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7400.0
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2017-07-28 00:00:00 UTC
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Barnett & Company, Inc. Buys Goldman Sachs BDC Inc, Ladder Capital Corp, Murphy USA Inc, ...
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AAL
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https://www.nasdaq.com/articles/barnett-company-inc-buys-goldman-sachs-bdc-inc-ladder-capital-corp-murphy-usa-inc-2017-07
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Barnett & Company, Inc.
New Purchases: MUSA , ETP , NMPRG , BSCJ, TPH, MDY, FRC, WY, PINC, FB,
Added Positions:GSBD, LADR, SRC, TRTN, CWI, MIC, SCHE, RHP, SUM, WGO,
Reduced Positions:BSCH, VZ, SUI, GM, TGT, KMB, HEDJ, SCHZ, KOP, PSEC,
Sold Out:FSC, 4ETA, AXP, M, AGG, SUN, T, SYY, GLQ, MDLZ,
For the details of Barnett & Company, Inc.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Barnett+%26+Company%2C+Inc.
These are the top 5 holdings of Barnett & Company, Inc.
General Motors Co ( GM ) - 202,908 shares, 3.51% of the total portfolio. Shares reduced by 6.64%
CVS Health Corp ( CVS ) - 74,102 shares, 2.95% of the total portfolio. Shares added by 0.58%
American Airlines Group Inc ( AAL ) - 98,763 shares, 2.46% of the total portfolio. Shares reduced by 1.29%
Thermo Fisher Scientific Inc ( TMO ) - 27,231 shares, 2.35% of the total portfolio. Shares reduced by 2.03%
Canadian National Railway Co ( CNI ) - 56,664 shares, 2.27% of the total portfolio. Shares reduced by 1.1%
New Purchase: Murphy USA Inc (MUSA)
Barnett & Company, Inc. initiated holdings in Murphy USA Inc. The purchase prices were between $65 and $74.49, with an estimated average price of $69.94. The stock is now traded at around $75.99. The impact to the portfolio due to this purchase was 0.84%. The holdings were 22,875 shares as of 2017-06-30.
New Purchase: Energy Transfer Partners LP (ETP)
Barnett & Company, Inc. initiated holdings in Energy Transfer Partners LP. The purchase prices were between $18.46 and $24.35, with an estimated average price of $22.29. The stock is now traded at around $20.42. The impact to the portfolio due to this purchase was 0.53%. The holdings were 52,113 shares as of 2017-06-30.
New Purchase: Navios Maritime Holdings Inc (NMPRG)
Barnett & Company, Inc. initiated holdings in Navios Maritime Holdings Inc. The purchase prices were between $15.71 and $17.98, with an estimated average price of $17.01. The stock is now traded at around $17.24. The impact to the portfolio due to this purchase was 0.25%. The holdings were 32,500 shares as of 2017-06-30.
New Purchase: TRI Pointe Group Inc (TPH)
Barnett & Company, Inc. initiated holdings in TRI Pointe Group Inc. The purchase prices were between $12.09 and $13.06, with an estimated average price of $12.46. The stock is now traded at around $13.42. The impact to the portfolio due to this purchase was 0.09%. The holdings were 13,800 shares as of 2017-06-30.
New Purchase: Guggenheim BulletShares 2019 Corporate Bond (BSCJ)
Barnett & Company, Inc. initiated holdings in Guggenheim BulletShares 2019 Corporate Bond. The purchase prices were between $21.22 and $21.27, with an estimated average price of $21.24. The stock is now traded at around $0.00. The impact to the portfolio due to this purchase was 0.09%. The holdings were 8,675 shares as of 2017-06-30.
New Purchase: Weyerhaeuser Co (WY)
Barnett & Company, Inc. initiated holdings in Weyerhaeuser Co. The purchase prices were between $32.59 and $34.96, with an estimated average price of $33.67. The stock is now traded at around $33.18. The impact to the portfolio due to this purchase was 0.05%. The holdings were 3,020 shares as of 2017-06-30.
Added: Goldman Sachs BDC Inc (GSBD)
Barnett & Company, Inc. added to the holdings in Goldman Sachs BDC Inc by 280.87%. The purchase prices were between $22.25 and $25.09, with an estimated average price of $23.56. The stock is now traded at around $22.34. The impact to the portfolio due to this purchase was 1.14%. The holdings were 139,400 shares as of 2017-06-30.
Added: Ladder Capital Corp (LADR)
Barnett & Company, Inc. added to the holdings in Ladder Capital Corp by 848.88%. The purchase prices were between $13.51 and $15.05, with an estimated average price of $14.34. The stock is now traded at around $13.19. The impact to the portfolio due to this purchase was 0.88%. The holdings were 148,053 shares as of 2017-06-30.
Added: Spirit Realty Capital Inc (SRC)
Barnett & Company, Inc. added to the holdings in Spirit Realty Capital Inc by 3833.27%. The purchase prices were between $6.71 and $10.5, with an estimated average price of $8.4. The stock is now traded at around $7.87. The impact to the portfolio due to this purchase was 0.73%. The holdings were 204,530 shares as of 2017-06-30.
Added: Triton International Ltd (TRTN)
Barnett & Company, Inc. added to the holdings in Triton International Ltd by 91.23%. The purchase prices were between $25.51 and $34.07, with an estimated average price of $29.42. The stock is now traded at around $36.00. The impact to the portfolio due to this purchase was 0.65%. The holdings were 82,376 shares as of 2017-06-30.
Added: SPDR MSCI ACWI ex-US (CWI)
Barnett & Company, Inc. added to the holdings in SPDR MSCI ACWI ex-US by 111.74%. The purchase prices were between $33.66 and $36.44, with an estimated average price of $35.24. The stock is now traded at around $36.74. The impact to the portfolio due to this purchase was 0.65%. The holdings were 70,206 shares as of 2017-06-30.
Added: Macquarie Infrastructure Corp (MIC)
Barnett & Company, Inc. added to the holdings in Macquarie Infrastructure Corp by 78.55%. The purchase prices were between $76.22 and $81.69, with an estimated average price of $78.96. The stock is now traded at around $75.76. The impact to the portfolio due to this purchase was 0.59%. The holdings were 34,255 shares as of 2017-06-30.
Sold Out: Fifth Street Finance Corp (FSC)
Barnett & Company, Inc. sold out the holdings in Fifth Street Finance Corp. The sale prices were between $3.92 and $4.64, with an estimated average price of $4.26.
Sold Out: Energy Transfer Partners LP (4ETA)
Barnett & Company, Inc. sold out the holdings in Energy Transfer Partners LP. The sale prices were between $32.37 and $35.04, with an estimated average price of $33.35.
Sold Out: American Express Co (AXP)
Barnett & Company, Inc. sold out the holdings in American Express Co. The sale prices were between $75.55 and $84.24, with an estimated average price of $79.05.
Sold Out: Macy's Inc (M)
Barnett & Company, Inc. sold out the holdings in Macy's Inc. The sale prices were between $21.6 and $30.01, with an estimated average price of $25.72.
Sold Out: iShares Core U.S. Aggregate Bond (AGG)
Barnett & Company, Inc. sold out the holdings in iShares Core U.S. Aggregate Bond. The sale prices were between $108.44 and $110.15, with an estimated average price of $109.3.
Sold Out: Sunoco Logistics Partners LP (SUN)
Barnett & Company, Inc. sold out the holdings in Sunoco Logistics Partners LP. The sale prices were between $21.5 and $22.84, with an estimated average price of $22.09.
Warning! GuruFocus has detected 3 Warning Sign with GSBD. Click here to check it out.
GSBD 15-Year Financial Data
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Peter Lynch Chart of GSBD
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This article first appeared on GuruFocus .
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 added by 0.58% American Airlines Group Inc ( AAL ) - 98,763 shares, 2.46% of the total portfolio. Barnett & Company, Inc. New Purchases: MUSA , ETP , NMPRG , BSCJ, TPH, MDY, FRC, WY, PINC, FB, Added Positions:GSBD, LADR, SRC, TRTN, CWI, MIC, SCHE, RHP, SUM, WGO, Reduced Positions:BSCH, VZ, SUI, GM, TGT, KMB, HEDJ, SCHZ, KOP, PSEC, Sold Out:FSC, 4ETA, AXP, M, AGG, SUN, T, SYY, GLQ, MDLZ, For the details of Barnett & Company, Inc.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Barnett+%26+Company%2C+Inc. These are the top 5 holdings of Barnett & Company, Inc. General Motors Co ( GM ) - 202,908 shares, 3.51% of the total portfolio.
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Shares added by 0.58% American Airlines Group Inc ( AAL ) - 98,763 shares, 2.46% of the total portfolio. Barnett & Company, Inc. New Purchases: MUSA , ETP , NMPRG , BSCJ, TPH, MDY, FRC, WY, PINC, FB, Added Positions:GSBD, LADR, SRC, TRTN, CWI, MIC, SCHE, RHP, SUM, WGO, Reduced Positions:BSCH, VZ, SUI, GM, TGT, KMB, HEDJ, SCHZ, KOP, PSEC, Sold Out:FSC, 4ETA, AXP, M, AGG, SUN, T, SYY, GLQ, MDLZ, For the details of Barnett & Company, Inc.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Barnett+%26+Company%2C+Inc. New Purchase: Energy Transfer Partners LP (ETP) Barnett & Company, Inc. initiated holdings in Energy Transfer Partners LP.
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Shares added by 0.58% American Airlines Group Inc ( AAL ) - 98,763 shares, 2.46% of the total portfolio. Barnett & Company, Inc. New Purchases: MUSA , ETP , NMPRG , BSCJ, TPH, MDY, FRC, WY, PINC, FB, Added Positions:GSBD, LADR, SRC, TRTN, CWI, MIC, SCHE, RHP, SUM, WGO, Reduced Positions:BSCH, VZ, SUI, GM, TGT, KMB, HEDJ, SCHZ, KOP, PSEC, Sold Out:FSC, 4ETA, AXP, M, AGG, SUN, T, SYY, GLQ, MDLZ, For the details of Barnett & Company, Inc.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Barnett+%26+Company%2C+Inc. The purchase prices were between $65 and $74.49, with an estimated average price of $69.94.
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Shares added by 0.58% American Airlines Group Inc ( AAL ) - 98,763 shares, 2.46% of the total portfolio. Sold Out: American Express Co (AXP) Barnett & Company, Inc. sold out the holdings in American Express Co. Aggregate Bond (AGG) Barnett & Company, Inc. sold out the holdings in iShares Core U.S.
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7401.0
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2017-07-27 00:00:00 UTC
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United Parcel (UPS) Beats Earnings, Revenue Estimates in Q2
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AAL
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https://www.nasdaq.com/articles/united-parcel-ups-beats-earnings-revenue-estimates-in-q2-2017-07-27
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United Parcel Service, Inc.UPS reported second-quarter 2017 earnings of $1.58, beating the Zacks Consensus Estimate of $1.46 per share. Earnings increased 11% on a year-over-year basis. Results were aided by higher revenues.
Revenues improved 7.7% to $15,750 million from the year-ago quarter, beating the Zacks Consensus Estimate of $15,477.3 million. The upside was driven by growth across all the key segments of the company.
Segmental Details
U.S. Domestic Package revenues climbed 8.1% year over year to $9,745 million in the reported quarter, driven by e-commerce growth. Segmental operating profit improved 13.1% to $1,395 million.
Segmental average daily package volumes increased 4.9%, driven by a 4.2% rise in Ground products and 6.4% growth in Next Day Air services. Deferred Air products were up 11%. Average revenue per piece was up 3%.
International Package revenues improved 2.8% to $3,163 million, despite the adverse impact of foreign currency. Export shipments rose 12% in the quarter on the back of growth in Europe and Asia.
However, segmental operating profits decreased 4.9% to $583 million in the quarter. The measure came in at $697 million on a currency neutral basis. Revenue per piece declined 2.3%.
Supply Chain and Freight revenues increased 12% to $2,842 million. Segmental results were aided by the acquisition of Coyote Logistics, which was completed in the third quarter of 2015. Operating profits in the segment climbed 24% to $238 million in the reported quarter.
Other Details
United Parcel has spent $2 billion as capital expenditure in the first six months of the year. Moreover, the company paid approximately $1.4 as dividend to shareholders in the first half of 2017. It also bought back 8.4 million shares for more than $900 million.
In fact, the company's efforts to reward shareholders consistently through buybacks and dividend payouts are impressive.
United Parcel Service, Inc. Price, Consensus and EPS Surprise
United Parcel Service, Inc. Price, Consensus and EPS Surprise | United Parcel Service, Inc. Quote
Outlook
United Parcel carries a Zacks Rank #4 (Sell) company. It still expects 2017 adjusted earnings per share in the band of $5.80 to $6.10, which includes $400 million of pre-tax currency headwinds. Foreign currency related headwinds are also expected to hurt 2017 results. The Zacks Consensus Estimate for 2017 is currentlypegged at $5.95 per share. Tax rate of 35% is projected for the latter half of 2017.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Upcoming Releases
Investors interested in the broader Transportation space are keenly waiting for second-quarter earnings reports from key players like American Airlines Group, Inc. AAL , Copa Holdings, S.A. CPA and Air Lease Corp. AL . While American Airlines is scheduled to report second-quarter results on Jul 28, Copa Holdings and Air Lease will report the same on Aug 9 and Aug 3, respectively.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Copa Holdings, S.A. (CPA): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Air Lease Corporation (AL): Free Stock Analysis Report
United Parcel Service, Inc. (UPS): 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 space are keenly waiting for second-quarter earnings reports from key players like American Airlines Group, Inc. AAL , Copa Holdings, S.A. CPA and Air Lease Corp. AL . Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report To read this article on Zacks.com click here. Segmental average daily package volumes increased 4.9%, driven by a 4.2% rise in Ground products and 6.4% growth in Next Day Air services.
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Upcoming Releases Investors interested in the broader Transportation space are keenly waiting for second-quarter earnings reports from key players like American Airlines Group, Inc. AAL , Copa Holdings, S.A. CPA and Air Lease Corp. AL . Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report To read this article on Zacks.com click here. United Parcel Service, Inc. Price, Consensus and EPS Surprise United Parcel Service, Inc. Price, Consensus and EPS Surprise | United Parcel Service, Inc. Quote Outlook United Parcel carries a Zacks Rank #4 (Sell) company.
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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 Air Lease Corporation (AL): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report To read this article on Zacks.com click here. Upcoming Releases Investors interested in the broader Transportation space are keenly waiting for second-quarter earnings reports from key players like American Airlines Group, Inc. AAL , Copa Holdings, S.A. CPA and Air Lease Corp. AL . Revenues improved 7.7% to $15,750 million from the year-ago quarter, beating the Zacks Consensus Estimate of $15,477.3 million.
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Upcoming Releases Investors interested in the broader Transportation space are keenly waiting for second-quarter earnings reports from key players like American Airlines Group, Inc. AAL , Copa Holdings, S.A. CPA and Air Lease Corp. AL . Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report To read this article on Zacks.com click here. United Parcel Service, Inc.UPS reported second-quarter 2017 earnings of $1.58, beating the Zacks Consensus Estimate of $1.46 per share.
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7402.0
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2017-07-27 00:00:00 UTC
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Close Update: Nasdaq Roiled By Midday Sell-Off, Dow Keeps Upward Momentum
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AAL
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https://www.nasdaq.com/articles/close-update-nasdaq-roiled-midday-sell-dow-keeps-upward-momentum-2017-07-27
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Stocks were mixed at Thursday's close after selling erupted midday following a warning from a JP Morgan strategist cautioning investors on the risks of record-low volatility in the equity market. Once the dust settled, the Nasdaq and S&P 500 closed lower while the Dow held onto a solid gain to close higher for a third straight day.
The bloated Nasdaq, fresh off a two-week winning streak, took the brunt of the sell-off, spiralling off another record high to a loss of as much as 1.6% and the S&P 500 to its lowest level in seven days. The Dow was insulated from the worst of the selling pressure as investors rotated out of tech stocks into safer assets.
Wall Street set new records at Thursday's open as strong second quarter results coupled with the Federal Reserve's preference to remain cautious until inflation gains traction fuelled investor's appetite for risk. Better-than-expected results from Facebook ( FB ) drove the Nasdaq to its fourth consecutive all-time high with the tech-heavy index trading higher for fourteen of the past fifteen days.
Economic data this morning failed to make a dent in the bullish sentiment on Wall Street as it supported the thesis of slower economic growth. Led by a surge in orders for civilian aircraft, durable goods orders jumped 6.5% in June, nearly twice what the market expected. But excluding transportation orders, durable goods orders increased by a tame 0.2%, half of what was expected.
Initial jobless claims jumped 10,000 for the week ended July 22 to 244,000, above the estimated 240,000, while the U.S. trade deficit in goods narrowed to $63.9 billion from $66.3 billion as the dollar weakens against its major rivals.
Finally, the Chicago Fed national activity index, a "soft" data point, improved to 0.13 from a negative 0.26.
For Friday, Wall Street will continue to focus on Q2 earnings with results from American Airlines ( AAL ), Exxon Mobile ( XOM ), Merck ( MRK ) before the open, and data on Q2 GDP, the employment cost index, and the Univ of MI consumer sentiment index, along with the Baker-Hughes rig count at 1:00pm ET.
Here's where the markets stood at the close:
US MARKETS
Dow Jones Industrial Index was up 85.54 points (+0.39%)
S&P 500 was down 2.41 points (-0.10%)
Nasdaq Composite Index was down 40.56 points (-0.63%)
GLOBAL SENTIMENT
FTSE 100 was down 0.12%
Nikkei 225 was up 0.15%
Hang Seng Index was up 0.71%
Shanghai China Composite Index was up 0.06%
UPSIDE MOVERS
(+) CAPR (+28.71%) Developed intravenous CAP-1002
(+) SHOR (+28.21%) To be acquired by Mitel Networks ( MITL ) for $7.50 per share
(+) GNC (+16.86%) Beat EPS estimates by three cents, missed on revenue
DOWNSIDE MOVERS:
(-) IPCI (-45.38%) FDA rejected marketing application of oxycodone
(-) CUR (-29.15%) Priced $6 million stock offering
(-) AZN (-14.93%) Phase 3 trial of lung cancer treatment did not meet primary endpoints
(-) CYH (-14.54%) Issued profit warning for Q2
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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For Friday, Wall Street will continue to focus on Q2 earnings with results from American Airlines ( AAL ), Exxon Mobile ( XOM ), Merck ( MRK ) before the open, and data on Q2 GDP, the employment cost index, and the Univ of MI consumer sentiment index, along with the Baker-Hughes rig count at 1:00pm ET. Stocks were mixed at Thursday's close after selling erupted midday following a warning from a JP Morgan strategist cautioning investors on the risks of record-low volatility in the equity market. Wall Street set new records at Thursday's open as strong second quarter results coupled with the Federal Reserve's preference to remain cautious until inflation gains traction fuelled investor's appetite for risk.
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For Friday, Wall Street will continue to focus on Q2 earnings with results from American Airlines ( AAL ), Exxon Mobile ( XOM ), Merck ( MRK ) before the open, and data on Q2 GDP, the employment cost index, and the Univ of MI consumer sentiment index, along with the Baker-Hughes rig count at 1:00pm ET. But excluding transportation orders, durable goods orders increased by a tame 0.2%, half of what was expected. (-) IPCI (-45.38%) FDA rejected marketing application of oxycodone (-) CUR (-29.15%) Priced $6 million stock offering (-) AZN (-14.93%) Phase 3 trial of lung cancer treatment did not meet primary endpoints (-) CYH (-14.54%) Issued profit warning for Q2 The views and 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 Friday, Wall Street will continue to focus on Q2 earnings with results from American Airlines ( AAL ), Exxon Mobile ( XOM ), Merck ( MRK ) before the open, and data on Q2 GDP, the employment cost index, and the Univ of MI consumer sentiment index, along with the Baker-Hughes rig count at 1:00pm ET. Dow Jones Industrial Index was up 85.54 points (+0.39%) S&P 500 was down 2.41 points (-0.10%) Nasdaq Composite Index was down 40.56 points (-0.63%) (-) IPCI (-45.38%) FDA rejected marketing application of oxycodone (-) CUR (-29.15%) Priced $6 million stock offering (-) AZN (-14.93%) Phase 3 trial of lung cancer treatment did not meet primary endpoints (-) CYH (-14.54%) Issued profit warning for Q2 The views and 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 Friday, Wall Street will continue to focus on Q2 earnings with results from American Airlines ( AAL ), Exxon Mobile ( XOM ), Merck ( MRK ) before the open, and data on Q2 GDP, the employment cost index, and the Univ of MI consumer sentiment index, along with the Baker-Hughes rig count at 1:00pm ET. Stocks were mixed at Thursday's close after selling erupted midday following a warning from a JP Morgan strategist cautioning investors on the risks of record-low volatility in the equity market. Wall Street set new records at Thursday's open as strong second quarter results coupled with the Federal Reserve's preference to remain cautious until inflation gains traction fuelled investor's appetite for risk.
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7403.0
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2017-07-27 00:00:00 UTC
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Pre-Market Earnings Report for July 28, 2017 : XOM, CVX, MRK, ABBV, TRP, LYB, HCN, BEN, WY, IMO, AAL, VTR
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AAL
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https://www.nasdaq.com/articles/pre-market-earnings-report-july-28-2017-xom-cvx-mrk-abbv-trp-lyb-hcn-ben-wy-imo-aal-vtr
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The following companies are expected to report earnings prior to market open on 07/28/2017. Visit our Earnings Calendar for a full list of expected earnings releases.
Exxon Mobil Corporation ( XOM ) is reporting for the quarter ending June 30, 2017. The oil company's consensus earnings per share forecast from the 9 analysts that follow the stock is $0.83. This value represents a 102.44% increase compared to the same quarter last year. XOM missed the consensus earnings per share in the 2nd calendar quarter of 2016 by -35.94%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for XOM is 22.90 vs. an industry ratio of 21.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Chevron Corporation ( CVX ) is reporting for the quarter ending June 30, 2017. The oil company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.89. This value represents a 85.42% increase compared to the same quarter last year. CVX missed the consensus earnings per share in the 4th calendar quarter of 2016 by -65.63%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for CVX is 26.02 vs. an industry ratio of 21.90, implying that they will have a higher earnings growth than their competitors in the same industry.
Merck & Company, Inc. ( MRK ) is reporting for the quarter ending June 30, 2017. The large cap pharmaceutical company's consensus earnings per share forecast from the 8 analysts that follow the stock is $0.87. This value represents a 6.45% decrease compared to the same quarter last year. In the past year MRK has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 6.02%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for MRK is 16.05 vs. an industry ratio of 17.30.
AbbVie Inc. ( ABBV ) is reporting for the quarter ending June 30, 2017. The large cap pharmaceutical company's consensus earnings per share forecast from the 10 analysts that follow the stock is $1.40. This value represents a 11.11% increase compared to the same quarter last year. In the past year ABBV has met analyst expectations twice and beat the expectations the other two quarters. Zacks Investment Research reports that the 2017 Price to Earnings ratio for ABBV is 13.15 vs. an industry ratio of 17.30.
TransCanada Corporation ( TRP ) is reporting for the quarter ending June 30, 2017. The oil (production/pipeline) company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.50. This value represents a 25.00% increase compared to the same quarter last year. The last two quarters TRP had negative earnings surprises; the latest report they missed by -7.58%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for TRP is 24.10 vs. an industry ratio of 27.00.
LyondellBasell Industries NV ( LYB ) is reporting for the quarter ending June 30, 2017. The chemical company's consensus earnings per share forecast from the 8 analysts that follow the stock is $2.73. This value represents a 11.43% increase compared to the same quarter last year. Zacks Investment Research reports that the 2017 Price to Earnings ratio for LYB is 8.80 vs. an industry ratio of 17.00.
Welltower Inc. ( HCN ) is reporting for the quarter ending June 30, 2017. The reit company's consensus earnings per share forecast from the 10 analysts that follow the stock is $1.05. This value represents a 8.70% decrease compared to the same quarter last year. In the past year HCN has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2017 Price to Earnings ratio for HCN is 17.49 vs. an industry ratio of 29.30.
Franklin Resources, Inc. ( BEN ) is reporting for the quarter ending June 30, 2017. The finance/investment management company's consensus earnings per share forecast from the 6 analysts that follow the stock is $0.73. This value represents a 5.19% decrease compared to the same quarter last year. In the past year BEN has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 10.45%. Zacks Investment Research reports that the 2017 Price to Earnings ratio for BEN is 15.95 vs. an industry ratio of 9.50, implying that they will have a higher earnings growth than their competitors in the same industry.
Weyerhaeuser Company ( WY ) is reporting for the quarter ending June 30, 2017. The building company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.27. This value represents a 58.82% increase compared to the same quarter last year. Zacks Investment Research reports that the 2017 Price to Earnings ratio for WY is 33.25 vs. an industry ratio of 26.30, implying that they will have a higher earnings growth than their competitors in the same industry.
Imperial Oil Limited ( IMO ) is reporting for the quarter ending June 30, 2017. The consensus earnings per share forecast from the 4 analysts that follow the stock is $0.23. IMO reported earnings of $-0.16 per share for the same quarter a year ago; representing a a decrease of -243.75%.
American Airlines Group, Inc. ( AAL ) is reporting for the quarter ending June 30, 2017. The airline company's consensus earnings per share forecast from the 9 analysts that follow the stock is $1.87. This value represents a 5.65% increase compared to the same quarter last year. In the past year AAL has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2017 Price to Earnings ratio for AAL is 9.85 vs. an industry ratio of 9.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Ventas, Inc. ( VTR ) is reporting for the quarter ending June 30, 2017. The reit company's consensus earnings per share forecast from the 8 analysts that follow the stock is $1.05. This value represents a 0.96% increase compared to the same quarter last year. In the past year VTR has met analyst expectations twice and beat the expectations the other two quarters. Zacks Investment Research reports that the 2017 Price to Earnings ratio for VTR is 16.33 vs. an industry ratio of 29.30.
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 reporting for the quarter ending June 30, 2017. In the past year AAL has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2017 Price to Earnings ratio for AAL is 9.85 vs. an industry ratio of 9.20, implying that they will have a higher earnings growth than their competitors in the same industry.
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American Airlines Group, Inc. ( AAL ) is reporting for the quarter ending June 30, 2017. In the past year AAL has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2017 Price to Earnings ratio for AAL is 9.85 vs. an industry ratio of 9.20, implying that they will have a higher earnings growth than their competitors in the same industry.
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American Airlines Group, Inc. ( AAL ) is reporting for the quarter ending June 30, 2017. In the past year AAL has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2017 Price to Earnings ratio for AAL is 9.85 vs. an industry ratio of 9.20, implying that they will have a higher earnings growth than their competitors in the same industry.
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American Airlines Group, Inc. ( AAL ) is reporting for the quarter ending June 30, 2017. In the past year AAL has met analyst expectations once and beat the expectations the other three quarters. Zacks Investment Research reports that the 2017 Price to Earnings ratio for AAL is 9.85 vs. an industry ratio of 9.20, implying that they will have a higher earnings growth than their competitors in the same industry.
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7404.0
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2017-07-27 00:00:00 UTC
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Nasdaq 100 Movers: AAL, SIRI
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-aal-siri-2017-07-27
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nan
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nan
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In early trading on Thursday, shares of Sirius XM Holdings ( SIRI ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.0%. Year to date, Sirius XM Holdings registers a 28.4% gain.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.3%. American Airlines Group is showing a gain of 5.7% looking at the year to date performance.
Two other components making moves today are Discovery Communications ( DISCK ), trading down 2.7%, and Facebook ( FB ), trading up 5.2% on the day.
VIDEO: Nasdaq 100 Movers: AAL, SIRI
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 3.3%. VIDEO: Nasdaq 100 Movers: AAL, SIRI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Year to date, Sirius XM Holdings registers a 28.4% gain.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.3%. VIDEO: Nasdaq 100 Movers: AAL, SIRI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of Sirius XM Holdings ( SIRI ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.0%.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.3%. VIDEO: Nasdaq 100 Movers: AAL, SIRI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of Sirius XM Holdings ( SIRI ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.0%.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.3%. VIDEO: Nasdaq 100 Movers: AAL, SIRI The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Thursday, shares of Sirius XM Holdings ( SIRI ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 6.0%.
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7405.0
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2017-07-27 00:00:00 UTC
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Southwest Airlines (LUV) Beats on Earnings & Revenues in Q2
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-luv-beats-on-earnings-revenues-in-q2-2017-07-27
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nan
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nan
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Low-cost carrier Southwest Airlines Co.LUV reported better-than-expected earnings and revenues in the second-quarter of 2017. The carrier's earnings per share (on an adjusted basis) of $1.24 beat the Zacks Consensus Estimate of $1.20. Earnings, improved 4.20% on a year over year basis.
Operating revenues of $5,744 million was marginally above the Zacks Consensus Estimate of $5733.2 million. Revenues also improved 6.69% year over year. Passenger revenues accounted for the bulk (91.1%) of the top line.
Operating Statistics
Airline traffic, measured in revenue passenger miles increased 5.1% year over year to $34.38 billion in the quarter under review. Capacity or available seat miles (ASMs) expanded 5.1% to $40.17 billion. Load factor (percentage of seats filled by passengers) came in at 85.6%, flat on a year over year basis, as capacity expansion was in line with traffic growth. Passenger revenue per available seat mile (PRASM: a key measure of unit revenue) increased 1.5% to 13.03 cents. In the reported quarter, revenue per available seat mile (RASM) was 14.30 cents, up 1.5% year over year.
Operating Expenses & Income
In the second quarter, operating income came in at $1,250 million compared with $1,276 million in the prior-year quarter. Excluding special items, operating income was $1,212 million, down 4.3%. Total adjusted operating expenses (excluding profit-sharing, fuel and oil expense, and special items) increased 10.6% year over year. Fuel price per gallon (inclusive of fuel tax: economic) climbed 6.6% year over year to $1.93. Consolidated unit cost or cost per available seat mile (CASM) - excluding fuel, oil and special items -increased 4.4% year over year to 8.70 cents.
Southwest Airlines Company Price, Consensus and EPS Surprise
Southwest Airlines Company Price, Consensus and EPS Surprise | Southwest Airlines Company Quote
Liquidity
This Zacks Rank #2 (Buy) had cash and cash equivalents of $1,537 million at the end of the second quarter, compared with $1,680 million at the end of 2016. As of Jun 30, 2017, the company had long-term debt (less current maturities) of $2,788 million compared with $2,821 million at the end of 2016. While the carrier generated free cash flow of $195 million in second-quarter 2017, it returned $476 million to shareholders through a combination of dividends and share repurchases. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Guidance
The company expects RASM growth of approximately 1% year over year in the third quarter of 2017. This is inclusive of an estimated year-over-year negative impact from the transition to the new reservation system of around one point. Economic fuel costs in the third quarter are still expected in the range of $1.95-$2.00 per gallon. Unit costs (excluding fuel and oil expenses, special items and profit sharing expenses) in the third quarter are expected to increase in the 2-3% range. The metric is expected to be in line with the year-ago level for the fourth quarter.
The subdued guidance and higher costs disappointed investors. Consequently, the stock declined in early trading despite the outperformance in the second quarter.
Upcoming Releases
Investors interested in the broader transportation space are keenly waiting for second-quarter earnings reports from key players like American Airlines Group, Inc. AAL , Copa Holdings, S.A. CPA and Air Lease Corporation AL . While American Airlines is scheduled to report second-quarter results on Jul 28, Copa Holdings and Air Lease will report the same on Aug 9 and Aug 3, respectively.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
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Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Company (LUV): Free Stock Analysis Report
Copa Holdings, S.A. (CPA): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Air Lease Corporation (AL): 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 space are keenly waiting for second-quarter earnings reports from key players like American Airlines Group, Inc. AAL , Copa Holdings, S.A. CPA and Air Lease Corporation AL . Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report To read this article on Zacks.com click here. Low-cost carrier Southwest Airlines Co.LUV reported better-than-expected earnings and revenues in the second-quarter of 2017.
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Upcoming Releases Investors interested in the broader transportation space are keenly waiting for second-quarter earnings reports from key players like American Airlines Group, Inc. AAL , Copa Holdings, S.A. CPA and Air Lease Corporation AL . Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report To read this article on Zacks.com click here. Southwest Airlines Company Price, Consensus and EPS Surprise Southwest Airlines Company Price, Consensus and EPS Surprise | Southwest Airlines Company Quote Liquidity This Zacks Rank #2 (Buy) had cash and cash equivalents of $1,537 million at the end of the second quarter, compared with $1,680 million at the end of 2016.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report To read this article on Zacks.com click here. Upcoming Releases Investors interested in the broader transportation space are keenly waiting for second-quarter earnings reports from key players like American Airlines Group, Inc. AAL , Copa Holdings, S.A. CPA and Air Lease Corporation AL . Operating Statistics Airline traffic, measured in revenue passenger miles increased 5.1% year over year to $34.38 billion in the quarter under review.
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Upcoming Releases Investors interested in the broader transportation space are keenly waiting for second-quarter earnings reports from key players like American Airlines Group, Inc. AAL , Copa Holdings, S.A. CPA and Air Lease Corporation AL . Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report To read this article on Zacks.com click here. Operating Statistics Airline traffic, measured in revenue passenger miles increased 5.1% year over year to $34.38 billion in the quarter under review.
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7406.0
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2017-07-26 00:00:00 UTC
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Alaska Air Group (ALK) Tops Q2 Earnings, Revenue Estimates
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AAL
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https://www.nasdaq.com/articles/alaska-air-group-alk-tops-q2-earnings-revenue-estimates-2017-07-26
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nan
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nan
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Alaska Air GroupALK that acquired Virgin America in December last year, performed well in the second quarter of 2017. The carrier's earnings of $2.51 per share beat the Zacks Consensus Estimate by a penny. Moreover, the bottom line expanded 18.4% on a year-over-year basis. Results were aided by higher revenues.
Revenues came in at $2,102 million, just ahead of the Zacks Consensus Estimate of $2,096.3 million. The top line grew 41% on a year-over-year basis. In fact, passenger revenues that improved 43% on a year-over-year basis, accounted for bulk of the top line (86%).
Operating Statistics
Airline traffic, measured in revenue passenger miles, rose 44.2% year over year to 13,554 million in the reported quarter. Capacity or available seat miles increased 41.1% to 15,612 million. Load factor (percentage of seats filled by passengers) increased 190 basis points to 86.8% owing to traffic growth outpacing capacity expansion.
Passenger revenue per available seat mile (PRASM: a key measure of unit revenues) increased 1.3% year over year to 11.57 cents. While total revenue per available seat mile (RASM) declined 0.4% to 13.46 cents in the reported quarter, yield declined 0.8% to 13.33 cents.
Operating Expenses & Income
In the quarter under review, total operating expenses (on a reported basis) rose 50% year over year to $1,609 million primarily owing to the 41% rise in wages and benefits. Operating income increased 18% to $493 million from the prior-year quarter. Fuel price (economic) was $1.71 per gallon, up 11.8%. Consolidated unit cost or cost per available seat mile - excluding fuel and special items - increased 2.1% to 7.94 cents backed by high labor costs.
Alaska Air Group, Inc. Price, Consensus and EPS Surprise
Alaska Air Group, Inc. Price, Consensus and EPS Surprise | Alaska Air Group, Inc. Quote
Liquidity
At the end of the quarter, this Zacks Rank #2 (Buy) company had $1,922 million in cash and marketable securities compared with $1,580 million at the end of 2016. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Alaska Air Group exited the quarter with long-term debt of $2,469 million compared with $2,645 million at the end of 2016. At the end of the quarter, adjusted debt-to-capitalization ratio was 55% compared with 59% at 2016-end. In fact, the carrier paid a dividend of 30 cents per share in the second quarter, up 9% year over year.
Other Important Releases Coming Up
Investors interested in the airline space keenly await the second-quarter earnings reports of SkyWest, Inc. SKYW , Spirit Airlines SAVE and American Airlines Group AAL . While SkyWest and Spirit Airlines are scheduled to report results on Jul 27, American Airlines will unveil its earnings report on Jul 28.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 Important Releases Coming Up Investors interested in the airline space keenly await the second-quarter earnings reports of SkyWest, Inc. SKYW , Spirit Airlines SAVE and American Airlines Group AAL . Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Alaska Air GroupALK that acquired Virgin America in December last year, performed well in the second quarter of 2017.
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Other Important Releases Coming Up Investors interested in the airline space keenly await the second-quarter earnings reports of SkyWest, Inc. SKYW , Spirit Airlines SAVE and American Airlines Group AAL . Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Alaska Air Group, Inc. Price, Consensus and EPS Surprise Alaska Air Group, Inc. Price, Consensus and EPS Surprise | Alaska Air Group, Inc. Quote Liquidity At the end of the quarter, this Zacks Rank #2 (Buy) company had $1,922 million in cash and marketable securities compared with $1,580 million at the end of 2016.
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Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Other Important Releases Coming Up Investors interested in the airline space keenly await the second-quarter earnings reports of SkyWest, Inc. SKYW , Spirit Airlines SAVE and American Airlines Group AAL . Operating Statistics Airline traffic, measured in revenue passenger miles, rose 44.2% year over year to 13,554 million in the reported quarter.
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Other Important Releases Coming Up Investors interested in the airline space keenly await the second-quarter earnings reports of SkyWest, Inc. SKYW , Spirit Airlines SAVE and American Airlines Group AAL . Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Operating Statistics Airline traffic, measured in revenue passenger miles, rose 44.2% year over year to 13,554 million in the reported quarter.
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7407.0
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2017-07-26 00:00:00 UTC
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Ryder System (R) Tops Earnings & Revenue Estimates in Q2
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AAL
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https://www.nasdaq.com/articles/ryder-system-r-tops-earnings-revenue-estimates-in-q2-2017-07-26
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nan
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nan
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Ryder SystemR performed well in the second quarter of 2017 reporting better-than-expected earnings per share and revenues.
The transportation company's adjusted earnings of $1 per share beat the Zacks Consensus Estimate of 93 cents. Earnings, however, declined 36% on a year-over-year basis.
Ryder System reported total revenue of $1,793.2 million, which surpassed the Zacks Consensus Estimate of $1,769.2 million. Revenues increased 5% on a year-over-year basis with growth being witnessed in all segments.
Segment Results
Fleet Management Solutions: Total revenue was $1.16 billion, up 1% year over year. Operating revenues (revenues excluding fuel) came in at $1 billion, flat year over year. Segmental results were aided by an increase in lease revenues on the back of a larger average fleet size.
Dedicated Transportation Solutions: Total revenue came in at $273 million, up 6% from the year-ago quarter. Operating revenues (excluding fuel and subcontracted transportation) grew 3% year over year to $200 million.
Supply Chain Solutions: Total revenue in the quarter under review was $471 million, up 17% year over year. Operating revenues (revenues excluding fuel and subcontracted transportation) increased 8% year over year to $359 million.
Ryder System, Inc. Price, Consensus and EPS Surprise
Ryder System, Inc. Price, Consensus and EPS Surprise | Ryder System, Inc. Quote
Liquidity
Ryder System, which carries a Zacks Rank #2 (Buy), exited the second quarter with cash and cash equivalents of $55.4 million compared with $58.8 million at the end of 2016. The company had total debt of $5,384.8 million compared with $5,391.3 million at the end of 2016. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Guidance
The company now expects 2017 adjusted earnings in the band of $4.38 to $4.58 per share compared with the previous range of $4.25 to $4.55. The Zacks Consensus Estimate for 2017 is pegged at $4.37 per share. It expects third-quarter 2017 adjusted earnings per share in the band of $1.25 to $1.35. The Zacks Consensus Estimate for the third quarter is pegged at $1.36 per share.
Other Important Releases Coming Up
Investors interested in the broader Transportation space keenly await the second-quarter earnings reports of SkyWest, Inc. SKYW , Spirit Airlines SAVE and American Airlines Group AAL . While SkyWest and Spirit Airlines are scheduled to report results on Jul 27, American Airlines will unveil its earnings report on Jul 28.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): 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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Other Important Releases Coming Up Investors interested in the broader Transportation space keenly await the second-quarter earnings reports of SkyWest, Inc. SKYW , Spirit Airlines SAVE and American Airlines Group AAL . Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Ryder System, Inc. (R): Free Stock Analysis Report To read this article on Zacks.com click here. The transportation company's adjusted earnings of $1 per share beat the Zacks Consensus Estimate of 93 cents.
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Other Important Releases Coming Up Investors interested in the broader Transportation space keenly await the second-quarter earnings reports of SkyWest, Inc. SKYW , Spirit Airlines SAVE and American Airlines Group AAL . Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Ryder System, Inc. (R): 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 Ryder System, which carries a Zacks Rank #2 (Buy), exited the second quarter with cash and cash equivalents of $55.4 million compared with $58.8 million at the end of 2016.
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Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Ryder System, Inc. (R): Free Stock Analysis Report To read this article on Zacks.com click here. Other Important Releases Coming Up Investors interested in the broader Transportation space keenly await the second-quarter earnings reports of SkyWest, Inc. SKYW , Spirit Airlines SAVE and American Airlines Group AAL . Ryder System reported total revenue of $1,793.2 million, which surpassed the Zacks Consensus Estimate of $1,769.2 million.
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Other Important Releases Coming Up Investors interested in the broader Transportation space keenly await the second-quarter earnings reports of SkyWest, Inc. SKYW , Spirit Airlines SAVE and American Airlines Group AAL . Click to get this free report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Ryder System, Inc. (R): Free Stock Analysis Report To read this article on Zacks.com click here. Ryder System reported total revenue of $1,793.2 million, which surpassed the Zacks Consensus Estimate of $1,769.2 million.
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7408.0
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2017-07-26 00:00:00 UTC
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Can American Airlines (AAL) Pull a Surprise in Q2 Earnings?
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AAL
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https://www.nasdaq.com/articles/can-american-airlines-aal-pull-a-surprise-in-q2-earnings-2017-07-26
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nan
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nan
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American Airlines GroupAAL is scheduled to report second-quarter 2017 results on Jul 28, before the market opens.
Last quarter, the company delivered a positive earnings surprise of 7.02%. It also has an impressive earnings history, beating the Zacks Consensus Estimate in three of the last four quarters with an average beat of 20.24%.
Let's see how things shape up for this announcement.
Factors Likely at Play
High costs are likely to hurt bottom-line growth in the second quarter. Consolidated CASM (excluding special items and fuel) is projected to increase 7% in the quarter. In addition, average fuel cost per gallon (mainline) is projected in the band of $1.6-$1.65 per gallon.
The wage hike announcement for pilots and flight attendants in April is also likely to pressurize the bottom line. The fact that American Airlines is a highly leveraged company might further hurt results in the second quarter.
However, the carrier issued a bullish view on unit revenues and adjusted pre-tax margin for the second quarter of 2017 while releasing June traffic results. The carrier now expects total revenue per available seat mile (TRASM) for the second quarter to grow in the band of 5-6% (old guidance had hinted at growth in the range of 3.5-5.5%). Pre-tax margin excluding special items for the quarter is expected in the range of 13-14% (previous guidance: 12-14%).
Earnings Whispers
Our proven model does not conclusively show that American Airlines is likely to beat estimates this quarter. 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. But that is not the case here as elaborated below.
Zacks ESP: American Airlines has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.87 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 has a Zacks Rank #1.
We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
American Airlines Group, Inc. Price and EPS Surprise
American Airlines Group, Inc. Price and EPS Surprise | American Airlines Group, Inc. Quote
Stocks to Consider
Investors interested in the airline space may consider the following stocks, since our model shows that these companies possess the right combination of elements to come up with an earnings beat this time.
Copa Holdings, S.A. CPA has an Earnings ESP of +4.29% and a Zacks Rank #2. The company will release second-quarter results on Aug 9.
LATAM Airlines Group S.A. LTM has an Earnings ESP of +200.00% and a Zacks Rank #2. The company will report second-quarter results on Aug 18.
SkyWest, Inc. SKYW has an Earnings ESP of +3.45% and a Zacks Rank #1. The company will report second-quarter results on Jul 27. You can see the complete list of today's Zacks #1 Rank stocks here .
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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
SkyWest, Inc. (SKYW): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
LATAM Airlines Group S.A. (LTM): 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 is scheduled to report second-quarter 2017 results on Jul 28, before the market opens. Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis Report To read this article on Zacks.com click here. However, the carrier issued a bullish view on unit revenues and adjusted pre-tax margin for the second quarter of 2017 while releasing June traffic results.
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Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines GroupAAL is scheduled to report second-quarter 2017 results on Jul 28, before the market opens. American Airlines Group, Inc. Price and EPS Surprise American Airlines Group, Inc. Price and EPS Surprise | American Airlines Group, Inc. Quote Stocks to Consider Investors interested in the airline space may consider the following stocks, since our model shows that these companies possess the right combination of elements to come up with an earnings beat this time.
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Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines GroupAAL is scheduled to report second-quarter 2017 results on Jul 28, before the market opens. Zacks Rank: American Airlines has a Zacks Rank #1.
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American Airlines GroupAAL is scheduled to report second-quarter 2017 results on Jul 28, before the market opens. Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis Report To read this article on Zacks.com click here. The fact that American Airlines is a highly leveraged company might further hurt results in the second quarter.
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7409.0
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2017-07-26 00:00:00 UTC
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Canadian National (CNI) Q2 Earnings In Line, Revenues Beat
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AAL
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https://www.nasdaq.com/articles/canadian-national-cni-q2-earnings-in-line-revenues-beat-2017-07-26
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nan
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nan
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Canadian National Railway Company'sCNI second-quarter 2017 earnings per share (on an adjusted basis) of $1.00 (C$1.34) were in line with the Zacks Consensus Estimate. Adjusted earnings climbed 16.28% from the year-ago figure.
