
Price and Consensus: SKYW
As mentioned throughout, there are a number of reasons to worry about the industry's performance in the near to medium term. So, it would be prudent to stay away from some weak airline stocks for now. Stocks carrying an unfavorable Zacks Rank are particularly expected to underperform.
Delta Air Lines, Inc. (DAL): The stock of this Atlanta, GA-based airline behemoth has shed 2.9% of its value over the past six months. The Zacks Consensus Estimate for the current-year EPS has been revised 6.9% downward over the last 60 days. The stock carries a Zacks Rank #4 (Sell).
Price and Consensus: DAL
American Airlines Group Inc. (AAL): The stock of this Fort Worth, TX-based carrier has shed 19.7% of its value over the past six months. The Zacks Consensus Estimate for the current-year EPS has been revised 9.5% downward over the last 60 days. The stock carries a Zacks Rank #5 (Strong Sell).
Price and Consensus: AAL
JetBlue Airways Corp. (JBLU) : The stock of this Long Island City, New York based carrier has shed 15% of its value over the past six months. The Zacks Consensus Estimate for the current-year EPS has been revised 8.1% downward over the last 60 days. The stock carries a Zacks Rank #4.
Price and Consensus: JBLU
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SkyWest, Inc. (SKYW): Free Stock Analysis Report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Price and Consensus: DAL American Airlines Group Inc. (AAL): The stock of this Fort Worth, TX-based carrier has shed 19.7% of its value over the past six months. Price and Consensus: AAL JetBlue Airways Corp. (JBLU) : The stock of this Long Island City, New York based carrier has shed 15% of its value over the past six months. Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Price and Consensus: DAL American Airlines Group Inc. (AAL): The stock of this Fort Worth, TX-based carrier has shed 19.7% of its value over the past six months. Price and Consensus: AAL JetBlue Airways Corp. (JBLU) : The stock of this Long Island City, New York based carrier has shed 15% of its value over the past six months.
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Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Price and Consensus: DAL American Airlines Group Inc. (AAL): The stock of this Fort Worth, TX-based carrier has shed 19.7% of its value over the past six months. Price and Consensus: AAL JetBlue Airways Corp. (JBLU) : The stock of this Long Island City, New York based carrier has shed 15% of its value over the past six months.
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Price and Consensus: DAL American Airlines Group Inc. (AAL): The stock of this Fort Worth, TX-based carrier has shed 19.7% of its value over the past six months. Price and Consensus: AAL JetBlue Airways Corp. (JBLU) : The stock of this Long Island City, New York based carrier has shed 15% of its value over the past six months. Click to get this free report SkyWest, Inc. (SKYW): Free Stock Analysis Report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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7023.0
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2018-06-22 00:00:00 UTC
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American Airlines Plans Some Much-Needed Job Cuts
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AAL
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https://www.nasdaq.com/articles/american-airlines-plans-some-much-needed-job-cuts-2018-06-22
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Just three years ago, American Airlines (NASDAQ: AAL) achieved an incredible pre-tax profit of $6.3 billion (excluding special items). Since then, its pre-tax income has eroded rapidly, with adjusted pre-tax profit totaling $5.1 billion in 2016 and $3.8 billion in 2017. A spike in fuel prices over the past year makes it virtually inevitable that pre-tax profit will fall again in 2018 .
With its profitability swooning, the world's largest airline is finally coming to grips with the need to cut costs. Earlier this week, American Airlines announced that it will reduce its management workforce through a combination of buyouts, layoffs, and the elimination of open positions.
Headcount has been rising
American Airlines has been steadily adding employees since merging with US Airways in late 2013. The combined company had 91,679 full-time equivalent employees in its mainline operations as of the end of 2013. By the end of 2017, this total had surpassed 103,000 -- up about 12.5% -- even though capacity had only increased 5.1% over that period.
The sizable increase in American Airlines' headcount has come despite the carrier -- along with rivals Delta Air Lines (NYSE: DAL) and United Continental (NYSE: UAL) -- steadily shifting its mainline fleet toward larger planes. In fact, American Airlines has fewer mainline aircraft and operates fewer mainline flights than it did at the time of the merger.
Thus, American Airlines' employee productivity has declined sharply in recent years. This has contributed to the company's cost-creep problems .
A spokesperson for the company noted that American Airlines had just come out of bankruptcy in 2013 and was understaffed at the time. In other words, some of the headcount increase was necessary for the carrier to operate smoothly.
That said, American Airlines also appears to be overstaffed relative to Delta and United. Delta Air Lines -- the most profitable of the top three U.S. airlines -- ended 2017 with only 86,564 employees, several thousand of whom don't work in its mainline operations. Its mainline headcount is thus about 20% less than that of American Airlines, but Delta's mainline capacity was just 6.3% lower than that of its top rival last year.
Meanwhile, United Continental's mainline capacity was just 3.8% lower than that of American last year, but its headcount of about 86,000 was nearly 17% lower. These comparisons may not be precisely "apples to apples," but it seems clear nonetheless that American does not operate quite as efficiently as its top two rivals.
American Airlines will make some cuts
Earlier this week, American Airlines told employees that it had more management positions than it needed, now that most of the company's merger integration work is finished. As a result, it plans to streamline its management ranks by eliminating a number of jobs at the director level and higher.
American Airlines will have to involuntarily lay off some of its higher-level management staff to achieve its headcount target. However, it also plans to offer severance benefits in order to entice some employees to leave voluntarily. American expects to reduce the number of lower-level managers in non-customer-facing roles, as well. It hopes to accomplish most of these reductions through attrition or by eliminating open positions, but there will also be some layoffs at this level of the management structure.
There's probably more room to slim down
Cutting unnecessary layers of management -- particularly higher-paying positions -- should help American Airlines reduce its costs without impacting operations. Executives have been saying for years that some positions would become redundant once the integration process was completed, and they're finally taking action to eliminate those roles.
Still, management-level staff cuts at American Airlines won't have much of an impact on its total headcount. Given the vast discrepancy in the carrier's labor efficiency relative to that of Delta and United, there ought to be room for broader staff reductions -- or at least an opportunity to boost capacity without proportionally increasing headcount.
The one thing that's clear is that American Airlines' profitability isn't at an acceptable level right now. The company's leaders will need to make some tough decisions to fix that situation.
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Adam Levine-Weinberg owns shares of Delta Air Lines. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Just three years ago, American Airlines (NASDAQ: AAL) achieved an incredible pre-tax profit of $6.3 billion (excluding special items). There's probably more room to slim down Cutting unnecessary layers of management -- particularly higher-paying positions -- should help American Airlines reduce its costs without impacting operations. Given the vast discrepancy in the carrier's labor efficiency relative to that of Delta and United, there ought to be room for broader staff reductions -- or at least an opportunity to boost capacity without proportionally increasing headcount.
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Just three years ago, American Airlines (NASDAQ: AAL) achieved an incredible pre-tax profit of $6.3 billion (excluding special items). The sizable increase in American Airlines' headcount has come despite the carrier -- along with rivals Delta Air Lines (NYSE: DAL) and United Continental (NYSE: UAL) -- steadily shifting its mainline fleet toward larger planes. American Airlines will make some cuts Earlier this week, American Airlines told employees that it had more management positions than it needed, now that most of the company's merger integration work is finished.
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Just three years ago, American Airlines (NASDAQ: AAL) achieved an incredible pre-tax profit of $6.3 billion (excluding special items). The sizable increase in American Airlines' headcount has come despite the carrier -- along with rivals Delta Air Lines (NYSE: DAL) and United Continental (NYSE: UAL) -- steadily shifting its mainline fleet toward larger planes. Its mainline headcount is thus about 20% less than that of American Airlines, but Delta's mainline capacity was just 6.3% lower than that of its top rival last year.
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Just three years ago, American Airlines (NASDAQ: AAL) achieved an incredible pre-tax profit of $6.3 billion (excluding special items). The sizable increase in American Airlines' headcount has come despite the carrier -- along with rivals Delta Air Lines (NYSE: DAL) and United Continental (NYSE: UAL) -- steadily shifting its mainline fleet toward larger planes. Its mainline headcount is thus about 20% less than that of American Airlines, but Delta's mainline capacity was just 6.3% lower than that of its top rival last year.
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7024.0
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2018-06-20 00:00:00 UTC
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Airline Stock Roundup: IT Glitch at AAL, ALK & CPA's May Traffic Reports in Focus
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AAL
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https://www.nasdaq.com/articles/airline-stock-roundup%3A-it-glitch-at-aal-alk-cpas-may-traffic-reports-in-focus-2018-06-20
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In the past week, American Airlines Group Inc. AAL cancelled multiple flights due to a computer error at its subsidiary, PSA Airlines. Notably, PSA Airlines is responsible for operating around 12% of the daily flights at American Airlines. Needless to say, the cancellation of flights caused unwarranted harassments to its passengers.
Moreover, rumors of a new low-cost carrier being launched in the United States made headlines over the past five trading days. According to media reports, David Neeleman - the founder of JetBlue Airways Corporation JBLU - has plans to launch Moxy Airways. Reportedly, this highly successful airline entrepreneur is targeting $100 million in funding (including from himself) for this new venture.
Also, Alaska Air Group, Inc. ALK and Copa Holdings, S.A. CPA unveiled their respective traffic reports for May in the past week. While load factor (% of seats filled by passengers) decreased at Alaska Air due to higher capacity growth, the metric improved at Copa Holdings as traffic growth outpaced capacity expansion. Meanwhile, low-cost carrier Spirit Airlines, Inc. SAVE announced a major expansion of its network.
Transportation - Airline Industry 5YR % Return
Transportation - Airline Industry 5YR % Return
(Read the last Airline Stock Roundup for Jun 13, 2018 )
Recap of the Past Week's Most Important Stories
1. At Alaska Air Group, traffic - measured in revenue passenger miles (RPMs) - was up 7.4% year over year to 3.78 billion. Consolidated capacity (or available seat miles/ASMs) rose 9% to 4.84 billion.
Apart from the traffic report, Alaska Air Group's subsidiary, Alaska Airlines announced its intention to start operating non-stop flights connecting San Diego and Spokane, WA, from Oct 1, 2018 (read more: Alaska Air Group's May Traffic Up, Load Factor Down ).
Alaska Air Group carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
2. Copa Holdings reported a 16.1% increase in May traffic. With traffic growth outpacing capacity expansion (13.4%), load factor expanded 200 basis points to 84.4% in the month (read more: Copa Holdings Traffic & Load Factor Increase in May ).
3. In a bid to expand internationally, Spirit Airlines stated that it will start operating additional flights connecting Orlando International Airport to 11 new destinations in Latin America and the Caribbean from Oct 4, 2018. As part of the carrier's largest international expansion plan, Spirit will also launch additional flights to connect Orlando with three destinations in the United States (Myrtle Beach, South Carolina, Greensboro and Asheville in North Carolina), later this year.
4. A computer failure at American Airlines' regional carrier PSA Airlines adversely impacted its crew scheduling system. As a result of the disruption, the carrier's operations were thrown haywire as it had to call off more than 2, 500 flights since Thursday . The situation at PSA Airlines is limping back to normal and the regional carrier aims to resume operations at 100% level in the next few days.
American Airlines was also in the news when the carrier reportedly decided to trim its work force (at the management level), in a bid to cut costs. Following a meeting of its board of directors, the company decided to trim its headcount by dismissing some its management-level employees besides offering buyouts to others as it attempts to increase efficiencies for bolstering long-term growth. However, the number of employees to be affected by this move has not yet been disclosed.
5. It seems that a new US-based low-cost carrier will be launched in the next couple of years. David Neeleman, who had dismissed rumors about his plans to launch an airline last year, is apparently aiming to do so this time around. The new carrier aims to serve small airports using Bombardier CS300 planes. Neeleman has an impressive track record in the aviation industry. Apart from JetBlue, he also founded Brazilian carrier Azul S.A. AZUL and has a stake in Portugal's leading carrier, TAP Air Portugal. Naturally, investors would eagerly await updates on Neeleman's latest plan, given his vast experience in the industry.
Price Performance
The following table shows the price movement of the major airline players over the past week and during the last six months.
The table above shows that airline stocks exhibited a mixed price trend over the past week. The NYSE ARCA Airline Index declined 1% in the period. Over the course of the last six months, the sector tracker has lost 11% of its value mainly due to high fuel costs and other headwinds. Shares of Latin American carriers Copa Holdings and Gol Linhas Aereas Inteligentes S.A. GOL have declined the most, 28% and 26.7%, respectively, in the same period.
What's Next in the Airline Space?
Stay tuned for usual news updates in the space.
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JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report
Copa Holdings, S.A. (CPA): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
AZUL SA (AZUL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the past week, American Airlines Group Inc. AAL cancelled multiple flights due to a computer error at its subsidiary, PSA Airlines. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report AZUL SA (AZUL): Free Stock Analysis Report To read this article on Zacks.com click here. The situation at PSA Airlines is limping back to normal and the regional carrier aims to resume operations at 100% level in the next few days.
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Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report AZUL SA (AZUL): Free Stock Analysis Report To read this article on Zacks.com click here. In the past week, American Airlines Group Inc. AAL cancelled multiple flights due to a computer error at its subsidiary, PSA Airlines. Apart from the traffic report, Alaska Air Group's subsidiary, Alaska Airlines announced its intention to start operating non-stop flights connecting San Diego and Spokane, WA, from Oct 1, 2018 (read more: Alaska Air Group's May Traffic Up, Load Factor Down ).
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Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report AZUL SA (AZUL): Free Stock Analysis Report To read this article on Zacks.com click here. In the past week, American Airlines Group Inc. AAL cancelled multiple flights due to a computer error at its subsidiary, PSA Airlines. Transportation - Airline Industry 5YR % Return Transportation - Airline Industry 5YR % Return (Read the last Airline Stock Roundup for Jun 13, 2018 ) Recap of the Past Week's Most Important Stories 1.
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In the past week, American Airlines Group Inc. AAL cancelled multiple flights due to a computer error at its subsidiary, PSA Airlines. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report AZUL SA (AZUL): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, PSA Airlines is responsible for operating around 12% of the daily flights at American Airlines.
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7025.0
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2018-06-20 00:00:00 UTC
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Consumer Sector Update for 06/20/2018: AAL,WBA,GE,WGO,FOX,FOXA,DIS,CMCSA
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AAL
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https://www.nasdaq.com/articles/consumer-sector-update-06202018-aalwbagewgofoxfoxadiscmcsa-2018-06-20
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Top Consumer Stocks
WMT +0.05%
MCD -1.45%
DIS +1.07%
CVS +1.12%
KO -0.83%
Consumer stocks were ending broadly higher, with shares of consumer staples companies in the S&P 500 posting a less than 0.1% advance this afternoon while shares of consumer discretionary firms in the S&P 500 were climbing more than 0.5%.
Among consumer stocks moving on news:
+ American Airlines Group ( AAL ) was set to finish almost 2% higher on Wednesday following reports the air carrier is planning some management-level layoffs and buyouts in an effort to slim down five years after its merger with US Airways. Jobs in American's marketing, information technology and revenue management operations all may be on the chopping block, the reports said, but its unionized pilots, flight attendants, mechanics and other customer-facing positions - which make up the bulk of its workforce - will not be part of the current round of cuts. The company may be looking at other areas for future layoffs, the reports said.
In other sector news:
+ Winnebago Industries ( WGO ) rolled to a double-digit gain on Wednesday, topping out with a 14% advance, after recreational vehicle company reported sharply improved fiscal Q3 net income and sales compared with year-ago levels and also beating Wall Street estimates. The company earned $1.02 per share during the three months ended May 26, up from $0.61 per share during the same quarter last year and exceeding the Capital IQ consensus expecting a $0.90 per share GAAP profit and normalized net income of $0.93 per share. Net sales rose 18% year over year to $562.3 million, also surpassing the $540.6 million analyst mean.
+ Walgreens Boots Alliance ( WBA ) was riding a 4% advance on Wednesday after the drug store chain late Tuesday was selected to replace General Electric ( GE ) in the Dow Jones Industrial Average, effective with the start of trading on Tuesday, June 26. GE leaves after more than 110 years on the blue-chip index, surviving 41 changes in the Dow's composition over that span, although the industrial conglomerate's stock price has dropped over 60% since July 2016 as it sold off a large part of its former business as it tries to reorganize with a focus on its aviation, power and health care operations.
- Twenty-First Century Fox (FOX,FOXA) jumped out to a new record high on Wednesday, climbing more than 7% to a best-ever $47.51 a share, after The Walt Disney Co ( DIS ) raised its bid for selected Fox assets by more than a third over its prior offer. The new, $71.3 billion offer values the Fox assets at $38 per share in cash and stock, up 35.7% over its previous $28-per-share, all-stock buyout proposal announced in December. It also tops Comcast's (CMCSA) $65 billion rival proposal offering $35 per share. In a statement, Fox said the new Disney bid was superior to Comcast's June 13 offer, providing investors with more flexibility and deal certainty, although it also left the door open for additional offers, if any arise.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Among consumer stocks moving on news: + American Airlines Group ( AAL ) was set to finish almost 2% higher on Wednesday following reports the air carrier is planning some management-level layoffs and buyouts in an effort to slim down five years after its merger with US Airways. Jobs in American's marketing, information technology and revenue management operations all may be on the chopping block, the reports said, but its unionized pilots, flight attendants, mechanics and other customer-facing positions - which make up the bulk of its workforce - will not be part of the current round of cuts. In other sector news: + Winnebago Industries ( WGO ) rolled to a double-digit gain on Wednesday, topping out with a 14% advance, after recreational vehicle company reported sharply improved fiscal Q3 net income and sales compared with year-ago levels and also beating Wall Street estimates.
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Among consumer stocks moving on news: + American Airlines Group ( AAL ) was set to finish almost 2% higher on Wednesday following reports the air carrier is planning some management-level layoffs and buyouts in an effort to slim down five years after its merger with US Airways. Consumer stocks were ending broadly higher, with shares of consumer staples companies in the S&P 500 posting a less than 0.1% advance this afternoon while shares of consumer discretionary firms in the S&P 500 were climbing more than 0.5%. It also tops Comcast's (CMCSA) $65 billion rival proposal offering $35 per share.
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Among consumer stocks moving on news: + American Airlines Group ( AAL ) was set to finish almost 2% higher on Wednesday following reports the air carrier is planning some management-level layoffs and buyouts in an effort to slim down five years after its merger with US Airways. Consumer stocks were ending broadly higher, with shares of consumer staples companies in the S&P 500 posting a less than 0.1% advance this afternoon while shares of consumer discretionary firms in the S&P 500 were climbing more than 0.5%. The company earned $1.02 per share during the three months ended May 26, up from $0.61 per share during the same quarter last year and exceeding the Capital IQ consensus expecting a $0.90 per share GAAP profit and normalized net income of $0.93 per share.
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Among consumer stocks moving on news: + American Airlines Group ( AAL ) was set to finish almost 2% higher on Wednesday following reports the air carrier is planning some management-level layoffs and buyouts in an effort to slim down five years after its merger with US Airways. Consumer stocks were ending broadly higher, with shares of consumer staples companies in the S&P 500 posting a less than 0.1% advance this afternoon while shares of consumer discretionary firms in the S&P 500 were climbing more than 0.5%. It also tops Comcast's (CMCSA) $65 billion rival proposal offering $35 per share.
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7026.0
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2018-06-19 00:00:00 UTC
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American Airlines Suffers the Latest Airline IT Meltdown
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AAL
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https://www.nasdaq.com/articles/american-airlines-suffers-latest-airline-it-meltdown-2018-06-19
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Within the span of a month during the summer of 2016, two of the top four U.S. airlines suffered crippling IT failures. Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) were each forced to cancel thousands of flights during the peak season, leading to lost revenue and reputational damage.
The summer 2018 peak season is just getting started, but there has already been a major airline IT failure. In the past week, flight cancellations have rapidly mounted at American Airlines ' (NASDAQ: AAL) regional subsidiary PSA Airlines, due to problems with the carrier's crew scheduling system. With airlines increasingly highlighting reliability as a key selling point for business travelers, this is an unfortunate incident for American Airlines.
What's going on at American Airlines?
PSA Airlines is a regional airline that operates 50- to 76-seat jets for American Airlines, mainly from the carrier's massive hub in Charlotte. While many of the regional airlines that fly smaller planes for the legacy carriers are independently owned, PSA is a subsidiary of American.
Last Thursday, PSA Airlines experienced a hardware issue at its headquarters in Dayton, Ohio, that has impacted its crew scheduling and tracking system. This has made it impossible for PSA to properly match its pilots and flight attendants with its aircraft.
Not surprisingly, this led to a huge number of flight cancellations. PSA Airlines canceled 275 flights on Thursday and 400 flights on Friday. Most of those flights were headed into or out of the Charlotte hub. PSA tried to return to a normal schedule over the weekend, but it didn't take long for the IT issues to reappear. The carrier canceled about 50 flights on Saturday and hundreds on Sunday.
By Monday, the cumulative number of flight cancellations had surpassed 1,100. PSA also canceled all of its flights on Tuesday morning. And while American Airlines says that PSA Airlines has now stabilized its computer systems, it will take several days to resume a full schedule, due to crews and aircraft being out of position.
There should have been backup systems
The 2016 IT outages at Delta Air Lines and Southwest Airlines occurred when backup systems did not work as designed after the airlines' main systems went down. At the time, Southwest had already begun a multiyear $500 million IT upgrade effort to replace its ancient technology systems . Meanwhile, Delta responded to its system outage by investing in a new data center to provide more redundancy in the event of future problems.
By contrast, it appears that there may not have been a backup crew scheduling system in place at PSA Airlines. If that's true, it represents a lapse in judgment by American Airlines' management team, as the 2016 incidents made the need for robust backup systems very obvious.
Like its peers, American Airlines has been reinvesting huge sums of money in the business in recent years, after a long period of underinvestment. However, it's possible that technology spending wasn't as high on the priority list as it should have been.
How much will this damage American Airlines' reputation?
Luckily for American Airlines, PSA Airlines accounts for a very small proportion of its business. Among American's nine hub cities, only Charlotte has been hit hard by the recent IT glitch. That said, for many customers traveling through Charlotte, the past week has been an absolute nightmare.
Indeed, for some small "spoke" cities, PSA Airlines offers the only link to the American Airlines network. Thus, it has been hard for American to rebook customers whose original flights were canceled. This has added to travelers' frustration.
For the past couple of years, American Airlines has been trying to become a best-in-class airline in terms of operational reliability. In the long run, that's critical to maintaining the loyalty of high-paying business travelers. The recent spate of flight cancellations at PSA Airlines has undermined the carrier's credibility in this respect. To avoid customer backlash, American Airlines must show that it's taking proactive steps to shore up its IT systems.
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Adam Levine-Weinberg owns shares of Delta Air Lines and Southwest Airlines. The Motley Fool 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the past week, flight cancellations have rapidly mounted at American Airlines ' (NASDAQ: AAL) regional subsidiary PSA Airlines, due to problems with the carrier's crew scheduling system. Last Thursday, PSA Airlines experienced a hardware issue at its headquarters in Dayton, Ohio, that has impacted its crew scheduling and tracking system. If that's true, it represents a lapse in judgment by American Airlines' management team, as the 2016 incidents made the need for robust backup systems very obvious.
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In the past week, flight cancellations have rapidly mounted at American Airlines ' (NASDAQ: AAL) regional subsidiary PSA Airlines, due to problems with the carrier's crew scheduling system. Delta Air Lines (NYSE: DAL) and Southwest Airlines (NYSE: LUV) were each forced to cancel thousands of flights during the peak season, leading to lost revenue and reputational damage. There should have been backup systems The 2016 IT outages at Delta Air Lines and Southwest Airlines occurred when backup systems did not work as designed after the airlines' main systems went down.
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In the past week, flight cancellations have rapidly mounted at American Airlines ' (NASDAQ: AAL) regional subsidiary PSA Airlines, due to problems with the carrier's crew scheduling system. PSA Airlines is a regional airline that operates 50- to 76-seat jets for American Airlines, mainly from the carrier's massive hub in Charlotte. There should have been backup systems The 2016 IT outages at Delta Air Lines and Southwest Airlines occurred when backup systems did not work as designed after the airlines' main systems went down.
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In the past week, flight cancellations have rapidly mounted at American Airlines ' (NASDAQ: AAL) regional subsidiary PSA Airlines, due to problems with the carrier's crew scheduling system. What's going on at American Airlines? There should have been backup systems The 2016 IT outages at Delta Air Lines and Southwest Airlines occurred when backup systems did not work as designed after the airlines' main systems went down.
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7027.0
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2018-06-15 00:00:00 UTC
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4 Transportation Picks to Reward You With Handsome Dividends
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AAL
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https://www.nasdaq.com/articles/4-transportation-picks-reward-you-handsome-dividends-2018-06-15
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It is a well-known fact that expenses associated with oil are considered to be one of the major input costs for any transportation company. Therefore, the recent upsurge in fuel costs does not augur well for stocks in the space.
So far this year, oil prices have increased roughly 10% and are currently trading at around $66 a barrel. Various reasons like the geopolitical tensions in the Middle East contributed to the rise in oil price. In fact, this marks a phenomenal turnaround for the commodity, which was trading at around $30 a barrel in 2016.
Transports Feeling the Pinch
With fuel costs on the rise, it is natural that transportation stocks would be hit hard. This is because an upsurge in oil prices induces significant increase in operating expenses of transports, thus limiting bottom-line growth.
In fact, the first-quarter earnings season witnessed many stocks in the space suffering due to rise in fuel costs. Notably, oil prices were up approximately 8% in the January-March period. This uptrend continued in the April-June period as well.
Highlighting its struggles, the Zacks Transportation Sector is currently ranked 14th among the 16 Zacks Classified sectors.The unfavorable rank places the sector in the bottom 13% of the Zacks sectors.
Turbulence Likely to Continue in Q2
The fact that high fuel costs will restrict bottom-line growth of transports in the second quarter can be made out from our latest Earnings Preview . Even though, the top and bottom line of S&P 500 companies in the Transportation sector are projected to grow year over year to the tune of 7.6% and 12.3%, respectively, the figures compare unfavorably to the readings in the first quarter. Revenues and earnings had displayed growth of 9% and 21.3% for transports in the January-March period.
Key transportation players like American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL expect second-quarter results to be affected by high fuel costs. Currently, Delta envisions second-quarter fuel costs per gallon between $2.20 and $2.25 compared with $2.07 and $2.12 projected earlier. This airline behemoth has also slashed its earnings per share guidance for the soon-to-be reported quarter due to the cost headwind. The bottom line is now anticipated in the range of $1.65-$1.75, lower than the prior estimate between $1.80 and $2.
Apart from high fuel costs, expenses on the labor front are expected to weigh on transportation stocks' bottom-line performancein the second quarter.
Sector Lags on the Price Front
The turbulence in the space can be gauged from the fact that the Zacks Transportation Sector has underperformed the S&P 500 on a year-to-date basis. While the sector has shed 1% of its value, the Zacks S&P 500 Composite has increased 3.9%.
YTD Price Performance
Adding Shareholder Value - The Road Ahead
In view of the turbulence plaguing transports, we believe that it would be prudent for investors interested in the space to invest in companies that not only pay consistent dividends but also raise the same. This is because such companies are financially stable and mature and can also generate steady cash flow irrespective of market conditions.
Moreover, the new tax law (Tax Cuts and Jobs Act), which came into force late last year, is a boon for transports as far as shareholder-friendly activities like dividend payments are concerned. The significant reduction in corporate tax rate, under the new law, has boosted cash flow as well as earnings of transportation stocks.
Due to the significant reduction in tax bills, more cash remains in the hands of these companies to fund capital expenditures, buybacks and dividends among others.
Dividend Paying Transports - A Prudent Choice
Given the backdrop, targeting dividend-paying transportation stocks and combining them with a favorable Zacks Rank is a judicious way to increase the chances of beating the market besides ensuring a steady stream of cash heading to your portfolio.
In this regard, we have zeroed in on four transportation stocks, which have raised their dividend payouts this year. All the chosen stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Year to date, these stocks have also outperformed the sector on the price front.
Key Picks
FedEx CorporationFDX offers customers a one-stop source for global shipping, logistics and supply chain solutions. This Zacks Rank #2 company has a market capitalization of $70.43 billion.
In June 2018, FedEx's board of directors cleared a 30% hike in its quarterly dividend to 65 cents a share (or $2.60 annually) from 50 cents (or $2 annually). The new dividend will be paid on Jul 9, 2018 to stockholders of record as of Jun 25. The stock has gained 5.6% on a year-to-date basis.
The raised dividend highlights FedEx's commitment toward creating value for shareholders and underscores the company's strong financial condition and bright prospects going ahead. Also, it has an impressive record with respect to dividend payments.
Expeditors International of Washington, Inc.EXPD is a leading third-party logistics provider. In May, Expeditors' board of directors approved a 7.1% hike in semi-annual cash dividend to 45 cents per share (annualized 90 cents per share). This Zacks Rank #1 company has a market capitalization of $13.51 billion. The stock has gained 18.7% on a year-to-date basis.
GATX CorporationGATX is a leading global railcar lessor that specializes in railcar and locomotive operating leasing, aircraft operating leasing, information technology leasing, and venture finance for customers in diverse industrial sectors worldwide.
On Jan 26, 2018, the company's board of directors cleared a 5% hike in its quarterly dividend to 44 cents per share ($1.76 annually). Also, this Zacks Rank #2 company has an impressive record with respect to dividend payments. It has been paying dividends regularly since 1919. GATX has a market capitalization of $2.64 billion. The stock has gained 15.7% so far this year.
Finally, SkyWest, Inc.SKYW is a regional carrier operating in the United States. In February, the company's board of directors cleared a 25% hike in its quarterly dividend to 10 cents a share (or 40 cents annually) from 8 cents (or 32 cents annually). This Zacks Rank #2 company, with a market capitalization of $2.88 billion, has an impressive record with respect to dividend payments. The stock has gained 5.9% so far this year.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
GATX Corporation (GATX): Free Stock Analysis Report
Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report
FedEx Corporation (FDX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Key transportation players like American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL expect second-quarter results to be affected by high fuel costs. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. Turbulence Likely to Continue in Q2 The fact that high fuel costs will restrict bottom-line growth of transports in the second quarter can be made out from our latest Earnings Preview .
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Key transportation players like American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL expect second-quarter results to be affected by high fuel costs. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. In February, the company's board of directors cleared a 25% hike in its quarterly dividend to 10 cents a share (or 40 cents annually) from 8 cents (or 32 cents annually).
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. Key transportation players like American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL expect second-quarter results to be affected by high fuel costs. Highlighting its struggles, the Zacks Transportation Sector is currently ranked 14th among the 16 Zacks Classified sectors.The unfavorable rank places the sector in the bottom 13% of the Zacks sectors.
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Key transportation players like American Airlines Group Inc. AAL and Delta Air Lines, Inc. DAL expect second-quarter results to be affected by high fuel costs. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report GATX Corporation (GATX): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. So far this year, oil prices have increased roughly 10% and are currently trading at around $66 a barrel.
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7028.0
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2018-06-14 00:00:00 UTC
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American Airlines (AAL) Stock Declines 18% YTD: Here's Why
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-stock-declines-18-ytd%3A-heres-why-2018-06-14
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Shares of American Airlines Group Inc.AAL have lost 17.5% so far this year, underperforming its industry 's decline of 11.8%.
YTD Price Performance
Reasons Behind the Lackluster Price Performance
High fuel costs have been the primary reason behind the company's dismal performance.In fact, oil prices have increased roughly 10% on a year-to-date basis.
In the second quarter, high fuel costs are expected to limit bottom-line growth at American Airlines as was the case in first-quarter 2018. Average fuel price per gallon rose 23.6% year over year to $2.10 per gallon in the first quarter. Fuel prices are anticipated to be even higher (between $2.18 and $2.23 per gallon) in the second quarter.
Apart from high fuel costs, expenses pertaining to labor are expected to weigh on the bottom line in the second quarter. Consolidated cost per available seat miles (excluding special items and fuel) is anticipated to increase 3.5% in the second quarter of 2018.
American Airlines' high debt levels are added concerns. Apart from American Airlines, the rise in oil prices has also hurt other airline operators like Southwest Airlines Co. LUV , Delta Air Lines, Inc. DAL and United Continental Holdings, Inc. UAL .
Other Unfavorable Readings
The Zacks Consensus Estimate for second-quarter and full-year 2018 earnings moved south 8.5% and 7.9%, respectively, in the last 60 days. This reflects investor's pessimism surrounding the stock.
Furthermore, the company's Momentum Score of D highlights its short-term unattractiveness. Undoubtedly, the above negatives substantiate the company's Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
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Southwest Airlines Co. (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of American Airlines Group Inc.AAL have lost 17.5% so far this year, underperforming its industry 's decline of 11.8%. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In the second quarter, high fuel costs are expected to limit bottom-line growth at American Airlines as was the case in first-quarter 2018.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of American Airlines Group Inc.AAL have lost 17.5% so far this year, underperforming its industry 's decline of 11.8%. YTD Price Performance Reasons Behind the Lackluster Price Performance High fuel costs have been the primary reason behind the company's dismal performance.In fact, oil prices have increased roughly 10% on a year-to-date basis.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of American Airlines Group Inc.AAL have lost 17.5% so far this year, underperforming its industry 's decline of 11.8%. YTD Price Performance Reasons Behind the Lackluster Price Performance High fuel costs have been the primary reason behind the company's dismal performance.In fact, oil prices have increased roughly 10% on a year-to-date basis.
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Shares of American Airlines Group Inc.AAL have lost 17.5% so far this year, underperforming its industry 's decline of 11.8%. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In the second quarter, high fuel costs are expected to limit bottom-line growth at American Airlines as was the case in first-quarter 2018.
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7029.0
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2018-06-13 00:00:00 UTC
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New Strong Sell Stocks for June 13th
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AAL
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https://www.nasdaq.com/articles/new-strong-sell-stocks-for-june-13th-2018-06-13
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today:
ABM Industries IncorporatedABM is a provider of integrated facility solutions. The Zacks Consensus Estimate for its current year earnings has been revised 2.6% downward over the last 60 days.
American Airlines Group Inc.AAL is a provider of air transportation services. The Zacks Consensus Estimate for its current year earnings has been revised 7.9% downward over the last 60 days.
Aspen Insurance Holdings LimitedAHL is a provider of insurance and reinsurance services. The Zacks Consensus Estimate for its current year earnings has been revised 12.1% downward over the last 60 days.
British American Tobacco p.l.c.BTI is a provider of cigarettes and other tobacco products. The Zacks Consensus Estimate for its current year earnings has been revised 6.5% downward over the last 60 days.
Cirrus Logic, Inc.CRUS is a developer and manufacturer of analog and mixed-signal integrated circuits (ICs). The Zacks Consensus Estimate for its current year earnings has been revised 23.1% downward over the last 30 days.
View the entire Zacks Rank #5 List .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
ABM Industries Incorporated (ABM): Free Stock Analysis Report
Cirrus Logic, Inc. (CRUS): Free Stock Analysis Report
Aspen Insurance Holdings Limited (AHL): Free Stock Analysis Report
British American Tobacco p.l.c. (BTI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc.AAL is a provider of air transportation services. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report ABM Industries Incorporated (ABM): Free Stock Analysis Report Cirrus Logic, Inc. (CRUS): Free Stock Analysis Report Aspen Insurance Holdings Limited (AHL): Free Stock Analysis Report British American Tobacco p.l.c. Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: ABM Industries IncorporatedABM is a provider of integrated facility solutions.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report ABM Industries Incorporated (ABM): Free Stock Analysis Report Cirrus Logic, Inc. (CRUS): Free Stock Analysis Report Aspen Insurance Holdings Limited (AHL): Free Stock Analysis Report British American Tobacco p.l.c. American Airlines Group Inc.AAL is a provider of air transportation services. The Zacks Consensus Estimate for its current year earnings has been revised 2.6% downward over the last 60 days.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report ABM Industries Incorporated (ABM): Free Stock Analysis Report Cirrus Logic, Inc. (CRUS): Free Stock Analysis Report Aspen Insurance Holdings Limited (AHL): Free Stock Analysis Report British American Tobacco p.l.c. American Airlines Group Inc.AAL is a provider of air transportation services. The Zacks Consensus Estimate for its current year earnings has been revised 2.6% downward over the last 60 days.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report ABM Industries Incorporated (ABM): Free Stock Analysis Report Cirrus Logic, Inc. (CRUS): Free Stock Analysis Report Aspen Insurance Holdings Limited (AHL): Free Stock Analysis Report British American Tobacco p.l.c. American Airlines Group Inc.AAL is a provider of air transportation services. View the entire Zacks Rank #5 List .
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7030.0
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2018-06-12 00:00:00 UTC
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Nasdaq 100 Movers: STX, TSLA
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-stx-tsla-2018-06-12
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nan
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nan
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In early trading on Tuesday, shares of Tesla ( TSLA ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.1%. Year to date, Tesla registers a 10.0% gain.
And the worst performing Nasdaq 100 component thus far on the day is Seagate Technology ( STX ), trading down 2.5%. Seagate Technology is showing a gain of 34.9% looking at the year to date performance.
Two other components making moves today are American Airlines Group ( AAL ), trading down 2.2%, and NetEase ( NTES ), trading up 2.6% on the day.
VIDEO: Nasdaq 100 Movers: STX, TSLA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 2.2%, and NetEase ( NTES ), trading up 2.6% on the day. And the worst performing Nasdaq 100 component thus far on the day is Seagate Technology ( STX ), trading down 2.5%. Seagate Technology is showing a gain of 34.9% looking at the year to date performance.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 2.2%, and NetEase ( NTES ), trading up 2.6% on the day. And the worst performing Nasdaq 100 component thus far on the day is Seagate Technology ( STX ), trading down 2.5%. VIDEO: Nasdaq 100 Movers: STX, TSLA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 2.2%, and NetEase ( NTES ), trading up 2.6% on the day. In early trading on Tuesday, shares of Tesla ( TSLA ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.1%. And the worst performing Nasdaq 100 component thus far on the day is Seagate Technology ( STX ), trading down 2.5%.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 2.2%, and NetEase ( NTES ), trading up 2.6% on the day. And the worst performing Nasdaq 100 component thus far on the day is Seagate Technology ( STX ), trading down 2.5%. Seagate Technology is showing a gain of 34.9% looking at the year to date performance.
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7031.0
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2018-06-12 00:00:00 UTC
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Market Close Report: Historical high reached as NASDAQ Composite Index closes at 7,703.79.
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AAL
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https://www.nasdaq.com/articles/market-close-report-historical-high-reached-nasdaq-composite-index-closes-770379-2018-06
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nan
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nan
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Tuesday's session closes with the NASDAQ Composite Index reaching a historical high. The index closed at 7,703.79 up 43.86 for the day. The index had a previous high 7689.24331 on 06/06/2018. The total shares traded for the NASDAQ was over 1.99 billion.
Advancers stocks led declining by 1.18 to 1 ratio. There were 1615 advancers and 1363 decliners for the day. On the NASDAQ Stock Exchange 125 stocks reached a 52 week high and 13 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
The NASDAQ 100 index closed up .57% for the day; a total of 40.7 points. The current value is 7,209.18. American Airlines Group, Inc. ( AAL ) had the largest percent change down (-1.74%) while JD.com, Inc. ( JD ) had the largest percent change gain rising 4.62%.
The Dow Jones index closed down -.01% for the day; a total of -1.58 points. The current value is 25,320.73. Verizon Communications Inc. ( VZ ) had the largest percent change down (-.99%) while Home Depot, Inc. (The) ( HD ) had the largest percent change gain rising .84%.
NASDAQ Market Wrap
As of 6/12/2018 4:44:01 PM
NASDAQ COMPOSITE INDEX 7,703.79 milestone closes at 125 STOCKS REACHED A 52 WEEK HIGH 13 THOSE REACHING LOWS TOTALEDJD.com, Inc. [JD]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 4.62 ROSE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-1.74%) while JD.com, Inc. ( JD ) had the largest percent change gain rising 4.62%. Tuesday's session closes with the NASDAQ Composite Index reaching a historical high. The Dow Jones index closed down -.01% for the day; a total of -1.58 points.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-1.74%) while JD.com, Inc. ( JD ) had the largest percent change gain rising 4.62%. On the NASDAQ Stock Exchange 125 stocks reached a 52 week high and 13 those reaching lows totaled. NASDAQ Market Wrap As of 6/12/2018 4:44:01 PM NASDAQ COMPOSITE INDEX 7,703.79 milestone closes at 125 STOCKS REACHED A 52 WEEK HIGH 13 THOSE REACHING LOWS TOTALEDJD.com, Inc. [JD]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 4.62 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-1.74%) while JD.com, Inc. ( JD ) had the largest percent change gain rising 4.62%. On the NASDAQ Stock Exchange 125 stocks reached a 52 week high and 13 those reaching lows totaled. The NASDAQ 100 index closed up .57% for the day; a total of 40.7 points.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-1.74%) while JD.com, Inc. ( JD ) had the largest percent change gain rising 4.62%. On the NASDAQ Stock Exchange 125 stocks reached a 52 week high and 13 those reaching lows totaled. The NASDAQ 100 index closed up .57% for the day; a total of 40.7 points.
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7032.0
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2018-06-11 00:00:00 UTC
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7 ‘Super Cheap’ Stocks With Monster Upside
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AAL
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https://www.nasdaq.com/articles/7-super-cheap-stocks-with-monster-upside-2018-06-11
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
You don't need to spend big to pick up premium stock picks … not when you can use the markets' current volatility to make some savvy investments in cheap stocks.
The seven stocks I outline below each appears seriously undervalued. Don't just take my word for it - using TipRanks data , I made sure that all these cheap stocks have a 'Strong Buy' analyst consensus rating. They also have monster upside potential from their current share price to average analyst price target.
As this is only based on ratings from the last three months, you can get a pretty good idea of each company's outlook for the rest of 2018.
This is because, at the end of the day, the market is still primed to move higher. Take the recent report from Tony Dwyer, chief market strategist at Canaccord Genuity as an example. Dwyer has just boosted his fiscal 2018 S&P 500 operating earnings forecasts to $160 a share from $155 previously.
"I'm really having a hard time thinking that that's going to be too high" Dwyer told CNBC. He explained: "There's only one thing that really drives the market … You only have to figure out which direction that earnings are going."
7 Killer Stock Picks for the Second Half of 2018
So with this bullish analysis in mind, let's take a closer look at these seven cheap stocks now:
Cheap Stocks to Buy: TherapeuticsMD (TXMD)
Source: Shutterstock
TherapeuticsMD, Inc. (NYSE: TXMD ) is a unique, innovative healthcare company focused on female healthcare. It is on the cusp of big things with its newly-approved drug Imvexxy. This is a treatment for moderate-to-severe pain due to menopause. However, the current share price doesn't reflect this.
Oppenheimer's Jay Olson is very impressed by TXMD's "compelling launch plan." He has just reiterated his buy rating with a $12 price target- indicating substantial upside potential of 67%. "The innovative launch plan leverages what we consider Imvexxy's best-in-class profile based on safety, efficacy and convenience" writes Olson.
According to guidelines, patients should begin treatment at the lowest available dose, meaning that Imvexxy should now become the first-line treatment of choice for most dyspareunia cases. Olson believes that TXMD has the capabilities in place to bring this vision into reality. Plus the high dissatisfaction with current treatments means Imvexxy should experience a speedy uptake.
Olson concludes:
"We see TXMD as an underappreciated asset, and our Outperform rating is based on the potential for the company to successfully penetrate and expand the market for treatment of menopausal symptoms with two unique, wholly owned products (TX-004HR and TX-001HR) while an existing prenatal supplement business provides a commercial foundation."
The Street shares this bullish take on TXMD stock. In the last three months, TXMD has received five consecutive buy ratings. Meanwhile, its average analyst price target of $16.40 suggests 128% upside potential from current levels.
Cheap Stocks to Buy: T-Mobile US (TMUS)
Source: Shutterstock
T-Mobile US, Inc. (NYSE: TMUS ) is the third-largest U.S. wireless carrier. The big question right now is whether its $26.5 billion merger with Sprint will go ahead? Although both parties have approved the deal, it still requires regulatory approval. And given that these companies are two horizontal competitors, this won't be easy.
Oppenheimer's Timothy Horan describes the potential merger as "transformational." He writes: "TMUS/S can together build out the highest capacity/coverage 5G network while achieving significant cost synergies." Indeed, the combined entity could generate annual synergy savings of about $6 billion.