Quarterly revenues of $2474.1 million (C$3,329) surpassed the Zacks Consensus Estimate of $2440.1 million and climbed 12.20% year over year. Rail freight revenues, accounting for bulk of the top line in the quarter, improved 18%. The top line got a boost from increased volumes in segments namely, Canadian Grain and Fertilizers, Overseas Intermodal Traffic, Frac Sand, Coal and Petroleum Coke exports, Crude oil and Finished vehicles.
Operating Results
On a year-over-year basis, freight revenues increased in all the segments, 12% at Petroleum and chemicals, 33% at Metals and minerals and Coal, 6% at Forest products, 23% at Grain and fertilizers, 17% at Intermodal and 20% at Automotive. Overall, carloads (volumes) also expanded 14% and revenue ton miles (RTMs) rallied 18% year over year. Rail freight revenues per carload inched up 3% in the reported quarter.
The Metals and minerals sub group performed most impressively with respect to car loads that surged 32%. The other two segments to report double-digit volume growth is Grain and fertilizers, and Intermodal, both showing a 16% increase. However, Coal and Forest products volumes decreased 3% and 2% respectively.
In the quarter under review, operating income climbed 16% year over year to C$1,495 million. Operating ratio (defined as operating expenses as a percentage of revenues) was 55.1% compared with 54.5% in the year-ago quarter. Higher fuel costs contributed to the deterioration in this key metric.
Canadian National Railway Company Price, Consensus and EPS Surprise
Canadian National Railway Company Price, Consensus and EPS Surprise | Canadian National Railway Company Quote
Liquidity
Canadian National exited the second quarter with free cash flow of C$811 million compared with C$585 million a year ago. Adjusted debt at the end of the quarter was C$11,045 million compared with C$10,883 million a year ago.
Dividend
This Zacks Rank #2 (Buy) company's board of directors approved a cash dividend of C$0.4125 per share for the third quarter. The dividend amount will be paid on Sep 29 to shareholders of record as of Sep 8. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Guidance
Canadian National continues to expect full-year 2017 earnings per share in the band of C$4.95-C$5.10 compared with C$4.59 a year ago.
Upcoming Releases
Investors interested in the broader transportation space are keenly waiting for second-quarter earnings reports from key players like American Airlines Group, Inc. AAL , Copa Holdings, S.A. CPA and Air Lease Corporation AL . While American Airlines is scheduled to report its second-quarter results on Jul 28, Copa Holdings and Air Lease will report the same on Aug 9 and Aug 3 respectively.
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Copa Holdings, S.A. (CPA): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Air Lease Corporation (AL): 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 space are keenly waiting for second-quarter earnings reports from key players like American Airlines Group, Inc. AAL , Copa Holdings, S.A. CPA and Air Lease Corporation AL . Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. The top line got a boost from increased volumes in segments namely, Canadian Grain and Fertilizers, Overseas Intermodal Traffic, Frac Sand, Coal and Petroleum Coke exports, Crude oil and Finished vehicles.
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Upcoming Releases Investors interested in the broader transportation space are keenly waiting for second-quarter earnings reports from key players like American Airlines Group, Inc. AAL , Copa Holdings, S.A. CPA and Air Lease Corporation AL . Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): 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 Canadian National exited the second quarter with free cash flow of C$811 million compared with C$585 million a year ago.
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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 Air Lease Corporation (AL): 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 space are keenly waiting for second-quarter earnings reports from key players like American Airlines Group, Inc. AAL , Copa Holdings, S.A. CPA and Air Lease Corporation AL . Quarterly revenues of $2474.1 million (C$3,329) surpassed the Zacks Consensus Estimate of $2440.1 million and climbed 12.20% year over year.
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Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air Lease Corporation (AL): 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 space are keenly waiting for second-quarter earnings reports from key players like American Airlines Group, Inc. AAL , Copa Holdings, S.A. CPA and Air Lease Corporation AL . Quarterly revenues of $2474.1 million (C$3,329) surpassed the Zacks Consensus Estimate of $2440.1 million and climbed 12.20% year over year.
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7410.0
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2017-07-25 00:00:00 UTC
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Will High Costs Mar United Parcel's (UPS) Q2 Earnings?
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AAL
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https://www.nasdaq.com/articles/will-high-costs-mar-united-parcels-ups-q2-earnings-2017-07-25
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nan
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nan
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United Parcel ServiceUPS is scheduled to report second-quarter 2017 results on Jul 27, before the market opens.
In the last quarter, the company delivered a positive earnings surprise of 1.54%. It reported earnings of $1.32, beating the Zacks Consensus Estimate of $1.30. Earnings increased 3.9% on a year-over-year basis. Notably, the results were aided by the substantial increase in operating profits at the Supply Chain and Freight unit.
Moreover, revenues improved 6.2% to $15,315 million from the year-ago quarter, beating the Zacks Consensus Estimate of $15,179.5 million.
Let's see what awaits the company in the second quarter.
Factors Likely to Influence this Quarter
We expect the company's bottom line to be hurt by escalated costs in the quarter. As of now, high package delivery costs have been hurting United Parcel for some time, and the to-be-reported quarter is likely to be no different.
Moreover, United Parcel, like its rival FedEx Corporation FDX , is leaving no stone unturned to expand its presence. Though positive on such efforts, we believe that expansion related expenses might also drag down second-quarter earnings.
Foreign currency-related headwinds are expected to hurt the quarter's results too. Additionally, unfavorable product mix and weakness in industrial production might dampen the company's performance.
In fact, the negative sentiment surrounding the stock can be gauged from the 1.4% decline in the Zacks Consensus Estimate for earnings over the last three months. However, the company's efforts to reward shareholders consistently through buybacks and dividend payouts are impressive.
Earnings Whispers
Our proven model does not conclusively show that United Parcel will beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. Unfortunately, this is not the case here as elaborated below.
Zacks ESP: United Parcel has an Earnings ESP of -0.69% as the Most Accurate estimate is $1.45 while the Zacks Consensus Estimate is pegged at $1.46. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: United Parcel carries a Zacks Rank #4 (Sell).
As it is, we caution you against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
United Parcel Service, Inc. Price and EPS Surprise
United Parcel Service, Inc. Price and EPS Surprise | United Parcel Service, Inc. Quote
Stocks to Consider
With United Parcel likely to disappoint, investors interested in the broader Transportation sector may consider other stocks like American Airlines Group, Inc. AAL and Norfolk Southern Corporation NSC , since our model shows that all these possess the right combination of elements to come up with an earnings beat in the next release.
American Airlines has an Earnings ESP of +2.19% and a Zacks Rank #1. The company is slated to release its second-quarter 2017 results on Jul 28. You can see the complete list of today's Zacks #1 Rank stocks here .
Norfolk Southern has an Earnings ESP of +0.61% and a Zacks Rank #2. The company will report its second-quarter 2017 financial numbers on Jul 26.
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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
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Norfolk Souther Corporation (NSC): Free Stock Analysis Report
United Parcel Service, Inc. (UPS): 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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United Parcel Service, Inc. Price and EPS Surprise United Parcel Service, Inc. Price and EPS Surprise | United Parcel Service, Inc. Quote Stocks to Consider With United Parcel likely to disappoint, investors interested in the broader Transportation sector may consider other stocks like American Airlines Group, Inc. AAL and Norfolk Southern Corporation NSC , since our model shows that all these possess the right combination of elements to come up with an earnings beat in the next release. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. Earnings Whispers Our proven model does not conclusively show that United Parcel will beat the Zacks Consensus Estimate this quarter.
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United Parcel Service, Inc. Price and EPS Surprise United Parcel Service, Inc. Price and EPS Surprise | United Parcel Service, Inc. Quote Stocks to Consider With United Parcel likely to disappoint, investors interested in the broader Transportation sector may consider other stocks like American Airlines Group, Inc. AAL and Norfolk Southern Corporation NSC , since our model shows that all these possess the right combination of elements to come up with an earnings beat in the next release. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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United Parcel Service, Inc. Price and EPS Surprise United Parcel Service, Inc. Price and EPS Surprise | United Parcel Service, Inc. Quote Stocks to Consider With United Parcel likely to disappoint, investors interested in the broader Transportation sector may consider other stocks like American Airlines Group, Inc. AAL and Norfolk Southern Corporation NSC , since our model shows that all these possess the right combination of elements to come up with an earnings beat in the next release. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks ESP: United Parcel has an Earnings ESP of -0.69% as the Most Accurate estimate is $1.45 while the Zacks Consensus Estimate is pegged at $1.46.
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United Parcel Service, Inc. Price and EPS Surprise United Parcel Service, Inc. Price and EPS Surprise | United Parcel Service, Inc. Quote Stocks to Consider With United Parcel likely to disappoint, investors interested in the broader Transportation sector may consider other stocks like American Airlines Group, Inc. AAL and Norfolk Southern Corporation NSC , since our model shows that all these possess the right combination of elements to come up with an earnings beat in the next release. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. It reported earnings of $1.32, beating the Zacks Consensus Estimate of $1.30.
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7411.0
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2017-07-24 00:00:00 UTC
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Alaska Air Group (ALK) Q2 Earnings: A Beat in the Cards?
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AAL
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https://www.nasdaq.com/articles/alaska-air-group-alk-q2-earnings%3A-a-beat-in-the-cards-2017-07-24
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nan
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nan
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Alaska Air GroupALK is slated to report second-quarter 2017 financial numbers on Jul 26, before the market opens.
Last quarter, the company delivered a positive earnings surprise of 0.96%. It also has an impressive earnings track record. The company beat the Zacks Consensus Estimate in each of the last four quarters with an average beat of 5.21%.
Why a Likely Positive Surprise?
Our proven model shows that Alaska is likely to beat on earnings this quarter too, since it has the perfect combination of two key ingredients.
Zacks ESP : Earnings ESP , which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +0.40%. This is because the Most Accurate estimate stands at $2.51, whereas the Zacks Consensus Estimate is pegged lower at $2.50. A favorable Zacks ESP serves as a leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Alaska carries a Zacks Rank #2 (Buy). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating estimates.
Meanwhile, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors at Play
The acquisition of Virgin America will continue to augment the company's top line in its second quarter, owing to increased passenger revenues.
The carrier's expansion efforts are also encouraging. In May 2017, the carrier started non-stop flights connecting Philadelphia and Portland, OR to meet the growing demand during summer. The flights have been operating on a daily basis from May 22 and will continue until Aug 26.
The company's traffic results in May and June are also impressive. Consolidated traffic (measured in revenue passenger miles, RPMs) increased 7.6% and 8.3% in May and June, respectively. Additionally, load factor or percentage of seats filled by passengers increased 140 basis points (bps) and 100 bps in May and June respectively, owing to an expansion in traffic growth in excess of capacity expansion.
However, in May 2017, pilots of Horizon Air, a subsidiary of Alaska approved of an amendment to the existing eight-year pay-related contract. This will increase labor costs significantly, thus hurting the bottom line in the second quarter.
Alaska Air Group, Inc. Price and EPS Surprise
Alaska Air Group, Inc. Price and EPS Surprise | Alaska Air Group, Inc. Quote
Others Stocks to Consider
Investors interested in the broader transportation sector may also consider other top-ranked stocks like American Airlines Group, Inc. AAL , Norfolk Southern Corporation NSC and Canadian National Railway Company CNI , since our model shows that all these possess the right combination of elements to come up with an earnings beat in the next release.
American Airlines has an Earnings ESP of +2.19% and a Zacks Rank #1. The company is slated to release its second-quarter 2017 results on Jul 28. You can see the complete list of today's Zacks #1 Rank stocks here .
Norfolk Southern has an Earnings ESP of +0.61% and a Zacks Rank #2. The company will report its second-quarter 2017 financial numbers on Jul 26.
Canadian National Railway has an Earnings ESP of +2.00% and a Zacks Rank #2. The company will release its second-quarter 2017 earnings numbers on Jul 25.
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. Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
Canadian National Railway Company (CNI): Free Stock Analysis Report
Norfolk Souther 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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Alaska Air Group, Inc. Price and EPS Surprise Alaska Air Group, Inc. Price and EPS Surprise | Alaska Air Group, Inc. Quote Others Stocks to Consider Investors interested in the broader transportation sector may also consider other top-ranked stocks like American Airlines Group, Inc. AAL , Norfolk Southern Corporation NSC and Canadian National Railway Company CNI , since our model shows that all these possess the right combination of elements to come up with an earnings beat in the next release. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Alaska Air GroupALK is slated to report second-quarter 2017 financial numbers on Jul 26, before the market opens.
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Alaska Air Group, Inc. Price and EPS Surprise Alaska Air Group, Inc. Price and EPS Surprise | Alaska Air Group, Inc. Quote Others Stocks to Consider Investors interested in the broader transportation sector may also consider other top-ranked stocks like American Airlines Group, Inc. AAL , Norfolk Southern Corporation NSC and Canadian National Railway Company CNI , since our model shows that all these possess the right combination of elements to come up with an earnings beat in the next release. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report Norfolk Souther 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.
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Alaska Air Group, Inc. Price and EPS Surprise Alaska Air Group, Inc. Price and EPS Surprise | Alaska Air Group, Inc. Quote Others Stocks to Consider Investors interested in the broader transportation sector may also consider other top-ranked stocks like American Airlines Group, Inc. AAL , Norfolk Southern Corporation NSC and Canadian National Railway Company CNI , since our model shows that all these possess the right combination of elements to come up with an earnings beat in the next release. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks ESP : Earnings ESP , which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +0.40%.
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Alaska Air Group, Inc. Price and EPS Surprise Alaska Air Group, Inc. Price and EPS Surprise | Alaska Air Group, Inc. Quote Others Stocks to Consider Investors interested in the broader transportation sector may also consider other top-ranked stocks like American Airlines Group, Inc. AAL , Norfolk Southern Corporation NSC and Canadian National Railway Company CNI , since our model shows that all these possess the right combination of elements to come up with an earnings beat in the next release. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Last quarter, the company delivered a positive earnings surprise of 0.96%.
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7412.0
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2017-07-24 00:00:00 UTC
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Is a Beat in Store for Norfolk Southern (NSC) in Q2 Earnings?
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AAL
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https://www.nasdaq.com/articles/is-a-beat-in-store-for-norfolk-southern-nsc-in-q2-earnings-2017-07-24
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nan
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nan
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Virginia-based Norfolk Southern CorporationNSC is scheduled to report second-quarter 2017 results on Jul 26, before the market opens.
Last quarter, the company delivered a positive earnings surprise of 9.63%. It also has an impressive earnings history, beating the Zacks Consensus Estimate in each of the last four quarters with an average beat of 5.04%.
Why a Likely Positive Surprise?
Our proven model shows that Norfolk Southern is likely to beat on earnings this quarter too, since it has the perfect combination of two key ingredients.
Zacks ESP : Earnings ESP , which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +0.61%. This is because the Most Accurate estimate stands at $1.65, whereas the Zacks Consensus Estimate is pegged lower at $1.64. A favorable Zacks ESP serves as a leading indicator of a likely positive earnings surprise. 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 #2 (Buy). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating estimates.
Conversely, all Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
Factors at Play
The company is expected to perform well in the second quarter, driven by improvements in the Coal, Intermodal and Metals & Construction units. Similar to the previous quarter, this improvement is likely to aid overall volume growth in the second quarter as well.
The company's focus on rewarding shareholders through share repurchase and dividends are also appreciative. In April, the company's board cleared a quarterly cash dividend of 61 cents per share.
Norfolk Southern is making constant efforts to streamline its operations in order to increase productivity. Additionally, the company is looking to cut costs, which looks to drive the bottom line in the quarter to be reported.
However, the company's high debt levels might hurt its results in the second quarter.
Norfolk Souther Corporation Price and EPS Surprise
Norfolk Souther Corporation Price and EPS Surprise | Norfolk Souther Corporation Quote
Other Stocks to Consider
Investors interested in the broader transportation sector may also consider other top-ranked stocks like American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these possess the right combination of elements to come up with an earnings beat in the next release.
American Airlines has an Earnings ESP of +2.19% and a Zacks Rank #1. The company is slated to release its second-quarter 2017 results on Jul 28. You can see the complete list of today's Zacks #1 Rank stocks here .
Alaska Air Group has an Earnings ESP of +0.40% and a Zacks Rank #2. The company will report its second-quarter 2017 financial numbers on Jul 26.
Canadian National Railway has an Earnings ESP of +2.00% and a Zacks Rank #2. The company will release its second-quarter 2017 earnings numbers on Jul 25.
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. Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
Canadian National Railway Company (CNI): Free Stock Analysis Report
Norfolk Souther 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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Norfolk Souther Corporation Price and EPS Surprise Norfolk Souther Corporation Price and EPS Surprise | Norfolk Souther Corporation Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider other top-ranked stocks like American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these possess the right combination of elements to come up with an earnings beat in the next release. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Our proven model shows that Norfolk Southern is likely to beat on earnings this quarter too, since it has the perfect combination of two key ingredients.
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Norfolk Souther Corporation Price and EPS Surprise Norfolk Souther Corporation Price and EPS Surprise | Norfolk Souther Corporation Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider other top-ranked stocks like American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these possess the right combination of elements to come up with an earnings beat in the next release. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report Norfolk Souther 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.
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Norfolk Souther Corporation Price and EPS Surprise Norfolk Souther Corporation Price and EPS Surprise | Norfolk Souther Corporation Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider other top-ranked stocks like American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these possess the right combination of elements to come up with an earnings beat in the next release. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks ESP : Earnings ESP , which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +0.61%.
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Norfolk Souther Corporation Price and EPS Surprise Norfolk Souther Corporation Price and EPS Surprise | Norfolk Souther Corporation Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider other top-ranked stocks like American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these possess the right combination of elements to come up with an earnings beat in the next release. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Last quarter, the company delivered a positive earnings surprise of 9.63%.
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7413.0
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2017-07-24 00:00:00 UTC
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What's in Store for Southwest Airlines (LUV) in Q2 Earnings?
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AAL
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https://www.nasdaq.com/articles/whats-in-store-for-southwest-airlines-luv-in-q2-earnings-2017-07-24
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Southwest Airlines Co.LUV is scheduled to report second-quarter 2017 results on Jul 27, before the market opens.
In the first quarter, this low-cost carrier saw a negative earnings surprise of 1.61% owing to high labor costs. Operating revenues of $4,883 million marginally missed the Zacks Consensus Estimate of $4,894.1 million. Revenues, however, increased 1.2% on a year-over-year basis. Let's see what awaits the stock in the second quarter.
Factors Likely at Play
We note that labor costs have spiked due to the recent labor deals inked by the company. This, in turn, is expected to hurt the bottom line in the second quarter as well similar to the previous quarter. In fact, Southwest Airlines expects CASM - excluding fuel and oil expenses, special items and profit sharing expenses - to increase approximately 6% in the to-be-reported quarter on a year-over-year basis.
Currently, labor deals are in vogue in the airline space. Not only Southwest Airlines, but other players in the space like United Continental Holdings UAL and Delta Air Lines DAL have signed deals with various labor groups over the last few months. Additionally, rising fuel costs might also limit bottom-line growth at Southwest Airlines in the quarter.
The company expects operating revenue per available seat miles (RASM) to increase in the band of 1% to 2%. In fact, we are optimistic about the company's efforts to enhance its shareholders' wealth through dividends and share buybacks. Evidently, Southwest Airlines announced that its board of directors approved a new share repurchase program worth $2 billion.
Simultaneously, the company increased its quarterly dividend by 25%. We expect an update on this issue at the second-quarter conference call.
Southwest Airlines Company Price and EPS Surprise
Southwest Airlines Company Price and EPS Surprise | Southwest Airlines Company Quote
Earnings Whispers
Our quantitative model does not conclusively show an earnings beat for Southwest Airlines in this quarter. This is because a stock needs to have combination of two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - to increase its odds of an earnings surprise. However, this is not the case as highlighted below.
Zacks ESP: Southwest Airlines has an Earnings ESP of -1.67% as the Most Accurate estimate of $1.18 per share is pegged at 2 cents below the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Southwest Airlines currently sports a Zacks Rank #1 (Strong Buy), which increases the predictive power of ESP. However, the company's negative ESP makes surprise prediction difficult. You can see the complete list of today's Zacks #1 Rank stocks here.
Note that we caution you against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
A Stock to Consider
With Southwest Airlines likely to disappoint, investors interested in the Airline sector may consider American Airlines Group, Inc. AAL , since our model shows that it possess the right combination of elements to post an earnings beat in its next release.
American Airlines has an Earnings ESP of +2.19% and a Zacks Rank #1. The company is slated to release its second-quarter 2017 results on Jul 28.
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. Click here for the 6 trades >>
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 Company (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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A Stock to Consider With Southwest Airlines likely to disappoint, investors interested in the Airline sector may consider American Airlines Group, Inc. AAL , since our model shows that it possess the right combination of elements to post an earnings beat in its next release. Click to get this free report Southwest Airlines Company (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. Not only Southwest Airlines, but other players in the space like United Continental Holdings UAL and Delta Air Lines DAL have signed deals with various labor groups over the last few months.
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Click to get this free report Southwest Airlines Company (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. A Stock to Consider With Southwest Airlines likely to disappoint, investors interested in the Airline sector may consider American Airlines Group, Inc. AAL , since our model shows that it possess the right combination of elements to post an earnings beat in its next release. Not only Southwest Airlines, but other players in the space like United Continental Holdings UAL and Delta Air Lines DAL have signed deals with various labor groups over the last few months.
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A Stock to Consider With Southwest Airlines likely to disappoint, investors interested in the Airline sector may consider American Airlines Group, Inc. AAL , since our model shows that it possess the right combination of elements to post an earnings beat in its next release. Click to get this free report Southwest Airlines Company (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. Southwest Airlines Company Price and EPS Surprise Southwest Airlines Company Price and EPS Surprise | Southwest Airlines Company Quote Earnings Whispers Our quantitative model does not conclusively show an earnings beat for Southwest Airlines in this quarter.
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A Stock to Consider With Southwest Airlines likely to disappoint, investors interested in the Airline sector may consider American Airlines Group, Inc. AAL , since our model shows that it possess the right combination of elements to post an earnings beat in its next release. Click to get this free report Southwest Airlines Company (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. Simultaneously, the company increased its quarterly dividend by 25%.
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7414.0
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2017-07-24 00:00:00 UTC
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Is Allegiant Travel (ALGT) Likely to Beat on Earnings in Q2?
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AAL
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https://www.nasdaq.com/articles/is-allegiant-travel-algt-likely-to-beat-on-earnings-in-q2-2017-07-24
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Allegiant Travel CompanyALGT is scheduled to report second-quarter earnings numbers on Jul 26, after the market closes .
Last quarter, the company saw a negative earnings surprise of 3.10%. However, it has an impressive earnings history, beating the Zacks Consensus Estimate in the other three preceding quarters. The average beat in the last four quarters was 1.89%.
Let's see how things shape up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that Allegiant is likely to beat on earnings this quarter, since it has the perfect combination of two key ingredients.
Zacks ESP : Earnings ESP , which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +0.34%. This is because the Most Accurate estimate stands at $2.97, whereas the Zacks Consensus Estimate is pegged lower at $2.96. A favorable Zacks ESP serves as a leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Allegiant carries a Zacks Rank #2 (Buy).Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating estimates.
Conversely, all Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
Factors at Play
The company issued a bullish guidance with respect to total revenue per available seat miles (TRASM: a key measure of unit revenues) for the second quarter, while releasing its June traffic results. The metric is expected to grow in the band of 2.7-3.1%, up from its previous guidance of 1.5-3.5%. This significant increase in the lower end of the guidance is very encouraging. The positive sentiment surrounding the stock can be gauged from the fact that the Zacks Consensus Estimate for the quarter has moved up 6.1% in the last one month.
Additionally, we are impressed by Allegiant's efforts to reward its shareholders. The company's efforts to expand are also encouraging. To this end, in Jun 2017, the company announced 28 new routes from the U.S. cities namely, Gulfport, MS; Norfolk, VA and Milwaukee, WI. The flights will be available for as low as $29.
However, we remain mindful of the high labor costs, which might hurtthe bottom line in the second quarter.
Allegiant Travel Company Price and EPS Surprise
Allegiant Travel Company Price and EPS Surprise | Allegiant Travel Company Quote
Other Stocks to Consider
Investors interested in the broader transportation sector may also consider other top-ranked stocks like American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these possess the right combination of elements to come up withan earnings beat in the next release.
American Airlines has an Earnings ESP of +2.19% and a Zacks Rank #1. The company is slated to release its second-quarter 2017 results on Jul 28. You can see the complete list of today's Zacks #1 Rank stocks here .
Alaska Air Group has an Earnings ESP of +0.40% and a Zacks Rank #2. The company will report its second-quarter 2017 financial numbers on Jul 26.
Canadian National Railway has an Earnings ESP of +2.00% and a Zacks Rank #2. The company will release its second-quarter 2017 earnings numbers on Jul 25.
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. Click here for the 6 trades >>
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
Allegiant Travel Company (ALGT): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
Canadian National Railway Company (CNI): 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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Allegiant Travel Company Price and EPS Surprise Allegiant Travel Company Price and EPS Surprise | Allegiant Travel Company Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider other top-ranked stocks like American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these possess the right combination of elements to come up withan earnings beat in the next release. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Allegiant Travel CompanyALGT is scheduled to report second-quarter earnings numbers on Jul 26, after the market closes .
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Allegiant Travel Company Price and EPS Surprise Allegiant Travel Company Price and EPS Surprise | Allegiant Travel Company Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider other top-ranked stocks like American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these possess the right combination of elements to come up withan earnings beat in the next release. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank: Allegiant carries a Zacks Rank #2 (Buy).Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating estimates.
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Allegiant Travel Company Price and EPS Surprise Allegiant Travel Company Price and EPS Surprise | Allegiant Travel Company Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider other top-ranked stocks like American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these possess the right combination of elements to come up withan earnings beat in the next release. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank: Allegiant carries a Zacks Rank #2 (Buy).Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating estimates.
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Allegiant Travel Company Price and EPS Surprise Allegiant Travel Company Price and EPS Surprise | Allegiant Travel Company Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider other top-ranked stocks like American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these possess the right combination of elements to come up withan earnings beat in the next release. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. However, it has an impressive earnings history, beating the Zacks Consensus Estimate in the other three preceding quarters.
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7415.0
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2017-07-21 00:00:00 UTC
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Zacks.com featured highlights: Belden, KEMET, SYNNEX, Applied Optoelectronics, and American Airlines Group
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AAL
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https://www.nasdaq.com/articles/zacks.com-featured-highlights%3A-belden-kemet-synnex-applied-optoelectronics-and-american
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For Immediate Release
Chicago, IL -July 21, 2017 - Stocks in this week's article include Belden Inc. (NYSE: BDC - Free Report ), KEMET Corporation (NYSE: KEM - Free Report ), SYNNEX Corporation (NYSE: SNX - Free Report ), Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ) and American Airlines Group Inc. (LON: AAL - Free Report ).
Gain from These Momentum Stocks Using the Driehaus Strategy
Driehaus strategy is generally used by risk-taking investors who bet on momentum stocks for stupendous returns. Richard Driehaus, the pioneer of momentum investing, developed a "buy high and sell higher" strategy. The success of this strategy earned Driehaus a place in Barron's All-Century Team.
The American Association of Individual Investors (AAII) proved that the strategy has the potential to offer high returns. AAII's portfolio, which was developed following the strategy, returned 13.5% and 18.1% in the five- and 10- year timeframe, respectively, compared with -1.1% and 4.2% returns registered by the S&P 500. Thus, investors with a high risk appetite might give = the Driehaus strategy a thought to boost returns.
A Brief Note on Driehaus' Strategy
Regarding the strategy, Driehaus once said: "I would much rather invest in a stock that's increasing in price and take the risk that it may begin to decline than invest in a stock that's already in a decline and try to guess when it will turn around." In line with his insight, AAII took into account the percentage 50-day moving average as one of the key criteria before designing a portfolio.
It is calculated by dividing the numerator (month-end price minus 50-day moving average of month-end price) by the 50-day moving average of the month-end price. Another momentum indicator - positive relative strength - has also been included. A positive percentage 50-day moving average indicates that the stock is trading at a price higher than its 50-day moving average level, indicating an uptrend.
Moreover, AAII found that Driehaus primarily focused on strong earnings growth rates and impressive earnings projections to pick potential outperformers. Companies with a strong history of beating estimates are also given importance in this strategy, which was made to provide better returns over the long term.
Screening Parameters
In order to make the strategy more profitable, we have considered stocks that have a Zacks Rank #1 (Strong Buy) and a momentum score of 'A' or 'B'. Our research shows that stocks with a Style Score of 'A' or 'B' when combined with a Zacks Rank #1 or 2 offer the best upside potential.
• Zacks Rank equal to #1
(Only Strong Buy-rated stocks can get through. You can see the complete list of today's Zacks #1 Rank stocks here .)
• Last 5-year average EPS growth rates above 2%
(Strong EPS growth history ensures improving business.)
• Trailing 12 month EPS growth higher than 0 and industry median
(Higher EPS growth compared to the industry average indicates superior stocks.)
• Last four-quarter average EPS surprise greater than 5%
(Positive EPS surprise indicates potential.)
• Positive % 50-day moving average and relative strength over 4 weeks
(High % 50-day moving average and relative strength signal uptrend.)
• Momentum Score equal to or less than B
(Favorable momentum score indicates that it is ideal to take advantage of the momentum with the highest probability of success.)
These few parameters narrowed down the universe of over 7,870 stocks to only 12.
Here are five of the 12 stocks that passed the screen:
Belden Inc. (NYSE: BDC - Free Report ) is a designer and marketer of signal transmission solutions globally. The company has a Momentum Score of 'A' and an average four-quarter positive earnings surprise of 7.2%.
KEMET Corporation (NYSE: KEM - Free Report ) is a manufacturer and seller of passive electronic components. The company has a Momentum Score of 'A' and an average four-quarter positive earnings surprise of 72.9%.
SYNNEX Corporation (NYSE: SNX - Free Report ) is a provider of business process services to resellers, system integrators, retailers and original equipment manufacturers. The company has a Momentum Score of 'B' and an average four-quarter positive earnings surprise of 14.8%.
Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ) is a designer, manufacturer and seller of fiber-optic networking products. The company has a Momentum Score of 'A' and an average four-quarter positive earnings surprise of more than 100%.
American Airlines Group Inc. (LON: AAL - Free Report ) is a network air carrier operator. The company has a Momentum Score of 'B' and an average four-quarter positive earnings surprise of 20.2%.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today .
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112
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Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer .
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.
This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit
https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
Belden Inc (BDC): Free Stock Analysis Report
Kemet Corporation (KEM): Free Stock Analysis Report
Synnex Corporation (SNX): Free Stock Analysis Report
Applied Optoelectronics, Inc. (AAOI): 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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For Immediate Release Chicago, IL -July 21, 2017 - Stocks in this week's article include Belden Inc. (NYSE: BDC - Free Report ), KEMET Corporation (NYSE: KEM - Free Report ), SYNNEX Corporation (NYSE: SNX - Free Report ), Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ) and American Airlines Group Inc. (LON: AAL - Free Report ). American Airlines Group Inc. (LON: AAL - Free Report ) is a network air carrier operator. Get the full Report on BDC - FREE Get the full Report on KEM - FREE Get the full Report on SNX - FREE Get the full Report on AAOI - FREE Get the full Report on AAL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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For Immediate Release Chicago, IL -July 21, 2017 - Stocks in this week's article include Belden Inc. (NYSE: BDC - Free Report ), KEMET Corporation (NYSE: KEM - Free Report ), SYNNEX Corporation (NYSE: SNX - Free Report ), Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ) and American Airlines Group Inc. (LON: AAL - Free Report ). Get the full Report on BDC - FREE Get the full Report on KEM - FREE Get the full Report on SNX - FREE Get the full Report on AAOI - FREE Get the full Report on AAL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Belden Inc (BDC): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report Synnex Corporation (SNX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): 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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For Immediate Release Chicago, IL -July 21, 2017 - Stocks in this week's article include Belden Inc. (NYSE: BDC - Free Report ), KEMET Corporation (NYSE: KEM - Free Report ), SYNNEX Corporation (NYSE: SNX - Free Report ), Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ) and American Airlines Group Inc. (LON: AAL - Free Report ). Get the full Report on BDC - FREE Get the full Report on KEM - FREE Get the full Report on SNX - FREE Get the full Report on AAOI - FREE Get the full Report on AAL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Belden Inc (BDC): Free Stock Analysis Report Kemet Corporation (KEM): Free Stock Analysis Report Synnex Corporation (SNX): Free Stock Analysis Report Applied Optoelectronics, Inc. (AAOI): 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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For Immediate Release Chicago, IL -July 21, 2017 - Stocks in this week's article include Belden Inc. (NYSE: BDC - Free Report ), KEMET Corporation (NYSE: KEM - Free Report ), SYNNEX Corporation (NYSE: SNX - Free Report ), Applied Optoelectronics, Inc. (NASDAQ: AAOI - Free Report ) and American Airlines Group Inc. (LON: AAL - Free Report ). American Airlines Group Inc. (LON: AAL - Free Report ) is a network air carrier operator. Get the full Report on BDC - FREE Get the full Report on KEM - FREE Get the full Report on SNX - FREE Get the full Report on AAOI - FREE Get the full Report on AAL - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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7416.0
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2017-07-21 00:00:00 UTC
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Will Trinity Industries (TRN) Disappoint in Q2 Earnings?
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AAL
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https://www.nasdaq.com/articles/will-trinity-industries-trn-disappoint-in-q2-earnings-2017-07-21
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Dallas, TX-based Trinity Industries Inc.TRN provides products and services to the energy, transportation, chemical and construction sectors, across the globe. The company is scheduled to report second-quarter 2017 results on Jul 25, after market close.
In the first quarter of 2017, the company had delivered a positive earnings surprise of 7.14%. Moreover, its earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average beat of 16.62%. Let's see how things are shaping up for this announcement.
Factors Likely at Play
We expect Trinity Industries to continue struggling on the top-line front in the to-be-reported quarter just like the previous quarter. Weak market conditions as well as sluggish demand for railcars are expected to weigh on the results this quarter. High costs and adverse foreign currency movement may also prove to be detrimental.
In fact, the Rail Group segment that recorded disastrous results in the first quarter, is expected to continue its poor run in the second quarter as well. Also, the Inland Barge Group might come up with a below-par performance, mainly due to lower barge deliveries and changes in product mix.
Additionally, the Energy Equipment Group might perform poorly in the quarter mainly due to lower delivery volumes. However, the company's efforts to reward shareholders are encouraging. During the second quarter, the company also increased its quarterly dividend by 18%.
Trinity Industries, Inc. Price and EPS Surprise
Trinity Industries, Inc. Price and EPS Surprise | Trinity Industries, Inc. Quote
Earnings Whispers
Our quantitative model doesn't point to an earnings beat this time. Here's why:
Trinity Industries doesn't have the right combination of the two key ingredients - a positive Earnings ESP and a Zacks Rank #3 (Hold) or better - for increasing the odds of an earnings beat.
Zacks ESP: Trinity Industries has an Earnings ESP of -6.45%. This is because the Most Accurate estimate of 29 cents is lower than the Zacks Consensus Estimate by 2 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Trinity Industries carries a Zacks Rank #2 (Buy), but this alone isn't enough to increase the chance of an earnings beat.
Note that we caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) while going into an earnings announcement.
Stocks to Consider
With Trinity Industries likely to disappoint, investors interested in the broader transportation sector may consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases.
American Airlines has an Earnings ESP of +2.19% and a Zacks Rank #1 (Strong Buy). The company is slated to release its second-quarter 2017 results on Jul 28. You can see the complete list of today's Zacks #1 Rank stocks here .
Alaska Air Group has an Earnings ESP of +0.40% and a Zacks Rank #2. The company will report its second-quarter 2017 financial numbers on Jul 26.
Canadian National Railway has an Earnings ESP of +2.02% and a Zacks Rank #2. The company will release its second-quarter 2017 earnings numbers on Jul 25.
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
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
Trinity Industries, Inc. (TRN): 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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Stocks to Consider With Trinity Industries likely to disappoint, investors interested in the broader transportation sector may consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Trinity Industries, Inc. (TRN): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Dallas, TX-based Trinity Industries Inc.TRN provides products and services to the energy, transportation, chemical and construction sectors, across the globe.
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Stocks to Consider With Trinity Industries likely to disappoint, investors interested in the broader transportation sector may consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Trinity Industries, Inc. (TRN): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Trinity Industries, Inc. Price and EPS Surprise Trinity Industries, Inc. Price and EPS Surprise | Trinity Industries, Inc. Quote Earnings Whispers Our quantitative model doesn't point to an earnings beat this time.
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Stocks to Consider With Trinity Industries likely to disappoint, investors interested in the broader transportation sector may consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Trinity Industries, Inc. (TRN): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Trinity Industries, Inc. Price and EPS Surprise Trinity Industries, Inc. Price and EPS Surprise | Trinity Industries, Inc. Quote Earnings Whispers Our quantitative model doesn't point to an earnings beat this time.
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Stocks to Consider With Trinity Industries likely to disappoint, investors interested in the broader transportation sector may consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Trinity Industries, Inc. (TRN): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. During the second quarter, the company also increased its quarterly dividend by 18%.
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7417.0
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2017-07-21 00:00:00 UTC
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Canadian National (CNI) Q2 Earnings: A Beat in the Cards?
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AAL
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https://www.nasdaq.com/articles/canadian-national-cni-q2-earnings%3A-a-beat-in-the-cards-2017-07-21
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nan
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nan
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Canadian National Railway CompanyCNI is scheduled to report second-quarter 2017 results on Jul 25, after the market closes .
Last quarter, the company delivered a positive earnings surprise of 4.76%. Also, the company beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average positive surprise of 3.45%.
Let's see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that Canadian National Railway is likely to beat estimates this quarter because it has the perfect combination of two key ingredients.
Zacks ESP: The Earnings ESP for Canadian National Railway is +2.02% as the Most Accurate estimate is pegged at $1.01, while the Zacks Consensus Estimate stands at 99 cents. A favorable Zacks ESP serves as a leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Canadian National Railway carries a Zacks Rank #2 (Buy). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of an earnings beat.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
Factors at Play
The company is expected to perform well in the second quarter, driven by an improvement in the coal-related scenario which should aid overall volumes. This can be gauged from the fact that the Zacks Consensus Estimate for the quarter has increased 3.1% in the last month.
The company's efforts to reward shareholders through dividend payments and share buybacks are also impressive. The company's board approved of a quarterly cash dividend of C41.25 cents per share in Apr 2017.
The company received good news on the labor front, when the International Brotherhood of Electrical Workers (IBEW) ratified a five-year collective labor deal in April, this year.
Additionally in Apr 2017, the company announced a $2.6 billion capital investment plan. The plan complements its efforts to promote safety and enhance productivity. This is another positive, expected to aid the second-quarter results.
However, the company's high-debt levels coupled with a rise in fuel costs might hurt the bottom line in the second quarter.
Canadian National Railway Company Price and EPS Surprise
Canadian National Railway Company Price and EPS Surprise | Canadian National Railway Company Quote
Other Stocks to Consider
Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Allegiant Travel Company ALGT , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases.
American Airlines has an Earnings ESP of +2.19% and a Zacks Rank #1. The company is slated to release its second-quarter 2017 results on Jul 28. You can see the complete list of today's Zacks #1 Rank stocks here .
Alaska Air Group has an Earnings ESP of +0.40% and a Zacks Rank #2. The company will report its second-quarter 2017 financial numbers on Jul 26.
Allegiant Travel Company has an Earnings ESP of +0.34% and a Zacks Rank #2. The company will release its second-quarter results on Jul 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
Allegiant Travel Company (ALGT): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): 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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Canadian National Railway Company Price and EPS Surprise Canadian National Railway Company Price and EPS Surprise | Canadian National Railway Company Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Allegiant Travel Company ALGT , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Our proven model shows that Canadian National Railway is likely to beat estimates this quarter because it has the perfect combination of two key ingredients.
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Canadian National Railway Company Price and EPS Surprise Canadian National Railway Company Price and EPS Surprise | Canadian National Railway Company Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Allegiant Travel Company ALGT , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank: Canadian National Railway carries a Zacks Rank #2 (Buy).
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Canadian National Railway Company Price and EPS Surprise Canadian National Railway Company Price and EPS Surprise | Canadian National Railway Company Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Allegiant Travel Company ALGT , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks ESP: The Earnings ESP for Canadian National Railway is +2.02% as the Most Accurate estimate is pegged at $1.01, while the Zacks Consensus Estimate stands at 99 cents.
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Canadian National Railway Company Price and EPS Surprise Canadian National Railway Company Price and EPS Surprise | Canadian National Railway Company Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Allegiant Travel Company ALGT , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Additionally in Apr 2017, the company announced a $2.6 billion capital investment plan.
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7418.0
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2017-07-21 00:00:00 UTC
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Ryder System (R) to Report Q2 Earnings: Is a Beat in Store?
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AAL
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https://www.nasdaq.com/articles/ryder-system-r-to-report-q2-earnings%3A-is-a-beat-in-store-2017-07-21
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nan
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nan
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Florida-based Ryder System, Inc.R , one of the world's largest providers of integrated logistics and transportation solutions, is scheduled to report second-quarter 2017 results on Jul 26, before the market opens.
Last quarter, the company's earnings failed to surpass the Zacks Consensus Estimate by a substantial 2.4%. Ryder has outpaced estimates in two of the past four quarters, with an average earnings miss of 5.9%.
Let's see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that Ryder is likely to beat earnings because it has the perfect combination of the two key ingredients.
Zacks ESP: Ryder has an Earnings ESP of +3.23%. This is because the Most Accurate estimate stands at 96 cents, higher than the Zacks Consensus Estimate of 93 cents. A positive Earnings ESP is a meaningful and leading indicator of a likely positive earnings surprise.
Zacks Rank: Ryder holds a Zacks Rank #2 (Buy), which increases the predictive power of the ESP. Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating estimates.
However, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
The combination of the company's Zacks Rank #2 and +3.23% ESP makes us reasonably confident of a positive earnings beat on Jul 26.
Ryder System, Inc. Price and EPS Surprise
Ryder System, Inc. Price and EPS Surprise | Ryder System, Inc. Quote
Reasons for Better-than-Expected Earnings
The company's efforts to grow its lease fleet are impressive. The continuous rise in ChoiceLease revenues is encouraging, which is driving growth at Ryder's primary division - Fleet Management Solutions. The company is poised to achieve or even exceed its 2017 guidance for lease fleet growth of 3,500 vehicles.
Ryder's efforts to reward its shareholders through dividend payments look promising. In Jul 2016, the company hiked its quarterly cash dividend by 7.3% to $0.44 per share. This was the twelfth hike by the company since 2005. It continues to boost shareholders wealth by paying uninterrupted dividend for more than 40 years.
The company's strong customer base is also a positive. Moving ahead, we believe Ryder's top line in the second quarter should benefit from a strong product portfolio.
However, softness pertaining to commercial rental demand might hurt overall results. Furthermore, the demand for used vehicles is expected to remain soft until mid-2018. The company's high debt levels also raise concerns.
The price performance of Ryder System was depressing for the last six months. The stock witnessed a loss of 3.2% as opposed to 6.9% growth of its industry .
Other Stocks to Consider
Here are some other companies from the above industry you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:
Skywest, Inc, SKYW has an earnings ESP of +3.45% and holds a Zacks Rank #1. It is scheduled to release second-quarter 2017 results on Jul 27.
Copa Holdings, S.A. CPA has an earnings ESP of +5.04% and sports a Zacks Rank #2. The company is scheduled to release second-quarter 2017 results on Aug 9.
American Airlines Group, Inc. AAL has an earnings ESP of +2.19% and carries a Zacks Rank #1. The company is expected to release second-quarter 2017 results on Jul 28.
You can see the complete list of today's Zacks #1 Rank stocks here .
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
SkyWest, Inc. (SKYW): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): 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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American Airlines Group, Inc. AAL has an earnings ESP of +2.19% and carries a Zacks Rank #1. Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Ryder System, Inc. (R): Free Stock Analysis Report To read this article on Zacks.com click here. Florida-based Ryder System, Inc.R , one of the world's largest providers of integrated logistics and transportation solutions, is scheduled to report second-quarter 2017 results on Jul 26, before the market opens.
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Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Ryder System, Inc. (R): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group, Inc. AAL has an earnings ESP of +2.19% and carries a Zacks Rank #1. Zacks Rank: Ryder holds a Zacks Rank #2 (Buy), which increases the predictive power of the ESP.
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Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Ryder System, Inc. (R): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group, Inc. AAL has an earnings ESP of +2.19% and carries a Zacks Rank #1. Ryder System, Inc. Price and EPS Surprise Ryder System, Inc. Price and EPS Surprise | Ryder System, Inc. Quote Reasons for Better-than-Expected Earnings The company's efforts to grow its lease fleet are impressive.
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American Airlines Group, Inc. AAL has an earnings ESP of +2.19% and carries a Zacks Rank #1. Click to get this free report Copa Holdings, S.A. (CPA): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Ryder System, Inc. (R): Free Stock Analysis Report To read this article on Zacks.com click here. However, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
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7419.0
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2017-07-21 00:00:00 UTC
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Is Hawaiian Holdings (HA) Likely to Beat Earnings in Q2?
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AAL
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https://www.nasdaq.com/articles/is-hawaiian-holdings-ha-likely-to-beat-earnings-in-q2-2017-07-21
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nan
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nan
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Hawaiian Holdings Inc.HA is slated to release second-quarter 2017 earnings numbers on Jul 25, after the market closes .
Last quarter, the company delivered a positive earnings surprise of 20.93%. Also, it has an impressive earnings history, beating the Zacks Consensus Estimate in three of the last four quarters at an average of 7.76%.
Why a Likely Positive Surprise?
Our proven model shows that Hawaiian Holdings is likely to beat on earnings this quarter too, since it has the perfect combination of two key ingredients:
Zacks ESP : Earnings ESP , which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +5.23%. This is because the Most Accurate estimate stands at $1.61, whereas the Zacks Consensus Estimate is pegged lower at $1.53. A favorable Zacks ESP serves as a leading indicator of a likely positive 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). Please note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating estimates.
Conversely, Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
Factors at Play
The company's improvement in the unit revenue scenario is expected to aid results in the second quarter. In June,the carrier raised its second quarter projection pertaining to the revenue per ASM (RASM: a key measure of unit revenue) due to better-than-expected yields mainly in the domestic network. Additionally, fuel cost per gallon (economic) is now projected in the band of $1.6--$1.7 (earlier range was tuned at $1.65-$1.75) in the second quarter of 2017.
Hawaiian Holdings' growth is supported by strong demand for air travel to Hawaii. Also, the carrier's efforts to expand internationally raise positivity. Also, it has an impressive track record with respect to punctuality. The company's second-quarter results are expected to get a boost from these factors.
However, similar to the previous quarter, higher costs are likely to hurt the company's bottom line in the second quarter as well. In addition, consolidated CASM (excluding fuel) is projected to increase significantly in the quarter to be reported.
Hawaiian Holdings, Inc. Price and EPS Surprise
Hawaiian Holdings, Inc. Price and EPS Surprise | Hawaiian Holdings, Inc. Quote
Other Stocks to Consider
Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI since our model shows that all these stocks possess the right combination of elements to post an earnings beat in the next release.
American Airlines has an Earnings ESP of +2.19% and a Zacks Rank #1. The company is slated to release its second-quarter 2017 results on Jul 28. You can see the complete list of today's Zacks #1 Rank stocks here .
Alaska Air Group has an Earnings ESP of +0.40% and a Zacks Rank #2. The company will report its second-quarter 2017 financial numbers on Jul 26.
Canadian National Railway has an Earnings ESP of +2.02% and a Zacks Rank #2. The company will release its second-quarter 2017 earnings numbers on Jul 25.
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
Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): 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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Hawaiian Holdings, Inc. Price and EPS Surprise Hawaiian Holdings, Inc. Price and EPS Surprise | Hawaiian Holdings, Inc. Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI since our model shows that all these stocks possess the right combination of elements to post an earnings beat in the next release. Click to get this free report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Factors at Play The company's improvement in the unit revenue scenario is expected to aid results in the second quarter.
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Hawaiian Holdings, Inc. Price and EPS Surprise Hawaiian Holdings, Inc. Price and EPS Surprise | Hawaiian Holdings, Inc. Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI since our model shows that all these stocks possess the right combination of elements to post an earnings beat in the next release. Click to get this free report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Please note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating estimates.
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Hawaiian Holdings, Inc. Price and EPS Surprise Hawaiian Holdings, Inc. Price and EPS Surprise | Hawaiian Holdings, Inc. Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI since our model shows that all these stocks possess the right combination of elements to post an earnings beat in the next release. Click to get this free report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Our proven model shows that Hawaiian Holdings is likely to beat on earnings this quarter too, since it has the perfect combination of two key ingredients: Zacks ESP : Earnings ESP , which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +5.23%.
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Hawaiian Holdings, Inc. Price and EPS Surprise Hawaiian Holdings, Inc. Price and EPS Surprise | Hawaiian Holdings, Inc. Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI since our model shows that all these stocks possess the right combination of elements to post an earnings beat in the next release. Click to get this free report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Last quarter, the company delivered a positive earnings surprise of 20.93%.
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7420.0
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2017-07-20 00:00:00 UTC
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JetBlue Airways (JBLU) Q2 Earnings: A Beat in the Cards?
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AAL
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https://www.nasdaq.com/articles/jetblue-airways-jblu-q2-earnings%3A-a-beat-in-the-cards-2017-07-20
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nan
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nan
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JetBlue Airways CorporationJBLU is scheduled to report second-quarter 2017 results on Jul 25, before the market opens.
Last quarter, the company delivered a positive earnings surprise of 4.17%. Also, it has an impressive earnings history, beating the Zacks Consensus Estimate in three of the last four quarters with an average beat of 2.76%.
Why a Likely Positive Surprise?
Our proven model shows that JetBlue is likely to beat on earnings this quarter as well on the back of its perfect combination of two key ingredients.
Zacks ESP : Earnings ESP , which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is pegged at +5.46%. This is because the Most Accurate estimate is pegged at 58 cents per share, whereas the Zacks Consensus Estimate stands lower at 55 cents. This serves as a leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: JetBlue currently carries a Zacks Rank #2 (Buy). Note that stocks with Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating earnings estimates. Conversely, Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
The combination of JetBlue's Zacks Rank #2 and an ESP of +5.46% makes us reasonably confident of an earnings beat at the same time around.
What is Driving the Better-than-Expected Earnings?
The improved unit revenue scenario should aid JetBlue's second-quarter results. The positive sentiment regarding the stock can be gauged from the 7.8% increase in the Zacks Consensus Estimate for the second quarter to 55 cents per share over the last seven days.In May 2017, the carrier issued a bullish view on revenue per available seat mile (RASM: a key measure of unit revenue) for the second quarter of 2017. The company expects RASM to grow in the band of 4-6%. Capacity in the second quarter is also expected to grow in the same range.
JetBlue's expansion efforts are also appreciative. The company announced enhanced flight service between Fort Lauderdale-Hollywood International Airport and Mexico City International Airport (MEX) as well as between Orlando International Airport and MEX in May this year. JetBlue aims to increase flights to four daily roundtrips between Mexico City and the U.S. - two each on the Fort Lauderdale and Orlando routes.
The carrier's efforts to reduce debt levels are also impressive. Additionally, its cost control measures will aid the second-quarter results. The airline entered into a deal with Goldman Sachs in Apr 2017 to implement an accelerated share buyback program. This is a further positive which is expected to drive the second-quarter results.
However, high labor costs are expected to hurt the bottom line in second-quarter 2017. Cost per available seat miles (CASM: excluding fuel) is anticipated to grow in the band of 4.5-6.5% in the quarter.
JetBlue Airways Corporation Price and EPS Surprise
JetBlue Airways Corporation Price and EPS Surprise | JetBlue Airways Corporation Quote
Other Stocks to Consider
Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases.
American Airlines has an Earnings ESP of +2.19% and a Zacks Rank #1. The company is slated to release its second-quarter 2017 results on Jul 28. You can see the complete list of today's Zacks #1 Rank stocks here .
Alaska Air Group has anEarnings ESP of +0.40% and a Zacks Rank #2. The company will report its second-quarter 2017 financial numbers on Jul 26.
Canadian National Railway has anEarnings ESP of +2.02% and a Zacks Rank #2. The company will release its second-quarter 2017 earnings numbers on Jul 25.
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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
Canadian National Railway Company (CNI): 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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JetBlue Airways Corporation Price and EPS Surprise JetBlue Airways Corporation Price and EPS Surprise | JetBlue Airways Corporation Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases. 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 Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Note that stocks with Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating earnings estimates.
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JetBlue Airways Corporation Price and EPS Surprise JetBlue Airways Corporation Price and EPS Surprise | JetBlue Airways Corporation Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases. 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 Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. The company announced enhanced flight service between Fort Lauderdale-Hollywood International Airport and Mexico City International Airport (MEX) as well as between Orlando International Airport and MEX in May this year.
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JetBlue Airways Corporation Price and EPS Surprise JetBlue Airways Corporation Price and EPS Surprise | JetBlue Airways Corporation Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases. 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 Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. The positive sentiment regarding the stock can be gauged from the 7.8% increase in the Zacks Consensus Estimate for the second quarter to 55 cents per share over the last seven days.In May 2017, the carrier issued a bullish view on revenue per available seat mile (RASM: a key measure of unit revenue) for the second quarter of 2017.
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JetBlue Airways Corporation Price and EPS Surprise JetBlue Airways Corporation Price and EPS Surprise | JetBlue Airways Corporation Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases. 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 Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. The positive sentiment regarding the stock can be gauged from the 7.8% increase in the Zacks Consensus Estimate for the second quarter to 55 cents per share over the last seven days.In May 2017, the carrier issued a bullish view on revenue per available seat mile (RASM: a key measure of unit revenue) for the second quarter of 2017.
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7421.0
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2017-07-20 00:00:00 UTC
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Zacks Investment Ideas feature highlights: Southwest, American Airlines and Deutsche Lufthansa
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AAL
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https://www.nasdaq.com/articles/zacks-investment-ideas-feature-highlights%3A-southwest-american-airlines-and-deutsche
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nan
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nan
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For Immediate Release
Chicago, IL -July 20, 2017 - Today, Zacks Investment Ideas feature highlights Features: Southwest (NYSE: LUV- Free Report ), American Airlines (LON: AAL- Free Report ) and Deutsche Lufthansa (OTCMKTS: DLAKY- Free Repor )
Soaring Stock in a High-Flying Industry
The internet never forgets and investors tend to have long memories as well. That is why I was hesitant to write about a sector that historically hasn't been so kind to investors. Of the 22 stocks in this industry, there are 9 that carry a Zacks Rank #1 (Strong Buy) which has to be some kind of record.
Now before we go any further, know that this article doesn't come with any extra fees for bags. I won't eject you from this site and forcibly remove you from your seat. The delays you experience will be more about your computer or internet provider (although the Zacks website isn't the fastest). So buckle up and be aware that your closest exit might be behind you.
The Friendly Skies?
Lately, the friendly skies haven't been so friendly. Aside from the removal of passenger by force, there was a recent dust up from a conservative pundit. Selecting your seat seems to be the new way the airlines are using to drum up fees, but at the end of the day, higher fees often mean higher earnings.
Earnings estimates are the driving force behind the Zack Rank and with so many airlines getting positive estimate revisions we end of with the industry soaring the top 3% of all industries.
With 20% returns YTD for the group, let's take a look at a few of the high fliers. Follow Brian Bolan on Twitter: @BBolan1
Southwest
Southwest (NYSE: LUV- Free Report ) is a Zacks Rank #1 (Strong Buy) and has some great style score, with a B for value and an A for growth. The company has a so-so record when it comes to a recent earnings history with two beats and two misses of the Zacks Consensus Estimate. That is a factor in the Zacks Rank, but not nearly as important as the number of positive revisions.
When I look at the agreement section of the detailed estimates page ( https://www.zacks.com/stock/quote/LUV/detailed-estimates ) all I see is a blizzard of positive estimate revisions in 7, 30 and 60 days. The Zacks Consensus Estimate for this year has moved from $3.76 to $3.90 over the last 90 days. At the same time the Zacks Consensus Estimate for 2018 moved from $4.57 to $4.80.
LUV trades at 16x forward earnings and 18x trailing earnings. A price to sales multiple of 1.8x is also right in line with the industry average.
Southwest Airlines Company Price and Consensus | Southwest Airlines Company Quote
I Am a Real American
When Hulk Hogan made his way to the squared circle, also known as the wrestling ring, his theme song had a chorus of "I am a real American." Hulk is strong and my leads-ins are weak, but the earnings estimate revisions for American Airlines (LON: AAL- Free Report ) have been strong.
AAL is a Zacks Rank #1 (Strong Buy) and I like this play a lot as it has a positive earnings ESP. This tells me that an analyst has very recently increased estimates over the consensus and analyst that do that with just a week or so before earnings are telling you they are confident in an upcoming beat. The logic is simple, the analyst that waits the longest to publish numbers or update their model has the most information on the quarter.
The Zacks Consensus Estimate for the coming quarter has been moving higher. The number has soared to $1.82 from $1.56 just 90 days ago. Along the way there were more than 17 earnings estimate revision to the upside. That is a lot of confidence in the quarter.
American Airlines Group, Inc. Price and Consensus | American Airlines Group, Inc. Quote
A Great Chart
In looking at the chart for the last three months I almost drooled on the keyboard. Deutsche Lufthansa (OTCMKTS: DLAKY- Free Report ) is also a Zacks Rank #1 (Strong Buy) that has an A for value and a D for growth.
I don't want to go too deep into this stock, but clearly, when a German airline is seeing positive estimate revisions as well as a number of our domestic airlines, you know you have a strong sector rotation at hand.
This stock has really soared since the start of the year and you can see on this chart how the earnings estimate revision have been the thrust beneath this stocks wings.
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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
Southwest Airlines Company (LUV): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Deutsche Lufthansa AG (DLAKY): 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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For Immediate Release Chicago, IL -July 20, 2017 - Today, Zacks Investment Ideas feature highlights Features: Southwest (NYSE: LUV- Free Report ), American Airlines (LON: AAL- Free Report ) and Deutsche Lufthansa (OTCMKTS: DLAKY- Free Repor ) Soaring Stock in a High-Flying Industry The internet never forgets and investors tend to have long memories as well. Hulk is strong and my leads-ins are weak, but the earnings estimate revisions for American Airlines (LON: AAL- Free Report ) have been strong. AAL is a Zacks Rank #1 (Strong Buy) and I like this play a lot as it has a positive earnings ESP.
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For Immediate Release Chicago, IL -July 20, 2017 - Today, Zacks Investment Ideas feature highlights Features: Southwest (NYSE: LUV- Free Report ), American Airlines (LON: AAL- Free Report ) and Deutsche Lufthansa (OTCMKTS: DLAKY- Free Repor ) Soaring Stock in a High-Flying Industry The internet never forgets and investors tend to have long memories as well. See the pot trades we're targeting>> Get the full Report on LUV - FREE Get the full Report on AAL - FREE Get the full Report on DLAKY - FREE Follow us on Twitter: https://twitter.com/ZacksResearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL -July 20, 2017 - Today, Zacks Investment Ideas feature highlights Features: Southwest (NYSE: LUV- Free Report ), American Airlines (LON: AAL- Free Report ) and Deutsche Lufthansa (OTCMKTS: DLAKY- Free Repor ) Soaring Stock in a High-Flying Industry The internet never forgets and investors tend to have long memories as well. See the pot trades we're targeting>> Get the full Report on LUV - FREE Get the full Report on AAL - FREE Get the full Report on DLAKY - FREE Follow us on Twitter: https://twitter.com/ZacksResearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL -July 20, 2017 - Today, Zacks Investment Ideas feature highlights Features: Southwest (NYSE: LUV- Free Report ), American Airlines (LON: AAL- Free Report ) and Deutsche Lufthansa (OTCMKTS: DLAKY- Free Repor ) Soaring Stock in a High-Flying Industry The internet never forgets and investors tend to have long memories as well. Hulk is strong and my leads-ins are weak, but the earnings estimate revisions for American Airlines (LON: AAL- Free Report ) have been strong. AAL is a Zacks Rank #1 (Strong Buy) and I like this play a lot as it has a positive earnings ESP.
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7422.0
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2017-07-20 00:00:00 UTC
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Do Airline Stocks Have More Room to Run?
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AAL
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https://www.nasdaq.com/articles/do-airline-stocks-have-more-room-run-2017-07-20
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nan
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nan
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A Midsummer Night's Dream! Time to travel to the lakes, the beach, and the mountains. The Airline Transportation industry is what caught my attention in July. Zacks Industry Rank System put Airlines at #13 out of 265 industries we rank. That puts this 25-company strong group into the top 5%.YTD returns have been +19.8%, while the S&P500 offered +10.8%. This spells out a nice share price outperformance. But can it continue?
The airline industry shoulders a lot of significant risks. Macro factors like sudden shifts in personal disposable income and spending patterns, safety concerns like terrorist attacks, oil price shocks, and covering analyst sentiment, all of these can turn quickly. They weigh on airline profits.
In addition, the USA "welcome mat" has been selectively removed from our airports, gratis the President's Travel Ban. The world's tourists (more broadly) have taken notice. In March, Tourism Economics forecasts had projected 4.3 million fewer visitors to the USA in 2017, with $7.4 billion in lost revenue. Let's see what actually happens. The U.S. Supreme Court will hear arguments and write its opinion on the travel ban later this year, or early next year.
As to longer-term risk management --going forward-- look for order deferrals on large aircraft. This is not usually a good sign, on future demand at that particular airline.
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 Company (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Air France-KLM SA (AFLYY): 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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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Macro factors like sudden shifts in personal disposable income and spending patterns, safety concerns like terrorist attacks, oil price shocks, and covering analyst sentiment, all of these can turn quickly. In addition, the USA "welcome mat" has been selectively removed from our airports, gratis the President's Travel Ban.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): 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 System put Airlines at #13 out of 265 industries we rank. 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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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): 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 System put Airlines at #13 out of 265 industries we rank. 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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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): 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 System put Airlines at #13 out of 265 industries we rank. The airline industry shoulders a lot of significant risks.
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7423.0
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2017-07-19 00:00:00 UTC
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Soaring Stocks In A High Flying Industry
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AAL
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https://www.nasdaq.com/articles/soaring-stocks-high-flying-industry-2017-07-19
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nan
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nan
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The internet never forgets and investors tend to have long memories as well. That is why I was hesitant to write about a sector that historically hasn't been so kind to investors. Of the 22 stocks in this industry, there are 9 that carry a Zacks Rank #1 (Strong Buy) which has to be some kind of record.
Now before we go any further, know that this article doesn't come with any extra fees for bags. I won't eject you from this site and forcibly remove you from your seat. The delays you experience will be more about your computer or internet provider (although the Zacks website isn't the fastest). So buckle up and be aware that your closest exit might be behind you.
The Friendly Skies?
Lately, the friendly skies haven't been so friendly. Aside from the removal of passenger by force, there was a recent dust up from a conservative pundit. Selecting your seat seems to be the new way the airlines are using to drum up fees, but at the end of the day, higher fees often mean higher earnings.
Earnings estimates are the driving force behind the Zack Rank and with so many airlines getting positive estimate revisions we end of with the industry soaring the top 3% of all industries.
With 20% returns YTD for the group, let's take a look at a few of the high fliers.
Follow Brian Bolan on Twitter: @BBolan1
Southwest
Southwest (LUV) is a Zacks Rank #1 (Strong Buy) and has some great style score, with a B for value and an A for growth. The company has a so-so record when it comes to a recent earnings history with two beats and two misses of the Zacks Consensus Estimate. That is a factor in the Zacks Rank, but not nearly as important as the number of positive revisions.
When I look at the agreement section of the detailed estimates page ( https://www.zacks.com/stock/quote/LUV/detailed-estimates ) all I see is a blizzard of positive estimate revisions in 7, 30 and 60 days. The Zacks Consensus Estimate for this year has moved from $3.76 to $3.90 over the last 90 days. At the same time the Zacks Consensus Estimate for 2018 moved from $4.57 to $4.80.
LUV trades at 16x forward earnings and 18x trailing earnings. A price to sales multiple of 1.8x is also right in line with the industry average.
Southwest Airlines Company Price and Consensus
Southwest Airlines Company Price and Consensus | Southwest Airlines Company Quote
I Am A Real American
When Hulk Hogan made his way to the squared circle, also known as the wrestling ring, his theme song had a chorus of "I am a real American." Hulk is strong and my leads ins are weak, but the earnings estimate revisions for American Airlines (AAL) have been strong.
AAL is a Zacks Rank #1 (Strong Buy) and I like this play a lot as it has a positive earnings ESP. This tells me that an analyst has very recently increased estimates over the consensus and analyst that do that with just a week or so before earnings are telling you they are confident in an upcoming beat. The logic is simple, the analyst that waits the longest to publish numbers or update their model has the most information on the quarter.
The Zacks Consensus Estimate for the coming quarter has been moving higher. The number has soared to $1.82 from $1.56 just 90 days ago. Along the way there were more than 17 earnings estimate revision to the upside. That is a lot of confidence in the quarter.
American Airlines Group, Inc. Price and Consensus
American Airlines Group, Inc. Price and Consensus | American Airlines Group, Inc. Quote
A Great Chart
In looking at the chart for the last three months I almost drooled on the keyboard. Deutsche Lufthansa (DLAKY) is also a Zacks Rank #1 (Strong Buy) that has an A for value and a D for growth.
I don't want to go too deep into this stock, but clearly, when a German airline is seeing positive estimate revisions as well as a number of our domestic airlines, you know you have a strong sector rotation at hand.
This stock has really soared since the start of the year and you can see on this chart how the earnings estimate revision have been the thrust beneath this stocks wings.
Deutsche Lufthansa AG Price and Consensus
Deutsche Lufthansa AG Price and Consensus | Deutsche Lufthansa AG Quote
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Southwest Airlines Company (LUV): Free Stock Analysis Report
Deutsche Lufthansa AG (DLAKY): 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.
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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Hulk is strong and my leads ins are weak, but the earnings estimate revisions for American Airlines (AAL) have been strong. AAL is a Zacks Rank #1 (Strong Buy) and I like this play a lot as it has a positive earnings ESP. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): 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 United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): 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. Hulk is strong and my leads ins are weak, but the earnings estimate revisions for American Airlines (AAL) have been strong. AAL is a Zacks Rank #1 (Strong Buy) and I like this play a lot as it has a positive earnings ESP.
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Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): 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. Hulk is strong and my leads ins are weak, but the earnings estimate revisions for American Airlines (AAL) have been strong. AAL is a Zacks Rank #1 (Strong Buy) and I like this play a lot as it has a positive earnings ESP.
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Hulk is strong and my leads ins are weak, but the earnings estimate revisions for American Airlines (AAL) have been strong. AAL is a Zacks Rank #1 (Strong Buy) and I like this play a lot as it has a positive earnings ESP. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): 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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7424.0
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2017-07-19 00:00:00 UTC
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The Zacks Industry Rank Highlights: Air France, American, Delta and Southwest
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AAL
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https://www.nasdaq.com/articles/the-zacks-industry-rank-highlights%3A-air-france-american-delta-and-southwest-2017-07-19
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nan
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nan
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For Immediate Release
Chicago, IL -July 19, 2017 - Stocks featured in this week's Zacks Industry Rank analysis include Air France (OTCMKTS: AFLYY - Free Report) , American (LON: AAL - Free Report ), Delta (NYSE: DAL - Free Report ) and Southwest (NYSE: LUV - Free Report ).
Zacks Industry Rank Analysis is written by John Blank, PhD, Chief Equity Strategist, Zacks.com.
Do Airline Stocks Have More Room to Run?
A Midsummer Night's Dream! Time to travel to the lakes, the beach and the mountains. The Airline Transportation industry is what caught my attention in July.
Zacks Industry Rank System put Airlines at #13 out of 265 industries we rank. That puts this 25-company-strong group into the top 5%.
YTD returns have been +19.8%, while the S&P 500 offered +10.8%. This spells out a nice share price outperformance. But can it continue?
Returns
Putting a share price bottom in July 2016, airline stocks soared across 2H-16 and 1H-17, led by two of the three biggest players: American Airlines and United Continental .
Indeed, shares of American and United nearly doubled. Investors started to gain confidence unit revenue was ready to rise again, after two years of steady declines.
Over the last three years, falling oil prices have helped airlines return to higher profits, ending a rough patch that saw many carriers file for bankruptcy.
While the benefits to lower fuel prices are mostly priced in now, this industry group still offers investors good long-term investment options.
In July 2017, these fundamental supply conditions continue to make airlines a good bet: ongoing low fuel prices, low seat capacity and consolidation. On the demand side, investing in the airline industry is a way to capitalize on improved consumer balance sheets, too. Air travel leads GDP growth by a country mile.
Global commercial airlines made record net profits in 2016 at about $35 billion, according to the International Air Travel Association (IATA). That's way up from nearly $14 billion in 2014 -- and about the same as in 2015. North American commercial airlines felt the upswing the most, with about $20 billion of that 2016 profit.
Even Warren Buffett, who had been quite publicly averse to airline investments in the past, announced in fall 2016 his purchase of stakes in American , United , Delta and Southwest .
All four stocks continue to experience a nice momentum price run.
To sum things up, investors have reason to continue to be bullish on air travel. But domestic commercial airlines multi-month stock price run has some traders questioning whether enough future catalysts are left in the fundamental drivers --to get in now -- and still achieve above-average returns.
American at $54 a share, for example, is back at the top of its stock price range. This price was last seen in the first half of 2015.
And forthcoming IATA travel revenue data for 2017 may be lower. Read on for that story.
Risks
The airline industry shoulders a lot of significant risks. Macro factors like sudden shifts in personal disposable income and spending patterns, safety concerns like terrorist attacks, oil price shocks and covering analyst sentiment -- all of these can turn quickly. They weigh on airline profits.
In addition, the USA "welcome mat" has been selectively removed from our airports. The world's tourists (more broadly) have taken notice.
Executive Order 13769, titled Protecting the Nation from Foreign Entry into the United States was an executive order issued by U.S. President Trump. It was in effect, except to the extent blocked by various courts, from January 27 th , 2017, until March 16 th , 2017, when it was superseded by Executive Order 13780.
Prior to March 2017, the time of the 2 nd travel ban, New York City had forecast in 2016 an increase of +400,000 foreign visitors to the city in 2017, marking consecutive years of growth since the Great Recession of 2009.
Forecasts made after the travel bans predicted a decline of 300,000 foreign visitors to New York in 2017. Foreign tourism nationwide mirrors New York City with a forecast change from a 4% increase in foreign travelers to the USA in 2017 now predicting a 3% decline.
Once in the USA, foreign visitors spend about 4 times more per day than U.S. resident travelers in the USA. These foreign visitors sustain about one million travel-related jobs. (This data is from CNN.)
An article in the Chicago Tribune on March 6 th gave more data on the anticipated decline in foreign visitor arrivals to the USA.
In March 2017, Los Angeles projected 800,000 fewer international tourists in the period 2017-2019 and a $736 million drop in spending.
Miami Airport, the second largest number of international visitor arrivals next to New York, had seen a 52% decline in flight searches compared to 2016 according to Kayak.co.uk.
San Francisco expected a 1.8% increase in foreign visitors in 2017, with a large increase in Chinese visitors expected to offset a decline in European tourists.
Tourism Economics forecasts projected 4.3 million fewer visitors to the USA in 2017, with $7.4 billion in lost revenue.
Let's see what actually happens. The U.S. Supreme Court will hear arguments and write its opinion on the travel ban later this year or early next year.
As to longer-term risk management -- going forward -- look for order deferrals on large aircraft. This is not usually a good sign, on future demand at that particular airline.
My 4 Top Zacks #1 Rank (STRONG BUY) Airline Picks
(1) Air France (OTCMKTS: AFLYY - Free Report )
(2) American (LON: AAL - Free Report )
(3) Delta (NYSE: DAL - Free Report )
(4) Southwest (NYSE: LUV - Free Report )
Why these 4? Share price momentum is cleanly on. The long-term Zacks VGM score is A, in all four cases. That's a 'tell.' There is more future growth to chase at a reasonable current stock price.
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Air France-KLM SA (AFLYY): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Southwest Airlines Company (LUV): 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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For Immediate Release Chicago, IL -July 19, 2017 - Stocks featured in this week's Zacks Industry Rank analysis include Air France (OTCMKTS: AFLYY - Free Report) , American (LON: AAL - Free Report ), Delta (NYSE: DAL - Free Report ) and Southwest (NYSE: LUV - Free Report ). My 4 Top Zacks #1 Rank (STRONG BUY) Airline Picks (1) Air France (OTCMKTS: AFLYY - Free Report ) (2) American (LON: AAL - Free Report ) (3) Delta (NYSE: DAL - Free Report ) (4) Southwest (NYSE: LUV - Free Report ) Why these 4? Get the full Report on AFLYY - FREE Get the full Report on AAL - FREE Get the full Report on DAL - FREE Get the full Report on LUV - FREE Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research.
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For Immediate Release Chicago, IL -July 19, 2017 - Stocks featured in this week's Zacks Industry Rank analysis include Air France (OTCMKTS: AFLYY - Free Report) , American (LON: AAL - Free Report ), Delta (NYSE: DAL - Free Report ) and Southwest (NYSE: LUV - Free Report ). My 4 Top Zacks #1 Rank (STRONG BUY) Airline Picks (1) Air France (OTCMKTS: AFLYY - Free Report ) (2) American (LON: AAL - Free Report ) (3) Delta (NYSE: DAL - Free Report ) (4) Southwest (NYSE: LUV - Free Report ) Why these 4? Click to get this free report Air France-KLM SA (AFLYY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL -July 19, 2017 - Stocks featured in this week's Zacks Industry Rank analysis include Air France (OTCMKTS: AFLYY - Free Report) , American (LON: AAL - Free Report ), Delta (NYSE: DAL - Free Report ) and Southwest (NYSE: LUV - Free Report ). My 4 Top Zacks #1 Rank (STRONG BUY) Airline Picks (1) Air France (OTCMKTS: AFLYY - Free Report ) (2) American (LON: AAL - Free Report ) (3) Delta (NYSE: DAL - Free Report ) (4) Southwest (NYSE: LUV - Free Report ) Why these 4? Click to get this free report Air France-KLM SA (AFLYY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL -July 19, 2017 - Stocks featured in this week's Zacks Industry Rank analysis include Air France (OTCMKTS: AFLYY - Free Report) , American (LON: AAL - Free Report ), Delta (NYSE: DAL - Free Report ) and Southwest (NYSE: LUV - Free Report ). My 4 Top Zacks #1 Rank (STRONG BUY) Airline Picks (1) Air France (OTCMKTS: AFLYY - Free Report ) (2) American (LON: AAL - Free Report ) (3) Delta (NYSE: DAL - Free Report ) (4) Southwest (NYSE: LUV - Free Report ) Why these 4? Get the full Report on AFLYY - FREE Get the full Report on AAL - FREE Get the full Report on DAL - FREE Get the full Report on LUV - FREE Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research.
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7425.0
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2017-07-19 00:00:00 UTC
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Notable Wednesday Option Activity: LAMR, LULU, AAL
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AAL
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https://www.nasdaq.com/articles/notable-wednesday-option-activity-lamr-lulu-aal-2017-07-19
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Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Lamar Advertising Co (Symbol: LAMR), where a total of 2,150 contracts have traded so far, representing approximately 215,000 underlying shares. That amounts to about 43% of LAMR's average daily trading volume over the past month of 499,780 shares. Particularly high volume was seen for the $70 strike put option expiring August 18, 2017 , with 2,097 contracts trading so far today, representing approximately 209,700 underlying shares of LAMR. Below is a chart showing LAMR's trailing twelve month trading history, with the $70 strike highlighted in orange:
lululemon athletica inc (Symbol: LULU) options are showing a volume of 9,290 contracts thus far today. That number of contracts represents approximately 929,000 underlying shares, working out to a sizeable 43% of LULU's average daily trading volume over the past month, of 2.2 million shares. Particularly high volume was seen for the $60 strike call option expiring July 21, 2017 , with 2,119 contracts trading so far today, representing approximately 211,900 underlying shares of LULU. Below is a chart showing LULU's trailing twelve month trading history, with the $60 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 24,501 contracts thus far today. That number of contracts represents approximately 2.5 million underlying shares, working out to a sizeable 42.9% of AAL's average daily trading volume over the past month, of 5.7 million shares. Particularly high volume was seen for the $53 strike call option expiring August 04, 2017 , with 3,920 contracts trading so far today, representing approximately 392,000 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $53 strike highlighted in orange:
For the various different available expirations for LAMR options , LULU 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 $53 strike call option expiring August 04, 2017 , with 3,920 contracts trading so far today, representing approximately 392,000 underlying shares of AAL. Below is a chart showing LULU's trailing twelve month trading history, with the $60 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 24,501 contracts thus far today. That number of contracts represents approximately 2.5 million underlying shares, working out to a sizeable 42.9% of AAL's average daily trading volume over the past month, of 5.7 million shares.
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That number of contracts represents approximately 2.5 million underlying shares, working out to a sizeable 42.9% of AAL's average daily trading volume over the past month, of 5.7 million shares. Below is a chart showing LULU's trailing twelve month trading history, with the $60 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 24,501 contracts thus far today. Particularly high volume was seen for the $53 strike call option expiring August 04, 2017 , with 3,920 contracts trading so far today, representing approximately 392,000 underlying shares of AAL.
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Particularly high volume was seen for the $53 strike call option expiring August 04, 2017 , with 3,920 contracts trading so far today, representing approximately 392,000 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $53 strike highlighted in orange: For the various different available expirations for LAMR options , LULU options , or AAL options , visit StockOptionsChannel.com. Below is a chart showing LULU's trailing twelve month trading history, with the $60 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 24,501 contracts thus far today.
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Particularly high volume was seen for the $53 strike call option expiring August 04, 2017 , with 3,920 contracts trading so far today, representing approximately 392,000 underlying shares of AAL. Below is a chart showing LULU's trailing twelve month trading history, with the $60 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) options are showing a volume of 24,501 contracts thus far today. That number of contracts represents approximately 2.5 million underlying shares, working out to a sizeable 42.9% of AAL's average daily trading volume over the past month, of 5.7 million shares.
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7426.0
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2017-07-19 00:00:00 UTC
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Airline Hubs: Which Carrier Dominates Your Airport?
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AAL
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https://www.nasdaq.com/articles/airline-hubs-which-carrier-dominates-your-airport-2017-07-19
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Airline hubs are specific airports that an airline company uses as a transfer sport to get travelers to their intended destination. This system is part of the spoke-hub transportation model, which has been favored by many airlines since the industry was deregulated in 1978. The model consists of a system of connections in which all airline traffic moves across spokes linked to the hub at the center.
For example, Denver and Los Angeles represent hubs, with many spokes reaching outward to other cities. The purpose of this model is simple: to save airlines money and to provide passengers better routes to their selected destinations. Today, most airlines have at least one main airport that their flights must travel through, and from there, the flights go outwards on different network spokes.
So which airlines dominate which airports? Let's take a look at seven major U.S. airlines, and see where their hubs are located.
American Airlines AAL
The world's largest airline by fleet size and revenue, American Airlines has been an industry staple since its formation in 1930. The company is headquartered in Fort Worth, Texas, and since its merger with US Airways in 2013, American Airlines operates nine domestic hubs:
Dallas-Fort Worth International Airport
Charlotte-Douglas International Airport
Chicago O'Hare International Airport
Philadelphia International Airport
Phoenix Sky Harbor International Airport
Miami International Airport
Ronald Reagan Washington International Airport
Los Angeles Airport
New York City's John F. Kennedy International Airport
Alaska Airlines ALK
Alaska Airlines is American airline founded back in 1932. Originally offering flights from Anchorage, Alaska, the airlines today has flights to more than 100 destinations including Alaska, Hawaii, Canada, Costa Rica, and Mexico. Alaska Airlines' fleet consists of mostly Boeing (BA) 737 aircraft, as well as Bombardier and Embraer planes. The company has three main hubs:
Seattle-Tacoma International Airport
Portland International Airport
Ted Stevens Anchorage International Airport
And two focus cities:
San Diego International Airport
San Jose International Airport
Delta Airlines DAL
Like American, Delta has been present in the U.S. airline industry for decades. It began carrying passengers in 1929, and has grown rapidly since then due to many airline mergers. Headquartered in Atlanta, Georgia, Delta operates 10 domestic hubs:
Hartsfield-Jackson Atlanta International Airport
Detroit Metropolitan Wayne County Airport
Cincinnati/Northern Kentucky International Airport
JFK International Airport
New York City's La Guardia Airport
Boston Logan International Airport
Los Angeles International Airport
Minneapolis-St. Paul International Airport
Salt Lake City International Airport
Seattle-Tacoma International Airport
And three international hubs:
Amsterdam Airport Schiphol
Tokyo Narita International Airport
Paris-Charles de Gaulle Airport
Frontier Airlines
Founded in 1994, Frontier Airlines is a popular, privately-held, ultra-low-cost carrier headquartered in Denver Colorado. It recently announced a huge route expansion, and Frontier is adding 21 new destinations and 85 new routes to its network. Additionally, Frontier is adding dozens of non-stop flights between other cities that it already serves. With this network increase, Frontier's route map will grow to 82 cities by next summer. The airline operates out of one main hub:
Denver International Airport
And seven focus cities:
Cincinnati/Northern Kentucky International Airport
Cleveland Hopkins International Airport
Hartsfield-Jackson Atlanta International Airport
Las Vegas' McCarran International Airport
Orlando International Airport
Philadelphia International Airport
Trenton-Mercer Airport
JetBlue Airways JBLU
JetBlue is a popular low-cost airline option headquartered in Long Island in New York City. It serves 97 destinations in the U.S., Mexico, the Caribbean, Central America, and South America. JetBlue was founded in 1998, and primarily uses Airbus and Embraer aircraft. JetBlue utilizes the old0fashioned point-to-point system , which carries passengers short distances with few connecting flights, the airline operates out of six domestic focus cities:
JFK International Airport
Fort Lauderdale-Hollywood International Airport
Boston Logan International Airport
Long Beach Airport
San Juan's Luis Munoz Marin International Airport
Orlando International Airport
Southwest Airlines LUV
Touted as the world's largest low-cost carrier, Southwest Airlines was launched in 1967 and is known for its Rapid Rewards frequent-flyer program. Its headquarters is in Dallas, Texas. While Southwest does not use the hub and spoke transportation model (it prefers the point-to-point system like JetBlue) the airline still operates out of 10 major domestic cities:
Chicago Midway International Airport
Baltimore-Washington International Airport
McCarran International Airport
Dallas Love Field Airport
Denver International Airport
Phoenix Sky Harbor International Airport
Houston's William P. Hobby Airport
Hartsfield-Jackson Atlanta International Airport
Orlando International Airport
Los Angeles International Airport
United Continental Holdings UAL
Headquartered in Chicago, United Continental Holdings is an airline holding company for United Airlines and Continental Airlines, which formed in a merger back in 2010. Operating more than 700 mainline aircraft, United Continental needs a lot of hubs. The airline company has nine hubs in total, eight domestic:
Chicago O'Hare International Airport
Houston's George Bush Intercontinental Airport
Denver International Airport
Los Angeles International Airport
Newark Liberty International Airport
San Francisco International Airport
Washington Dulles International Airport
Guam A.B. Wan Pat International Airport
And one international:
Tokyo Narita International Airport
As you can see, these seven major airlines overlap in their hub or major operating city locations nationwide, which can be looked at as a positive thing for frequent travelers. The hub and spoke model offers each airline (even Southwest and JetBlue) a way to replace a high number of half-empty routes with fewer, fuller ones, leading to less delays and a wide variety of connections.
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Southwest Airlines Company (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
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 AAL The world's largest airline by fleet size and revenue, American Airlines has been an industry staple since its formation in 1930. Click to get this free report Southwest Airlines Company (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 To read this article on Zacks.com click here. The model consists of a system of connections in which all airline traffic moves across spokes linked to the hub at the center.
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Click to get this free report Southwest Airlines Company (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 To read this article on Zacks.com click here. American Airlines AAL The world's largest airline by fleet size and revenue, American Airlines has been an industry staple since its formation in 1930. The company is headquartered in Fort Worth, Texas, and since its merger with US Airways in 2013, American Airlines operates nine domestic hubs: Dallas-Fort Worth International Airport Charlotte-Douglas International Airport Chicago O'Hare International Airport Philadelphia International Airport Phoenix Sky Harbor International Airport Miami International Airport Ronald Reagan Washington International Airport Los Angeles Airport New York City's John F. Kennedy International Airport Alaska Airlines ALK Alaska Airlines is American airline founded back in 1932.
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American Airlines AAL The world's largest airline by fleet size and revenue, American Airlines has been an industry staple since its formation in 1930. Click to get this free report Southwest Airlines Company (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 To read this article on Zacks.com click here. The company is headquartered in Fort Worth, Texas, and since its merger with US Airways in 2013, American Airlines operates nine domestic hubs: Dallas-Fort Worth International Airport Charlotte-Douglas International Airport Chicago O'Hare International Airport Philadelphia International Airport Phoenix Sky Harbor International Airport Miami International Airport Ronald Reagan Washington International Airport Los Angeles Airport New York City's John F. Kennedy International Airport Alaska Airlines ALK Alaska Airlines is American airline founded back in 1932.
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American Airlines AAL The world's largest airline by fleet size and revenue, American Airlines has been an industry staple since its formation in 1930. Click to get this free report Southwest Airlines Company (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 To read this article on Zacks.com click here. The model consists of a system of connections in which all airline traffic moves across spokes linked to the hub at the center.
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7427.0
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2017-07-18 00:00:00 UTC
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Spirit Airlines June Load Factor Falls, Q2 TRASM View Raised
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AAL
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https://www.nasdaq.com/articles/spirit-airlines-june-load-factor-falls-q2-trasm-view-raised-2017-07-18
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Spirit AirlinesSAVE saw a 17% rise in traffic (measured in Revenue Passenger Miles or RPMs) to approximately 2.2 billion in Jun 2017 on a year-over-year basis. Available Seat Miles (ASMs) increased 19.2% to 2.53 billion. Load factor (the percentage of seats filled by passengers) decreased 160 basis points (bps) to 86.8% as capacity expansion outpaced traffic growth.
Additionally, the airline recorded a 67.8% on-time performance and 96.1% completion factor for the same month.
The company also witnessed a 11.4% year-over-year rise in RPMs to 11.83 billion on a year-to-date basis. ASMs rose 14.3% to 14.17 billion. Load factor decreased 210 bps to 83.5%. The passenger flight segments in the first half of 2017 rose to 11.8 billion, up 11.1%.
Apart from releasing its June traffic numbers, this low-cost carrier also revised its guidance for the second quarter of 2017. This was done primarily owing to the dispute with pilots encountered in May, which resulted in many flight cancellations. Detailed results should be out on Jul 27. Moreover, capacity is projected to increase 13.6% on a year-over-year basis (old guidance had hinted at an increase of 14.5%).
Following the flight cancellations, this Zacks Rank #3 (Hold) company had to re-accommodate quite a few of the affected passengers either on its flights or those operated by other carriers. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Consequently, Spirit Airlines retained some of the revenues pertaining to the cancelled ASMs. This, in turn, boosted TRASM resulting in the upward revision. The metric is now expected to increase approximately 5.5% in the second quarter (previous guidance had called for an increase in the range of 4% to 5%).
Cost per available seat miles, excluding fuel (CASM), is now expected to increase year over year in the band of 9.5% to 10.5% (old guidance had called for an increase in the range of 9% to 10%). Also, fuel cost per gallon (economic) is now pegged at $1.64 per gallon compared with $1.66, expected earlier.
Price Performance
Shares of Spirit Airlines have underperformed the Zacks categorized Transportation-Airline industry in the last three months, mainly due to the dispute with its pilots. The stock has declined 7.5% against the industry's gain of 13.8% during the same period.
Of late, we note that passenger related issues have hurt the other US carriers too. These companies include the likes of American Airlines Group AAL , Delta Air Lines DAL and United Continental Holdings UAL .
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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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These companies include the likes of American Airlines Group AAL , Delta Air Lines DAL and United Continental Holdings 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 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. Load factor (the percentage of seats filled by passengers) decreased 160 basis points (bps) to 86.8% as capacity expansion outpaced traffic growth.
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These companies include the likes of American Airlines Group AAL , Delta Air Lines DAL and United Continental Holdings 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 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.
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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 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. These companies include the likes of American Airlines Group AAL , Delta Air Lines DAL and United Continental Holdings UAL . Following the flight cancellations, this Zacks Rank #3 (Hold) company had to re-accommodate quite a few of the affected passengers either on its flights or those operated by other carriers.
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These companies include the likes of American Airlines Group AAL , Delta Air Lines DAL and United Continental Holdings 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 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. Available Seat Miles (ASMs) increased 19.2% to 2.53 billion.
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7428.0
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2017-07-18 00:00:00 UTC
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Kansas City Southern (KSU) Q2 Earnings: What's in the Cards?
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AAL
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https://www.nasdaq.com/articles/kansas-city-southern-ksu-q2-earnings%3A-whats-in-the-cards-2017-07-18
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Kansas CitySouthernKSU , a leading railroad operator, is scheduled to report second-quarter 2017 results on Jul 21, before the market opens.
The company posted mixed results in the last quarter. Earnings were in line with the Zacks Consensus Estimate, while revenues beat the same. Quarterly earnings and revenues improved 13.6% and 8.3%, respectively, on a year-over-year basis.
However, things might be looking up for the company in the second quarter. The positive sentiment surrounding the stock can be gauged from the fact that the Zacks Consensus Estimate for the second quarter has inched up 1.6% in the last one month.
Shares of Kansas City Southern have shown an uptrend of late, outperforming the Zacks categorized Transportation - Rail industry over the last three months. The stock has rallied 16.35%, while the industry has gained 9.11% in the same period.
Why a Likely Positive Surprise?
Our proven model shows that Kansas City Southern is likely to beat on earnings this quarter because it has the perfect combination of the two key ingredients.
Zacks ESP:Earnings ESP for Kansas City Southern is +0.79% as the Most Accurate estimate is pegged at $1.27, while the Zacks Consensus Estimate stands at $1.26. A positive ESP serves as a leading indicator of a likely positive earnings surprise. 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 #2 (Buy). Note that stocks with Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating earnings estimates.
Conversely, the Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The combination of Kansas City Southern's favorable Zacks Rank and positive ESP makes us reasonably confident of an earnings beat.
Kansas City Southern Price and EPS Surprise
Kansas City Southern Price and EPS Surprise | Kansas City Southern Quote
Factors at Play
The company's cost controlling efforts are impressive. This is expected to improve the operating ratio in its second quarter. We also expect the company's Energy segment to perform strongly in the second quarter driven by an improvement in the coal-related scenario. The Chemical & Petroleum segment is also expected to perform well on the back of increased volumes.