However the crucial point is that TMUS represents an attractive investing proposition, deal or no deal. And that's why this stock seems under-priced right now. Even without Sprint, "T-Mobile's revenue margin expansion, coupled with ongoing subscriber momentum, supports our Outperform rating. TMUS is expanding geographically and is aiming to aggressively deploy its 600 MHz spectrum for increased coverage/capacity" writes Horan. He has a $90 price target on TMUS (56% upside potential).
20 Best S&P 500 Stocks to Buy for the Second Half
And we can get a better idea of the figures from Citi analyst Michael Rollins . With a deal he sees upside potential of 51% - but even without a deal he predicts 39% upside potential for TMUS stock. In the last three months, seven analysts have published TMUS buy ratings with just one hold rating. The average analyst price target of $77 suggests 33% upside potential.
Cheap Stocks to Buy: Verastem (VSTM)
Source: Shutterstock
"Strong Buy" biotech Verastem, Inc. (NASDAQ: VSTM ) wants to improve outcomes for patients with cancer. The company is on a roll : it has just announced positive data for its two lead assets, Duvelisib for chronic lymphatic leukemia and Defactinib; and entered into a lucrative partnering agreement in Japan. This is an exclusive licensing agreement for Duvelisib with Japan's Yakult. VSTM will receive $10M upfront, $90M on certain milestones, and potentially double-digit royalties on future Duvelisib sales in Japan.
"Duvelisib is differentiated and provides potentially improved quality of care in patients with relapsed or refractory hematologic cancers" cheers B.Riley FBR's George Zavoico . He has a very bullish price target on the stock of $17 (174% upside potential). The drug sets itself apart from "alternative treatment options based on its efficacy, safety profile and ability to elicit responses in patients intolerant to earlier lines of therapy."
As for timelines, Verastem plans to launch Duvelisib in US in 4Q18. This is only if FDA approval is granted on or before Oct. 5 PDUFA date. The PDUFA date is the deadline for the FDA to approve or reject the drug. So keep an eye out because an approval (especially before the PDUFA date) could be a major catalyst for the stock.
In total, Verastem has scored six consecutive buy ratings in the last three months. These ratings come with an average price target of $13.33 (155% upside potential).
Cheap Stocks to Buy: Kratos Defense (KTOS)
Source: Kratos Defense & Security Solutions
If you are looking to diversify your portfolio, I recommend considering specialized national security company Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS ). This is a great- and cheap- way to get exposure to the booming drone industry. Indeed, the company is experiencing huge growth in its drone segment, known as UAS. In Q1, the UAS delivered stellar growth of 78%- and has won every high-performance tactical UAS opportunity it has pursued.
"Important to the investment thesis is that much of the rapid projected UAS growth comes from programs under contract. There is a high degree of visibility regarding our expectation that the segment can grow in excess of 30% annually through 2019, with growth in excess of this possible as tactical programs pivot to full run rate production in the 2020-2021 timeframe" explains Noble Financial's Ben Klieve .
He has a $15 price target on the stock. "We believe Kratos is creating meaningful value in excess of current share prices, and believe the rapid growth projected from the UAS segment should justify a higher stock valuation" the analyst states.
7 A-Rated Stocks to Buy for the Second Half of 2018
ln the last three months four analysts have published buy ratings on the stock. So no hold or sell ratings here. Plus these analysts are predicting (on average) 31% upside potential from current levels.
Cheap Stocks to Buy: American Airlines (AAL)
Source: Shutterstock
Top Imperial Capital analyst Michael Derchin sees further room for upside over at American Airlines Group Inc. (NASDAQ: AAL ). He has just upgraded AAL from Hold to Buy, and shifted his price target from $49 to $56. This indicates sizeable upside potential of 26%. So why the sentiment shift? Well Derchin is hoping that AAL will announce capacity reductions in the July earnings call. This would be for the post-labor day 'shoulder period.'
He sees three key reasons why this would be a smart move for AAL. Namely: "1) higher fuel prices pressuring pre-margins, given AAL is 100% unhedged, 2) weaker demand in the off-peak periods with capacity reductions likely to improve AAL's pricing power, in our view, and 3) management bonuses tied to AAL reaching at least $3bn in pre-tax income, which we now estimate AAL to reach assuming it reduces post-labor day capacity."
Specifically, Derchin is now estimating that AAL limits capacity growth to 1% in FY19, consistent with FY17 levels. Overall this 'Strong Buy' stock has received five recent buy ratings versus just one hold rating. With an average price target of $58.20, analysts are predicting big upside potential of 32%.
Cheap Stocks to Buy: Lam Research (LRCX)
Source: shutterstock
Don't let headline news distract you from the big investing potential in Lam Research Corporation (NASDAQ: LRCX ). This semiconductor equipment manufacturer is set to enjoy "secular trends like the increasing memory content in storage, mobile and eventually autos." This is according to Cowen & Co analyst Krish Sankar . He sees prices exploding 52% to $285 in the next 12 months.
Sankar calculates that sales for memory tools will increase by 8% (compounded annually) over the next five years. Plus "etch"- one of Lam's key products- are rising as a percentage of the memory tool market. He explains "etch as a % of WFE [wafer fab equipment] spend has grown from 14% in 2012 to over 20% last year."
Even the memory market situation is better than you may think. "While the mobile market may be saturated from a unit standpoint, the average DRAM content is growing (possibly up to 8GB), especially as smartphone makers embrace augmented reality applications. Enterprise servers have started to increase the mix of SSD (Solid State Drives) powered by 3D NAND technology. All of this implies increased demand for equipment, especially deposition and etching tools, playing right into LRCX's sweet spot" writes Sankar.
6 Trillion-Dollar Stocks That Are Already Dominating 2018
Taking a step back, we can see that LRCX has received 14 consecutive buy ratings in just three months. These analysts have an average price target on Lam of $275 (49% upside potential).
Cheap Stocks to Buy: IAC/InterActiveCorp (IAC)
Source: Rob Thurman Via Flickr
Media giant IAC/InterActiveCorp (NASDAQ: IAC ) owns over 150 brands including Match Group Inc (NASDAQ: MTCH ), Angi Homeservices Inc (NASDAQ: ANGI ) and Tinder. And with 100% Street support and sizeable upside potential of over 20%, IAC is a top stock to track right now.
Indeed, a Top 50 analyst - Oppenheimer's Jason Helfstein -has just boosted his IAC price target from $175 to $200 (26% upside potential). He cites 'higher estimates for all segments of (MTCH/ANGI/Stub)' and particularly robust performance at video sharing site Vimeo.
"IAC operates what we consider an undervalued portfolio of Internet assets, focused on the Search, Online Dating, Local and Media verticals. The company has aggressively returned capital to shareholders through buybacks and dividends, and we expect this behavior to continue." As a result, Helfstein concludes that "IAC [is] the most attractive vehicle to gain exposure to ANGI/MTCH."
TipRanks offers investors the latest insight into eight different sectors by tracking the activity of 4,700 analysts, 5,000 financial bloggers and even 37,000 corporate insiders. As of this writing, Harriet Lefton did not hold a position in any of the aforementioned securities.
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The post 7 'Super Cheap' Stocks With Monster Upside 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Cheap Stocks to Buy: American Airlines (AAL) Source: Shutterstock Top Imperial Capital analyst Michael Derchin sees further room for upside over at American Airlines Group Inc. (NASDAQ: AAL ). He has just upgraded AAL from Hold to Buy, and shifted his price target from $49 to $56. Well Derchin is hoping that AAL will announce capacity reductions in the July earnings call.
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Cheap Stocks to Buy: American Airlines (AAL) Source: Shutterstock Top Imperial Capital analyst Michael Derchin sees further room for upside over at American Airlines Group Inc. (NASDAQ: AAL ). He has just upgraded AAL from Hold to Buy, and shifted his price target from $49 to $56. Well Derchin is hoping that AAL will announce capacity reductions in the July earnings call.
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Cheap Stocks to Buy: American Airlines (AAL) Source: Shutterstock Top Imperial Capital analyst Michael Derchin sees further room for upside over at American Airlines Group Inc. (NASDAQ: AAL ). He has just upgraded AAL from Hold to Buy, and shifted his price target from $49 to $56. Well Derchin is hoping that AAL will announce capacity reductions in the July earnings call.
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He has just upgraded AAL from Hold to Buy, and shifted his price target from $49 to $56. Cheap Stocks to Buy: American Airlines (AAL) Source: Shutterstock Top Imperial Capital analyst Michael Derchin sees further room for upside over at American Airlines Group Inc. (NASDAQ: AAL ). Well Derchin is hoping that AAL will announce capacity reductions in the July earnings call.
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7033.0
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2018-06-11 00:00:00 UTC
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How The Parts Add Up: EPS Targets $35
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AAL
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https://www.nasdaq.com/articles/how-parts-add-eps-targets-35-2018-06-11
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nan
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nan
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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 WisdomTree U.S. Earnings 500 Fund ETF (Symbol: EPS), we found that the implied analyst target price for the ETF based upon its underlying holdings is $35.16 per unit.
With EPS trading at a recent price near $31.62 per unit, that means that analysts see 11.20% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of EPS's underlying holdings with notable upside to their analyst target prices are Dish Network Corp (Symbol: DISH), American Airlines Group Inc (Symbol: AAL), and Western Digital Corp (Symbol: WDC). Although DISH has traded at a recent price of $32.08/share, the average analyst target is 59.19% higher at $51.07/share. Similarly, AAL has 44.35% upside from the recent share price of $43.11 if the average analyst target price of $62.23/share is reached, and analysts on average are expecting WDC to reach a target price of $115.94/share, which is 40.33% above the recent price of $82.62. Below is a twelve month price history chart comparing the stock performance of DISH, AAL, and WDC:
Below is a summary table of the current analyst target prices discussed above:
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is a twelve month price history chart comparing the stock performance of DISH, AAL, and WDC: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of EPS's underlying holdings with notable upside to their analyst target prices are Dish Network Corp (Symbol: DISH), American Airlines Group Inc (Symbol: AAL), and Western Digital Corp (Symbol: WDC). Similarly, AAL has 44.35% upside from the recent share price of $43.11 if the average analyst target price of $62.23/share is reached, and analysts on average are expecting WDC to reach a target price of $115.94/share, which is 40.33% above the recent price of $82.62.
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Three of EPS's underlying holdings with notable upside to their analyst target prices are Dish Network Corp (Symbol: DISH), American Airlines Group Inc (Symbol: AAL), and Western Digital Corp (Symbol: WDC). Similarly, AAL has 44.35% upside from the recent share price of $43.11 if the average analyst target price of $62.23/share is reached, and analysts on average are expecting WDC to reach a target price of $115.94/share, which is 40.33% above the recent price of $82.62. Below is a twelve month price history chart comparing the stock performance of DISH, AAL, and WDC: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Similarly, AAL has 44.35% upside from the recent share price of $43.11 if the average analyst target price of $62.23/share is reached, and analysts on average are expecting WDC to reach a target price of $115.94/share, which is 40.33% above the recent price of $82.62. Below is a twelve month price history chart comparing the stock performance of DISH, AAL, and WDC: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of EPS's underlying holdings with notable upside to their analyst target prices are Dish Network Corp (Symbol: DISH), American Airlines Group Inc (Symbol: AAL), and Western Digital Corp (Symbol: WDC).
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Three of EPS's underlying holdings with notable upside to their analyst target prices are Dish Network Corp (Symbol: DISH), American Airlines Group Inc (Symbol: AAL), and Western Digital Corp (Symbol: WDC). Similarly, AAL has 44.35% upside from the recent share price of $43.11 if the average analyst target price of $62.23/share is reached, and analysts on average are expecting WDC to reach a target price of $115.94/share, which is 40.33% above the recent price of $82.62. Below is a twelve month price history chart comparing the stock performance of DISH, AAL, and WDC: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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7034.0
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2018-06-10 00:00:00 UTC
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American Airlines CEO Doug Parker Is Deep in a Mess of His Own Making
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AAL
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https://www.nasdaq.com/articles/american-airlines-ceo-doug-parker-deep-mess-his-own-making-2018-06-10
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nan
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nan
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It can't be fun to be American Airlines (NASDAQ: AAL) CEO Doug Parker right now. His company has experienced massive nonfuel cost increases over the past few years. Now that the carrier is finally reining in controllable costs, fuel prices have surged, creating a new headache. Meanwhile, American has the weakest balance sheet of any major U.S. airline.
At a major industry event last week, Parker reiterated his stance that industry capacity growth will slow and airfares will rise to offset the increase in fuel costs. However, he acknowledged that this process wasn't likely to play out right away.
Indeed, Parker's protege Scott Kirby -- now the president of United Continental (NYSE: UAL) -- is pushing ahead with an aggressive growth plan despite recent fuel price increases. The threat from United's growth will make it hard for American Airlines to fully offset its rising fuel bill.
United Continental changes course
For many years after the United Airlines-Continental Airlines merger, United was arguably the strongest proponent of "capacity discipline" in the U.S. airline industry. As fuel prices rocketed higher after the Great Recession, United Airlines maintained a very slow growth rate to ensure that it could pass its rising costs through to customers. Even when fuel prices plunged in 2014 and 2015, United continued to grow at a very modest rate.
Everything changed after United Airlines poached Kirby from American. Kirby believes that in the long run, United must regain its "natural" market share -- particularly in smaller cities, where airfares are high -- to improve its profitability and competitiveness.
As a result, United plans to increase its capacity by about 5% in 2018, with a similar growth rate in 2019 and 2020. That's more than three times United's growth rate for the 2015-2016 period. Much of this growth will be focused in the carrier's three main mid-continent hubs of Chicago, Houston, and Denver.
No good choices for American Airlines
Thus far, Kirby hasn't shown any inclination to scale back United's growth, even though the price of jet fuel has risen by more than $0.20 per gallon since he first revealed the carrier's aggressive growth plan in January. That's putting American Airlines in quite a bind.
On the one hand, American Airlines would probably like to cut capacity to help it push fares higher. After all, its adjusted pre-tax margin fell to 9.1% last year from 12.6% a year earlier and it is on track to post another substantial margin decline in 2018 due to rising fuel costs.
On the other hand, cutting capacity would play right into United's hands. American Airlines competes directly with United Airlines in Chicago, and its Dallas-Fort Worth hub competes for much of the same connecting traffic that United is targeting in Houston. Capacity cuts by American would help United Airlines gain market share and become a more formidable rival.
As a result, American Airlines has been forced to err on the side of leaving too much capacity in the market and absorbing the hit to its profit margin. This is probably the right move in the long run, but that doesn't make it any less painful.
American Airlines needs more flexibility
American's massive debt load could become a big problem if the competitive battle with United Airlines continues unabated through 2020. American Airlines frittered away billions of dollars on share buybacks over the past few years, causing its debt to swell to an unhealthy level.
As of the end of 2017, American Airlines had more than $25 billion of debt and capital lease obligations. Its pension plan was also underfunded by $7.5 billion. To make matters worse, nearly half of its debt matures by 2021.
Right now, the economy is booming. This has allowed American Airlines to remain decently profitable despite its woes. It has also had no trouble rolling over its debt this year.
However, if there is a recession in the next few years and United opts to keep growing, American would likely be forced to cede market share to its rival to protect its profitability and ensure that it can meet its debt and pension obligations. That's exactly the kind of trade-off that management has been trying to avoid. Unfortunately, the company's reckless capital allocation decisions of the past few years could put it in a bind during the next downturn.
10 stocks we like better than American Airlines Group
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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.
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*Stock Advisor returns as of June 4, 2018
Adam Levine-Weinberg 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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It can't be fun to be American Airlines (NASDAQ: AAL) CEO Doug Parker right now. Indeed, Parker's protege Scott Kirby -- now the president of United Continental (NYSE: UAL) -- is pushing ahead with an aggressive growth plan despite recent fuel price increases. As fuel prices rocketed higher after the Great Recession, United Airlines maintained a very slow growth rate to ensure that it could pass its rising costs through to customers.
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It can't be fun to be American Airlines (NASDAQ: AAL) CEO Doug Parker right now. At a major industry event last week, Parker reiterated his stance that industry capacity growth will slow and airfares will rise to offset the increase in fuel costs. Indeed, Parker's protege Scott Kirby -- now the president of United Continental (NYSE: UAL) -- is pushing ahead with an aggressive growth plan despite recent fuel price increases.
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It can't be fun to be American Airlines (NASDAQ: AAL) CEO Doug Parker right now. United Continental changes course For many years after the United Airlines-Continental Airlines merger, United was arguably the strongest proponent of "capacity discipline" in the U.S. airline industry. No good choices for American Airlines Thus far, Kirby hasn't shown any inclination to scale back United's growth, even though the price of jet fuel has risen by more than $0.20 per gallon since he first revealed the carrier's aggressive growth plan in January.
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It can't be fun to be American Airlines (NASDAQ: AAL) CEO Doug Parker right now. As fuel prices rocketed higher after the Great Recession, United Airlines maintained a very slow growth rate to ensure that it could pass its rising costs through to customers. As a result, United plans to increase its capacity by about 5% in 2018, with a similar growth rate in 2019 and 2020.
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7035.0
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2018-06-06 00:00:00 UTC
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Nasdaq 100 Movers: FAST, TSLA
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-fast-tsla-2018-06-06
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nan
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nan
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In early trading on Wednesday, shares of Tesla ( TSLA ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.9%. Year to date, Tesla has lost about 1.9% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Fastenal ( FAST ), trading down 4.2%. Fastenal is lower by about 4.9% looking at the year to date performance.
Two other components making moves today are American Airlines Group ( AAL ), trading down 2.5%, and Monster Beverage Corp ( MNST ), trading up 2.6% on the day.
VIDEO: Nasdaq 100 Movers: FAST, TSLA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 2.5%, and Monster Beverage Corp ( MNST ), trading up 2.6% on the day. And the worst performing Nasdaq 100 component thus far on the day is Fastenal ( FAST ), trading down 4.2%. VIDEO: Nasdaq 100 Movers: FAST, TSLA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 2.5%, and Monster Beverage Corp ( MNST ), trading up 2.6% on the day. And the worst performing Nasdaq 100 component thus far on the day is Fastenal ( FAST ), trading down 4.2%. VIDEO: Nasdaq 100 Movers: FAST, TSLA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 2.5%, and Monster Beverage Corp ( MNST ), trading up 2.6% on the day. In early trading on Wednesday, shares of Tesla ( TSLA ) 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 Fastenal ( FAST ), trading down 4.2%.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 2.5%, and Monster Beverage Corp ( MNST ), trading up 2.6% on the day. In early trading on Wednesday, shares of Tesla ( TSLA ) 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 Fastenal ( FAST ), trading down 4.2%.
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7036.0
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2018-06-06 00:00:00 UTC
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Delta Cuts Q2 Guidance: Can American and United Hold the Line?
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AAL
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https://www.nasdaq.com/articles/delta-cuts-q2-guidance-can-american-and-united-hold-line-2018-06-06
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nan
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nan
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Two months ago, Delta Air Lines (NYSE: DAL) projected that its second quarter pre-tax margin would decline to between 14% and 16% -- down from 17.2% a year earlier -- largely due to a surge in fuel prices that began last summer. Nevertheless, management still expected double-digit earnings-per-share growth, thanks to the corporate tax cut windfall.
At its investor conference on Wednesday, Delta warned that its Q2 pre-tax margin slump would be steeper than that -- and again, it's pointing to rising jet fuel prices as the culprit. This suggests that American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) could also be at risk of missing their earnings forecasts this quarter.
The oil price spike creates headwinds
In Q2 2017, Delta paid an average of just $1.66 per gallon for jet fuel. By last quarter, that had risen to $2.01 per gallon, and initially, the airline expected to pay between $2.07 and $2.12 per gallon in the current quarter. Based on that guidance, the increase in fuel costs would have represented a greater than 4 percentage point pre-tax margin headwind this quarter.
However, crude oil and jet fuel prices continued to surge higher between early April and late May, although prices have moderated in the past couple of weeks. As a result, Delta now expects its average fuel price for the quarter to land in the $2.20 to $2.25 per gallon range.
Delta Air Lines' non-fuel unit cost growth is also trending toward the high end of the company's guidance range for the quarter at 3%. On the flip side, revenue per available seat mile (RASM) trends remain strong. Delta now expects RASM growth in the upper half of its original 3% to 5% guidance range this quarter.
The tweaks to Delta's unit revenue and non-fuel unit cost forecasts roughly offset one another. However, the increase in its fuel cost estimate represents an incremental margin headwind of more than 1 percentage point. As a result, Delta has reduced its adjusted pre-tax margin guidance from a 14% to 16% range to a 13% to 14% range. It now expects to report adjusted earnings per share in the $1.65 to $1.75 range this quarter -- well below its original guidance range of $1.80 to $2.00, but still up slightly from last year's Q2 adjusted EPS of $1.64.
Not much to worry about here for Delta
Following this guidance update, Delta Air Lines shares slipped about 2% on Wednesday, as of 12 p.m. ET. That said, there was nothing shocking about the cut in its earnings forecast. Delta's management has consistently said that it takes up to a year to recoup fuel price increases in the form of higher fares. Moreover, the carrier still expects to post a double-digit pre-tax margin this quarter.
Delta's solid mid-single-digit unit revenue growth shows that it has pricing power, and is already using it to offset its rising fuel costs. Furthermore, its investor presentation hinted at potential plans to cut capacity to boost unit revenue. Management will evaluate revenue and fuel cost trends over the next month and then implement changes to the fall schedule if necessary.
The only item of real concern was the increase in the carrier's non-fuel unit cost forecast. Yet Delta is sticking with its full-year guidance for its non-fuel unit costs to land better flat and up 2%. That means it expects non-fuel unit costs to be flat or down year over year in the second half of 2018.
The stakes are higher at American and United
In recent years, most major airlines stopped hedging their fuel costs. As a result, American Airlines and United Airlines are likely facing the same pressures on their Q2 results as Delta, relative to the forecasts they gave in April.
However, there's one key difference: American and United are far less profitable than Delta Air Lines. Indeed, American Airlines' initial Q2 guidance called for a 7.5% to 9.5% pre-tax margin. United's pre-tax margin guidance range wasn't much better, at 9% to 11%. Both carriers also have weaker balance sheets than Delta, so they have less room for error.
So far, American and United have sent mixed signals about their ability to make up for rising fuel costs. American Airlines CEO Doug Parker recently said that airfares would go up in response to rising fuel prices, but not in the near term. This suggests that American Airlines isn't about to soar past its Q2 unit revenue forecast.
Meanwhile, United Airlines President Scott Kirby affirmed the company's full-year EPS forecast during an investor presentation in late May. Yet this forecast assumes a solid improvement in the company's earnings trajectory in the back half of the year. That will be hard to achieve if oil prices remain at recent levels, particularly since United has shown no interest in slowing its growth.
Delta Air Lines stock declined more than its peers after the guidance update on Wednesday. That said, American Airlines and United Airlines are far more vulnerable if oil prices remain high for an extended period of time.
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Adam Levine-Weinberg owns shares of Delta Air Lines. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This suggests that American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) could also be at risk of missing their earnings forecasts this quarter. Two months ago, Delta Air Lines (NYSE: DAL) projected that its second quarter pre-tax margin would decline to between 14% and 16% -- down from 17.2% a year earlier -- largely due to a surge in fuel prices that began last summer. At its investor conference on Wednesday, Delta warned that its Q2 pre-tax margin slump would be steeper than that -- and again, it's pointing to rising jet fuel prices as the culprit.
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This suggests that American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) could also be at risk of missing their earnings forecasts this quarter. Based on that guidance, the increase in fuel costs would have represented a greater than 4 percentage point pre-tax margin headwind this quarter. Delta Air Lines' non-fuel unit cost growth is also trending toward the high end of the company's guidance range for the quarter at 3%.
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This suggests that American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) could also be at risk of missing their earnings forecasts this quarter. Two months ago, Delta Air Lines (NYSE: DAL) projected that its second quarter pre-tax margin would decline to between 14% and 16% -- down from 17.2% a year earlier -- largely due to a surge in fuel prices that began last summer. Delta Air Lines' non-fuel unit cost growth is also trending toward the high end of the company's guidance range for the quarter at 3%.
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This suggests that American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) could also be at risk of missing their earnings forecasts this quarter. Delta Air Lines' non-fuel unit cost growth is also trending toward the high end of the company's guidance range for the quarter at 3%. Delta now expects RASM growth in the upper half of its original 3% to 5% guidance range this quarter.
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7037.0
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2018-06-06 00:00:00 UTC
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Southwest Airlines (LUV) Stock Declines 22% YTD: Here's Why
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-luv-stock-declines-22-ytd%3A-heres-why-2018-06-06
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nan
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nan
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Shares of Southwest Airlines Co.LUV have lost 22.2% so far this year, underperforming its industry 's decline of 11.1%.
Why the Lackluster Price Performance?
Southwest Airlines has faced multiple headwinds this year. In April, a passenger on its flight (1380) died due to the mid-air engine explosion. This incident adversely impacted travel demand at Southwest Airlines, resulting in soft bookings.
Moreover, Southwest Airlines, like its fellow-airline operators Delta Air Lines DAL , American Airlines Group Inc. AAL and JetBlue Airways Corp. JBLU , has been hit hard by the rise in oil prices .
This low-cost carrier issued a lackluster view for second-quarter unit revenues due to weak bookings and rising fuel costs. The company expects operating revenue per available seat mile (RASM) to decline around 3% year over year (the earlier guidance had called for a decline in the 1-3% range).
With fuel prices on the rise, the Dallas-based carrier trimmed its capacity (measured in available seat mile or ASMs) growth view. It now anticipates second-quarter capacity to increase approximately 3.5%. Earlier, the company had called for 3.5-4% growth in the metric.
Additionally, the company projects ASM in the low 4% range compared with its prior forecast in the low 5% range. Also, for the latter half of the year, ASM is anticipated to expand approximately 6% year over year, lower than its earlier view of a rise in the low 7% range.
Other Unfavorable Readings
The Zacks Consensus Estimate for second-quarter and full-year 2018 earnings moved south 14.7% and 9%, respectively, in the last 60 days. This reflects investor's pessimism surrounding the stock.
Furthermore, the stock has a VGM Score of C, which highlights its unattractiveness. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores.
Such a score allows investors to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score.
Undoubtedly, the above negatives substantiate the company's Zacks Rank #5 (Strong Sell).
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Southwest Airlines Co. (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Moreover, Southwest Airlines, like its fellow-airline operators Delta Air Lines DAL , American Airlines Group Inc. AAL and JetBlue Airways Corp. JBLU , has been hit hard by the rise in oil prices . Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. This low-cost carrier issued a lackluster view for second-quarter unit revenues due to weak bookings and rising fuel costs.
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Moreover, Southwest Airlines, like its fellow-airline operators Delta Air Lines DAL , American Airlines Group Inc. AAL and JetBlue Airways Corp. JBLU , has been hit hard by the rise in oil prices . Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. This low-cost carrier issued a lackluster view for second-quarter unit revenues due to weak bookings and rising fuel costs.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, Southwest Airlines, like its fellow-airline operators Delta Air Lines DAL , American Airlines Group Inc. AAL and JetBlue Airways Corp. JBLU , has been hit hard by the rise in oil prices . The company expects operating revenue per available seat mile (RASM) to decline around 3% year over year (the earlier guidance had called for a decline in the 1-3% range).
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Moreover, Southwest Airlines, like its fellow-airline operators Delta Air Lines DAL , American Airlines Group Inc. AAL and JetBlue Airways Corp. JBLU , has been hit hard by the rise in oil prices . Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. With fuel prices on the rise, the Dallas-based carrier trimmed its capacity (measured in available seat mile or ASMs) growth view.
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7038.0
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2018-06-06 00:00:00 UTC
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Noteworthy Wednesday Option Activity: AAL, V, MGM
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AAL
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https://www.nasdaq.com/articles/noteworthy-wednesday-option-activity-aal-v-mgm-2018-06-06
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 30,852 contracts have traded so far, representing approximately 3.1 million underlying shares. That amounts to about 51.9% of AAL's average daily trading volume over the past month of 5.9 million shares. Especially high volume was seen for the $45 strike call option expiring June 08, 2018 , with 5,021 contracts trading so far today, representing approximately 502,100 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $45 strike highlighted in orange:
Visa Inc (Symbol: V) options are showing a volume of 34,255 contracts thus far today. That number of contracts represents approximately 3.4 million underlying shares, working out to a sizeable 50.4% of V's average daily trading volume over the past month, of 6.8 million shares. Particularly high volume was seen for the $128 strike put option expiring June 08, 2018 , with 3,015 contracts trading so far today, representing approximately 301,500 underlying shares of V. Below is a chart showing V's trailing twelve month trading history, with the $128 strike highlighted in orange:
And MGM Resorts International (Symbol: MGM) options are showing a volume of 44,576 contracts thus far today. That number of contracts represents approximately 4.5 million underlying shares, working out to a sizeable 49.1% of MGM's average daily trading volume over the past month, of 9.1 million shares. Particularly high volume was seen for the $32 strike call option expiring July 20, 2018 , with 10,563 contracts trading so far today, representing approximately 1.1 million underlying shares of MGM. Below is a chart showing MGM's trailing twelve month trading history, with the $32 strike highlighted in orange:
For the various different available expirations for AAL options , V options , or MGM 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $45 strike call option expiring June 08, 2018 , with 5,021 contracts trading so far today, representing approximately 502,100 underlying shares of AAL. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 30,852 contracts have traded so far, representing approximately 3.1 million underlying shares. That amounts to about 51.9% of AAL's average daily trading volume over the past month of 5.9 million shares.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 30,852 contracts have traded so far, representing approximately 3.1 million underlying shares. That amounts to about 51.9% of AAL's average daily trading volume over the past month of 5.9 million shares. Especially high volume was seen for the $45 strike call option expiring June 08, 2018 , with 5,021 contracts trading so far today, representing approximately 502,100 underlying shares of AAL.
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 30,852 contracts have traded so far, representing approximately 3.1 million underlying shares. That amounts to about 51.9% of AAL's average daily trading volume over the past month of 5.9 million shares. Especially high volume was seen for the $45 strike call option expiring June 08, 2018 , with 5,021 contracts trading so far today, representing approximately 502,100 underlying shares of AAL.
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Especially high volume was seen for the $45 strike call option expiring June 08, 2018 , with 5,021 contracts trading so far today, representing approximately 502,100 underlying shares of AAL. Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in American Airlines Group Inc (Symbol: AAL), where a total of 30,852 contracts have traded so far, representing approximately 3.1 million underlying shares. That amounts to about 51.9% of AAL's average daily trading volume over the past month of 5.9 million shares.
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7039.0
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2018-06-05 00:00:00 UTC
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Will the Airline ETF Crash on Oil Price Jump?
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AAL
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https://www.nasdaq.com/articles/will-airline-etf-crash-oil-price-jump-2018-06-05
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nan
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nan
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Airline stocks have been flying low on the bourses this year with the US Global Jets ETFJETS having lost about 8% year to date (as of Jun 1). The first-quarter earnings season was a mixed bag for major airlines, a tick-up in oil prices being a downer.
Oil prices play a crucial role in the airlines' cost structure. Since crude prices have steady this year as evident from the 9.8% year-to-date jump in WTI crude ETF United States OilUSO , airlines should be on guard. Probably, this is why global airlines recently cut their forecast for industry profits in 2018.
The International Air Transport Association (IATA) indicated that the industry is expected to register $33.8 billion in profits this year, down 12% from the prior forecast of $38.4 billion. Other factors that led to the guidance cut were increasing interest rates and a spike in geopolitical tensions.
Inside the Looming Crisis
IATA expects oil price to average $70 a barrel this year, up from $54.90 last year and its earlier guidance of $60. Lower-than-expected crude inventory built , U.S. sanctions on Iran and Venezuela and the result of the ongoing OPEC output cut boosted oil prices significantly this year (read: Trump, Tariff & Geopolitics Lead May: 10 Top ETF Stories ).
Per IATA, profit forecast for 2018 will likely be 4.1% of about $750 billion sales. Since 4% is not a compelling margin, IATA believes that the industry is in a delicate condition. Moreover, the ongoing trade tensions are another cause of concern as these could result in a drop in passenger count or air cargo.
Notably, the United States and China announced tariffs on each other. Plus, U.S. tariffs on metal imports from the EU, Canada and Mexico were put into effect on Jun 1, as exemption offered earlier in the year lapsed. Needless to say, the United States now needs to be prepared for a chain of tit-for-tat tariffs on a range of products (read: Trade War Tensions Flare Up: Must-Watch ETFs & Stocks ).
Inside Our Earnings Prediction
Against this backdrop, let's take a look at how key airline stocks' earnings prediction is shaping up. According to the our methodology, a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) when combined with a positive Earnings ESP increases our chances of predicting an earnings beat, while Zacks Rank #4 or 5 (Sell rated) stocks are best avoided.
United Continental HoldingsUAL has a Zacks Rank #3 and an Earnings ESP of -0.11%, indicating lesser chances of beating estimates in Q2.You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Low-cost carrier Southwest Airlines Co.LUV has a Zacks Rank #4 and an Earnings ESP of -1.85%, which diminish the possibility of a beat this quarter.
JetBlue Airways CorporationJBLU has a Zacks Rank #4 and an Earnings ESP of -11.39%, implying that a beat cannot be predicted this quarter.
Delta Air Lines Inc.DAL has a Zacks Rank #3 and an Earnings ESP of +0.53%, indicating reasonable chances of a beat.
American Airlines Group Inc. 's AAL has a Zacks Rank #3 and an Earnings ESP of +2.31%, again showing higher chances of beating estimates.
Alaska Air Group Inc.ALK has a Zacks Rank #3 and an Earnings ESP of +0.36%, implying fair chances of an earnings beat in Q2.
From the afore-mentioned trend, we clearly see that though challenges linger in the space, all airlines do not face heightened risk. Oil prices need to go much higher before posing a serious threat to the industry. In this regard, investors can take a look at the pure-play airline ETF JETS.
JETS in Focus
The $98.8 million-fund holds more than 30 securities in its portfolio and is concentrated on a few individual securities. United Continental (12.84%), Delta Airlines (12.51%), Southwest Airlines (11.21%) and American Airlines (10.78%) are the top four elements in the basket. The product charges 60 bps in fees (see all industrials ETFs here).
Want key ETF info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
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Southwest Airlines Co. (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
US-OIL FUND LP (USO): ETF Research Reports
US GLOBAL JETS (JETS): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc. 's AAL has a Zacks Rank #3 and an Earnings ESP of +2.31%, again showing higher chances of beating estimates. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report US-OIL FUND LP (USO): ETF Research Reports US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. Lower-than-expected crude inventory built , U.S. sanctions on Iran and Venezuela and the result of the ongoing OPEC output cut boosted oil prices significantly this year (read: Trump, Tariff & Geopolitics Lead May: 10 Top ETF Stories ).
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American Airlines Group Inc. 's AAL has a Zacks Rank #3 and an Earnings ESP of +2.31%, again showing higher chances of beating estimates. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report US-OIL FUND LP (USO): ETF Research Reports US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. According to the our methodology, a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) when combined with a positive Earnings ESP increases our chances of predicting an earnings beat, while Zacks Rank #4 or 5 (Sell rated) stocks are best avoided.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report US-OIL FUND LP (USO): ETF Research Reports US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. American Airlines Group Inc. 's AAL has a Zacks Rank #3 and an Earnings ESP of +2.31%, again showing higher chances of beating estimates. According to the our methodology, a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) when combined with a positive Earnings ESP increases our chances of predicting an earnings beat, while Zacks Rank #4 or 5 (Sell rated) stocks are best avoided.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report US-OIL FUND LP (USO): ETF Research Reports US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. American Airlines Group Inc. 's AAL has a Zacks Rank #3 and an Earnings ESP of +2.31%, again showing higher chances of beating estimates. Airline stocks have been flying low on the bourses this year with the US Global Jets ETFJETS having lost about 8% year to date (as of Jun 1).
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7040.0
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2018-06-04 00:00:00 UTC
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There are 5,137 Publicly-Traded Companies Warren Buffett Could Buy -- Which Will Be Next?
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AAL
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https://www.nasdaq.com/articles/there-are-5137-publicly-traded-companies-warren-buffett-could-buy-which-will-be-next-2018
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nan
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nan
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Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) has had a cash problem for some time now. Simply put, its businesses have been generating cash quicker than Warren Buffett and the rest of Berkshire's team can figure out ways to put it to work. While the first quarter saw the cash stockpile decrease for the first time in a while, there's still almost $109 billion in cash on Berkshire's balance sheet.
There are 5,179 stocks listed on the NYSE and NASDAQ stock exchanges as of June 1, 2018. Of these companies, only 60 have a market capitalization greater than $109 billion, meaning that Berkshire Hathaway could theoretically buy any of the 5,119 other publicly traded companies with the cash it currently has on hand .
What's more, Berkshire has excellent borrowing ability. Vice Chairman Charlie Munger has estimated that Berkshire could complete a $150 billion acquisition if the company really wanted to. This means that all but 42 of all NYSE- and NADSAQ-listed companies are within Berkshire's reach -- including names like Walt Disney , McDonald's , and Nike , just to name a few. And also keep in mind that this only includes publicly -traded companies -- there are thousands of additional candidates among private companies.
How much does Berkshire actually want to spend on an acquisition?
To be fair, Buffett indicated that he feels Munger's $150 billion figure is a bit ambitious. Furthermore, Buffett is unlikely to spend all of Berkshire's cash. Buffett likes to keep at least $20 billion in reserves at all times, and in a recent CNBC interview said that he would be happier if the company's cash hoard was at $30 billion.
So, realistically Buffett could potentially spend roughly $80 billion on an acquisition, or on a combination of smaller transactions. This is still a massive amount of money burning a hole in Buffett's pocket. Just to give you an idea of what this means, ConocoPhillips , Lowe's , Time Warner , and FedEx all have market capitalizations below Berkshire's spendable cash.
A few of the strongest possibilities for Berkshire's cash hoard
I don't necessarily think Buffett will buy any of the companies I've mentioned -- my point has been simply to illustrate what a massive amount of buying power Berkshire's team has.
On the other hand, there are some opportunities that I would consider to be among the most likely uses of Berkshire's cash. Just to name a couple:
Buffett could use Berkshire's cash to acquire an entire airline. Berkshire currently has stakes in the four largest U.S. airlines , all of which are in the ballpark of 10% of the outstanding shares. After years of speaking negatively of the airline business, Buffett has said that the industry fundamentals have shifted, and has indicated that owning an entire airline is certainly a possibility. Plus, there are some clear parallels between Buffett's current airline investments and Berkshire's railroad investments several years ago that the company held before acquiring BNSF Railroad in its entirety. Here's a look at Berkshire's current airline investments:
Data source: Berkshire Hathaway 13-F filings. Market capitalization as of 6/1/18.
There's no way to know which, if any, Berkshire has its eye on, but the takeaway is that any of the four would likely be easily affordable. To be sure, Berkshire would likely pay a significant premium over each airline's share price to acquire the remaining stock, but even the most valuable of the four (Delta) would likely use up less than half of Berkshire's spendable cash.
Another possibility for Berkshire's cash would be to acquire a larger stake in Apple (NASDAQ: AAPL) . The iPhone maker is already Berkshire's largest stock position, but Buffett has said in a recent interview that he'd like to own the entire company . While Apple is one of the few companies that is way too valuable for Berkshire to acquire, Buffett could certainly decide to substantially increase Berkshire's stake using the company's available cash.
A good problem to have, but still a problem
One final point to address is why Warren Buffett and his team consider such a massive amount of cash to be a problem.
To be clear, having a twelve-figure stockpile of cash isn't the worst problem to have. For one thing, it gives Berkshire the financial flexibility to not only survive market downturns, but to capitalize on them. In fact, it was Berkshire's cash that allowed it to make particularly savvy investments during the financial crisis.
The problem is that there is such a thing as too much cash, from an investor's perspective. It's nice to have a certain degree of financial flexibility, but Berkshire has about $80 billion beyond what it considers a smart amount of cash to hold. This is $80 billion that is earning little or no returns, instead of being put to work to earn more money for shareholders.
Even so, Buffett isn't going to use the cash hoard on just anything, so it could still take some time for a large acquisition to materialize. However, if the first quarter was any indication, it seems like Buffett is starting to like the market conditions and could be more willing to make a big deal than he has been in recent years.
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 quadrupled the market.*
David and Tom just revealed what they believe are the 10 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.
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*Stock Advisor returns as of May 8, 2018
Matthew Frankel owns shares of Apple, Berkshire Hathaway (B shares), and FedEx. The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), Nike, and Walt Disney. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool recommends FedEx. 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Just to give you an idea of what this means, ConocoPhillips , Lowe's , Time Warner , and FedEx all have market capitalizations below Berkshire's spendable cash. The iPhone maker is already Berkshire's largest stock position, but Buffett has said in a recent interview that he'd like to own the entire company . It's nice to have a certain degree of financial flexibility, but Berkshire has about $80 billion beyond what it considers a smart amount of cash to hold.
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A few of the strongest possibilities for Berkshire's cash hoard I don't necessarily think Buffett will buy any of the companies I've mentioned -- my point has been simply to illustrate what a massive amount of buying power Berkshire's team has. Plus, there are some clear parallels between Buffett's current airline investments and Berkshire's railroad investments several years ago that the company held before acquiring BNSF Railroad in its entirety. The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), Nike, and Walt Disney.
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A few of the strongest possibilities for Berkshire's cash hoard I don't necessarily think Buffett will buy any of the companies I've mentioned -- my point has been simply to illustrate what a massive amount of buying power Berkshire's team has. To be sure, Berkshire would likely pay a significant premium over each airline's share price to acquire the remaining stock, but even the most valuable of the four (Delta) would likely use up less than half of Berkshire's spendable cash. While Apple is one of the few companies that is way too valuable for Berkshire to acquire, Buffett could certainly decide to substantially increase Berkshire's stake using the company's available cash.
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Of these companies, only 60 have a market capitalization greater than $109 billion, meaning that Berkshire Hathaway could theoretically buy any of the 5,119 other publicly traded companies with the cash it currently has on hand . Just to name a couple: Buffett could use Berkshire's cash to acquire an entire airline. The Motley Fool owns shares of and recommends Apple, Berkshire Hathaway (B shares), Nike, and Walt Disney.
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7041.0
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2018-06-01 00:00:00 UTC
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American Airlines Upgraded, Southwest Downgraded: What You Need to Know
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AAL
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https://www.nasdaq.com/articles/american-airlines-upgraded-southwest-downgraded-what-you-need-know-2018-06-01
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nan
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nan
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Every day, Wall Street analysts upgrade some stocks, downgrade others, and "initiate coverage" on a few more. But do these analysts even know what they're talking about? Today, we're taking one high-profile Wall Street pick and putting it under the microscope...
Buy American Airlines Group (NASDAQ: AAL) , sell Southwest Airlines (NYSE: LUV) ? That kind of advice cuts against the grain of Wall Street's usual theory that " legacy airlines are bad, discount airlines are good ." And yet, this is the advice that analysts at Imperial Capital are dishing out today, as they raise their rating on American Airlines stock to outperform but cut Southwest stock to "in-line."
Here's what you need to know.
Upgrading American Airlines
Let's start off with the good news. This morning, analysts at Imperial Capital announced they're upgrading American Airlines and assigning the shares a $49 price target, which is 12.5% higher than where they trade today.
Their theory: Rising oil prices (and jet fuel prices) have taken a toll on American Airlines' pre-tax profits -- so much so that the airline is finally going to be forced to respond.
Mind you, American Airlines isn't losing money yet. Earnings may have fallen steeply from 2015's banner year of $7.6 billion in profit, with adjusted pre-tax profit margins declining steadily from 15.3% in 2015 to 12.6% in 2016 to 9.1% in 2017. They're currently expected to ring in a measly 7% or 8% this year. But still, this is the company that famously boasted it isn't " ever going to lose money again " last year.
So far, American Airlines is holding true to that promise, but with margins marching ever closer to zero, the time has come to act. Imperial believes that when American reports earnings in July, it will announce a reduction in "capacity" (i.e., it will fly fewer planes) in order to cram more passengers aboard the planes it does fly, and thus maximize the fuel efficiency of its fleet, as the analyst explains in a note covered on StreetInsider.com (requires subscription).
This move, argues Imperial, will "improve AAL's pricing power" (by cutting supply in the face of strong demand). It will also help American Airlines management achieve their profitability target and trigger their management bonuses -- a big incentive that could in this instance work to investors' benefit.
Downgrading Southwest
Now for the bad news: As much as Imperial Capital likes American Airlines' prospects, its view dims when it comes to Southwest Airlines stock.
In a second note out today, Imperial argues that while American is making the right moves on plane capacity, Southwest is headed in the wrong direction, and will grow the capacity of its fleet by not the 5% expected previously, but by as much as 5.5%. That seems a small sliver of a difference, but in Imperial's view, it's too great an increase relative to the 1% increase in revenue per available seat mile (RASM) that Imperial believes Southwest will enjoy this year. With airplane fuel getting more costly, and Southwest losing pricing power relative to American, Imperial predicts Southwest will earn only $4.35 per share in 2018 (down $0.05 from its previous estimate). The analyst thinks 2019 profits will be only $5.10 per share -- an improvement, but much less than the $5.60 that Imperial previously thought Southwest might earn.
That all translates into not just a downgrade for Southwest Airlines stock, but a much-reduced price target of only $54 a share that leaves investors hoping for less than 6% upside from current prices.
A third view
Is Imperial Capital right to take such a dim view of Southwest stock relative to American Airlines? I have to say that I have my doubts.
On the one hand, according to our data on Motley Fool CAPS, where we've been tracking the performance of Imperial Capital's stock picks for more than six years now , Imperial hasn't been a particularly successful stock picker historically. Only about 39% of its recommendations have outperformed the S&P 500 in the past -- and its average stock pick is underperforming the market by nearly 2 percentage points.
On the same hand, Imperial's favoring American Airlines stock over Southwest just doesn't make a lot of sense to me. Although technically profitable as GAAP accounts for such things, American Airlines hasn't generated positive free cash flow in over a year, according to data from S&P Global Market Intelligence . Over the past 12 months, for example, American Airlines has burned through $743 million in free cash flow.
Sure, cutting capacity might help American Airlines improve that number. Still, judging from where things stand today, American Airlines just isn't doing as good a job as Southwest -- which has been both GAAP-profitable and generated positive free cash flow for the past nine straight years, and churned out nearly $1.1 billion in cash profits over the past 12 months.
Now, even $1.1 billion isn't a lot of cash relative to Southwest's $3.6 billion in reported profit. With Southwest stock tipping the scales at nearly $30 billion in market capitalization today, I cannot honestly recommend its stock either -- not while its free cash flow looks so weak. But choosing to downgrade poor-performing Southwest to only hold, and upgrade the even worse-performing American to buy, looks to me like a great way to lose money on both stocks.
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 10 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.
Click here to learn about these picks!
*Stock Advisor returns as of May 8, 2018
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Today, we're taking one high-profile Wall Street pick and putting it under the microscope... Buy American Airlines Group (NASDAQ: AAL) , sell Southwest Airlines (NYSE: LUV) ? This move, argues Imperial, will "improve AAL's pricing power" (by cutting supply in the face of strong demand). This morning, analysts at Imperial Capital announced they're upgrading American Airlines and assigning the shares a $49 price target, which is 12.5% higher than where they trade today.
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This move, argues Imperial, will "improve AAL's pricing power" (by cutting supply in the face of strong demand). Today, we're taking one high-profile Wall Street pick and putting it under the microscope... Buy American Airlines Group (NASDAQ: AAL) , sell Southwest Airlines (NYSE: LUV) ? With airplane fuel getting more costly, and Southwest losing pricing power relative to American, Imperial predicts Southwest will earn only $4.35 per share in 2018 (down $0.05 from its previous estimate).
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Today, we're taking one high-profile Wall Street pick and putting it under the microscope... Buy American Airlines Group (NASDAQ: AAL) , sell Southwest Airlines (NYSE: LUV) ? This move, argues Imperial, will "improve AAL's pricing power" (by cutting supply in the face of strong demand). And yet, this is the advice that analysts at Imperial Capital are dishing out today, as they raise their rating on American Airlines stock to outperform but cut Southwest stock to "in-line."
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Today, we're taking one high-profile Wall Street pick and putting it under the microscope... Buy American Airlines Group (NASDAQ: AAL) , sell Southwest Airlines (NYSE: LUV) ? This move, argues Imperial, will "improve AAL's pricing power" (by cutting supply in the face of strong demand). In a second note out today, Imperial argues that while American is making the right moves on plane capacity, Southwest is headed in the wrong direction, and will grow the capacity of its fleet by not the 5% expected previously, but by as much as 5.5%.
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7042.0
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2018-05-31 00:00:00 UTC
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American Airlines Wants to Be More Like Delta -- but It's Not Doing It Right
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AAL
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https://www.nasdaq.com/articles/american-airlines-wants-be-more-delta-its-not-doing-it-right-2018-05-31
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nan
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nan
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In recent years, there has been a clear hierarchy among the U.S. legacy airlines in terms of profitability. Delta Air Lines (NYSE: DAL) has locked down the top spot, with American Airlines (NASDAQ: AAL) a distant second.
In recent weeks, American Airlines' management has touted a plan to become more like Delta by operating more flights at its biggest hubs. By growing in Charlotte and Dallas-Fort Worth, the carrier hopes to improve its profitability. However, to properly replicate Delta's strategy, American Airlines ought to be using larger planes at its biggest hubs -- not just more of them.
There's a wide margin gap today
In 2017, American's adjusted pre-tax margin was 9.1%, compared to 13.2% for Delta Air Lines. (2017 wasn't even a particularly good year for Delta.) Based on American Airlines' earnings-per-share forecast for 2018 , it appears that the margin gap relative to Delta may widen further this year.
Last fall, American Airlines CEO Doug Parker told investors that a big reason for the margin gap was that 40% of Delta's flights touch its hub in Atlanta. Atlanta is the largest airline hub in the world and it is extremely profitable. Parker noted that American Airlines has a very strong hub nearby in Charlotte, but it accounts for a much smaller proportion of American's total revenue.
Thus, Delta Air Lines has a structural margin advantage over American Airlines (and United Continental ). That said, this structural advantage is not necessarily permanent, as other airlines could opt to focus more capacity in their best hubs as well. That's exactly what American Airlines intends to do.
American Airlines tries for a fix
At a recent investor conference, American Airlines President Robert Isom stated that the carrier is working to get access to more gates in Dallas and Charlotte, its two largest hubs. In Dallas, American is investing $20 million to outfit a satellite concourse with 15 regional jet gates. These extra gates would allow it to operate nearly 900 departures from Dallas-Fort Worth International Airport on peak days, up from around 800 today.
American Airlines also hopes to expand in Charlotte, where the airport authority is in the midst of building nine new gates. This will enable American to add at least 50 peak day departures to its current total of almost 700.
Isom was careful to note that any growth would depend on market conditions. With fuel prices having spiked higher this year, American Airlines isn't eager to add capacity right now. But once fares catch up with the recent fuel price increases -- or if oil prices recede -- American is likely to forge ahead with growth that is heavily concentrated in Dallas and Charlotte.
It's not just about flight volume
Growing in Dallas and Charlotte should be profitable for American Airlines -- but it isn't likely to make much of a dent in the margin gap vis-a-vis Delta. That's because operating more than 1,000 peak day flights is only one piece of Delta's formula for success in Atlanta. The other key to Atlanta's profitability is that Delta uses larger, more efficient aircraft than its rivals.
Indeed, while American Airlines is only slightly larger than Delta Air Lines in terms of revenue, it has almost 600 regional jets in its fleet, compared to just 460 for Delta. This difference in the fleet mix for the two carriers shows up in the number of passengers moved through their largest hubs.
Delta carried 83 million passengers in Atlanta last year, compared to 57 million for American Airlines in Dallas. This is a 46% advantage for Delta, which is significantly larger than the difference in the number of daily departures for the two carriers at their largest hubs. In Charlotte, American Airlines uses even smaller planes (on average) than it does in Dallas.
Mainline aircraft are cheaper to operate on a per-seat basis than regional jets. Delta's ability to drive enough passenger traffic through Atlanta to support larger jets on most routes is critical to its superior profitability there.
In Charlotte, the small size of the local market and competition from Delta's nearby Atlanta hub may make it impossible to introduce larger aircraft in a significant way. By contrast, the Dallas-Fort Worth metro area is even bigger than Atlanta and American's hub there is by far the largest airline hub in that part of the U.S. While adding more flights there is a good idea, American Airlines should also look to upgrade as many routes as possible to mainline service. That will help it maximize the profit it generates in its largest and most productive hub.
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 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.
Click here to learn about these picks!
*Stock Advisor returns as of May 8, 2018
Adam Levine-Weinberg owns shares of Delta Air Lines. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Delta Air Lines (NYSE: DAL) has locked down the top spot, with American Airlines (NASDAQ: AAL) a distant second. Last fall, American Airlines CEO Doug Parker told investors that a big reason for the margin gap was that 40% of Delta's flights touch its hub in Atlanta. It's not just about flight volume Growing in Dallas and Charlotte should be profitable for American Airlines -- but it isn't likely to make much of a dent in the margin gap vis-a-vis Delta.
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Delta Air Lines (NYSE: DAL) has locked down the top spot, with American Airlines (NASDAQ: AAL) a distant second. Thus, Delta Air Lines has a structural margin advantage over American Airlines (and United Continental ). Indeed, while American Airlines is only slightly larger than Delta Air Lines in terms of revenue, it has almost 600 regional jets in its fleet, compared to just 460 for Delta.
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Delta Air Lines (NYSE: DAL) has locked down the top spot, with American Airlines (NASDAQ: AAL) a distant second. American Airlines tries for a fix At a recent investor conference, American Airlines President Robert Isom stated that the carrier is working to get access to more gates in Dallas and Charlotte, its two largest hubs. It's not just about flight volume Growing in Dallas and Charlotte should be profitable for American Airlines -- but it isn't likely to make much of a dent in the margin gap vis-a-vis Delta.
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Delta Air Lines (NYSE: DAL) has locked down the top spot, with American Airlines (NASDAQ: AAL) a distant second. (2017 wasn't even a particularly good year for Delta.) Indeed, while American Airlines is only slightly larger than Delta Air Lines in terms of revenue, it has almost 600 regional jets in its fleet, compared to just 460 for Delta.
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7043.0
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2018-05-29 00:00:00 UTC
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Here's Why Airlines Spread Wide Wings in Friday's Trading
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AAL
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https://www.nasdaq.com/articles/heres-why-airlines-spread-wide-wings-in-fridays-trading-2018-05-29
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nan
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nan
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Airline stocks have been laid low this year, mainly due to concerns about rising fuel costs. However, this headwind was put on the back burner last Friday as oil prices declined, resulting in airlines experiencing a field day.
It is a well-documented fact that the health of airline stocks is inversely related to oil prices. This is because fuel costs denote one of the most significant expenses for carriers. Consequently, the fall in oil prices leads to a significant decrease in the airlines' operating expenses, thereby aiding the stocks' bottom-line growth.
On May 25, oil prices decreased significantly to around $67.88 per barrel following reports that OPEC and Russia were discussing an increase in oil production. In fact, oil prices had been on the downside over the past four days, thanks to the above issue.
Airlines Lead Dow Transports' Rally on Friday
The Dow Jones Transportation Average - a price-weighted average of 20 U.S. transportation securities - ended the May 25 trading session at 10,900.06, up 0.4%. The index includes railroads, truckers, marine transportation, delivery services and logistics companies apart from airlines. Hence, the Dow Jones Transportation Average Index can easily be deemed the true representative of U.S. transportation division.
The Dow Jones Transportation Average Index includes six airline stocks, namely Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL , American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU , Alaska Air Group, Inc. ALK and Southwest Airlines Co. LUV .
The fact that airlines heaved a sigh of relief on May 25 is evident from the index's top six gainers being airline stocks with shares of the Zacks Rank #3 (Hold) Alaska Air Group registering the maximum rise of 3.3%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
The above impressive performance resulted in the NYSE ARCA Airline Index gaining 2.3% to close Friday's trading session at $108.81. Additionally, the 34-member U.S. Global Jets ETF JETS , which provide exposure to the global airline industry, grew nearly 2% on May 25, ending the day at $31.19.
Oil Price Plunge Follows A4A's Bullish Summer Travel Projection
The drop in one of the largest input costs for airlines could not have come at a better time for sector participants. This is because the summer travel season is round the corner and marks the busiest time for airlines.
According to Airlines for America ('A4A') - the largest airline trade association in the United States - the upcoming summer season (Jun 1-Aug 31) is expected to be the most hectic period for U.S. carriers in terms of air travel. Per the forecast, approximately 246.1 million passengers (2.68 million flyers daily) will be transported by U.S. airlines this summer, up 3.7% year over year.
In fact, to meet the surge in travel demand, the U.S. carriers are increasing the number of available seats by 116,000 each day. Also, with the U.S. economy improving and consumer confidence remaining strong, more Americans are taking vacations. Moreover, a much-improved job market and rising disposable income have added an incentive for consumers to opt for air travel.
Driven by the above tailwinds, the three-month phase is likely to see 96,000 additional passengers taking to the skies each day on various U.S. carriers.
With the upbeat guidance already in place, the waning oil prices provide further good news to airlines. No wonder, airline stocks concluded the previous week on a high.
Valuation Signals More Upside
The attractive valuation for the Zacks Airline industry suggests that the rally on May 25 is not a one-off phenomenon and that stocks in the space remain attractive investment bets. Going by the EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation and amortization) ratio -often used to value airline stocks - given their significant debt levels, and high depreciation and amortization expenses, the industry does not look expensive at this point.
The industry currently has a trailing 12-month EV/EBITDA ratio of 6.3 (near the lowest point of 5.8 in a year's time), comparing favorably with the market at large as the current EV/EBITDA ratio for the S&P 500 stands at 11.3. The industry's favorable positioning compared with the overall market certainly hints at more upside.
More Stock News: This Is Bigger than the iPhone!
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Southwest Airlines Co. (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
US GLOBAL JETS (JETS): ETF Research Reports
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The Dow Jones Transportation Average Index includes six airline stocks, namely Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL , American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU , Alaska Air Group, Inc. ALK and Southwest Airlines Co. LUV . Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. However, this headwind was put on the back burner last Friday as oil prices declined, resulting in airlines experiencing a field day.
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The Dow Jones Transportation Average Index includes six airline stocks, namely Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL , American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU , Alaska Air Group, Inc. ALK and Southwest Airlines Co. LUV . Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. Airlines Lead Dow Transports' Rally on Friday The Dow Jones Transportation Average - a price-weighted average of 20 U.S. transportation securities - ended the May 25 trading session at 10,900.06, up 0.4%.
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The Dow Jones Transportation Average Index includes six airline stocks, namely Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL , American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU , Alaska Air Group, Inc. ALK and Southwest Airlines Co. LUV . Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. The fact that airlines heaved a sigh of relief on May 25 is evident from the index's top six gainers being airline stocks with shares of the Zacks Rank #3 (Hold) Alaska Air Group registering the maximum rise of 3.3%.
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The Dow Jones Transportation Average Index includes six airline stocks, namely Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL , American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU , Alaska Air Group, Inc. ALK and Southwest Airlines Co. LUV . Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report US GLOBAL JETS (JETS): ETF Research Reports To read this article on Zacks.com click here. In fact, oil prices had been on the downside over the past four days, thanks to the above issue.
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7044.0
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2018-05-28 00:00:00 UTC
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American Airlines (AAL) Up 2.8% Since Earnings Report: Can It Continue?
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-up-2.8-since-earnings-report%3A-can-it-continue-2018-05-28
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nan
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nan
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A month has gone by since the last earnings report for American Airlines Group Inc.AAL . Shares have added about 2.8% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is AAL due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
First Quarter Earnings
American Airlines' first-quarter 2018 earnings (excluding 36 cents from non-recurring items) of 75 cents per share surpassed the Zacks Consensus Estimate by a penny. Quarterly earnings increased approximately 23% on a year-over-year basis despite higher costs.
Revenues of $10,401 million fell short of the Zacks Consensus Estimate of $10,411.9 million. The top line, however, improved on a year-over-year basis. Strong demand for air travel led to the year over year improvement in the top line.
Total revenue per available seat miles (TRASM: a key measure of unit revenue) improved 3.5% to 15.80 cents in the reported quarter. Consolidated yield improved 1.5%. Passenger revenue per available seat miles (PRASM) improved 3%.
While traffic (measured by revenue passenger miles) was up 3.8%, capacity (measured by average seat miles) was up 2.3%. Consolidated load factor (percentage of seats filled by passengers) increased to 80.4% from 79.2% a year-ago as traffic growth outpaced capacity expansion in the first quarter of 2018.
Total operating expenses climbed 9.8% year over year to approximately $10 billion primarily due to the rise in fuel costs. Expenses pertaining to salaries and benefits were up 5.5%. Consolidated operating costs per available seat miles (CASM: excluding fuel and special items) increased 2.8%.
Outlook
TRASM is expected to increase in the band of 1.5% to 3.5% in the second quarter of 2018. Pre-tax margin excluding special items is projected in the range of 7.5% to 9.5% in the second quarter. Adjusted earnings per share in 2018 are now expected between $5.00 and $6.00 (previous guidance had hinted at earnings between $5.50 and $6.50). Higher fuel costs led to the view being trimmed. Consolidated jet fuel per gallon is projected in the band of $2.18 to $2.23 for the second quarter.
Consolidated CASM (excluding special items and fuel) is expected to increase 3.5% in the second quarter of 2018. The metric is also anticipated to increase approximately 2% in 2018. The metric is still expected to increase in the band of 1% to 2% in each of 2019 and 2020. Capacity (system) in 2018 is still projected to increase 2.5% year over year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There has been one revision higher for the current quarter compared with five lower.
American Airlines Group Inc. Price and Consensus
American Airlines Group Inc. Price and Consensus | American Airlines Group Inc. Quote
VGM Scores
At this time, AAL has an average Growth Score of C, though it is lagging a lot on the momentum front with an F. The stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than growth investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. Interestingly, AAL has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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A month has gone by since the last earnings report for American Airlines Group Inc.AAL . Will the recent positive trend continue leading up to its next earnings release, or is AAL due for a pullback? American Airlines Group Inc. Price and Consensus American Airlines Group Inc. Price and Consensus | American Airlines Group Inc. Quote VGM Scores At this time, AAL has an average Growth Score of C, though it is lagging a lot on the momentum front with an F. The stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
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American Airlines Group Inc. Price and Consensus American Airlines Group Inc. Price and Consensus | American Airlines Group Inc. Quote VGM Scores At this time, AAL has an average Growth Score of C, though it is lagging a lot on the momentum front with an F. The stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy. A month has gone by since the last earnings report for American Airlines Group Inc.AAL . Will the recent positive trend continue leading up to its next earnings release, or is AAL due for a pullback?
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American Airlines Group Inc. Price and Consensus American Airlines Group Inc. Price and Consensus | American Airlines Group Inc. Quote VGM Scores At this time, AAL has an average Growth Score of C, though it is lagging a lot on the momentum front with an F. The stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy. A month has gone by since the last earnings report for American Airlines Group Inc.AAL . Will the recent positive trend continue leading up to its next earnings release, or is AAL due for a pullback?
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A month has gone by since the last earnings report for American Airlines Group Inc.AAL . Will the recent positive trend continue leading up to its next earnings release, or is AAL due for a pullback? American Airlines Group Inc. Price and Consensus American Airlines Group Inc. Price and Consensus | American Airlines Group Inc. Quote VGM Scores At this time, AAL has an average Growth Score of C, though it is lagging a lot on the momentum front with an F. The stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
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7045.0
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2018-05-25 00:00:00 UTC
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Delta to Resume Flights to India & Expand Jet Airways Deal
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AAL
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https://www.nasdaq.com/articles/delta-to-resume-flights-to-india-expand-jet-airways-deal-2018-05-25
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nan
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nan
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The deals inked by the U.S. administration with Qatar (in January) and the United Arab Emirates (in May) on massive subsidies to Gulf carriers seem to be paying off. Following the deal with the UAE, Delta Air Lines, Inc. 's DAL CEO Ed Bastian had said that he intends to resume services to destinations, where the likes of Etihad Airways, Etihad and Emirates have had an advantageous position earlier.
In keeping with his words, this Atlanta-based carrier announced that it will resume non-stop flights to Mumbai from next year. In fact, to facilitate air travel on the route, Delta aims to expand its codeshare relationship with the Mumbai-based Jet Airways. Expansion of the deal would allow passengers to fly to other Indian cities. Other details pertaining to the resumption of the operation will be disclosed by Dec 31, 2018. Service will, however, start following government clearances.
Assuming that the requisite approvals are obtained, Delta would return to Mumbai after a gap of 10 years. The airline behemoth had last operated on the route (non-stop) in 2009. Currently, United Airlines - the wholly-owned subsidiary of United Continental Holdings, Inc. UAL - is the only U.S.-based carrier to offer non-stop services connecting India and the United States.
Why Did Delta Stop Indian Service in the First Place?
According to an Associated Press report , Delta had pulled out of India in 2015. The carrier had blamed the massive government subsidies enjoyed by its Gulf counterparts for this decision in the otherwise lucrative market. As a result, Delta's operations to India were negatively impacted and became unviable. The company was unable to compete effectively with the Gulf carriers in India due to the massive subsidies enjoyed by the latter. Operations to certain other Asian markets were also similarly hurt.
In 2015, Delta along with American Airlines Group Inc. AAL and United Continental had alleged that state-owned carriers like Etihad Airways and Emirates gained from the massive subsidies and other benefits. Per U.S. carriers, the government subsidies were unfair in nature, which denied a level playing field to them. The issue snowballed into a major dispute between U.S. carriers and their Gulf counterparts.
In a bid to resolve the long-standing dispute, the Trump administration inked deals with Qatar and the UAE. The deals require the likes of Qatar Airways, Emirates and Etihad Airways to increase financial transparency.
Conclusion
With the Indian market offering significant commercial potential, it is of little wonder that Delta has decided to resume services to India immediately after the resolution of the crisis. We expect more U.S. carriers to follow suite, thereby resulting in more U.S. exposure not only to India but other Asian markets as well. Naturally, we expect investor focus to remain on this burning issue going forward.
Zacks Rank & Key Pick
Delta carries a Zacks Rank #3 (Hold). A better-ranked airline stock is SkyWest, Inc. SKYW , carrying a Zacks Rank #2 (Buy).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Shares of SkyWest have rallied more than 61% in a year's time.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In 2015, Delta along with American Airlines Group Inc. AAL and United Continental had alleged that state-owned carriers like Etihad Airways and Emirates gained from the massive subsidies and other benefits. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The deals inked by the U.S. administration with Qatar (in January) and the United Arab Emirates (in May) on massive subsidies to Gulf carriers seem to be paying off.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In 2015, Delta along with American Airlines Group Inc. AAL and United Continental had alleged that state-owned carriers like Etihad Airways and Emirates gained from the massive subsidies and other benefits. Currently, United Airlines - the wholly-owned subsidiary of United Continental Holdings, Inc. UAL - is the only U.S.-based carrier to offer non-stop services connecting India and the United States.
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In 2015, Delta along with American Airlines Group Inc. AAL and United Continental had alleged that state-owned carriers like Etihad Airways and Emirates gained from the massive subsidies and other benefits. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Currently, United Airlines - the wholly-owned subsidiary of United Continental Holdings, Inc. UAL - is the only U.S.-based carrier to offer non-stop services connecting India and the United States.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In 2015, Delta along with American Airlines Group Inc. AAL and United Continental had alleged that state-owned carriers like Etihad Airways and Emirates gained from the massive subsidies and other benefits. The airline behemoth had last operated on the route (non-stop) in 2009.
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7046.0
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2018-05-25 00:00:00 UTC
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Nasdaq 100 Movers: ROST, BMRN
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-rost-bmrn-2018-05-25
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nan
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nan
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In early trading on Friday, shares of BioMarin Pharmaceutical topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.9%. Year to date, BioMarin Pharmaceutical Inc. registers a 2.9% gain.
And the worst performing Nasdaq 100 component thus far on the day is Ross Stores, trading down 5.8%. Ross Stores, Inc. is lower by about 2.6% looking at the year to date performance.
Two other components making moves today are Autodesk, trading down 4.6%, and American Airlines Group, trading up 3.0% on the day.
VIDEO: Nasdaq 100 Movers: ROST, BMRN
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Nasdaq 100 component thus far on the day is Ross Stores, trading down 5.8%. Ross Stores, Inc. is lower by about 2.6% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: ROST, BMRN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Year to date, BioMarin Pharmaceutical Inc. registers a 2.9% gain. VIDEO: Nasdaq 100 Movers: ROST, BMRN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Friday, shares of BioMarin Pharmaceutical topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.9%. And the worst performing Nasdaq 100 component thus far on the day is Ross Stores, trading down 5.8%. VIDEO: Nasdaq 100 Movers: ROST, BMRN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Friday, shares of BioMarin Pharmaceutical topped the list of the day's best performing components of the Nasdaq 100 index, trading up 3.9%. And the worst performing Nasdaq 100 component thus far on the day is Ross Stores, trading down 5.8%. VIDEO: Nasdaq 100 Movers: ROST, BMRN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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7047.0
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2018-05-25 00:00:00 UTC
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Boeing Corporation Stock Is Ready for Takeoff
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AAL
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https://www.nasdaq.com/articles/boeing-corporation-stock-ready-takeoff-2018-05-25
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When investors think of airline stocks, shares of Boeing Co (NYSE: BA ) aren't likely the first to come to mind. Nevertheless, BA stock is setting up to fly to fresh all-time-highs. And for bulls wanting a first-class trip that won't cost an arm and a leg - a modified butterfly is just the ticket for passage. Let me explain.
Boeing isn't an airline stock like Delta Air Lines, Inc. (NYSE: DAL ) or American Airlines Group Inc (NASDAQ: AAL ) - it makes planes. Boeing is really a defense stock that has learned how to fly higher since BA shares broke out of a massive base in early 2017.
In between ever-present headline cheers and jeers ranging from North Korea to on-and-off China trade war chatter or shady anti-Boeing EU dealings which investors are free to try and sort out for themselves, BA stock is ready to soar into some very friendly territory on the price chart.
BA Stock Weekly Chart
To state the obvious when looking at the weekly chart of BA stock, 2017 was a very good year for its investors after a successful breakout from a two-year-long corrective basing pattern.
25 Unstoppable Stocks to Buy No Matter What
But 2018 has experienced a bout of technical turbulence following a runaway "plane" at the tail-end of 2017's solid performance. The good news for investors is the bullish winds of change look ready to re-emerge in Boeing shares.
The reason for our upbeat forecast is that 2017's overbought situation has been constructively diffused, with shares establishing a corrective cup-shaped base over the past several months. Currently and as Boeing puts together the finishing touches on a high-level handle consolidation supported by a favorable stochastics setup; once again BA stock looks well-positioned to break out to new highs.
BA Stock Modified Bullish Butterfly
For investors interested in BA stock, one alternative combination using Boeing options that's well-suited for the situation and does an excellent job of reducing and limited risk is a modified bullish call butterfly. Specifically and with shares at $359, the June $365/$375/$380 call combination for $2.15 or better looks attractive.
Risk below $365 is limited to the debit, or roughly 0.6% of the exposure associated with owning BA stock. That's a nice insurance policy in the event shares fail to break out in the very near future. On the upside, if Boeing does rally, the break-even at expiration is at $367.15 and just modestly above the pattern high of $365 within the developing handle.
More Discounting Ahead in Target Corporation Stock
From the break-even point, investors positioned with the butterfly enjoy a dollar-for-dollar profit capture which maxes out at $7.85 if BA stock lands on $375 at expiration. That would be nice, but unrealistic as the outcome requires perfection from both time and price.
Maybe more realistic, if shares proceed to really take-off, this cost-cutting strategy's guaranteed profit of $2.85 above $380 in BA stock is the type of protective trade-off bulls should be quite happy with.
Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits .
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The post Boeing Corporation Stock Is Ready for Takeoff 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Boeing isn't an airline stock like Delta Air Lines, Inc. (NYSE: DAL ) or American Airlines Group Inc (NASDAQ: AAL ) - it makes planes. In between ever-present headline cheers and jeers ranging from North Korea to on-and-off China trade war chatter or shady anti-Boeing EU dealings which investors are free to try and sort out for themselves, BA stock is ready to soar into some very friendly territory on the price chart. Currently and as Boeing puts together the finishing touches on a high-level handle consolidation supported by a favorable stochastics setup; once again BA stock looks well-positioned to break out to new highs.
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Boeing isn't an airline stock like Delta Air Lines, Inc. (NYSE: DAL ) or American Airlines Group Inc (NASDAQ: AAL ) - it makes planes. InvestorPlace - Stock Market News, Stock Advice & Trading Tips When investors think of airline stocks, shares of Boeing Co (NYSE: BA ) aren't likely the first to come to mind. BA Stock Weekly Chart To state the obvious when looking at the weekly chart of BA stock, 2017 was a very good year for its investors after a successful breakout from a two-year-long corrective basing pattern.
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Boeing isn't an airline stock like Delta Air Lines, Inc. (NYSE: DAL ) or American Airlines Group Inc (NASDAQ: AAL ) - it makes planes. InvestorPlace - Stock Market News, Stock Advice & Trading Tips When investors think of airline stocks, shares of Boeing Co (NYSE: BA ) aren't likely the first to come to mind. BA Stock Modified Bullish Butterfly For investors interested in BA stock, one alternative combination using Boeing options that's well-suited for the situation and does an excellent job of reducing and limited risk is a modified bullish call butterfly.
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Boeing isn't an airline stock like Delta Air Lines, Inc. (NYSE: DAL ) or American Airlines Group Inc (NASDAQ: AAL ) - it makes planes. InvestorPlace - Stock Market News, Stock Advice & Trading Tips When investors think of airline stocks, shares of Boeing Co (NYSE: BA ) aren't likely the first to come to mind. BA Stock Modified Bullish Butterfly For investors interested in BA stock, one alternative combination using Boeing options that's well-suited for the situation and does an excellent job of reducing and limited risk is a modified bullish call butterfly.
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7048.0
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2018-05-25 00:00:00 UTC
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Noteworthy Friday Option Activity: DXC, VFC, AAL
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AAL
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity-dxc-vfc-aal-2018-05-25
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nan
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nan
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in DXC Technology Co (Symbol: DXC), where a total volume of 7,619 contracts has been traded thus far today, a contract volume which is representative of approximately 761,900 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 46.5% of DXC's average daily trading volume over the past month, of 1.6 million shares. Especially high volume was seen for the $100 strike call option expiring July 20, 2018 , with 3,127 contracts trading so far today, representing approximately 312,700 underlying shares of DXC. Below is a chart showing DXC's trailing twelve month trading history, with the $100 strike highlighted in orange:
VF Corp. (Symbol: VFC) options are showing a volume of 10,635 contracts thus far today. That number of contracts represents approximately 1.1 million underlying shares, working out to a sizeable 46.1% of VFC's average daily trading volume over the past month, of 2.3 million shares. Particularly high volume was seen for the $79.50 strike put option expiring June 15, 2018 , with 10,000 contracts trading so far today, representing approximately 1.0 million underlying shares of VFC. Below is a chart showing VFC's trailing twelve month trading history, with the $79.50 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 26,926 contracts thus far today. That number of contracts represents approximately 2.7 million underlying shares, working out to a sizeable 45.5% of AAL's average daily trading volume over the past month, of 5.9 million shares. Especially high volume was seen for the $46 strike call option expiring May 25, 2018 , with 2,538 contracts trading so far today, representing approximately 253,800 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $46 strike highlighted in orange:
For the various different available expirations for DXC options , VFC 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Especially high volume was seen for the $46 strike call option expiring May 25, 2018 , with 2,538 contracts trading so far today, representing approximately 253,800 underlying shares of AAL. Below is a chart showing VFC's trailing twelve month trading history, with the $79.50 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 26,926 contracts thus far today. That number of contracts represents approximately 2.7 million underlying shares, working out to a sizeable 45.5% of AAL's average daily trading volume over the past month, of 5.9 million shares.
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That number of contracts represents approximately 2.7 million underlying shares, working out to a sizeable 45.5% of AAL's average daily trading volume over the past month, of 5.9 million shares. Below is a chart showing VFC's trailing twelve month trading history, with the $79.50 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 26,926 contracts thus far today. Especially high volume was seen for the $46 strike call option expiring May 25, 2018 , with 2,538 contracts trading so far today, representing approximately 253,800 underlying shares of AAL.
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That number of contracts represents approximately 2.7 million underlying shares, working out to a sizeable 45.5% of AAL's average daily trading volume over the past month, of 5.9 million shares. Below is a chart showing VFC's trailing twelve month trading history, with the $79.50 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 26,926 contracts thus far today. Especially high volume was seen for the $46 strike call option expiring May 25, 2018 , with 2,538 contracts trading so far today, representing approximately 253,800 underlying shares of AAL.
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Especially high volume was seen for the $46 strike call option expiring May 25, 2018 , with 2,538 contracts trading so far today, representing approximately 253,800 underlying shares of AAL. Below is a chart showing VFC's trailing twelve month trading history, with the $79.50 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 26,926 contracts thus far today. That number of contracts represents approximately 2.7 million underlying shares, working out to a sizeable 45.5% of AAL's average daily trading volume over the past month, of 5.9 million shares.
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7049.0
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2018-05-23 00:00:00 UTC
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American Airlines vs. High Fuel Prices: This Could End Badly
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AAL
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https://www.nasdaq.com/articles/american-airlines-vs-high-fuel-prices-could-end-badly-2018-05-23
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nan
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nan
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For the past several years, American Airlines (NASDAQ: AAL) CEO Doug Parker has been one of the most prominent proponents of the idea that the airline industry has been permanently transformed and will produce big profits going forward. In the past year, he has doubled down on this argument, saying that in the new environment, airline managers don't have to worry much about short-term profitability and can focus on making long-term investments.
If Parker is right, you wouldn't know it from his company's financial results. American Airlines' profitability has been plunging ever since oil prices began to recover from a 2014-2016 slump. Furthermore, American Airlines cut its 2018 earnings per share (EPS) guidance last month due to rising fuel prices.
The rally in oil prices has continued in the month following American's Q1 earnings report. This could cause the company's earnings to fall even further behind management's original forecast.
Profit comes under pressure
American Airlines' adjusted pre-tax margin peaked at 15.3% in 2015. While a 41% drop in the carrier's average fuel cost played a big role in that strong result, airline industry earnings had already started to rise in 2013 and 2014, before the oil price collapse. Thus, investors had some reason to hope that American could sustain a double-digit adjusted pre-tax margin regardless of where fuel prices went in the future.
However, American Airlines' adjusted pre-tax margin slipped to 12.6% in 2016 despite a further decline in fuel prices and plunged to 9.1% last year, when fuel costs started to rise again.
In conjunction with its first-quarter earnings report, American Airlines reduced its 2018 adjusted EPS guidance range from $5.50-$6.50 to $5.00-$6.00. This change in its earnings forecast was entirely driven by a higher fuel price assumption. Based on this updated guidance range, American expects to post an adjusted pre-tax margin of roughly 7% to 8% this year.
The oil price rally hasn't ended
Unfortunately, oil prices have continued to rise since American Airlines revised its forecast. On April 20 -- the day that the carrier updated its fuel price assumption -- the price of Gulf Coast jet fuel was $2.07 per gallon. Gulf Coast jet fuel reached $2.21/gallon as of Monday.
American Airlines uses about 4.4 million gallons of jet fuel each year. Thus, on an annualized basis, a $0.14-per-gallon increase in the price of jet fuel would add more than $600 million to its fuel bill. The cost headwind for the remainder of 2018 could be close to $400 million if jet fuel prices stabilize near current levels.
Unless American Airlines can push through bigger fare increases -- which would be tough in the current ultra-competitive environment -- this cost headwind will drive almost 1 percentage point of incremental margin pressure in 2018.
Cash flow is becoming a concern
Even with the recent spike in fuel costs, American Airlines is likely to earn an adjusted pre-tax profit of roughly $3 billion this year. This might make it seem like shareholders have nothing to worry about. However, the company needs a higher level of earnings to support its substantial capex commitments and its weak balance sheet.
Operating cash flow has fallen steadily since the beginning of 2017. Over the past 12 months, American Airlines has generated just $4.3 billion in cash from operations. That figure could move even lower during the next few quarters as higher fuel costs pinch profits.
American Airlines Cash from Operations (TTM) , data by YCharts .
On the other side of the ledger, American Airlines plans to spend $3.7 billion on capital expenditures (capex) in 2018, including $1.9 billion for new aircraft. This means that free cash flow will be close to zero.
Last month, management projected that aircraft capex would rise to $2.5 billion in 2019 before receding to $1.7 billion in 2020. Since then, American has ordered 30 additional regional jets, 29 of which will be delivered next year. This could increase 2019 capex (including non-aircraft spending) to nearly $5 billion, potentially pushing free cash flow into negative territory.
The balance sheet is a mess
During the past four years, American Airlines has dealt with weak free cash flow by borrowing heavily to finance new aircraft. This allowed it to return about $12 billion to shareholders, mainly through an aggressive share repurchase program .
American Airlines can continue to finance most of its new aircraft purchases to reduce its cash outflows. However, the bill for its previous financing activity is starting to come due. American has about $2 billion of debt maturing in the last three quarters of 2018. It also has nearly $10 billion maturing between 2019 and 2021.
With cash flow falling and interest rates rising, American Airlines will face some unpleasant choices as its debts come due over the next few years. As a result, while American Airlines stock has fallen more than 20% since March, investors should still stay away from this looming train wreck.
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Adam Levine-Weinberg 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For the past several years, American Airlines (NASDAQ: AAL) CEO Doug Parker has been one of the most prominent proponents of the idea that the airline industry has been permanently transformed and will produce big profits going forward. While a 41% drop in the carrier's average fuel cost played a big role in that strong result, airline industry earnings had already started to rise in 2013 and 2014, before the oil price collapse. Unless American Airlines can push through bigger fare increases -- which would be tough in the current ultra-competitive environment -- this cost headwind will drive almost 1 percentage point of incremental margin pressure in 2018.
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For the past several years, American Airlines (NASDAQ: AAL) CEO Doug Parker has been one of the most prominent proponents of the idea that the airline industry has been permanently transformed and will produce big profits going forward. Furthermore, American Airlines cut its 2018 earnings per share (EPS) guidance last month due to rising fuel prices. In conjunction with its first-quarter earnings report, American Airlines reduced its 2018 adjusted EPS guidance range from $5.50-$6.50 to $5.00-$6.00.
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For the past several years, American Airlines (NASDAQ: AAL) CEO Doug Parker has been one of the most prominent proponents of the idea that the airline industry has been permanently transformed and will produce big profits going forward. Furthermore, American Airlines cut its 2018 earnings per share (EPS) guidance last month due to rising fuel prices. However, American Airlines' adjusted pre-tax margin slipped to 12.6% in 2016 despite a further decline in fuel prices and plunged to 9.1% last year, when fuel costs started to rise again.
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For the past several years, American Airlines (NASDAQ: AAL) CEO Doug Parker has been one of the most prominent proponents of the idea that the airline industry has been permanently transformed and will produce big profits going forward. Furthermore, American Airlines cut its 2018 earnings per share (EPS) guidance last month due to rising fuel prices. However, American Airlines' adjusted pre-tax margin slipped to 12.6% in 2016 despite a further decline in fuel prices and plunged to 9.1% last year, when fuel costs started to rise again.
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7050.0
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2018-05-23 00:00:00 UTC
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7 S&P 500 Companies Doing Right for Employees
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https://www.nasdaq.com/articles/7-sp-500-companies-doing-right-employees-2018-05-23
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The New York Times published an interesting article May 21 that looked at the Marx ratio, which is defined as a company's profit per employee divided by the median wage of its employees; it tells us generally how much a public company rewards its shareholders in comparison to its employees. Numbers below 1 mean the company is returning more to employees than shareholders, while numbers above 1 means the opposite.
If you're like Larry Fink, CEO of BlackRock, Inc. (NYSE: BLK ), who believes CEOs should do more than generates profits for shareholders, you will be interested in my seven companies doing right for employees.
If, on the other hand, you don't care a whit about the employees and want your quarterly dividend check and some capital appreciation on top of that, the ratio named after the socialist economist is probably not your thing.
However you might feel about the subject, author Neil Irwin makes it clear that there are limitations to the Marx ratio.
"The Marx Ratio should not be used as a definitive measure of how a company does or does not contribute to inequality," wrote Irwin. "Rather, think of it as an important clue about how it is organized, how its economic structure works, and to whom its greatest rewards tend to flow."
Top 20 Gold Stocks to Buy Despite Irrational Markets
According to Irwin, of the 394 S&P 500 companies that reported their median compensation by May 3, the median Marx ratio was 0.82, meaning the typical company did the right thing and rewarded employees at a higher rate than shareholders.
Amen to that.
S&P 500 Companies Doing Right for Employees: American Airlines (AAL)
Source: Oliver Holzbauer via Flickr
Marx Ratio = 0.24
Profit per worker = $15,158
Median worker pay = $62,394
When it comes to airlines, Southwest Airlines Co (NYSE: LUV ) is my favorite stock recommendation . That said, I'm a firm believer in companies treating their employees well because that always trickles down to the customer.
American Airlines Group Inc (NYSE: AAL ) has a checkered history, having filed for bankruptcy in November 2011 and emerging from that bankruptcy in December 2013 by merging with US Airways.
Like many of the airlines, the past few years have been profitable for AAR. Maybe not as good as they were before bankruptcy - see its operating margin of 9.3% in fiscal 2008, double what it was in 2017 - but I'm sure the company's executives will take them.
American Airlines has almost 127,000 employees with median annual pay of $62,394, four times its 2017 profit per employee. A greedy shareholder would like the Marx ratio to be higher (i.e., a higher profit per employee) but a lot of people lost their jobs to keep the airline flying; the profits are just fine where they are.
Currently, American is reconfiguring its older 737's to match the configuration of its newer 737 MAX's. This move is not going over well with its flight attendants. In a push to maximize revenue, AAR CEO Doug Parker might want to have a look at its current Marx ratio.
S&P 500 Companies Doing Right for Employees: United Technologies (UTX)
Source: Daniel Åhs Karlsson via Wikipedia (Modified)
Marx Ratio = 0.31
Profit per worker = $22,205
Median worker pay = $72,433
United Technologies Corporation (NYSE: UTX ) recently announced that it's selling Taylor Co., a subsidiary that manufactures ice cream dispensing equipment and frozen-drink machines, to Middleby Corp (NASDAQ: MIDD ) for $1 billion so that it can focus on its commercial refrigeration business.
This is just the beginning of a complete strategic review of its entire portfolio that could see the business split into three units with the commercial refrigeration business along with its air conditioning business being one of them; Otis elevators and its jet engines & aerospace business being the two others.
Anytime you have a business with lots of engineers, you're going to have a higher average salary because they're not cheap to pay - and rightly so, given that the types of businesses they often work revolve around safety.
If you fly on planes regularly, you don't want its Pratt & Whitney jet engine business being cheap when it comes to paying employees. Bad engineers equal bad outcomes for everyone.
25 Unstoppable Stocks to Buy No Matter What
United Technologies' stock hasn't done much this year, up less than 2% year to date through May 21. Perhaps that's why activist investors have been pushing for change at the company.
Long-term, UTX is a winner.
S&P 500 Companies Doing Right for Employees: Merck (MRK)
Source: Shutterstock
Marx Ratio = 0.42
Profit per worker = $34,696
Median worker pay = $82,173
If you're looking to make a quick buck, Merck & Co., Inc. (NYSE: MRK ) isn't the stock for you. One of the best healthcare companies out there, the sector is in the middle of a correction that's seen drug manufacturer stocks drop by almost 2% year to date through May 21 while MRK is up nearly 5%.
Over the last ten years, Merck's averaged an annualized total return of 6.8%, with almost 60% of the return from dividends. It's an income investor's dream stock.
In Merck's first-quarter report, it made $1.05 a share on a non-GAAP basis, 16% higher than a year earlier. In the past three months, analysts have jumped on board Merck stock with the number of buys jumping from 11 to 17. I'm not a big believer in analyst opinions, but when you get this many changing their tune at one time, it's a sign good things are happening at the drug company.
S&P 500 Companies Doing Right for Employees: Boeing (BA)
Source: Phillip Capper via Flickr
Marx Ratio = 0.52
Profit per worker = $58,217
Median worker pay = $111,204
Of the seven stocks doing right for employees, Boeing Co (NYSE: BA ) has the second-highest median worker pay at $111,204 or almost double its profit per employee.