The company's efforts to reward shareholders through dividend payments also raise optimism. In May 2017, the company announced a regular dividend of 25 cents per share for its outstanding 4% non-cumulative preferred stock.
However, headwinds like dipping revenues at the intermodal segment which hurt Kansas City Southern's first-quarter results are expected to affect its second quarter as well.
Other Stocks to Consider
Here are some other companies you may consider, as our model shows that they have the right combination of elements to come up with an earnings beat this quarter:
American Airlines Group, Inc. AAL has an Earnings ESP of +2.75% and a Zacks Rank #1. The company will release its second-quarter results on Jul 28. You can see the complete list of today's Zacks #1 Rank stocks here .
Allegiant Travel Company ALGT has an Earnings ESP of +1.36% and a Zacks Rank #2. The company will release its second-quarter results on Jul 26.
Alaska Air Group, Inc. ALK has an Earnings ESP of +0.80% and a Zacks Rank #2. The company will announce its second-quarter results on Jul 26.
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Allegiant Travel Company (ALGT): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
Kansas City Southern (KSU): 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 Here are some other companies you may consider, as our model shows that they have the right combination of elements to come up with an earnings beat this quarter: American Airlines Group, Inc. AAL has an Earnings ESP of +2.75% and a Zacks Rank #1. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report To read this article on Zacks.com click here. However, headwinds like dipping revenues at the intermodal segment which hurt Kansas City Southern's first-quarter results are expected to affect its second quarter as well.
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Other Stocks to Consider Here are some other companies you may consider, as our model shows that they have the right combination of elements to come up with an earnings beat this quarter: American Airlines Group, Inc. AAL has an Earnings ESP of +2.75% and a Zacks Rank #1. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report To read this article on Zacks.com click here. Kansas City Southern Price and EPS Surprise Kansas City Southern Price and EPS Surprise | Kansas City Southern Quote Factors at Play The company's cost controlling efforts are impressive.
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Other Stocks to Consider Here are some other companies you may consider, as our model shows that they have the right combination of elements to come up with an earnings beat this quarter: American Airlines Group, Inc. AAL has an Earnings ESP of +2.75% and a Zacks Rank #1. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report To read this article on Zacks.com click here. Kansas City Southern Price and EPS Surprise Kansas City Southern Price and EPS Surprise | Kansas City Southern Quote Factors at Play The company's cost controlling efforts are impressive.
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Other Stocks to Consider Here are some other companies you may consider, as our model shows that they have the right combination of elements to come up with an earnings beat this quarter: American Airlines Group, Inc. AAL has an Earnings ESP of +2.75% and a Zacks Rank #1. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks ESP:Earnings ESP for Kansas City Southern is +0.79% as the Most Accurate estimate is pegged at $1.27, while the Zacks Consensus Estimate stands at $1.26.
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7429.0
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2017-07-18 00:00:00 UTC
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Do Airline Stocks Have More Room to Run?
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AAL
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https://www.nasdaq.com/articles/do-airline-stocks-have-more-room-run-2017-07-18
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nan
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nan
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A Midsummer Night's Dream! Time to travel to the lakes, the beach and the mountains. The Airline Transportation industry is what caught my attention in July.
Zacks Industry Rank System put Airlines at #13 out of 265 industries we rank. That puts this 25-company-strong group into the top 5%.
YTD returns have been +19.8%, while the S&P 500 offered +10.8%. This spells out a nice share price outperformance. But can it continue?
Returns
Putting a share price bottom in July 2016, airline stocks soared across 2H-16 and 1H-17, led by two of the three biggest players: American Airlines (AAL) and United Continental (UAL) .
Indeed, shares of American and United nearly doubled. Investors started to gain confidence unit revenue was ready to rise again, after two years of steady declines.
Over the last three years, falling oil prices have helped airlines return to higher profits, ending a rough patch that saw many carriers file for bankruptcy.
While the benefits to lower fuel prices are mostly priced in now, this industry group still offers investors good long-term investment options.
In July 2017, these fundamental supply conditions continue to make airlines a good bet: ongoing low fuel prices, low seat capacity and consolidation. On the demand side, investing in the airline industry is a way to capitalize on improved consumer balance sheets, too. Air travel leads GDP growth by a country mile.
Global commercial airlines made record net profits in 2016 at about $35 billion, according to the International Air Travel Association (IATA). That's way up from nearly $14 billion in 2014 -- and about the same as in 2015. North American commercial airlines felt the upswing the most, with about $20 billion of that 2016 profit.
Even Warren Buffett, who had been quite publicly averse to airline investments in the past, announced in fall 2016 his purchase of stakes in American , United , Delta (DAL) and Southwest (LUV) .
All four stocks continue to experience a nice momentum price run.
To sum things up, investors have reason to continue to be bullish on air travel. But domestic commercial airlines multi-month stock price run has some traders questioning whether enough future catalysts are left in the fundamental drivers --to get in now -- and still achieve above-average returns.
American at $54 a share, for example, is back at the top of its stock price range. This price was last seen in the first half of 2015.
And forthcoming IATA travel revenue data for 2017 may be lower. Read on for that story.
Risks
The airline industry shoulders a lot of significant risks. Macro factors like sudden shifts in personal disposable income and spending patterns, safety concerns like terrorist attacks, oil price shocks and covering analyst sentiment -- all of these can turn quickly. They weigh on airline profits.
In addition, the USA "welcome mat" has been selectively removed from our airports. The world's tourists (more broadly) have taken notice.
Executive Order 13769, titled Protecting the Nation from Foreign Entry into the United States was an executive order issued by U.S. President Trump. It was in effect, except to the extent blocked by various courts, from January 27 th , 2017, until March 16 th , 2017, when it was superseded by Executive Order 13780.
Prior to March 2017, the time of the 2 nd travel ban, New York City had forecast in 2016 an increase of +400,000 foreign visitors to the city in 2017, marking consecutive years of growth since the Great Recession of 2009.
Forecasts made after the travel bans predicted a decline of 300,000 foreign visitors to New York in 2017. Foreign tourism nationwide mirrors New York City with a forecast change from a 4% increase in foreign travelers to the USA in 2017 now predicting a 3% decline.
Once in the USA, foreign visitors spend about 4 times more per day than U.S. resident travelers in the USA. These foreign visitors sustain about one million travel-related jobs. (This data is from CNN.)
An article in the Chicago Tribune on March 6 th gave more data on the anticipated decline in foreign visitor arrivals to the USA.
In March 2017, Los Angeles projected 800,000 fewer international tourists in the period 2017-2019 and a $736 million drop in spending.
Miami Airport, the second largest number of international visitor arrivals next to New York, had seen a 52% decline in flight searches compared to 2016 according to Kayak.co.uk.
San Francisco expected a 1.8% increase in foreign visitors in 2017, with a large increase in Chinese visitors expected to offset a decline in European tourists.
Tourism Economics forecasts projected 4.3 million fewer visitors to the USA in 2017, with $7.4 billion in lost revenue.
Let's see what actually happens. The U.S. Supreme Court will hear arguments and write its opinion on the travel ban later this year or early next year.
As to longer-term risk management -- going forward -- look for order deferrals on large aircraft. This is not usually a good sign, on future demand at that particular airline.
My 4 Top Zacks #1 Rank (STRONG BUY) Airline Picks
(1) Air France (AFLYY)
(2) American (AAL)
(3) Delta (DAL)
(4) Southwest (LUV)
Why these 4? Share price momentum is cleanly on. The long-term Zacks VGM score is A, in all four cases. That's a 'tell.' There is more future growth to chase at a reasonable current stock price.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Southwest Airlines Company (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Air France-KLM SA (AFLYY): 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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Returns Putting a share price bottom in July 2016, airline stocks soared across 2H-16 and 1H-17, led by two of the three biggest players: American Airlines (AAL) and United Continental (UAL) . My 4 Top Zacks #1 Rank (STRONG BUY) Airline Picks (1) Air France (AFLYY) (2) American (AAL) (3) Delta (DAL) (4) Southwest (LUV) Why these 4? Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): 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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My 4 Top Zacks #1 Rank (STRONG BUY) Airline Picks (1) Air France (AFLYY) (2) American (AAL) (3) Delta (DAL) (4) Southwest (LUV) Why these 4? Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Returns Putting a share price bottom in July 2016, airline stocks soared across 2H-16 and 1H-17, led by two of the three biggest players: American Airlines (AAL) and United Continental (UAL) .
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Returns Putting a share price bottom in July 2016, airline stocks soared across 2H-16 and 1H-17, led by two of the three biggest players: American Airlines (AAL) and United Continental (UAL) . Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. My 4 Top Zacks #1 Rank (STRONG BUY) Airline Picks (1) Air France (AFLYY) (2) American (AAL) (3) Delta (DAL) (4) Southwest (LUV) Why these 4?
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Returns Putting a share price bottom in July 2016, airline stocks soared across 2H-16 and 1H-17, led by two of the three biggest players: American Airlines (AAL) and United Continental (UAL) . My 4 Top Zacks #1 Rank (STRONG BUY) Airline Picks (1) Air France (AFLYY) (2) American (AAL) (3) Delta (DAL) (4) Southwest (LUV) Why these 4? Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): 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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7430.0
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2017-07-17 00:00:00 UTC
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5 Stocks with Impressive Sales Growth Worth Investing In
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AAL
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https://www.nasdaq.com/articles/5-stocks-with-impressive-sales-growth-worth-investing-in-2017-07-17
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nan
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nan
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A number of factors influence investment decisions, particularly when it comes to choosing stocks. While investors with a high-risk appetite looking for higher returns seek sophisticated and complex strategies, those with a low-risk appetite prefer conventional investment strategies based on solid fundamentals.
Conventional strategies can be banked upon in bearish markets as well. We have picked one such strategy that is focused on the sales growth of a company.
Sales Growth - A Key Financial Indicator
In the current market scenario, characterized by changing customer preferences and habits, evolving needs, demographic changes and an extremely competitive environment, continued sales growth is crucial for the survival of any business. Companies are always looking out for ways to boost their marketing initiatives to boost sales.
Sales are often more closely monitored than earnings when assessing the growth of a business. It's worth keeping in mind that in cases where companies incur a loss, albeit temporarily, they are valued on their revenues, as top-line growth (or decline) is usually an indicator of a company's future earnings performance.
Hence, the Price-to-Sales (P/S) ratio can turn out to be a suitable metric for stock valuation. It remains a key stock selection criteria keeping in mind that management usually has limited opportunities to tamper with revenues as they can with earnings. Thus, the P/S ratio is subject to lesser manipulation than the Price-to-Earnings ratio.
Sales growth alone, however, cannot ensure success. Consideration of a company's cash position along with its sales number can be a more reliable strategy. Substantial cash in hand and a steady cash flow give a company more flexibility with respect to business decisions and investments.
Choosing the Winning Stocks
In order to shortlist stocks that have witnessed impressive sales growth along with a high cash balance, we have selected 5-Year Historical Sales Growth (%) greater than X-Industry and Cash Flow greater than $500 million as our main screening parameters.
But sales growth and cash strength are not the absolute criteria for selecting stocks. So, we added certain other factors to arrive at a winning strategy.
Price-to-Sales (P/S) Ratio less than X-Industry: This metric determines the value placed on each dollar of a company's revenues. The lower the ratio, the better it is for picking a stock since the investor is paying less for each unit of sales.
% Change F1 Sales Estimate Revisions (4 Weeks) greater than X-Industry: Better-than-industry estimate revision has often been seen to trigger an increase in the stock price.
Operating Margin (Average Last 5 years) greater than 5%: Operating margin measures how much every dollar of a company's sales translates into profits. A high ratio indicates that the company has good cost control and sales are increasing faster than costs, an optimal situation for the company.
Return on Equity (ROE) greater than 5%: This metric will ensure that sales growth is being translated into profits and the company is not hoarding cash. A high ROE means the company is spending wisely and is in all likelihood profitable.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
Here are five of the 16 stocks that qualified the screening:
Hasbro, Inc.HAS operates as a play and entertainment company. This Pawtucket, RI-based company currently has long-term expected EPS growth rate of 11.7% and carries a Zacks Rank #2.
American Airlines Group Inc.AAL , based in Fort Worth, TX, operates as a network air carrier. It has long-term expected earnings per share (EPS) growth rate of 2.8%. The company sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .
Based in Atlanta, GA, Intercontinental Exchange, Inc.ICE operates regulated exchanges, clearing houses, and listings venues for financial and commodity markets. The company has a long-term expected EPS growth rate of 11.2% and carries a Zacks Rank #2.
Lam Research CorporationLRCX designs, manufactures, markets, refurbishes, and services semiconductor processing systems used in the fabrication of integrated circuits. This Fremont, CA-based company has a long-term expected EPS growth rate of 16.4% and a Zacks Rank #1.
Headquartered in Kalamazoo, MI, Stryker CorporationSYK operates as a medical technology company. The company currently has a long-term expected EPS growth rate of 9.6% and a Zacks Rank #2.
Get the rest of the stocks on the list and start putting this and other ideas to the test. It can all be done with the Research Wizard stock picking and backtesting software.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today .
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks' portfolios and strategies are available at:https://www.zacks.com/performance
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Stryker Corporation (SYK): Free Stock Analysis Report
Hasbro, Inc. (HAS): Free Stock Analysis Report
Lam Research Corporation (LRCX): Free Stock Analysis Report
Intercontinental Exchange Inc. (ICE): 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 , based in Fort Worth, TX, operates as a network air carrier. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Stryker Corporation (SYK): Free Stock Analysis Report Hasbro, Inc. (HAS): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report Intercontinental Exchange Inc. (ICE): Free Stock Analysis Report To read this article on Zacks.com click here. It remains a key stock selection criteria keeping in mind that management usually has limited opportunities to tamper with revenues as they can with earnings.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Stryker Corporation (SYK): Free Stock Analysis Report Hasbro, Inc. (HAS): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report Intercontinental Exchange Inc. (ICE): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL , based in Fort Worth, TX, operates as a network air carrier. Choosing the Winning Stocks In order to shortlist stocks that have witnessed impressive sales growth along with a high cash balance, we have selected 5-Year Historical Sales Growth (%) greater than X-Industry and Cash Flow greater than $500 million as our main screening parameters.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Stryker Corporation (SYK): Free Stock Analysis Report Hasbro, Inc. (HAS): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report Intercontinental Exchange Inc. (ICE): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL , based in Fort Worth, TX, operates as a network air carrier. Choosing the Winning Stocks In order to shortlist stocks that have witnessed impressive sales growth along with a high cash balance, we have selected 5-Year Historical Sales Growth (%) greater than X-Industry and Cash Flow greater than $500 million as our main screening parameters.
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American Airlines Group Inc.AAL , based in Fort Worth, TX, operates as a network air carrier. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Stryker Corporation (SYK): Free Stock Analysis Report Hasbro, Inc. (HAS): Free Stock Analysis Report Lam Research Corporation (LRCX): Free Stock Analysis Report Intercontinental Exchange Inc. (ICE): Free Stock Analysis Report To read this article on Zacks.com click here. We have picked one such strategy that is focused on the sales growth of a company.
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7431.0
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2017-07-17 00:00:00 UTC
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C.H. Robinson (CHRW) Q2 Earnings: Disappointment in Store?
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AAL
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https://www.nasdaq.com/articles/c.h.-robinson-chrw-q2-earnings%3A-disappointment-in-store-2017-07-17
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nan
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nan
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C.H. Robinson Worldwide Inc.CHRW is slated to release second-quarter 2017 results on Jul 19, after the market closes .
Last quarter, the company delivered positive earnings surprise of 7.50%. Its earnings per share of 86 cents beat the Zacks Consensus Estimate of 80 cents. Also, earnings increased 3.61% year over year. Total revenue rose 11.10% year over year to $3415.1 million and beat the Zacks Consensus Estimate of $3328.2 million.
Let's see how things shape up for this earnings season.
Factors at Play
The company's slow economic growth in certain key markets in addition to adverse foreign exchange movements are matters of great concern. Its high debt levels also pose a serious challenge. Apart from the above mentioned headwinds, high costs are also likely to hurt the bottom line in the second quarter.
Due to the headwinds stated above, shares of the company have underperformed the Zacks categorized Transportation-Services industry in the last one month. The stock has lost 0.91% compared with the industry's gain of 4.14%.
However the company's efforts to reward shareholders are remarkable. In May 2017, the company's board declared a regular quarterly cash dividend of 45 cents per share. Its expansion efforts also raise optimism. C.H. Robinson's presence in the Australia New Zealand region has been boosted by the company's acquisition of APC Logistics in Aug 2016.
Earnings Whispers
Our proven model does not conclusively show that C.H. Robinson will beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen.
Unfortunately, this is not the case here as elaborated below.
Zacks ESP: The Earnings ESP for C.H. Robinsonis -1.11% as the Most Accurate estimate is pegged at 89 cents, while the Zacks Consensus Estimate is pegged at 90 cents. In order to be confident about an earnings surprise, we always need to have a positive ESP. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: C.H. Robinson carries a Zacks Rank #4 (Sell), which, in turn, lowers the predictive power of ESP.
Please note that Sell-rated stocks (Zacks Rank #4 or 5) should never be considered for going into an earnings announcement.
C.H. Robinson Worldwide, Inc. Price and EPS Surprise
C.H. Robinson Worldwide, Inc. Price and EPS Surprise | C.H. Robinson Worldwide, Inc. Quote
Stocks to Consider
Investors interested in the broader transportation sector may consider stocks like American Airlines Group, Inc. AAL , Allegiant Travel Company ALGT and Alaska Air Group, Inc. ALK , as our model shows that these stocks possess the right combination of elements to post an earnings beat in their next release.
American Airlines has an Earnings ESP of +2.75% and a Zacks Rank #1. The company will release its second-quarter results on Jul 28. You can see the complete list of today's Zacks #1 Rank stocks here .
Allegiant Travel has an Earnings ESP of +1.36% and a Zacks Rank #2. The company will release its second-quarter results on Jul 26.
Alaska Air Group has an Earnings ESP of +0.80% and a Zacks Rank #2. The company will announce its second-quarter results on Jul 26.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X 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
Allegiant Travel Company (ALGT): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): 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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Robinson Worldwide, Inc. Quote Stocks to Consider Investors interested in the broader transportation sector may consider stocks like American Airlines Group, Inc. AAL , Allegiant Travel Company ALGT and Alaska Air Group, Inc. ALK , as our model shows that these stocks possess the right combination of elements to post an earnings beat in their next release. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report C.H. Factors at Play The company's slow economic growth in certain key markets in addition to adverse foreign exchange movements are matters of great concern.
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Robinson Worldwide, Inc. Quote Stocks to Consider Investors interested in the broader transportation sector may consider stocks like American Airlines Group, Inc. AAL , Allegiant Travel Company ALGT and Alaska Air Group, Inc. ALK , as our model shows that these stocks possess the right combination of elements to post an earnings beat in their next release. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report C.H. 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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Robinson Worldwide, Inc. Quote Stocks to Consider Investors interested in the broader transportation sector may consider stocks like American Airlines Group, Inc. AAL , Allegiant Travel Company ALGT and Alaska Air Group, Inc. ALK , as our model shows that these stocks possess the right combination of elements to post an earnings beat in their next release. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report C.H. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen.
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Robinson Worldwide, Inc. Quote Stocks to Consider Investors interested in the broader transportation sector may consider stocks like American Airlines Group, Inc. AAL , Allegiant Travel Company ALGT and Alaska Air Group, Inc. ALK , as our model shows that these stocks possess the right combination of elements to post an earnings beat in their next release. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report C.H. Robinson Worldwide Inc.CHRW is slated to release second-quarter 2017 results on Jul 19, after the market closes .
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7432.0
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2017-07-17 00:00:00 UTC
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Canadian Pacific (CP) Q2 Earnings: Will it Beat Estimates?
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AAL
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https://www.nasdaq.com/articles/canadian-pacific-cp-q2-earnings%3A-will-it-beat-estimates-2017-07-17
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nan
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nan
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Canadian Pacific Railway LimitedCP , the Calgary, Canada-based railroad operator, is scheduled to report second-quarter 2017 results on Jul 19, after the market closes .
Last quarter, the company posted in-line earnings but better-than-expected revenues. However, earnings (on an adjusted basis) improved 4.4% from the year-ago figure. Quarterly revenues increased 4.7% year over year.
Why a Likely Positive Surprise?
Our proven model shows that Canadian Pacific is likely to beat on earnings because it has the perfect combination of two key ingredients.
Zacks ESP : Earnings ESP , which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +0.98%. This is because the Most Accurate estimate stands at $2.07,whereas the Zacks Consensus Estimate is pegged lower at $2.05. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: Canadian Pacific currently has a Zacks Rank #2 (Buy). Note that stocks with Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating earnings estimates. Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Canadian Pacific Railway Limited Price and EPS Surprise
Canadian Pacific Railway Limited Price and EPS Surprise | Canadian Pacific Railway Limited Quote
What is Driving the Better-than-Expected Earnings?
Canadian Pacific is expected to perform well in the second quarter owing to an improvement in the coal scenario. This positive sentiment regarding the stock can be gauged from the 5.12% increase in the Zacks Consensus Estimate for the second quarter to $2.05 per share over the last month.
The company's efforts to reward investors through share buybacks and dividend payments are impressive. In May 2017, the company raised its quarterly dividend per share by 12.5%. The board also cleared a new share buyback program.
However, high debt levels might hurt earnings in the second quarter.
Due to the tailwinds, shares of the company have outperformed the Zacks-categorized Transportation - Rail industry over the last one month. The stock has gained 6.75%, compared with the industry's increase of 1.30% in the same period.
Other Stocks to Consider
Here are some other companies 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 +2.75% and a Zacks Rank #1. The company will release its second quarter results on Jul 28. You can see the complete list of today's Zacks #1 Rank stocks here .
Allegiant Travel Company ALGT has an Earnings ESP of +1.36% and a Zacks Rank #2. The company will release its second quarter results on Jul 26.
Alaska Air Group, Inc. ALK has an Earnings ESP of +0.80% and a Zacks Rank #2. The company will announce its second quarter results on Jul 26.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X 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
Allegiant Travel Company (ALGT): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
Canadian Pacific Railway Limited (CP): 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 Here are some other companies 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 +2.75% and a Zacks Rank #1. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian Pacific Railway Limited (CP): Free Stock Analysis Report To read this article on Zacks.com click here. Canadian Pacific Railway LimitedCP , the Calgary, Canada-based railroad operator, is scheduled to report second-quarter 2017 results on Jul 19, after the market closes .
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Other Stocks to Consider Here are some other companies 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 +2.75% and a Zacks Rank #1. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian Pacific Railway Limited (CP): Free Stock Analysis Report To read this article on Zacks.com click here. Canadian Pacific Railway Limited Price and EPS Surprise Canadian Pacific Railway Limited Price and EPS Surprise | Canadian Pacific Railway Limited Quote What is Driving the Better-than-Expected Earnings?
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Other Stocks to Consider Here are some other companies 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 +2.75% and a Zacks Rank #1. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian Pacific Railway Limited (CP): Free Stock Analysis Report To read this article on Zacks.com click here. Canadian Pacific Railway Limited Price and EPS Surprise Canadian Pacific Railway Limited Price and EPS Surprise | Canadian Pacific Railway Limited Quote What is Driving the Better-than-Expected Earnings?
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Other Stocks to Consider Here are some other companies 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 +2.75% and a Zacks Rank #1. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian Pacific Railway Limited (CP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank: Canadian Pacific currently has a Zacks Rank #2 (Buy).
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7433.0
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2017-07-17 00:00:00 UTC
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Union Pacific (UNP) Q2 Earnings: Another Beat in Store?
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AAL
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https://www.nasdaq.com/articles/union-pacific-unp-q2-earnings%3A-another-beat-in-store-2017-07-17
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Leading railroad operator, Union Pacific CorporationUNP , is slated to release second-quarter 2017 results on Jul 20, before the market opens.
In the first quarter, the company's earnings of $1.32 topped the Zacks Consensus Estimate of $1.23. Also, the bottom line expanded 13.8% on a year-over-year basis, aided by lower costs. Consequently, the improvement in the coal-related scenario boosted results. While coal revenues (freight) improved 25% year over year to $648 million, volumes increased 16%.
We expect this bright scenario to aid results in the second quarter as well. The positive sentiment surrounding the stock can be gauged from the fact that the Zacks Consensus Estimate for the quarter has moved up 2.23% in the last 30 days.
Why a Likely Positive Surprise?
Our proven model shows that Union Pacific is likely to beat the Zacks Consensus Estimate this quarter because it has the perfect combination of two key ingredients.
Zacks ESP : Union Pacific has an Earnings ESP of +1.46% as the Most Accurate estimate is at $1.39, while the Zacks Consensus Estimate is pegged at $1.37. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank : Union Pacific holds a Zacks Rank #2 (Buy). Notably, stocks with Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating earnings estimates. You can see the complete list of today's Zacks #1 Rank stocks here.
However, the combination of Union Pacific's Zacks Rank #2 and +1.46% ESP makes us reasonably confident of an earnings beat.
Factors at Play
We expect coal volumes to increase and aid results in the to-be-reported quarter. In fact, at the Bank of America 2017 Transportation Conference in May, the company's CFO, Rob Knight, painted a rosy picture for the quarter.
Evidently, coal volumes increased 21% year over year as of May 12. Segmental volumes for all the segments, except Automotives and Chemicals, had increased in the Apr 1 to May 12 time frame. According to Knight, overall volumes had also increased 4% in the same period.
It is to be noted that Union Pacific's prudent cost management is also a positive. This, in turn, should drive the bottom line in the second quarter. Meanwhile, the company that achieved an operating ratio of 65.1% in the first quarter expects the metric to improve further in 2017.
Currently, Union Pacific is on track to achieve its guidance of around 60% by 2019. Its peers like Canadian National CNI and Norfolk Southern NSC) are also aiming to drive earnings by controlling costs.
Additionally, Union Pacific's efforts to constantly reward shareholders through dividends/buybacks are encouraging. An update on the issue will be awaited on the second-quarter conference call.
Union Pacific Corporation Price and EPS Surprise
Union Pacific Corporation Price and EPS Surprise | Union Pacific Corporation Quote
Another Stock to Consider
Investors interested in the broader transportation space may also consider American Airlines Group AAL as our model shows it possesses the right combination of elements to post an earnings beat in the first quarter.
American Airlines has an Earnings ESP of +2.75% and a Zacks Rank #1. The company will report second-quarter 2017 results on Jul 28.
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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
Norfolk Souther 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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Union Pacific Corporation Price and EPS Surprise Union Pacific Corporation Price and EPS Surprise | Union Pacific Corporation Quote Another Stock to Consider Investors interested in the broader transportation space may also consider American Airlines Group AAL as our model shows it possesses the right combination of elements to post an earnings beat in the first quarter. Click to get this free 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 Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Leading railroad operator, Union Pacific CorporationUNP , is slated to release second-quarter 2017 results on Jul 20, before the market opens.
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Union Pacific Corporation Price and EPS Surprise Union Pacific Corporation Price and EPS Surprise | Union Pacific Corporation Quote Another Stock to Consider Investors interested in the broader transportation space may also consider American Airlines Group AAL as our model shows it possesses the right combination of elements to post an earnings beat in the first quarter. Click to get this free 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 Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank : Union Pacific holds a Zacks Rank #2 (Buy).
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Union Pacific Corporation Price and EPS Surprise Union Pacific Corporation Price and EPS Surprise | Union Pacific Corporation Quote Another Stock to Consider Investors interested in the broader transportation space may also consider American Airlines Group AAL as our model shows it possesses the right combination of elements to post an earnings beat in the first quarter. Click to get this free 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 Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks ESP : Union Pacific has an Earnings ESP of +1.46% as the Most Accurate estimate is at $1.39, while the Zacks Consensus Estimate is pegged at $1.37.
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Union Pacific Corporation Price and EPS Surprise Union Pacific Corporation Price and EPS Surprise | Union Pacific Corporation Quote Another Stock to Consider Investors interested in the broader transportation space may also consider American Airlines Group AAL as our model shows it possesses the right combination of elements to post an earnings beat in the first quarter. Click to get this free 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 Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. In the first quarter, the company's earnings of $1.32 topped the Zacks Consensus Estimate of $1.23.
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7434.0
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2017-07-14 00:00:00 UTC
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What's in Store for CSX Corporation (CSX) in Q2 Earnings?
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AAL
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https://www.nasdaq.com/articles/whats-in-store-for-csx-corporation-csx-in-q2-earnings-2017-07-14
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CSX CorporationCSX is slated to report second-quarter 2017 results on Jul 18, after the market closes .
Last quarter, the company had delivered a positive earnings surprise of 18.60%. It also has an impressive earnings history. The company has surpassed the Zacks Consensus Estimate in three of the last four quarters with an average beat of 8.02%.
Let's see how things shape up this earnings season.
Factors at Play
Of late, CSX Corp. has been facing challenges from a strong U.S. dollar which might hurt results in the second quarter. The company's top line might be affected by low commodity prices and dwindling volumes.
The fact that CSX Corp. is a highly leveraged company further adds to its woes and may hurt its second-quarter earnings.
However, the company's cost control measures are impressive. The company witnessed growth in volumes across most key segments in the first quarter. In this regard, we expect CSX Corp. to perform well in the second quarter as well.
The company also projected an increase (albeit modest) in volumes in the second quarter at the 2017 Bank of America Merrill Lynch Conference. It said that second-quarter coal volumes have inched up 1% on a year-over-year basis (period considered Apr 1-May 12).
CSX Corp.'s move to hike its quarterly dividend payout as well as approving of a new buyback plan also raises optimism. In Apr 2017, the company had announced an 11% hike in its quarterly dividend payout. Following the completion of the previous buyback plan, the company's board has cleared a new $1 billion share buyback program.
Earnings Whispers
Our proven model does not conclusively show that CSX Corp. is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen.
Unfortunately, this is not the case here as elaborated below.
Zacks ESP: The Earnings ESP for CSX Corp. is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 59 cents per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: CSX Corp. carries a Zacks Rank #2 which increases the predictive power of ESP. However, the company's 0.00% ESP complicates our surprise prediction.
Please note that Sell-rated stocks (Zacks Rank #4 or 5) should never be considered for going into an earnings announcement.
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 some other top-ranked stocks like American Airlines Group, Inc. AAL , Allegiant Travel Company ALGT and Alaska Air Group, Inc. ALK , as our model shows that these stocks possess the right combination of elements to post an earnings beat in their next release.
American Airlines has an Earnings ESP of +4.62% and a Zacks Rank #1. The company is expected to release its second quarter results on Jul 28. You can see the complete list of today's Zacks #1 Rank stocks here .
Allegiant Travel has an Earnings ESP of +5.25% and a Zacks Rank #3. The company will release its second quarter results on Jul 26.
Alaska Air Group has an Earnings ESP of +2.44% and a Zacks Rank #2. The company will announce its second quarter results on Jul 26.
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. Click here for the 6 trades >>
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
Allegiant Travel Company (ALGT): 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 some other top-ranked stocks like American Airlines Group, Inc. AAL , Allegiant Travel Company ALGT and Alaska Air Group, Inc. ALK , as our model shows that these stocks possess the right combination of elements to post an earnings beat in their next release. Click to get this free report Allegiant Travel Company (ALGT): 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 company also projected an increase (albeit modest) in volumes in the second quarter at the 2017 Bank of America Merrill Lynch Conference.
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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 some other top-ranked stocks like American Airlines Group, Inc. AAL , Allegiant Travel Company ALGT and Alaska Air Group, Inc. ALK , as our model shows that these stocks possess the right combination of elements to post an earnings beat in their next release. Click to get this free report Allegiant Travel Company (ALGT): 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. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen.
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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 some other top-ranked stocks like American Airlines Group, Inc. AAL , Allegiant Travel Company ALGT and Alaska Air Group, Inc. ALK , as our model shows that these stocks possess the right combination of elements to post an earnings beat in their next release. Click to get this free report Allegiant Travel Company (ALGT): 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 ESP: The Earnings ESP for CSX Corp. is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 59 cents per share.
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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 some other top-ranked stocks like American Airlines Group, Inc. AAL , Allegiant Travel Company ALGT and Alaska Air Group, Inc. ALK , as our model shows that these stocks possess the right combination of elements to post an earnings beat in their next release. Click to get this free report Allegiant Travel Company (ALGT): 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 ESP: The Earnings ESP for CSX Corp. is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 59 cents per share.
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7435.0
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2017-07-14 00:00:00 UTC
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What's in Store for United Continental (UAL) in Q2 Earnings?
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AAL
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https://www.nasdaq.com/articles/whats-in-store-for-united-continental-ual-in-q2-earnings-2017-07-14
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United Continental Holdings, Inc.UAL is scheduled to report its second-quarter earnings on Jul 18, after market closes. Last quarter, the company delivered a positive earnings surprise of 10.81%. Let's see how things are shaping up for this announcement.
Factors at play
The carrier is leaving no stone unturned to rebound from the infamous passenger dragging incident in April. In fact, the company has also changed its policy on crew-booking and announced 10 measures like limiting the use of law enforcement for safety and security issues, to improve the flying experience of travellers and avoid repetition of the incident.
Moreover, improving unit revenue trends should aid results in the quarter. The company expects passenger unit revenues for the to-be-reported quarter to increase approximately 2% on a year-over-year basis (which is at the midpoint of the previously guided range of 1% to 3%). Pre-tax margin (adjusted) is also projected in the band of 12.5% to 13.5%.
United Continental expects consolidated capacity for the quarter to grow 4.2% on a year-over-year basis. Notably, the company's efforts to reward its shareholders are also encouraging.
However, high costs are likely to hurt the bottom line in the to-be-reported quarter. With the company inking multiple labor deals, related costs have shot up. Second-quarter cost per available seat mile (CASM: excluding profit sharing, fuel & third party business cost) is anticipated to increase in the band of 3%-3.5% on higher labor costs.
Earnings Whispers
Our proven model does not conclusively show an earnings beat for United Continental this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen.
Unfortunately, this is not the case here as elaborated below.
Zacks ESP: United Continental has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $2.23 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 sports a Zacks Rank #1 which increases the predictive power of ESP. However, the company's 0.00% ESP complicates our surprise prediction.
Note that we caution against stocks with Zacks Ranks #4 or 5 (Sell-rated) going into an earnings announcement.
United Continental Holdings, Inc. Price and EPS Surprise
United Continental Holdings, Inc. Price and EPS Surprise | United Continental Holdings, Inc. Quote
Stocks to Consider
Investors interested in the airline space may consider stocks like American Airlines Group, Inc. AAL , Allegiant Travel Company ALGT and Alaska Air Group, Inc. ALK , as our model shows that these stocks possess the right combination of elements to post an earnings beat in their next release.
American Airlines has an Earnings ESP of +4.62% and a Zacks Rank #1. The company is expected to release its second-quarter results on Jul 28. You can see the complete list of today's Zacks #1 Rank stocks here .
Allegiant Travel has an Earnings ESP of +5.25% and a Zacks Rank #3. The company will release its second-quarter results on Jul 26.
Alaska Air Group has an Earnings ESP of +2.44% and a Zacks Rank #2. The company will announce its second-quarter results on Jul 26.
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. Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Allegiant Travel Company (ALGT): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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. Price and EPS Surprise United Continental Holdings, Inc. Price and EPS Surprise | United Continental Holdings, Inc. Quote Stocks to Consider Investors interested in the airline space may consider stocks like American Airlines Group, Inc. AAL , Allegiant Travel Company ALGT and Alaska Air Group, Inc. ALK , as our model shows that these stocks possess the right combination of elements to post an earnings beat in their next release. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, the company has also changed its policy on crew-booking and announced 10 measures like limiting the use of law enforcement for safety and security issues, to improve the flying experience of travellers and avoid repetition of the incident.
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United Continental Holdings, Inc. Price and EPS Surprise United Continental Holdings, Inc. Price and EPS Surprise | United Continental Holdings, Inc. Quote Stocks to Consider Investors interested in the airline space may consider stocks like American Airlines Group, Inc. AAL , Allegiant Travel Company ALGT and Alaska Air Group, Inc. ALK , as our model shows that these stocks possess the right combination of elements to post an earnings beat in their next release. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. The company expects passenger unit revenues for the to-be-reported quarter to increase approximately 2% on a year-over-year basis (which is at the midpoint of the previously guided range of 1% to 3%).
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United Continental Holdings, Inc. Price and EPS Surprise United Continental Holdings, Inc. Price and EPS Surprise | United Continental Holdings, Inc. Quote Stocks to Consider Investors interested in the airline space may consider stocks like American Airlines Group, Inc. AAL , Allegiant Travel Company ALGT and Alaska Air Group, Inc. ALK , as our model shows that these stocks possess the right combination of elements to post an earnings beat in their next release. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks ESP: United Continental has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $2.23 per share.
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United Continental Holdings, Inc. Price and EPS Surprise United Continental Holdings, Inc. Price and EPS Surprise | United Continental Holdings, Inc. Quote Stocks to Consider Investors interested in the airline space may consider stocks like American Airlines Group, Inc. AAL , Allegiant Travel Company ALGT and Alaska Air Group, Inc. ALK , as our model shows that these stocks possess the right combination of elements to post an earnings beat in their next release. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen.
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7436.0
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2017-07-13 00:00:00 UTC
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Stock Market News for July 13, 2017
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AAL
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https://www.nasdaq.com/articles/stock-market-news-for-july-13-2017-2017-07-13
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Benchmarks finished higher on Wednesday, with the Dow posting its first record close since June 19 as Fed Chairwoman Janet Yellen concluded her testimony on Capitol Hill. Yellen favored gradual monetary tightening policy and unwinding of the central bank's balance sheet. Coming amidst soft inflation data, these comments were welcomed by investors. Additionally the Nasdaq posted its fourth consecutive session gain, boosting the broader markets. Moreover, energy shares continued to move north due to increase in oil prices as EIA reported a weekly decline in U.S. crude stockpiles.
For a look at the issues currently facing the markets, make sure to read today's Ahead of Wall Street article.
The Dow Jones Industrial Average (DJI) advanced 0.6% to close at 21,532.14, marking its first closing high since June 19. The Dow closed at a new record high after retreating from an intraday record of 21,580.79. The S&P 500 rose 0.7% to finish at 2,443.25. The tech-heavy Nasdaq Composite Index gained 1.1% to close at 6,261.17, posting an increase for the fourth consecutive session. A total of around 6.1 billion shares were traded on Wednesday, much lower than the last 20-session average of 6.9 billion shares. Advancers outnumbered declining stocks on the NYSE by a 3.52 to 1 ratio.
Yellen's Testimony Welcomed by Investors
In her prepared statement on Wednesday, Yellen favored a gradual shrinkage of Fed's balance sheet, which is expected to stay "appreciably smaller than the current $4 trillion". Yellen expected the size of the balance sheet to remain larger than it was prior to the Great Recession. She commented that the central bank is likely to start unwinding its massive $4.5 trillion program later this year. Additionally, Yellen said that in case of an economic slowdown, the central bank is open to building up its balance sheet again apart from cutting the federal funds rate.
Yellen did not provide any clear hint about whether Fed would raise key interest rates once more this year. She said the central bank will be monitoring inflation metrics when deciding on its interest rate policy. Yellen opined that the central bank needs to raise interest rates gradually over coming years.
The Fed Chair added that "the federal funds rate would not have to rise all that much further to get to a neutral policy stance". A neutral interest rate is believed to be the rate which neither boosts nor reduces economic activity. Previously, investors were concerned over soft inflation data which is still short of central bank's target of 2%. Amid soft readings on inflation, Yellen's testimony appeared to provide some confidence to investors, which had a positive impact on the broader markets.
Meanwhile, as per the Fed's Beige Book, the U.S. economy recorded a "slight to moderate" pace of growth over past few weeks.
Technology Shares Continue to Gain
Technology shares moved north on Wednesday, for the fourth successive session. Gains in the technology sector had an overall positive impact on the broader markets.
Shares of major technology companies including Facebook FB and Microsoft MSFT recorded gain of 2.3% and 1.7% respectively. The broader Technology Select Sector SPDR (XLK) advanced 1.3%, emerging as one of the best performing sectors of the S&P 500. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Energy Shares Gain
Oil prices continued its upward trend on Wednesday, following the release of a report by the Energy Information Administration (EIA). The government agency reported a decline of 7.6 million barrels in U.S. crude stockpiles for the week ended July 7. As per EIA, crude stockpiles had recorded a decline of 6.3 million barrels in the previous week.
Gain in oil prices had a positive impact on the energy shares. WTI crude prices advanced by $0.45, or 1%, to $45.49 a barrel. The broader Energy Select Sector SPDR (XLE) advanced 0.3%.
Stocks that made Headlines
Verizon Faces Data Violation, Customer Records Compromised
U.S. telecom behemoth Verizon Communications Inc. VZ recently faced data violation, wherein records of 14 million customers were exposed. ( Read More )
American Airlines Up on Raised Q2 TRASM Guidance
Shares of Fort Worth, TX-based American Airlines Group AAL have rallied on Jul 12, following an upward revision of the guidance for a key unit revenue metric for the second quarter of 2017. ( Read More )
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. Click here for the 6 trades >>
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
Facebook, Inc. (FB): Free Stock Analysis Report
Verizon Communications Inc. (VZ): Free Stock Analysis Report
Microsoft Corporation (MSFT): 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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( Read More ) American Airlines Up on Raised Q2 TRASM Guidance Shares of Fort Worth, TX-based American Airlines Group AAL have rallied on Jul 12, following an upward revision of the guidance for a key unit revenue metric for the second quarter of 2017. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Verizon Communications Inc. (VZ): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report To read this article on Zacks.com click here. Benchmarks finished higher on Wednesday, with the Dow posting its first record close since June 19 as Fed Chairwoman Janet Yellen concluded her testimony on Capitol Hill.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Verizon Communications Inc. (VZ): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report To read this article on Zacks.com click here. ( Read More ) American Airlines Up on Raised Q2 TRASM Guidance Shares of Fort Worth, TX-based American Airlines Group AAL have rallied on Jul 12, following an upward revision of the guidance for a key unit revenue metric for the second quarter of 2017. Moreover, energy shares continued to move north due to increase in oil prices as EIA reported a weekly decline in U.S. crude stockpiles.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Verizon Communications Inc. (VZ): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report To read this article on Zacks.com click here. ( Read More ) American Airlines Up on Raised Q2 TRASM Guidance Shares of Fort Worth, TX-based American Airlines Group AAL have rallied on Jul 12, following an upward revision of the guidance for a key unit revenue metric for the second quarter of 2017. Technology Shares Continue to Gain Technology shares moved north on Wednesday, for the fourth successive session.
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( Read More ) American Airlines Up on Raised Q2 TRASM Guidance Shares of Fort Worth, TX-based American Airlines Group AAL have rallied on Jul 12, following an upward revision of the guidance for a key unit revenue metric for the second quarter of 2017. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Facebook, Inc. (FB): Free Stock Analysis Report Verizon Communications Inc. (VZ): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report To read this article on Zacks.com click here. Technology Shares Continue to Gain Technology shares moved north on Wednesday, for the fourth successive session.
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7437.0
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2017-07-13 00:00:00 UTC
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Alaska Air Group, Inc. (ALK) Stock Will Go Sky High
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https://www.nasdaq.com/articles/alaska-air-group-inc.-alk-stock-will-go-sky-high-2017-07-13
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Alaska Air Group, Inc. (NYSE: ALK ) is one stock every investor should own. This is because the Transportation - Airline space is seeing solid earnings estimate revision activity, and ALK stock by itself is a great company from a Zacks Industry Rank perspective.
ALK stock is looking good right now in part because of cheap oil prices and strength for airlines in general. This is important because, often times, a rising tide will lift all boats in an industry. This is arguably taking place in the Transportation - Airline space as it currently has a Zacks Industry Rank of 9 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other segments out there.
Meanwhile, Alaska Air is actually looking pretty good on its own too. ALK stock has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm's prospects in both the short and long term.
In fact, over the past month, current quarter estimates for ALK stock have increased from $2.39 per share to $2.45 per share, while current year estimates have increased from $7.94 per share to $8.11 per share. This has helped ALK to earn a Zacks Rank #2 (Buy), further underscoring the company's solid position. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
So, if you are looking for a decent pick in a strong industry, consider Alaska Air. Not only is its industry currently in the top third, but it is seeing solid estimate revisions as of late, suggesting it could be a very interesting choice for investors seeking a name in this great industry segment.
More Stock News: 8 Companies Verge on Apple-Like Run
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million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
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The post Alaska Air Group, Inc. (ALK) Stock Will Go Sky High 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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This is because the Transportation - Airline space is seeing solid earnings estimate revision activity, and ALK stock by itself is a great company from a Zacks Industry Rank perspective. ALK stock has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm's prospects in both the short and long term. Click to see them right now >> The post Alaska Air Group, Inc. (ALK) Stock Will Go Sky High appeared first on InvestorPlace .
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This is because the Transportation - Airline space is seeing solid earnings estimate revision activity, and ALK stock by itself is a great company from a Zacks Industry Rank perspective. ALK stock has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm's prospects in both the short and long term. In fact, over the past month, current quarter estimates for ALK stock have increased from $2.39 per share to $2.45 per share, while current year estimates have increased from $7.94 per share to $8.11 per share.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Alaska Air Group, Inc. (NYSE: ALK ) is one stock every investor should own. This is because the Transportation - Airline space is seeing solid earnings estimate revision activity, and ALK stock by itself is a great company from a Zacks Industry Rank perspective. In fact, over the past month, current quarter estimates for ALK stock have increased from $2.39 per share to $2.45 per share, while current year estimates have increased from $7.94 per share to $8.11 per share.