With almost 141,000 employees worldwide, the profits add up quickly. In 2017, Boeing had $11.8 billion free cash flow; in 2018, FCF could approach $19 billion or $135,135 per employee.
Although Boeing's business is flying high right now, labor troubles could be brewing.
On May 21, the Wall Street Journalreported that 178 technicians at its 787 Dreamliner plant in South Carolina had been authorized to vote on joining the International Association of Machinists union on May 31.
7 Dividend Aristocrats That Could Outpace the Market
Boeing is appealing the ruling by the National Labor Relations Board. Last year, almost three quarter's of the South Carolina plant's workers voted not to join. Naturally, Boeing's not pleased, nor should it be given how much it pays its employees.
Union skirmishes aside, Boeing stock is heading for the clouds . Next stop, $400!
S&P 500 Companies Doing Right for Employees: Anthem (ANTM)
Source: Shutterstock
Marx Ratio = 0.54
Profit per worker = $38,286
Median worker pay = $70,867
My InvestorPlace colleague Chris Lau recently called Anthem Inc (NYSE: ANTM ) boring. Frankly, owners of ANTM stock couldn't receive a bigger compliment.
If you're not familiar with Anthem, it's a provider of health and specialty care insurance plans through its various subsidiaries to more than 41 million people across the U.S.
"Anthem is the most attractive of the bunch [other health care plan providers] at its modest 22x P/E and manageable debt/equity of 0.75 times. Earnings will grow in the 10 percent range and the mid-teens over the next five years," Lau wrote May 4. "Prudent management, cost cuts, and higher efficiencies all lead to the potential for strong shareholder returns in the years ahead."
With the company's new CEO doing a good job containing medical costs while looking for bolt-on, opportunistic acquisitions rather than costly M&A blockbusters, Anthem investors should look forward to future positive revisions to its earnings guidance.
S&P 500 Companies Doing Right for Employees: Netflix (NFLX)
Source: Vivian D Nguyen via Flickr (Modified)
Marx Ratio = 0.55
Profit per worker = $101,623
Median worker pay = $183,304
If there's a business better suited to leading-edge technology, I'd love to know about it, because Netflix, Inc. (NASDAQ: NFLX ) pivoting from DVDs to video streaming in 2007 has to be one of the biggest business decisions ever made by a CEO of a public company.
Reed Hastings will forever be remembered as the guy who changed television for the better.
InvestorPlace contributor Luke Lango recently discussed why Netflix's content is getting better. He reasons that the company's quarterly subscriber growth seems to follow three-month increments where the content is good rather than mediocre.
I've argued in the past that spending billions on content is the key to Netflix's success. The more it generates in operating profit per subscriber, a function of the quality of content Lango refers to above, the higher its share price will go.
They say if you can't explain an investment in a sentence or two, it's not worth making.
3 Internet of Things Stocks That Are Set to Have Monster Futures
"Netflix buys and streams video content through a monthly subscription."
Pretty simple, isn't it?
S&P 500 Companies Doing Right for Employees: BB&T (BBT)
Source: Via Seniorliving.org
Marx Ratio = 0.78
Profit per worker = $66,193
Median worker pay = $84,550
As I stated in the opening, the median Marx ratio of the 394 S&P 500 companies who had reported their median compensation by May 3 was 0.82, which means the typical company has higher median pay than profit per employee.
Of the major banks, only BB&T Corporation (NYSE: BBT ) has a Marx ratio below 0.82 at 0.78. In fact, the average of Wells Fargo & Co (NYSE: WFC ), JPMorgan Chase & Co. (NYSE: JPM ) and Bank of America Corp (NYSE: BAC ) is 1.21 or 56% higher.
Why does that matter?
It shows that BB&T balances profits with employee pay, a sign of a properly managed, thoughtful and considerate business.
On April 19, BB&T announced first-quarter earnings of $745 million , 97% higher than a year earlier. On a per-share basis, Q1 2018 EPS was 94 cents, 104% higher than a year earlier due to fewer shares outstanding.
The company delivered record earnings in the quarter due to excellent control of its expenses combined with lower taxes as a result of the corporate tax rate cut which saw the company's effective tax rate drop by 490 basis points to 19%.
Related to the Marx ratio, BB&T increased its hourly pay rate by 25% to $15 per hour. When you pay the people on the front line better, everyone wins, including shareholders.
I'm not very familiar with BB&T, but the mere fact it's willing to invest in its people suggests to me that I ought to take a much closer look.
As of this writing Will Ashworth did not hold a position in any of the aforementioned securities.
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The post 7 S&P 500 Companies Doing Right for Employees 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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S&P 500 Companies Doing Right for Employees: American Airlines (AAL) Source: Oliver Holzbauer via Flickr Marx Ratio = 0.24 Profit per worker = $15,158 Median worker pay = $62,394 When it comes to airlines, Southwest Airlines Co (NYSE: LUV ) is my favorite stock recommendation . American Airlines Group Inc (NYSE: AAL ) has a checkered history, having filed for bankruptcy in November 2011 and emerging from that bankruptcy in December 2013 by merging with US Airways. If, on the other hand, you don't care a whit about the employees and want your quarterly dividend check and some capital appreciation on top of that, the ratio named after the socialist economist is probably not your thing.
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S&P 500 Companies Doing Right for Employees: American Airlines (AAL) Source: Oliver Holzbauer via Flickr Marx Ratio = 0.24 Profit per worker = $15,158 Median worker pay = $62,394 When it comes to airlines, Southwest Airlines Co (NYSE: LUV ) is my favorite stock recommendation . American Airlines Group Inc (NYSE: AAL ) has a checkered history, having filed for bankruptcy in November 2011 and emerging from that bankruptcy in December 2013 by merging with US Airways. S&P 500 Companies Doing Right for Employees: United Technologies (UTX) Source: Daniel Åhs Karlsson via Wikipedia (Modified) Marx Ratio = 0.31 Profit per worker = $22,205 Median worker pay = $72,433 United Technologies Corporation (NYSE: UTX ) recently announced that it's selling Taylor Co., a subsidiary that manufactures ice cream dispensing equipment and frozen-drink machines, to Middleby Corp (NASDAQ: MIDD ) for $1 billion so that it can focus on its commercial refrigeration business.
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S&P 500 Companies Doing Right for Employees: American Airlines (AAL) Source: Oliver Holzbauer via Flickr Marx Ratio = 0.24 Profit per worker = $15,158 Median worker pay = $62,394 When it comes to airlines, Southwest Airlines Co (NYSE: LUV ) is my favorite stock recommendation . American Airlines Group Inc (NYSE: AAL ) has a checkered history, having filed for bankruptcy in November 2011 and emerging from that bankruptcy in December 2013 by merging with US Airways. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The New York Times published an interesting article May 21 that looked at the Marx ratio, which is defined as a company's profit per employee divided by the median wage of its employees; it tells us generally how much a public company rewards its shareholders in comparison to its employees.
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S&P 500 Companies Doing Right for Employees: American Airlines (AAL) Source: Oliver Holzbauer via Flickr Marx Ratio = 0.24 Profit per worker = $15,158 Median worker pay = $62,394 When it comes to airlines, Southwest Airlines Co (NYSE: LUV ) is my favorite stock recommendation . American Airlines Group Inc (NYSE: AAL ) has a checkered history, having filed for bankruptcy in November 2011 and emerging from that bankruptcy in December 2013 by merging with US Airways. Top 20 Gold Stocks to Buy Despite Irrational Markets According to Irwin, of the 394 S&P 500 companies that reported their median compensation by May 3, the median Marx ratio was 0.82, meaning the typical company did the right thing and rewarded employees at a higher rate than shareholders.
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7051.0
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2018-05-22 00:00:00 UTC
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Tuesday Sector Laggards: Industrial, Services
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AAL
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https://www.nasdaq.com/articles/tuesday-sector-laggards-industrial-services-2018-05-22
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The worst performing sector as of midday Tuesday is the Industrial sector, showing a 0.6% loss. Within that group, American Airlines Group Inc (Symbol: AAL) and Raytheon Co. (Symbol: RTN) are two large stocks that are lagging, showing a loss of 2.8% and 2.7%, respectively. Among industrial ETFs , one ETF following the sector is the Industrial Select Sector SPDR ETF (Symbol: XLI), which is down 0.6% on the day, and up 0.82% year-to-date. American Airlines Group Inc, meanwhile, is down 16.86% year-to-date, and Raytheon Co. is up 11.71% year-to-date. Combined, AAL and RTN make up approximately 3.4% of the underlying holdings of XLI.
The next worst performing sector is the Services sector, showing a 0.4% loss. Among large Services stocks, AutoZone, Inc. (Symbol: AZO) and Kohl's Corp. (Symbol: KSS) are the most notable, showing a loss of 8.3% and 6.9%, respectively. One ETF closely tracking Services stocks is the iShares U.S. Consumer Services ETF ( IYC ), which is down 0.3% in midday trading, and up 4.68% on a year-to-date basis. AutoZone, Inc., meanwhile, is down 14.26% year-to-date, and Kohl's Corp. is up 13.50% year-to-date. Combined, AZO and KSS make up approximately 0.9% of the underlying holdings of IYC.
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 Tuesday. As you can see, five sectors are up on the day, while two sectors are down.
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Combined, AAL and RTN make up approximately 3.4% of the underlying holdings of XLI. Within that group, American Airlines Group Inc (Symbol: AAL) and Raytheon Co. (Symbol: RTN) are two large stocks that are lagging, showing a loss of 2.8% and 2.7%, respectively. Combined, AZO and KSS make up approximately 0.9% of the underlying holdings of IYC.
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Within that group, American Airlines Group Inc (Symbol: AAL) and Raytheon Co. (Symbol: RTN) are two large stocks that are lagging, showing a loss of 2.8% and 2.7%, respectively. Combined, AAL and RTN make up approximately 3.4% of the underlying holdings of XLI. The worst performing sector as of midday Tuesday is the Industrial sector, showing a 0.6% loss.
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Within that group, American Airlines Group Inc (Symbol: AAL) and Raytheon Co. (Symbol: RTN) are two large stocks that are lagging, showing a loss of 2.8% and 2.7%, respectively. Combined, AAL and RTN make up approximately 3.4% of the underlying holdings of XLI. Among industrial ETFs , one ETF following the sector is the Industrial Select Sector SPDR ETF (Symbol: XLI), which is down 0.6% on the day, and up 0.82% year-to-date.
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Within that group, American Airlines Group Inc (Symbol: AAL) and Raytheon Co. (Symbol: RTN) are two large stocks that are lagging, showing a loss of 2.8% and 2.7%, respectively. Combined, AAL and RTN make up approximately 3.4% of the underlying holdings of XLI. Among industrial ETFs , one ETF following the sector is the Industrial Select Sector SPDR ETF (Symbol: XLI), which is down 0.6% on the day, and up 0.82% year-to-date.
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7052.0
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2018-05-15 00:00:00 UTC
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The New U.S.-UAE Aviation Agreement Changes Nothing
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AAL
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https://www.nasdaq.com/articles/new-us-uae-aviation-agreement-changes-nothing-2018-05-15
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nan
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For more than three years, the Partnership for Open and Fair Skies -- an airline industry trade group sponsored by American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) -- has aggressively lobbied the U.S. government to halt the expansion of fast-growing Gulf airlines Emirates, Etihad Airways, and Qatar Airways.
The U.S. carriers' gripes gained some traction under the Trump Administration's "America First" agenda. This led to a series of bilateral aviation-related talks, first between the U.S. and Qatar, and more recently between the U.S. and the United Arab Emirates.
The United States and Qatar resolved their differences earlier this year. A similar U.S.-UAE deal was reached just in the past week. Yet while American, Delta, and United are hailing these agreements as landmark victories, they don't enforce any major substantive changes.
The U.S. and UAE reach a new understanding
On Monday, representatives of the United States and United Arab Emirates formally announced that they had reached a compromise in response to the concerns raised by the U.S.
The two sides agreed to maintain their Open Skies agreement, which means that qualified airlines don't need government approval to fly between the two countries. However, state-owned carriers Emirates and Etihad Airways will be required to publish audited financial statements annually. They also must "take steps" to avoid below-market deals with government-affiliated suppliers.
Additionally, a side letter between the two countries states that Emirates and Etihad Airways are not currently planning any new " fifth freedom " routes between the U.S. and points outside the UAE. American Airlines, Delta Air Lines, and United Continental have harshly criticized Emirates' two existing routes from New York-area airports to Milan and Athens.
Do the changes have any substance?
The negotiators for the U.S. and the UAE clearly took great pains to find evenhanded language to describe their dispute and its resolution. For example, one section of the document states that "government support in whatever form may adversely impact competition," while another section notes that such support is common and not necessarily bad.
The agreement also acknowledges that FedEx operates numerous fifth-freedom flights in Dubai. This waters down the argument against allowing additional fifth-freedom routes by Emirates and Etihad. Indeed, there is no binding language preventing either carrier from attempting new fifth-freedom routes in the future, although there may be an unwritten understanding to that effect.
Lastly, the requirement for Emirates and Etihad Airways to publish audited financial statements won't necessarily create a level playing field. After all, Emirates has provided audited annual reports for many years, but the Partnership for Open and Fair Skies still alleged that it received $5 billion of subsidies over a 10-year period. Furthermore, Etihad could potentially publish audited annual reports while continuing to receive cash infusions from the government structured as loans or equity investments.
Despite the lack of teeth in the U.S.-UAE aviation deal, the U.S. legacy carriers have declared victory. Delta Air Lines CEO Ed Bastian even promised that his company would soon announce new international routes in response.
New flights to India? Not because of this deal
The new agreement between the U.S. and UAE will allow Delta Air Lines to go back into parts of the world that it exited due to fierce competition from Emirates and Etihad, according to Bastian. Delta's CEO hinted that a new route (or routes) to India could be announced soon, more than three years after the carrier canceled its Mumbai service. (Flights to the UAE are less likely, due to the oversupply of seats to Dubai and Abu Dhabi relative to local demand.)
It probably does make sense for Delta to fly to India, which is set to surpass the U.K. as the world's fifth-largest economy this year. The carrier has upgraded its fleet in recent years with new long-range planes that have much lower unit costs and better premium seating options, to attract high-paying business travelers (and offset pricing weakness in the coach cabin). Delta has also grown its presence in New York and Seattle, which could be convenient East Coast and West Coast gateways for India flights.
However, this has nothing to do with the recent U.S.-UAE agreement. Emirates and Etihad can and will continue offering convenient connections between the U.S. and India via their hubs. If the legacy carriers' behavior changes, it will be because of changes in their own capabilities and strategies -- not because the competitive environment has improved dramatically.
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Adam Levine-Weinberg owns shares of Delta Air Lines. The Motley Fool recommends FedEx. 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For more than three years, the Partnership for Open and Fair Skies -- an airline industry trade group sponsored by American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) -- has aggressively lobbied the U.S. government to halt the expansion of fast-growing Gulf airlines Emirates, Etihad Airways, and Qatar Airways. American Airlines, Delta Air Lines, and United Continental have harshly criticized Emirates' two existing routes from New York-area airports to Milan and Athens. Not because of this deal The new agreement between the U.S. and UAE will allow Delta Air Lines to go back into parts of the world that it exited due to fierce competition from Emirates and Etihad, according to Bastian.
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For more than three years, the Partnership for Open and Fair Skies -- an airline industry trade group sponsored by American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) -- has aggressively lobbied the U.S. government to halt the expansion of fast-growing Gulf airlines Emirates, Etihad Airways, and Qatar Airways. However, state-owned carriers Emirates and Etihad Airways will be required to publish audited financial statements annually. Lastly, the requirement for Emirates and Etihad Airways to publish audited financial statements won't necessarily create a level playing field.
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For more than three years, the Partnership for Open and Fair Skies -- an airline industry trade group sponsored by American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) -- has aggressively lobbied the U.S. government to halt the expansion of fast-growing Gulf airlines Emirates, Etihad Airways, and Qatar Airways. American Airlines, Delta Air Lines, and United Continental have harshly criticized Emirates' two existing routes from New York-area airports to Milan and Athens. Not because of this deal The new agreement between the U.S. and UAE will allow Delta Air Lines to go back into parts of the world that it exited due to fierce competition from Emirates and Etihad, according to Bastian.
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For more than three years, the Partnership for Open and Fair Skies -- an airline industry trade group sponsored by American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) -- has aggressively lobbied the U.S. government to halt the expansion of fast-growing Gulf airlines Emirates, Etihad Airways, and Qatar Airways. However, state-owned carriers Emirates and Etihad Airways will be required to publish audited financial statements annually. New flights to India?
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7053.0
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2018-05-11 00:00:00 UTC
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Higher Oil Price: Winners and Losers
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AAL
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https://www.nasdaq.com/articles/higher-oil-price-winners-and-losers-2018-05-11
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nan
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nan
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Oil price has zoomed to the highest levels in more than three and a half years buoyed by potential export disruptions in Iran and falling production in Venezuela. Additionally, the historic output cut deal by OPEC, Russia and other producers to curb production is paying off, paving the way for a rebalancing of the oil market despite rising U.S. production.
The global benchmark Brent crude and U.S. West Texas Intermediate (WTI) rallied above $77 and $71 per barrel, respectively. The bullish trend is likely to continue given that Trump has decided to restore sanctions on Iran, which will disrupt oil supplies in the major Middle East oil producer Iran, resulting in further tightening of the global glut.
Additionally, seasonality will continue to support a price surge in the coming months. This is because demand generally picks up in a summer driving season (which starts with Memorial Day at the end of May and lasts until Labor Day in September), leading to higher prices.
A Blessing
Higher oil price is big boon to energy stocks, especially producers and explorers, which get most of their revenues from selling the crude that they extract. This is because the cost of oil production or extraction remains low as companies look to lock in supply contracts at higher prices. The gap between production cost and selling price keeps on rising when oil price surges even higher, leading to fat profit margins and thus a spike in company's share price.
As a result, the S&P Energy Index has gained 13.6% so far this quarter, easily outperforming the other sector. The Zacks Oil and Energy sector has gained 11% over the past month with some of the outperforming stocks including EP Energy CorporationEPE , Pioneer Energy Services Corp.PES , Rex Energy CorporationREXX , Transglobe Energy CorpTGA , Penn Virginia CorporationPVAC , and W&T Offshore, Inc.WTI . All these have soared more than 50% in a month.
The optimism in the energy sector has pushed up gains from Wall Street, which was struggling amid a series of woes. In fact, the major broad indices have turned green from a year-to-date look with the surge in oil prices .
Further, rising oil prices coupled with rising interest rates are acting as catalysts to the financial sector given that most banks are highly exposed to the energy space. This is because rising oil price alleviates the default risks for banks' exposure to oil and gas companies, and creates additional credit demand that could result in improving credit quality. In particular, big banks like Bank of AmericaBAC , JPMorgan ChaseJPM , Wells Fargo WFC , and CitigroupC could be the largest beneficiaries with their direct exposure to the energy sector. These stocks climbed 2.4%, 0.8%, 3.7% and 0.6%, respectively, over the past month and have a Zacks Rank #3 (Hold).
A Curse
While almost every corner of the energy segment is shining, oil refiners might be hit. This is because the players in this industry use oil as an input for processing refined petroleum products. Hence, higher oil prices would crimp margins for refiners, leading to weak stock prices.
Higher oil price has also resulted in a spike in gasoline and jet prices that would make summer driving most expensive in four years, per the Energy Information Administration. According to AAA, the average price at the pump is about $2.83, up 21% year over year, with drivers in nine states paying $3 a gallon for regular gasoline. As such, transportation stocks could see rough trading with airline stocks such as American Airlines AAL , Delta Air Lines DAL , and United Continental UAL being the biggest losers, as high fuel price may cut their profit margins.
Rising pump price is threating Trump's tax cut benefits, which is the major pillar for future America. According to Morgan Stanley, higher gas prices are on track to cost Americans an extra $38 billion in 2018, wiping out about one-third of the benefits from the reduced tax rates. Per the analyst at Moody's, sustained increase in the gasoline price would cost the average American $450 a year, offsetting about half the tax benefit.
Added to the woes is the resultant inflationary pressure that would raise the price of the products leading to a reduced consumer spending, which accounts for more than two-thirds of the U.S. economic activity. The discretionary and retail sectors would thus bear the brunt. However, these are the biggest gainers of the improving American economy and record consumer confidence. As a result, investors seeking to remain invested in these sectors should focus on the top-ranked stocks having Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Some of these include Sony CorporationSNE , Ralph Lauren CorporationRL , Michael Kors Holdings LimitedKORS , Dollar General CorporationDG , Kohl's CorporationKSS and Urban Outfitters Inc . URBN that are backed by strong fundamentals and analysts optimism.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
JPMorgan Chase & Co. (JPM): Free Stock Analysis Report
Wells Fargo & Company (WFC): Free Stock Analysis Report
Citigroup Inc. (C): Free Stock Analysis Report
Bank of America Corporation (BAC): Free Stock Analysis Report
Sony Corporation (SNE): Free Stock Analysis Report
Transglobe Energy Corp (TGA): Free Stock Analysis Report
Pioneer Energy Services Corp. (PES): Free Stock Analysis Report
W&T Offshore, Inc. (WTI): Free Stock Analysis Report
Rex Energy Corporation (REXX): Free Stock Analysis Report
EP Energy Corporation (EPE): Free Stock Analysis Report
Urban Outfitters, Inc. (URBN): Free Stock Analysis Report
Dollar General Corporation (DG): Free Stock Analysis Report
Kohl's Corporation (KSS): Free Stock Analysis Report
Ryder System, Inc. (R): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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As such, transportation stocks could see rough trading with airline stocks such as American Airlines AAL , Delta Air Lines DAL , and United Continental UAL being the biggest losers, as high fuel price may cut their profit margins. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Wells Fargo & Company (WFC): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis Report Bank of America Corporation (BAC): Free Stock Analysis Report Sony Corporation (SNE): Free Stock Analysis Report Transglobe Energy Corp (TGA): Free Stock Analysis Report Pioneer Energy Services Corp. (PES): Free Stock Analysis Report W&T Offshore, Inc. (WTI): Free Stock Analysis Report Rex Energy Corporation (REXX): Free Stock Analysis Report EP Energy Corporation (EPE): Free Stock Analysis Report Urban Outfitters, Inc. (URBN): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Kohl's Corporation (KSS): Free Stock Analysis Report Ryder System, Inc. (R): Free Stock Analysis Report To read this article on Zacks.com click here. According to Morgan Stanley, higher gas prices are on track to cost Americans an extra $38 billion in 2018, wiping out about one-third of the benefits from the reduced tax rates.
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As such, transportation stocks could see rough trading with airline stocks such as American Airlines AAL , Delta Air Lines DAL , and United Continental UAL being the biggest losers, as high fuel price may cut their profit margins. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Wells Fargo & Company (WFC): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis Report Bank of America Corporation (BAC): Free Stock Analysis Report Sony Corporation (SNE): Free Stock Analysis Report Transglobe Energy Corp (TGA): Free Stock Analysis Report Pioneer Energy Services Corp. (PES): Free Stock Analysis Report W&T Offshore, Inc. (WTI): Free Stock Analysis Report Rex Energy Corporation (REXX): Free Stock Analysis Report EP Energy Corporation (EPE): Free Stock Analysis Report Urban Outfitters, Inc. (URBN): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Kohl's Corporation (KSS): Free Stock Analysis Report Ryder System, Inc. (R): Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Oil and Energy sector has gained 11% over the past month with some of the outperforming stocks including EP Energy CorporationEPE , Pioneer Energy Services Corp.PES , Rex Energy CorporationREXX , Transglobe Energy CorpTGA , Penn Virginia CorporationPVAC , and W&T Offshore, Inc.WTI .
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Wells Fargo & Company (WFC): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis Report Bank of America Corporation (BAC): Free Stock Analysis Report Sony Corporation (SNE): Free Stock Analysis Report Transglobe Energy Corp (TGA): Free Stock Analysis Report Pioneer Energy Services Corp. (PES): Free Stock Analysis Report W&T Offshore, Inc. (WTI): Free Stock Analysis Report Rex Energy Corporation (REXX): Free Stock Analysis Report EP Energy Corporation (EPE): Free Stock Analysis Report Urban Outfitters, Inc. (URBN): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Kohl's Corporation (KSS): Free Stock Analysis Report Ryder System, Inc. (R): Free Stock Analysis Report To read this article on Zacks.com click here. As such, transportation stocks could see rough trading with airline stocks such as American Airlines AAL , Delta Air Lines DAL , and United Continental UAL being the biggest losers, as high fuel price may cut their profit margins. The gap between production cost and selling price keeps on rising when oil price surges even higher, leading to fat profit margins and thus a spike in company's share price.
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As such, transportation stocks could see rough trading with airline stocks such as American Airlines AAL , Delta Air Lines DAL , and United Continental UAL being the biggest losers, as high fuel price may cut their profit margins. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report Wells Fargo & Company (WFC): Free Stock Analysis Report Citigroup Inc. (C): Free Stock Analysis Report Bank of America Corporation (BAC): Free Stock Analysis Report Sony Corporation (SNE): Free Stock Analysis Report Transglobe Energy Corp (TGA): Free Stock Analysis Report Pioneer Energy Services Corp. (PES): Free Stock Analysis Report W&T Offshore, Inc. (WTI): Free Stock Analysis Report Rex Energy Corporation (REXX): Free Stock Analysis Report EP Energy Corporation (EPE): Free Stock Analysis Report Urban Outfitters, Inc. (URBN): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Kohl's Corporation (KSS): Free Stock Analysis Report Ryder System, Inc. (R): Free Stock Analysis Report To read this article on Zacks.com click here. The gap between production cost and selling price keeps on rising when oil price surges even higher, leading to fat profit margins and thus a spike in company's share price.
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7054.0
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2018-05-10 00:00:00 UTC
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JetBlue (JBLU) Aims to Expand Mexico City & Havana Service
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AAL
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https://www.nasdaq.com/articles/jetblue-jblu-aims-to-expand-mexico-city-havana-service-2018-05-10
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nan
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nan
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JetBlue Airways CorporationJBLU recently announced the expansion of its existing Mexico City and Havana service from its northeast and south Florida focus cities.
The carrier will initiate operations connecting Havana's Jose Marti International Airport with Boston's Logan International Airport and Fort Lauderdale-Hollywood International Airport. Flights between Boston and Havana will be offered on Saturdays, beginning Nov 10, 2018 while the same between Fort Lauderdale and the Cuban capital will be available thrice daily from Sunday to Friday, starting Nov 11. Notably, JetBlue had commenced US-Cuba service a couple of years ago in 2016.
Government approval for the new routes is pending and tickets will be put up for sale in a few weeks' time. These new services are prompted by the U.S. Department of Transportation's (DOT) nod for additional frequencies to the capital city of Cuba.
JetBlue Airways Corporation Price
JetBlue Airways Corporation Price | JetBlue Airways Corporation Quote
We remind investors that in March-end, the DOT granted a tentative clearance for new U.S.-Cuba scheduled flights to five US airlines namely, United Airlines, the wholly owned subsidiary of United Continental Holdings, Inc. UAL , American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL and Southwest Airlines Co. including JetBlue. The DOT's decision followed after many carriers like Frontier Airlines and Spirit Airlines terminated their operations among specific nations on lower-than-expected demand.
Further, the low cost carrier intends to begin two new daily nonstop services to Mexico City from Boston and New York's John F. Kennedy International Airport, effective Oct 25 this year. The new routes, for which government approval is pending, are an addition to the existing Mexico City service from Orlando International Airport and Fort Lauderdale. Following the new service, JetBlue will run a total of six daily flights between the United States and the Mexican capital.
The additional Mexico City service is a result of the DOT's requirement for a few carriers to divest airport slots to boost competition at the Mexico City International Airport.
This Zacks Rank #3 (Hold) company will operate the new services to Cuba and Mexico on an Airbus A320 aircraft featuring comfortable seating, complimentary snacks, high-speed internet and other high-end amenities. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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JetBlue Airways Corporation Price JetBlue Airways Corporation Price | JetBlue Airways Corporation Quote We remind investors that in March-end, the DOT granted a tentative clearance for new U.S.-Cuba scheduled flights to five US airlines namely, United Airlines, the wholly owned subsidiary of United Continental Holdings, Inc. UAL , American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL and Southwest Airlines Co. including JetBlue. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Further, the low cost carrier intends to begin two new daily nonstop services to Mexico City from Boston and New York's John F. Kennedy International Airport, effective Oct 25 this year.
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JetBlue Airways Corporation Price JetBlue Airways Corporation Price | JetBlue Airways Corporation Quote We remind investors that in March-end, the DOT granted a tentative clearance for new U.S.-Cuba scheduled flights to five US airlines namely, United Airlines, the wholly owned subsidiary of United Continental Holdings, Inc. UAL , American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL and Southwest Airlines Co. including JetBlue. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The new routes, for which government approval is pending, are an addition to the existing Mexico City service from Orlando International Airport and Fort Lauderdale.
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JetBlue Airways Corporation Price JetBlue Airways Corporation Price | JetBlue Airways Corporation Quote We remind investors that in March-end, the DOT granted a tentative clearance for new U.S.-Cuba scheduled flights to five US airlines namely, United Airlines, the wholly owned subsidiary of United Continental Holdings, Inc. UAL , American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL and Southwest Airlines Co. including JetBlue. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The additional Mexico City service is a result of the DOT's requirement for a few carriers to divest airport slots to boost competition at the Mexico City International Airport.
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JetBlue Airways Corporation Price JetBlue Airways Corporation Price | JetBlue Airways Corporation Quote We remind investors that in March-end, the DOT granted a tentative clearance for new U.S.-Cuba scheduled flights to five US airlines namely, United Airlines, the wholly owned subsidiary of United Continental Holdings, Inc. UAL , American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL and Southwest Airlines Co. including JetBlue. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The new routes, for which government approval is pending, are an addition to the existing Mexico City service from Orlando International Airport and Fort Lauderdale.
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7055.0
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2018-05-09 00:00:00 UTC
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Options Traders Expect Huge Moves in American Airlines Group (AAL) Stock
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AAL
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https://www.nasdaq.com/articles/options-traders-expect-huge-moves-in-american-airlines-group-aal-stock-2018-05-09
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nan
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nan
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Investors in American Airlines Group Inc.AAL need to pay close attention to the stock based on moves in the options market lately. That is because the May 11, 2018 $55.00 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?
Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?
Clearly, options traders are pricing in a big move for American Airlines shares, but what is the fundamental picture for the company? Currently, American Airlines is a Zacks Rank #3 (Hold) in the Transportation - Airline industry that ranks in the Bottom 40% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while seven analysts have revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $2.08 per share to $1.76 in that period.
Given the way analysts feel about American Airlines right now, this huge implied volatility could mean there's a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Looking to Trade Options?
Each week, our very own Dave Bartosiak gives his top options trades. Check out his recent live analysis and options trade for the NFLX earnings report completely free. See it here: Bartosiak: Trading Netflix's (NFLX) Earnings with Options or check out the embedded video below for more details:
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Investors in American Airlines Group Inc.AAL need to pay close attention to the stock based on moves in the options market lately. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Investors in American Airlines Group Inc.AAL need to pay close attention to the stock based on moves in the options market lately. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in American Airlines Group Inc.AAL need to pay close attention to the stock based on moves in the options market lately. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other.
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Investors in American Airlines Group Inc.AAL need to pay close attention to the stock based on moves in the options market lately. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
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7056.0
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2018-05-08 00:00:00 UTC
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Notable Tuesday Option Activity: DIS, AAL, SCG
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AAL
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https://www.nasdaq.com/articles/notable-tuesday-option-activity-dis-aal-scg-2018-05-08
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nan
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nan
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Walt Disney Co. (Symbol: DIS), where a total of 64,242 contracts have traded so far, representing approximately 6.4 million underlying shares. That amounts to about 80.6% of DIS's average daily trading volume over the past month of 8.0 million shares. Particularly high volume was seen for the $96.50 strike put option expiring May 11, 2018 , with 6,837 contracts trading so far today, representing approximately 683,700 underlying shares of DIS. Below is a chart showing DIS's trailing twelve month trading history, with the $96.50 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) options are showing a volume of 57,379 contracts thus far today. That number of contracts represents approximately 5.7 million underlying shares, working out to a sizeable 79.6% of AAL's average daily trading volume over the past month, of 7.2 million shares. Particularly high volume was seen for the $44 strike call option expiring May 11, 2018 , with 22,456 contracts trading so far today, representing approximately 2.2 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $44 strike highlighted in orange:
And SCANA Corp (Symbol: SCG) saw options trading volume of 8,459 contracts, representing approximately 845,900 underlying shares or approximately 60.4% of SCG's average daily trading volume over the past month, of 1.4 million shares. Particularly high volume was seen for the $30 strike put option expiring May 18, 2018 , with 8,004 contracts trading so far today, representing approximately 800,400 underlying shares of SCG. Below is a chart showing SCG's trailing twelve month trading history, with the $30 strike highlighted in orange:
For the various different available expirations for DIS options , AAL options , or SCG 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $44 strike call option expiring May 11, 2018 , with 22,456 contracts trading so far today, representing approximately 2.2 million underlying shares of AAL. Below is a chart showing DIS's trailing twelve month trading history, with the $96.50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 57,379 contracts thus far today. That number of contracts represents approximately 5.7 million underlying shares, working out to a sizeable 79.6% of AAL's average daily trading volume over the past month, of 7.2 million shares.
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Below is a chart showing DIS's trailing twelve month trading history, with the $96.50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 57,379 contracts thus far today. Particularly high volume was seen for the $44 strike call option expiring May 11, 2018 , with 22,456 contracts trading so far today, representing approximately 2.2 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $44 strike highlighted in orange: And SCANA Corp (Symbol: SCG) saw options trading volume of 8,459 contracts, representing approximately 845,900 underlying shares or approximately 60.4% of SCG's average daily trading volume over the past month, of 1.4 million shares.
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Particularly high volume was seen for the $44 strike call option expiring May 11, 2018 , with 22,456 contracts trading so far today, representing approximately 2.2 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $44 strike highlighted in orange: And SCANA Corp (Symbol: SCG) saw options trading volume of 8,459 contracts, representing approximately 845,900 underlying shares or approximately 60.4% of SCG's average daily trading volume over the past month, of 1.4 million shares. Below is a chart showing DIS's trailing twelve month trading history, with the $96.50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 57,379 contracts thus far today.
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Particularly high volume was seen for the $44 strike call option expiring May 11, 2018 , with 22,456 contracts trading so far today, representing approximately 2.2 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $44 strike highlighted in orange: And SCANA Corp (Symbol: SCG) saw options trading volume of 8,459 contracts, representing approximately 845,900 underlying shares or approximately 60.4% of SCG's average daily trading volume over the past month, of 1.4 million shares. Below is a chart showing DIS's trailing twelve month trading history, with the $96.50 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 57,379 contracts thus far today.
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7057.0
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2018-05-07 00:00:00 UTC
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3 Terrible Reasons to Buy Northern Dynasty Minerals
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AAL
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https://www.nasdaq.com/articles/3-terrible-reasons-buy-northern-dynasty-minerals-2018-05-07
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nan
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nan
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With its stock cut in half since the start of the year and hovering near its 52-week low, Northern Dynasty Minerals (NYSEMKT: NAK) may be drawing increased attention from investors who are keen on adding some luster to their portfolios. A mineral exploration company, Northern Dynasty is dedicated to the development of the Pebble Project, a copper-gold-molybdenum deposit -- one of the largest in the world -- located in southwestern Alaska.
Northern Dynasty certainly has the potential to be a boon for shareholders, but this is far from enough reason to open a position. Instead, investors should tread carefully with this highly speculative stock, so let's dig in and examine several of the poorer reasons for opting to pick up shares.
1. Making America great again
With the election of Donald Trump, an outspoken advocate of domestic mineral production, many people believed that Northern Dynasty was now in a good position to complete the permitting phase of the Pebble Project and head farther down the path toward construction of the mine. This position seemed to be validated last summer when the company announced that the US Environmental Protection Agency was in the process of withdrawing its 2014 Clean Water Act Proposed Determination, something which would have restricted development of the mine.
Pinning one's hopes of Northern Dynasty's success in Alaska to the changing faces in Washington, however, is tenuous at best. In January, for example, EPA administrator, Scott Pruitt, cast doubt on the Pebble Project's development when he stated, "It is my judgment at this time that any mining projects in the region likely pose a risk to the abundant natural resources that exist there."
The development of the Pebble Project, which has been fraught with adversity for years, requires many more strokes of luck than the election of any one individual. In the days ahead, investors should keep this in mind. Neither the reelection of Donald Trump nor the election of another candidate who advocates for domestic mining will present Northern Dynasty with a yellow brick road to successful development of the mine.
2. Keeping things in balance
Prior to investing in any stock, it's critical that investors have a sense of the company's financial position. The bright promise of a company's potential, for example, can easily be overshadowed by a crippling debt load. In the case of Northern Dynasty, this is hardly the case, and one may be tempted to interpret the lucrative potential of the Pebble Project juxtaposed with the company's lack of debt as a compelling opportunity. The accuracy of this assessment, however, is tenuous at best. Granted, it's advantageous that the company finds itself without debt -- especially since it has no source of revenue -- but it raises the question of how the company manages to keep the lights on.
Instead of tapping the debt markets, the company is keen on raising equity to fund the development of the Pebble Project. Over the past five years, for example, shareholders have suffered dilution as the company's share count has more than tripled.
NAK Average Diluted Shares Outstanding (Annual) data by YCharts .
Shareholders, moreover, can be fairly certain that further dilution is on the horizon. Whether it comes at the hands of the agreement with First Quantum Minerals Ltd. , which has the right to to acquire a 50% interest in the Pebble Project for $1.35 billion or another deal (or maybe both).
3. What's in a name?
On its website, Northern Dynasty characterizes the Pebble deposit as "one of the greatest stores of mineral wealth ever discovered, and the world's largest undeveloped copper and gold resource." With a moniker like that, it's understandable how investors may be inspired to shell out some green for the chance to prosper from the bounteous gold waiting to be dug up in Alaska. Using the company's characterization of the deposit as a rationalization for an investment, however, is more akin to an investment thesis grounded in quicksand than terra firma.
Even if the company secures the necessary permits, constructs the mine, and commences mineral production, there's no guarantee that the project will maintain a cost profile which makes the Pebble Project a profitable endeavor. The questionable economics of the project, in fact, is nothing new. In a critical report on Northern Dynasty, Kerrisdale Capital cites the previous owner of the Pebble deposit, Anglo American , which estimated that "building the mine would destroy billions of dollars of value." Cutting through the illusion of the Pebble Project's value, Kerrisdale Capital -- which maintains a short position in the stock -- echoes the opinion of Anglo American, going so far as identifying Northern Dynasty as "worthless."
Investor takeaway
Since its discovery nearly 30 years ago, the Pebble deposit has inspired investors' hopes of striking it rich, but it's beleaguered history illustrates the rocky road which lies before anyone who aspires to dig its riches from the ground. Furthermore, one doesn't need to be the savviest of investors to recognize that an investment in Northern Dynasty bears an inordinate degree of risk. For some, the amount of risk may be tolerable; however, they would be best-suited to have investing theses which transcend flimsy factors like the personnel in Washington, the company's balance sheet, and the deposit's untapped mineral wealth.
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Scott Levine 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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With its stock cut in half since the start of the year and hovering near its 52-week low, Northern Dynasty Minerals (NYSEMKT: NAK) may be drawing increased attention from investors who are keen on adding some luster to their portfolios. Making America great again With the election of Donald Trump, an outspoken advocate of domestic mineral production, many people believed that Northern Dynasty was now in a good position to complete the permitting phase of the Pebble Project and head farther down the path toward construction of the mine. In a critical report on Northern Dynasty, Kerrisdale Capital cites the previous owner of the Pebble deposit, Anglo American , which estimated that "building the mine would destroy billions of dollars of value."
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Making America great again With the election of Donald Trump, an outspoken advocate of domestic mineral production, many people believed that Northern Dynasty was now in a good position to complete the permitting phase of the Pebble Project and head farther down the path toward construction of the mine. On its website, Northern Dynasty characterizes the Pebble deposit as "one of the greatest stores of mineral wealth ever discovered, and the world's largest undeveloped copper and gold resource." Cutting through the illusion of the Pebble Project's value, Kerrisdale Capital -- which maintains a short position in the stock -- echoes the opinion of Anglo American, going so far as identifying Northern Dynasty as "worthless."
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A mineral exploration company, Northern Dynasty is dedicated to the development of the Pebble Project, a copper-gold-molybdenum deposit -- one of the largest in the world -- located in southwestern Alaska. Making America great again With the election of Donald Trump, an outspoken advocate of domestic mineral production, many people believed that Northern Dynasty was now in a good position to complete the permitting phase of the Pebble Project and head farther down the path toward construction of the mine. Cutting through the illusion of the Pebble Project's value, Kerrisdale Capital -- which maintains a short position in the stock -- echoes the opinion of Anglo American, going so far as identifying Northern Dynasty as "worthless."
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Northern Dynasty certainly has the potential to be a boon for shareholders, but this is far from enough reason to open a position. Cutting through the illusion of the Pebble Project's value, Kerrisdale Capital -- which maintains a short position in the stock -- echoes the opinion of Anglo American, going so far as identifying Northern Dynasty as "worthless." * David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Northern Dynasty Minerals wasn't one of them!
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7058.0
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2018-05-04 00:00:00 UTC
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American Airlines Group, Inc. (AAL) Ex-Dividend Date Scheduled for May 07, 2018
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc-aal-ex-dividend-date-scheduled-may-07-2018-2018-05-04
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nan
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nan
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American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on May 07, 2018. A cash dividend payment of $0.1 per share is scheduled to be paid on May 22, 2018. Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 16th quarter that AAL has paid the same dividend. At the current stock price of $42.11, the dividend yield is .95%.
The previous trading day's last sale of AAL was $42.11, representing a -28.72% decrease from the 52 week high of $59.08 and a 3.59% increase over the 52 week low of $40.65.
AAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and Delta Air Lines, Inc. ( DAL ). AAL's current earnings per share, an indicator of a company's profitability, is $3.84. Zacks Investment Research reports AAL's forecasted earnings growth in 2018 as 12.07%, compared to an industry average of 1.2%.
For more information on the declaration, record and payment dates, visit the AAL Dividend History page. Our Dividend Calendar has the full list of stocks that have an ex-dividend today.
Interested in gaining exposure to AAL through an Exchange Traded Fund [ETF]?
The following ETF(s) have AAL as a top-10 holding:
iShares Trust ( IYT )
iShares Trust ( INDF )
PowerShares Dynamic LargeCap Value ( PWV )
Nationwide Maximum Diversification U.S. Core Equity ETF ( MXDU )
Direxion NASDAQ-100 Equal Weighted Index Shares ( QQQE ).
The top-performing ETF of this group is QQQE with an increase of 1.5% over the last 100 days. IYT has the highest percent weighting of AAL at 2.67%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAL is a part of the Transportation sector, which includes companies such as FedEx Corporation ( FDX ) and Delta Air Lines, Inc. ( DAL ). Zacks Investment Research reports AAL's forecasted earnings growth in 2018 as 12.07%, compared to an industry average of 1.2%. For more information on the declaration, record and payment dates, visit the AAL Dividend History page.
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The following ETF(s) have AAL as a top-10 holding: iShares Trust ( IYT ) iShares Trust ( INDF ) PowerShares Dynamic LargeCap Value ( PWV ) Nationwide Maximum Diversification U.S. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on May 07, 2018.
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Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment. For more information on the declaration, record and payment dates, visit the AAL Dividend History page. The following ETF(s) have AAL as a top-10 holding: iShares Trust ( IYT ) iShares Trust ( INDF ) PowerShares Dynamic LargeCap Value ( PWV ) Nationwide Maximum Diversification U.S.
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AAL's current earnings per share, an indicator of a company's profitability, is $3.84. American Airlines Group, Inc. ( AAL ) will begin trading ex-dividend on May 07, 2018. Shareholders who purchased AAL prior to the ex-dividend date are eligible for the cash dividend payment.
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7059.0
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2018-05-04 00:00:00 UTC
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Southwest a Step Closer to Hawaii: Hawaiian Holdings Slides
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AAL
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https://www.nasdaq.com/articles/southwest-a-step-closer-to-hawaii%3A-hawaiian-holdings-slides-2018-05-04
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nan
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nan
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Shares of Hawaiian Holdings, Inc.HA , the parent company of Hawaiian Airlines, declined 6.5% on May 3 to $38.25 due to fears of intensifying competition in Hawaii as Southwest Airlines Co.LUV unveiled a detailed plan to offer flights connecting Hawaii and California. Subsequently, Southwest Airlines intends to offer inter-island flights. These flights will be offered by Southwest at much lower prices than those currently operated by Hawaiian Airlines.
As Hawaiian Holdings derives a bulk of its revenues from inter-island flights, it is natural that the stock price of this Honolulu County, HI based company was hurt significantly by fears of a decline in the company's market share.
Plan in Detail
Southwest had initially announced its plans last year to fly to Hawaii. The Dallas-based low-cost carrier provided more details on May 3. The carrier said that it will at first offer non-stop flights connecting Hawaii to four California cities - San Jose, San Diego, Sacramento and Oakland. The service will commence following authorization by the Federal Aviation Administration. Tickets are expected to be sold later this year.
Southwest intends to initially operate flights connecting Chicago to the following airports in the island - Honolulu, Lihue Airport, Kona International Airport and Kahului Airport. The inter-island flights will take to the skies after the Chicago-Hawaii operations "ramp up."
Apart from Southwest, American Airlines Group Inc. AAL had recently stated that it intends to offer flights connecting Chicago and Honolulu in winter. American Airlines' entry into Hawaii, a popular tourist destination, is likely to intensify competition for Hawaiian Holdings. No wonder, the stock is feeling the heat.
Investors would keenly await further updates on this burning issue.
Zacks Rank & Stock to Consider
Hawaiian Holdings carries a Zacks Rank #3 (Hold), while Southwest is a Zacks Rank #5 (Strong Sell) stock. A better-ranked stock in the airline space is SkyWest, Inc. SKYW , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of SkyWest have rallied more than 59% in a year.
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Southwest Airlines Co. (LUV): Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Apart from Southwest, American Airlines Group Inc. AAL had recently stated that it intends to offer flights connecting Chicago and Honolulu in winter. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines' entry into Hawaii, a popular tourist destination, is likely to intensify competition for Hawaiian Holdings.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Apart from Southwest, American Airlines Group Inc. AAL had recently stated that it intends to offer flights connecting Chicago and Honolulu in winter. Shares of Hawaiian Holdings, Inc.HA , the parent company of Hawaiian Airlines, declined 6.5% on May 3 to $38.25 due to fears of intensifying competition in Hawaii as Southwest Airlines Co.LUV unveiled a detailed plan to offer flights connecting Hawaii and California.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Apart from Southwest, American Airlines Group Inc. AAL had recently stated that it intends to offer flights connecting Chicago and Honolulu in winter. Shares of Hawaiian Holdings, Inc.HA , the parent company of Hawaiian Airlines, declined 6.5% on May 3 to $38.25 due to fears of intensifying competition in Hawaii as Southwest Airlines Co.LUV unveiled a detailed plan to offer flights connecting Hawaii and California.
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Apart from Southwest, American Airlines Group Inc. AAL had recently stated that it intends to offer flights connecting Chicago and Honolulu in winter. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Hawaiian Holdings, Inc.HA , the parent company of Hawaiian Airlines, declined 6.5% on May 3 to $38.25 due to fears of intensifying competition in Hawaii as Southwest Airlines Co.LUV unveiled a detailed plan to offer flights connecting Hawaii and California.
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7060.0
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2018-05-03 00:00:00 UTC
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Delta's (DAL) April Traffic Increases, Load Factor Down
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AAL
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https://www.nasdaq.com/articles/deltas-dal-april-traffic-increases-load-factor-down-2018-05-03
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nan
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Delta Air Lines, Inc . DAL reported traffic figures for April 2018. Consolidated traffic, measured in revenue passenger miles (RPMs), came in at 18.26 billion, up 3.7% year over year.
Consolidated capacity (or available seat miles/ASMs) climbed 4% to 21.45 billion on a year-over-year basis. Consolidated load factor or percentage of seats filled by passengers contracted 20 basis points to 85.1% due to capacity expansion exceeding traffic growth.
Additionally, the carrier recorded an on-time performance (mainline) of 86.4% and completion factor (mainline) of 99.7% for the month. Approximately, 15.9 million passengers flew on Delta during the period.
In the first four months of 2018, Delta generated consolidated RPMs of 67.54 billion (up 3% year over year) and ASMs of 80.91 billion (up 3.1% year over year). Notably, load factor was 83.5%, unchanged from the tally in April 2017.
Delta Air Lines, Inc. Price
Delta Air Lines, Inc. Price | Delta Air Lines, Inc. Quote
Last month, this Zacks Rank #3 (Hold) company reported first-quarter earnings and revenue figures. It surpassed the Zacks Consensus Estimate on both counts. However, the bottom line declined year over year on high fuel costs. Moreover, the winter storms, which caused multiple flight cancellations, hurt results. While the top line improved from the year-ago number on the back of strong demand for air travel. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Key airline players like American Airlines Group Inc. AAL , United Continental Holdings, Inc. UAL and Southwest Airlines Co. LUV also reported their respective financial figures last month. While United Continental posted better-than-expected results in the first quarter, American Airlines' earnings bettered estimates but delivered lower-than-expected revenues. Meanwhile, Southwest Airlines' bottom line in the first quarter matched the Zacks Consensus Estimate whereas revenues lagged the same.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Key airline players like American Airlines Group Inc. AAL , United Continental Holdings, Inc. UAL and Southwest Airlines Co. LUV also reported their respective financial figures last month. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Consolidated load factor or percentage of seats filled by passengers contracted 20 basis points to 85.1% due to capacity expansion exceeding traffic growth.
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Key airline players like American Airlines Group Inc. AAL , United Continental Holdings, Inc. UAL and Southwest Airlines Co. LUV also reported their respective financial figures last month. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Delta Air Lines, Inc. Price Delta Air Lines, Inc. Price | Delta Air Lines, Inc. Quote Last month, this Zacks Rank #3 (Hold) company reported first-quarter earnings and revenue figures.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Key airline players like American Airlines Group Inc. AAL , United Continental Holdings, Inc. UAL and Southwest Airlines Co. LUV also reported their respective financial figures last month. In the first four months of 2018, Delta generated consolidated RPMs of 67.54 billion (up 3% year over year) and ASMs of 80.91 billion (up 3.1% year over year).
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Key airline players like American Airlines Group Inc. AAL , United Continental Holdings, Inc. UAL and Southwest Airlines Co. LUV also reported their respective financial figures last month. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Delta Air Lines, Inc. Price Delta Air Lines, Inc. Price | Delta Air Lines, Inc. Quote Last month, this Zacks Rank #3 (Hold) company reported first-quarter earnings and revenue figures.
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7061.0
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2018-05-03 00:00:00 UTC
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American Airlines to Pull the Plug on Chicago-Beijing Service
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AAL
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https://www.nasdaq.com/articles/american-airlines-to-pull-the-plug-on-chicago-beijing-service-2018-05-03
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nan
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nan
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American Airlines Group Inc.AAL announced that it will discontinue flights connecting Chicago's O'Hare International Airport and Beijing, from October this year. In fact, the route has been in operation for long but has not been able to rake in profits. In spite of this, the carrier maintained its services to the city, keeping the convenience of its fliers in mind.
However, continued lack of profitability made the Fort Worth, TX- based carrier decide against continuing its service on the route, thereby trimming its Chinese exposure. After American Airlines' exit, United Continental Holdings, Inc. UAL and the China-based Hainan Airlines, are reportedly the only ones to offer non-stop flights on the Chicago-Beijing route.
However, we note that American Airlines has not completely turned its back on China. The carrier will continue to operate flights connecting Beijing with Dallas as well as Los Angeles. In fact, American Airlines intends to utilize the new international airport at China's capital, slated to be operational from 2019.
New Routes Introduced
While announcing its decision to terminate the Chicago-Beijing service, American Airlines introduced several other routes. In a customer-friendly move, it announced the launch of multiple new flights (seasonal as well as year-round) to the Caribbean and Hawaii.
For example, the carrier intends to start seasonal service from Chicago to Honolulu, that will run through the annual spring break season. The flights are scheduled to start from Dec 19. The carrier also intends to offer services during the winter season from Chicago to several Caribbean cities.
Zacks Rank & Stocks to Consider
American Airlines carries a Zacks Rank #3 (Hold). Better-ranked airline stocks include SkyWest, Inc. SKYW and Gol Linhas Aereas Inteligentes S.A. GOL . While SkyWest sports a Zacks Rank #1 (Strong Buy), Gol Linhas holds a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of SkyWest and Gol Linhas have rallied more than 59% and 60%, respectively, in a year.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc.AAL announced that it will discontinue flights connecting Chicago's O'Hare International Airport and Beijing, from October this year. Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, American Airlines intends to utilize the new international airport at China's capital, slated to be operational from 2019.
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Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL announced that it will discontinue flights connecting Chicago's O'Hare International Airport and Beijing, from October this year. Better-ranked airline stocks include SkyWest, Inc. SKYW and Gol Linhas Aereas Inteligentes S.A. GOL .
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Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL announced that it will discontinue flights connecting Chicago's O'Hare International Airport and Beijing, from October this year. After American Airlines' exit, United Continental Holdings, Inc. UAL and the China-based Hainan Airlines, are reportedly the only ones to offer non-stop flights on the Chicago-Beijing route.
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American Airlines Group Inc.AAL announced that it will discontinue flights connecting Chicago's O'Hare International Airport and Beijing, from October this year. Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, the route has been in operation for long but has not been able to rake in profits.
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7062.0
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2018-05-03 00:00:00 UTC
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Ex-Dividend Reminder: Macerich, Federated Investors and American Airlines Group
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AAL
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https://www.nasdaq.com/articles/ex-dividend-reminder-macerich-federated-investors-and-american-airlines-group-2018-05-03
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nan
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nan
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Looking at the universe of stocks we cover at Dividend Channel , on 5/7/18, Macerich Co (Symbol: MAC), Federated Investors Inc (Symbol: FII), and American Airlines Group Inc (Symbol: AAL) will all trade ex-dividend for their respective upcoming dividends. Macerich Co will pay its quarterly dividend of $0.74 on 6/1/18, Federated Investors Inc will pay its quarterly dividend of $0.27 on 5/15/18, and American Airlines Group Inc will pay its quarterly dividend of $0.10 on 5/22/18. As a percentage of MAC's recent stock price of $56.85, this dividend works out to approximately 1.30%, so look for shares of Macerich Co to trade 1.30% lower - all else being equal - when MAC shares open for trading on 5/7/18. Similarly, investors should look for FII to open 1.08% lower in price and for AAL to open 0.24% lower, all else being equal.
Below are dividend history charts for MAC, FII, and AAL, showing historical dividends prior to the most recent ones declared.
Macerich Co (Symbol: MAC) :
Federated Investors Inc (Symbol: FII) :
American Airlines Group Inc (Symbol: AAL) :
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 5.21% for Macerich Co , 4.32% for Federated Investors Inc , and 0.94% for American Airlines Group Inc.
In Thursday trading, Macerich Co shares are currently down about 1.2%, Federated Investors Inc shares are off about 0.7%, and American Airlines Group Inc shares are up about 0.2% 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Looking at the universe of stocks we cover at Dividend Channel , on 5/7/18, Macerich Co (Symbol: MAC), Federated Investors Inc (Symbol: FII), and American Airlines Group Inc (Symbol: AAL) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for FII to open 1.08% lower in price and for AAL to open 0.24% lower, all else being equal. Below are dividend history charts for MAC, FII, and AAL, showing historical dividends prior to the most recent ones declared.
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Looking at the universe of stocks we cover at Dividend Channel , on 5/7/18, Macerich Co (Symbol: MAC), Federated Investors Inc (Symbol: FII), and American Airlines Group Inc (Symbol: AAL) will all trade ex-dividend for their respective upcoming dividends. Macerich Co (Symbol: MAC) : Federated Investors Inc (Symbol: FII) : American Airlines Group Inc (Symbol: AAL) : In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for FII to open 1.08% lower in price and for AAL to open 0.24% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel , on 5/7/18, Macerich Co (Symbol: MAC), Federated Investors Inc (Symbol: FII), and American Airlines Group Inc (Symbol: AAL) will all trade ex-dividend for their respective upcoming dividends. Macerich Co (Symbol: MAC) : Federated Investors Inc (Symbol: FII) : American Airlines Group Inc (Symbol: AAL) : In general, dividends are not always predictable, following the ups and downs of company profits over time. Similarly, investors should look for FII to open 1.08% lower in price and for AAL to open 0.24% lower, all else being equal.
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Looking at the universe of stocks we cover at Dividend Channel , on 5/7/18, Macerich Co (Symbol: MAC), Federated Investors Inc (Symbol: FII), and American Airlines Group Inc (Symbol: AAL) will all trade ex-dividend for their respective upcoming dividends. Similarly, investors should look for FII to open 1.08% lower in price and for AAL to open 0.24% lower, all else being equal. Below are dividend history charts for MAC, FII, and AAL, showing historical dividends prior to the most recent ones declared.
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7063.0
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2018-05-02 00:00:00 UTC
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Rising Costs Hit American Airlines Group, Inc. Again
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AAL
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https://www.nasdaq.com/articles/rising-costs-hit-american-airlines-group-inc-again-2018-05-02
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nan
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nan
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For more than a year, American Airlines (NASDAQ: AAL) CEO Doug Parker has been touting his company's ability to earn a $5 billion pre-tax profit in a typical year. However, after hitting that earnings target in 2015 and 2016, American Airlines fell well short in 2017, posting an adjusted pre-tax profit of $3.8 billion.
With fuel costs rising, pre-tax profit is set to decline again in 2018, putting it even closer to the $3 billion mark that supposedly represents a worst-case scenario for American Airlines. Indeed, the company reported last week that pre-tax earnings fell sharply in the first quarter. At that time, it also cut its full-year earnings per share guidance. Considering this ongoing earnings pressure and the company's weak balance sheet, investors should avoid American Airlines stock.
Another weak quarter
After posting steep declines in revenue per available seat mile (RASM) in 2015 and early 2016, American Airlines has achieved consistent unit revenue growth since mid-2016. Nevertheless, its profitability has continued to sag thanks to big cost increases .
This trend continued last quarter. American Airlines posted a solid 3.5% RASM increase, driven by strong growth in cargo and other revenue, along with double-digit growth in passenger unit revenue on routes to Latin America. Yet that wasn't enough to offset a 2.8% rise in adjusted non-fuel unit costs and a 23.6% surge in the average fuel price American paid.
As a result, American's adjusted pre-tax margin fell to 4.5% from 6.7% a year earlier. Adjusted pre-tax profit plunged nearly 30% to $468 million. And while a lower tax rate and share repurchases helped prop up EPS, American Airlines still reported that adjusted EPS slipped to $0.75 from $0.82 a year earlier.
Falling toward the back of the pack
In the first quarter, American Airlines remained ahead of perennial underperformer United Continental (NYSE: UAL) in terms of profitability. United posted a meager 2% adjusted pre-tax margin last quarter. However, American is set to fall to the back of the pack this quarter.
The two carriers were roughly evenly matched in the second quarter of 2017. American Airlines achieved a 13.5% adjusted pre-tax margin, compared to 13.2% for United Continental. For the second quarter of 2018, American Airlines expects RASM to rise by 1.5% to 3.5%: roughly similar to United's projected revenue performance. On the other hand, United's non-fuel unit costs will be roughly flat year over year in the second quarter, whereas American's guidance calls for a 3.5% increase.
As a result, American Airlines estimates that its adjusted pre-tax margin will be between 7.5% and 9.5% this quarter, compared to a 9% to 11% guidance range at United Continental.
Additionally, American Airlines cut its full-year EPS guidance range by $0.50. It now expects EPS of $5.00 to $6.00 in 2018. By contrast, United recently raised the low end of its full-year guidance and now expects to achieve EPS of $7.00 to $8.50 this year. American is still likely to record a higher adjusted pre-tax margin for the full year -- but only by a sliver.
American Airlines stock still doesn't look like a bargain
Shares of American Airlines plunged more than 6% after the earnings release last Thursday. The stock currently trades for about eight times the midpoint of the company's updated EPS guidance range.
Nevertheless, American Airlines stock is hardly a bargain. While management believes profitability will recover once fuel prices stabilize, there's no guarantee that will happen, given the intensity of competition in the airline industry. Meanwhile, American has loaded itself up with $25 billion of debt, nearly $12 billion of which is due between now and the end of 2021. To make matters worse, American's pension payments are set to spike next year.
This means the company could find itself in hot water if oil prices continue to surge, interest rates spike, and/or the economy tilts into recession. Even if American Airlines manages to avoid further profit declines, its substantial debt, pension, and capex obligations will prevent it from continuing the massive share buyback programs it has used to juice EPS growth in recent years. Thus, American Airlines stock carries way too much risk for the potential reward.
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Adam Levine-Weinberg 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For more than a year, American Airlines (NASDAQ: AAL) CEO Doug Parker has been touting his company's ability to earn a $5 billion pre-tax profit in a typical year. With fuel costs rising, pre-tax profit is set to decline again in 2018, putting it even closer to the $3 billion mark that supposedly represents a worst-case scenario for American Airlines. Falling toward the back of the pack In the first quarter, American Airlines remained ahead of perennial underperformer United Continental (NYSE: UAL) in terms of profitability.
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For more than a year, American Airlines (NASDAQ: AAL) CEO Doug Parker has been touting his company's ability to earn a $5 billion pre-tax profit in a typical year. As a result, American's adjusted pre-tax margin fell to 4.5% from 6.7% a year earlier. American Airlines achieved a 13.5% adjusted pre-tax margin, compared to 13.2% for United Continental.
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For more than a year, American Airlines (NASDAQ: AAL) CEO Doug Parker has been touting his company's ability to earn a $5 billion pre-tax profit in a typical year. As a result, American Airlines estimates that its adjusted pre-tax margin will be between 7.5% and 9.5% this quarter, compared to a 9% to 11% guidance range at United Continental. American Airlines stock still doesn't look like a bargain Shares of American Airlines plunged more than 6% after the earnings release last Thursday.
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For more than a year, American Airlines (NASDAQ: AAL) CEO Doug Parker has been touting his company's ability to earn a $5 billion pre-tax profit in a typical year. Yet that wasn't enough to offset a 2.8% rise in adjusted non-fuel unit costs and a 23.6% surge in the average fuel price American paid. By contrast, United recently raised the low end of its full-year guidance and now expects to achieve EPS of $7.00 to $8.50 this year.
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7064.0
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2018-05-01 00:00:00 UTC
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Why You Must Hold onto American Airlines (AAL) Stock Now
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AAL
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https://www.nasdaq.com/articles/why-you-must-hold-onto-american-airlines-aal-stock-now-2018-05-01
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American Airlines Group Inc . AAL has its share of positives, despite the prevalent negative sentiment due to rising fuel costs. On the flip side, with the metric persistently increasing and eating into the company's profits, it is likely that the carrier will pass on the high-cost burden to passengers' pockets. Notably, during first-quarter 2018 earnings release, American Airlines CEO warned of rising air fares in the near future, which bodes well for airline companies in boosting the top line.
Shares of American Airlines have nudged up 1.3% since the earnings announcement on Apr 26, marginally outperforming the industry 's 1.2% rise.
The company reported better-than-expected earnings per share in the first quarter. Moreover, the bottom line increased 23% on a year-over-year basis despite higher costs. Strong demand for air travel also led to a year-over-year improvement in the top line.
The company's performance with respect to unit revenues is also encouraging. Total revenue per available seat miles (TRASM: a key measure of unit revenue) improved 3.5% to 15.80 cents in the quarter under review. Moreover, the metric is anticipated to increase 1.5- 3.5% in the second quarter.
American Airlines' initiatives to reward shareholders through dividends and share buybacks are also impressive. During the first quarter, the company returned $498 million to shareholders via payouts and repurchases. The carrier also announced a dividend of 10 cents per share.
Additionally, we expect an uptick in such shareholder-friendly moves, courtesy of the new tax law. The huge savings from the reduced corporate tax rate will leave more cash in hand for the company to fund its investor-oriented activities.
The company's employee-friendly schemes are another positive. The staff at American Airlines earned more than $240 million in 2017, as part of the company's profit-sharing scheme.
The company also has a good VGM Score of B. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of all three scores. Such a score allows you to eliminate pessimism built around the stocks and select winners accordingly. However, it is imperative to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score.
In light of the above positives, we believe investors should hold on to American Airlines stock for now, despite the threat posed by rising oil prices .
Zacks Rank & Key Picks
American Airlines carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the airline space are Cathay Pacific Airways Ltd. CPCAY , Gol Linhas Aereas Inteligentes S.A. GOL and SkyWest, Inc. SKYW , each holding a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Shares of Cathay Pacific Airways, Gol Linhas and SkyWest have rallied more than 12%, 61% and 53%, respectively, in a year.
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Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report
Cathay Pacific Airways Ltd. (CPCAY): Free Stock Analysis Report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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AAL has its share of positives, despite the prevalent negative sentiment due to rising fuel costs. Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Cathay Pacific Airways Ltd. (CPCAY): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. On the flip side, with the metric persistently increasing and eating into the company's profits, it is likely that the carrier will pass on the high-cost burden to passengers' pockets.
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Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Cathay Pacific Airways Ltd. (CPCAY): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. AAL has its share of positives, despite the prevalent negative sentiment due to rising fuel costs. Zacks Rank & Key Picks American Airlines carries a Zacks Rank #3 (Hold).
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Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Cathay Pacific Airways Ltd. (CPCAY): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. AAL has its share of positives, despite the prevalent negative sentiment due to rising fuel costs. Notably, during first-quarter 2018 earnings release, American Airlines CEO warned of rising air fares in the near future, which bodes well for airline companies in boosting the top line.
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AAL has its share of positives, despite the prevalent negative sentiment due to rising fuel costs. Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Cathay Pacific Airways Ltd. (CPCAY): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc .
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7065.0
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2018-04-30 00:00:00 UTC
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United Continental Arm Ups Azul Stake to 8%, Shares Up
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AAL
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https://www.nasdaq.com/articles/united-continental-arm-ups-azul-stake-to-8-shares-up-2018-04-30
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United Continental Holdings, Inc .'s UAL wholly owned subsidiary, United Airlines, has increased its stake in the Brazilian carrier, Azul S.A. AZUL . Notably, United Airlines purchased shares of Azul from Hainan Airlines, a China-based carrier, thereby raising its stake to 8% from its previous 3.7% in the carrier. The move found favor with investors as the United Continental stock gained 1.9% on Apr 27 to $67.86.
Through this initiative, the carrier aims to offer its customers with more connectivity options between the United States and Brazil. Moreover, the former is a popular tourist destination for the citizens of the latter. The strategy is indicative of the carrier's initiatives to attract traffic to the location and thus generate revenues.
United Airlines made its first investment in the carrier in 2015. This Chicago-based carrier claims that traffic connecting the two countries has been at its peak ever since.
Under the current code share agreement between the two airlines, passengers of both carriers can connect at Fort Lauderdale, Orlando as well as Sao Paulo Guarulhos airports.
United Continental Holdings, Inc. Price
United Continental Holdings, Inc. Price | United Continental Holdings, Inc. Quote
The US airline industry has long been trying to tap the large Brazilian market. To this end, the Open Skies treaty was signed in 2011 to enhance travel between the two countries. However, there was a stiff opposition from the Brazilian airlines in the past as they feared competition from the US carriers.
Removing all uncertainties, Brazil's senate approved the treaty in March 2018. The agreement will be legalized once the Brazilian President endorses it.
With the approval of the Open Skies treaty, United Airlines and Azul will possibly proceed with their much-awaited joint venture . Also, LATAM Airlines Group S.A. LTM plans to collaborate with American Airlines Group Inc. AAL .
United Continental Holdings carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
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LATAM Airlines Group S.A. (LTM): Free Stock Analysis Report
AZUL SA (AZUL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Also, LATAM Airlines Group S.A. LTM plans to collaborate with American Airlines Group Inc. AAL . Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis Report AZUL SA (AZUL): Free Stock Analysis Report To read this article on Zacks.com click here. Through this initiative, the carrier aims to offer its customers with more connectivity options between the United States and Brazil.
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Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis Report AZUL SA (AZUL): Free Stock Analysis Report To read this article on Zacks.com click here. Also, LATAM Airlines Group S.A. LTM plans to collaborate with American Airlines Group Inc. AAL . United Continental Holdings, Inc. Price United Continental Holdings, Inc. Price | United Continental Holdings, Inc. Quote The US airline industry has long been trying to tap the large Brazilian market.
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Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis Report AZUL SA (AZUL): Free Stock Analysis Report To read this article on Zacks.com click here. Also, LATAM Airlines Group S.A. LTM plans to collaborate with American Airlines Group Inc. AAL . Notably, United Airlines purchased shares of Azul from Hainan Airlines, a China-based carrier, thereby raising its stake to 8% from its previous 3.7% in the carrier.
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Also, LATAM Airlines Group S.A. LTM plans to collaborate with American Airlines Group Inc. AAL . Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis Report AZUL SA (AZUL): Free Stock Analysis Report To read this article on Zacks.com click here. 's UAL wholly owned subsidiary, United Airlines, has increased its stake in the Brazilian carrier, Azul S.A. AZUL .
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7066.0
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2018-04-29 00:00:00 UTC
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After Earnings, American Airlines Group Inc Stock Headed for Bumpy Ride
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https://www.nasdaq.com/articles/after-earnings-american-airlines-group-inc-stock-headed-bumpy-ride-2018-04-29
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The issue for airline stocks like American Airlines Group Inc (NASDAQ: AAL ) is whether investors really can trust the sector - at all. The fact that American Airlines shares trade at just 6x forward EPS estimates shows that the market still has quite a bit of skepticism. But a strong run in AAL stock following its 2014 bankruptcy exit shows that there is money to be made in the sector… sometimes.
Coming out of what looks like a disappointing Q1 earnings report on Thursday, the news for AAL, and the sector, still looks mixed. Delta Air Lines, Inc. (NYSE: DAL ) and United Continental Holdings Inc (NYSE: UAL ) posted strong reports earlier this month. AAL and Southwest Airlines Co (NYSE: LUV ), however, both disappointed on Thursday. Rising fuel costs are a near-term concern. Longer-term, the always-fragile competitive situation remains a risk.
Overall, I still see some value in the sector. Indeed, I argued this month that Delta looks like a compelling buy . But coming out of earnings, I think AAL stock doesn't quite measure up to its peers.
Seeing AAL Earnings Differently
From a headline standpoint, American's Q1 earnings look reasonably solid. Adjusted EPS of 75 cents came in 3 cents better than Street estimates. Revenue of $10.5 billion fell short of consensus - but by about $20 million, or ~0.2%.
5 Stocks That Could Be the Next Amazon
But the market saw the report differently. AAL stock at one point Thursday was down as much as 10%, before trimming losses to 6.4% on the day. And the primary culprit looks to be rising fuel costs. American Airlines cut its full-year guidance to $5-$6 per share, down 50 cents from the previous range. That ~9% cut in guidance was almost exactly mirrored by the initial sell-off - but American Airlines shares have rallied from those lows.
Is AAL Stock Sell-off an Overreaction?
There is a case that a 10% decline was an overreaction - and clearly some investors are putting money behind that case. AAL stock rebounded in afternoon trading on Thursday, and another 2% through the first half of Friday's session.
After all, fuel costs are an industry-wide problem, as CEO Doug Parker pointed out on the Q1 conference call . American Airlines eventually will be able to push up pricing to compensate. Per the call, fuel costs rose a whopping $441 million year-over-year. Adjusted operating income, however, declined just $232 million.
In other words, had fuel prices held steady, AAL would have increased its operating income roughly 22% . There is some one-time help on the expense front (some expenses shifted in Q2, again per the call). But in terms of what it can control, American Airlines actually had a pretty solid quarter. And while fuel costs are hitting 2018 guidance, their impact should moderate and even reverse by next year even if prices stay as high as they are now.
In the meantime, AAL stock dipped to near a post-election low - and reached its lowest levels of the past year before bouncing. It's not as if investors were pricing in torrid growth, or as if the market was unaware of the fuel cost issue heading into the report. Q1 shouldn't be a surprise, necessarily. And with AAL shares already dipping ahead of the report, the sell-off looks like potentially too much.
Two Concerns About American Airlines Stock
Despite a cheap price and a stock near historic lows, there are two concerns for American Airlines stock coming out of earnings. The first is the health of the industry as a whole. It's true that Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK.A , BRK.B ) invested in the sector after the Oracle of Omaha himself swore off airlines . But airline stocks haven't done that well of late in an economy and a market where they should be soaring (pardon the pun).
Barrick Gold Corp (USA) Stock Has Been a Colossal Failure
And the long-term risks cited by Buffett and so many others still persist. As my InvestorPlace colleague James Brumley pointed out ahead of earnings, United's recent commentary has raised fears of yet another destructive price war. A fatality at Southwest and a '60 Minutes' report critical of safety practices at Allegiant Travel Company (NASDAQ: ALGT ), combined with higher prices, may add to near-term concerns about demand. I'm not sure long-term investors can quite trust the industry just yet.
The second concern is whether AAL stock is the best play in the sector. And I don't think that's the case. LUV stock has matched the decline in AAL shares so far this year, and I'd rather have the discount airline's business model long-term, even at a higher multiple. DAL looks stronger to me as well.
I don't think AAL is a bad play by any means. I can see the argument value investors might make both for American Airlines stock and the sector as a whole. AAL's post-earnings decline indeed might be an overreaction. But in looking for the most compelling play in the sector, amid fuel cost and capacity concerns, I'd go in a different direction than American.
As of this writing, Vince Martin has no positions in any of the aforementioned securities.
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The post After Earnings, American Airlines Group Inc Stock Headed for Bumpy Ride 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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LUV stock has matched the decline in AAL shares so far this year, and I'd rather have the discount airline's business model long-term, even at a higher multiple. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The issue for airline stocks like American Airlines Group Inc (NASDAQ: AAL ) is whether investors really can trust the sector - at all. But a strong run in AAL stock following its 2014 bankruptcy exit shows that there is money to be made in the sector… sometimes.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The issue for airline stocks like American Airlines Group Inc (NASDAQ: AAL ) is whether investors really can trust the sector - at all. But a strong run in AAL stock following its 2014 bankruptcy exit shows that there is money to be made in the sector… sometimes. Coming out of what looks like a disappointing Q1 earnings report on Thursday, the news for AAL, and the sector, still looks mixed.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The issue for airline stocks like American Airlines Group Inc (NASDAQ: AAL ) is whether investors really can trust the sector - at all. But a strong run in AAL stock following its 2014 bankruptcy exit shows that there is money to be made in the sector… sometimes. Coming out of what looks like a disappointing Q1 earnings report on Thursday, the news for AAL, and the sector, still looks mixed.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips The issue for airline stocks like American Airlines Group Inc (NASDAQ: AAL ) is whether investors really can trust the sector - at all. But a strong run in AAL stock following its 2014 bankruptcy exit shows that there is money to be made in the sector… sometimes. Coming out of what looks like a disappointing Q1 earnings report on Thursday, the news for AAL, and the sector, still looks mixed.
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7067.0
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2018-04-26 00:00:00 UTC
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Nasdaq 100 Movers: EBAY, ORLY
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https://www.nasdaq.com/articles/nasdaq-100-movers-ebay-orly-2018-04-26
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In early trading on Thursday, shares of O'Reilly Automotive topped the list of the day's best performing components of the Nasdaq 100 index, trading up 12.1%. Year to date, O'Reilly Automotive, registers a 6.1% gain.
And the worst performing Nasdaq 100 component thus far on the day is eBay, trading down 5.4%. eBay is showing a gain of 2.6% looking at the year to date performance.
Two other components making moves today are American Airlines Group, trading down 4.6%, and Facebook, trading up 7.4% on the day.
VIDEO: Nasdaq 100 Movers: EBAY, ORLY
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Nasdaq 100 component thus far on the day is eBay, trading down 5.4%. eBay is showing a gain of 2.6% looking at the year to date performance. VIDEO: Nasdaq 100 Movers: EBAY, ORLY The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Year to date, O'Reilly Automotive, registers a 6.1% gain. VIDEO: Nasdaq 100 Movers: EBAY, ORLY The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Thursday, shares of O'Reilly Automotive topped the list of the day's best performing components of the Nasdaq 100 index, trading up 12.1%. VIDEO: Nasdaq 100 Movers: EBAY, ORLY The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Thursday, shares of O'Reilly Automotive topped the list of the day's best performing components of the Nasdaq 100 index, trading up 12.1%. And the worst performing Nasdaq 100 component thus far on the day is eBay, trading down 5.4%. VIDEO: Nasdaq 100 Movers: EBAY, ORLY The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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7068.0
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2018-04-26 00:00:00 UTC
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American Airlines (AAL) Declines Despite Q1 Earnings Beat
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https://www.nasdaq.com/articles/american-airlines-aal-declines-despite-q1-earnings-beat-2018-04-26
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American Airlines GroupAAL reported first-quarter 2018 earnings per share (excluding 36 cents from non-recurring items) of 75 cents, edging past the Zacks Consensus Estimate of 74 cents. Earnings increased approximately 23% on a year-over-year basis.
How Was the Estimate Revision Trend?
Investors should note that the earnings estimate revisions for American Airlinesdepicted a rosy picture prior to the earnings release. The stock had seen the Zacks Consensus Estimate for fourth-quarter earnings being revised 29.8% upward over the last 30 days
Moreover, the carrier has an impressive earnings surprise history. Even before posting the earnings beat in the first-quarter, the company delivered positive surprises in each of the past four quarters. The average earnings beat was 3.8%.
American Airlines Group Inc. Price and EPS Surprise
American Airlines Group Inc. Price and EPS Surprise | American Airlines Group Inc. Quote
Revenues Lower Than Expected
American Airlines recorded revenues of $10,401 million, which fell short of the Zacks Consensus Estimate of $10, 411.9 million. However, it compared favorably with the year-ago number of $9,624 million.
Key Statistics: Operating cost per available seat mile excluding fuel and special items increased 2.8% on a year over year basis. Total revenue per available seat miles (TRASM) improved 3.5% in the reported quarter. Yield improved 1.5%.
During the quarter, the company returned $498 million to shareholders through dividends and buybacks. Furthermore, the carrier also declared a dividend of 10 cents per share. The dividend will be paid on May 22, to the shareholders on May 8. We are impressed by the company's efforts to reward shareholders through stock repurchases and dividend payments.
TRASM is expected to increase in the band of 1.5% to 3.5% in the second quarter of 2018. Pre-tax margin excluding special items is projected in the range of 7.5% to 9.5%.
Adjusted earnings per share in 2018 are now expected between $5.00 and $6.00 (previous guidance had hinted at earnings between $5.50 and $6.50). The Zacks Consensus Estimate for 2018 earnings is currently pegged at $5.74 per share. Higher fuel costs led to the view being trimmed. Consolidated jet fuel per gallon is projected in the band of $2.18 to $2.23 for the second quarter.
Zacks Rank: Currently, American Airlines carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Check back later for our full write up on this American Airlines earnings report later!
Stock Movement: The revenue miss and the lackluster 2018 earnings guidance disappointed investors. Consequently, shares of the company were down in pre-market trading at the time of writing.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines GroupAAL reported first-quarter 2018 earnings per share (excluding 36 cents from non-recurring items) of 75 cents, edging past the Zacks Consensus Estimate of 74 cents. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Even before posting the earnings beat in the first-quarter, the company delivered positive surprises in each of the past four quarters.
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American Airlines GroupAAL reported first-quarter 2018 earnings per share (excluding 36 cents from non-recurring items) of 75 cents, edging past the Zacks Consensus Estimate of 74 cents. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. Price and EPS Surprise American Airlines Group Inc. Price and EPS Surprise | American Airlines Group Inc. Quote Revenues Lower Than Expected American Airlines recorded revenues of $10,401 million, which fell short of the Zacks Consensus Estimate of $10, 411.9 million.
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American Airlines GroupAAL reported first-quarter 2018 earnings per share (excluding 36 cents from non-recurring items) of 75 cents, edging past the Zacks Consensus Estimate of 74 cents. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The stock had seen the Zacks Consensus Estimate for fourth-quarter earnings being revised 29.8% upward over the last 30 days Moreover, the carrier has an impressive earnings surprise history.
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American Airlines GroupAAL reported first-quarter 2018 earnings per share (excluding 36 cents from non-recurring items) of 75 cents, edging past the Zacks Consensus Estimate of 74 cents. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The stock had seen the Zacks Consensus Estimate for fourth-quarter earnings being revised 29.8% upward over the last 30 days Moreover, the carrier has an impressive earnings surprise history.
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7069.0
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2018-04-26 00:00:00 UTC
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American Airlines (AAL) Q1 Earnings Top Estimates, Up Y/Y
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https://www.nasdaq.com/articles/american-airlines-aal-q1-earnings-top-estimates-up-y-y-2018-04-26
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American Airlines Group Inc. 's AAL first-quarter 2018 earnings (excluding 36 cents from non-recurring items) of 75 cents per share surpassed the Zacks Consensus Estimate by a penny. Quarterly earnings increased approximately 23% on a year-over-year basis despite higher costs.
Revenues of $10,401 million fell short of the Zacks Consensus Estimate of $10,411.9 million. The top line, however, improved on a year-over-year basis. Strong demand for air travel led to the year over year improvement in the top line.
Total revenue per available seat miles (TRASM: a key measure of unit revenue) improved 3.5% to 15.80 cents in the reported quarter. Consolidated yield improved 1.5%. Passenger revenue per available seat miles (PRASM) improved 3%.
While traffic (measured by revenue passenger miles) was up 3.8%, capacity (measured by average seat miles) was up 2.3%. Consolidated load factor (percentage of seats filled by passengers) increased to 80.4% from 79.2% a year-ago as traffic growth outpaced capacity expansion in the first quarter of 2018.
Total operating expenses climbed 9.8% year over year to approximately $10 billion primarily due to the rise in fuel costs. Expenses pertaining to salaries and benefits were up 5.5%. Consolidated operating costs per available seat miles (CASM: excluding fuel and special items) increased 2.8%.
During the quarter under review, this Zacks Rank #3 (Hold) company returned $498 million to shareholders through dividends and buybacks. Furthermore, the carrier also declared a dividend of 10 cents per share. The dividend will be paid on May 22, to the shareholders on May 8.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
The company's board also cleared a new buyback program worth $2 billion. It will be completed by Dec 31, 2020. We are impressed by the company's efforts to reward shareholders through stock repurchases and dividend payments. Meanwhile, the carrier remains focused on introducing new aircraft and retiring old ones from its fleet.
American Airlines Group Inc. Price, Consensus and EPS Surprise
American Airlines Group Inc. Price, Consensus and EPS Surprise | American Airlines Group Inc. Quote
Outlook
TRASM is expected to increase in the band of 1.5% to 3.5% in the second quarter of 2018. Pre-tax margin excluding special items is projected in the range of 7.5% to 9.5% in the second quarter. Adjusted earnings per share in 2018 are now expected between $5.00 and $6.00 (previous guidance had hinted at earnings between $5.50 and $6.50). The Zacks Consensus Estimate for 2018 earnings is currently pegged at $5.74 per share. Higher fuel costs led to the view being trimmed. Consolidated jet fuel per gallon is projected in the band of $2.18 to $2.23 for the second quarter.
Consolidated CASM (excluding special items and fuel) is expected to increase 3.5% in the second quarter of 2018. The metric is also anticipated to increase approximately 2% in 2018. The metric is still expected to increase in the band of 1% to 2% in each of 2019 and 2020. Capacity (system) in 2018 is still projected to increase 2.5% year over year.
The revenue miss and the dull 2018 earnings guidance disappointed investors. Consequently, shares of the company were down in early trading.
Upcoming Releases
Investors interested in the Zacks Transportation industry are keenly awaiting first-quarter earnings reports from key players like Copa Holdings, S.A. CPA , C.H. Robinson Worldwide, Inc. CHRW and Expeditors International of Washington, Inc. EXPD , in the coming days. While C.H. Robinson Worldwide is scheduled to report on May 1, Expeditors and Copa Holdings are scheduled to do the same on May 8 and May 9, respectively.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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Copa Holdings, S.A. (CPA): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report
Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc. 's AAL first-quarter 2018 earnings (excluding 36 cents from non-recurring items) of 75 cents per share surpassed the Zacks Consensus Estimate by a penny. Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report C.H. Consolidated load factor (percentage of seats filled by passengers) increased to 80.4% from 79.2% a year-ago as traffic growth outpaced capacity expansion in the first quarter of 2018.
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Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report C.H. American Airlines Group Inc. 's AAL first-quarter 2018 earnings (excluding 36 cents from non-recurring items) of 75 cents per share surpassed the Zacks Consensus Estimate by a penny. American Airlines Group Inc. Price, Consensus and EPS Surprise American Airlines Group Inc. Price, Consensus and EPS Surprise | American Airlines Group Inc. Quote Outlook TRASM is expected to increase in the band of 1.5% to 3.5% in the second quarter of 2018.
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Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report C.H. American Airlines Group Inc. 's AAL first-quarter 2018 earnings (excluding 36 cents from non-recurring items) of 75 cents per share surpassed the Zacks Consensus Estimate by a penny. American Airlines Group Inc. Price, Consensus and EPS Surprise American Airlines Group Inc. Price, Consensus and EPS Surprise | American Airlines Group Inc. Quote Outlook TRASM is expected to increase in the band of 1.5% to 3.5% in the second quarter of 2018.
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American Airlines Group Inc. 's AAL first-quarter 2018 earnings (excluding 36 cents from non-recurring items) of 75 cents per share surpassed the Zacks Consensus Estimate by a penny. Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report C.H. Furthermore, the carrier also declared a dividend of 10 cents per share.
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7070.0
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2018-04-26 00:00:00 UTC
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Why American Airlines Stock Dropped 6% Today
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-stock-dropped-6-today-2018-04-26
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nan
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What happened
Shares of American Airlines Group (NASDAQ: AAL) closed 6.4% lower on Thursday after reporting earnings -- and that's the good news. The bad news is that, at one point, American Airlines stock was down more than 10%.
American Airlines reported profits per diluted share of $0.39 for its fiscal first quarter, down 42% from the year-ago quarter. This was despite the fact that sales grew 5.9% year over year. The results beat analyst estimates, yet the stock fell nonetheless.
So what
Why? Blame it on fuel costs -- and guidance. "Higher fuel prices led to a decline in year-over-year earnings," said CEO Doug Parker, citing a 24% increase in the cost of jet fuel. Worse, American Airlines expects fuel costs to remain high all year long.
Telling investors what to expect over the rest of this year, American shaved $0.50 off the top of its guidance for full-year earnings, saying it now expects per-share profits to range between $5 and $6. Taken at the midpoint, that's a bit below the $5.75 per share that Wall Street had been predicting.
Now what
That being said, fuel costs rise and fuel costs fall over time. It happens all the time, and fuel costs notwithstanding, Parker told investors he is still "excited about the future." American has "the youngest fleet in the industry among our large network peer competitors." This should mitigate maintenance costs and, because newer planes are generally more fuel efficient than older planes, should also blunt the effect of rising jet fuel costs.
My bigger worry about the stock -- two worries, actually -- is that acquiring its "youngest fleet in the industry" required American to take on a pretty heaping helping of debt -- about $19.5 billion net of cash on hand. Additionally, American Airlines hasn't been generating much in the way of free cash flow lately. It's actually free cash flow negative over the past 12 months.
At a share price of just 11.4 times trailing earnings, and with analysts still forecasting long-term earnings growth in the 13% range, American Airlines stock is arguably a bargain. But until it turns free cash flow positive again, I cannot recommend the stock.
10 stocks we like better than American Airlines Group
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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.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of American Airlines Group (NASDAQ: AAL) closed 6.4% lower on Thursday after reporting earnings -- and that's the good news. Worse, American Airlines expects fuel costs to remain high all year long. * 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!
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What happened Shares of American Airlines Group (NASDAQ: AAL) closed 6.4% lower on Thursday after reporting earnings -- and that's the good news. Worse, American Airlines expects fuel costs to remain high all year long. At a share price of just 11.4 times trailing earnings, and with analysts still forecasting long-term earnings growth in the 13% range, American Airlines stock is arguably a bargain.