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This is because the Transportation - Airline space is seeing solid earnings estimate revision activity, and ALK stock by itself is a great company from a Zacks Industry Rank perspective. ALK stock has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm's prospects in both the short and long term. So, if you are looking for a decent pick in a strong industry, consider Alaska Air.
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7438.0
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2017-07-13 00:00:00 UTC
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J.B. Hunt (JBHT) Q2 Earnings: Disappointment in the Cards?
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https://www.nasdaq.com/articles/j.b.-hunt-jbht-q2-earnings%3A-disappointment-in-the-cards-2017-07-13
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J.B. Hunt Transport Services Inc.JBHT is expected to release second-quarter 2017 results, on Jul 17.
Last quarter, the company delivered a positive earnings surprise of 5.75%. The transportation company's earnings of 92 cents per share beat the Zacks Consensus Estimate of 87 cents. However, operating revenues of $1,629 million narrowly missed the Zacks Consensus Estimate of $1,631.4 million.
Let's see how things shape up for this earnings season.
Factors at Play
J.B. Hunt has been struggling with declining demand for quite some time now. This is expected to hurt revenues in the second quarter. Furthermore, the bottom line may be hurt by higher operating expenses.
Shares of J.B. Hunt have underperformed the Zacks categorized Transportation - Truck industry in the last three months, based on the negatives. The stock has gained 3.15%, while the industry has increased 11.60%.
Earnings Whispers
Our proven model does not conclusively show that J.B. Hunt is likely to beat the Zacks Consensus Estimate this quarter. 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.
Unfortunately, this is not the case here as elaborated below.
Zacks ESP: The Earnings ESP for J.B. Hunt is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 92 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: J.B. Hunt carries a Zacks Rank #4 (Sell).
Please note that stocks with a Zacks Rank #4 or 5 (Sell rated) should never be considered before going into an earnings announcement, especially when the company is witnessing negative estimates revision.
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 some better-ranked stocks like American Airlines Group, Inc. AAL , Allegiant Travel Company ALGT and Alaska Air Group, Inc. ALK , as our model shows that these stocks have the right combination of elements to post an earnings beat in their upcoming release.
American Airlines has an Earnings ESP of +1.75% and a Zacks Rank #1. The company is expected to announce its second-quarter results on Jul 28. You can see the complete list of today's Zacks #1 Rank stocks here .
Allegiant Travel has an Earnings ESP of +6.76% and a Zacks Rank #3. The company will release its second-quarter results on Jul 26.
Alaska Air Group has an Earnings ESP of +2.45% and a Zacks Rank #2. The company will announce its second-quarter results on Jul 26.
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. Click here for the 6 trades >>
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
Allegiant Travel Company (ALGT): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): 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 some better-ranked stocks like American Airlines Group, Inc. AAL , Allegiant Travel Company ALGT and Alaska Air Group, Inc. ALK , as our model shows that these stocks have the right combination of elements to post an earnings beat in their upcoming release. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report J.B. Hunt Transport Services, Inc. (JBHT): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of J.B. Hunt have underperformed the Zacks categorized Transportation - Truck industry in the last three months, based on the negatives.
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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 some better-ranked stocks like American Airlines Group, Inc. AAL , Allegiant Travel Company ALGT and Alaska Air Group, Inc. ALK , as our model shows that these stocks have the right combination of elements to post an earnings beat in their upcoming release. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): 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 transportation company's earnings of 92 cents per share beat the Zacks Consensus Estimate of 87 cents.
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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 some better-ranked stocks like American Airlines Group, Inc. AAL , Allegiant Travel Company ALGT and Alaska Air Group, Inc. ALK , as our model shows that these stocks have the right combination of elements to post an earnings beat in their upcoming release. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): 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 ESP: The Earnings ESP for J.B. Hunt is 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 92 cents.
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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 some better-ranked stocks like American Airlines Group, Inc. AAL , Allegiant Travel Company ALGT and Alaska Air Group, Inc. ALK , as our model shows that these stocks have the right combination of elements to post an earnings beat in their upcoming release. Click to get this free report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): 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 Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
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7439.0
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2017-07-13 00:00:00 UTC
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American Airlines (AAL) Up on Raised Q2 TRASM Guidance
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https://www.nasdaq.com/articles/american-airlines-aal-up-on-raised-q2-trasm-guidance-2017-07-13
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Shares of Fort Worth, TX-based American Airlines GroupAAL have rallied on Jul 12, following an upward revision of the guidance for a key unit revenue metric for the second quarter of 2017. The stock closed the trading session at $53.80, 4.24% higher than the Jul 11 closing price. In fact, this upbeat guidance was issued by the company while releasing its June traffic data.
Also, the carrier posted an increase in air traffic in the month of June. Traffic - measured in revenue passenger miles (RPMs) - was 21 billion, up 0.8% from the year-ago figure.
Consolidated capacity (available seat miles/ASMs) was up 1.1% to 24.9 billion on a year-over-year basis. But load factor or percentage of seats filled by passengers decreased 20 basis points (bps) to 84.7% as capacity expansion outweighed traffic growth.
In the first half of 2017, American Airlines recorded a 0.4% increase in RPMs to 110.5 billion, while ASMs inched up 0.2% to 136.1 billion, both on a year-over-year basis. Load factor climbed 10 bps year over year to 81.2%.
On the contrary, total passenger count (Enplanements) fell 0.7% in the first six months of 2017 compared with the year-ago period.
Q2 Guidance
The carrier expects total revenue per available seat mile (TRASM) for the second quarter to grow in the band of 5-6% (old guidance had hinted at growth in the range of 3.5-5.5%). The raised guidance is primarily based on higher yields. It now expects pre-tax margin, excluding special items, in the range of 13-14% (previous guidance: 12% to 14%).
For the second quarter, cost per available seat mile (CASM: excluding fuel and special items) is anticipated to increase approximately 7% primarily due to expenses pertaining to salary and benefits to employees. In addition, average fuel cost per gallon (mainline) is projected in the band of $1.6 to $1.65 per gallon.
Notably, American Airlines is not the only carrier to reveal bullish unit revenue guidance for the to-be-reported quarter. In fact, the likes of Delta Air Lines DAL and United Continental Holdings UAL did the same while revealing their respective June traffic numbers.
Price Performance
Shares of American Airlines have rallied 24.4%, outperforming the Zacks categorized Transportation-Airline industry's gain of 12.9% in the last three months.
Zacks Rank & A Key Pick
American Airlines sports a Zacks Rank #1 (Strong Buy). Investors interested in the airline space may also consider Ryanair Holdings RYAAY , which carries the same bullish rank as American Airlines. You can see the complete list of today's Zacks #1 Rank stocks here .
We note that shares of Ryanair Holdings have gained 34.6% on a year-to-date basis.
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. Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
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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Shares of Fort Worth, TX-based American Airlines GroupAAL have rallied on Jul 12, following an upward revision of the guidance for a key unit revenue metric for the second quarter of 2017. Click to get this free report Ryanair Holdings PLC (RYAAY): 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. For the second quarter, cost per available seat mile (CASM: excluding fuel and special items) is anticipated to increase approximately 7% primarily due to expenses pertaining to salary and benefits to employees.
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Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report 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 Fort Worth, TX-based American Airlines GroupAAL have rallied on Jul 12, following an upward revision of the guidance for a key unit revenue metric for the second quarter of 2017. In fact, the likes of Delta Air Lines DAL and United Continental Holdings UAL did the same while revealing their respective June traffic numbers.
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Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report 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 Fort Worth, TX-based American Airlines GroupAAL have rallied on Jul 12, following an upward revision of the guidance for a key unit revenue metric for the second quarter of 2017. Q2 Guidance The carrier expects total revenue per available seat mile (TRASM) for the second quarter to grow in the band of 5-6% (old guidance had hinted at growth in the range of 3.5-5.5%).
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Shares of Fort Worth, TX-based American Airlines GroupAAL have rallied on Jul 12, following an upward revision of the guidance for a key unit revenue metric for the second quarter of 2017. Click to get this free report Ryanair Holdings PLC (RYAAY): 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. Traffic - measured in revenue passenger miles (RPMs) - was 21 billion, up 0.8% from the year-ago figure.
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7440.0
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2017-07-13 00:00:00 UTC
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The 3 Best Dividend Stocks in Airlines
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https://www.nasdaq.com/articles/3-best-dividend-stocks-airlines-2017-07-13
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To buy the best dividend stocks in airlines, consider spreading your risk between different airline types. The three best airline dividend stocks for investors also happen to belong to three different categories in the airline industry.
Obtain an interest in a legacy carrier via Delta Airlines (NYSE: DAL) . Invest in growth by purchasing major regional carrier Alaska Air Group (NYSE: ALK) . And put some skin in the low-cost carrier (LCC) game with shares of Southwest Airlines (NYSE: LUV) . Below, let's take a few moments to sum up the advantages and dividend prospects of each company, in turn.
Delta Airlines: Massive, and still growing
Delta Airlines perennially vies with American Airlines Group (NASDAQ: AAL) for the title of largest global airline by revenue. Last year, the company achieved a top line of $39.6 billion, just short of American's $40.2 billion haul.
Dominating revenue tallies in such a fiercely competitive industry has kept Delta sharp in its quest for expansion opportunities. Recently, the company pressed deeper into the burgeoning Latin American market via a joint cooperation agreement with Aeromexico parent Grupo Aeroméxico, S.A.B. de C.V., which was finalized in March 2017. The deal allows the two companies greater flexibility in trans-border routes and adds new destinations for both carriers. Delta picked up a 49% stake in Grupo Aeroméxico as part of the joint-venture transaction.
Investors in Delta have benefited greatly from management's focus on shareholder returns. Since resuming its dividend in 2013 -- just three years out of bankruptcy reorganization -- the airline has more than tripled its dividend. Its $0.203 quarterly payout equates to an annualized yield at its current share price of 1.5%. The company's extremely low payout ratio of 13.7% leaves it space to fatten its quarterly checks to shareholders in the coming years.
Of course, to continue to grow the dividend as aggressively as it has in the near past, Delta will have to protect its ability to generate substantial cash flow. Recent proactive initiatives with both short and long time horizons indicate that management grasps this reality.
Delta has cautiously trimmed capacity expansion this year to a 1% increase. It's also pursuing a fleet-modernization program that will spruce up its rather aged fleet -- which carries an average plane age of 17.2 years -- reducing maintenance costs, and ultimately, improving margins. Finally, the company issued $2.0 billion of unsecured debt in its most recent quarter, the proceeds of which were used to reduce unfunded pension commitments.
Such actions, supported by the organization's investment-grade balance sheet, point to a relatively safe dividend that's likely to improve considerably over time.
Alaska Air Group: An expanding network, enviable profits
Alaska Air Group didn't wait long after completing its acquisition of Virgin America in 2016 to exploit the deal's route-expansion potential. In March 2017, the company made the single biggest new-markets announcement in its history, adding 125 daily nonstop flights from 13 new routes originating out of San Francisco International Airport and Mineta San Jose International Airport.
Just as it celebrated the first fruits of the merger, however, the company experienced a difficult first quarter of 2017, as fuel costs more than doubled versus the prior year. Higher fuel was one of the primary factors that dragged quarterly net income down 46%.
Still, Alaska is one of the most consistently profitable operating concerns in the industry. Further, the organization's profits, dollar for dollar, typically exceed those of most of its close competitors. Even with the Q1 2017 fuel drag, the carrier has generated an operating margin of 19.4% over the last trailing 12 months, a considerably high margin for an airline.
The company's dividend is roughly in line with Delta's on a yield basis: A current quarterly payout of $0.30 yields 1.3%. The carrier has increased its dividend by 50% in the four years since the first dividend was issued in August 2013. "ALK's" payout ratio, again, like Delta's, is quite low, at 19.1%.
While Alaska leveraged its balance sheet to acquire Virgin last year, more than quadrupling its long-term debt to nearly $3.0 billion, the company's management has shown an historical aversion to allowing debt to remain on its books. Thus, shareholders can expect steady, but moderated, increases to the dividend as the company utilizes some of its free cash flow to whittle down long-term balance-sheet obligations.
Southwest Airlines: A middling yield that will eventually rise
In January of last year, my Foolish colleague Dan Caplinger noted that investors expected Southwest Airlines to push up its dividend , then yielding 0.7%, in order to keep pace with the likes of dividend-crowd favorite Delta Airlines. Since Dan's analysis, the company has hiked its payout by more than 80%, to $0.125 per share each quarter.
But Southwest's dividend hasn't begun to catch up to Delta's yield of 1.5%. Today, the carrier's dividend only yields 0.8%. The reason, of course, is the 50% stock price appreciation the "LUV" ticker has seen since January 2016 -- a good problem for shareholders to have.
One of the oldest of domestic carriers, Southwest is focused on its next phase of growth. The company added international routes for the first time in its history in 2014. Over the last three years, and including the addition of three new routes this Fall, Southwest has built up 17 destinations focused on Central America, Mexico, and the Caribbean.
A pioneer in the LCC category, Southwest is seeking to keep its cost structure competitive through fleet modernization. It's nearly finished with a phase-out of its "Classic" planes, the Boeing 737 300/400/500 series, which will be fully retired by the end of September. Southwest will begin to take delivery of the fuel-efficient Boeing 737 Max 8 series this fall.
Like Alaska and Delta, Southwest has faced higher fuel prices this year, which are beginning to eat into earnings. Still, the carrier reported record revenue of $4.9 billion in the first quarter of 2017 and produced a respectable operating margin of 13.5%, for operating income of $658 million.
Of particular interest to income investors, Southwest enjoyed record free cash flow of $1.2 billion in its most recent quarter. And of the three companies discussed in this article, Southwest boasts the lowest payout ratio, at just 12%. These two facts in conjunction demonstrate the ease with which the company could continue to implement payout hikes.
Finally, Southwest holds a decades-long dividend payment streak, having recently paid out its 163rd consecutive quarterly dividend check. With its lengthy history of both profitability and dividend continuity, Southwest should be a core holding in any dividend-oriented airline portfolio.
10 stocks we like better than Southwest Airlines
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Asit Sharma has no position in any 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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Delta Airlines: Massive, and still growing Delta Airlines perennially vies with American Airlines Group (NASDAQ: AAL) for the title of largest global airline by revenue. Recently, the company pressed deeper into the burgeoning Latin American market via a joint cooperation agreement with Aeromexico parent Grupo Aeroméxico, S.A.B. The company's extremely low payout ratio of 13.7% leaves it space to fatten its quarterly checks to shareholders in the coming years.
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Delta Airlines: Massive, and still growing Delta Airlines perennially vies with American Airlines Group (NASDAQ: AAL) for the title of largest global airline by revenue. Invest in growth by purchasing major regional carrier Alaska Air Group (NYSE: ALK) . Of particular interest to income investors, Southwest enjoyed record free cash flow of $1.2 billion in its most recent quarter.
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Delta Airlines: Massive, and still growing Delta Airlines perennially vies with American Airlines Group (NASDAQ: AAL) for the title of largest global airline by revenue. The company's dividend is roughly in line with Delta's on a yield basis: A current quarterly payout of $0.30 yields 1.3%. Southwest Airlines: A middling yield that will eventually rise In January of last year, my Foolish colleague Dan Caplinger noted that investors expected Southwest Airlines to push up its dividend , then yielding 0.7%, in order to keep pace with the likes of dividend-crowd favorite Delta Airlines.
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Delta Airlines: Massive, and still growing Delta Airlines perennially vies with American Airlines Group (NASDAQ: AAL) for the title of largest global airline by revenue. Since Dan's analysis, the company has hiked its payout by more than 80%, to $0.125 per share each quarter. The company added international routes for the first time in its history in 2014.
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7441.0
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2017-07-12 00:00:00 UTC
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Allegiant Travel June Traffic Rises, Q2 Guidance Bullish
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AAL
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https://www.nasdaq.com/articles/allegiant-travel-june-traffic-rises-q2-guidance-bullish-2017-07-12
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Las Vegas, NV-based Allegiant Travel CompanyALGT has reported traffic numbers for the month of June. Traffic for the total system, which includes scheduled service and fixed fee contract and measured in revenue passenger miles (RPMs), increased 6.8% on a year-over-year basis to 1.11 billion.
System capacity, measured in available seat miles (ASMs), improved 7.6% in the month to 1.31 billion. With capacity growth outpacing the rise in traffic, load factor (percentage of seats filled with passengers) declined 70 basis points year over year to 84.6%. Allegiant's passenger count rose 10.8% in Jun 2017.
Its system-wide average fuel cost per gallon was approximately $1.64 per gallon in Jun 2017. Additionally, the system-wide average fuel cost per gallon for the second quarter is estimated at $1.71. Detailed results are expected on Jul 26.
Allegiant expects the second quarter total revenue per scheduled ASM (TRASM) to increase in the range of 2.7-3.1%, up from its previous guidance of 1.5-3.5%. Cost per available seat mile, excluding fuel (CASM-ex fuel), is estimated to increase between 13.1-13.5% year over year in the second quarter, the previous forecast for which was 13-15%.
The company expects system-wide capacity growth for the third quarter of 2017 in the band of 3-7%. This metric is projected to grow further in the 9-13% range during the fourth quarter of 2017.
Allegiant Travel Company Price
Allegiant Travel Company Price | Allegiant Travel Company Quote
Zacks Rank & Key Picks
Allegiant currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in airline space are Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of Air France-KLM, American Airlines and Delta Air Lines surged over 85%, 17% and 20% respectively, in the last three months.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Allegiant Travel Company (ALGT): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Air France-KLM SA (AFLYY): 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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Some better-ranked stocks in airline space are Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Las Vegas, NV-based Allegiant Travel CompanyALGT has reported traffic numbers for the month of June.
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Some better-ranked stocks in airline space are Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Allegiant Travel Company Price Allegiant Travel Company Price | Allegiant Travel Company Quote Zacks Rank & Key Picks Allegiant currently carries a Zacks Rank #3 (Hold).
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Some better-ranked stocks in airline space are Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1 (Strong Buy). Cost per available seat mile, excluding fuel (CASM-ex fuel), is estimated to increase between 13.1-13.5% year over year in the second quarter, the previous forecast for which was 13-15%.
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Some better-ranked stocks in airline space are Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Allegiant Travel Company (ALGT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. System capacity, measured in available seat miles (ASMs), improved 7.6% in the month to 1.31 billion.
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7442.0
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2017-07-12 00:00:00 UTC
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What Percentage of Southwest Airlines Does Warren Buffett Own?
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AAL
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https://www.nasdaq.com/articles/what-percentage-southwest-airlines-does-warren-buffett-own-2017-07-12
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In 2016, Warren Buffett surprised the investing world when Berkshire Hathaway 's (NYSE: BRK-A) (NYSE: BRK-B) SEC filings showed that the company had acquired stakes in three major airlines. In addition, Buffett revealed that he had purchased a stake in Southwest Airlines (NYSE: LUV) for Berkshire's portfolio during the fourth quarter of 2016. Here are the details about Buffett's investment in Southwest Airlines and why he likes the airline business so much all of a sudden.
Buffett's investment in Southwest Airlines
The short answer is that Berkshire Hathaway owns 47,659,456 shares of Southwest Airlines, as of its latest SEC filing. That translates to a stake of just over 8% in the airline, and it's worth $3 billion based on Southwest's current stock price.
Southwest Airlines is a relatively new investment for Berkshire Hathaway. The bulk of the stake -- 43.2 million shares -- was acquired in the fourth quarter of 2016, and Berkshire decided to add about 10% to its investment, bringing its position in Southwest to its current size.
Berkshire has big stakes in other airlines as well
In addition to Southwest Airlines, Berkshire has invested in the three other largest U.S. airlines; it initiated those positions during the second half of 2016. As of March 31, the latest available data, here's what Berkshire's airline investments look like.
Source: Berkshire Hathaway 13-F. Share prices are current as of July 10, 2017.
Why Buffett changed his tune and bought these four airline stocks
Berkshire's SEC filings for the third quarter of 2016 came as a big surprise to investors, as they were the first indication that Buffett was buying airline stocks.
The reason this was such a shocking announcement is that Buffett has historically been very negative on the airline industry. Ten years ago, in 2007, Buffett said: "The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, then earns little or no money. Think airlines." As recently as 2013, Buffett remained an airline pessimist, saying that the sector has "been a death trap for investors."
So, what changed?
As a general rule, Buffett doesn't discuss his reasons for investing in specific stocks, so we don't know what about Southwest Airlines and the other three specifically attracted Buffett. However, Buffett seems to believe that the airline business has fundamentally changed. He told CNBC in a February interview that the airlines had a "bad 20th century" and that he hoped they'd gotten their bad times out of the way.
According to reports, a presentation from American Airlines CEO Doug Parker had a lot of influence on Buffett's decision. Simply put, after years of airline bankruptcies and consolidation, Buffett seems to have more confidence in the industry now that there are less than a handful of big players.
Furthermore, Buffett tends to invest in companies that are among the biggest and best in their business, which is evident from his investments in companies including Apple , Coca-Cola , and Wells Fargo . In other words, if Buffett likes the airline business, investments in Southwest and the other three make sense. An investment in, say, JetBlue would have been more surprising.
Will Buffett buy Southwest Airlines in its entirety?
The parallels between Berkshire's airline investments and its railroad investments of the 2000s have prompted speculation that Buffett may attempt to buy Southwest Airlines or one of the other major carriers in its entirety.
Just like the airline industry, the railroad industry consolidated to just a few big railroads after years of poor results. Once the consolidation had occurred, Berkshire took a stake in three major railroads and ended up buying one of them -- BNSF -- in 2010.
To be clear, other than these similarities, there is no indication that Buffett intends to add an airline to Berkshire's fully owned subsidiaries. In fact, at Berkshire's annual meeting, Buffett specifically rejected any comparison between the railroad and airline industries. However, given Buffett's positive outlook for the airline industry and Berkshire's nearly $100 billion cash hoard, I can't say I'd be surprised if it happened.
10 stocks we like better than Berkshire Hathaway (A shares)
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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.
Click here to learn about these picks!
*Stock Advisor returns as of July 6, 2017
Matthew Frankel owns shares of Apple and Berkshire Hathaway (B shares). The Motley Fool owns shares of and recommends Apple and Berkshire Hathaway (B shares). 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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In addition, Buffett revealed that he had purchased a stake in Southwest Airlines (NYSE: LUV) for Berkshire's portfolio during the fourth quarter of 2016. The bulk of the stake -- 43.2 million shares -- was acquired in the fourth quarter of 2016, and Berkshire decided to add about 10% to its investment, bringing its position in Southwest to its current size. Ten years ago, in 2007, Buffett said: "The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, then earns little or no money.
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In 2016, Warren Buffett surprised the investing world when Berkshire Hathaway 's (NYSE: BRK-A) (NYSE: BRK-B) SEC filings showed that the company had acquired stakes in three major airlines. Buffett's investment in Southwest Airlines The short answer is that Berkshire Hathaway owns 47,659,456 shares of Southwest Airlines, as of its latest SEC filing. The Motley Fool owns shares of and recommends Apple and Berkshire Hathaway (B shares).
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Buffett's investment in Southwest Airlines The short answer is that Berkshire Hathaway owns 47,659,456 shares of Southwest Airlines, as of its latest SEC filing. Berkshire has big stakes in other airlines as well In addition to Southwest Airlines, Berkshire has invested in the three other largest U.S. airlines; it initiated those positions during the second half of 2016. Why Buffett changed his tune and bought these four airline stocks Berkshire's SEC filings for the third quarter of 2016 came as a big surprise to investors, as they were the first indication that Buffett was buying airline stocks.
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Buffett's investment in Southwest Airlines The short answer is that Berkshire Hathaway owns 47,659,456 shares of Southwest Airlines, as of its latest SEC filing. Southwest Airlines is a relatively new investment for Berkshire Hathaway. Why Buffett changed his tune and bought these four airline stocks Berkshire's SEC filings for the third quarter of 2016 came as a big surprise to investors, as they were the first indication that Buffett was buying airline stocks.
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7443.0
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2017-07-12 00:00:00 UTC
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American Airlines and United Continental Provide Strong Investor Updates
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AAL
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https://www.nasdaq.com/articles/american-airlines-and-united-continental-provide-strong-investor-updates-2017-07-12
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Shares of American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) roared higher on Wednesday morning after both legacy carriers released favorable investor updates. While the first quarter was somewhat disappointing for airline investors, it appears that most airlines will report strong results for the second quarter.
Yet while American Airlines and United Continental got to bask in glory on Wednesday, they both remain significantly less profitable than Delta Air Lines (NYSE: DAL) . A rising tide is lifting all boats in the airline industry, but Delta is maintaining its relative advantage.
Unit revenue tops estimates at American Airlines
Back in April, American Airlines' management forecast that revenue per available seat mile (RASM) would increase 3%-5% year over year in the second quarter. By early May, the company felt comfortable raising that guidance. For the past two months, it has been projecting a 3.5%-5.5% RASM increase for Q2.
On Wednesday, American Airlines increased its unit revenue guidance once again. It now believes that RASM increased 5%-6% year over year last quarter. Management linked the better-than-expected unit revenue performance to strong demand trends in the domestic market and much of Latin America.
Thanks to the strong revenue outlook, American Airlines boosted its pre-tax margin guidance range for the second quarter to 13%-14%. For comparison, American originally forecast that its Q2 pre-tax margin would be 11%-13% and raised that guidance range to 12%-14% in May.
United holds down unit costs
United Continental's investor update also included good news. The company now expects to report a pre-tax margin of 12.5%-13.5% in Q2, whereas it had originally forecast that its pre-tax margin would be 10%-12%.
Unlike American Airlines, United Continental didn't outperform on the revenue side. As it had noted in early June, a supply-demand imbalance in China and Hong Kong is weighing on unit revenue in the trans-Pacific market. Passenger revenue per available seat mile rose about 2% during the second quarter, right at the midpoint of United's original guidance. That said, cargo revenue and ancillary revenue did come in higher than expected last quarter.
By contrast, United's Q2 cost performance was surprisingly good. Non-fuel unit costs rose about 3%-3.5% year over year during the quarter, compared to the airline's original guidance for a 4%-5% increase. Much of the improvement was related to strong operational performance, although United Continental did note that some costs got pushed out to later in 2017.
Meanwhile, like other airlines, United benefited from falling fuel prices during the quarter. The company ultimately paid $1.63 per gallon in Q2, compared to its original estimate of $1.72-$1.77 per gallon.
Better profit margins than expected, but still inferior to Delta
Thus, American Airlines and United Continental both outperformed their initial profitability expectations for the second quarter. However, neither one will come close to matching Delta Air Lines' margin performance this quarter.
Delta will reveal its results on Thursday morning, and it is on track to report a record 17%-18% pre-tax margin for Q2. That would be roughly 4 percentage points ahead of both American and United, even though a series of severe storms that swept through Atlanta in early April reduced Delta's pre-tax profit by about $125 million last quarter.
This just highlights how American and United both have weak spots relative to Delta. American Airlines' non-fuel unit costs jumped 7% year over year last quarter. As a result, its Q2 adjusted pre-tax margin is set to decline from last year's 15.4% mark. Furthermore, its unit revenue growth could slow going forward, as year-over-year comparisons are about to get a lot tougher.
As for United, unit revenue growth remains subpar. Furthermore, during Q2, United probably didn't feel the full impact of consumer backlash related to its numerous customer service gaffes of the past few months.
Investors who have bet on comebacks at American Airlines and United Continental have made a boatload of money over the past year, even though profits are still shrinking at both companies. But Delta Air Lines is likely to deliver a better ride for long-term investors, due to its consistent margin advantage.
10 stocks we like better than United Continental Holdings
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and United Continental Holdings 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 July 6, 2017
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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Shares of American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) roared higher on Wednesday morning after both legacy carriers released favorable investor updates. That would be roughly 4 percentage points ahead of both American and United, even though a series of severe storms that swept through Atlanta in early April reduced Delta's pre-tax profit by about $125 million last quarter. Investors who have bet on comebacks at American Airlines and United Continental have made a boatload of money over the past year, even though profits are still shrinking at both companies.
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Shares of American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) roared higher on Wednesday morning after both legacy carriers released favorable investor updates. Unit revenue tops estimates at American Airlines Back in April, American Airlines' management forecast that revenue per available seat mile (RASM) would increase 3%-5% year over year in the second quarter. United holds down unit costs United Continental's investor update also included good news.
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Shares of American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) roared higher on Wednesday morning after both legacy carriers released favorable investor updates. Unit revenue tops estimates at American Airlines Back in April, American Airlines' management forecast that revenue per available seat mile (RASM) would increase 3%-5% year over year in the second quarter. United holds down unit costs United Continental's investor update also included good news.
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Shares of American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) roared higher on Wednesday morning after both legacy carriers released favorable investor updates. Unit revenue tops estimates at American Airlines Back in April, American Airlines' management forecast that revenue per available seat mile (RASM) would increase 3%-5% year over year in the second quarter. On Wednesday, American Airlines increased its unit revenue guidance once again.
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7444.0
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2017-07-11 00:00:00 UTC
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Southwest Airlines' June Load Factor Flat, RASM View Intact
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-june-load-factor-flat-rasm-view-intact-2017-07-11
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Southwest Airlines Co.LUV , a low-cost carrier, recorded a 3.7% year-over-year improvement in revenue passenger miles or RPMs (a measure of air traffic) to 11.9 billion for the month of Jun 2017. Available seat miles or ASMs (a measure of capacity) expanded 3.8% to 13.6 billion.
Another important metric - load factor (percentage of seats filled by passengers) - was flat year-over-year at 87.4% during the month, as capacity expansion was on par with traffic growth.
For the first six months of the ongoing year, Southwest Airlines has reported a 4.3% rise in RPMs to 63.7 billion and a 4.6% increase in ASMs to 76.9 billion. However, load factor for the period contracted 30 basis points to 82.9%.
The low-cost carrier still expects second-quarter 2017 operating revenue per ASM (RASM) to increase in the range of 1-2% on a year-over-year basis.The Dallas-based company's unchanged RASM guidance failed to find favor with investors, resulting in the stock declining 1.73% on Jul 10.
Southwest Airlines Company Price
Southwest Airlines Company Price | Southwest Airlines Company Quote
Zacks Rank & Key Picks
Southwest Airlines currently carries a Zacks Rank #2 (Buy). Investors interested in the airline space may also consider Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of Air France-KLM, American Airlines and Delta Air Lines have rallied over 85%, 19% and 21% ,respectively, in the last three months.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southwest Airlines Company (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Air France-KLM SA (AFLYY): 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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Investors interested in the airline space may also consider Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Southwest Airlines Co.LUV , a low-cost carrier, recorded a 3.7% year-over-year improvement in revenue passenger miles or RPMs (a measure of air traffic) to 11.9 billion for the month of Jun 2017.
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Investors interested in the airline space may also consider Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Southwest Airlines Company Price Southwest Airlines Company Price | Southwest Airlines Company Quote Zacks Rank & Key Picks Southwest Airlines currently carries a Zacks Rank #2 (Buy).
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Investors interested in the airline space may also consider Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Southwest Airlines Company Price Southwest Airlines Company Price | Southwest Airlines Company Quote Zacks Rank & Key Picks Southwest Airlines currently carries a Zacks Rank #2 (Buy).
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Investors interested in the airline space may also consider Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Southwest Airlines Co.LUV , a low-cost carrier, recorded a 3.7% year-over-year improvement in revenue passenger miles or RPMs (a measure of air traffic) to 11.9 billion for the month of Jun 2017.
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7445.0
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2017-07-11 00:00:00 UTC
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Gol Linhas (GOL) June Load Factor Improves, Stock Jumps
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AAL
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https://www.nasdaq.com/articles/gol-linhas-gol-june-load-factor-improves-stock-jumps-2017-07-11
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GOL Linhas Aereas Inteligentes S.A. 's GOL shares rose 7.75%, following the announcement of traffic results for June. Traffic - measured in revenue passenger kilometers (RPK) - dropped 2.5% to 2,690 million in Jun 2017 from 2,759 million recorded a year ago.
On a year-over-year basis, consolidated capacity (or available seat kilometers/ASKs) contracted 6.4% to 3,446 million. This was primarily because of a decline of 4.8% and 19% in domestic and international capacity, respectively. International and domestic RPK in the month of June also deteriorated 14.4% and 1.1%, respectively. The carrier further witnessed a 0.1% decrease in passenger count for the same month.
On the other hand, load factor - percentage of seats filled by passengers - increased 310 basis points (bps) to 78.1% in Jun 2017, owing to capacity contraction exceeding the decline in traffic.
At the end of the current year's first six months, RPK inched up 0.6% while ASK slipped 2.4%. Load factor for the same period improved 240 bps. The company however recorded a 9.4% reduction in the number of seats in the first six months of 2017, while volume of departures fell 9.8%.
Gol Linhas' rise in June load factor has impressed investors, leading to the stock's appreciation. The company has also recently issued a bullish forecast for the second quarter. It anticipates passenger unit revenue (PRASK) to grow in the 7.5-8% band on a year-over-year basis. Meanwhile, unit revenue (RASK) is expected to improve in the range of 8.5-9% in the second quarter (Read more: GOL Linhas Issues Bullish Q2 Forecast, Stock Up ).
Due to these tailwinds, shares of the company have significantly outperformed the Zacks categorized Transportation - Airline industry in the last one month. The stock has gained 20.78%, while the industry appreciated 5.19%.
Zacks Rank & Key Picks
Gol Linhas currently carries a Zacks Rank #3 (Hold). Investors interested in the airline space may consider a few better-ranked stocks like Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of Air France-KLM, American Airlines and Delta Air Lines have surged over 85%, 19% and 21%, respectively, in the last three months.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Air France-KLM SA (AFLYY): 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 interested in the airline space may consider a few better-ranked stocks like Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. On the other hand, load factor - percentage of seats filled by passengers - increased 310 basis points (bps) to 78.1% in Jun 2017, owing to capacity contraction exceeding the decline in traffic.
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Investors interested in the airline space may consider a few better-ranked stocks like Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, unit revenue (RASK) is expected to improve in the range of 8.5-9% in the second quarter (Read more: GOL Linhas Issues Bullish Q2 Forecast, Stock Up ).
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Investors interested in the airline space may consider a few better-ranked stocks like Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, unit revenue (RASK) is expected to improve in the range of 8.5-9% in the second quarter (Read more: GOL Linhas Issues Bullish Q2 Forecast, Stock Up ).
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Investors interested in the airline space may consider a few better-ranked stocks like Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Gol Linhas Aereas Inteligentes S.A. (GOL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Traffic - measured in revenue passenger kilometers (RPK) - dropped 2.5% to 2,690 million in Jun 2017 from 2,759 million recorded a year ago.
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7446.0
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2017-07-10 00:00:00 UTC
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3 Dividend Stocks for Long-Term Investors
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AAL
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https://www.nasdaq.com/articles/3-dividend-stocks-long-term-investors-2017-07-10
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When you have a long-term mindset, a stock's ability to appreciate quickly becomes a secondary consideration. Primarily, you're looking at what a business can do over decades to come. An appropriate component to a long-term portfolio is a stock that pays dividends, because payouts provide the juice to total returns.
We asked three contributing Motley Fool investors to identify companies they believe would reward investors with long time horizons with both income and capital appreciation. See how Gilead Sciences (NASDAQ: GILD) , Johnson & Johnson (NYSE: JNJ) , and Tailored Brands (NYSE: TLRD) could offer this winning combination.
A beaten-down biotech with a rising dividend
Keith Speights (Gilead Sciences): The last couple of years haven't been fun for Gilead Sciences shareholders. The biotech's stock has plunged with slumping sales of hepatitis C drugs Harvoni and Sovaldi. Gilead's primary problem stems from a positive development: So many hep C patients have been cured by the company's drugs that new patient starts are declining.
But while Gilead stock has dropped, its dividend has increased. The big biotech first initiated a dividend program in 2015 and has increased its payout by 10% each year since then. Gilead's dividend yield now stands at 2.94%. The company currently uses just over 20% of earnings on funding the dividend, indicating plenty of room to keep the dividend hikes coming even with its hep C challenges.
Dividend-paying drug stocks like Gilead are well-suited for investors with long-term perspectives. When scenarios such as Gilead now faces come along, an opportunity opens up to buy shares at an attractive price and lock in great dividends. Long-term investors also understand that there's usually a light at the end of the tunnel for well-run companies. I think that's the case for Gilead.
The biotech has one of the largest cash stockpiles around -- and it intends to use it . Gilead's executives have underscored the company's goal to make one or more acquisitions to spur growth. While anxious short-term traders worry about how quickly Gilead will make a deal, long-term investors can enjoy the solid dividends and appreciate that the company isn't likely to make a too-hasty decision on which smaller company to acquire.
Three businesses rolled into one
Brian Stoffel (Johnson & Johnson): When I think about the best dividend stocks to own, I consider two characteristics above all else: a wide moat and sustainably high levels of free cash flow. In both respects, I believe Johnson & Johnson is a worthwhile candidate for long-term investors.
The healthcare conglomerate has three different lines of business. Consumer products like Band-Aids and Tylenol accounted for 19% of sales last year and are protected by the time-tested strength of the individual brands in the company's portfolio.
Medical instruments contributed another 35% of sales, with a focus primarily in spine and general surgery procedures. These products, once bought, create recurring revenue for the company because the hospitals that purchase them face high switching costs, as a product's steep purchase price needs to be justified through continued utilization.
And finally, there is the pharmaceutical division, which chipped in the largest share of sales last year at 46%. The two most important of the company's drugs were arthritis medications Remicade and Stelara. While profits can be huge from this division, the moat is admittedly narrower, as all drug patents eventually expire.
Just as important as moat size is yield -- and Johnson & Johnson's current yield of 2.5% is very safe. Over the past 12 months, the company produced over $16 billion in free cash flow, but used only 53% of it to pay its dividend. Given that, I don't see any reason to believe the company's history of 55 consecutive years of dividend increases will be interrupted.
A custom-tailored dividend stock
Rich Duprey(Tailored Brands): It may seem a bit far-fetched to recommend a bricks-and-mortar retailer that has suffered a series of setbacks over the past few years, but there are some very good reasons that men's suits leader Tailored Brands could be the perfect fit for investors with a long-term mindset.
Let's get the ugly out of the way: Tailored Brands, which used to be known as Men's Wearhouse, made two big mistakes a few years ago -- it ousted company founder George Zimmer and it bought rival Jos. A. Bank. The first move created internal turmoil as it took away Zimmer's vision, while the second tried to thread a stumbling and completely different corporate culture into the fabric of a successful business.
Jos. A. Bank was famous for its "buy one suit, get three free" advertising; Men's Wearhouse pushed everyday low pricing. When the latter tried to impose its pricing strategy on the former, customers abandoned the clothier in droves. Men's Wearhouse then had an ill-fitted partnership with Macy's (NYSE: M) for tuxedos that was recently ended. On top of all these problems, its Twin Hill uniform division had a nasty public relations disaster brewing with American Airlines (NASDAQ: AAL) over supposedly rash-inducing uniforms. The two companies just parted ways.
Yet Tailored Brands has a lot to look forward to. Jos. A Bank has posted two straight quarters of positive comparable sales (though its other smaller brands turned negative), and suits should be fairly resistant to e-commerce competition. While there are a number of sites selling suits online, and Tailored Brands has its own e-commerce site, most people still prefer to be able to try on a suit before buying, particularly if one is being custom-made. An analyst at Morgan Stanley says suits should be somewhat resilient to encroachment by Amazon.com and other online chains.
Tailored Brands stock is down 56% so far in 2017 and trades at just five times the free cash flow it produces. With a $0.72 dividend that currently yields 6.7% as the market frets about bricks-and-mortar retail, patient investors should be rewarded by the turnaround that will come.
10 stocks we like better than Gilead Sciences
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*Stock Advisor returns as of June 5, 2017
Brian Stoffel owns shares of Amazon. Keith Speights owns shares of Gilead Sciences. Rich Duprey has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Amazon, Gilead Sciences, and Johnson & Johnson. The Motley Fool has the following options: long August 2017 $75 calls on Gilead Sciences. 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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On top of all these problems, its Twin Hill uniform division had a nasty public relations disaster brewing with American Airlines (NASDAQ: AAL) over supposedly rash-inducing uniforms. Consumer products like Band-Aids and Tylenol accounted for 19% of sales last year and are protected by the time-tested strength of the individual brands in the company's portfolio. Let's get the ugly out of the way: Tailored Brands, which used to be known as Men's Wearhouse, made two big mistakes a few years ago -- it ousted company founder George Zimmer and it bought rival Jos.
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On top of all these problems, its Twin Hill uniform division had a nasty public relations disaster brewing with American Airlines (NASDAQ: AAL) over supposedly rash-inducing uniforms. See how Gilead Sciences (NASDAQ: GILD) , Johnson & Johnson (NYSE: JNJ) , and Tailored Brands (NYSE: TLRD) could offer this winning combination. A custom-tailored dividend stock Rich Duprey(Tailored Brands): It may seem a bit far-fetched to recommend a bricks-and-mortar retailer that has suffered a series of setbacks over the past few years, but there are some very good reasons that men's suits leader Tailored Brands could be the perfect fit for investors with a long-term mindset.
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On top of all these problems, its Twin Hill uniform division had a nasty public relations disaster brewing with American Airlines (NASDAQ: AAL) over supposedly rash-inducing uniforms. A beaten-down biotech with a rising dividend Keith Speights (Gilead Sciences): The last couple of years haven't been fun for Gilead Sciences shareholders. While anxious short-term traders worry about how quickly Gilead will make a deal, long-term investors can enjoy the solid dividends and appreciate that the company isn't likely to make a too-hasty decision on which smaller company to acquire.
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On top of all these problems, its Twin Hill uniform division had a nasty public relations disaster brewing with American Airlines (NASDAQ: AAL) over supposedly rash-inducing uniforms. Primarily, you're looking at what a business can do over decades to come. A custom-tailored dividend stock Rich Duprey(Tailored Brands): It may seem a bit far-fetched to recommend a bricks-and-mortar retailer that has suffered a series of setbacks over the past few years, but there are some very good reasons that men's suits leader Tailored Brands could be the perfect fit for investors with a long-term mindset.
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Bull of the Day – Buy Delta Air Lines (DAL)
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https://www.nasdaq.com/articles/bull-of-the-day-buy-delta-air-lines-dal-2017-07-10
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Delta Air Lines, Inc. (NYSE: DAL ) is the Zacks bull of the day for July 10. That's because with slumping oil prices, a number of companies in the broader transportation world look to benefit, including DAL stock
Airline stocks see a sizable percentage of its costs go to fuel, so a reduced-or at least stable-oil price should be great news for this segment and DAL stock. We have definitely seen airline companies bounce back in recent months, partially as a result of these lower oil prices, though a stronger U.S. economy isn't hurting matters either.
No wonder the industry currently has an industry rank in the top 5%, and why not a single stock in the group has a Zacks Rank #5 (Strong Sell), out of nearly two dozen companies.
But which company do you want to focus on? In addition to Delta, there are also airlines Southwest Airlines Co (NYSE: LUV ), American Airlines Group Inc (NASDAQ: AAL ) and United Continental Holdings Inc (NYSE: UAL ).
But Delta Air Lines and DAL stock might be one of the best positioned in the space, at least if we look to earnings estimate revisions as a guide.
In the last two months, analysts covering Delta stock have been raising their estimates for the company's earnings, almost universally. We have seen five estimates go higher in the current quarter, and six go higher for the current year time frame.
This has also helped to boost the consensus estimate for DAL stock, as we have seen the current quarter projection increase by 3.8% in the past two months and over 7% for the next quarter. The full year estimate has moved higher by over five percent in the same time frame, and analysts now expect year-over-year growth for the company on the earnings front too.
The most recent estimates on DAL stock have also been higher, and the company has a great history in earnings season and can clearly live up to expectations on a regular basis. In fact, Delta has only missed earnings estimates once in the past three years, so it certainly has a good track record.
No wonder DAL has earned itself a Zacks Rank #1 (Strong Buy) rating, and why we are looking for more strength out of this name in the near future too.
There are numerous reasons to like the airline group right now. The economy is strong, oil prices are stable, and the industry faces relatively little pricing pressure thanks to an intense period of mergers a few years ago.
But while there are many quality companies in the space, one that should be on your radar above all others right now is Delta. The company has great prospects on the earnings estimate revision front, a strong value score, and is a 'strong buy' rated stock too. So, if you are looking for an airline stock to ride in your portfolio, definitely give DAL a closer look this summer.
Want more from this author? Make sure to check out his podcast, the Dutram Report, which features interviews with executives from around the ETF and broader stock community. Check out the recent episode which featured the Chief Medical Officer from Kite Pharma, who spoke about the rapidly changing world of cancer research and immunotherapy in the link here - How Kite Pharma Is Revolutionizing the Fight Against Cancer
The post Bull of the Day - Buy Delta Air Lines (DAL) 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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In addition to Delta, there are also airlines Southwest Airlines Co (NYSE: LUV ), American Airlines Group Inc (NASDAQ: AAL ) and United Continental Holdings Inc (NYSE: UAL ). We have definitely seen airline companies bounce back in recent months, partially as a result of these lower oil prices, though a stronger U.S. economy isn't hurting matters either. The full year estimate has moved higher by over five percent in the same time frame, and analysts now expect year-over-year growth for the company on the earnings front too.
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In addition to Delta, there are also airlines Southwest Airlines Co (NYSE: LUV ), American Airlines Group Inc (NASDAQ: AAL ) and United Continental Holdings Inc (NYSE: UAL ). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Delta Air Lines, Inc. (NYSE: DAL ) is the Zacks bull of the day for July 10. No wonder DAL has earned itself a Zacks Rank #1 (Strong Buy) rating, and why we are looking for more strength out of this name in the near future too.