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What happened Shares of American Airlines Group (NASDAQ: AAL) closed 6.4% lower on Thursday after reporting earnings -- and that's the good news. At a share price of just 11.4 times trailing earnings, and with analysts still forecasting long-term earnings growth in the 13% range, American Airlines stock is arguably a bargain. 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.
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What happened Shares of American Airlines Group (NASDAQ: AAL) closed 6.4% lower on Thursday after reporting earnings -- and that's the good news. Worse, American Airlines expects fuel costs to remain high all year long. * 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!
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7071.0
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2018-04-26 00:00:00 UTC
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Market Close Report: NASDAQ Composite index closes at 7,118.68 up 114.94 points
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AAL
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https://www.nasdaq.com/articles/market-close-report-nasdaq-composite-index-closes-711868-11494-points-2018-04-26
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Thursday's session closes with the NASDAQ Composite Index at 7,118.68. The total shares traded for the NASDAQ was over 2.25 billion.
Advancers stocks led declining by 1.61 to 1 ratio. There were 1839 advancers and 1144 decliners for the day. On the NASDAQ Stock Exchange 30 stocks reached a 52 week high and 25 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
The NASDAQ 100 index closed up 2.08% for the day; a total of 135.71 points. The current value is 6,649.65. American Airlines Group, Inc. ( AAL ) had the largest percent change down (-6.36%) while Alexion Pharmaceuticals, Inc. ( ALXN ) had the largest percent change gain rising 14.5%.
The Dow Jones index closed up .99% for the day; a total of 238.51 points. The current value is 24,322.34. Walt Disney Company (The) ( DIS ) had the largest percent change down (-1.3%) while Visa Inc. ( V ) had the largest percent change gain rising 4.84%.
NASDAQ Market Wrap
As of 4/26/2018 4:44:00 PM
BILLIONS OF 2.25 NASDAQ SHARES TRADED TODAY 30 STOCKS REACHED A 52 WEEK HIGH 25 THOSE REACHING LOWS TOTALEDAlexion Pharmaceuticals, Inc. [ALXN]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 14.5 ROSE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-6.36%) while Alexion Pharmaceuticals, Inc. ( ALXN ) had the largest percent change gain rising 14.5%. The Dow Jones index closed up .99% for the day; a total of 238.51 points. NASDAQ Market Wrap As of 4/26/2018 4:44:00 PM BILLIONS OF 2.25 NASDAQ SHARES TRADED TODAY 30 STOCKS REACHED A 52 WEEK HIGH 25 THOSE REACHING LOWS TOTALEDAlexion Pharmaceuticals, Inc. [ALXN]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 14.5 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-6.36%) while Alexion Pharmaceuticals, Inc. ( ALXN ) had the largest percent change gain rising 14.5%. On the NASDAQ Stock Exchange 30 stocks reached a 52 week high and 25 those reaching lows totaled. NASDAQ Market Wrap As of 4/26/2018 4:44:00 PM BILLIONS OF 2.25 NASDAQ SHARES TRADED TODAY 30 STOCKS REACHED A 52 WEEK HIGH 25 THOSE REACHING LOWS TOTALEDAlexion Pharmaceuticals, Inc. [ALXN]TOPS ADVANCERS LISTOF NASDAQ 100 INDEX % 14.5 ROSE The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-6.36%) while Alexion Pharmaceuticals, Inc. ( ALXN ) had the largest percent change gain rising 14.5%. On the NASDAQ Stock Exchange 30 stocks reached a 52 week high and 25 those reaching lows totaled. The most active, advancers, decliners, unusual volume and most active by dollar volume can be monitored intraday on the Most Active Stocks page.
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American Airlines Group, Inc. ( AAL ) had the largest percent change down (-6.36%) while Alexion Pharmaceuticals, Inc. ( ALXN ) had the largest percent change gain rising 14.5%. There were 1839 advancers and 1144 decliners for the day. The NASDAQ 100 index closed up 2.08% for the day; a total of 135.71 points.
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7072.0
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2018-04-26 00:00:00 UTC
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Consumer Sector Update for 04/26/2018: CMG,PENN,DNKN,AAL
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AAL
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https://www.nasdaq.com/articles/consumer-sector-update-04262018-cmgpenndnknaal-2018-04-26
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nan
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Top Consumer Stocks
WMT +1.05%
MCD +2.11%
DIS -1.06%
CVS +1.82%
KO +1.19%
Consumer stocks were broadly higher, with shares of consumer staples companies in the S&P 500 rising more than 0.8% this afternoon while shares of consumer discretionary firms in the S&P 500 were climbing over 1.6%.
Among consumer stocks moving on news:
+ Chipotle Mexican Grill ( CMG ) skyrocketed on Thursday, racing over 27%, after the once-enbattled restaurant chain reported a 33% increase in net income and a 7.4% rise in net sales compared with year-ago levels, prompting analysts at Barclays to raise its price target for the Chipotle stock by $15 to $320 a share. New CEO Brian Niccol also attracted attention with some of his post-earnings comments, including remarks contending the company has been "invisible" and was failing to market its brand as well as it could, later saying that having "really craveable food" along with improved marketing creates opportunities. The Barclays analysts said Niccol's enthusiasm was "contagious."
In other sector news:
+ Penn National Gaming ( PENN ) surged on Thursday, previously jumping out to a nearly 27% gain earlier in the session, after reporting better-than-expected Q1 financial results and raising its FY18 forecast. The casino and race tracks operator earned $0.48 per share compared with $0.06 per share during the year-ago quarter and topped the Capital IQ consensus by $0.09 per share. It generated $816.1 million in revenue, up from $776.2 million last year and exceeding the $805.7 million analyst mean. The company also increased its outlook for FY18 EPS to a new range of $1.62 from $1.53 per share and boosted its FY18 revenue guidance to $3.24 billion from $3.23 billion. Analysts, on average, are expecting Penn National to earn $1.54 per share on $3.22 billion in revenue.
- Dunkin' Brands ( DNKN ) dropped over 2% on Thursday after the coffee shop chain missed Wall Street expectations with $301.3 million in net sales during the first three months of 2018, improving on $296.4 million in year-ago sales but still trailing the Capital IQ consensus by $2.4 million. It also upstaged better-than-expected adjusted Q1 net income and revised FY18 earnings guidance exceeding analyst estimates. The company continues to expect revenue growth this year in the low-to-mid single percentage digits above its $860.5 million in FY17 sales.
- American Airlines ( AAL ) fell Thursday after the carrier beat analyst estimates with its Q1 earnings but also trimmed its FY18 outlook, citing rising fuel costs. Excluding one-time items, the company earned $0.75 per share, down from $0.82 per share during the year-ago period but still topping the Capital IQ consensus by $0.04 per share. Revenue grew to $10.40 billion from $9.82 billion last year and roughly matching the $10.41 billion Street view. It also sees adjusted FY18 net income in a range of $5.00 to $6.00 per share, down $0.50 from its prior guidance and straddling the Street consensus expecting $5.76 per share.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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- American Airlines ( AAL ) fell Thursday after the carrier beat analyst estimates with its Q1 earnings but also trimmed its FY18 outlook, citing rising fuel costs. Among consumer stocks moving on news: + Chipotle Mexican Grill ( CMG ) skyrocketed on Thursday, racing over 27%, after the once-enbattled restaurant chain reported a 33% increase in net income and a 7.4% rise in net sales compared with year-ago levels, prompting analysts at Barclays to raise its price target for the Chipotle stock by $15 to $320 a share. The company continues to expect revenue growth this year in the low-to-mid single percentage digits above its $860.5 million in FY17 sales.
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- American Airlines ( AAL ) fell Thursday after the carrier beat analyst estimates with its Q1 earnings but also trimmed its FY18 outlook, citing rising fuel costs. Among consumer stocks moving on news: + Chipotle Mexican Grill ( CMG ) skyrocketed on Thursday, racing over 27%, after the once-enbattled restaurant chain reported a 33% increase in net income and a 7.4% rise in net sales compared with year-ago levels, prompting analysts at Barclays to raise its price target for the Chipotle stock by $15 to $320 a share. The casino and race tracks operator earned $0.48 per share compared with $0.06 per share during the year-ago quarter and topped the Capital IQ consensus by $0.09 per share.
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- American Airlines ( AAL ) fell Thursday after the carrier beat analyst estimates with its Q1 earnings but also trimmed its FY18 outlook, citing rising fuel costs. Among consumer stocks moving on news: + Chipotle Mexican Grill ( CMG ) skyrocketed on Thursday, racing over 27%, after the once-enbattled restaurant chain reported a 33% increase in net income and a 7.4% rise in net sales compared with year-ago levels, prompting analysts at Barclays to raise its price target for the Chipotle stock by $15 to $320 a share. The casino and race tracks operator earned $0.48 per share compared with $0.06 per share during the year-ago quarter and topped the Capital IQ consensus by $0.09 per share.
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- American Airlines ( AAL ) fell Thursday after the carrier beat analyst estimates with its Q1 earnings but also trimmed its FY18 outlook, citing rising fuel costs. Among consumer stocks moving on news: + Chipotle Mexican Grill ( CMG ) skyrocketed on Thursday, racing over 27%, after the once-enbattled restaurant chain reported a 33% increase in net income and a 7.4% rise in net sales compared with year-ago levels, prompting analysts at Barclays to raise its price target for the Chipotle stock by $15 to $320 a share. Analysts, on average, are expecting Penn National to earn $1.54 per share on $3.22 billion in revenue.
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7073.0
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2018-04-26 00:00:00 UTC
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Consumer Sector Update for 04/26/2018: PENN,AAL
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AAL
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https://www.nasdaq.com/articles/consumer-sector-update-04262018-pennaal-2018-04-26
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Top Consumer Stocks
WMT +1.01%
MCD +2.14%
DIS -1.25%
CVS +1.14%
KO +1.56%
Consumer stocks were broadly higher, with shares of consumer staples companies in the S&P 500 rising more than 0.4% Thursday afternoon while shares of consumer discretionary firms in the S&P 500 were climbing over 1.0%.
Among consumer stocks moving on news:
+ Penn National Gaming ( PENN ) was surging Thursday, continuing to trade over 12% higher after jumping out to a nearly 27% gain earlier in the session, after reporting better-than-expected Q1 financial results and raising its FY18 forecast. The casino and race tracks operator earned $0.48 per share during the three months ended March 31 compared with a $0.06 per share profit in the year-ago quarter and topping the Capital IQ consensus by $0.09 per share. It also generated $816.1 million in revenue, up from $776.2 million last year and exceeding the $805.7 million analyst mean. Looking forward, the company increased its outlook for FY18 EPS to a new range of $1.62 from $1.53 per share and boosted its FY18 revenue guidance to $3.24 billion from $3.23 billion. Analysts, on average, are expecting Penn National to earn $1.54 per share on $3.22 billion in revenue.
In other sector news:
- American Airlines ( AAL ) fell Thursday after the carrier beat analyst estimates with its Q1 earnings but also trimmed its FY18 outlook, citing rising fuel costs. Excluding one-time items, the company earned $0.75 per share, down from $0.82 per share during the year-ago period but still topping the Capital IQ consensus by $0.04 per share. Revenue grew to $10.40 billion from $9.82 billion last year and roughly matching the $10.41 billion Street view. It also sees adjusted FY18 net income in a range of $5.00 to $6.00 per share, down $0.50 from its prior guidance and straddling the Street consensus expecting $5.76 per share.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In other sector news: - American Airlines ( AAL ) fell Thursday after the carrier beat analyst estimates with its Q1 earnings but also trimmed its FY18 outlook, citing rising fuel costs. Among consumer stocks moving on news: + Penn National Gaming ( PENN ) was surging Thursday, continuing to trade over 12% higher after jumping out to a nearly 27% gain earlier in the session, after reporting better-than-expected Q1 financial results and raising its FY18 forecast. Analysts, on average, are expecting Penn National to earn $1.54 per share on $3.22 billion in revenue.
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In other sector news: - American Airlines ( AAL ) fell Thursday after the carrier beat analyst estimates with its Q1 earnings but also trimmed its FY18 outlook, citing rising fuel costs. Among consumer stocks moving on news: + Penn National Gaming ( PENN ) was surging Thursday, continuing to trade over 12% higher after jumping out to a nearly 27% gain earlier in the session, after reporting better-than-expected Q1 financial results and raising its FY18 forecast. Analysts, on average, are expecting Penn National to earn $1.54 per share on $3.22 billion in revenue.
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In other sector news: - American Airlines ( AAL ) fell Thursday after the carrier beat analyst estimates with its Q1 earnings but also trimmed its FY18 outlook, citing rising fuel costs. Consumer stocks were broadly higher, with shares of consumer staples companies in the S&P 500 rising more than 0.4% Thursday afternoon while shares of consumer discretionary firms in the S&P 500 were climbing over 1.0%. The casino and race tracks operator earned $0.48 per share during the three months ended March 31 compared with a $0.06 per share profit in the year-ago quarter and topping the Capital IQ consensus by $0.09 per share.
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In other sector news: - American Airlines ( AAL ) fell Thursday after the carrier beat analyst estimates with its Q1 earnings but also trimmed its FY18 outlook, citing rising fuel costs. Analysts, on average, are expecting Penn National to earn $1.54 per share on $3.22 billion in revenue. Excluding one-time items, the company earned $0.75 per share, down from $0.82 per share during the year-ago period but still topping the Capital IQ consensus by $0.04 per share.
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7074.0
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2018-04-26 00:00:00 UTC
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4 Earnings Losers from Thursday’s Trading
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AAL
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https://www.nasdaq.com/articles/4-earnings-losers-thursdays-trading-2018-04-26
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
U.S. equities are rallying on Thursday, pushing the S&P 500 once more away from its 200-day moving average thanks to the ongoing flow of positive earnings results.
Facebook, Inc. (NASDAQ: FB ) is in one of the biggest earnings winners today, up 9.4% to hit its best level in six weeks thanks to better-than-expected earnings and double-digit user growth. There were solid results form Visa Inc (NYSE: V ) and Advanced Micro Devices, Inc. (NASDAQ: AMD ) as well, pushing the stocks up 5.1% and 11.6% respectively.
10 Cutting-Edge Stocks for Your Portfolio
But not all areas of the market are participating in this earnings season rally. Here are four stocks that are Thursday's earnings losers:
Thursday's Earnings Loser #1: AT&T (T)
AT&T Inc. (NYSE: T ) did not have a good day. Following disappointing earnings, T shares are dropping hard, down 5.5% in mid-day trading returning to lows not seen since November.
Earnings of 85 cents per share missed estimates by three cents on a 3.4% drop in revenues. The top line was pressured by a decline in wireline services, domestic video and wireless service. Analysts at Hilliard Lyons downgraded T shares to neutral as a result.
The company will next report results on July 25 after the bell.
Thursday's Earnings Loser #2: American Airlines (AAL)
American Airlines Group Inc (NASDAQ: AAL ) shares are down 4.8% as I write this, recovering from an even steeper loss earlier in the session, after issuing disappointing guidance.
Earnings of 75 cents per share beat estimates by four cents on a 5.9% rise in revenues. Revenue per seat mile increased for the sixth consecutive quarter.
7 Blue Chips at Risk of a Prolonged Slump
But looking ahead to the full fiscal year, the company lowered its earnings-per-share estimate to $5.00 to $6.00 from $5.50 to $6.50 previously. Analysts were looking for $5.76.
Thursday's Earnings Losers #3: Raytheon (RTN)
Raytheon Company (NYSE: RTN ) is down 1.4% in trading testing lows not seen since March, falling further below their 50-day moving average.
The company reported earnings of $2.20 per share, nine cents ahead of estimates, on a 4.4% rise in revenues. Forward guidance was good too.
But revenues were only in-line with estimates, which seems to have disappointed the whisper expectations on the Street.
Thursday's Earnings Losers #4: Altria Group (MO)
Altria Group Inc (NYSE: MO ) was also down after earnings, despite meeting estimates.
MO shares are down 2.4% in mid-day trading, falling back to lows not seen since early 2016. This caps a decline of more than 28% from the highs set in the summer of 2017.
The company reported earnings of 95 cents per share, four cents ahead of estimates on a 1.8% rise in revenues. Guidance was reaffirmed and revenues were in-line with estimates, both of which disappointed investors.
5 Emerging Markets ETFs to Buy Now
On its postearnings call the company wondered if the recent rise in gas prices dinged sales.
Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
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The post 4 Earnings Losers from Thursday's Trading 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Thursday's Earnings Loser #2: American Airlines (AAL) American Airlines Group Inc (NASDAQ: AAL ) shares are down 4.8% as I write this, recovering from an even steeper loss earlier in the session, after issuing disappointing guidance. There were solid results form Visa Inc (NYSE: V ) and Advanced Micro Devices, Inc. (NASDAQ: AMD ) as well, pushing the stocks up 5.1% and 11.6% respectively. 7 Blue Chips at Risk of a Prolonged Slump But looking ahead to the full fiscal year, the company lowered its earnings-per-share estimate to $5.00 to $6.00 from $5.50 to $6.50 previously.
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Thursday's Earnings Loser #2: American Airlines (AAL) American Airlines Group Inc (NASDAQ: AAL ) shares are down 4.8% as I write this, recovering from an even steeper loss earlier in the session, after issuing disappointing guidance. Thursday's Earnings Losers #3: Raytheon (RTN) Raytheon Company (NYSE: RTN ) is down 1.4% in trading testing lows not seen since March, falling further below their 50-day moving average. Thursday's Earnings Losers #4: Altria Group (MO) Altria Group Inc (NYSE: MO ) was also down after earnings, despite meeting estimates.
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Thursday's Earnings Loser #2: American Airlines (AAL) American Airlines Group Inc (NASDAQ: AAL ) shares are down 4.8% as I write this, recovering from an even steeper loss earlier in the session, after issuing disappointing guidance. Here are four stocks that are Thursday's earnings losers: Thursday's Earnings Loser #1: AT&T (T) AT&T Inc. (NYSE: T ) did not have a good day. The company reported earnings of $2.20 per share, nine cents ahead of estimates, on a 4.4% rise in revenues.
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Thursday's Earnings Loser #2: American Airlines (AAL) American Airlines Group Inc (NASDAQ: AAL ) shares are down 4.8% as I write this, recovering from an even steeper loss earlier in the session, after issuing disappointing guidance. Here are four stocks that are Thursday's earnings losers: Thursday's Earnings Loser #1: AT&T (T) AT&T Inc. (NYSE: T ) did not have a good day. The company reported earnings of $2.20 per share, nine cents ahead of estimates, on a 4.4% rise in revenues.
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7075.0
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2018-04-26 00:00:00 UTC
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Thursday Sector Laggards: Industrial, Consumer Products
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AAL
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https://www.nasdaq.com/articles/thursday-sector-laggards-industrial-consumer-products-2018-04-26
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The worst performing sector as of midday Thursday is the Industrial sector, showing a 0.2% loss. Within that group, Nielsen Holdings PLC (Symbol: NLSN) and American Airlines Group Inc (Symbol: AAL) are two of the day's laggards, showing a loss of 6.6% and 5.0%, respectively. Among industrial ETFs , one ETF following the sector is the Industrial Select Sector SPDR ETF (Symbol: XLI), which is down 0.1% on the day, and down 2.44% year-to-date. Nielsen Holdings PLC, meanwhile, is down 10.93% year-to-date, and American Airlines Group Inc, is down 17.15% year-to-date. Combined, NLSN and AAL make up approximately 1.2% of the underlying holdings of XLI.
The next worst performing sector is the Consumer Products sector, higher by 0.2%. Among large Consumer Products stocks, LKQ Corp (Symbol: LKQ) and Royal Caribbean Cruises Ltd (Symbol: RCL) are the most notable, showing a loss of 17.7% and 3.8%, respectively. One ETF closely tracking Consumer Products stocks is the iShares U.S. Consumer Goods ETF ( IYK ), which is up 0.8% in midday trading, and down 9.13% on a year-to-date basis. LKQ Corp, meanwhile, is down 23.97% year-to-date, and Royal Caribbean Cruises Ltd, is down 3.92% year-to-date.
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 Thursday. As you can see, eight sectors are up on the day, while one sector is down.
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Combined, NLSN and AAL make up approximately 1.2% of the underlying holdings of XLI. Within that group, Nielsen Holdings PLC (Symbol: NLSN) and American Airlines Group Inc (Symbol: AAL) are two of the day's laggards, showing a loss of 6.6% and 5.0%, respectively. Among large Consumer Products stocks, LKQ Corp (Symbol: LKQ) and Royal Caribbean Cruises Ltd (Symbol: RCL) are the most notable, showing a loss of 17.7% and 3.8%, respectively.
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Within that group, Nielsen Holdings PLC (Symbol: NLSN) and American Airlines Group Inc (Symbol: AAL) are two of the day's laggards, showing a loss of 6.6% and 5.0%, respectively. Combined, NLSN and AAL make up approximately 1.2% of the underlying holdings of XLI. The worst performing sector as of midday Thursday is the Industrial sector, showing a 0.2% loss.
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Within that group, Nielsen Holdings PLC (Symbol: NLSN) and American Airlines Group Inc (Symbol: AAL) are two of the day's laggards, showing a loss of 6.6% and 5.0%, respectively. Combined, NLSN and AAL make up approximately 1.2% of the underlying holdings of XLI. Among industrial ETFs , one ETF following the sector is the Industrial Select Sector SPDR ETF (Symbol: XLI), which is down 0.1% on the day, and down 2.44% year-to-date.
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Within that group, Nielsen Holdings PLC (Symbol: NLSN) and American Airlines Group Inc (Symbol: AAL) are two of the day's laggards, showing a loss of 6.6% and 5.0%, respectively. Combined, NLSN and AAL make up approximately 1.2% of the underlying holdings of XLI. The worst performing sector as of midday Thursday is the Industrial sector, showing a 0.2% loss.
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7076.0
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2018-04-25 00:00:00 UTC
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Norfolk Southern (NSC) Surpasses on Q1 Earnings & Revenues
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AAL
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https://www.nasdaq.com/articles/norfolk-southern-nsc-surpasses-on-q1-earnings-revenues-2018-04-25
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Norfolk Southern CorporationNSC reported first-quarter 2018 earnings of $1.93 per share, surpassing the Zacks Consensus Estimate of $1.77. The bottom line also improved 30% on a year-over-year basis. Results were aided by an impressive performance at the.
Railway operating revenues in the quarter under review came in at $2,717 million, above the Zacks Consensus Estimate of $2,681.8 million. The top line also rose 5.5% on a year-over-year basis. Overall, volumes expanded 3% on the back of a solid performance at the intermodal segment.
Income from railway operations climbed 10% year over year to $835 million. Operating expenses increased 4% year over year to $1.9 billion. Railway operating expenses rose due to higher fuel prices as well as costs related to overall lower network velocity.
Norfolk Southern's operating ratio (operating expenses as a percentage of revenues) in the first quarter of 2018 came in at 69.3% compared with 70% in the first quarter of 2017.
Norfolk Southern Corporation Price, Consensus and EPS Surprise
Norfolk Southern Corporation Price, Consensus and EPS Surprise | Norfolk Southern Corporation Quote
Segmental Revenues
On a year-over-year basis, coal revenues increased 3.3% to $434 million.
Merchandise revenues inched up 1.3% year over year to $1,605 million.
Intermodal revenues rose 18.7% year over year to $678 million.
Liquidity
This Zacks Rank #3 (Hold) exited the first quarter with cash and cash equivalents of $1,072 million compared with $690 million at the end of 2017. The company had long-term debt of $9,637 million compared with $9,136 million as of Dec 31, 2017. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
With the company having delivered a sound financial performance in the first quarter, it keeps its optimism alive on its prospects in 2018. It has also increased its expected annual share repurchases to $1.5 billion.
Dividend
Norfolk Southern's board of directors approved a quarterly dividend of 72 cents per share (annualized $2.88) payable Jun 11 to shareholders of record, as of May 4. The company boasts an excellent record of dividend disbursements. It has paid dividends for the straight 143 quarters since its inception in 1982.
Upcoming Releases
Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players like American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Union Pacific Corporation UNP , all scheduled to release respective financial numbers on Apr 26.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Union Pacific Corporation (UNP): Free Stock Analysis Report
Norfolk Southern Corporation (NSC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Upcoming Releases Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players like American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Union Pacific Corporation UNP , all scheduled to release respective financial numbers on Apr 26. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Norfolk Southern CorporationNSC reported first-quarter 2018 earnings of $1.93 per share, surpassing the Zacks Consensus Estimate of $1.77.
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Upcoming Releases Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players like American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Union Pacific Corporation UNP , all scheduled to release respective financial numbers on Apr 26. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Norfolk Southern Corporation Price, Consensus and EPS Surprise Norfolk Southern Corporation Price, Consensus and EPS Surprise | Norfolk Southern Corporation Quote Segmental Revenues On a year-over-year basis, coal revenues increased 3.3% to $434 million.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Upcoming Releases Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players like American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Union Pacific Corporation UNP , all scheduled to release respective financial numbers on Apr 26. Railway operating revenues in the quarter under review came in at $2,717 million, above the Zacks Consensus Estimate of $2,681.8 million.
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Upcoming Releases Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players like American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Union Pacific Corporation UNP , all scheduled to release respective financial numbers on Apr 26. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Railway operating revenues in the quarter under review came in at $2,717 million, above the Zacks Consensus Estimate of $2,681.8 million.
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7077.0
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2018-04-25 00:00:00 UTC
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Delta Air Lines, Inc. Stock Looks Like a Compelling Buy
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-inc-stock-looks-compelling-buy-2018-04-25
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
When it comes to Delta Air Lines, Inc. (NYSE: DAL ), there are two key questions. The first is whether any airline stock, not just DAL stock, is worth investing in. This is an industry, after all, that's struggled with fare wars and bankruptcies - including Delta's own Chapter 11 filing in 2005. The second is whether Delta stock is the best pick in the space, as opposed to rivals like Southwest Airlines Co (NYSE: LUV ) and United Continental Holdings Inc (NYSE: UAL ).
At the moment, the answer to both questions appears to be "yes." There are concerns in the airline industry, among them rising fuel prices and the risk of the broader economy being near a cyclical top. And there is a case to be made for peers, including LUV and international operators like Ryanair Holdings plc (ADR) (NASDAQ: RYAAY ) and China Eastern Airlines Corp. Ltd. (ADR) (NYSE: CEA ).
But Delta stock looks awfully cheap - and it does look like the industry finally has got its act together. With travel demand rising steadily, and the near-term outlook strong, there's a solid case for buying DAL stock at these levels.
10 Stocks You Need to Banish Right Now
Bear Case for DAL Stock
As the old saw goes, "focus on the downside and the upside will take care of itself." And with DAL, as with any airline stock, it's worth keeping in mind that the downside could be substantial.
After all, this is an industry that has been a graveyard for shareholder value. Delta, United, and American Airlines Group Inc (NASDAQ: AAL ) all have gone bankrupt this century. Online travel agencies like Booking Holdings Inc (NASDAQ: BKNG ) and Expedia Group Inc (NASDAQ: EXPE ) have led consumers to focus almost solely on price - and made that pricing public and easy to compare. Frequent-flyer programs aside, there's little in the way of a "moat" or competitive advantage among the major airlines.
No less than Warren Buffett famously said that "if a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down." Over time, airlines have tried to fight over revenue - instead of focusing on profits. And so while DAL stock has risen 531% over the past decade, and 265% over the past five years, the obvious risk is that it will all come to an end as soon as the industry loses its discipline.
So far, the industry has been sensible when it comes to capacity. But the obvious question is what happens when the economy turns. Delta itself bought 100 jets from Airbus Grp/ADR (OTCMKTS: EADSY ) in December. Those jets will be delivered in 2020. But if Delta has that additional capacity, and the economy has turned south, will the company succumb to the temptation to lower prices to attract business and leisure travelers? And if competitors follow suit, will the hard lessons of the past century of commercial airline flight be once again forgotten?
Bull Case for DAL Stock
But after the past few years, it does seem as if the airline industry finally has learned its lesson. Capacity is rising, admittedly. Delta itself is projecting a 3-4% increase in 2018.
That's a manageable level, however. It's enough to keep pricing discipline in place. Indeed, it's enough to get Buffett himself to buy airline stocks - including DAL.
And there are long-term tailwinds (no pun intended) for the industry. People worldwide are moving further and more often . Millennials prioritize experiences over "stuff ." Economic cyclicality aside, the long-term trend for travel demand seems to be moving in the right direction for airlines.
And yet, Delta stock isn't pricing in any growth. In fact, it's priced as if it's near a cyclical peak. DAL trades at 8.2x its 2018 EPS guidance. That's a multiple that suggests profits will decline over time. In addition, it's one of the cheapest valuations in the industry. UAL trades at about 9x 2018 consensus. LUV is at 11x. Only AAL is in the same range - and it has a much more leveraged balance sheet.
It's not hard to see DAL moving to at least a double-digit EPS multiple. Indeed, the average analyst target price suggests about an 11x multiple, to a price of $73 - some 32% upside. That's one of the biggest gaps in the S&P 500, and an indicator of the divide between investor sentiment and the fundamental value of Delta stock.
8 Long-Term Uptrend Stocks to Buy
Should the gap narrow, it seems like that DAL will see solid upside. Admittedly, that requires the economy, and the industry, to cooperate. At this point, that seems a likely outcome - and so does a move higher in Delta stock.
As of this writing, Vince Martin has no positions in any securities mentioned.
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The post Delta Air Lines, Inc. Stock Looks Like a Compelling Buy appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Delta, United, and American Airlines Group Inc (NASDAQ: AAL ) all have gone bankrupt this century. Only AAL is in the same range - and it has a much more leveraged balance sheet. With travel demand rising steadily, and the near-term outlook strong, there's a solid case for buying DAL stock at these levels.
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Delta, United, and American Airlines Group Inc (NASDAQ: AAL ) all have gone bankrupt this century. Only AAL is in the same range - and it has a much more leveraged balance sheet. InvestorPlace - Stock Market News, Stock Advice & Trading Tips When it comes to Delta Air Lines, Inc. (NYSE: DAL ), there are two key questions.
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Delta, United, and American Airlines Group Inc (NASDAQ: AAL ) all have gone bankrupt this century. Only AAL is in the same range - and it has a much more leveraged balance sheet. InvestorPlace - Stock Market News, Stock Advice & Trading Tips When it comes to Delta Air Lines, Inc. (NYSE: DAL ), there are two key questions.
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Delta, United, and American Airlines Group Inc (NASDAQ: AAL ) all have gone bankrupt this century. Only AAL is in the same range - and it has a much more leveraged balance sheet. So far, the industry has been sensible when it comes to capacity.
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7078.0
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2018-04-25 00:00:00 UTC
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Ryder (R) Q1 Earnings & Revenues Surpass, 2018 View Bullish
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AAL
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https://www.nasdaq.com/articles/ryder-r-q1-earnings-revenues-surpass-2018-view-bullish-2018-04-25
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nan
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Ryder System, Inc .'s R first-quarter 2018 earnings (excluding 28 cents from non-recurring items) of 91 cents per share beat the Zacks Consensus Estimate of 88 cents. Moreover, the bottom line climbed substantially on a year-over-year basis.
Ryder reported total revenues of $1,903.5 million, surpassing the Zacks Consensus Estimate of $1,889 million. The top line also increased on a year-over-year basis with growth witnessed across all segments.
Segment Results
Fleet Management Solutions (FMS): Total revenues were $1.24 billion, up 10% year over year. Operating revenues (excluding fuel) came in at $1.04 billion, up 8% year over year. Segmental results were aided by an increase in commercial rental and ChoiceLease revenues.
Dedicated Transportation Solutions (DTS): Total revenues came in at $299 million, up 12% from the year-ago quarter. Operating revenues (excluding fuel and subcontracted transportation) rose 4% year over year to $201 million.
Supply Chain Solutions (SCS): Total revenues in the quarter under review were $495 million, up 10% year over year. Operating revenues (excluding fuel and subcontracted transportation) improved 6% year over year to $383 million.
Ryder System, Inc. Price, Consensus and EPS Surprise
Ryder System, Inc. Price, Consensus and EPS Surprise | Ryder System, Inc. Quote
Liquidity
This Zacks Rank#3 (Hold) company exited the first quarter with cash and cash equivalents of $73.9 million compared with $78.3 million at the end of 2017. The company had total debt of $5,677.7 million compared with $5,409.7 million at 2017-end. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Q2 Outlook
The company expects adjusted earnings per share of $1.20-$1.30 in the second quarter of 2018 compared with $1 reported in the year-ago period. The Zacks Consensus Estimate for the metric stands at $1.33.
Upbeat 2018 Outlook
For 2018, Ryder anticipates adjusted earnings per share of $5.45-$5.70. Prior forecast had estimated the metric between $5.40 and $5.70. This upside has been driven by an earnings improvement in the quarter as well as the impressive contractual sales performance in all business segments. The Zacks Consensus Estimate for full-year earnings stands at $5.59 per share.
Further, the company expects ChoiceLease fleet growth of 7,500 vehicles for the full year, an increase of 1,000 units from the past projection. Moreover, owing to robust pipeline sales, the company estimates a further upside in the estimate. In fact, with the majority of fleet growth likely to occur later this year (on account of longer manufacturer lead times), the company is well-positioned for earnings and revenue growth next year as well.
This apart, Ryder's recent acquisition of MXD Group to boost its e-commerce portfolio is a huge positive for the company. The transaction is projected to be partly accretive to its earnings this year. However, the company hopes to witness earnings growth from this integration in the coming years.
Additionally, the company expects to achieve double-digit revenue growth at both its DTS and SCS segments in the latter half of the year. Also, it assumes a continued volume expansion pertaining to the sale of used vehicles. However, the used vehicle pricing challenge might persist for the remainder of the year.
Upcoming Releases
Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players like American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Union Pacific Corporation UNP , all scheduled to release the respective earnings numbers on Apr 26.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Ryder System, Inc. (R): Free Stock Analysis Report
Union Pacific Corporation (UNP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Upcoming Releases Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players like American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Union Pacific Corporation UNP , all scheduled to release the respective earnings numbers on Apr 26. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Ryder System, Inc. (R): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report To read this article on Zacks.com click here. Further, the company expects ChoiceLease fleet growth of 7,500 vehicles for the full year, an increase of 1,000 units from the past projection.
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Upcoming Releases Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players like American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Union Pacific Corporation UNP , all scheduled to release the respective earnings numbers on Apr 26. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Ryder System, Inc. (R): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report To read this article on Zacks.com click here. Ryder System, Inc. Price, Consensus and EPS Surprise Ryder System, Inc. Price, Consensus and EPS Surprise | Ryder System, Inc. Quote Liquidity This Zacks Rank#3 (Hold) company exited the first quarter with cash and cash equivalents of $73.9 million compared with $78.3 million at the end of 2017.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Ryder System, Inc. (R): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report To read this article on Zacks.com click here. Upcoming Releases Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players like American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Union Pacific Corporation UNP , all scheduled to release the respective earnings numbers on Apr 26. Ryder System, Inc. Price, Consensus and EPS Surprise Ryder System, Inc. Price, Consensus and EPS Surprise | Ryder System, Inc. Quote Liquidity This Zacks Rank#3 (Hold) company exited the first quarter with cash and cash equivalents of $73.9 million compared with $78.3 million at the end of 2017.
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Upcoming Releases Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players like American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Union Pacific Corporation UNP , all scheduled to release the respective earnings numbers on Apr 26. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Ryder System, Inc. (R): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report To read this article on Zacks.com click here. Ryder reported total revenues of $1,903.5 million, surpassing the Zacks Consensus Estimate of $1,889 million.
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7079.0
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2018-04-25 00:00:00 UTC
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Notable Wednesday Option Activity: LMT, ORLY, AAL
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AAL
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https://www.nasdaq.com/articles/notable-wednesday-option-activity-lmt-orly-aal-2018-04-25
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Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Lockheed Martin Corp (Symbol: LMT), where a total volume of 15,252 contracts has been traded thus far today, a contract volume which is representative of approximately 1.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 113.4% of LMT's average daily trading volume over the past month, of 1.3 million shares. Particularly high volume was seen for the $370 strike call option expiring January 18, 2019 , with 710 contracts trading so far today, representing approximately 71,000 underlying shares of LMT. Below is a chart showing LMT's trailing twelve month trading history, with the $370 strike highlighted in orange:
O'Reilly Automotive, Inc. (Symbol: ORLY) saw options trading volume of 7,582 contracts, representing approximately 758,200 underlying shares or approximately 89.8% of ORLY's average daily trading volume over the past month, of 843,980 shares. Particularly high volume was seen for the $220 strike put option expiring May 18, 2018 , with 1,990 contracts trading so far today, representing approximately 199,000 underlying shares of ORLY. Below is a chart showing ORLY's trailing twelve month trading history, with the $220 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 37,906 contracts thus far today. That number of contracts represents approximately 3.8 million underlying shares, working out to a sizeable 69.5% of AAL's average daily trading volume over the past month, of 5.5 million shares. Particularly high volume was seen for the $50 strike call option expiring May 18, 2018 , with 5,055 contracts trading so far today, representing approximately 505,500 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $50 strike highlighted in orange:
For the various different available expirations for LMT options , ORLY 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $50 strike call option expiring May 18, 2018 , with 5,055 contracts trading so far today, representing approximately 505,500 underlying shares of AAL. Below is a chart showing ORLY's trailing twelve month trading history, with the $220 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 37,906 contracts thus far today. That number of contracts represents approximately 3.8 million underlying shares, working out to a sizeable 69.5% of AAL's average daily trading volume over the past month, of 5.5 million shares.
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Below is a chart showing ORLY's trailing twelve month trading history, with the $220 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 37,906 contracts thus far today. That number of contracts represents approximately 3.8 million underlying shares, working out to a sizeable 69.5% of AAL's average daily trading volume over the past month, of 5.5 million shares. Particularly high volume was seen for the $50 strike call option expiring May 18, 2018 , with 5,055 contracts trading so far today, representing approximately 505,500 underlying shares of AAL.
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Particularly high volume was seen for the $50 strike call option expiring May 18, 2018 , with 5,055 contracts trading so far today, representing approximately 505,500 underlying shares of AAL. Below is a chart showing ORLY's trailing twelve month trading history, with the $220 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 37,906 contracts thus far today. That number of contracts represents approximately 3.8 million underlying shares, working out to a sizeable 69.5% of AAL's average daily trading volume over the past month, of 5.5 million shares.
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Particularly high volume was seen for the $50 strike call option expiring May 18, 2018 , with 5,055 contracts trading so far today, representing approximately 505,500 underlying shares of AAL. Below is a chart showing ORLY's trailing twelve month trading history, with the $220 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 37,906 contracts thus far today. That number of contracts represents approximately 3.8 million underlying shares, working out to a sizeable 69.5% of AAL's average daily trading volume over the past month, of 5.5 million shares.
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7080.0
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2018-04-24 00:00:00 UTC
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What to Expect From American Airlines (AAL) in Q1 Earnings?
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AAL
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https://www.nasdaq.com/articles/what-to-expect-from-american-airlines-aal-in-q1-earnings-2018-04-24
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nan
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nan
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American Airlines Group Inc.AAL is scheduled to unveil first-quarter 2018 results on Apr 26, before the opening bell.
In the fourth quarter of 2017, the company delivered a positive earnings surprise of 3.3% backed by higher revenues. Furthermore, this airline behemoth has an impressive earnings history, having outshined the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 3.8%.
Let's see how things are shaping up for this Fort Worth, TX-based company prior to the announcement.
Price Performance in Q1
In the January-March period, the stock has performed disappointingly mainly due to rising fuel costs. The stock has shed 0.2% of its value against the industry 's gain of 1%.
Direction ofEstimate Revisions
Let's take a look at the estimate revisions to get a clear picture of analysts' opinion on the stock before the earnings release.
American Airlines has witnessed the Zacks Consensus Estimate for first-quarter earnings being revised 29.8% upward to 74 cents over the last 30 days. Moreover, the estimate reflects a year-over-year improvement of 21.3%. However, when considering a shorter time period of seven days, the consensus mark for first-quarter earnings remains stable.
Furthermore, analysts polled by Zacks expect first-quarter revenues to come in at $10.41 billion, reflecting an increase of roughly 8.2% on a year-over-year basis.
Given this backdrop, let's delve deeper to unearth the factors that are likely to influence the company's first-quarter results:
As noted above, oil prices have been on an uptrend lately and were up approximately 8% in the January-March period. We note that high oil prices do not bode well for companies in the airline space as fuel costs account for a significant chunk of their expenditures.
Given the inversely proportional relation between oil prices and airline stocks, this increase in crude prices is expected to hurt American Airlines' bottom-line in the soon-to-be-reported quarter. Average fuel price per gallon (consolidated jet fuel, including taxes) is estimated in the range of $2.08-$2.13 for the quarter. The Zacks Consensus Estimate of $2.10 lies within the guided range. Fuel price was $1.91 per gallon at American Airlines in the final quarter of 2017.
Fuel prices apart, expenses on the labor front are also expected to limit first-quarter bottom-line growth. Non-fuel unit costs are anticipated to increase 3% year over year in the first quarter of 2018.
However, American Airlines is expected perform well on the unit revenue front in the soon-to-be-reported quarter. The carrier expects total revenue per available seat mile (TRASM: a key measure of unit revenues) to increase between 3% and 4% year over year in the first quarter backed by strong demands for air travel and improving yields. The Zacks Consensus Estimate for first-quarter TRASM (consolidated) is pegged at 15.76 cents, higher than 15.74 cents, unveiled by the company, in the fourth quarter of 2017. Moreover, pre-tax margin (excluding special items) is anticipated between 4% and 5%.
American Airlines Group Inc. Price and EPS Surprise
American Airlines Group Inc. Price and EPS Surprise | American Airlines Group Inc. Quote
What Does Our Model Say?
Our proven model does not show conclusively that American Airlines will beat earnings in first-quarter 2018. This is because a stock needs to have both - a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) - for this to happen. However, that is not the case as highlighted below.
Zacks ESP : American Airlines has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 74 cents per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : American Airlines carries a Zacks Rank #3, which increases the predictive power of ESP. However, we also need a positive ESP to be confident of an earnings beat. You can see the complete list of today's Zacks #1 Rank stocks here .
Conversely, we caution against all Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Investors interested in the broader Zacks Transportation sector may check out the following companies with the right combination of elements to beat estimates in the next releases:
Spirit Airlines, Inc. SAVE has an Earnings ESP of +2.46% and a Zacks Rank of 3. The company will release first-quarter 2018 results on Apr 26.
Copa Holdings, S.A. CPA has an Earnings ESP of +0.75% and a Zacks Rank #3. The company is scheduled to release first-quarter results on May 9.
C.H. Robinson Worldwide, Inc. CHRW has an Earnings ESP of +0.17% and a Zacks Rank #3. The company is scheduled to release first-quarter results on May 1.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Copa Holdings, S.A. (CPA): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
C.H. Robinson Worldwide, Inc. (CHRW): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc.AAL is scheduled to unveil first-quarter 2018 results on Apr 26, before the opening bell. Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report C.H. Furthermore, this airline behemoth has an impressive earnings history, having outshined the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 3.8%.
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Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report C.H. American Airlines Group Inc.AAL is scheduled to unveil first-quarter 2018 results on Apr 26, before the opening bell. The Zacks Consensus Estimate for first-quarter TRASM (consolidated) is pegged at 15.76 cents, higher than 15.74 cents, unveiled by the company, in the fourth quarter of 2017.
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Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report C.H. American Airlines Group Inc.AAL is scheduled to unveil first-quarter 2018 results on Apr 26, before the opening bell. Zacks ESP : American Airlines has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 74 cents per share.
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American Airlines Group Inc.AAL is scheduled to unveil first-quarter 2018 results on Apr 26, before the opening bell. Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report C.H. American Airlines has witnessed the Zacks Consensus Estimate for first-quarter earnings being revised 29.8% upward to 74 cents over the last 30 days.
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7081.0
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2018-04-24 00:00:00 UTC
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Canadian National (CNI) Q1 Earnings Lag, '18 View Trimmed
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AAL
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https://www.nasdaq.com/articles/canadian-national-cni-q1-earnings-lag-18-view-trimmed-2018-04-24
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nan
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nan
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Canadian National Railway Company 's CNI first-quarter 2018 earnings per share of 79 cents (C$1) lagged the Zacks Consensus Estimate of 80 cents. Moreover, the bottom line plunged significantly from the year-ago figure. High operating expenses hurt results.
Quarterly revenues of $2,521.3 million (C$3,194 million) however, surpassed the Zacks Consensus Estimate of $2,482.6 million. Rail freight revenues, accounting for the bulk of the top line in the reported quarter, saw a marginal dip.
Operating Results
On a year-over-year basis, freight revenues rose in Metals and Minerals (7%), Coal (10%) and Intermodal (10%) segments. While the same declined at Petroleum and Chemicals (3%), Forest Products (6%), Grain and Fertilizers (11%) as well as Automotive (4%). Overall, carloads (volumes) expanded 3% while revenue ton miles (RTMs) slipped 4% year over year. Meanwhile, rail freight revenues per carload declined 3% in the quarter under review.
The Coal and Intermodal sub-groups performed impressively with respect to car loads. In fact, the metric expanded 10% each at the two segments. The same increased 4% at the Metals and minerals segment. However, in Petroleum and Chemicals, Forest Products, Grain and Fertilizers plus Automotive, the car loads contracted 3%, 7%, 12% and 4%, respectively.
In the period under discussion, operating income decreased 16% year over year to C$1,030 million. Operating ratio (defined as operating expenses as a percentage of revenues) was 67.8% compared with 61.8% in the year-ago quarter. Higher fuel and labor costs as well as harsh weather conditions and a low network resiliency induced this key metric's deterioration.
Canadian National Railway Company Price, Consensus and EPS Surprise
Canadian National Railway Company Price, Consensus and EPS Surprise | Canadian National Railway Company Quote
Liquidity
This Zacks Rank #4 (Sell) company exited the first quarter with free cash flow of C$322 million compared with C$848 million a year ago. As of Mar 31, 2018, adjusted debt was C$12,841 million compared with C$11,880 million in the prior year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Dividend
The company's board of directors approved a dividend of 45.5 cents (C$0.4550) for the second quarter, payable Jun 29, 2018 to shareholders of record as of Jun 8.
Bearish 2018 Outlook
The company now expects adjusted earnings per share of C$5.10-C$5.25 for 2018. tthe previous outlook was in the range of C$5.25-C$5.40. The company has trimmed its view due to lower-than-expected RTMs in the first quarter. Thehe longer-than-expected construction period for significant infrastructure capacity projects in the current year also contributed to the outlook being slashed.
Capital Program Value Raised
The company has increased its C$3.2-billion capital program to C$3.4 billion. It plans to invest approximately C$400 million in new track infrastructure, mainly in Western Canada to increase capacity and enhance resiliency.
Upcoming Releases
Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players, namely American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Union Pacific Corporation UNP , all scheduled to release respective earnings numbers on Apr 26.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Union Pacific Corporation (UNP): Free Stock Analysis Report
Canadian National Railway Company (CNI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Upcoming Releases Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players, namely American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Union Pacific Corporation UNP , all scheduled to release respective earnings numbers on Apr 26. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Higher fuel and labor costs as well as harsh weather conditions and a low network resiliency induced this key metric's deterioration.
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Upcoming Releases Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players, namely American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Union Pacific Corporation UNP , all scheduled to release respective earnings numbers on Apr 26. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Canadian National Railway Company Price, Consensus and EPS Surprise Canadian National Railway Company Price, Consensus and EPS Surprise | Canadian National Railway Company Quote Liquidity This Zacks Rank #4 (Sell) company exited the first quarter with free cash flow of C$322 million compared with C$848 million a year ago.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Upcoming Releases Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players, namely American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Union Pacific Corporation UNP , all scheduled to release respective earnings numbers on Apr 26. Quarterly revenues of $2,521.3 million (C$3,194 million) however, surpassed the Zacks Consensus Estimate of $2,482.6 million.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Upcoming Releases Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players, namely American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Union Pacific Corporation UNP , all scheduled to release respective earnings numbers on Apr 26. Canadian National Railway Company 's CNI first-quarter 2018 earnings per share of 79 cents (C$1) lagged the Zacks Consensus Estimate of 80 cents.
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7082.0
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2018-04-24 00:00:00 UTC
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JetBlue (JBLU) Q1 Earnings Surpass Estimates, Increase Y/Y
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AAL
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https://www.nasdaq.com/articles/jetblue-jblu-q1-earnings-surpass-estimates-increase-y-y-2018-04-24
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nan
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nan
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JetBlue Airways Corporation 's JBLU first-quarter 2018 earnings per share of 27 cents surpassed the Zacks Consensus Estimate of 22 cents. The bottom line also increased 8% on a year-over-year basis backed by higher passenger revenues.
However, total operating revenues of $1,754 million fell short of the Zacks Consensus Estimate of $1,757.6 million. Nevertheless, the top line increased more than 9% from the year-ago figure. Passenger revenues, which accounted for bulk of the top line (96.5%), were up 8.7% in the quarter under review. Other revenues increased 39.9%.
Operating Statistics in Q1
Capacity, measured in available seat miles, expanded 3.3% year over year. Traffic - measured in revenue passenger miles - grew 4.1% in the reported quarter. Load factor (percentage of seats filled by passengers) also improved 70 basis points (bps) year over year to 84.6% as traffic growth outpaced capacity expansion in the three-month period.
Yield per passenger mile improved 4.4% year over year to 14.26 cents. While passenger revenue per available seat mile (PRASM: a key measure of unit revenue) increased 5.3% to 12.06 cents, operating revenue per available seat mile (RASM) was up 6.1% to 12.50 cents.
JetBlue Airways Corporation Price, Consensus and EPS Surprise
JetBlue Airways Corporation Price, Consensus and EPS Surprise | JetBlue Airways Corporation Quote
Expenses
In the first quarter, total operating expenses (on a reported basis) increased 11.5% year over year mainly owing to high fuel costs. Average fuel cost per gallon (including fuel taxes) escalated 23% to $2.09. Moreover, JetBlue's operating cost per available seat mile (CASM) was up 8% to 11.59 cents. Excluding fuel, the metric climbed 3.1% to 8.55 cents on account of a rise in labor costs.
Balance Sheet
JetBlue, carrying a Zacks Rank #3 (Hold), exited the quarter with cash and cash equivalents of $511 million compared with $303 million at the end of 2017. Total debt, at the end of the quarter, was $1,143 million than $1,199 million at the end of 2017. We note that this low-cost carrier is constantly working toward reducing its debt levels. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Outlook
For the second quarter of 2018, the carrier expects capacity to increase between 5% and 7%. The metric is still anticipated to increase in the range of 6.5-8.5% for 2018.
Consolidated operating cost per available seat mile, excluding fuel, is expected to grow in the band of 2-4% in the second quarter. For the current year, the metric is still projected in the range of -1% to +1% (year over year).
RASM movement is expected between 0% and -3% in the second quarter on a year-over-year basis. Second-quarter fuel cost, net of hedges, is anticipated to be $2.23 per gallon.
Upcoming Releases
Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players like American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Union Pacific Corporation UNP , All the three companies are scheduled to release respective earnings numbers on Apr 26.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Co. (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Union Pacific Corporation (UNP): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Upcoming Releases Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players like American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Union Pacific Corporation UNP , All the three companies are scheduled to release respective earnings numbers on Apr 26. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report To read this article on Zacks.com click here. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics.
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Upcoming Releases Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players like American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Union Pacific Corporation UNP , All the three companies are scheduled to release respective earnings numbers on Apr 26. Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report To read this article on Zacks.com click here. JetBlue Airways Corporation Price, Consensus and EPS Surprise JetBlue Airways Corporation Price, Consensus and EPS Surprise | JetBlue Airways Corporation Quote Expenses In the first quarter, total operating expenses (on a reported basis) increased 11.5% year over year mainly owing to high fuel costs.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report To read this article on Zacks.com click here. Upcoming Releases Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players like American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Union Pacific Corporation UNP , All the three companies are scheduled to release respective earnings numbers on Apr 26. While passenger revenue per available seat mile (PRASM: a key measure of unit revenue) increased 5.3% to 12.06 cents, operating revenue per available seat mile (RASM) was up 6.1% to 12.50 cents.
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Click to get this free report Southwest Airlines Co. (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Union Pacific Corporation (UNP): Free Stock Analysis Report To read this article on Zacks.com click here. Upcoming Releases Investors interested in the broader Transportation sector keenly await first-quarter earnings reports from key players like American Airlines Group Inc. AAL , Southwest Airlines Co. LUV and Union Pacific Corporation UNP , All the three companies are scheduled to release respective earnings numbers on Apr 26. While passenger revenue per available seat mile (PRASM: a key measure of unit revenue) increased 5.3% to 12.06 cents, operating revenue per available seat mile (RASM) was up 6.1% to 12.50 cents.
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7083.0
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2018-04-23 00:00:00 UTC
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Zacks Industry Outlook Highlights: Delta Air, American Airlines, JetBlue Airways, Spirit Airlines and United Continental
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AAL
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights%3A-delta-air-american-airlines-jetblue-airways-spirit
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nan
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nan
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For Immediate Release
Chicago, IL - April 23, 2018 - Today, Zacks Equity Research discusses the Industrial Metals, including Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL , JetBlue Airways Corp. JBLU , Spirit Airlines, Inc. SAVE and United Continental Holdings, Inc. UAL .
Industry: Airlines, Part 2
Link https://www.zacks.com/commentary/158890/reasons-for-optimism-on-airlines-amid-geopolitical-tensions
Fuel costs have been on the rise this year. Mounting tensions in the Middle East and the resultant fears of supplies being disrupted have resulted in a further increase in oil prices .
Despite headwinds like high fuel costs and capacity-related woes, all is not lost for airline stocks. There are still a few factors that make airline stocks attractive from an investment point of view. Let's delve into the details.
Unit Revenues
The scenario pertaining to unit revenues - a measure of sales relative to capacity for a carrier - is steadily improving for airline stocks. In keeping with this improved scenario, the Atlanta, GA- based Delta Air Lines, Inc., which kicked off the Q1 earnings season for airlines on Apr 12, reported a 4.3% increase in passenger revenue per available seat mile (PRASM: a key measure of unit revenues). Total revenues per available seat miles (TRASM: adjusted ) also increased 5% (on a year-over-year basis) in the first quarter.
This Zacks Rank #3 (Hold) carrier expects impressive unit revenue growth in the second quarter as well. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Other airline players who will unveil results shortly also projected robust Q1 unit revenues on the back of strong demand for air travel coupled with improving yields. For example, American Airlines Group Inc. recently raised its unit revenue guidance and expects TRASM to increase between 3% and 4% year over year in the soon to-be-reported quarter (previous guidance anticipated the metric to grow in the 2-4% band).
Similarly, JetBlue Airways Corp. expects revenue per available seat mile (RASM) to increase approximately 6.1% year over year (previous guidance anticipated the metric to grow in the 3.5-5.5% band). The metric was raised to the tune of 2.5 points owing to the timing of Easter in March.
Additionally, a lower completion factor due to the increase in flight cancellations boosted first-quarter unit revenues to the tune of approximately one point. Lower completion factor implies higher flight cancelations and a reduction in capacity. This, in turn, leads to an increase in unit revenues.
Labor Costs - Less of a Headwind
It is a well-established fact that high labor costs have been limiting bottom-line growth for airlines for quite some time. Even though such costs will remain a hindrance, the good news is that the extent of their increase is expected to decline with time. This is evident from the improved outlook provided by the key sector players with respect to cost per available seat miles (excluding fuel).
For example, American Airlines predicted that year-over-year growth for non-fuel cost per available seat miles (CASM) will be around 3% in the first quarter of 2018 compared with the previous projection that had hinted at a 4% increase.
Similarly, at Spirit Airlines, Inc., non-fuel unit costs are expected to decline approximately 5% in the soon-to-be reported quarter. The projection is better than the earlier view which had called for a 3% decline. Better operational performance contributed to the improved view.
Bullish Readings
The global traffic data for February, released by the International Air Transport Association ("IATA") raises optimism. Load factor (percentage of seats filled by passengers) touched record levels of 80.4% in February. The upside was due to the fact that traffic growth (7.6%) outpaced capacity expansion (6.3%) for the month. The favorable load factor reading highlights the fact that demand for air travel is strong.
With growth in demand outpacing capacity expansion, the scenario bodes well for airline yields. Moreover, demand for air freight across the globe witnessed substantial growth (6.8%) in February.
Furthermore, the bullish projection pertaining to spring air travel by the Airlines for America ('A4A') - a premier trade organization - augments the fact that demand for air travel is strong, thus supporting the bullish case for airlines. According to the forecast, approximately 151 million passengers are anticipated to opt for air travel in the spring period (Mar 1-Apr 30). In fact, spring of 2018 is expected to be the busiest of all times for American carriers. The forecast is of 2.47 million fliers per day during the period, up 94,000 a day from the comparable year-ago figure.
Additionally, according to the Air Travel Consumer Report unveiled by the U.S. Department of Transportation for January, most U.S. carriers were more punctual in reaching their destinations compared with the year-ago figure. Moreover, the findings suggest that fliers were pleased as the number of complaints decreased during the month on a year-over-year basis.
Per the report, 79.6% flights operated by U.S. carriers touched down on time. This represents a marked improvement from the comparable figure of 76% in January 2017.
Improvement in the U.S. economy bodes well for travel-focused stocks like airlines. With consumer confidence remaining strong, more and more Americans are taking vacations. Further, affordable ticket prices are also favorable for consumers, who are being aided by a much-improved job market and rising disposable income.
Other Tailwinds
Financial prosperity of airline players is reflected by the fact that they indulge in shareholder-friendly (dividends/buybacks) and employee-friendly (profit sharing) activities. Additionally, the robust financial health of most domestic carriers has prompted them to invest substantially in improving the flying experience for travelers, in a bid to stay afloat in the competitive airline space. For example, in a bid to modernize its fleet further, United Continental Holdings, Inc. announced in February the addition of Boeing 737 MAX 9 planes to its portfolio.
Their financial health of airline players is likely to improve further with the advent of the new tax law (Tax Cuts and Jobs Act). Consequently, an uptick in the shareholder/employee-friendly measures is very much in the cards in the airline space.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL - April 23, 2018 - Today, Zacks Equity Research discusses the Industrial Metals, including Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL , JetBlue Airways Corp. JBLU , Spirit Airlines, Inc. SAVE and United Continental Holdings, Inc. UAL . Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Other airline players who will unveil results shortly also projected robust Q1 unit revenues on the back of strong demand for air travel coupled with improving yields.
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For Immediate Release Chicago, IL - April 23, 2018 - Today, Zacks Equity Research discusses the Industrial Metals, including Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL , JetBlue Airways Corp. JBLU , Spirit Airlines, Inc. SAVE and United Continental Holdings, Inc. UAL . Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Similarly, JetBlue Airways Corp. expects revenue per available seat mile (RASM) to increase approximately 6.1% year over year (previous guidance anticipated the metric to grow in the 3.5-5.5% band).
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For Immediate Release Chicago, IL - April 23, 2018 - Today, Zacks Equity Research discusses the Industrial Metals, including Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL , JetBlue Airways Corp. JBLU , Spirit Airlines, Inc. SAVE and United Continental Holdings, Inc. UAL . Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In keeping with this improved scenario, the Atlanta, GA- based Delta Air Lines, Inc., which kicked off the Q1 earnings season for airlines on Apr 12, reported a 4.3% increase in passenger revenue per available seat mile (PRASM: a key measure of unit revenues).
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For Immediate Release Chicago, IL - April 23, 2018 - Today, Zacks Equity Research discusses the Industrial Metals, including Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL , JetBlue Airways Corp. JBLU , Spirit Airlines, Inc. SAVE and United Continental Holdings, Inc. UAL . Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. This Zacks Rank #3 (Hold) carrier expects impressive unit revenue growth in the second quarter as well.
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7084.0
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2018-04-20 00:00:00 UTC
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What's in Store for Norfolk Southern (NSC) in Q1 Earnings?
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AAL
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https://www.nasdaq.com/articles/whats-in-store-for-norfolk-southern-nsc-in-q1-earnings-2018-04-20
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nan
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nan
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Norfolk Southern CorporationNSC is scheduled to report first-quarter 2018 results on Apr 25, before the market opens.
In the fourth quarter of 2017, the company delivered a positive earnings surprise of 8.3%. Moreover, an encouraging earnings history shows the stock having surpassed the Zacks Consensus Estimate in each of the trailing four quarters with an average beat of 7.2%.
However, the scenario pertaining to this to-be-reported quarter does not appear too bright and this can further be gauged from the stock's southbound estimate revision. The consensus mark for earnings has been revised 2.7% downward in the last 30 days.
Factors at Play
Sluggish coal and automotive revenues are expected to hurt the top line in the first quarter. Notably, at the J.P. Morgan Aviation, Transportation and Industrials conference, the company stated that automotive and coal volumes declined 7% and 6%, respectively, as of Mar 10. Automotive weakness is thus anticipated to hurt the broader merchandise segment.
The Zacks Consensus Estimate for first-quarter coal revenues is pegged at $401 million, lower than $426 million reported in the previous quarter. The consensus mark for automotive in the quarter to be reported stands at $236 million, also falling below the past quarter's $242 million.
Additionally, the company's high-debt levels raise concerns. Apart from a rise in the immediate finance costs, the high leverage ratio will require significant cash flows for repayments.
However, higher volumes are expected to aid results. We expect the intermodal unit to perform impressively in the first quarter of 2018.
The company's cost-cutting efforts are also projected to generate significant cost savings, thereby boosting the bottom line in the soon-to-be-reported quarter.
The company's initiatives to reward shareholders through dividends and share buybacks are also encouraging. In January, the company raised its quarterly dividend to 72 cents per share (annualized $2.88) from 61 cents (annualized $2.44).
Earnings Whispers
Our proven model does not conclusively show that Norfolk Southern is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a solid Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here as elaborated below.
Zacks ESP : Norfolk Southern has an Earnings ESP of -0.50% as the Most Accurate estimate stands at $1.76 per share, lower than the Zacks Consensus Estimate of $1.77. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : Norfolk Southern carries a Zacks Rank #3, which increases the predictive power of ESP. However, combined with the company's negative ESP leaves surprise prediction inconclusive.
We caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Norfolk Southern Corporation Price and EPS Surprise
Norfolk Southern Corporation Price and EPS Surprise | Norfolk Southern Corporation Quote
Stocks to Consider
Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around.
American Airlines has an Earnings ESP of +3.35% and a Zacks Rank of 3. The company is scheduled to announce first-quarter results on Apr 26. You can see the complete list of today's Zacks #1 Rank stocks here .
JetBlue Airways is a #3 Ranked player and has an Earnings ESP of +1.02%. The company is slated to release first-quarter numbers on Apr 24.
Expeditors is a #3 Ranked player and has an Earnings ESP of +2.09%. The company will report first-quarter earnings figures on May 8.
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Norfolk Southern Corporation (NSC): Free Stock Analysis Report
Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Norfolk Southern Corporation Price and EPS Surprise Norfolk Southern Corporation Price and EPS Surprise | Norfolk Southern Corporation Quote Stocks to Consider Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, an encouraging earnings history shows the stock having surpassed the Zacks Consensus Estimate in each of the trailing four quarters with an average beat of 7.2%.
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Norfolk Southern Corporation Price and EPS Surprise Norfolk Southern Corporation Price and EPS Surprise | Norfolk Southern Corporation Quote Stocks to Consider Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for first-quarter coal revenues is pegged at $401 million, lower than $426 million reported in the previous quarter.
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Norfolk Southern Corporation Price and EPS Surprise Norfolk Southern Corporation Price and EPS Surprise | Norfolk Southern Corporation Quote Stocks to Consider Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks ESP : Norfolk Southern has an Earnings ESP of -0.50% as the Most Accurate estimate stands at $1.76 per share, lower than the Zacks Consensus Estimate of $1.77.
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Norfolk Southern Corporation Price and EPS Surprise Norfolk Southern Corporation Price and EPS Surprise | Norfolk Southern Corporation Quote Stocks to Consider Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report To read this article on Zacks.com click here. Norfolk Southern CorporationNSC is scheduled to report first-quarter 2018 results on Apr 25, before the market opens.
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7085.0
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2018-04-20 00:00:00 UTC
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What's in the Cards for Ryder (R) Stock in Q1 Earnings?
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AAL
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https://www.nasdaq.com/articles/whats-in-the-cards-for-ryder-r-stock-in-q1-earnings-2018-04-20
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nan
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nan
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Ryder System, Inc . R is scheduled to report first-quarter 2018 results on Apr 24, before the market opens.
In the fourth quarter of 2017, the company delivered a positive earnings surprise of 1.48%. Moreover, it boasts an impressive earnings history, having outperformed the Zacks Consensus Estimate in three of the last four quarters with an average beat of 2.43%.
However, things do not seem bright for the company this quarter. The stock has also seen the Zacks Consensus Estimate being revised 9.3% downward in the last 60 days.
Factors at Play
Weak market conditions are a challenge for Ryder's used vehicle sales. This is further expected to hamper results in the first quarter. Notably, the company projects adjusted earnings per share in the band of 83-90 cents, falling way below $1.37, reported in the fourth quarter of 2017.
Ryder is likely to spend heavily on capital expenditure in the current year due to higher growth and replacements costs in lease as well as rental. The increased capital expenses are likely to burden the bottom line in 2018, effects of which might surface in the quarter to be reported.
Additionally, the company's high debt-to-equity ratio (expressed as percentage) is anticipated to hurt results in the to-be-reported quarter. The metric lies well above the industry's average as well as the S&P 500 index's figure.
The new tax law is, however, a positive for Ryder and might aid first-quarter results. Buoyed by the new law, Ryder hiked its quarterly cash dividend by 6 cents to 52 cents per share in February.
Earnings Whispers
Our proven model does not conclusively show that Ryder is likely to beat estimates in the soon to-be-reported quarter. This is because a stock needs to have both a positive Earnings ESP and a solid Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as elaborated below.
Zacks ESP : Ryder has an Earnings ESP of -0.95% as the Most Accurate estimate stands at 87 cents per share, lower than the Zacks Consensus Estimate of 88 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : Ryder carries a Zacks Rank #3, which increases the predictive power of ESP. However, combined with a negative ESP leaves surprise prediction inconclusive.
We caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Ryder System, Inc. Price and EPS Surprise
Ryder System, Inc. Price and EPS Surprise | Ryder System, Inc. Quote
Stocks to Consider
Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around.
American Airlines has an Earnings ESP of +3.35% and a Zacks Rank of 3. The company is scheduled to announce first-quarter results on Apr 26. You can see the complete list of today's Zacks #1 Rank stocks here .
JetBlue Airways is a #3 Ranked player and has an Earnings ESP of +1.02%. The company is slated to release first-quarter numbers on Apr 24.
Expeditors is a #3 Ranked player and has an Earnings ESP of +2.09%. The company will report first-quarter earnings figures on May 8.
Wall Street's Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Ryder System, Inc. (R): Free Stock Analysis Report
Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Ryder System, Inc. Price and EPS Surprise Ryder System, Inc. Price and EPS Surprise | Ryder System, Inc. Quote Stocks to Consider Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Ryder System, Inc. (R): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report To read this article on Zacks.com click here. Ryder is likely to spend heavily on capital expenditure in the current year due to higher growth and replacements costs in lease as well as rental.
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Ryder System, Inc. Price and EPS Surprise Ryder System, Inc. Price and EPS Surprise | Ryder System, Inc. Quote Stocks to Consider Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Ryder System, Inc. (R): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Ryder System, Inc. Price and EPS Surprise Ryder System, Inc. Price and EPS Surprise | Ryder System, Inc. Quote Stocks to Consider Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Ryder System, Inc. (R): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks ESP : Ryder has an Earnings ESP of -0.95% as the Most Accurate estimate stands at 87 cents per share, lower than the Zacks Consensus Estimate of 88 cents.
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Ryder System, Inc. Price and EPS Surprise Ryder System, Inc. Price and EPS Surprise | Ryder System, Inc. Quote Stocks to Consider Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Ryder System, Inc. (R): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks ESP : Ryder has an Earnings ESP of -0.95% as the Most Accurate estimate stands at 87 cents per share, lower than the Zacks Consensus Estimate of 88 cents.
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7086.0
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2018-04-20 00:00:00 UTC
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Zacks Industry Outlook Highlights: Delta Air Lines, United Continental Holdings, American Airlines Group and JetBlue Airways
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AAL
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights%3A-delta-air-lines-united-continental-holdings-american
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nan
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For Immediate Release
Chicago, IL - April 20, 2018 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 1, including Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL , American Airlines Group Inc. AAL and JetBlue Airways Corp. JBLU.
Industry: Airlines, Part 1
Link: https://www.zacks.com/commentary/158758/airline-industry-outlook---april-2018
Airline stocks are unlikely to grab major headlines in the first-quarter 2018 reporting cycle, which will see reports from many sector participants in the coming days. High fuel costs are likely to limit bottom-line growth in the reporting cycle. Moreover, multiple flight cancellations due to foul weather is also likely to weigh on results.
In fact, high fuel costs have hurt the results of the two carriers - Delta Air Lines, Inc. and United Continental Holdings, Inc. - who have reported thus far. For example, fuel costs increased approximately 20% at Delta. Moreover, the winter storms hurt results to the tune of $44 million at this Zacks Rank #3 (Hold) Atlanta, GA-based carrier. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
In fact, oil prices have been on an uptrend lately and were up approximately 8% in the January-March period. We note that high oil prices do not bode well for companies in the airline space as fuel costs account for a significant chunk of their expenditures.
Given the inversely proportional relation between oil prices and airline stocks, this increase in crude prices is expected to hurt results for the carriers who are still to report their first-quarter numbers.
In fact, fuel prices are likely to be on uptrend this year. The International Air Transport Association ("IATA") projects that jet fuel prices will escalate to around 12.5% to $73.8 per barrel in 2018. The fuel bill is likely to account for 20.5% of total costs in 2018 (18.8% in 2017). Apart from high fuel costs, expenses on the labor front and capacity-related woes represent further challenges for sector participants.
Zacks Industry Rank Supports Ongoing Struggles
The Zacks Industry Rank #177 (of 250 plus groups) carried by the Zacks Airline Industry highlights the fact that airlines are certainly not in favor, as far as investors are concerned. This unfavorable rank places the companies within the bottom 31% slot of the Zacks industries.
We classify our entire 250-plus industries into two groups: the top half (i.e. industries with the best average Zacks Rank) and the bottom half (industries with the worst average Zacks Rank).
Using a week's rebalance, the top half beat the bottom half by a factor of more than 2 to 1 over the last decade.
Click here to know more: About Zacks Industry Rank
Not All Brickbats, Some Roses Too
Despite the above-mentioned headwinds, there are some factors that are favorable for sector participants. The unit revenue scenario is steadily improving, which is a huge positive for the sector. Riding on the improved scenario, the likes of American Airlines Group Inc. and JetBlue Airways Corp. have issued bullish unit revenue views for the first quarter.
What is more encouraging is the fact that the bright scenario with respect to this key metric is unlikely to fade soon. For example, Delta expects total unit revenues, excluding refinery sales, to increase in the 3-5% range in the second quarter of 2018. Furthermore, rising fuel costs might lead to a rise in ticket prices and boost revenues.
Strong demand for air travel also bodes well the sector. For example, Airlines for America ('A4A') - a premier trade organization - for U.S. carriers unveiled an upbeat forecast for the current spring season. Per the projection, airline companies are expected to profit considerably this spring (Mar 1-Apr 30) as travel demand is anticipated to increase 4% year over year.
Moreover, the new tax law (Tax Cuts and Jobs Act) is a positive for airlines and should boost profits of the participants of this key sector. Apart from boosting results, the new law should see an uptick in shareholder-friendly activities (dividends/buybacks) in the space.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For Immediate Release Chicago, IL - April 20, 2018 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 1, including Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL , American Airlines Group Inc. AAL and JetBlue Airways Corp. JBLU. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, high fuel costs have hurt the results of the two carriers - Delta Air Lines, Inc. and United Continental Holdings, Inc. - who have reported thus far.
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For Immediate Release Chicago, IL - April 20, 2018 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 1, including Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL , American Airlines Group Inc. AAL and JetBlue Airways Corp. JBLU. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, high fuel costs have hurt the results of the two carriers - Delta Air Lines, Inc. and United Continental Holdings, Inc. - who have reported thus far.
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For Immediate Release Chicago, IL - April 20, 2018 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 1, including Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL , American Airlines Group Inc. AAL and JetBlue Airways Corp. JBLU. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Industry Rank Supports Ongoing Struggles The Zacks Industry Rank #177 (of 250 plus groups) carried by the Zacks Airline Industry highlights the fact that airlines are certainly not in favor, as far as investors are concerned.
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For Immediate Release Chicago, IL - April 20, 2018 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 1, including Delta Air Lines, Inc. DAL , United Continental Holdings, Inc. UAL , American Airlines Group Inc. AAL and JetBlue Airways Corp. JBLU. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, high fuel costs have hurt the results of the two carriers - Delta Air Lines, Inc. and United Continental Holdings, Inc. - who have reported thus far.
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7087.0
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2018-04-20 00:00:00 UTC
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American Airlines Group Inc Investors Have Much to Think About Headed Into Earnings
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc-investors-have-much-think-about-headed-earnings-2018-04-20
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Is a solid earnings report from a competitor really enough to justify a big gain from American Airlines Group Inc (NASDAQ: AAL )? Investors certainly thought it was, as they sent American Airlines stock up 4% on Wednesday after rival United Continental Holdings Inc (NYSE: UAL ) posted rock-solid first quarter numbers.
Makes sense. And, given that Delta Air Lines, Inc. (NYSE: DAL ) delivered a pretty healthy first quarter just a week earlier , it wasn't exactly a stretch to come to such a conclusion.
And yet, even with Wednesday's pop, AAL stock has been noticeably weak of late. What gives? Investors are still concerned that a nasty price war could be brewing. They may be right, but that concern isn't even the half of it.
An Increasingly Expensive Business
In the most superficial sense, United Continental's first quarter report bodes well for American Airlines stock. United turned $9.032 billion worth of revenue last quarter into a per-share profit 50 cents. Both were better than expected, and both were higher than the prior year's comps - earnings in particular.
10 Dividend-Payers to Own for Month-to-Month Income
Delta did well last quarter, too, although arguably not quite as well as United. Net income fell just a bit, from $561 million to $547 million despite record revenues of $9.76 billion. And, that top line still missed the estimate of $9.85 billion, though per-share earnings of 74 cents beat by a penny.
The one common element of Delta's and United's reports that's sure to be a well-watched factor when American Airlines dishes out its first quarter numbers on Apr. 26? Rising costs. Namely, increases in fuel and labor costs, which are the second-largest and largest expenses, respectively, for almost all airlines.
Fuel expenditures were up 26% for United Continental last quarter, while payroll spending grew 3%. Delta saw its jet fuel expenses grow 20% year-over-year.
None of the three major U.S. airlines hedge their fuel costs any longer, as they found it too expensive and too unfruitful to do so.
It's Complicated
Digesting higher fuel costs isn't as one-dimensional or as black-and-white as it may seem on the surface; it's not just a simple matter of charging fliers a little more.
One of those nuances is, as Delta CEO Ed Bastian pointed out following Delta's quarterly report, the six-to-nine-month lag between rising fuel prices being passed along to consumers in the form of higher ticket prices.
He explained, "It forces discipline," adding, "When you think about fuel at $70 a barrel you've got think about the long-term implications of the supply you're putting into the market."
In other words, an airline doesn't want to expand by adding new routes unless it knows it can pay for that growth by selling those tickets. Ticket prices need to be affordable for consumers but also profitable for airlines, which is a fine line sometimes.
The X-factor: Knowing your competition may expand or open a new route (or new routes) with a willingness to lose money for a short while in doing so. "Being there" first is a key part of the airline battle.
And that may well be exactly what's happening right now.
You'll recall that United Continental put all the industry's stocks into a tailspin in January, announcing its intent to increase its capacity at a pace of between 4% and 6% per year through 2020 .
This was coupled with the comment, "The best way to compete with low-cost carriers is to match their prices. We can't let low-cost carriers have price advantages in our hubs," from one of its executives during its Q3 conference call . It's difficult to think a price war isn't on the horizon.
United has since backed off a bit on its expansion plans, and rhetoric, but the proverbial cat is out of the bag.
Bad news for airline investors? Not so fast. Demand for air travel in the United States is expected to grow at an annual pace of 3% through 2036 , with global demand projected to grow at a 4.7% clip for the same time frame. If those projections do indeed pan out, a price war may not be so brutal.
The matter of expensive fuel and costly labor would linger, though.
Looking Ahead for American Airlines Stock
It's a lot - perhaps too much - for the average investor to think about heading into American Airlines' Apr. 26 earnings report. AAL shareholders can more or less expect their company to mimic the quarterly numbers Delta and United Continental just posted, but the dynamic is bigger than any one quarter.
A bet on American Airlines stock is a bet on persistent demand growth and a bet on tame fuel prices. Further muddying the waters is the fact that the former depends on the latter factor.
The really frustrating nuance? For demand for air travel to remain brisk, the global economy must remain reasonably firm. The firmer the global economy is, the more bullish pressure gets applied to oil, and jet fuel, prices, thus making air travel progressively unaffordable. That's the complicated worry Delta's chief Ed Bastian was describing just a few days ago.
Throw in political posturing that could turn into an outright trade war that will surely create a ripple effect, and there's far more uncertainty than certainty right now. That's the biggest part of the reason American Airlines stock is down 19% since its January peak.
Why American Airlines Group Inc Stock Is a Safe Play Once Again
Investors certainly have much to think about before, during and after Thursday's earnings report. This isn't just about last quarter's numbers.
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As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley .
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The post American Airlines Group Inc Investors Have Much to Think About Headed Into Earnings 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Is a solid earnings report from a competitor really enough to justify a big gain from American Airlines Group Inc (NASDAQ: AAL )? And yet, even with Wednesday's pop, AAL stock has been noticeably weak of late. AAL shareholders can more or less expect their company to mimic the quarterly numbers Delta and United Continental just posted, but the dynamic is bigger than any one quarter.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Is a solid earnings report from a competitor really enough to justify a big gain from American Airlines Group Inc (NASDAQ: AAL )? And yet, even with Wednesday's pop, AAL stock has been noticeably weak of late. AAL shareholders can more or less expect their company to mimic the quarterly numbers Delta and United Continental just posted, but the dynamic is bigger than any one quarter.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Is a solid earnings report from a competitor really enough to justify a big gain from American Airlines Group Inc (NASDAQ: AAL )? And yet, even with Wednesday's pop, AAL stock has been noticeably weak of late. AAL shareholders can more or less expect their company to mimic the quarterly numbers Delta and United Continental just posted, but the dynamic is bigger than any one quarter.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Is a solid earnings report from a competitor really enough to justify a big gain from American Airlines Group Inc (NASDAQ: AAL )? And yet, even with Wednesday's pop, AAL stock has been noticeably weak of late. AAL shareholders can more or less expect their company to mimic the quarterly numbers Delta and United Continental just posted, but the dynamic is bigger than any one quarter.
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7088.0
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2018-04-19 00:00:00 UTC
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Will Unit Revenues Aid Hawaiian Holdings (HA) Q1 Earnings?
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AAL
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https://www.nasdaq.com/articles/will-unit-revenues-aid-hawaiian-holdings-ha-q1-earnings-2018-04-19
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nan
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nan
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Hawaiian Holdings, Inc . HA is scheduled to release first-quarter 2018 earnings numbers on Apr 24, after the closing bell.
Last quarter, the company reported in-line earnings and lower-than-expected revenues. Moreover, the bottom line declined 14.1% due to high costs while the top line increased 8.5% on a year-over-year basis.
Let's see, how things shape up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that Hawaiian Holdings is likely to beat on earnings this quarter because it has the perfect combination of the following two key ingredients:
Zacks ESP : Hawaiian Holdings has an Earnings ESP of +1.27%. This is because the Most Accurate estimate is pegged at 83 cents per share, higher than the Zacks Consensus Estimate of 82 cents. A positive Zacks ESP is indicative of a likely earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : Hawaiian Holdings carries a Zacks Rank #3 (Hold). Notably, stocks with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 when combined with a positive ESP have significantly higher chances of beating estimates.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Hawaiian Holdings, Inc. Price and EPS Surprise
Hawaiian Holdings, Inc. Price and EPS Surprise | Hawaiian Holdings, Inc. Quote
Factors Likely at Play
The carrier's strong demand for air travel is anticipated to boost passenger revenues in the first quarter. The Zacks Consensus Estimate for passenger revenues stands at $613 million, above $538 million reported in the prior-year quarter.
The company's performance with respect to unit revenues is expected to aid the top line in the quarter to be reported. It projects operating revenue per available seat mile (RASM) to increase in the band of 3-5%. The Zacks Consensus Estimate for RASM is pegged at 13.95 cents, higher than 13.58 cents a year ago.
Additionally, the consensus mark for passenger unit revenues in the quarter stands at 12.96 cents, above 11.89 cents reported in the year-earlier period.
However, unit costs excluding fuel are projected to rise significantly in the first quarter of 2018, primarily due to higher labor costs. This is likely to hurt the company's bottom line in turn. Cost per available seat mile (CASM) excluding fuel is anticipated to rise between 4% and 6% in the first quarter. The consensus estimate for unit costs is pegged at 9.79 cents, slightly higher than the year-ago figure of 9.64 cents.
High fuel costs are also expected to weigh on the bottom line. Further, fuel cost per gallon (economic) is estimated in the band of $1.90-$2 for the first quarter of 2018. The Zacks Consensus Estimate for first-quarter fuel price per gallon stands at $2, much above $1.68 reported a year ago.
Other Stocks to Consider
Investors interested in the broader Transportation sector may also check out other stocks worth considering like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around.
American Airlines has an Earnings ESP of +3.35% and a Zacks Rank of 3. The company is scheduled to announce first-quarter results on Apr 26. You can see the complete list of today's Zacks #1 Rank stocks here .
JetBlue Airways is a #3 Ranked player and has an Earnings ESP of +1.02%. The company is slated to release first-quarter numbers on Apr 24.
Expeditors is a Zacks #3 Ranked player and has an Earnings ESP of +2.09%. The company will report first-quarter earnings figures on May 8.
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JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other Stocks to Consider Investors interested in the broader Transportation sector may also check out other stocks worth considering like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report To read this article on Zacks.com click here. The company's performance with respect to unit revenues is expected to aid the top line in the quarter to be reported.
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Other Stocks to Consider Investors interested in the broader Transportation sector may also check out other stocks worth considering like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report To read this article on Zacks.com click here. Hawaiian Holdings, Inc. Price and EPS Surprise Hawaiian Holdings, Inc. Price and EPS Surprise | Hawaiian Holdings, Inc. Quote Factors Likely at Play The carrier's strong demand for air travel is anticipated to boost passenger revenues in the first quarter.
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Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report To read this article on Zacks.com click here. Other Stocks to Consider Investors interested in the broader Transportation sector may also check out other stocks worth considering like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around. Our proven model shows that Hawaiian Holdings is likely to beat on earnings this quarter because it has the perfect combination of the following two key ingredients: Zacks ESP : Hawaiian Holdings has an Earnings ESP of +1.27%.
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Other Stocks to Consider Investors interested in the broader Transportation sector may also check out other stocks worth considering like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report To read this article on Zacks.com click here. Notably, stocks with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 when combined with a positive ESP have significantly higher chances of beating estimates.
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7089.0
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2018-04-18 00:00:00 UTC
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Avoid United Continental Holdings Inc Stock Despite Earnings Beat
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AAL
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https://www.nasdaq.com/articles/avoid-united-continental-holdings-inc-stock-despite-earnings-beat-2018-04-18
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nan
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nan
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Although United Continental Holdings Inc (NYSE: UAL ) earnings weren't hurt by another public relations debacle, United stock just isn't a safe bet. The company again finds itself suffering from negative press after a dog died in one of its overhead compartments.
Despite dilemmas such as these, its financial performance remains strong. It has beaten earnings estimates over the last few quarters. Moreover, with the stock rising 22-fold since 2009, low multiples, and high earnings growth predicted, one might be inclined to ignore the bad press.
However, given the UAL's performance in comparison to peers, this earnings beat is not enough reason to buy United stock, especially when you can get better stocks with way less risk.
7 Cheap Tech Stocks to Buy After the Facebook Reveal
Earnings Beat Can't Help Poor Public Image
The company reported a profit of 50 cents per share. A profit of 40 cents per share came in for the same quarter last year. Consensus revenue estimates stand at a little more than $8.96 billion for the same quarter, an increase of $540 million over last year's quarterly revenue of $8.42 billion.
However, investors should expect non-financial press to dominate UAL headlines. Perhaps no U.S.-based carrier has dealt with more embarrassing press than has UAL.
Even so-called "legacy" carriers such as American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ) have not come under this degree of fire. The latest debacle came as a pet died in one of its overhead compartments.
United's image has also suffered from other incidents such as reports of the passenger who was injured after refusing to allow United to bump him last year. Also, the song " United Breaks Guitars ," which has attracted over 18 million views on YouTube to date, serves as a continuing reminder of UAL's reputation for poor customer service.
Still, United Airlines Stock Benefits from High Profit Growth
However, analysts should not confuse a public relations image with data. Contrary to popular belief, the airline continues to increase passenger loads. Its latest monthly report showed a 6.5% increase in passenger loads in March.
Also, the stock trades at around $67 per share. That represents quite a comeback for a stock that had fallen as low as $3 per share in 2009. Despite this massive increase, United Airlines stock trades at a price-to-earnings (PE) ratio of 8.9. Both AAL and DAL have multiples closer to 10 currently.
The prospects for growth also appear favorable. The company has seen stagnant revenue growth for many years. United Airlines stock enjoyed increased profits after the company cut its cost of revenue by $6 billion in 2015. With revenue growth improving, analysts expect further earnings increases.
After earning $6.76 per share in 2017, analysts forecast $7.82 per share in 2018 and $9.44 per share in 2019.
United Airlines Stock Won't Outperform Peers
The problem for would-be buyers of United Airlines stock is that its peers enjoy the same level of growth.
And if old-line carriers such as American and Delta see these kinds of profit increases, younger, more nimble airlines such as Southwest Airlines Co (NYSE: LUV ), JetBlue Airways Corporation (NASDAQ: JBLU ), and Spirit Airlines Incorporated (NYSE: SAVE ) also benefit from these growth levels.
Moreover, the industry's reputation for low profits persists. Fears that massive losses could return also keeps multiples low. For these reasons, airline-related funds could serve as a safer play.
The Fidelity Select Portfolios Air Transportation Portfolio (MUTF: FSAIX ) or the ETF S Solutions/U S Glb Jets ETF (NYSEARCA: JETS ) are among the choices invested mostly in air transport. Buyers of the fund would also see dividend distributions, a benefit not currently offered by United Airlines stock. If one prefers an individual stock, SAVE currently produces the highest level of overall profit growth.
The Bottom Line on United Airlines Stock
Although robust financials stands in contrast to its poor public image, investors still should avoid United Airlines stock. If one looks only at UAL's financials, they might be inclined to buy the equity. A low PE, high profit growth, and a record of beating estimates might lead investors into UAL stock.
However, most of its peers are reporting comparable or better numbers. For this reason, investors might see better returns in a mutual fund or ETF tied to airlines. They could also look at Spirit Airlines, which currently enjoys the highest growth in the industry.
Hence, despite strong numbers and a likely earnings beat coming, investors will likely do better by onboarding other airline-related investments.
As of this writing, Will Healy did not hold a position in any of the aforementioned stocks.
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The post Avoid United Continental Holdings Inc Stock Despite Earnings Beat appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Even so-called "legacy" carriers such as American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ) have not come under this degree of fire. Both AAL and DAL have multiples closer to 10 currently. 7 Cheap Tech Stocks to Buy After the Facebook Reveal Earnings Beat Can't Help Poor Public Image The company reported a profit of 50 cents per share.
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Even so-called "legacy" carriers such as American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ) have not come under this degree of fire. Both AAL and DAL have multiples closer to 10 currently. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Although United Continental Holdings Inc (NYSE: UAL ) earnings weren't hurt by another public relations debacle, United stock just isn't a safe bet.
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Even so-called "legacy" carriers such as American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ) have not come under this degree of fire. Both AAL and DAL have multiples closer to 10 currently. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Although United Continental Holdings Inc (NYSE: UAL ) earnings weren't hurt by another public relations debacle, United stock just isn't a safe bet.
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Even so-called "legacy" carriers such as American Airlines Group Inc (NASDAQ: AAL ) and Delta Air Lines, Inc. (NYSE: DAL ) have not come under this degree of fire. Both AAL and DAL have multiples closer to 10 currently. However, given the UAL's performance in comparison to peers, this earnings beat is not enough reason to buy United stock, especially when you can get better stocks with way less risk.