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In addition to Delta, there are also airlines Southwest Airlines Co (NYSE: LUV ), American Airlines Group Inc (NASDAQ: AAL ) and United Continental Holdings Inc (NYSE: UAL ). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Delta Air Lines, Inc. (NYSE: DAL ) is the Zacks bull of the day for July 10. That's because with slumping oil prices, a number of companies in the broader transportation world look to benefit, including DAL stock Airline stocks see a sizable percentage of its costs go to fuel, so a reduced-or at least stable-oil price should be great news for this segment and DAL stock.
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In addition to Delta, there are also airlines Southwest Airlines Co (NYSE: LUV ), American Airlines Group Inc (NASDAQ: AAL ) and United Continental Holdings Inc (NYSE: UAL ). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Delta Air Lines, Inc. (NYSE: DAL ) is the Zacks bull of the day for July 10. But Delta Air Lines and DAL stock might be one of the best positioned in the space, at least if we look to earnings estimate revisions as a guide.
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Zacks.com featured highlights: American Airlines Group, H&R Block, ARI Network Services and Progressive
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https://www.nasdaq.com/articles/zacks.com-featured-highlights%3A-american-airlines-group-hr-block-ari-network-services-and
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For Immediate Release
Chicago, IL - July 10, 2017 - Stocks in this week's article include American Airlines Group Inc. (NASDAQ: AAL - Free Report ), H&R Block Inc. (NYSE: HRB - Free Report ), ARI Network Services Inc. (NASDAQ: ARIS - Free Report ) and Progressive Corp. (NYSE: PGR - Free Report ).
Screen of the Week of Zacks Investment Research:
Use Relative Price Strength to Find These Winning Stocks
Investors generally gauge a stock's potential return by examining earnings growth and valuation multiples. At the same time, it's important to measure the performance of such a stock relative to its industry or peers, or the appropriate benchmark.
If you see that a stock is underperforming on fundamental factors, then it would be prudent to move on and find a better alternative. However, those outperforming their respective sectors in terms of price should be selected because they stand a better chance to provide considerable returns.
Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 over a period of 1 to 3 months at the least and having solid fundamentals indicate room for growth, and are the best ways to go about this strategy.
Finally, it is important to find out whether analysts are optimistic about the upcoming earnings results of these companies. In order to do this, we have added positive estimate revisions for the current quarter's (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains.
Screening Parameters
Relative % Price change - 12 weeks greater than 0
Relative % Price change - 4 weeks greater than 0
Relative % Price change - 1 week greater than 0
(We have considered those stocks that have been outperforming the S&P 500 over the last 12 weeks, 4 weeks and 1 week.)
% Change (Q1) Est. over 4 Weeks greater than 0: Positive current quarter estimate revisions over the last four weeks.
Zacks Rank equal to 1: Only Zacks Rank #1 (Strong Buy) stocks - that have returned more than 26% annually over the last 26 years and surpassed the S&P 500 in 23 of the last 26 years - can get through. You can see the complete list of today's Zacks #1 Rank stocks here .
Current Price greater than or equal to $5 and Average 20-day Volume greater than or equal to 50,000: A minimum price of $5 is a good standard to screen low-priced stocks, while a high trading volume would imply adequate liquidity.
VGM Scoreless than or equal to B: Our research shows that stocks with a VGM Score of 'A' or 'B' when combined with a Zacks Rank #1 or #2 (Buy) offer the best upside potential.
Here are the four stocks that made it through the screen:
American Airlines Group Inc. (NASDAQ: AAL - Free Report ): Headquartered in Fort Worth, TX, American Airlines Group is an international carrier that operates more than 6,700 daily flights to over 330 destinations in more than 50 nations across the globe from its hubs. The company has a VGM score of "B" and an excellent earnings surprise history. It surpassed estimates in three of the last four quarters at an average rate of 20.24%.
H&R Block Inc. (NYSE: HRB - Free Report ): A provider of tax, accounting and business consulting services and products, H&R Block has a VGM score of "A." Over the past 30 days, the Kansas City, MO-based firm has seen the Zacks Consensus Estimate for fiscal years 2018 and 2019 (ending April) increase 10.5% and 9.6%, to $2.00 and $2.05 per share, respectively.
ARI Network Services Inc. (NASDAQ: ARIS - Free Report ): ARI Network Services is a leading provider of proprietary software tools and marketing services to its clients - dealers, distributors and manufacturers - to increase their sale in a variety of markets. Sporting a VGM score of "B," this Milwaukee, WI-headquartered company's expected EPS growth rate for 3 to 5 years currently stands at 15.00%, comparing favorably with the industry growth rate of 13.90%.
The Progressive Corp. (NYSE: PGR - Free Report ): Headquartered in Mayfield Village, OH, The Progressive Corp. is a leading independent agency writer of private passenger auto coverage, and the market share leader for motorcycle products since 1998. The 2017 Zacks Consensus Estimate for this company is $2.40, representing some 44.9% earnings per share growth over 2016. Next year's average forecast is $2.64, pointing to another 9.7% growth. The Progressive Corp. has a VGM score of "B."
Sign up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today .
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks' portfolios and strategies are available at:https://www.zacks.com/performance.
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »
Sign up now for your free trial today and start picking better stocks immediately. And with the backtesting feature, you can test your ideas to see how you can improve your trading in both up markets and down markets. Don't wait for the market to get better before you decide to do better. Start learning how to be a better trader today: https://at.zacks.com/?id=111
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
About Screen of the Week
Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here https://at.zacks.com/?id=112
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Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .
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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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American Airlines Group, Inc. (AAL): Free Stock Analysis Report
H&R Block, Inc. (HRB): Free Stock Analysis Report
ARI Network Services, Inc. (ARIS): Free Stock Analysis Report
Progressive Corporation (The) (PGR): 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 - July 10, 2017 - Stocks in this week's article include American Airlines Group Inc. (NASDAQ: AAL - Free Report ), H&R Block Inc. (NYSE: HRB - Free Report ), ARI Network Services Inc. (NASDAQ: ARIS - Free Report ) and Progressive Corp. (NYSE: PGR - Free Report ). Here are the four stocks that made it through the screen: American Airlines Group Inc. (NASDAQ: AAL - Free Report ): Headquartered in Fort Worth, TX, American Airlines Group is an international carrier that operates more than 6,700 daily flights to over 330 destinations in more than 50 nations across the globe from its hubs. Get the full Report on AAL - FREE Get the full Report on HRB - FREE Get the full Report on ARIS - FREE Get the full Report on PGR - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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For Immediate Release Chicago, IL - July 10, 2017 - Stocks in this week's article include American Airlines Group Inc. (NASDAQ: AAL - Free Report ), H&R Block Inc. (NYSE: HRB - Free Report ), ARI Network Services Inc. (NASDAQ: ARIS - Free Report ) and Progressive Corp. (NYSE: PGR - Free Report ). Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report H&R Block, Inc. (HRB): Free Stock Analysis Report ARI Network Services, Inc. (ARIS): Free Stock Analysis Report Progressive Corporation (The) (PGR): Free Stock Analysis Report To read this article on Zacks.com click here. Here are the four stocks that made it through the screen: American Airlines Group Inc. (NASDAQ: AAL - Free Report ): Headquartered in Fort Worth, TX, American Airlines Group is an international carrier that operates more than 6,700 daily flights to over 330 destinations in more than 50 nations across the globe from its hubs.
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For Immediate Release Chicago, IL - July 10, 2017 - Stocks in this week's article include American Airlines Group Inc. (NASDAQ: AAL - Free Report ), H&R Block Inc. (NYSE: HRB - Free Report ), ARI Network Services Inc. (NASDAQ: ARIS - Free Report ) and Progressive Corp. (NYSE: PGR - Free Report ). Get the full Report on AAL - FREE Get the full Report on HRB - FREE Get the full Report on ARIS - FREE Get the full Report on PGR - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report H&R Block, Inc. (HRB): Free Stock Analysis Report ARI Network Services, Inc. (ARIS): Free Stock Analysis Report Progressive Corporation (The) (PGR): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL - July 10, 2017 - Stocks in this week's article include American Airlines Group Inc. (NASDAQ: AAL - Free Report ), H&R Block Inc. (NYSE: HRB - Free Report ), ARI Network Services Inc. (NASDAQ: ARIS - Free Report ) and Progressive Corp. (NYSE: PGR - Free Report ). Here are the four stocks that made it through the screen: American Airlines Group Inc. (NASDAQ: AAL - Free Report ): Headquartered in Fort Worth, TX, American Airlines Group is an international carrier that operates more than 6,700 daily flights to over 330 destinations in more than 50 nations across the globe from its hubs. Get the full Report on AAL - FREE Get the full Report on HRB - FREE Get the full Report on ARIS - FREE Get the full Report on PGR - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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The Zacks Analyst Blog Highlights: Delta Air Lines, United Continental Holdings, American Airlines Group, Southwest Airlines and Alaska Air Group
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-delta-air-lines-united-continental-holdings-american-1
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For Immediate Release
Chicago, IL - July 10, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ), American Airlines Group (NASDAQ: AAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and Alaska Air Group (NYSE: ALK- Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday's Analyst Blog:
5 Airline Stocks to Take Off on Likely Q2 Earnings Beat
The Q2 earnings season is round the corner as far as stocks in the airline space are concerned. The Atlanta, GA-based airline behemoth Delta Air Lines will kick off the earnings season for airline players on Jul 13.
On the back of multiple tailwinds, stocks in the space are expected to perform well in this earnings season. In fact, the entire transportation sector of which airlines are a part, is projected to come out with flying colors in Q2.
The bright picture is corroborated by our latest Earnings Trends report. According to the report, the top and bottom lines for this key sector (one of the 16 Zacks sectors) are expected to expand 8.9% and 3%, respectively, in Q2 on a year-over-year basis. In fact, the readings compare favorably to the figures in Q1 where transportation earnings contracted 17.8%, while revenues grew at 6.9%.
As the airline stocks are back in favor despite some hiccups, they are largely responsible for the bright projection for the broader sector. The optimism surrounding airlines is well reflected by the fact that the Zacks categorized Transportation-Airline industry has handily outperformed the S&P 500 Index during the April - June timeframe. While the S&P 500 Index has gained 3.3%, the industry added 10.9% in Q2.
Why the Surge?
Issues related to unit revenues - a measure of sales relative to capacity for a carrier - had negatively impacted airline companies in the recent past. However, the revenue environment has improved as of late. This is reflected in the bullish Q2 unit revenue projections from the likes of American, JetBlue and Delta.
Moreover, airline companies remain in excellent financial health, which has allowed them to indulge in employee-friendly (profit sharing) and investor-friendly activities (dividend payments/buybacks). For example, the likes of Delta and Southwest hiked their dividend pay-outs during Q2. Also, airlines are constantly making investments to modernize their fleet and improve the flying experience of passengers, courtesy their solid balance sheets.
Additionally, oil prices were down approximately 9% in the April - June period. In fact, by Jun 21, crude had slumped in excess of 20% from its highs of $55 a barrel, touched in late February this year. In fact, lower oil prices mean good news for companies in the airline space as fuel costs account for a significant chunk of their expenditures.
Furthermore, the optimism surrounding airline stocks has not gone unnoticed by Warren Buffet; the Oracle of Omaha increased his stakes in American Airlines and Southwest Airlines in the first quarter of 2017 by 8% and 10%, respectively. The data is according to a regulatory filing by Buffett's Berkshire Hathaway. The interest in airline stocks shown by one of the most revered investors of all time certainly also bodes well for the space.
Zacks Industry Rank Highlights the Favorable Scenario
The positive developments are reflected by the bullish Zacks Industry Rank of 9 carried by the 22-member Transportation- Airline industry. Also 50% of the stocks in the space are Buy- ranked.
Notably, the favorable rank places the industry in the top 4% of the 250+ groups. The positioning indicates a positive outlook. In fact, our back-testing shows that the top 50% of the Zacks ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Given the favorable backdrop, it is very much likely that airline stocks will have a strong showing in their Q2 results. Naturally, it is a prudent idea to add such stocks to one's portfolio for handsome returns.
How to Make the Right Choice?
With the airline space being densely populated, the task of selecting the right stocks is by no means an easy one. The process is akin to searching for 'a needle in a haystack' unless one is aware of an appropriate method to make the right choice.
One way to narrow down the list of choices is by looking at stocks with a favorable Zacks Rank of #1 (Strong Buy), 2 (Buy) or 3 (Hold) alongside a positive Earnings ESP .
Earnings ESP is our proprietary methodology to determine which stocks have the best chance to surprise in their next earnings announcement. It shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate.
Our research shows that for stocks with this combination, the chance of a positive earnings surprise is as high as 70%. An earnings beat boosts investor confidence in the stock, which is reflected in its rapid price appreciation. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
5 Attractive Picks
With the aid of the above methodology, we have zeroed in on five airline stocks that are likely to report better-than-expected earnings per share in Q2. We believe that these stocks could turn out to be great additions to your portfolio and are worth a look.
Our first choice is Delta Air Lines (NYSE: DAL- Free Report ). We expect the carrier to surpass expectations as it has an Earnings ESP of +1.83% and a Zacks Rank #1. The Zacks Consensus Estimate for Q2 has moved up 3.8% in the last two months to $1.64 per share. You can see the complete list of today's Zacks #1 Rank stocks here .
United Continental Holdings (NYSE: UAL- Free Report ), based in Chicago, is also expected to report better-than-expected Q2 earnings, by virtue of its Zacks Rank #1 and an Earnings ESP of +6.73%. The holding company for both United Airlines and Continental Airlines is expected to reveal its results on Jul 18. The Zacks Consensus Estimate for Q2 has climbed approximately 2.8% in the last two months to $2.23 per share.
Our next choice in the list of likely outperformers with respect to the bottom line in Q2 is the Fort Worth, TX-based American Airlines Group (NASDAQ: AAL- Free Report ). The company sports a Zacks Rank #1 and has an Earnings ESP of +3.51%. The Zacks Consensus Estimate for Q2 has moved up 6.2% in the last two months to $1.71 per share. The carrier is expected to reveal its results on Jul 28.
Next, is Dallas-based, Southwest Airlines (NYSE: LUV- Free Report ) that carries a Zacks Rank #2 and has an Earnings ESP of +0.84%. The Zacks Consensus Estimate for Q2 has climbed 5.3% in the last three months to $1.19 per share. It is scheduled to reveal the results on Jul 27.
Our final choice is Seattle, WA-based Alaska Air Group (NYSE: ALK- Free Report ). The company carries a Zacks Rank #2 and has an Earnings ESP of +2.04%. The Zacks Consensus Estimate for Q2 has increased approximately 5.2% in the last two months to $2.45 per share. The carrier is expected to unveil its results on Jul 20.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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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
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
Southwest Airlines Company (LUV): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Our next choice in the list of likely outperformers with respect to the bottom line in Q2 is the Fort Worth, TX-based American Airlines Group (NASDAQ: AAL- Free Report ). Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ), American Airlines Group (NASDAQ: AAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and Alaska Air Group (NYSE: ALK- Free Report ). Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on AAL - FREE Get the full Report on LUV - FREE Get the full Report on ALK - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ), American Airlines Group (NASDAQ: AAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and Alaska Air Group (NYSE: ALK- Free Report ). Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on AAL - FREE Get the full Report on LUV - FREE Get the full Report on ALK - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. 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 Southwest Airlines Company (LUV): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ), American Airlines Group (NASDAQ: AAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and Alaska Air Group (NYSE: ALK- Free Report ). Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on AAL - FREE Get the full Report on LUV - FREE Get the full Report on ALK - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. 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 Southwest Airlines Company (LUV): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ), American Airlines Group (NASDAQ: AAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and Alaska Air Group (NYSE: ALK- Free Report ). Our next choice in the list of likely outperformers with respect to the bottom line in Q2 is the Fort Worth, TX-based American Airlines Group (NASDAQ: AAL- Free Report ). Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on AAL - FREE Get the full Report on LUV - FREE Get the full Report on ALK - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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7450.0
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2017-07-10 00:00:00 UTC
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What Falling Estimates & Price Mean for Covenant Transportation (CVTI)
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AAL
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https://www.nasdaq.com/articles/what-falling-estimates-price-mean-for-covenant-transportation-cvti-2017-07-10
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nan
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nan
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Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.
One such stock that you may want to consider dropping is Covenant Transportation Group , Inc.CVTI , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #4 (Sell) further confirms weakness in CVTI.
A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 1 estimates moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from 81 cents a share a month ago to its current level of 71 cents.
Also, for the current quarter, Covenant Transportation has seen 1 downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 8 cents a share from 10 cents over the past 30 days.
The stock also has seen some pretty dismal trading lately, as the share price has dropped 7.1% in the past month.
Covenant Transportation Group, Inc. Price and Consensus
Covenant Transportation Group, Inc. Price and Consensus | Covenant Transportation Group, Inc. Quote
So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don't have a long time horizon to wait.
If you are still interested in the Transportation sector, you may instead consider a better-ranked stock - American Airlines Group Inc. AAL . The stock currently holds a Zacks Rank #1 (Strong Buy) and may be a better selection at this time. You can see the complete list of today's Zacks #1 Rank stocks here .
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
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Covenant Transportation Group, Inc. (CVTI): 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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If you are still interested in the Transportation sector, you may instead consider a better-ranked stock - American Airlines Group Inc. AAL . Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Covenant Transportation Group, Inc. (CVTI): Free Stock Analysis Report To read this article on Zacks.com click here. Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Covenant Transportation Group, Inc. (CVTI): Free Stock Analysis Report To read this article on Zacks.com click here. If you are still interested in the Transportation sector, you may instead consider a better-ranked stock - American Airlines Group Inc. AAL . Covenant Transportation Group, Inc. Price and Consensus Covenant Transportation Group, Inc. Price and Consensus | Covenant Transportation Group, Inc. Quote So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don't have a long time horizon to wait.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Covenant Transportation Group, Inc. (CVTI): Free Stock Analysis Report To read this article on Zacks.com click here. If you are still interested in the Transportation sector, you may instead consider a better-ranked stock - American Airlines Group Inc. AAL . One such stock that you may want to consider dropping is Covenant Transportation Group , Inc.CVTI , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year.
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If you are still interested in the Transportation sector, you may instead consider a better-ranked stock - American Airlines Group Inc. AAL . Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Covenant Transportation Group, Inc. (CVTI): Free Stock Analysis Report To read this article on Zacks.com click here. One such stock that you may want to consider dropping is Covenant Transportation Group , Inc.CVTI , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year.
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7451.0
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2017-07-10 00:00:00 UTC
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What's in Store for Alaska Air Group (ALK) Pilots' Contract?
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AAL
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https://www.nasdaq.com/articles/whats-in-store-for-alaska-air-group-alk-pilots-contract-2017-07-10
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nan
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nan
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One of the most notable events in the airline space in 2016 was the acquisition of Virgin America by Alaska Air GroupALK . This buyout, which was completed on Dec 14, resulted in the creation of the fifth-largest airline in the U.S. in terms of passenger traffic.
The integration process is now on. Notably, in Mar 2017, Alaska Air Group announced its intention to terminate the Virgin America brand in 2019 in a bid to maintain uniformity and operate under one brand.
Even though Alaska Air Group had said on the first-quarter conference call that the integration process was making good progress, talks of a joint contract for pilots at Alaska Air and Virgin America have run into rough weather. We note that pilots of both parties are represented by the Air Line Pilots Association (ALPA).
Arbitration- The Way Forward
The mediated talks on the joint contract, which were in progress since the beginning of May , ended recently without reaching any conclusion on key issues like compensation, retirement benefits and more. The failure to arrive at a joint pilot contract is a huge setback to the process of integrating the two pilot groups.
In fact, with no agreement possible between pilots and management, arbitration is the way forward. The arbitration process will reportedly begin on Aug 28, 2017. Particularly, since a joint contract is essential for the pilot combination process, focus will undoubtedly remain on the arbitration proceedings. Additionally, we expect a detailed commentary on the pilots' issue on the second quarter conference call at Alaska Air Group on Jul 26.
Apart from the above issue, Alaska Air Group was also in the news when pilots at one of its subsidiaries, Horizon Air, approved an amendment for the existing eight-year pay-related contract. Following the ratification, Alaska Air Group lifted its forecast for cost per available seat mile (CASM) for the second quarter as well as full-year 2017.
Alaska Air Group, Inc. Price
Alaska Air Group, Inc. Price | Alaska Air Group, Inc. Quote
Zacks Rank & Key Picks
Alaska Air Group holds a Zacks Rank #2 (Buy). Investors in the airline space may also consider American Airlines Group AAL , Delta Air Lines DAL and United Continental Holdings UAL . All three stocks sport a Zacks Rank#1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of American Airlines, Delta and United Continental have rallied over 25%, 23% and 10% respectively, in the last three months.
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
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
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 the airline space may also consider American Airlines Group AAL , Delta Air Lines DAL and United Continental Holdings 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 Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Arbitration- The Way Forward The mediated talks on the joint contract, which were in progress since the beginning of May , ended recently without reaching any conclusion on key issues like compensation, retirement benefits and more.
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Investors in the airline space may also consider American Airlines Group AAL , Delta Air Lines DAL and United Continental Holdings 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 Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Alaska Air Group, Inc. Price Alaska Air Group, Inc. Price | Alaska Air Group, Inc. Quote Zacks Rank & Key Picks Alaska Air Group holds a Zacks Rank #2 (Buy).
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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 Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Investors in the airline space may also consider American Airlines Group AAL , Delta Air Lines DAL and United Continental Holdings UAL . Even though Alaska Air Group had said on the first-quarter conference call that the integration process was making good progress, talks of a joint contract for pilots at Alaska Air and Virgin America have run into rough weather.
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Investors in the airline space may also consider American Airlines Group AAL , Delta Air Lines DAL and United Continental Holdings 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 Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Even though Alaska Air Group had said on the first-quarter conference call that the integration process was making good progress, talks of a joint contract for pilots at Alaska Air and Virgin America have run into rough weather.
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7452.0
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2017-07-10 00:00:00 UTC
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United Airlines to Offer Newark-Rome Service Year-Round
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AAL
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https://www.nasdaq.com/articles/united-airlines-to-offer-newark-rome-service-year-round-2017-07-10
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nan
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nan
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United Continental Holdings ' UAL wholly owned subsidiary, United Airlines, has announced expansion of New York/Newark-Rome schedule from seasonal to year-round service as a mark of celebrating its 20 years of service to Italy. The service is expected to start on Nov 9, 2017.
United Airlines' current summer seasonal daily service will be expanded from Nov 2017 through to March 2018. The carrier will continue its existing seasonal service to Rome during the summer months from its hubs at Chicago O'Hare, New York/Newark Liberty and Washington D.C./Dulles International Airport.
The airline will operate thrice a week between Nov 9, 2017-Dec 19, 2017 and Jan 9, 2018-Mar 7, 2018, plus fly daily between Dec 20, 2017-Jan 8, 2018 and Mar 8, 2018-Oct 27, 2018.
During summer, United Airlines operates between New York/Newark and Rome using a Boeing 767-400 aircraft. The aircraft has a total of 242 seats (39 flat-bed seats in United Polaris business class and 203 seats in United Economy, inclusive of 70 Economy Plus seats).
However in winter, i.e., from Nov 9, 2017 until Mar 7, 2018, the carrier will run operations on a Boeing 767-300 aircraft. This aircraft has 214 seats in all. The flights are equipped with all modern facilities, aimed at improving the flying experience of passengers.
United Continental Holdings, Inc. Price
United Continental Holdings, Inc. Price | United Continental Holdings, Inc. Quote
Zacks Rank & Key Picks
United Continental currently carries a Zacks Rank #1 (Strong Buy). Other stocks worth considering in the airline space are Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each flaunting a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of Air France-KLM, American Airlines and Delta Air Lines have rallied over 91%, 25% and 23%, respectively, in the last three months.
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
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
Air France-KLM SA (AFLYY): 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 worth considering in the airline space are Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each flaunting a Zacks Rank #1. 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 Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. The carrier will continue its existing seasonal service to Rome during the summer months from its hubs at Chicago O'Hare, New York/Newark Liberty and Washington D.C./Dulles International Airport.
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Other stocks worth considering in the airline space are Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each flaunting a Zacks Rank #1. 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 Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. United Continental Holdings, Inc. Price United Continental Holdings, Inc. Price | United Continental Holdings, Inc. Quote Zacks Rank & Key Picks United Continental currently carries a Zacks Rank #1 (Strong Buy).
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Other stocks worth considering in the airline space are Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each flaunting a Zacks Rank #1. 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 Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. United Continental Holdings, Inc. Price United Continental Holdings, Inc. Price | United Continental Holdings, Inc. Quote Zacks Rank & Key Picks United Continental currently carries a Zacks Rank #1 (Strong Buy).
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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 Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Other stocks worth considering in the airline space are Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each flaunting a Zacks Rank #1. United Airlines' current summer seasonal daily service will be expanded from Nov 2017 through to March 2018.
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7453.0
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2017-07-10 00:00:00 UTC
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Delta Air Lines (DAL) Q2 Earnings: What's in the Cards?
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-dal-q2-earnings%3A-whats-in-the-cards-2017-07-10
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nan
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nan
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Delta Air Lines, Inc.DAL is scheduled to report second-quarter 2017 results on Jul 13, before the market opens.
The company has reported a positive earnings surprise of 5.48% in the last quarter. Besides, the carrier has an impressive earnings history, beating the Zacks Consensus Estimate in three of the last four quarters with an average beat of 3.01%.
Why a Likely Positive Surprise?
Our proven model shows that Delta is likely to beat earnings this quarter as well, because it has the perfect combination of two key ingredients.
Zacks ESP : Earnings ESP , which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +1.83%. This is because the Most Accurate estimate stands at $1.67, whereas the Zacks Consensus Estimate is pegged lower at $1.64. A favourable Zacks ESP serves as a meaningful, leading indicator for a likely positive earnings surprise.
Zacks Rank: Delta currently sports a Zacks Rank #1 (Strong Buy). Note that the stocks with Zacks Rank #1, 2 (Buy) or 3 (Hold) have a significantly higher chance of beating earnings estimates. Conversely, the Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
The combination of Delta's Zacks Rank #1 and +1.83% ESP makes us reasonably confident of an earnings beat on Jul 13.
What's Driving the Better-than-Expected Earnings?
Delta is expected to perform well in the second quarter. It has recently received good news with respect to passenger revenue per available seat miles (PRASM). The key metric has increased 2.5% on a year-over-year basis in Jun 2017.
Following the strong PRASM performance, the carrier expects the metric to grow approximately 2.5% in the second quarter, i.e.in the upper end of its previously guided range of 1-3%. The company expects pre-tax margin to be in the band of 18- 19% in the second quarter (previous guidance was between 17-19%).
We are appreciative of the company's efforts to enhance shareholders' wealth through dividends and share buybacks. At a meeting with analysts in May 2017, Delta had announced that its board of directors approved of a new share repurchase program worth $5 billion. Simultaneously, the company has hiked its quarterly dividend by over 50% to 30.5 cents per share.
The carrier's expansion efforts are also encouraging. For Delta has recently partnered with Grupo Aeromexico to boost its cargo operations across the United States and Mexico. It also entered into a joint venture with Korean Air Lines to create a leading trans-Pacific joint venture connecting the U.S. with Asia. The collaboration will offer an expanded network, industry-leading products and services plus an enhanced customer experience to boot.
However, increasing costs are likely to hurt the bottom-line growth in the second quarter of 2017. Cost per Available Seat Mile (including profit sharing) is anticipated to increase in the range of 6-8% in the second quarter, mainly due to higher labor costs.
Delta Air Lines, Inc. Price and EPS Surprise
Delta Air Lines, Inc. Price and EPS Surprise | Delta Air Lines, Inc. Quote
Other Stocks to Consider
Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases.
American Airlines has an Earnings ESP of +3.51% and a Zacks Rank #1. The company is expected to release second-quarter 2017 results on Jul 28. You can see the complete list of today's Zacks #1 Rank stocks here .
Alaska Air Group has an Earnings ESP of +2.04% and a Zacks Rank #2. The company will reveal second-quarter 2017 financial numbers on Jul 26.
Canadian National Railway has an Earnings ESP of +1.03% and a Zacks Rank #3. The company will release second-quarter 2017 earnings numbers on Jul 25.
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
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): 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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Delta Air Lines, Inc. Price and EPS Surprise Delta Air Lines, Inc. Price and EPS Surprise | Delta Air Lines, Inc. Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Following the strong PRASM performance, the carrier expects the metric to grow approximately 2.5% in the second quarter, i.e.in the upper end of its previously guided range of 1-3%.
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Delta Air Lines, Inc. Price and EPS Surprise Delta Air Lines, Inc. Price and EPS Surprise | Delta Air Lines, Inc. Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): 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.
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Delta Air Lines, Inc. Price and EPS Surprise Delta Air Lines, Inc. Price and EPS Surprise | Delta Air Lines, Inc. Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks ESP : Earnings ESP , which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +1.83%.
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Delta Air Lines, Inc. Price and EPS Surprise Delta Air Lines, Inc. Price and EPS Surprise | Delta Air Lines, Inc. Quote Other Stocks to Consider Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report To read this article on Zacks.com click here. The company has reported a positive earnings surprise of 5.48% in the last quarter.
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7454.0
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2017-07-07 00:00:00 UTC
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2 Zombie Stocks Coming Back From the Dead
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AAL
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https://www.nasdaq.com/articles/2-zombie-stocks-coming-back-dead-2017-07-07
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nan
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nan
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To paraphrase a tired but accurate saying, you can't keep a good stock down.
The past decade saw corporate America endure a financial crisis. More than a few companies during and after that time looked as if they'd go to their graves, but somehow they found new life. Here's a look at two businesses that escaped apparent doom.
A revitalized Citi
One of the worst crisis-era casualties in the financial sector was Citigroup (NYSE: C) . The bank's heavy involvement with the dubious investments popular at the time plunged it so deep into the red -- it lost $17 billion in a single quarter of 2008 -- that it seemed certain it would drown. The long-suffering U.S. taxpayer extended a rescuing hand, in the form of a $50 billion government bailout, to bring Citi out of the drink.
Subsequently, the bank limped along, not least by packaging its portfolio of bad assets into a subsidiary called Citi Holdings that contained an eye-watering $800 billion-plus worth of junk.
Quickly getting to work, the bank improved its lending practices, raised fresh capital, and aggressively sold off the Citi Holdings assets. Before long Citi was profitable again. These days, it lands consistently and heavily in the black on the bottom line. Its 2016 result, coming in at nearly $14.8 billion, was the second highest in a five-year period. Over that time, profitability hasn't dipped below $7.2 billion.
Meanwhile, the Citi Holdings dodo bird has gone extinct, having been effectively folded into the bank's regular operations. That $800 billion and change had been eviscerated to the point where it held a relatively puny $54 billion worth of bad stuff -- a mere 3% of Citi's total assets.
Although the company hasn't yet reached the levels it was at before the crisis -- in terms of share price, dividend payout, and top-line performance -- it's doing far better than it was during those dark days. The stock price has more than doubled, while Citi is planning a 100% raise in its quarterly dividend, to $0.32 per share, plus a mighty $15.6 billion share-buyback program over the next year.
Your flight has been upgraded
On the back of a slump in the airline industry, compounded by poor performance, the entity now known as American Airlines Group (NASDAQ: AAL) declared bankruptcy in late 2011.
The company, then known as AMR, limped on nevertheless, until late 2013, when a merger with US Airways wrenched it out of bankruptcy. The combined entity became American Airlines Group; the US Airways brand was phased out.
Big corporate transformations can be difficult, and the refashioned airline wasn't a highflier at the beginning. Its first set of annual figures, which included less than a month of US Airways' 2013 results, revealed a net loss of over $1.8 billion.
But once the performance of the two component parts fused together, that yearly bottom-line loss flipped to a profit and has stayed there. Meanwhile, a serious drop in oil prices starting in mid-2014 drastically cut what's typically the No. 2 cost item for airlines. American Airlines' spending on the combustible stuff fell a steep 41% in fiscal 2015 from the previous year's level.
Since then, oil hasn't recovered to any meaningful extent, the company has kept its employees sweet, and itself competitive, with a recent round of pay raises, and the U.S. dollar has strengthened, making international travel cheaper for our citizens.
On top of that, airline stocks in general and American in particular got a huge vote of shareholder confidence earlier this year. Warren Buffett revealed that his Berkshire Hathaway had invested over $8 billion in shares of the big domestic carriers, including, of course, American.
Although American's stock price took a hit earlier this year following those wage increases, it has since recovered. These days, it trades at more than double its level when the merger deal was announced.
Left for dead
At any given time, there are plenty of companies on the stock market that are down on their luck. Perhaps bad management has driven investors away, or their industries are in a slump, or they're on the ground for one or several other dispiriting reasons. Long-term, buy-and-hold investors should keep an eye on these businesses. After all, one of them could pull a Citigroup or American Airlines Group and pop up suddenly from the ground.
10 stocks we like better than Citigroup
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Citigroup wasn't one of them! That's right -- they think these 10 stocks are even better buys.
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Eric Volkman has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Your flight has been upgraded On the back of a slump in the airline industry, compounded by poor performance, the entity now known as American Airlines Group (NASDAQ: AAL) declared bankruptcy in late 2011. The bank's heavy involvement with the dubious investments popular at the time plunged it so deep into the red -- it lost $17 billion in a single quarter of 2008 -- that it seemed certain it would drown. Subsequently, the bank limped along, not least by packaging its portfolio of bad assets into a subsidiary called Citi Holdings that contained an eye-watering $800 billion-plus worth of junk.
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Your flight has been upgraded On the back of a slump in the airline industry, compounded by poor performance, the entity now known as American Airlines Group (NASDAQ: AAL) declared bankruptcy in late 2011. Warren Buffett revealed that his Berkshire Hathaway had invested over $8 billion in shares of the big domestic carriers, including, of course, American. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.
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Your flight has been upgraded On the back of a slump in the airline industry, compounded by poor performance, the entity now known as American Airlines Group (NASDAQ: AAL) declared bankruptcy in late 2011. That $800 billion and change had been eviscerated to the point where it held a relatively puny $54 billion worth of bad stuff -- a mere 3% of Citi's total assets. The stock price has more than doubled, while Citi is planning a 100% raise in its quarterly dividend, to $0.32 per share, plus a mighty $15.6 billion share-buyback program over the next year.
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Your flight has been upgraded On the back of a slump in the airline industry, compounded by poor performance, the entity now known as American Airlines Group (NASDAQ: AAL) declared bankruptcy in late 2011. Over that time, profitability hasn't dipped below $7.2 billion. * David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Citigroup wasn't one of them!
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7455.0
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2017-07-07 00:00:00 UTC
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5 Airline Stocks to Take Off on Likely Q2 Earnings Beat
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AAL
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https://www.nasdaq.com/articles/5-airline-stocks-to-take-off-on-likely-q2-earnings-beat-2017-07-07
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nan
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nan
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The Q2 earnings season is round the corner as far as stocks in the airline space are concerned. The Atlanta, GA-based airline behemoth Delta Air Lines ( DAL ) will kick off the earnings season for airline players on Jul 13.
On the back of multiple tailwinds, stocks in the space are expected to perform well in this earnings season. In fact, the entire transportation sector of which airlines are a part, is projected to come out with flying colors in Q2.
The bright picture is corroborated by our latest Earnings Trends report. According to the report, the top and bottom lines for this key sector (one of the 16 Zacks sectors) are expected to expand 8.9% and 3%, respectively, in Q2 on a year-over-year basis. In fact, the readings compare favorably to the figures in Q1 where transportation earnings contracted 17.8%, while revenues grew at 6.9%.
As the airline stocks are back in favor despite some hiccups, they are largely responsible for the bright projection for the broader sector. The optimism surrounding airlines is well reflected by the fact that the Zacks categorized Transportation-Airline industry has handily outperformed the S&P 500 Index during the April - June timeframe. While the S&P 500 Index has gained 3.3%, the industry added 10.9% in Q2.
Why the Surge?
Issues related to unit revenues - a measure of sales relative to capacity for a carrier - had negatively impacted airline companies in the recent past. However, the revenue environment has improved as of late. This is reflected in the bullish Q2 unit revenue projections from the likes of American Airlines Group ( AAL ), JetBlue Airways Corporation ( JBLU ) and Delta.
Moreover, airline companies remain in excellent financial health, which has allowed them to indulge in employee-friendly (profit sharing) and investor-friendly activities (dividend payments/buybacks). For example, the likes of Delta and Southwest Airlines ( LUV ) hiked their dividend pay-outs during Q2. Also, airlines are constantly making investments to modernize their fleet and improve the flying experience of passengers, courtesy their solid balance sheets.
Additionally, oil prices were down approximately 9% in the April - June period. In fact, by Jun 21, crude had slumped in excess of 20% from its highs of $55 a barrel, touched in late February this year. In fact, lower oil prices mean good news for companies in the airline space as fuel costs account for a significant chunk of their expenditures.
Furthermore, the optimism surrounding airline stocks has not gone unnoticed by Warren Buffet; the Oracle of Omaha increased his stakes in American Airlines and Southwest Airlines in the first quarter of 2017 by 8% and 10%, respectively. The data is according to a regulatory filing by Buffett's Berkshire Hathaway. The interest in airline stocks shown by one of the most revered investors of all time certainly also bodes well for the space.
Zacks Industry Rank Highlights the Favorable Scenario
The positive developments are reflected by the bullish Zacks Industry Rank of 9 carried by the 22-member Transportation- Airline industry. Also 50% of the stocks in the space are Buy- ranked.
Notably, the favorable rank places the industry in the top 4% of the 250+ groups. The positioning indicates a positive outlook. In fact, our back-testing shows that the top 50% of the Zacks ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Given the favorable backdrop, it is very much likely that airline stocks will have a strong showing in their Q2 results. Naturally, it is a prudent idea to add such stocks to one's portfolio for handsome returns.
How to Make the Right Choice?
With the airline space being densely populated, the task of selecting the right stocks is by no means an easy one. The process is akin to searching for 'a needle in a haystack' unless one is aware of an appropriate method to make the right choice.
One way to narrow down the list of choices is by looking at stocks with a favorable Zacks Rank of #1 (Strong Buy), 2 (Buy) or 3 (Hold) alongside a positive Earnings ESP .
Earnings ESP is our proprietary methodology to determine which stocks have the best chance to surprise in their next earnings announcement. It shows the percentage difference between the Most Accurate estimate and the Zacks Consensus Estimate.
Our research shows that for stocks with this combination, the chance of a positive earnings surprise is as high as 70%. An earnings beat boosts investor confidence in the stock, which is reflected in its rapid price appreciation. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
5 Attractive Picks
With the aid of the above methodology, we have zeroed in on five airline stocks that are likely to report better-than-expected earnings per share in Q2. We believe that these stocks could turn out to be great additions to your portfolio and are worth a look.
Our first choice is Delta Air Lines ( DAL ). We expect the carrier to surpass expectations as it has an Earnings ESP of +1.83% and a Zacks Rank #1. The Zacks Consensus Estimate for Q2 has moved up 3.8% in the last two months to $1.64 per share. You can see the complete list of today's Zacks #1 Rank stocks here .
United Continental Holdings ( UAL ), based in Chicago, is also expected to report better-than-expected Q2 earnings, by virtue of its Zacks Rank #1 and an Earnings ESP of +6.73%. The holding company for both United Airlines and Continental Airlines is expected to reveal its results on Jul 18. The Zacks Consensus Estimate for Q2 has climbed approximately 2.8% in the last two months to $2.23 per share.
Our next choice in the list of likely outperformers with respect to the bottom line in Q2 is the Fort Worth, TX-based American Airlines Group ( AAL ). The company sports a Zacks Rank #1 and has an Earnings ESP of +3.51%. The Zacks Consensus Estimate for Q2 has moved up 6.2% in the last two months to $1.71 per share. The carrier is expected to reveal its results on Jul 28.
Next, is Dallas-based, Southwest Airlines ( LUV ) that carries a Zacks Rank #2 and has an Earnings ESP of +0.84%. The Zacks Consensus Estimate for Q2 has climbed 5.3% in the last three months to $1.19 per share. It is scheduled to reveal the results on Jul 27.
Our final choice is Seattle, WA-based Alaska Air Group ( ALK ). The company carries a Zacks Rank #2 and has an Earnings ESP of +2.04%. The Zacks Consensus Estimate for Q2 has increased approximately 5.2% in the last two months to $2.45 per share. The carrier is expected to unveil its results on Jul 20.
Will You Make a Fortune on the Shift to Electric Cars?
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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 Company (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
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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This is reflected in the bullish Q2 unit revenue projections from the likes of American Airlines Group ( AAL ), JetBlue Airways Corporation ( JBLU ) and Delta. Our next choice in the list of likely outperformers with respect to the bottom line in Q2 is the Fort Worth, TX-based American Airlines Group ( AAL ). Click to get this free report Southwest Airlines Company (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 To read this article on Zacks.com click here.
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This is reflected in the bullish Q2 unit revenue projections from the likes of American Airlines Group ( AAL ), JetBlue Airways Corporation ( JBLU ) and Delta. Click to get this free report Southwest Airlines Company (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 To read this article on Zacks.com click here. Our next choice in the list of likely outperformers with respect to the bottom line in Q2 is the Fort Worth, TX-based American Airlines Group ( AAL ).
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Click to get this free report Southwest Airlines Company (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 To read this article on Zacks.com click here. This is reflected in the bullish Q2 unit revenue projections from the likes of American Airlines Group ( AAL ), JetBlue Airways Corporation ( JBLU ) and Delta. Our next choice in the list of likely outperformers with respect to the bottom line in Q2 is the Fort Worth, TX-based American Airlines Group ( AAL ).
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This is reflected in the bullish Q2 unit revenue projections from the likes of American Airlines Group ( AAL ), JetBlue Airways Corporation ( JBLU ) and Delta. Our next choice in the list of likely outperformers with respect to the bottom line in Q2 is the Fort Worth, TX-based American Airlines Group ( AAL ). Click to get this free report Southwest Airlines Company (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 To read this article on Zacks.com click here.
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7456.0
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2017-07-07 00:00:00 UTC
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Use Relative Price Strength to Find Out 4 Winning Stocks
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AAL
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https://www.nasdaq.com/articles/use-relative-price-strength-find-out-4-winning-stocks-2017-07-07
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nan
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nan
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Investors generally gauge a stock's potential return by examining earnings growth and valuation multiples. At the same time, it's important to measure the performance of such a stock relative to its industry or peers, or the appropriate benchmark.
If you see that a stock is underperforming on fundamental factors, then it would be prudent to move on and find a better alternative. However, those outperforming their respective sectors in terms of price should be selected because they stand a better chance to provide considerable returns.
Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength. Stocks delivering better than the S&P 500 over a period of 1 to 3 months at the least and having solid fundamentals indicate room for growth, and are the best ways to go about this strategy.
Finally, it is important to find out whether analysts are optimistic about the upcoming earnings results of these companies. In order to do this, we have added positive estimate revisions for the current quarter's (Q1) earnings to our screen. When a stock undergoes an upward revision, it leads to additional price gains.
Screening Parameters
Relative % Price change - 12 weeks greater than 0
Relative % Price change - 4 weeks greater than 0
Relative % Price change - 1 week greater than 0
(We have considered those stocks that have been outperforming the S&P 500 over the last 12 weeks, 4 weeks and 1 week.)
% Change (Q1) Est. over 4 Weeks greater than 0: Positive current quarter estimate revisions over the last four weeks.
Zacks Rank equal to 1: Only Zacks Rank #1 (Strong Buy) stocks - that have returned more than 26% annually over the last 26 years and surpassed the S&P 500 in 23 of the last 26 years - can get through. You can see the complete list of today's Zacks #1 Rank stocks here .
Current Price greater than or equal to $5 and Average 20-day Volume greater than or equal to 50,000: A minimum price of $5 is a good standard to screen low-priced stocks, while a high trading volume would imply adequate liquidity.
VGM Scoreless than or equal to B: Our research shows that stocks with a VGM Score of 'A' or 'B' when combined with a Zacks Rank #1 or #2 (Buy) offer the best upside potential.
Here are the four stocks that made it through the screen:
American Airlines Group Inc.AAL : Headquartered in Fort Worth, TX, American Airlines Group is an international carrier that operates more than 6,700 daily flights to over 330 destinations in more than 50 nations across the globe from its hubs. The company has a VGM score of "B" and an excellent earnings surprise history. It surpassed estimates in three of the last four quarters at an average rate of 20.24%.
H&R Block Inc.HRB : A provider of tax, accounting and business consulting services and products, H&R Block has a VGM score of "A". Over the past 30 days, the Kansas City, MO-based firm has seen the Zacks Consensus Estimate for fiscal years 2018 and 2019 (ending April) increase 10.5% and 9.6%, to $2.00 and $2.05 per share, respectively.
ARI Network Services Inc.ARIS : ARI Network Services is a leading provider of proprietary software tools and marketing services to its clients - dealers, distributors and manufacturers - to increase their sale in a variety of markets. Sporting a VGM score of "B", this Milwaukee, WI-headquartered company's expected EPS growth rate for 3 to 5 years currently stands at 15.00%, comparing favorably with the industry growth rate of 13.90%.
The Progressive Corp.PGR : Headquartered in Mayfield Village, OH, The Progressive Corp. is a leading independent agency writer of private passenger auto coverage, and the market share leader for motorcycle products since 1998. The 2017 Zacks Consensus Estimate for this company is $2.40, representing some 44.9% earnings per share growth over 2016. Next year's average forecast is $2.64, pointing to another 9.7% growth. The Progressive Corp. has a VGM score of "B".
Sign up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks' portfolios and strategies are available at:https://www.zacks.com/performance.
Zacks Restaurant Recommendations: In addition to dining at these special places, you can feast on their stock shares. A Zacks Special Report spotlights 5 recent IPOs to watch plus 2 stocks that offer immediate promise in a booming sector. Download it free »
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
ARI Network Services, Inc. (ARIS): Free Stock Analysis Report
Progressive Corporation (The) (PGR): Free Stock Analysis Report
H&R Block, Inc. (HRB): 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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Here are the four stocks that made it through the screen: American Airlines Group Inc.AAL : Headquartered in Fort Worth, TX, American Airlines Group is an international carrier that operates more than 6,700 daily flights to over 330 destinations in more than 50 nations across the globe from its hubs. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report ARI Network Services, Inc. (ARIS): Free Stock Analysis Report Progressive Corporation (The) (PGR): Free Stock Analysis Report H&R Block, Inc. (HRB): Free Stock Analysis Report To read this article on Zacks.com click here. Then again, it is imperative that you determine whether or not an investment has relevant upside potential when considering stocks with significant relative price strength.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report ARI Network Services, Inc. (ARIS): Free Stock Analysis Report Progressive Corporation (The) (PGR): Free Stock Analysis Report H&R Block, Inc. (HRB): Free Stock Analysis Report To read this article on Zacks.com click here. Here are the four stocks that made it through the screen: American Airlines Group Inc.AAL : Headquartered in Fort Worth, TX, American Airlines Group is an international carrier that operates more than 6,700 daily flights to over 330 destinations in more than 50 nations across the globe from its hubs. Screening Parameters Relative % Price change - 12 weeks greater than 0 Relative % Price change - 4 weeks greater than 0 Relative % Price change - 1 week greater than 0 (We have considered those stocks that have been outperforming the S&P 500 over the last 12 weeks, 4 weeks and 1 week.)
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report ARI Network Services, Inc. (ARIS): Free Stock Analysis Report Progressive Corporation (The) (PGR): Free Stock Analysis Report H&R Block, Inc. (HRB): Free Stock Analysis Report To read this article on Zacks.com click here. Here are the four stocks that made it through the screen: American Airlines Group Inc.AAL : Headquartered in Fort Worth, TX, American Airlines Group is an international carrier that operates more than 6,700 daily flights to over 330 destinations in more than 50 nations across the globe from its hubs. Screening Parameters Relative % Price change - 12 weeks greater than 0 Relative % Price change - 4 weeks greater than 0 Relative % Price change - 1 week greater than 0 (We have considered those stocks that have been outperforming the S&P 500 over the last 12 weeks, 4 weeks and 1 week.)
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report ARI Network Services, Inc. (ARIS): Free Stock Analysis Report Progressive Corporation (The) (PGR): Free Stock Analysis Report H&R Block, Inc. (HRB): Free Stock Analysis Report To read this article on Zacks.com click here. Here are the four stocks that made it through the screen: American Airlines Group Inc.AAL : Headquartered in Fort Worth, TX, American Airlines Group is an international carrier that operates more than 6,700 daily flights to over 330 destinations in more than 50 nations across the globe from its hubs. VGM Scoreless than or equal to B: Our research shows that stocks with a VGM Score of 'A' or 'B' when combined with a Zacks Rank #1 or #2 (Buy) offer the best upside potential.
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7457.0
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2017-07-07 00:00:00 UTC
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Noteworthy Friday Option Activity: AAL, HLF, X
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AAL
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity-aal-hlf-x-2017-07-07
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 34,781 contracts has been traded thus far today, a contract volume which is representative of approximately 3.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 58.4% of AAL's average daily trading volume over the past month, of 6.0 million shares. Especially high volume was seen for the $50 strike call option expiring August 18, 2017 , with 2,924 contracts trading so far today, representing approximately 292,400 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $50 strike highlighted in orange:
Herbalife Ltd. (Symbol: HLF) options are showing a volume of 4,892 contracts thus far today. That number of contracts represents approximately 489,200 underlying shares, working out to a sizeable 56.9% of HLF's average daily trading volume over the past month, of 860,105 shares. Particularly high volume was seen for the $65 strike put option expiring August 18, 2017 , with 605 contracts trading so far today, representing approximately 60,500 underlying shares of HLF. Below is a chart showing HLF's trailing twelve month trading history, with the $65 strike highlighted in orange:
And United States Steel Corp. (Symbol: X) options are showing a volume of 107,028 contracts thus far today. That number of contracts represents approximately 10.7 million underlying shares, working out to a sizeable 56.1% of X's average daily trading volume over the past month, of 19.1 million shares. Especially high volume was seen for the $20 strike put option expiring July 21, 2017 , with 8,493 contracts trading so far today, representing approximately 849,300 underlying shares of X. Below is a chart showing X's trailing twelve month trading history, with the $20 strike highlighted in orange:
For the various different available expirations for AAL options , HLF options , or X 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 $50 strike call option expiring August 18, 2017 , with 2,924 contracts trading so far today, representing approximately 292,400 underlying shares of AAL. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 34,781 contracts has been traded thus far today, a contract volume which is representative of approximately 3.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 58.4% of AAL's average daily trading volume over the past month, of 6.0 million shares.
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Below is a chart showing AAL's trailing twelve month trading history, with the $50 strike highlighted in orange: Herbalife Ltd. (Symbol: HLF) options are showing a volume of 4,892 contracts thus far today. Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 34,781 contracts has been traded thus far today, a contract volume which is representative of approximately 3.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 58.4% of AAL's average daily trading volume over the past month, of 6.0 million shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 34,781 contracts has been traded thus far today, a contract volume which is representative of approximately 3.5 million underlying shares (given that every 1 contract represents 100 underlying shares). Especially high volume was seen for the $50 strike call option expiring August 18, 2017 , with 2,924 contracts trading so far today, representing approximately 292,400 underlying shares of AAL. That number works out to 58.4% of AAL's average daily trading volume over the past month, of 6.0 million shares.
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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in American Airlines Group Inc (Symbol: AAL), where a total volume of 34,781 contracts has been traded thus far today, a contract volume which is representative of approximately 3.5 million underlying shares (given that every 1 contract represents 100 underlying shares). Especially high volume was seen for the $50 strike call option expiring August 18, 2017 , with 2,924 contracts trading so far today, representing approximately 292,400 underlying shares of AAL. Below is a chart showing X's trailing twelve month trading history, with the $20 strike highlighted in orange: For the various different available expirations for AAL options , HLF options , or X options , visit StockOptionsChannel.com.
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7458.0
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2017-07-07 00:00:00 UTC
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Delta (DAL) Aims at Boston Expansion Through New Flights
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AAL
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https://www.nasdaq.com/articles/delta-dal-aims-at-boston-expansion-through-new-flights-2017-07-07
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nan
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nan
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Atlanta, GA-based Delta Air Lines, Inc.DAL has announced non-stop flights to Pittsburgh and New Orleans in a bid to extend its services to Boston customers.
Delta will ply twice daily nonstop flights to Pittsburgh, from Oct 1, this year. Seasonal flights to New Orleans, are expected to start operations from Feb. 10, 2018. Following this route expansion, Delta and its partners will serve a total of 47 destinations worldwide from Boston.
Non-stop seasonal flights to New Orleans Louis Armstrong Airport will operate on the weekends (Saturdays-Sundays) from Feb 10 through Apr 1, 2018 with a view to meet the customers' high leisure demand.
Previously this year, Delta had introduced services to 10 new destinations from Boston, including Tampa, Dublin, Ireland, San Francisco and Buffalo, N.Y.
Delta will expand the weekend West Palm Beach, Fla. and Fort Myers, Fla. flights to daily from Dec 21, 2017. It will also extend the weekend Ft. Lauderdale, Fla. flights to twice daily from Dec 21 onward.
In a bid to meet the surge in demand during the peak holiday season, Delta intends to add more non-stop flights to popular Caribbean tourist spots like Montego Bay, Jamaica; Punta Cana, Dominican Republic; St. Thomas, U.S. Virgin Islands; and Nassau, Bahamas; from Dec 21.
Delta Air Lines, Inc. Price
Delta Air Lines, Inc. Price | Delta Air Lines, Inc. Quote
Zacks Rank & Key Picks
Delta Air Lines currently sports a Zacks Rank #1 (Strong Buy). Some other stocks worth considering in the same space are Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Deutsche Lufthansa AG DLAKY , each sporting a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of Air France-KLM, American Airlines and Deutsche Lufthansa have rallied over 95%, 24% and 50% respectively, in the last three months.
Will You Make a Fortune on the Shift to Electric Cars?
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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
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Air France-KLM SA (AFLYY): 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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Some other stocks worth considering in the same space are Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Deutsche Lufthansa AG DLAKY , each sporting a Zacks Rank #1. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Non-stop seasonal flights to New Orleans Louis Armstrong Airport will operate on the weekends (Saturdays-Sundays) from Feb 10 through Apr 1, 2018 with a view to meet the customers' high leisure demand.
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Some other stocks worth considering in the same space are Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Deutsche Lufthansa AG DLAKY , each sporting a Zacks Rank #1. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): 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 Zacks Rank & Key Picks Delta Air Lines currently sports a Zacks Rank #1 (Strong Buy).
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Some other stocks worth considering in the same space are Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Deutsche Lufthansa AG DLAKY , each sporting a Zacks Rank #1. Previously this year, Delta had introduced services to 10 new destinations from Boston, including Tampa, Dublin, Ireland, San Francisco and Buffalo, N.Y. Delta will expand the weekend West Palm Beach, Fla. and Fort Myers, Fla. flights to daily from Dec 21, 2017.
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Some other stocks worth considering in the same space are Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Deutsche Lufthansa AG DLAKY , each sporting a Zacks Rank #1. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Atlanta, GA-based Delta Air Lines, Inc.DAL has announced non-stop flights to Pittsburgh and New Orleans in a bid to extend its services to Boston customers.
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7459.0
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2017-07-06 00:00:00 UTC
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CSX Stock Scales New 52-Week High on Multiple Tailwinds
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AAL
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https://www.nasdaq.com/articles/csx-stock-scales-new-52-week-high-on-multiple-tailwinds-2017-07-06
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nan
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nan
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Shares of Jacksonville, FL-based CSX CorporationCSX hit a 52-week high of $55.31 per share during the course of the trading session on Jul 5, before retracing a bit to close the session at $55.09 per share.
Notably, the company's shares have performed impressively in the last three months. The stock has rallied 15.47%, comfortably outperforming the Zacks categorized Transportation - Rail industry's gain of 7.22%.
Catalysts Behind the Upsurge
CSX Corp. witnessed expansion in volumes across most key segments in the first quarter of 2017. Coal revenues surged 31% year over year to $522 million due to a 3% improvement in volumes. This is encouraging as coal-related headwinds had hurt results for quite some time. Volume growth is expected in the second quarter as well. Driven by improved efficiencies, the company expects the bottom line to increase by 25% in 2017 on a year-over-year basis.
At the 2017 Bank of America Merrill Lynch Conference, CSX Corp. projected a modest increase in volumes in the second quarter. The company stated that second-quarter coal volumes inched up 1% on a year-over-year basis (period considered Apr 1- May 12).
Moreover, CSX Corp. announced an impressive 11% dividend hike in its quarterly payout policy by dint of which, the new quarterly dividend has now risen to 20 cents per share. In another shareholder friendly move, the company's board has cleared a new $1 billion share buyback program which the management expects to complete by Mar 31, 2018.
Putting all rumors to rest, the company had earlier announced in March that it has inked a deal with Paul Hilal's Mantle Ridge hedge fund. Per the agreement, CSX Corp. has appointed E. Hunter Harrison as its chief executive officer (CEO) with immediate effect. Harrison's appointment seems prudent as the company remains focused on enhancing its fortunes. It aims to report an operating ratio in mid-60s by this year-end.
A Broker Favorite
We note that earnings estimates for CSX Corp. have exhibited a healthy uptrend. Over the last 90 days, the Zacks Consensus Estimate of earnings for the second quarter has gone up 7.4% to 58 cents per share, due to multiple upward revisions. Likewise, the Zacks Consensus Estimate for full-year 2017 has jumped 11.11% in the last three months to $2.30 per share.
Given the wealth of information at the brokers' disposal, it is in the best interests of investors to be guided by their advice and the direction of their estimate revisions, which serve an important pointer in determining the stock price.
Style Score
CSX Corp. has an attractive VGM Score of 'A'. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three metrices.
Zacks Rank & Key Picks
CSX Corp. currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the same space are Kansas City Southern KSU , Norfolk Southern Corporation NSC and American Airlines Group, Inc. AAL . While American Airlines flaunts a Zacks Rank #1 (Strong Buy), Kansas City Southern and Norfolk Southern carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of Kansas City Southern, Norfolk Southern and American Airlines have rallied 19%, 6% and 23% respectively, in the last three months.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X 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
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Kansas City Southern (KSU): Free Stock Analysis Report
CSX Corporation (CSX): Free Stock Analysis Report
Norfolk Souther 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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A few better-ranked stocks in the same space are Kansas City Southern KSU , Norfolk Southern Corporation NSC and American Airlines Group, Inc. AAL . Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report CSX Corporation (CSX): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. In another shareholder friendly move, the company's board has cleared a new $1 billion share buyback program which the management expects to complete by Mar 31, 2018.
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A few better-ranked stocks in the same space are Kansas City Southern KSU , Norfolk Southern Corporation NSC and American Airlines Group, Inc. AAL . Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report CSX Corporation (CSX): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. While American Airlines flaunts a Zacks Rank #1 (Strong Buy), Kansas City Southern and Norfolk Southern carry a Zacks Rank #2 (Buy).
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report CSX Corporation (CSX): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. A few better-ranked stocks in the same space are Kansas City Southern KSU , Norfolk Southern Corporation NSC and American Airlines Group, Inc. AAL . Zacks Rank & Key Picks CSX Corp. currently carries a Zacks Rank #3 (Hold).
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A few better-ranked stocks in the same space are Kansas City Southern KSU , Norfolk Southern Corporation NSC and American Airlines Group, Inc. AAL . Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Kansas City Southern (KSU): Free Stock Analysis Report CSX Corporation (CSX): Free Stock Analysis Report Norfolk Souther Corporation (NSC): Free Stock Analysis Report To read this article on Zacks.com click here. Volume growth is expected in the second quarter as well.
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7460.0
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2017-07-06 00:00:00 UTC
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Delta's June Passenger Unit Revenue Up 2.5%, Q2 View Bullish
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AAL
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https://www.nasdaq.com/articles/deltas-june-passenger-unit-revenue-up-2.5-q2-view-bullish-2017-07-06
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nan
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nan
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Shares of Delta Air LinesDAL have impressed lately. The stock has been up 20.8% in the last three months, handily outperforming the Zacks categorized Transportation Airline industry's gain of 9.7%.
The company received a further boost when it reported impressive June traffic data and unveiled a bullish view on key metrics for the second quarter of 2017. In fact, this Atlanta, GA-based carrier stated that consolidated traffic, measured in revenue passenger miles (RPMs), increased 2.8% in the month (on a year-over-year basis) to approximately 20.83 billion. The upside was driven by 3.9% rise in domestic RPMs.
Consolidated capacity (available seat miles/ASMs) also inched up 1.8% to 23.52 billion in the month. Moreover, load factor or the percentage of seats filled by passengers increased 80 basis points (bps) to 88.5%. This was primarily because traffic growth outweighed the capacity expansion, thereby leading to packed planes.
Additionally, the airline recorded an 82.8% on-time performance and 99.9% completion factor (mainline). The brightest spot of the carrier's June performance was with respect to passenger revenue per available seat mile (PRASM: a measure of unit revenue) that increased 2.5% (ona year-over-year basis).
In fact, at the end of the first six months, Delta generated consolidated RPMs of 105.5 billion (up 1.3 % year over year) and ASMs of 124.1 billion (flat year over year). Also, load factor was 85%, up 110 bps.
Q2 View
Delta's strong PRASM performance in June and May (when the metric increased 3.5%) have raised hopes for this Zacks Rank #1 (Strong Buy) carrier, displaying quarterly unit revenue growth for the first time in the second quarter since the fourth quarter of 2014. You can see the complete list of today's Zacks #1 Rank stocks here .
The carrier now expects the metric to increase approximately 2.5% in the second quarter, despite storms in Atlanta during April that forced the carrier to cancel multiple flights. Moreover, the bullish second-quarter PRASM view implies that the metric is likely to come in at the upper end of its previously guided range of 1% to 3%.
In fact, Delta is not the only carrier to have issued bullish unit revenue forecast. The likes of American Airlines Group AAL and JetBlue Airways Corporation JBLU have also unveiled encouraging projections with respect to the metric for the second quarter of 2017.
Apart from the bullish passenger unit revenue view, Delta also raised the lower end of its guidance for pre-tax margin. Currently, the airline expects the metric to be in the range of 18% to 19% (previous guidance was in the band of 17% to 19%).
With the company inking multiple labor deals, higher labour costs might hurt its bottom-line in the second quarter. In fact, cost per available seat mile, (non-fuel; including profit sharing) is anticipated to increase in the band of 6% to 8% in the quarter, mainly owing to higher labor costs. Also, average fuel price per gallon is projected to be in the band of $1.65 to $1.70. System capacity is expected to be up approximately 0.5% on a year-over- year basis.
We note that labor deals are in vogue in the airline space. Not only Delta, but other players in the space like Southwest Airlines LUV have signed deals with various labor groups over the past few months.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X 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
Southwest Airlines Company (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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The likes of American Airlines Group AAL and JetBlue Airways Corporation JBLU have also unveiled encouraging projections with respect to the metric for the second quarter of 2017. Click to get this free report Southwest Airlines Company (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. The company received a further boost when it reported impressive June traffic data and unveiled a bullish view on key metrics for the second quarter of 2017.
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Click to get this free report Southwest Airlines Company (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. The likes of American Airlines Group AAL and JetBlue Airways Corporation JBLU have also unveiled encouraging projections with respect to the metric for the second quarter of 2017. In fact, this Atlanta, GA-based carrier stated that consolidated traffic, measured in revenue passenger miles (RPMs), increased 2.8% in the month (on a year-over-year basis) to approximately 20.83 billion.
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Click to get this free report Southwest Airlines Company (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. The likes of American Airlines Group AAL and JetBlue Airways Corporation JBLU have also unveiled encouraging projections with respect to the metric for the second quarter of 2017. In fact, at the end of the first six months, Delta generated consolidated RPMs of 105.5 billion (up 1.3 % year over year) and ASMs of 124.1 billion (flat year over year).
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The likes of American Airlines Group AAL and JetBlue Airways Corporation JBLU have also unveiled encouraging projections with respect to the metric for the second quarter of 2017. Click to get this free report Southwest Airlines Company (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. The company received a further boost when it reported impressive June traffic data and unveiled a bullish view on key metrics for the second quarter of 2017.
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7461.0
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2017-07-06 00:00:00 UTC
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Here's Why You Should Hold On to Spirit Airlines for Now
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AAL
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https://www.nasdaq.com/articles/heres-why-you-should-hold-on-to-spirit-airlines-for-now-2017-07-06
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nan
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nan
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Spirit Airlines SAVE has its share of positives despite being hurt by the recent pilot dispute. Let's delve into the details.
The carrier's efforts to modernize its fleet raise optimism. During the first quarter, the carrier took delivery of three new A321ceo aircrafts and two used A319 planes. The fleet strength at the quarter-end stood at 100. The fleet-size is expected to expand to 112 and 160 by the end of 2017 and 2021, respectively.
The carrier's constant attempts to expand its operations lend a positive sign. The airline will start nonstop services from Baltimore/Washington International Thurgood Marshall Airport and Chicago O'Hare Airport to Cancun International Airport from Nov 9, 2017.
The carrier has begun summer flights to eight destinations and has been offering daily nonstop services in Baltimore/Washington, Cleveland, Detroit, New Orleans, Oakland, Orlando, San Diego and Seattle from May 25 onward.
Spirit will also launch operations to Southwest Florida International Airport in Fort Myers and Tampa International Airport from Hartford's Bradley International Airport and Pittsburgh International Airport. The daily seasonal flights will offer ultra-low fare options to the airline's customers.
The carrier has initiated services from Hartford and Pittsburgh to Fort Lauderdale-Hollywood International Airport on Jun 16. Moreover, the carrier has plans to roll out additional services from Pittsburgh to Orlando, Las Vegas, Houston and Los Angeles in the near future.
The company's endeavors to reward stockholders through share buybacks are also noteworthy. During 2016, the company had returned approximately $100 million to its shareholders. The carrier had bought back approximately 2.3 million shares during the year.
Incidentally, Spirit is not a much leveraged company. This is indicated by the ratio of its long-term debt-to-equity (expressed as a percentage), which is 69.4. This compares favorably to 108.8% and 83.5%, representing the Zacks-categorized Transportation - Airline industry and the S&P 500 index, respectively.
Spirit Airlines, Inc. Price and Consensus
Spirit Airlines, Inc. Price and Consensus | Spirit Airlines, Inc. Quote
Keeping the positives in view, investors should retain Spirit Airlines in their portfolio for now.
Zacks Rank & Key Picks
Spirit Airlines currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the airline space include Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of Air France-KLM, American Airlines and Delta Air Lines have soared 83%, 23% and 20% respectively, in the last three months.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X 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
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Air France-KLM SA (AFLYY): 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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Better-ranked stocks in the airline space include Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. The carrier has begun summer flights to eight destinations and has been offering daily nonstop services in Baltimore/Washington, Cleveland, Detroit, New Orleans, Oakland, Orlando, San Diego and Seattle from May 25 onward.
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Better-ranked stocks in the airline space include Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Spirit Airlines, Inc. Price and Consensus Spirit Airlines, Inc. Price and Consensus | Spirit Airlines, Inc. Quote Keeping the positives in view, investors should retain Spirit Airlines in their portfolio for now.
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Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Better-ranked stocks in the airline space include Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1 (Strong Buy). Spirit will also launch operations to Southwest Florida International Airport in Fort Myers and Tampa International Airport from Hartford's Bradley International Airport and Pittsburgh International Airport.
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Better-ranked stocks in the airline space include Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1 (Strong Buy). Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. During 2016, the company had returned approximately $100 million to its shareholders.
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7462.0
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2017-07-06 00:00:00 UTC
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Start of the Q2 Earnings Season
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AAL
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https://www.nasdaq.com/articles/start-q2-earnings-season-2017-07-06-0
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nan
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nan
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Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Here are the key points:
• The Q2 earnings season takes the spotlight with quarterly reports from the big banks next week, but companies with fiscal quarters ending in May have been reporting results already and these reports form part of our Q2 tally.
• Of such companies with fiscal quarters end in May, we have seen results from 23 S&P 500 members. This is too small a sample to draw any firm conclusions from. But for whatever it is worth, the growth and proportion of positive surprises for these 23 index members are tracking above what we had seen from the same cohort of companies in other recent periods.
• Q2 Estimates have come down since the quarter got underway, but the magnitude of negative revisions nevertheless compares favorably to other recent periods.
• Total Q2 earnings for the S&P 500 index are expected to be up +5.7% from the same period last year on +4.6% higher revenues. The Energy, Aerospace, Finance, Technology, Construction and Industrial Products are expected to be big growth drivers in Q2, with the quarterly earnings growth pace dropping to +3.3% on an ex-Energy basis.
• Beyond Q2, total earnings for the S&P 500 index are currently expected to grow by +6.3% on +4.5% higher revenues in the September quarter and +9.8% on +5.3% higher revenues in Q4.
• For full-year 2017, total earnings for the index are expected to be up +7.4% on +4.2% higher revenues, which would follow +1.1% earnings growth on +2.1% higher revenues in 2016. Index earnings are expected to be up +11.3% in 2018 and +9.2% in 2019.
• The Energy, Technology and Finance sectors are the biggest earnings contributors in 2017 - 2017 earnings growth would be +4.8% on an ex-Energy basis.
Estimates for Q2 came down since the start of the period, as the chart below shows
This trend of negative revisions ahead of the start of each reporting cycles is not new; we have been seeing this play out quarter after quarter for more than 3 years. That said, the revisions trend has been moving in a favorable direction over the last two quarters and that same trend is even more at play in Q2 estimates. What this means is that while estimates for Q2 have come down, they haven't come down as much as would typically be the case by this time in other recent periods.
Estimates for 10 of the 16 Zacks sectors have come down since the start of the period, with Energy, Consumer Discretionary, Utilities, and Basic Materials suffering the most revisions.
Estimates for 6 Zacks sectors have gone up since the start of the period, with estimates for the Industrial Products and Transportation sectors going up the most. Positive estimate revisions for American Airlines ( AAL ), United-Continental ( UAL ), Deere & Company ( DE ) and Caterpillar ( CAT ) reflect revision trends for these two sectors. Technology, Aerospace, Business Services, and Construction are the other sectors where Q2 estimates have gone up since the start of the quarter.
Expectations for Q2 & Beyond
The Q2 earnings season will follow the strong showing in the preceding reporting cycle when growth reached its highest level in more than five years and an above-average proportion of companies beat revenue estimates. Importantly, estimates for Q2 didn't fall as much as had historically been the case, as mentioned earlier. The market will be looking for continuation of these favorable trends this earnings season, which has (officially) gotten underway already but wouldn't take the spotlight till next week, when the major banks come out with results (thankfully, Alcoa's report no longer serves that purpose).
Of the standout sectors, earnings growth is expected to be the strongest for the Energy (expected to be up +247.7%), Aerospace (+48.8%), Construction (+15.7%) and Industrial Products (+11.8%) sectors are expected to have double-digit earnings growth in Q2.
For Finance and Technology, the two biggest sectors in the index, earnings are expected to be up +5.9% and +10.1%, respectively. This would follow double-digit growth for both the sectors in the preceding period. Of these two major sectors, the Finance sector remains at risk of coming up short this earnings season for a number of reasons, including the unfavorable interest rate backdrop, the continued deceleration in loan growth and a likely sub-par capital markets showing.
The chart below shows quarterly earnings growth expectations beyond Q2.
Note: Sheraz Mian manages the Zacks equity research department. He is an acknowledged earnings expert whose commentaries and analyses appear on Zacks.com and in the print and electronic media. His weekly earnings related articles include Earnings Trends and Earnings Preview . He manages the Zacks Top 10 and Focus List portfolios and writes the Weekly Market Analysis article for Zacks Premium subscribers.
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United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
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American Airlines Group, Inc. (AAL): Free Stock Analysis Report
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Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Positive estimate revisions for American Airlines ( AAL ), United-Continental ( UAL ), Deere & Company ( DE ) and Caterpillar ( CAT ) reflect revision trends for these two sectors. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Estimates for 10 of the 16 Zacks sectors have come down since the start of the period, with Energy, Consumer Discretionary, Utilities, and Basic Materials suffering the most revisions.
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Positive estimate revisions for American Airlines ( AAL ), United-Continental ( UAL ), Deere & Company ( DE ) and Caterpillar ( CAT ) reflect revision trends for these two sectors. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: • The Q2 earnings season takes the spotlight with quarterly reports from the big banks next week, but companies with fiscal quarters ending in May have been reporting results already and these reports form part of our Q2 tally.
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Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Positive estimate revisions for American Airlines ( AAL ), United-Continental ( UAL ), Deere & Company ( DE ) and Caterpillar ( CAT ) reflect revision trends for these two sectors. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: • The Q2 earnings season takes the spotlight with quarterly reports from the big banks next week, but companies with fiscal quarters ending in May have been reporting results already and these reports form part of our Q2 tally.
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Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Deere & Company (DE): Free Stock Analysis Report Caterpillar, Inc. (CAT): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Positive estimate revisions for American Airlines ( AAL ), United-Continental ( UAL ), Deere & Company ( DE ) and Caterpillar ( CAT ) reflect revision trends for these two sectors. Estimates for Q2 came down since the start of the period, as the chart below shows This trend of negative revisions ahead of the start of each reporting cycles is not new; we have been seeing this play out quarter after quarter for more than 3 years.
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7463.0
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2017-07-05 00:00:00 UTC
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Strategy To YieldBoost American Airlines Group To 4.8% Using Options
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AAL
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https://www.nasdaq.com/articles/strategy-yieldboost-american-airlines-group-48-using-options-2017-07-05
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nan
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nan
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Shareholders of American Airlines Group Inc (Symbol: AAL) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the January 2019 covered call at the $65 strike and collect the premium based on the $3.15 bid, which annualizes to an additional 4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 4.8% annualized rate in the scenario where the stock is not called away. Any upside above $65 would be lost if the stock rises there and is called away, but AAL shares would have to advance 28.8% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 35% return from this trading level, in addition to any dividends collected before the stock was called.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of American Airlines Group Inc, looking at the dividend history chart for AAL below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 0.8% annualized dividend yield.
Below is a chart showing AAL's trailing twelve month trading history, with the $65 strike highlighted in red:
The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2019 covered call at the $65 strike gives good reward for the risk of having given away the upside beyond $65. ( Do most options expire worthless? This and six other common options myths debunked ). We calculate the trailing twelve month volatility for American Airlines Group Inc (considering the last 252 trading day closing values as well as today's price of $50.50) to be 32%. For other call options contract ideas at the various different available expirations, visit the AAL Stock Options page of 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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Below is a chart showing AAL's trailing twelve month trading history, with the $65 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2019 covered call at the $65 strike gives good reward for the risk of having given away the upside beyond $65. Shareholders of American Airlines Group Inc (Symbol: AAL) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the January 2019 covered call at the $65 strike and collect the premium based on the $3.15 bid, which annualizes to an additional 4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 4.8% annualized rate in the scenario where the stock is not called away. Any upside above $65 would be lost if the stock rises there and is called away, but AAL shares would have to advance 28.8% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 35% return from this trading level, in addition to any dividends collected before the stock was called.
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Shareholders of American Airlines Group Inc (Symbol: AAL) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the January 2019 covered call at the $65 strike and collect the premium based on the $3.15 bid, which annualizes to an additional 4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 4.8% annualized rate in the scenario where the stock is not called away. Below is a chart showing AAL's trailing twelve month trading history, with the $65 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2019 covered call at the $65 strike gives good reward for the risk of having given away the upside beyond $65. Any upside above $65 would be lost if the stock rises there and is called away, but AAL shares would have to advance 28.8% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 35% return from this trading level, in addition to any dividends collected before the stock was called.
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Shareholders of American Airlines Group Inc (Symbol: AAL) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the January 2019 covered call at the $65 strike and collect the premium based on the $3.15 bid, which annualizes to an additional 4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 4.8% annualized rate in the scenario where the stock is not called away. Any upside above $65 would be lost if the stock rises there and is called away, but AAL shares would have to advance 28.8% from current levels for that to happen, meaning that in the scenario where the stock is called, the shareholder has earned a 35% return from this trading level, in addition to any dividends collected before the stock was called. Below is a chart showing AAL's trailing twelve month trading history, with the $65 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2019 covered call at the $65 strike gives good reward for the risk of having given away the upside beyond $65.
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Shareholders of American Airlines Group Inc (Symbol: AAL) looking to boost their income beyond the stock's 0.8% annualized dividend yield can sell the January 2019 covered call at the $65 strike and collect the premium based on the $3.15 bid, which annualizes to an additional 4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost ), for a total of 4.8% annualized rate in the scenario where the stock is not called away. Below is a chart showing AAL's trailing twelve month trading history, with the $65 strike highlighted in red: The chart above, and the stock's historical volatility, can be a helpful guide in combination with fundamental analysis to judge whether selling the January 2019 covered call at the $65 strike gives good reward for the risk of having given away the upside beyond $65. For other call options contract ideas at the various different available expirations, visit the AAL Stock Options page of StockOptionsChannel.com.
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7464.0
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2017-07-05 00:00:00 UTC
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Delta Air Lines Is Back to Its Winning Ways
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-back-its-winning-ways-2017-07-05
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nan
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nan
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After more than two years of persistent unit revenue declines, Delta Air Lines (NYSE: DAL) is finally set to report a return to unit revenue growth for the second quarter of 2017. This will also allow it to post strong year-over-year profit growth in Q2.
With Delta Air Lines returning to form, Delta shares may finally be ready to rally, catching up with the big gains made by American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) in the past year.
Delta Air Lines vs. American Airlines and United Continental stock performance. Data by YCharts .
Delta provides a strong investor update
Three months ago, Delta projected that its Q2 passenger revenue per available seat mile (PRASM) would increase 1% to 3% year over year , despite a 0.5-percentage-point headwind from severe storms that hit Atlanta in early April. This would represent its first quarter of unit revenue growth since 2014.
On Wednesday morning, Delta reported that PRASM rose about 2.5% in June. It also expects to report a PRASM gain of approximately 2.5% for the full second quarter.
Including its projected cost performance, Delta is on track to report a Q2 adjusted operating margin of 18% to 19%, which would be in the upper half of its original guidance range. This likely translates to an adjusted pre-tax margin of 17% to 18%, which would be Delta's best margin performance ever for the second quarter.
Is it sustainable?
Delta Air Lines is on track to report very strong results for the second quarter. However, that wouldn't matter much if the company's Q2 performance were just a blip on the radar.
Fortunately, Delta is well-positioned to keep posting strong results for the rest of 2017 -- and perhaps into 2018. First, the carrier's return to PRASM growth last quarter wasn't driven by the timing of Easter, as was the case for many other airlines. In fact, April was the worst month of the quarter for PRASM growth at Delta. Delta's strong May and June unit revenue results bode well for the upcoming summer peak season.
Second, unit cost growth is set to subside. Management has stated that adjusted non-fuel unit costs will increase less than 2% year over year in the second half of 2017, compared to an increase of more than 4% in the first half of the year. Furthermore, fuel prices are on pace to be roughly even with the year-earlier period in the second half of 2017.
The net result is that Delta Air Lines should be able to deliver continued margin expansion and profit growth in the next two quarters.
American Airlines and United Continental can't keep up
While shares of American Airlines and United Continental have outperformed those of Delta over the past year, it's clear that Delta remains the industry leader in terms of financial performance.
As of a month ago, American Airlines was on track to produce a Q2 adjusted pre-tax margin of 12% to 14%. United hasn't updated its margin forecast since mid-April, but at that point it expected to post an even lower adjusted pre-tax margin of 10% to 12% for the quarter. (A decline in fuel prices during the quarter might help United reach the upper end of its guidance range, but on the flip side, unit revenue on transpacific routes recently took a turn for the worse .)
In any case, it's clear that Delta Air Lines remains far ahead of its legacy-carrier peers in terms of profitability. It also has a better balance sheet and tends to produce stronger free cash flow than its rivals.
Investors have flocked to American Airlines stock and United Continental stock in the past year based on unit revenue growth at the former and turnaround hopes for the latter. But with neither challenger showing any progress in catching up to Delta, investors should consider sticking with the proven winner in the airline industry: Delta Air Lines.
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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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With Delta Air Lines returning to form, Delta shares may finally be ready to rally, catching up with the big gains made by American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) in the past year. Including its projected cost performance, Delta is on track to report a Q2 adjusted operating margin of 18% to 19%, which would be in the upper half of its original guidance range. The net result is that Delta Air Lines should be able to deliver continued margin expansion and profit growth in the next two quarters.
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With Delta Air Lines returning to form, Delta shares may finally be ready to rally, catching up with the big gains made by American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) in the past year. After more than two years of persistent unit revenue declines, Delta Air Lines (NYSE: DAL) is finally set to report a return to unit revenue growth for the second quarter of 2017. Delta Air Lines vs. American Airlines and United Continental stock performance.
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With Delta Air Lines returning to form, Delta shares may finally be ready to rally, catching up with the big gains made by American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) in the past year. After more than two years of persistent unit revenue declines, Delta Air Lines (NYSE: DAL) is finally set to report a return to unit revenue growth for the second quarter of 2017. American Airlines and United Continental can't keep up While shares of American Airlines and United Continental have outperformed those of Delta over the past year, it's clear that Delta remains the industry leader in terms of financial performance.
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With Delta Air Lines returning to form, Delta shares may finally be ready to rally, catching up with the big gains made by American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) in the past year. After more than two years of persistent unit revenue declines, Delta Air Lines (NYSE: DAL) is finally set to report a return to unit revenue growth for the second quarter of 2017. Delta Air Lines vs. American Airlines and United Continental stock performance.
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7465.0
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2017-07-04 00:00:00 UTC
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United Airlines Extends Boeing 777-300ER to Extra Routes
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AAL
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https://www.nasdaq.com/articles/united-airlines-extends-boeing-777-300er-to-extra-routes-2017-07-04
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nan
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nan
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United Continental Holdings ' UAL wholly owned subsidiary, United Airlines, has introduced Boeing 777-300ER service (the airline's latest aircraft type featuring the all-new United Polaris business class seats) to additional routes.
The westbound service between San Francisco (SFO) and Beijing (PEK) is scheduled to begin from Sep 6, 2017, while the eastbound journey is expected to take off on Sep 8, 2017. Services between San Francisco (SFO) - Frankfurt (FRA) and New York/Newark (EWR) - Tokyo Narita (NRT) will start from Oct 5, 2017, eastbound (westbound services will start a day later) and Oct 28, 2017 westbound (Oct 29, 2017 eastbound), respectively.
The new aircraft is already in service along the San Francisco - Hong Kong (HKG) and New York/Newark - Tel Aviv (TLV) routes and will commence operations from San Francisco to Taipei (TPE) on Aug 1.
The Boeing 777-300ER aircraft offers several advanced features and amenities like the all-new United Polaris business class seat, a lavish cabin experience and an enhanced United Economy journey. Every United Polaris seat has direct aisle access, a large 180-degree flat-bed with infinite seat recline options and other extravagant features. Seats in United Economy offer United Private Screening options, enabling customers to enjoy movies and television programs on their electronic gadgets.
United Continental Holdings, Inc. Price
United Continental Holdings, Inc. Price | United Continental Holdings, Inc. Quote
Zacks Rank & Key Picks
United Continental currently flaunts a Zacks Rank #1 (Strong Buy). Some other stocks worth considering in the same space are Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of Air France-KLM, American Airlines and Delta Air Lines rallied over 97%, 23% and 20%, respectively, in the last three months.
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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
Air France-KLM SA (AFLYY): 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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Some other stocks worth considering in the same space are Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1. 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 Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. The Boeing 777-300ER aircraft offers several advanced features and amenities like the all-new United Polaris business class seat, a lavish cabin experience and an enhanced United Economy journey.
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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 Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Some other stocks worth considering in the same space are Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1. United Continental Holdings ' UAL wholly owned subsidiary, United Airlines, has introduced Boeing 777-300ER service (the airline's latest aircraft type featuring the all-new United Polaris business class seats) to additional routes.
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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 Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Some other stocks worth considering in the same space are Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1. United Continental Holdings ' UAL wholly owned subsidiary, United Airlines, has introduced Boeing 777-300ER service (the airline's latest aircraft type featuring the all-new United Polaris business class seats) to additional routes.
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Some other stocks worth considering in the same space are Air France-KLM SA AFLYY , American Airlines Group, Inc. AAL and Delta Air Lines, Inc. DAL , each sporting a Zacks Rank #1. 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 Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. United Continental Holdings ' UAL wholly owned subsidiary, United Airlines, has introduced Boeing 777-300ER service (the airline's latest aircraft type featuring the all-new United Polaris business class seats) to additional routes.
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7466.0
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2017-07-03 00:00:00 UTC
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Is An Unseen Shift On Rates Dead Ahead? Global Week Ahead
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AAL
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https://www.nasdaq.com/articles/unseen-shift-rates-dead-ahead-global-week-ahead-2017-07-03
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nan
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nan
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In this Global Week Ahead, the leaders of our monetary systems will parse fresh macro data. It matters to their economies. It also matters to risk markets and traders.
In recent years, economists applied a fancy term to a new phenomenon-- ' divergence ' in monetary policies.
What is that?
Divergence relates to the difference in monetary policies adopted by the world's most systemically important central banks -- the U.S. Federal Reserve System (the Fed), the European Central Bank (ECB) and the Bank of Japan (BoJ).
These three central banks used to synchronize their policy decisions. However in 2014, their monetary policies started to decouple. Investors witnessed the starkest contrast between them in Dec. 2015, when the ECB eased monetary policy, while the Fed raised rates.
What was the main cause of early divergence in monetary policies? It was the fact that the U.S. economy recovered more quickly than Europe's did after the Great Recession.
Now, there is a new ' late cycle divergence '. The U.S. Fed is still raising policy rates. But the latest Fed rate hikes are being done in the face of a slower-growing U.S. economy -- with falling consumer inflation.
Meanwhile, the ECB is not raising rates -- and Europe is benefitting from a strengthening growth expansion.
This new 'late cycle divergence' bears some deeper thought. It may portend an unseen shift in monetary policies ahead.
Later this week, the emerging U.S. growth and inflation struggle will be on full display…
On Monday, U.S. stock markets close early.
On Tuesday, they are shuttered completely for the Independence Day holiday. These days should see low trading volumes and increased volatility.
On Wednesday, pay attention to the latest minutes to the June 14th FOMC meeting, when the Fed raised policy rates 25 basis points. Traders, tune in to what the discussion was over falling core consumer price inflation. Did the members see it uniformly as a transitory phenomenon?
On Thursday, Fed Vice Chair Stanley Fischer will speak on government policy and productivity.
Then, on Friday, the U.S. non-farm payroll print is out. This is the key data. It will give traders the latest mid-year update on the strength of the underlying U.S. economy. Consensus has forecasted +140K.
That is a sober low U.S. late cycle growth, a hint of what is to come this year.
In Europe, in contrast, the economic story is picking up.
This week, we get the latest PMIs on manufacturing and services.
On Monday, the latest manufacturing PMI data showed activity hit the highest since 2011. The headline June composite PMI lifted from 57.0 to 57.4.
IHS Markit's survey of Eurozone factories showed Germany (59.6) led, with the Netherlands (58.6), and France (54.8) looking very strong. A reading above 50 points implies expansion.
Even Greece - the laggard - hit expansion at 50.5.
Markit's covering economist Chris Williamson says the Eurozone manufacturing PMI has now been above the crucial 50-expansion mark for four years. The latest quarterly performance is also the best in over six years.
He highlighted strong export and domestic demand -- as key growth drivers.
" There's no sign of the impressive performance ending any time soon ", said Mr. Williamson.
" Optimism about the year ahead has risen to the highest for at least five years, backlogs of orders are building up at the fastest rate for over seven years, and factories are reporting near-record hiring, as they struggle to deal with the upturn in demand ."
Three Top Zacks #1 Rank (STRONG BUY) Stocks-
(1) Cummins ( CMI ): This is a $26 billion market cap internal combustion engine stock, based in the USA. The stock earned a long-term Zacks VGM score of B.
Does a stock like this suffer when U.S. growth slows? That is what I would watch for.
(2) Ryanair Holdings PLC ( RYAAY ): This is a $26 billion market cap discount airline, based in Ireland. The stock carries a long-term Zacks VGM score of C.
Do European stocks like this benefit from a stronger European economic engine? You have to think much of the latest macro PMI news is already priced in.
(3) American Air ( AAL ): This is the big $24 billion market cap stock. This U.S. airline you should know. The good news for stock buyers is that, along with the Zacks #1 Ranking, there is a long-term Zacks VGM score of A.
Maybe it is time to be contrarian? Buy a U.S. airline, and sell a European one?
Key Global/Macro-
On Monday , U.S. vehicle sales have come in at 16.58 million annually. Where does the latest data put it?
The China Caixin (smaller company) manufacturing PMI came in at 50.4, after a prior 49.6 reading. There's no new news there.
In comparison, the Irish manufacturing PMI was 56.0.
What of the India manufacturing PMI? It was 50.9, after a prior read of 51.6.
Germany's manufacturing PMI was 59.6, France 54.8, and Italy 55.2.
The US manufacturing PMI, last time, was 52.1
However, the latest South African manufacturing PMI bears notice. It was 45.6. That is a recession reading.
The Feds' Bullard speaks in London.
On Tuesday , Sweden's central bank, the Riksbank, will address its -0.5% negative repo rate.
Brazil's industrial production may turn positive, to +2.8% y/y from -4.5% y/y.
On Wednesday , the latest services PMI get released. France's prior reading was 55.3, Germany was 55.7, and the Eurozone services as a whole was 54.7.
The Eurozone composite (of both manufacturing and services) was 54.7. Where does it go now?
The latest U.S. FOMC minutes get released.
On Thursday , the U.S. private employer ADP employment survey comes out. The prior reading was 253K.
U.S. initial claims recorded a low 244K. This week should be low again.
The ISM non-manufacturing index comes out. The forecast is for 56.5.
Fed Vice Chair Stanley Fischer will speak on gov't policy and productivity.
On Friday , the U.S. unemployment rate of 4.3% and Canada's unemployment rate at 6.6%, get updated.
U.S. non-farm payroll for June is forecast for +140K.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Cummins Inc. (CMI): 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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(3) American Air ( AAL ): This is the big $24 billion market cap stock. Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. Investors witnessed the starkest contrast between them in Dec. 2015, when the ECB eased monetary policy, while the Fed raised rates.
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Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. (3) American Air ( AAL ): This is the big $24 billion market cap stock. On Thursday, Fed Vice Chair Stanley Fischer will speak on government policy and productivity.
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Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. (3) American Air ( AAL ): This is the big $24 billion market cap stock. Divergence relates to the difference in monetary policies adopted by the world's most systemically important central banks -- the U.S. Federal Reserve System (the Fed), the European Central Bank (ECB) and the Bank of Japan (BoJ).
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(3) American Air ( AAL ): This is the big $24 billion market cap stock. Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Cummins Inc. (CMI): Free Stock Analysis Report To read this article on Zacks.com click here. The U.S. Fed is still raising policy rates.