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7090.0
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2018-04-18 00:00:00 UTC
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Why American Airlines Stock Surged Today
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-stock-surged-today-2018-04-18
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nan
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nan
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What happened
Shares of American Airlines (NASDAQ: AAL) jumped on Wednesday. While there was no company-specific news, a solid quarterly report from United Continental Holdings (NYSE: UAL) seems to have lit a fire under both stocks. This comes one week after both companies boosted their revenue forecasts for the first quarter. American Airlines stock was up about 4.4% at market close, while United Airlines stock had locked in a 4.8% gain.
So what
United reported first-quarter revenue of $9.03 billion, up 7.2% year over year and $30 million higher than the average analyst estimate. Adjusted net income came in at $0.50 per share, up from $0.42 per share in the prior-year period and $0.01 per share ahead of analyst expectations.
United also provided full-year guidance that was favorable relative to the average analyst estimate. The company expects adjusted earnings per share of between $7.00 and $8.50, compared to a $7.67 consensus estimate.
United's strong results and guidance were enough to convince investors that other airline stocks should be bid higher as well.
Now what
American Airlines is scheduled to report its own first-quarter results before the market opens on April 26. Analysts expect the company to report revenue of $10.42 billion, up 8.2% year over year, along with earnings of $0.72 per share. That's up from earnings of $0.61 per share during the first quarter of 2017.
Whether American Airlines stock can hold onto Wednesday's gains will depend on how its own results compare to expectations next week.
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Timothy Green 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What happened Shares of American Airlines (NASDAQ: AAL) jumped on Wednesday. While there was no company-specific news, a solid quarterly report from United Continental Holdings (NYSE: UAL) seems to have lit a fire under both stocks. United's strong results and guidance were enough to convince investors that other airline stocks should be bid higher as well.
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What happened Shares of American Airlines (NASDAQ: AAL) jumped on Wednesday. So what United reported first-quarter revenue of $9.03 billion, up 7.2% year over year and $30 million higher than the average analyst estimate. Analysts expect the company to report revenue of $10.42 billion, up 8.2% year over year, along with earnings of $0.72 per share.
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What happened Shares of American Airlines (NASDAQ: AAL) jumped on Wednesday. American Airlines stock was up about 4.4% at market close, while United Airlines stock had locked in a 4.8% gain. Whether American Airlines stock can hold onto Wednesday's gains will depend on how its own results compare to expectations next week.
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What happened Shares of American Airlines (NASDAQ: AAL) jumped on Wednesday. United's strong results and guidance were enough to convince investors that other airline stocks should be bid higher as well. That's up from earnings of $0.61 per share during the first quarter of 2017.
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7091.0
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2018-04-17 00:00:00 UTC
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Ericsson (ERIC) Q1 Earnings: What Lies Ahead for the Stock?
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AAL
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https://www.nasdaq.com/articles/ericsson-eric-q1-earnings%3A-what-lies-ahead-for-the-stock-2018-04-17
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nan
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nan
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EricssonERIC is scheduled to report first-quarter 2018 results before the opening bell on Apr 20. The company has a woeful earnings history, with consecutive colossal earnings misses. Last quarter, the company missed estimates for the eighth consecutive quarter, recording a massive negative surprise of 450%. Ericsson witnessed an average negative surprise of 552.5% for the trailing four quarters.
Let's see how things are shaping up for this announcement and whether Ericsson is set to witness yet another earnings miss.
Factors to Consider
The information and communications technology solutions provider is grappling with shrinking markets and stiff competition from other established players in the market. Moreover, slowdown in spending by wireless carriers severely hurt the company's financials over the past few quarters and is likely to affect the upcoming results.
Most of the company's troubles have stemmed from the drying up of investments by major telecom equipment makers across the world. The company's revenues and margins in the Networks and IT & Cloud segments continue to take a beating from adverse industry trends.
Further, Ericsson foresees sustained weakness in the market for radio access networks. Network equipment sales, particularly in North America and Europe, continue to contract. Europe and Latin America - the markets with the biggest impact - are likely to have an increasingly challenging investment environment in the quarters to come.
Soft mobile broadband demand and slowdown in emerging markets will continue to put a significant dent in Ericsson's performance. These factors will likely manifest in the company's sales in the to-be-reported quarter.
Despite these challenges, Ericsson remains the world's largest supplier of LTE technology, with significant market share and a large number of LTE networks worldwide. The company envisions healthy traction in its 4G portfolio and 5G readinesses. At the same time, Ericsson is continuing with steady investment in R&D, technology leadership and gross margin improvement. The company is trimming its workforce to reduce operating costs and improve bottom line.
Ericsson is seeking to seize business opportunities as operators shift toward 4G deployments and prepare ground for the forthcoming 5G revolution. The company plans to focus more intently on software sales and recurring business that complements its thriving Professional Services business in terms of "targeted growth" investments. Ericsson expects to be better-equipped to address the varied needs of its customer segments and tap new markets to foster growth.
Earnings Whispers
Our proven model does not conclusively show that Ericsson is likely to beat earnings this quarter as it does not possess the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below:
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and Zacks Consensus Estimate, is 0.00% with both pegged at a loss of 3 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Ericsson Price and EPS Surprise
Ericsson Price and EPS Surprise | Ericsson Quote
Zacks Rank: Ericcson has a Zacks Rank #3. Although this increases the predictive power of ESP, we need to have a positive ESP to make us confident about an earnings surprise.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.
Stocks to Consider
Here are other companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
American Airlines Group Inc. AAL has an Earnings ESP of +3.35% and Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .
BB&T Corporation BBT has an Earnings ESP of +1.63% and carries a Zacks Rank #3.
The Bank of New York Mellon Corporation BK has an Earnings ESP of +0.21% and carries a Zacks Rank of 3.
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American Airlines Group Inc. (AAL): Free Stock Analysis Report
BB&T Corporation (BBT): Free Stock Analysis Report
The Bank of New York Mellon Corporation (BK): Free Stock Analysis Report
Ericsson (ERIC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks to Consider Here are other companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter: American Airlines Group Inc. AAL has an Earnings ESP of +3.35% and Zacks Rank #3. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report BB&T Corporation (BBT): Free Stock Analysis Report The Bank of New York Mellon Corporation (BK): Free Stock Analysis Report Ericsson (ERIC): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, slowdown in spending by wireless carriers severely hurt the company's financials over the past few quarters and is likely to affect the upcoming results.
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Stocks to Consider Here are other companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter: American Airlines Group Inc. AAL has an Earnings ESP of +3.35% and Zacks Rank #3. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report BB&T Corporation (BBT): Free Stock Analysis Report The Bank of New York Mellon Corporation (BK): Free Stock Analysis Report Ericsson (ERIC): Free Stock Analysis Report To read this article on Zacks.com click here. Ericsson Price and EPS Surprise Ericsson Price and EPS Surprise | Ericsson Quote Zacks Rank: Ericcson has a Zacks Rank #3.
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Stocks to Consider Here are other companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter: American Airlines Group Inc. AAL has an Earnings ESP of +3.35% and Zacks Rank #3. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report BB&T Corporation (BBT): Free Stock Analysis Report The Bank of New York Mellon Corporation (BK): Free Stock Analysis Report Ericsson (ERIC): Free Stock Analysis Report To read this article on Zacks.com click here. Ericsson Price and EPS Surprise Ericsson Price and EPS Surprise | Ericsson Quote Zacks Rank: Ericcson has a Zacks Rank #3.
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Stocks to Consider Here are other companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter: American Airlines Group Inc. AAL has an Earnings ESP of +3.35% and Zacks Rank #3. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report BB&T Corporation (BBT): Free Stock Analysis Report The Bank of New York Mellon Corporation (BK): Free Stock Analysis Report Ericsson (ERIC): Free Stock Analysis Report To read this article on Zacks.com click here. Network equipment sales, particularly in North America and Europe, continue to contract.
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7092.0
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2018-04-17 00:00:00 UTC
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Noteworthy Tuesday Option Activity: AZO, BG, AAL
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AAL
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https://www.nasdaq.com/articles/noteworthy-tuesday-option-activity-azo-bg-aal-2018-04-17
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nan
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nan
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in AutoZone, Inc. (Symbol: AZO), where a total of 1,676 contracts have traded so far, representing approximately 167,600 underlying shares. That amounts to about 46.2% of AZO's average daily trading volume over the past month of 362,780 shares. Particularly high volume was seen for the $590 strike put option expiring May 18, 2018 , with 203 contracts trading so far today, representing approximately 20,300 underlying shares of AZO. Below is a chart showing AZO's trailing twelve month trading history, with the $590 strike highlighted in orange:
Bunge Ltd. (Symbol: BG) saw options trading volume of 5,337 contracts, representing approximately 533,700 underlying shares or approximately 46% of BG's average daily trading volume over the past month, of 1.2 million shares. Particularly high volume was seen for the $80 strike put option expiring April 20, 2018 , with 942 contracts trading so far today, representing approximately 94,200 underlying shares of BG. Below is a chart showing BG's trailing twelve month trading history, with the $80 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 22,282 contracts, representing approximately 2.2 million underlying shares or approximately 46% of AAL's average daily trading volume over the past month, of 4.8 million shares. Particularly high volume was seen for the $46 strike call option expiring April 20, 2018 , with 1,905 contracts trading so far today, representing approximately 190,500 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $46 strike highlighted in orange:
For the various different available expirations for AZO options , BG 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Particularly high volume was seen for the $46 strike call option expiring April 20, 2018 , with 1,905 contracts trading so far today, representing approximately 190,500 underlying shares of AAL. Below is a chart showing BG's trailing twelve month trading history, with the $80 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 22,282 contracts, representing approximately 2.2 million underlying shares or approximately 46% of AAL's average daily trading volume over the past month, of 4.8 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $46 strike highlighted in orange: For the various different available expirations for AZO options , BG options , or AAL options , visit StockOptionsChannel.com.
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Below is a chart showing BG's trailing twelve month trading history, with the $80 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 22,282 contracts, representing approximately 2.2 million underlying shares or approximately 46% of AAL's average daily trading volume over the past month, of 4.8 million shares. Particularly high volume was seen for the $46 strike call option expiring April 20, 2018 , with 1,905 contracts trading so far today, representing approximately 190,500 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $46 strike highlighted in orange: For the various different available expirations for AZO options , BG options , or AAL options , visit StockOptionsChannel.com.
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Below is a chart showing BG's trailing twelve month trading history, with the $80 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 22,282 contracts, representing approximately 2.2 million underlying shares or approximately 46% of AAL's average daily trading volume over the past month, of 4.8 million shares. Particularly high volume was seen for the $46 strike call option expiring April 20, 2018 , with 1,905 contracts trading so far today, representing approximately 190,500 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $46 strike highlighted in orange: For the various different available expirations for AZO options , BG options , or AAL options , visit StockOptionsChannel.com.
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Below is a chart showing BG's trailing twelve month trading history, with the $80 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 22,282 contracts, representing approximately 2.2 million underlying shares or approximately 46% of AAL's average daily trading volume over the past month, of 4.8 million shares. Particularly high volume was seen for the $46 strike call option expiring April 20, 2018 , with 1,905 contracts trading so far today, representing approximately 190,500 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $46 strike highlighted in orange: For the various different available expirations for AZO options , BG options , or AAL options , visit StockOptionsChannel.com.
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7093.0
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2018-04-16 00:00:00 UTC
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Will Kansas City Southern's (KSU) Q1 Earnings be a Let Down?
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AAL
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https://www.nasdaq.com/articles/will-kansas-city-southerns-ksu-q1-earnings-be-a-let-down-2018-04-16
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nan
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nan
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Kansas City SouthernKSU is scheduled to report first-quarter 2018 results on Apr 20, before the market opens.
Last quarter, the company delivered a positive earnings surprise of 1.5%. Moreover, the company has an impressive earnings history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters with an average beat of 2.3%.
However, things do not look up for the company this quarter. As a result, the stock has seen the Zacks Consensus Estimate for first-quarter earnings being revised 3.5% downward in the last 60 days.
Factors at Play
High operating expenses are expected to hurt the company's bottom line in the first quarter as was the case previously.
The uncertainty over the North American Free Trade Agreement (NAFTA) might also hamper results in the to-be-reported quarter. This is because the railroad operator draws a significant portion of its revenues from U.S.-Mexico shipments.
Kansas City Southern's trailing 12-month return on equity (ROE) undercuts its growth potential. The company's ROE of 12.1% compares unfavorably with its industry's 20.4% ROE and the S&P 500 index's 16% tally.
However, overall volume growth is anticipated to aid results in the first quarter. Additionally, the growth of intermodal volume augurs well for the company and is anticipated to drive intermodal revenues.
The new tax law should also boost profits for the company, leading to bottom-line growth in the first quarter. Its efforts to reward shareholders through dividend payments and buybacks are a further positive.
Earnings Whispers
Our proven model does not conclusively show that Kansas City Southern is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a solid Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here as elaborated below.
Zacks ESP : Kansas City Southern has an Earnings ESP of -3.02% as the Most Accurate estimate stands at $1.33 per share, lower than the Zacks Consensus Estimate of $1.37. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : Kansas City Southern carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company's negative ESP leaves surprise prediction inconclusive.
We caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Kansas City Southern Price and EPS Surprise
Kansas City Southern Price and EPS Surprise | Kansas City Southern Quote
Stocks to Consider
Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around.
American Airlines has an Earnings ESP of +3.35% and a Zacks Rank of 3. The company is scheduled to announce first-quarter results on Apr 26.
JetBlue Airways is a #3 Ranked player and has an Earnings ESP of +4.28%. The company is slated to release first-quarter numbers on Apr 24. You can see the complete list of today's Zacks #1 Rank stocks here .
Expeditors is a #3 Ranked player and has an Earnings ESP of +2.09%. The company will report first-quarter earnings figures on May 8.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Kansas City Southern (KSU): Free Stock Analysis Report
Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Kansas City Southern Price and EPS Surprise Kansas City Southern Price and EPS Surprise | Kansas City Southern Quote Stocks to Consider Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, the company has an impressive earnings history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters with an average beat of 2.3%.
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Kansas City Southern Price and EPS Surprise Kansas City Southern Price and EPS Surprise | Kansas City Southern Quote Stocks to Consider Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Kansas City Southern Price and EPS Surprise Kansas City Southern Price and EPS Surprise | Kansas City Southern Quote Stocks to Consider Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks ESP : Kansas City Southern has an Earnings ESP of -3.02% as the Most Accurate estimate stands at $1.33 per share, lower than the Zacks Consensus Estimate of $1.37.
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Kansas City Southern Price and EPS Surprise Kansas City Southern Price and EPS Surprise | Kansas City Southern Quote Stocks to Consider Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report To read this article on Zacks.com click here. Last quarter, the company delivered a positive earnings surprise of 1.5%.
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7094.0
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2018-04-16 00:00:00 UTC
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Canadian Pacific (CP) Q1 Earnings: What's in the Cards?
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AAL
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https://www.nasdaq.com/articles/canadian-pacific-cp-q1-earnings%3A-whats-in-the-cards-2018-04-16
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nan
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nan
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Canadian Pacific Railway LimitedCP is scheduled to report first-quarter 2018 results on Apr 18, after the closing bell.
Last quarter, the company reported a negative earnings surprise of 1.17%. Though both earnings and revenues improved year over year, the same fell short of the Zacks Consensus Estimate.
Let's see, how things shape up this earnings season.
Factors Likely at Play
Declining revenues at the Grain, Automotive plus Sulphur and Fertilizer segments might hurt the top line in the first quarter like the previous one.
Additionally, the company's network fluidity issues might affect its customer base and hamper results in the to-be-reported quarter.
The company's high debt-to-equity ratio further adds to its woes. It currently has a long-term debt-to-equity (expressed as a percentage) of 115.2, comparing unfavorably with the figure of 66.3 for its industry as well as the S&P 500 index's measure of 80.8.
However, the company's cost-cutting strategy to drive bottom-line growth is impressive and is anticipated to boost results in the first quarter. This move is also likely to improve the operating ratio. Moreover, high freight revenues are expected to aid results in the soon-to-be-reported period.
Earnings Whispers
Our proven model does not conclusively show that Canadian Pacific is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here as highlighted below.
Zacks ESP : Canadian Pacific has an Earnings ESP of -2.79% as the Most Accurate estimate is pegged at $2.10 per share while the Zacks Consensus Estimate stands higher at $2.16. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : Canadian Pacific carries a Rank #3, which increases the predictive power of ESP. However, the company needs a positive ESP as well to be confident about an earnings surprise. Hence this combination leaves surprise prediction inconclusive.
We caution against Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the stock is witnessing negative estimate revisions.
Canadian Pacific Railway Limited Price and EPS Surprise
Canadian Pacific Railway Limited Price and EPS Surprise | Canadian Pacific Railway Limited Quote
Stocks to Consider
Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around.
American Airlines has an Earnings ESP of +3.35% and a Zacks Rank of 3. The company is scheduled to report first-quarter results on Apr 26.
JetBlue Airways is a #3 Ranked player and has an Earnings ESP of +4.28%. The company is slated to release first-quarter numbers on Apr 24. You can see the complete list of today's Zacks #1 Rank stocks here .
Expeditors is a Zacks #3 Ranked player and has an Earnings ESP of +2.09%. The company will announce first-quarter earnings on May 8.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Canadian Pacific Railway Limited (CP): Free Stock Analysis Report
Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Canadian Pacific Railway Limited Price and EPS Surprise Canadian Pacific Railway Limited Price and EPS Surprise | Canadian Pacific Railway Limited Quote Stocks to Consider Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Canadian Pacific Railway Limited (CP): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report To read this article on Zacks.com click here. Factors Likely at Play Declining revenues at the Grain, Automotive plus Sulphur and Fertilizer segments might hurt the top line in the first quarter like the previous one.
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Canadian Pacific Railway Limited Price and EPS Surprise Canadian Pacific Railway Limited Price and EPS Surprise | Canadian Pacific Railway Limited Quote Stocks to Consider Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Canadian Pacific Railway Limited (CP): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Canadian Pacific Railway Limited Price and EPS Surprise Canadian Pacific Railway Limited Price and EPS Surprise | Canadian Pacific Railway Limited Quote Stocks to Consider Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Canadian Pacific Railway Limited (CP): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks ESP : Canadian Pacific has an Earnings ESP of -2.79% as the Most Accurate estimate is pegged at $2.10 per share while the Zacks Consensus Estimate stands higher at $2.16.
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Canadian Pacific Railway Limited Price and EPS Surprise Canadian Pacific Railway Limited Price and EPS Surprise | Canadian Pacific Railway Limited Quote Stocks to Consider Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Expeditors International of Washington, Inc. EXPD as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Canadian Pacific Railway Limited (CP): Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report To read this article on Zacks.com click here. Last quarter, the company reported a negative earnings surprise of 1.17%.
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7095.0
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2018-04-15 00:00:00 UTC
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The Worst Airlines in the U.S. Are Getting a Lot Better
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AAL
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https://www.nasdaq.com/articles/worst-airlines-us-are-getting-lot-better-2018-04-15
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nan
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nan
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Most air travelers would agree that Spirit Airlines (NYSE: SAVE) and Frontier Airlines are the worst airlines in the U.S. in terms of service quality. The two ultra-low-cost carriers offer rock-bottom fares, but as the saying goes, you get what you pay for.
However, executives at Spirit and Frontier are trying to change the public's negative perception of their companies. The recently released 2018 Airline Quality Rating report shows that they have made significant progress in improving their operations during the past year. In the long run, smoother operations at these ultra-low-cost carriers could be bad news for American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) .
Poor reputations are well-deserved
The annual Airline Quality Rating study scores airlines based on four objective criteria related to customer service. These are: (1) on-time performance, (2) the rate of involuntary denied boardings (i.e., passengers getting "bumped" from flights), (3) the frequency with which checked bags are lost or delayed, and (4) the percentage of customers who file official complaints with the U.S. Department of Transportation.
Airlines' performances in these four categories are aggregated into a single score. Each score is a negative number, with results closer to zero representing better performance.
The objective metrics used in the annual Airline Quality Rating reports show that Spirit Airlines and Frontier Airlines have earned their poor reputations. In 2015, Spirit Airlines was last in the industry with a score of negative 3.18. Frontier Airlines' score was negative 2.60. No other carrier scored worse than negative 1.73.
In 2016, both ultra-low-cost carriers improved , with Frontier Airlines scoring negative 2.24 and Spirit Airlines vaulting ahead of it with a score of negative 2.01. However, the goalposts moved. The next-worst score was negative 1.36, meaning that Frontier and Spirit remained far behind all of their rivals.
Spirit and Frontier made further progress last year
The 2018 Airline Quality Rating report, which came out last week, showed that Spirit Airlines and Frontier Airlines remained at the back of the pack. However, both carriers improved their performances significantly. Spirit Airlines scored negative 1.66, while Frontier improved its score all the way to negative 1.23, putting it within striking distance of regional airline ExpressJet at negative 1.06 and American Airlines at negative 1.03.
A look at the individual metrics reveals that on-time performance improved at both Frontier and Spirit last year, bucking the trend for the rest of the industry. In terms of mishandled baggage, Spirit Airlines was actually the best in the business, while Frontier was near the middle of the pack.
The main reason both ultra-low-cost carriers still rank at the bottom overall is that they have a much higher rate of official complaints -- especially Spirit. This is largely due to the nature of their business models: Their extensive fees for "optional services" can irritate new customers who don't understand what is (and is not) included in the base fare. Spirit Airlines and Frontier Airlines also tend to bump passengers more frequently than other airlines.
The quality improvements at Frontier Airlines and Spirit Airlines were even more obvious toward the end of 2017. For example, both carriers scored better than American Airlines in the month of December.
Why it matters
Delta Air Lines is routinely near the top of the airline industry in terms of service. This has helped it attract customers without matching the lowest fare on every route. By contrast, United Continental and American Airlines have been slightly below average in recent years. As a result, they are increasingly relying on low fares to keep their planes full.
Indeed, in the past few years, American and United have started to aggressively match the prices of rivals like Frontier Airlines and Spirit Airlines. Executives at United have been particularly vocal in promoting this strategy. Last year, CFO Andrew Levy and President Scott Kirby both commented that nobody likes flying on Frontier or Spirit. The implication was that matching ultra-low-cost fares would undermine those carriers' whole reason for existence.
However, the recent quality improvements at Frontier Airlines and Spirit Airlines will make it that much harder to defeat these pesky rivals. To be fair, American Airlines and United Continental are also improving their quality scores, but Frontier and Spirit may be good enough for many travelers at this point. Meanwhile, price-matching has hurt profitability at both American and United just as much as it has hurt the ultra-low-cost carriers.
Spirit Airlines and Frontier Airlines are never going to provide a luxurious experience. But if they continue to get better at running on time and offering courteous service, it will be virtually impossible for rivals like American Airlines and United Continental to stop their growth.
10 stocks we like better than Spirit Airlines
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Adam Levine-Weinberg owns shares of Delta Air Lines and Spirit Airlines. The Motley Fool owns shares of and recommends Spirit 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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In the long run, smoother operations at these ultra-low-cost carriers could be bad news for American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) . These are: (1) on-time performance, (2) the rate of involuntary denied boardings (i.e., passengers getting "bumped" from flights), (3) the frequency with which checked bags are lost or delayed, and (4) the percentage of customers who file official complaints with the U.S. Department of Transportation. But if they continue to get better at running on time and offering courteous service, it will be virtually impossible for rivals like American Airlines and United Continental to stop their growth.
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In the long run, smoother operations at these ultra-low-cost carriers could be bad news for American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) . The recently released 2018 Airline Quality Rating report shows that they have made significant progress in improving their operations during the past year. The objective metrics used in the annual Airline Quality Rating reports show that Spirit Airlines and Frontier Airlines have earned their poor reputations.
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In the long run, smoother operations at these ultra-low-cost carriers could be bad news for American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) . In 2016, both ultra-low-cost carriers improved , with Frontier Airlines scoring negative 2.24 and Spirit Airlines vaulting ahead of it with a score of negative 2.01. Spirit and Frontier made further progress last year The 2018 Airline Quality Rating report, which came out last week, showed that Spirit Airlines and Frontier Airlines remained at the back of the pack.
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In the long run, smoother operations at these ultra-low-cost carriers could be bad news for American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) . In 2015, Spirit Airlines was last in the industry with a score of negative 3.18. Frontier Airlines' score was negative 2.60.
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7096.0
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2018-04-13 00:00:00 UTC
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United Continental's (UAL) Q1 Earnings: A Beat in the Cards?
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AAL
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https://www.nasdaq.com/articles/united-continentals-ual-q1-earnings%3A-a-beat-in-the-cards-2018-04-13
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nan
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nan
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United Continental Holdings, Inc.UAL is slated to release its first-quarter 2018 results, after market close on Apr 17.
In the fourth quarter of 2017, the company delivered a positive earnings surprise of 4.5%. However, the bottom line contracted 21.4% on a year-over-year basis due to high costs. Meanwhile, the top line increased 4.3% year over year and also surpassed the Zacks Consensus Estimate. The metric was boosted by higher passenger and cargo revenues.
We expect this S&P 500 company to outperform on the bottom-line front in the quarter-to-be reported as well. Strong demand for air travel is likely to aid results. The stock has witnessed the Zacks Consensus Estimate for first-quarter earnings double over the last 30 days, reflecting optimism surrounding the stock.
Given this backdrop, let's delve deeper to unearth the factors that are likely to influence the company's first-quarter results:
We expect United Continental's top line to be driven by higher passenger revenues owing to strong demand for air travel. Buoyed by the improved scenario, the company issued a bullish outlook with respect to consolidated passenger revenue per available seat miles (PRASM: a key measure of unit revenue) for the first quarter of 2018. PRASM is projected to increase 2.7% year over year in the quarter. The Zacks Consensus Estimate for first-quarter PRASM (consolidated) is pegged at 12.46 cents, higher than 12.23 cents in the fourth quarter of 2017.
Pre-tax margin (adjusted) is anticipated to expand around 2%. Additionally, capacity is estimated to grow 3.6% in the soon-to-be-reported.
We note that other airline players like American Airlines Group Inc. AAL and JetBlue Airways Corporation JBLU have also issued improved projections with respect to unit revenues for the first quarter of 2018. Apart from the strong demand for air travel, the unit revenue-related scenario is being aided by lower completion factor owing to increase in flight cancellations in the quarter due to foul weather conditions. Lower completion factor implies higher flight cancellations and a reduction in capacity. This, in turn, leads to increase in unit revenues.
However, we expect United Continental's bottom-line growth to be restricted by increased costs (fuel and labor). Fuel price is forecasted to be $2.11 per gallon, in line with the Zacks Consensus Estimate. The projected figure is much higher than the $1.91 per gallon, reported by the company in the fourth quarter of 2017.
Also, oil prices have been on an uptrend lately. In the January-March period, the same was up approximately 8%. As fuel costs account for a significant chunk of expenditures for any airline company, it can easily be concluded that high fuel costs will limit bottom-line growth of carriers in the first quarter and United Continental is no exception.
Apart from high fuel costs, expenses on the labor front are likely to weigh on the bottom line of this Chicago-based carrier. The company expects unit costs (excluding fuel, profit sharing & third party business costs) to inch up 0.6% in the soon-to-be-reported quarter.
United Continental Holdings, Inc. Price and EPS Surprise
United Continental Holdings, Inc. Price and EPS Surprise | United Continental Holdings, Inc. Quote
What Does Our Model Say
Our quantitative model shows that United Continental is likely to beat earnings because it has the perfect combination of two key ingredients.
Zacks ESP : United Continental has an Earnings ESP of +7.00% as the Most Accurate estimate is pegged at a cent above the Zacks Consensus Estimate of 26 cents per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : United Continental carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates. You can see the complete list of today's Zacks #1 Rank stocks here.
Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The combination of United Continental's Zacks Rank #3 and a positive ESP makes us reasonably confident of an earnings beat.
The Zacks Consensus Estimate for first-quarter earnings moved south 35% on a year-over-year basis, mainly due to higher fuel costs. The same for sales is projected at $8.97 billion, up 6.5% year over year on the back of unit revenue growth.
Another Stock That Warrants a Look
Investors interested in the Zacks Airline industry may also consider Hawaiian Holdings, Inc. HA as our model shows it possesses the right combination of elements to post an earnings beat in its next release.
Hawaiian Holdings has an Earnings ESP of +2.89% and a Zacks Rank #3. The company will release first-quarter 2018 results on Apr 24.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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We note that other airline players like American Airlines Group Inc. AAL and JetBlue Airways Corporation JBLU have also issued improved projections with respect to unit revenues for the first quarter of 2018. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Given this backdrop, let's delve deeper to unearth the factors that are likely to influence the company's first-quarter results: We expect United Continental's top line to be driven by higher passenger revenues owing to strong demand for air travel.
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We note that other airline players like American Airlines Group Inc. AAL and JetBlue Airways Corporation JBLU have also issued improved projections with respect to unit revenues for the first quarter of 2018. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. United Continental Holdings, Inc. Price and EPS Surprise United Continental Holdings, Inc. Price and EPS Surprise | United Continental Holdings, Inc. Quote What Does Our Model Say Our quantitative model shows that United Continental is likely to beat earnings because it has the perfect combination of two key ingredients.
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Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We note that other airline players like American Airlines Group Inc. AAL and JetBlue Airways Corporation JBLU have also issued improved projections with respect to unit revenues for the first quarter of 2018. United Continental Holdings, Inc. Price and EPS Surprise United Continental Holdings, Inc. Price and EPS Surprise | United Continental Holdings, Inc. Quote What Does Our Model Say Our quantitative model shows that United Continental is likely to beat earnings because it has the perfect combination of two key ingredients.
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We note that other airline players like American Airlines Group Inc. AAL and JetBlue Airways Corporation JBLU have also issued improved projections with respect to unit revenues for the first quarter of 2018. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The stock has witnessed the Zacks Consensus Estimate for first-quarter earnings double over the last 30 days, reflecting optimism surrounding the stock.
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7097.0
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2018-04-12 00:00:00 UTC
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CSX to Report Q1 Earnings: What's in Store for the Stock?
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AAL
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https://www.nasdaq.com/articles/csx-to-report-q1-earnings%3A-whats-in-store-for-the-stock-2018-04-12
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nan
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CSX CorporationCSX is slated to report first-quarter 2018 results on Apr 17, after the market close.
Last quarter, the company delivered a positive earnings surprise of 14.3%. Moreover, the company has an impressive earnings history, with the metric surpassing the Zacks Consensus Estimate in three of the trailing four quarters with an average beat of 10.3%.
However, the scenario pertaining to this quarter does not seem too bright. This is evident from the Zacks Consensus Estimate for first-quarter earnings being revised 2.9% downward in the last 60 days.
Factors at Play
Weakness in the automotive sector poses a major challenge to CSX. This is because the company draws a major portion of revenues from this sector. Hence, sluggish automotive revenues might hurt the top line in the first quarter.
Additionally, declining coal production in the current year is likely to hamper first-quarter results. A drop in U.S. coal exports coupled with the decline in usage of coal for electricity generation in the United States are hurting production of the commodity. The Zacks Consensus Estimate for coal revenues in the to-be-reported quarter is pegged at $529 million, below $541 million reported in the previous quarter.
The company's high-debt levels further add to its woes. This is indicated by its current long-term debt-to-equity (expressed as a percentage) ratio of 80.1, which compares unfavorably with the industry's figure of 66.3%.
However, the Precision Scheduled Railroading system, implemented by the company's former CEO E. Hunter Harrison is anticipated to boost results in the period to be reported. The new model is likely to drive the top line on the back of volume and pricing gains from the merchandise and intermodal segments.
The new tax law should also boost profits for the company, leading to bottom-line growth in the first quarter.
The company's efforts to reward shareholders through dividend payments and buybacks are also impressive. In February, the company announced a 10% dividend hike. In light of the new tax law, we expect an upswing in such shareholder-friendly moves, resulting from sums of huge savings owing to the reduced tax rate.
Growth of the intermodal sector is also anticipated to aid the top line this earnings season. The Zacks Consensus Estimate for first-quarter intermodal revenues stands at $448 million, above $434 million, recorded a year ago.
Earnings Whispers
Our proven model does not conclusively show that CSX is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here as elaborated below.
Zacks ESP : CSX has an Earnings ESP of -1.71%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : CSX carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company's negative ESP leaves surprise prediction inconclusive.
We caution against all Sell-rated stocks (4 or 5) going into an earnings announcement, especially when the company is witnessing negative estimate revisions.
CSX Corporation Price and EPS Surprise
CSX Corporation Price and EPS Surprise | CSX Corporation Quote
Stocks to Consider
Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Alaska Air Group, Inc. ALK as these possess the right combination of elements to deliver an earnings beat this time around.
American Airlines has an Earnings ESP of +17.82% and a Zacks Rank of 3. The company is expected to report first-quarter results on Apr 26. You can see the complete list of today's Zacks #1 Rank stocks here .
JetBlue Airways is a #3 Ranked player and has an Earnings ESP of +2.00%. The company is slated to release first-quarter numbers on Apr 24.
Alaska Air Group has an Earnings ESP of +4.55% and is a Zacks #3 Ranked player. The company will announce first-quarter financial figures on Apr 23.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
CSX Corporation (CSX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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CSX Corporation Price and EPS Surprise CSX Corporation Price and EPS Surprise | CSX Corporation Quote Stocks to Consider Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Alaska Air Group, Inc. ALK as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report CSX Corporation (CSX): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, the company has an impressive earnings history, with the metric surpassing the Zacks Consensus Estimate in three of the trailing four quarters with an average beat of 10.3%.
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CSX Corporation Price and EPS Surprise CSX Corporation Price and EPS Surprise | CSX Corporation Quote Stocks to Consider Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Alaska Air Group, Inc. ALK as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report CSX Corporation (CSX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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CSX Corporation Price and EPS Surprise CSX Corporation Price and EPS Surprise | CSX Corporation Quote Stocks to Consider Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Alaska Air Group, Inc. ALK as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report CSX Corporation (CSX): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, the company has an impressive earnings history, with the metric surpassing the Zacks Consensus Estimate in three of the trailing four quarters with an average beat of 10.3%.
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CSX Corporation Price and EPS Surprise CSX Corporation Price and EPS Surprise | CSX Corporation Quote Stocks to Consider Investors interested in the broader Transportation sector may consider stocks like American Airlines Group Inc. AAL , JetBlue Airways Corporation JBLU and Alaska Air Group, Inc. ALK as these possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report CSX Corporation (CSX): Free Stock Analysis Report To read this article on Zacks.com click here. The Zacks Consensus Estimate for coal revenues in the to-be-reported quarter is pegged at $529 million, below $541 million reported in the previous quarter.
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7098.0
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2018-04-12 00:00:00 UTC
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Strong Demand Aids JetBlue's March Traffic, Bullish Q1 View
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AAL
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https://www.nasdaq.com/articles/strong-demand-aids-jetblues-march-traffic-bullish-q1-view-2018-04-12
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nan
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nan
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Joining the likes of Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL and United Continental Holdings, Inc. UAL , the low-cost carrier JetBlue Airways CorporationJBLU issued an upbeat view on unit revenues for first-quarter 2018.
JetBlue is scheduled to unveil its first-quarter results on Apr 24. The company issued the bullish forecast while releasing its March traffic report.
Robust Air Travel Demand Boosts Traffic
Traffic, measured in revenue passenger miles (RPMs), improved 7.3% year over year to 4.38 billion. On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) also expanded 3.3% to 4.92 billion.
With traffic growth outpacing capacity expansion, load factor (percentage of seats filled with passengers) registered a rise of 330 basis points year over year to 89%. Strong demand for air travel contributed to the increase in load factor. In fact, this Long Island City, NY-based carrier transported 3.65 billion passengers in March, reflecting an improvement of 4.7% on a year-over-year basis.
This Zacks Rank #3 (Hold) company registered a completion factor (system wide) of 93.6% in the same month, with 64.2% flights on schedule. Notably, completion factor decreased from the February reading of 98.4% as many flights were cancelled in March due to weather-related disruptions. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Upbeat Q1 Forecast
JetBlue now expects revenue per available seat mile (RASM: a key measure of unit revenues) to increase approximately 6.1% year over year (previous guidance anticipated the metric to grow in the 3.5-5.5% band). Strong demand for air travel contributed to the bullish view. The metric was boosted to the tune of 2.5 points owing to the timing of Easter in March.
Additionally, lower completion factor due to the increase in flight cancellations boosted first-quarter unit revenues to the tune of approximately one point. Lower completion factor implies higher flight cancellations and a reduction in capacity. This, in turn, leads to increase in unit revenues.
Consequently, JetBlue slashed its projection on capacity growth to 3.3% from the previously anticipated 3.5-5.5%. The trimming of the capacity growth projection is encouraging.
Price Performance
The above-mentioned bullish projections failed to please investors. This is quite evident from the 0.2% decline in the JetBlue stock's closing price on Apr 11. The main reason behind the downside was the spike in oil prices . On Apr 11, U.S. crude prices reached the highest level of $66.82 a barrel since December 2014. Mounting tensions in the Middle East and the resultant fears of supplies being disrupted contributed to the upsurge.
We note that high oil prices do not bode well for companies in the airline space as fuel costs account for a significant chunk of their expenditures.
In fact, not only yesterday, oil prices have been on an uptrend lately and were up approximately 8% in the January-March period. Given the inversely proportional relation between oil prices and airline stocks, this increase in crude prices is expected to hurt results for carriers, including JetBlue in the soon-to-be-reported quarter.
Furthermore, JetBlue has not had a healthy run on the bourse lately, with its stock price declining 9.1% in the January-March period.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Joining the likes of Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL and United Continental Holdings, Inc. UAL , the low-cost carrier JetBlue Airways CorporationJBLU issued an upbeat view on unit revenues for first-quarter 2018. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, this Long Island City, NY-based carrier transported 3.65 billion passengers in March, reflecting an improvement of 4.7% on a year-over-year basis.
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Joining the likes of Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL and United Continental Holdings, Inc. UAL , the low-cost carrier JetBlue Airways CorporationJBLU issued an upbeat view on unit revenues for first-quarter 2018. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Robust Air Travel Demand Boosts Traffic Traffic, measured in revenue passenger miles (RPMs), improved 7.3% year over year to 4.38 billion.
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Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Joining the likes of Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL and United Continental Holdings, Inc. UAL , the low-cost carrier JetBlue Airways CorporationJBLU issued an upbeat view on unit revenues for first-quarter 2018. Upbeat Q1 Forecast JetBlue now expects revenue per available seat mile (RASM: a key measure of unit revenues) to increase approximately 6.1% year over year (previous guidance anticipated the metric to grow in the 3.5-5.5% band).
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Joining the likes of Delta Air Lines, Inc. DAL , American Airlines Group Inc. AAL and United Continental Holdings, Inc. UAL , the low-cost carrier JetBlue Airways CorporationJBLU issued an upbeat view on unit revenues for first-quarter 2018. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Strong demand for air travel contributed to the bullish view.
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7099.0
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2018-04-11 00:00:00 UTC
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Will High Costs Weigh on J.B. Hunt's (JBHT) Q1 Earnings?
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AAL
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https://www.nasdaq.com/articles/will-high-costs-weigh-on-j.b.-hunts-jbht-q1-earnings-2018-04-11
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nan
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nan
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J.B. Hunt Transport Services, Inc . JBHT is scheduled to release first-quarter 2018 results on Apr 16.
Last quarter, the company delivered a positive earnings surprise of 0.97%. It posted better-than-expected earnings and revenues in the fourth quarter of 2017. Moreover, both the top and bottom line improved substantially year over year.
However, things do not look up for the company in the to-be-reported quarter. Moreover, shares of the company have underperformed the industry in the January-March period. While the stock has gained 1.9%, the industry has increased 2.9%.
Factors at Play
J.B. Hunt has been struggling with shortage of drivers for quite some time. The company's bottom line in the first quarter is likely to be hurt by higher operating expenses due to increased driver wages among other factors.
The company is highly leveraged, which further adds to its woes. This is evident from the current ratio of its long-term debt-to-equity (expressed as a percentage) of 59. The figure compares unfavorably with its industry's average of 15.5.
However, the new tax law is a big boon to the company. Huge savings from the reduced tax rate are anticipated to boost cash flow, which in turn should aid the bottom line.
Expanded volume at the company's primary division of intermodal is expected to aid results in the quarter to be reported.
The company's efforts to reward shareholders through dividend payments and share repurchases are also impressive. In January, J.B. Hunt raised its quarterly dividend to 24 cents per share, representing an increase of 4.3% over the previous payout.
Earnings Whispers
Our proven model does not conclusively show that J.B. Hunt is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as elaborated below.
Zacks ESP : J.B. Hunt has an Earnings ESP of -0.23%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : J.B. Hunt has a Zacks Rank #3, which increases the predictive power of ESP. However, a company needs positive ESP as well to be confident about an earnings beat. Hence, this combination leaves our surprise prediction inconclusive.
We caution against all Sell-rated stocks (4 or 5) going into an earnings announcement, especially when the company is witnessing negative estimate revisions.
J.B. Hunt Transport Services, Inc. Price and EPS Surprise
J.B. Hunt Transport Services, Inc. Price and EPS Surprise | J.B. Hunt Transport Services, Inc. Quote
Stocks to Consider
Investors interested in the broader Transportation sector may consider American Airlines Group Inc. AAL , Allegiant Travel Company ALGT and JetBlue Airways Corporation JBLU as these stocks possess the right combination of elements to deliver an earnings beat this time around.
American Airlines has an Earnings ESP of +17.00% and a Zacks Rank of 3. The company is expected to report first-quarter results on Apr 26. You can see the complete list of today's Zacks #1 Rank stocks here .
Allegiant Travel has an Earnings ESP of +1.11% and is a Zacks #3 Ranked player. The company is scheduled to announce first-quarter earnings on Apr 25.
JetBlue is also a #3 Ranked player and has an Earnings ESP of +1.73%. The company is slated to release first-quarter numbers on Apr 24.
5 Medical Stocks to Buy Now
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New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
Allegiant Travel Company (ALGT): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
J.B. Hunt Transport Services, Inc. (JBHT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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J.B. Hunt Transport Services, Inc. Price and EPS Surprise J.B. Hunt Transport Services, Inc. Price and EPS Surprise | J.B. Hunt Transport Services, Inc. Quote Stocks to Consider Investors interested in the broader Transportation sector may consider American Airlines Group Inc. AAL , Allegiant Travel Company ALGT and JetBlue Airways Corporation JBLU as these stocks possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report J.B. Hunt Transport Services, Inc. (JBHT): Free Stock Analysis Report To read this article on Zacks.com click here. The company's bottom line in the first quarter is likely to be hurt by higher operating expenses due to increased driver wages among other factors.
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J.B. Hunt Transport Services, Inc. Price and EPS Surprise J.B. Hunt Transport Services, Inc. Price and EPS Surprise | J.B. Hunt Transport Services, Inc. Quote Stocks to Consider Investors interested in the broader Transportation sector may consider American Airlines Group Inc. AAL , Allegiant Travel Company ALGT and JetBlue Airways Corporation JBLU as these stocks possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report J.B. Hunt Transport Services, Inc. (JBHT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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J.B. Hunt Transport Services, Inc. Price and EPS Surprise J.B. Hunt Transport Services, Inc. Price and EPS Surprise | J.B. Hunt Transport Services, Inc. Quote Stocks to Consider Investors interested in the broader Transportation sector may consider American Airlines Group Inc. AAL , Allegiant Travel Company ALGT and JetBlue Airways Corporation JBLU as these stocks possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report J.B. Hunt Transport Services, Inc. (JBHT): Free Stock Analysis Report To read this article on Zacks.com click here. This is because a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
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J.B. Hunt Transport Services, Inc. Price and EPS Surprise J.B. Hunt Transport Services, Inc. Price and EPS Surprise | J.B. Hunt Transport Services, Inc. Quote Stocks to Consider Investors interested in the broader Transportation sector may consider American Airlines Group Inc. AAL , Allegiant Travel Company ALGT and JetBlue Airways Corporation JBLU as these stocks possess the right combination of elements to deliver an earnings beat this time around. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report J.B. Hunt Transport Services, Inc. (JBHT): Free Stock Analysis Report To read this article on Zacks.com click here. Last quarter, the company delivered a positive earnings surprise of 0.97%.
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