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7467.0
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2017-07-03 00:00:00 UTC
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Why American Airlines (AAL) Stock Might be a Great Pick
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-aal-stock-might-be-a-great-pick-2017-07-03
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One stock that might be an intriguing choice for investors right now is American Airlines Group Inc.AAL . This is because this security in the Transportation - Airline space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.
This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Transportation - Airline space as it currently has a Zacks Industry Rank of 17 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other segments out there.
Meanwhile, American Airlines is actually looking pretty good on its own too. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm's prospects in both the short and long term.
American Airlines Group, Inc. Price and Consensus
American Airlines Group, Inc. Price and Consensus | American Airlines Group, Inc. Quote
In fact, over the past month, current quarter estimates have risen from $1.66 per share to $1.71 per share, while current year estimates have risen from $4.75 per share to $4.91 per share. This has helped AAL to earn a Zacks Rank #1 (Strong Buy), further underscoring the company's solid position. You can see the complete list of today's Zacks #1 Rank stocks here .
So, if you are looking for a decent pick in a strong industry, consider American Airlines. Not only is its industry currently in the top third, but it is seeing solid estimate revisions as of late, suggesting it could be a very interesting choice for investors seeking a name in this great industry segment.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure.
See these buy recommendations now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
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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One stock that might be an intriguing choice for investors right now is American Airlines Group Inc.AAL . This has helped AAL to earn a Zacks Rank #1 (Strong Buy), further underscoring the company's solid position. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. One stock that might be an intriguing choice for investors right now is American Airlines Group Inc.AAL . This has helped AAL to earn a Zacks Rank #1 (Strong Buy), further underscoring the company's solid position.
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One stock that might be an intriguing choice for investors right now is American Airlines Group Inc.AAL . This has helped AAL to earn a Zacks Rank #1 (Strong Buy), further underscoring the company's solid position. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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One stock that might be an intriguing choice for investors right now is American Airlines Group Inc.AAL . This has helped AAL to earn a Zacks Rank #1 (Strong Buy), further underscoring the company's solid position. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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7468.0
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2017-06-30 00:00:00 UTC
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Here's Why You Should Add Ryanair (RYAAY) to Your Portfolio
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AAL
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https://www.nasdaq.com/articles/heres-why-you-should-add-ryanair-ryaay-to-your-portfolio-2017-06-30
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Irish low-cost carrier Ryanair HoldingsRYAAY has been one of the star performers in the airline space this year. Shares of the company have gained 28.2% on a year-to-date basis, outperforming the Zacks categorized Transportation-Airline industry's addition of 13.9%.
Catalysts Behind the Surge
We are impressed by the carrier's decision to expedite the growth of its fleet by including more Boeing jets. The carrier's May traffic report was also highly encouraging. Traffic increased 11%, while load factor (% of seats filled by passengers) improved to 95% from 94% a year ago. Moving ahead, the company is expected to report strong traffic numbers in the near future as well.
Moreover, a 6% increase in net profit for fiscal 2017 (ended Mar 31, 2017) despite a challenging air fare scenario is impressive. The top line expanded 2% to €6,648 million on the back of a 13% rise in traffic to 120 million, while lower costs aided the bottom line. Load factor also increased 100 basis points to 94% in fiscal 2017.
The customer friendly "Always Getting Better" (AGB) program aided results. Net profit for fiscal 2018 is projected to be in the band of €1.4-€1.45 billion, up approximately 8%. The carrier expects ancillary sales to account for 30% of the top line by Mar 2020.
A Broker Favorite
Earnings estimates for Ryanair have exhibited a healthy uptrend. Over the last 30 days, the Zacks Consensus Estimate of earnings for the current quarter has moved up 24 cents to $1.48 per share. In fact, earnings per share for the current quarter are projected to grow 34.55% on a year-over-year basis.
The Zacks Consensus Estimate for fiscal 2018 has also jumped 27 cents in the last month to $7.34 per share. In fact, earnings per share for the current year are projected to grow 27.8% on a year-over-year basis, which compares favorably to the industry reading.
Given the wealth of information at the disposal of brokers, it is in the best interests of investors to be guided by broker advice and the direction of their estimate revisions. This is because the direction of estimate revisions serves as an important pointer when it comes to the price of a stock.
Other Positive Metrics
Ryanair'strailing 12-month return on equity (ROE) supports its growth potential. Not only has the company's ROE of 33.2% remained more or less steady over the last year, it compares favorably with ROE of 29.8% for the Zacks categorized Transportation-Airline industry. This reflects the fact that the company is efficient in using shareholders' funds.
Currently, the ratio of Ryanair's long-term debt-to-equity (expressed as a percentage) is 88.8. Even though on the higher side, the reading compares favorably with the industry's 108.8.
Taking into account the above-mentioned tailwinds and the favorable readings, we believe that the current price represents an attractive entry point for investors. The carrier's Zacks Rank #1 (Strong Buy) also supports our view, indicating that the stock is likely to outperform the broader market over the next one to three months. You can see the complete list of today's Zacks #1 Rank stocks here .
Furthermore, the company's Momentum Style Score of 'B' highlights its short-term attractiveness. The Zacks Momentum Style Score indicates when the timing is right to grab a stock and make the most of its momentum. Back-tested results show that stocks with Style Scores of 'A' or 'B,' when combined with a Zacks Rank #1 or 2 (Buy), handily outperform others.
Other Stocks to Consider
Investors interested in the airline space may also consider Air France-KLM SA AFLYY , Deutsche Lufthansa DLAKY and American Airlines AAL . While Air France and Lufthansa sport a Zacks Rank #1, American Airlines holds a Zacks Rank #2.
Shares of Air France, Deutsche Lufthansa and American Airlines have rallied over 66%, 28% and 17%, respectively, in the last three months.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report
Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Air France-KLM SA (AFLYY): 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 airline space may also consider Air France-KLM SA AFLYY , Deutsche Lufthansa DLAKY and American Airlines AAL . Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Taking into account the above-mentioned tailwinds and the favorable readings, we believe that the current price represents an attractive entry point for investors.
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Other Stocks to Consider Investors interested in the airline space may also consider Air France-KLM SA AFLYY , Deutsche Lufthansa DLAKY and American Airlines AAL . Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, earnings per share for the current year are projected to grow 27.8% on a year-over-year basis, which compares favorably to the industry reading.
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Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Other Stocks to Consider Investors interested in the airline space may also consider Air France-KLM SA AFLYY , Deutsche Lufthansa DLAKY and American Airlines AAL . The carrier's Zacks Rank #1 (Strong Buy) also supports our view, indicating that the stock is likely to outperform the broader market over the next one to three months.
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Other Stocks to Consider Investors interested in the airline space may also consider Air France-KLM SA AFLYY , Deutsche Lufthansa DLAKY and American Airlines AAL . Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Load factor also increased 100 basis points to 94% in fiscal 2017.
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7469.0
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2017-06-30 00:00:00 UTC
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Noteworthy Friday Option Activity: FB, BHI, AAL
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AAL
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https://www.nasdaq.com/articles/noteworthy-friday-option-activity-fb-bhi-aal-2017-06-30
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Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Facebook Inc (Symbol: FB), where a total of 116,389 contracts have traded so far, representing approximately 11.6 million underlying shares. That amounts to about 60.9% of FB's average daily trading volume over the past month of 19.1 million shares. Particularly high volume was seen for the $152.50 strike call option expiring June 30, 2017 , with 10,971 contracts trading so far today, representing approximately 1.1 million underlying shares of FB. Below is a chart showing FB's trailing twelve month trading history, with the $152.50 strike highlighted in orange:
Baker Hughes Inc (Symbol: BHI) saw options trading volume of 16,439 contracts, representing approximately 1.6 million underlying shares or approximately 50.5% of BHI's average daily trading volume over the past month, of 3.3 million shares. Particularly high volume was seen for the $55 strike put option expiring July 21, 2017 , with 6,461 contracts trading so far today, representing approximately 646,100 underlying shares of BHI. Below is a chart showing BHI's trailing twelve month trading history, with the $55 strike highlighted in orange:
And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 26,190 contracts, representing approximately 2.6 million underlying shares or approximately 42.9% of AAL's average daily trading volume over the past month, of 6.1 million shares. Especially high volume was seen for the $35 strike put option expiring January 19, 2018 , with 6,000 contracts trading so far today, representing approximately 600,000 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $35 strike highlighted in orange:
For the various different available expirations for FB options , BHI 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 $35 strike put option expiring January 19, 2018 , with 6,000 contracts trading so far today, representing approximately 600,000 underlying shares of AAL. Below is a chart showing BHI's trailing twelve month trading history, with the $55 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 26,190 contracts, representing approximately 2.6 million underlying shares or approximately 42.9% of AAL's average daily trading volume over the past month, of 6.1 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $35 strike highlighted in orange: For the various different available expirations for FB options , BHI options , or AAL options , visit StockOptionsChannel.com.
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Below is a chart showing BHI's trailing twelve month trading history, with the $55 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 26,190 contracts, representing approximately 2.6 million underlying shares or approximately 42.9% of AAL's average daily trading volume over the past month, of 6.1 million shares. Especially high volume was seen for the $35 strike put option expiring January 19, 2018 , with 6,000 contracts trading so far today, representing approximately 600,000 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $35 strike highlighted in orange: For the various different available expirations for FB options , BHI options , or AAL options , visit StockOptionsChannel.com.
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Below is a chart showing BHI's trailing twelve month trading history, with the $55 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 26,190 contracts, representing approximately 2.6 million underlying shares or approximately 42.9% of AAL's average daily trading volume over the past month, of 6.1 million shares. Especially high volume was seen for the $35 strike put option expiring January 19, 2018 , with 6,000 contracts trading so far today, representing approximately 600,000 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $35 strike highlighted in orange: For the various different available expirations for FB options , BHI options , or AAL options , visit StockOptionsChannel.com.
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Below is a chart showing BHI's trailing twelve month trading history, with the $55 strike highlighted in orange: And American Airlines Group Inc (Symbol: AAL) saw options trading volume of 26,190 contracts, representing approximately 2.6 million underlying shares or approximately 42.9% of AAL's average daily trading volume over the past month, of 6.1 million shares. Especially high volume was seen for the $35 strike put option expiring January 19, 2018 , with 6,000 contracts trading so far today, representing approximately 600,000 underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $35 strike highlighted in orange: For the various different available expirations for FB options , BHI options , or AAL options , visit StockOptionsChannel.com.
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7470.0
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2017-06-29 00:00:00 UTC
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The Zacks Analyst Blog Highlights: American Airlines Group, Delta Air Lines, Southwest Airlines and United Continental Holdings
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-american-airlines-group-delta-air-lines-southwest
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For Immediate Release
Chicago, IL - June 29, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include American Airlines Group (NASDAQ: AAL- Free Report ), Delta Air Lines (NYSE: DAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and United Continental Holdings (NYSE: UAL- Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Wednesday's Analyst Blog:
Airline Stock Roundup: Travel Ban Policy Partially OK'd; American Airlines & Delta in Focus
There were quite a few developments in the airline space last week. Gulf carrier Qatar Airways' intention to buy a 10% stake in American Airlines Group (NASDAQ: AAL- Free Report ) and the latter's lukewarm response drew a lot of attention. Another eye-catching update pertained to the U.S. Supreme Court's partially favorable ruling on President Donald Trump's travel ban policy.
Delta Air Lines (NYSE: DAL- Free Report ) also grabbed headlines by virtue of its joint venture with Korean Air Lines as the former aims to expand its Asian footprint. The past week also saw an expansion-related update from Southwest Airlines (NYSE: LUV- Free Report ).
On the price front, the NYSE ARCA Airline Index was almost flat at $114.54 over the past five trading sessions.
Recap of the Past Week's Most Important Stories
1. In a regulatory filing released by American Airlines, Qatar Airways' proposed purchase of 10% of the airline's shares equals a roughly $808 million investment. The offer did not get a favorable response from the Fort Worth, TX-based carrier with its CEO Doug Parker finding the Gulf carrier's overture " puzzling " (read more: American Airlines Climbs Higher as Qatar Airways Looks to Buy 10% Stake ).
2. In what can be seen as a victory for the Trump administration, the U.S. Supreme Court has reinstated major parts of the President's travel ban. The court however said that the travel ban will be up for review in October. The ruling hurt most airline stocks due to fears of declining travel demand (read more: Travel Ban Partially OK'd: What's in Store for Airlines? ).
3. Delta Air Lines and Korean Air Lines Co., Ltd. have agreed to create a leading trans-Pacific joint venture connecting the U.S. and Asia. The joint venture will offer an expanded network, industry-leading products and services plus an enhanced customer experience (read more: Delta Air Lines & Korean Air Ink Trans-Pacific Joint Venture ).
Delta carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
4. In a bid to expand its footprint, Dallas-based low-cost carrier Southwest Airlines announced that it will launch nonstop flights connecting Tampa, FL and San Diego. The carrier intends to start operations on the route Jan 8, 2018 onward (read more: Southwest Airlines to Expand Via San Diego-Tampa Route ).
5. In a passenger-friendly move, United Airlines, the wholly owned subsidiary of United Continental Holdings (NYSE: UAL- Free Report ), is looking to improve the experience of passengers at the Houston George Bush Intercontinental Airport. The move, which will become operational from Oct 29, 2017, is aimed at improving connectivity as well as using roughly 90 United Airlines gates at the airport more efficiently.
What's Next in the Airline Space?
We expect June traffic reports from the likes of Delta in the coming days.
Today's Stocks from Zacks' Hottest Strategies
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And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X 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>>
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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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
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Southwest Airlines Company (LUV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Gulf carrier Qatar Airways' intention to buy a 10% stake in American Airlines Group (NASDAQ: AAL- Free Report ) and the latter's lukewarm response drew a lot of attention. Stocks recently featured in the blog include American Airlines Group (NASDAQ: AAL- Free Report ), Delta Air Lines (NYSE: DAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and United Continental Holdings (NYSE: UAL- Free Report ). Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on LUV - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Stocks recently featured in the blog include American Airlines Group (NASDAQ: AAL- Free Report ), Delta Air Lines (NYSE: DAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and United Continental Holdings (NYSE: UAL- Free Report ). Gulf carrier Qatar Airways' intention to buy a 10% stake in American Airlines Group (NASDAQ: AAL- Free Report ) and the latter's lukewarm response drew a lot of attention. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include American Airlines Group (NASDAQ: AAL- Free Report ), Delta Air Lines (NYSE: DAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and United Continental Holdings (NYSE: UAL- Free Report ). Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on LUV - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include American Airlines Group (NASDAQ: AAL- Free Report ), Delta Air Lines (NYSE: DAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and United Continental Holdings (NYSE: UAL- Free Report ). Gulf carrier Qatar Airways' intention to buy a 10% stake in American Airlines Group (NASDAQ: AAL- Free Report ) and the latter's lukewarm response drew a lot of attention. Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on LUV - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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7471.0
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2017-06-29 00:00:00 UTC
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American Airlines-Analogic Unite to Uplift Aviation Security
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AAL
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https://www.nasdaq.com/articles/american-airlines-analogic-unite-to-uplift-aviation-security-2017-06-29
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nan
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American Airlines Group Inc.AAL and Analogic Corporation have announced a partnership to facilitate an expanded use of Computed tomography (CT) technology at airports globally.
The state-of-the-art CT checkpoint technology is likely to render aviation security officials with an enhanced level of detection. The sophisticated technology will provide officials with scanning equipment that better identifies potential threat items, including those hidden within personal electronic devices.
Per the agreement, American Airlines will purchase multiple units of the Analogic ConneCT aviation checkpoint security screening system. ConneCT is formed to improve aviation security and increase passenger throughput, utilizing an upgradeable CT platform.
Per Jim Ryan, Senior Vice President, Security Systems at Analogic, the carrier chose Analogic as its supplier of Checkpoint CT on the basis of several factors such as image quality, airport-friendly design and ease of operation. The ConneCT technology also aids airports and regulators in responding to the changing security and operational requirements.
The ConneCT screening system is currently being tested by the Transportation Security Administration and when completed will be installed on certification. American Airlines' move coincides with the U.S. Department of Homeland Security (DHS) call to enhance security at airports to combat terrorism.
American Airlines Group, Inc. Price
American Airlines Group, Inc. Price | American Airlines Group, Inc. Quote
Zacks Rank & Key Picks
American Airlines currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the airline space are Air France-KLM SA AFLYY , Deutsche Lufthansa AG DLAKY and International Consolidated Airlines Group SA ICAGY . All sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Shares of Air France-KLM, Deutsche Lufthansa and International Consolidated Airlines have rallied over 86%, 46% and 23% respectively, in the last three months.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X 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
Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report
Air France-KLM SA (AFLYY): 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 and Analogic Corporation have announced a partnership to facilitate an expanded use of Computed tomography (CT) technology at airports globally. Click to get this free report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. The sophisticated technology will provide officials with scanning equipment that better identifies potential threat items, including those hidden within personal electronic devices.
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Click to get this free report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL and Analogic Corporation have announced a partnership to facilitate an expanded use of Computed tomography (CT) technology at airports globally. American Airlines Group, Inc. Price American Airlines Group, Inc. Price | American Airlines Group, Inc. Quote Zacks Rank & Key Picks American Airlines currently carries a Zacks Rank #2 (Buy).
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Click to get this free report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL and Analogic Corporation have announced a partnership to facilitate an expanded use of Computed tomography (CT) technology at airports globally. American Airlines Group, Inc. Price American Airlines Group, Inc. Price | American Airlines Group, Inc. Quote Zacks Rank & Key Picks American Airlines currently carries a Zacks Rank #2 (Buy).
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American Airlines Group Inc.AAL and Analogic Corporation have announced a partnership to facilitate an expanded use of Computed tomography (CT) technology at airports globally. Click to get this free report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Per the agreement, American Airlines will purchase multiple units of the Analogic ConneCT aviation checkpoint security screening system.
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7472.0
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2017-06-29 00:00:00 UTC
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Southwest Airlines to Terminate Service in 2 Cuban Cities
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-to-terminate-service-in-2-cuban-cities-2017-06-29
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The Dallas- based low cost carrier Southwest AirlinesLUV became the latest US carrier to reduce its services to Cuba. The carrier has decided not to fly to Varadero and Santa Clara from Sep 5 as the routes had ceased to be viable.
The tweaked Cuba policy announced by President Trump earlier this month might also have played a part in Southwest's decision. The new policy, which prohibits individual travel to the island nation, might hurt the already weak travel demand to Cuba further. Thus, the revenues of American carriers operating in Cuba are likely to shrink.
Even though Southwest has decided to end its operations to two Cuban cities, it will continue its Havana service. The company operates nonstop flights to the Cuban capital from Ft. Lauderdale (twice daily) and Tampa (once daily) now.
It is to be noted that not only will those flights remain in operation but the carrier has also sought permission from the U.S. Department of Transportation to start a third roundtrip (on a daily basis) connecting Ft.Lauderdale and Havana. Demand on the Havana routes is much stronger than in the smaller Cuban cities. Currently, Southwest Airlines carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Southwest Airlines Company Price
Southwest Airlines Company Price | Southwest Airlines Company Quote
We remind investors that the resumption of scheduled commercial flights to Cuba from the U.S. last year after a gap of more than five decades was greeted warmly by American carriers. In Jun 2016, the U.S. Department of Transportation authorized six U.S.-based carriers to operate scheduled flights to nine second-tier Cuban cities. Approval to fly to Havana came two months later.
However, a few months after commencement of the service the above enthusiasm started declining. This was because travel demand to Cuba fell short of expectations. Consequently, the likes of American Airlines Group AAL and JetBlue Airways Corporation JBLU trimmed their services to the nation. Also, lower-than-expected demand caused the likes of Frontier Airlines and Spirit Airlines SAVE to terminate their flights to Cuba.
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Southwest Airlines Company (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): 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.
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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Consequently, the likes of American Airlines Group AAL and JetBlue Airways Corporation JBLU trimmed their services to the nation. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): 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. The tweaked Cuba policy announced by President Trump earlier this month might also have played a part in Southwest's decision.
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Consequently, the likes of American Airlines Group AAL and JetBlue Airways Corporation JBLU trimmed their services to the nation. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): 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. Southwest Airlines Company Price Southwest Airlines Company Price | Southwest Airlines Company Quote We remind investors that the resumption of scheduled commercial flights to Cuba from the U.S. last year after a gap of more than five decades was greeted warmly by American carriers.
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Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): 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. Consequently, the likes of American Airlines Group AAL and JetBlue Airways Corporation JBLU trimmed their services to the nation. The Dallas- based low cost carrier Southwest AirlinesLUV became the latest US carrier to reduce its services to Cuba.
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Consequently, the likes of American Airlines Group AAL and JetBlue Airways Corporation JBLU trimmed their services to the nation. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): 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. Even though Southwest has decided to end its operations to two Cuban cities, it will continue its Havana service.
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7473.0
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2017-06-28 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Delta Air Lines, United Continental Holdings, American Airlines Group, Hawaiian Holdings and Spirit Airlines
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-delta-air-lines-united-continental-holdings-american-2
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For Immediate Release
Chicago, IL - June 28, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ), American Airlines Group (NASDAQ: AAL- Free Report ), Hawaiian Holdings (NASDAQ: HA- Free Report ) and Spirit Airlines (NASDAQ: SAVE- Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Tuesday's Analyst Blog:
Travel Ban Partially OK'd: What's in Store for Airlines?
In what can be seen as a victory for the Trump administration, the U.S. Supreme Court has reinstated major parts of the President's travel ban. While allowing major parts of the embargo to take effect, the court said that it will be up for review in October.
The Ruling
The country's top court ruled in favor (partially) of the U.S. government's request to do away with preliminary injunctions against ban. Consequently, visitors from six predominantly Muslim nations - Iran, Libya, Somalia, Sudan, Syria and Yemen - are banned from entering the U.S. for 90 days.
The court also upheld the provision of the ban to suspend the admission of refugees for four months. Additionally, the ruling restricts the number of refugees entering the country to 50,000 this fiscal year. In fact, While making the above rulings, the court added that visitors from the above countries to the U.S. won't be affected if they are able to prove a bona fide relationship with a person or entity in the country.
We remind investors that initially President Trump issued a ban on travelers from seven predominantly Muslim nations - Iraq, Iran, Syria, Yemen, Sudan, Somalia and Libya - from entering the U.S. in January. However, courts refused to reinstate the ban. Notably, following the opposition, a narrower version was issued by the President in March.
What's Ahead for Carriers?
The partial reinstatement of the ban, which is aimed at preventing terrorism in the U.S., negatively impacted airline stocks like Delta Air Lines (NYSE: DAL- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ) and American Airlines Group (NASDAQ: AAL- Free Report ) due to fears of declining travel demand. All these three carriers carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
In fact, many carriers including big players like American Airlines Group have exposure to Africa and the Middle East. Consequently, their fears of shrinking travel demand cannot be ignored. To this end, their top line may shrink significantly in the near term.
We note that the initial announcement of the ban in January not only hurt stocks in the space severely but also reportedly resulted in a decline in international bookings to the country.
Other Headwinds
Apart from the ban issue, the ambiguity regarding the laptop ban and President Trump's revised Cuba policy that bans individual travel to the island nation, are some other administrative challenges confronting airlines.
Furthermore, the surge in labor costs has been hurting the bottom line of carriers for quite some time due to the signing of labor deals. In the first quarter of 2017, growth on the bottom-line front was hardly visible for airlines due to high costs. Increased costs are expected to hurt the bottom line of carriers in the second quarter as well.
For example, Hawaiian Holdings (NASDAQ: HA- Free Report ) expects cost per ASM (CASM), excluding fuel and special items, to increase in the band of 4.5% to 7.5%, mainly owing to the sixty-three month pay-related deal cleared by its pilots in Mar 2017. Moreover, fuel cost per gallon (economic) is projected to be in $1.60 to $1.70 range, which is higher than $1.55 recorded in the second quarter of 2016.
Similarly, Allegiant Travel Company expects CASM excluding fuel, to increase in the band of 13-15% in the second quarter of 2017, mainly on the back of implementation of the new pilot agreement. Also, Alaska Air Group recently increased its second quarter forecast CASM (excluding fuel and other special items) following the pay-related agreement with the pilots of its subsidiary Horizon Air.
Apart from high costs, carriers such as United Continental Holdings and Spirit Airlines (NASDAQ: SAVE- Free Report ) have been laid low by customer-related issues.
Conclusion
With stocks in the space already grappling with the above-mentioned headwinds, the U.S. Supreme Court's move of partially reinstating the ban, presents another challenge for sector participants. However, the exact extent of the impact on the space can be gauged with the passage of time. Naturally, we expect investors interested in the space to eagerly await updates on this burning issue.
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Get the full Report on DAL - FREE
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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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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ), American Airlines Group (NASDAQ: AAL- Free Report ), Hawaiian Holdings (NASDAQ: HA- Free Report ) and Spirit Airlines (NASDAQ: SAVE- Free Report ). The partial reinstatement of the ban, which is aimed at preventing terrorism in the U.S., negatively impacted airline stocks like Delta Air Lines (NYSE: DAL- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ) and American Airlines Group (NASDAQ: AAL- Free Report ) due to fears of declining travel demand. Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on AAL - FREE Get the full Report on HA - FREE Get the full Report on ALGT - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ), American Airlines Group (NASDAQ: AAL- Free Report ), Hawaiian Holdings (NASDAQ: HA- Free Report ) and Spirit Airlines (NASDAQ: SAVE- Free Report ). The partial reinstatement of the ban, which is aimed at preventing terrorism in the U.S., negatively impacted airline stocks like Delta Air Lines (NYSE: DAL- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ) and American Airlines Group (NASDAQ: AAL- Free Report ) due to fears of declining travel demand. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ), American Airlines Group (NASDAQ: AAL- Free Report ), Hawaiian Holdings (NASDAQ: HA- Free Report ) and Spirit Airlines (NASDAQ: SAVE- Free Report ). Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on AAL - FREE Get the full Report on HA - FREE Get the full Report on ALGT - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report To read this article on Zacks.com click here.
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The partial reinstatement of the ban, which is aimed at preventing terrorism in the U.S., negatively impacted airline stocks like Delta Air Lines (NYSE: DAL- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ) and American Airlines Group (NASDAQ: AAL- Free Report ) due to fears of declining travel demand. Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ), American Airlines Group (NASDAQ: AAL- Free Report ), Hawaiian Holdings (NASDAQ: HA- Free Report ) and Spirit Airlines (NASDAQ: SAVE- Free Report ). Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on AAL - FREE Get the full Report on HA - FREE Get the full Report on ALGT - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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7474.0
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2017-06-28 00:00:00 UTC
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Delta Air Lines and Korean Air Sign a Joint-Venture Agreement
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-and-korean-air-sign-joint-venture-agreement-2017-06-28
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For many years, Delta Air Lines (NYSE: DAL) had a tense relationship with its SkyTeam alliance partner, Korean Air. Delta wanted to form a joint venture to serve the Asian market, while Korean Air resisted the idea of closer cooperation . This situation eventually led to a series of retaliatory moves by both sides.
However, the two carriers have put aside their differences since Ed Bastian took the CEO post at Delta in early 2016. Last week, Delta Air Lines and Korean Air finally signed their long-sought joint-venture agreement. If it receives regulatory approval, the joint venture will significantly improve Delta's positioning in Asia.
Joint ventures are the key to providing global connectivity
Since the Great Recession, joint ventures with foreign airlines have become a key piece of the U.S. legacy carriers' strategies for international growth. Immunized joint ventures allow airline partners to coordinate on schedules and pricing . Doing so keeps competition manageable and allows airlines to offer more connecting itinerary options to their customers.
Delta, American Airlines Group (NASDAQ: AAL) , and United Continental Holdings (NYSE: UAL) all have joint ventures with major European airlines. Together, these joint ventures control more than 80% of capacity in the trans-Atlantic market.
In Asia, United and American have joint ventures with Japan's two dominant airlines, ANA and Japan Airlines. This situation has left Delta out in the cold, to some extent.
A decade ago, Delta inherited Northwest Airlines' small hub at Tokyo's Narita Airport. Since then, changing market conditions and the opening of the more convenient Haneda Airport to a handful of U.S. flights has undermined the Narita hub's profitability , forcing Delta to cut its service there significantly.
In response, Delta has moved to cooperate more closely with China Eastern Airlines. However, the U.S. and China do not have an open-skies agreement, so forming a joint venture is impossible in that case. As a result, Delta remains at a severe disadvantage in the trans-Pacific market relative to United Continental. (American Airlines continues to be a laggard, with relatively few flights to Asia.)
Delta Air Lines and Korean Air mend fences
Whatever their previous differences, Delta Air Lines and Korean Air have finally decided to move forward with creating a joint venture. According to Delta, the joint venture will lead to expanded code-sharing, cooperation on pricing and marketing, more seamless flight connections between the carriers, reciprocal frequent-flier benefits, and greater cooperation in the air cargo market.
Delta and Korean Air will need regulatory approval to cooperate more closely. The two carriers received joint-venture immunity from regulators in 2002, but there was far more competition in the U.S. airline industry back then. As a result, some smaller carriers in the U.S. are protesting and want the government to reconsider the joint venture in light of how much market power Delta, American, and United have accumulated.
Given that United Airlines and American Airlines already have their joint ventures with ANA and Japan Airlines, respectively, it's unlikely that regulators will block the Delta-Korean Air joint venture. That said, the government could impose restrictions on the two carriers or require asset divestitures of some sort to stimulate competition.
Delta could get an edge in Asia
Today, there are far more flights from the U.S. to Tokyo than to Seoul. This situation would seem to give American and United an advantage over Delta, as their Asian joint-venture partners are based in Tokyo.
However, service in Tokyo is split between Narita Airport and Haneda Airport, which reduces the number of feasible connections. By contrast, Incheon Airport, where Korean Air has its hub, handles the vast majority of Seoul's air traffic. In addition, Incheon Airport is routinely ranked as the best airport in the world for connections, with a host of lavish amenities .
Delta is already starting to ramp up its service to Seoul. Earlier this month, it began flying to Seoul from Atlanta, complementing its existing routes from Detroit and Seattle. As Delta and Korean Air add more flights between the U.S. and Seoul, Incheon Airport could become an even more popular connecting point for people traveling between the U.S. and Asia -- and a big competitive advantage for Delta Air Lines.
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*Stock Advisor returns as of June 5, 2017
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, American Airlines Group (NASDAQ: AAL) , and United Continental Holdings (NYSE: UAL) all have joint ventures with major European airlines. Delta wanted to form a joint venture to serve the Asian market, while Korean Air resisted the idea of closer cooperation . Since then, changing market conditions and the opening of the more convenient Haneda Airport to a handful of U.S. flights has undermined the Narita hub's profitability , forcing Delta to cut its service there significantly.
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Delta, American Airlines Group (NASDAQ: AAL) , and United Continental Holdings (NYSE: UAL) all have joint ventures with major European airlines. If it receives regulatory approval, the joint venture will significantly improve Delta's positioning in Asia. In Asia, United and American have joint ventures with Japan's two dominant airlines, ANA and Japan Airlines.
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Delta, American Airlines Group (NASDAQ: AAL) , and United Continental Holdings (NYSE: UAL) all have joint ventures with major European airlines. Delta Air Lines and Korean Air mend fences Whatever their previous differences, Delta Air Lines and Korean Air have finally decided to move forward with creating a joint venture. Given that United Airlines and American Airlines already have their joint ventures with ANA and Japan Airlines, respectively, it's unlikely that regulators will block the Delta-Korean Air joint venture.
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Delta, American Airlines Group (NASDAQ: AAL) , and United Continental Holdings (NYSE: UAL) all have joint ventures with major European airlines. As a result, some smaller carriers in the U.S. are protesting and want the government to reconsider the joint venture in light of how much market power Delta, American, and United have accumulated. Given that United Airlines and American Airlines already have their joint ventures with ANA and Japan Airlines, respectively, it's unlikely that regulators will block the Delta-Korean Air joint venture.
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7475.0
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2017-06-28 00:00:00 UTC
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Southwest Airlines Becomes the Latest Carrier to Cut Cuba Flights
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-becomes-latest-carrier-cut-cuba-flights-2017-06-28
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Late last year, U.S. airlines launched scheduled service to Cuba with great fanfare. But in the first half of 2017, one airline after another has cut flights to this new market . Frontier Airlines, Silver Airways, and Spirit Airlines have pulled out of Cuba entirely. Meanwhile, American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) have implemented significant capacity cuts in Cuba.
On Wednesday morning, Southwest Airlines (NYSE: LUV) became the latest airline to announce cutbacks in Cuba. Its pending capacity reductions will allow American Airlines and JetBlue to consolidate their dominance on routes to Cuba's secondary cities.
More flight cuts ahead
Today, Southwest Airlines operates five daily flights to Cuba. It flies twice a day between Fort Lauderdale and Havana and once a day between Tampa and Havana. Southwest also has daily flights from Fort Lauderdale to Santa Clara and Varadero. Southwest Airlines will terminate the latter two routes after Labor Day.
This move isn't very surprising. Havana is Cuba's capital, largest city, and its economic and cultural center. As a result, the vast majority of travelers from the U.S. to Cuba want to go to Havana, particularly because U.S. regulations still prohibit pure tourism in Cuba. Demand for travel to Cuba's secondary cities has underperformed airlines' relatively modest expectations.
Year to date, regional airline Silver Airways has dropped all of its flights to nine secondary airports in Cuba. American Airlines dropped three daily flights to secondary cities. Furthermore, American and JetBlue both switched to using smaller jets in the 76-100 seat range for most of their routes to Cuba's secondary cities.
Restoring balance
Unlike American and JetBlue, Southwest Airlines doesn't have the option of "downgauging" to smaller planes. By the beginning of October, all of its planes will have either 143 seats or 175 seats. That's larger than what would be ideal for serving Cuba's smaller markets.
Additionally, Southwest has a smaller presence in South Florida than American Airlines and JetBlue. American operates a big hub in Miami with about 350 daily departures. JetBlue is a distant No. 2 in the region. It operates about 100 daily departures from Fort Lauderdale, although it plans to reach 140 daily departures within a few years.
By contrast, Southwest has just 63 daily departures from Fort Lauderdale today. This means it doesn't generate as much connecting traffic in Fort Lauderdale to support routes with less demand. As a result, its routes to Santa Clara and Varadero were not viable.
American and JetBlue will benefit
American Airlines will be the biggest beneficiary of Southwest's exit from the Santa Clara and Varadero markets. Today, it flies to both cities once a day from Miami, having cut back from twice-daily service in early 2017. Going forward, it will be the only airline flying from the U.S. to Varadero, which should give it considerable pricing power as long as the monopoly lasts.
JetBlue will also benefit from facing less competition for its Fort Lauderdale-Santa Clara flights. It will now share the market for flights to Santa Clara with American Airlines.
Even with Southwest Airlines' cutbacks, there is still no guarantee that other carriers' routes to Cuban secondary cities will become profitable. The Trump administration plans to implement tighter restrictions on travel to Cuba, which could lead to even lower travel demand. Nevertheless, Southwest's exit from the Santa Clara and Varadero markets should lead to better results for American Airlines and JetBlue Airways than would have been the case otherwise.
10 stocks we like better than Southwest Airlines
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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 June 5, 2017
Adam Levine-Weinberg owns shares of JetBlue Airways and Spirit Airlines and is long January 2019 $10 calls on JetBlue Airways. The Motley Fool recommends JetBlue Airways and 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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Meanwhile, American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) have implemented significant capacity cuts in Cuba. Its pending capacity reductions will allow American Airlines and JetBlue to consolidate their dominance on routes to Cuba's secondary cities. Restoring balance Unlike American and JetBlue, Southwest Airlines doesn't have the option of "downgauging" to smaller planes.
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Meanwhile, American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) have implemented significant capacity cuts in Cuba. More flight cuts ahead Today, Southwest Airlines operates five daily flights to Cuba. Nevertheless, Southwest's exit from the Santa Clara and Varadero markets should lead to better results for American Airlines and JetBlue Airways than would have been the case otherwise.
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Meanwhile, American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) have implemented significant capacity cuts in Cuba. More flight cuts ahead Today, Southwest Airlines operates five daily flights to Cuba. American and JetBlue will benefit American Airlines will be the biggest beneficiary of Southwest's exit from the Santa Clara and Varadero markets.
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Meanwhile, American Airlines (NASDAQ: AAL) and JetBlue Airways (NASDAQ: JBLU) have implemented significant capacity cuts in Cuba. Southwest also has daily flights from Fort Lauderdale to Santa Clara and Varadero. American Airlines dropped three daily flights to secondary cities.
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7476.0
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2017-06-28 00:00:00 UTC
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Technology Sector Update for 06/28/2017: ALOG, NTNX, NUAN, GOOGL, GOOG
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AAL
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https://www.nasdaq.com/articles/technology-sector-update-06282017-alog-ntnx-nuan-googl-goog-2017-06-28
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Top Tech Stocks
MSFT +0.62%
AAPL +1.23%
IBM +0.43%
CSCO +1.40%
GOOG +0.71%
Technology stocks were recovering from their deep declines made on Tuesday, with shares of tech companies in the S&P 500 rising nearly 1.0%.
In company news, Analogic ( ALOG ) carved out a big gain on Wednesday, with the threat detection company recently rising more than 9% to a session high of $74.40 a share after late Tuesday announcing a joint partnership with American Airlines ( AAL ) that will greatly expand the use of its computed tomography technology at airports worldwide.
Under terms of the agreement, American will buy multiple units of the ConneCT aviation checkpoint security screening system from Analogic.
The Transport Security Administration also is currently conducting its certification process for the Analogic screening system, and on June 15 began a demonstration in collaboration with American Airlines screening passenger's carry-on bags at Phoenix Sky Harbor International Airport.
In other sector news,
(+) NTNX, (+7.5%) Analysts at Robert W. Baird & Co said they were "increasing positive" about the company's cloud partnership agreement with Alphabet's (GOOG,GOOGL) Google unit announced earlier this week.
(-) NUAN, (-0.9%) Hires "leading" cyber-security experts after portions of its network were affected by a global malware incident onTuesday.
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 company news, Analogic ( ALOG ) carved out a big gain on Wednesday, with the threat detection company recently rising more than 9% to a session high of $74.40 a share after late Tuesday announcing a joint partnership with American Airlines ( AAL ) that will greatly expand the use of its computed tomography technology at airports worldwide. Under terms of the agreement, American will buy multiple units of the ConneCT aviation checkpoint security screening system from Analogic. (-) NUAN, (-0.9%) Hires "leading" cyber-security experts after portions of its network were affected by a global malware incident onTuesday.
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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. In company news, Analogic ( ALOG ) carved out a big gain on Wednesday, with the threat detection company recently rising more than 9% to a session high of $74.40 a share after late Tuesday announcing a joint partnership with American Airlines ( AAL ) that will greatly expand the use of its computed tomography technology at airports worldwide. In other sector news, (+) NTNX, (+7.5%) Analysts at Robert W. Baird & Co said they were "increasing positive" about the company's cloud partnership agreement with Alphabet's (GOOG,GOOGL) Google unit announced earlier this week.
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In company news, Analogic ( ALOG ) carved out a big gain on Wednesday, with the threat detection company recently rising more than 9% to a session high of $74.40 a share after late Tuesday announcing a joint partnership with American Airlines ( AAL ) that will greatly expand the use of its computed tomography technology at airports worldwide. The Transport Security Administration also is currently conducting its certification process for the Analogic screening system, and on June 15 began a demonstration in collaboration with American Airlines screening passenger's carry-on bags at Phoenix Sky Harbor International Airport. The views and 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 company news, Analogic ( ALOG ) carved out a big gain on Wednesday, with the threat detection company recently rising more than 9% to a session high of $74.40 a share after late Tuesday announcing a joint partnership with American Airlines ( AAL ) that will greatly expand the use of its computed tomography technology at airports worldwide. Technology stocks were recovering from their deep declines made on Tuesday, with shares of tech companies in the S&P 500 rising nearly 1.0%. Under terms of the agreement, American will buy multiple units of the ConneCT aviation checkpoint security screening system from Analogic.
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7477.0
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2017-06-27 00:00:00 UTC
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3 Airline Stocks to Buy as They Reach for the Stars
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AAL
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https://www.nasdaq.com/articles/3-airline-stocks-to-buy-as-they-reach-for-the-stars-2017-06-27
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Although the S&P 500 continues to hit new all-time highs, doesn't mean all stocks are moving forward in a straight line. FANG stocks and the Nasdaq Composite took a nasty spill, while retail has had its fair share of struggles. The Energy Select Sector SPDR (ETF) (NYSEARCA: XLE ) has spent most of 2017 tripping over its own two feet to make new lows. But not all is bad and one group could be looking to extend its gains: Airline stocks.
Source: Shutterstock
Broadly speaking, airline stocks trade with a low valuation and benefit from their largest input cost - oil - falling. It helps too that Warren Buffett has been placing big bets in the industry.
Further, as the U.S. and global economy continue to improve, flights will be in higher demand. This is from a consumer standpoint, as well as a business standpoint. Individuals, couples and families will be more open to cracking open the wallet and booking a vacation during good times. Likewise, businesses will be more willing to send employees on more trips for work.
10 Dividend Stocks That Will Deliver Double-Digit Returns Every Year
Let's not waste any time and take a look at what we have.
Airline Stocks to Buy: Delta Air Lines (DAL)
Click to Enlarge Source: Stockcharts.com
It's quite possible that Delta Air Lines, Inc. (NYSE: DAL ) is the most attractive airline stock to buy at this point. The stock is up a little more than 7% on the year and if all goes well, those gains should continue .
So what makes DAL so attractive?
First, the stock trades at about 10x forward 2017 earnings expectations of $5.30 per share. That's a remarkably low valuation for an industry-leading company that's quite profitable and should be for the foreseeable future.
In addition, DAL stock pays a 1.5% dividend yield. After initiating a dividend in 2013, Delta has increased its payout by 50% in each July since. In that regard, we can likely expect another 50% increase in about a month.
Last quarter, Delta said its pre-tax income for the quarter was $847 million. This was a $713 million decrease from the same quarter a year ago. Management mostly blamed higher fuel costs for the decline. But given that oil prices are down about 25% on the year, Delta should be one to benefit.
Then there's Warren Buffett. If he's not a catalyst, he's at least a reassurance. Earlier this year, it was made public that he has more than 55 million shares of DAL stock. In other words, he owns about 7.5% of the outstanding stock.
Finally, there's the stock price. The $51 to $52 area has been heavy resistance for Delta Air Lines stock. But the stock has finally broke through that level. So long as it can hold above this level, it should act as support going forward. Investors with a low risk tolerance can also use it as a stop-loss.
Airline Stocks to Buy: Alaska Airlines (ALK)
Click to Enlarge Source: Stockcharts.com
Part of the attraction to DAL is that the stock is now above resistance. The same cannot be said for Alaska Air Group, Inc. (NYSE: ALK ). However, the stock is working on breaking through a smaller level of resistance. If it's able to, it will put the recent all-time highs back in target.
Looking at the charts, $92 is a Donald Trump "YUGE" level. From January through March 2017, this level served as strong support. Now though, it acts as resistance.
However, with the positive-trending 21-day moving average acting as support and ALK stock retesting the $92-level again after just a few weeks is constructive. If ALK can break above, the next target is $101.43 - just over 10% upside if it gets there.
Traders and short-term investors can wait for a breakout over this level and buy the stock. A close below $92 can then act as a stop-loss.
But there's more than just technicals at play here. Alaska pays a dividend of 1.3% and recently acquired Virgin Airlines. The move boosts its flight routes around the country and allows it diversify beyond the West Coast.
Additionally, analysts expect earnings to grow 10.4% this year, 7.2% in 2018 and 9.6% annually for the next five years. All of this for just 10.5x forward earnings. Although ALK is much smaller than Delta - a market cap of $11 billion vs. $39 billion - it's still got solid growth potential going forward.
The 10 Best Stocks to Buy for the Next Decade
If ALK breaks out, investors have a clear-cut risk/reward situation. It will allow for big upside potential and minimal downside losses.
Airline Stocks to Buy: Southwest Airlines (LUV)
Click to Enlarge Source: Stockcharts.com
Delta isn't the only airline Warren Buffett owns. He's got almost 48 million shares of Southwest Airlines Co (NYSE: LUV ) - good for almost 8% of outstanding stock. Buffett also has big positions in American Airlines Group Inc (NASDAQ: AAL ) and United Continental Holdings Inc (NYSE: UAL ).
Let's start with fundamentals. LUV stock trades at 13x forward earnings estimates. That's higher than Alaska and Delta, but it's still quite cheap. Especially when considering that analysts expect roughly 24% earnings growth in 2018 and 12% annual growth for the next five years.
Admittedly, analysts only expect 3% earnings growth in 2017 and just mid-single digit revenue growth in 2017 and 2018. But Southwest is as consistent as they come.
It's sub-1% dividend yield won't knock anyone's socks off, but it's better than nothing. Last month, Southwest gave a dividend a 25% boost and announced a new $2 billion share repurchase plan. With Buffett holding (and rarely selling) an ~8% position and LUV lapping up stock, that's good news for shareholders.
One negative is that the stock is up 102% over the past 12 months. Have we missed the move? Maybe a big part of it, but that doesn't we can't enjoy some gains too.
In May, LUV broke through resistance at $59. In June, that level became support. After taking out its year-highs, LUV stock is now taking flight. Without any overhead resistance, investors can expect more upside. For the risk-adverse, consider a stop-loss below recent highs near $61 or current, larger support below $59.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell . As of this writing, he did not hold a position in any of the aforementioned securities.
The post 3 Airline Stocks to Buy as They Reach for the Stars 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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Buffett also has big positions in American Airlines Group Inc (NASDAQ: AAL ) and United Continental Holdings Inc (NYSE: UAL ). The Energy Select Sector SPDR (ETF) (NYSEARCA: XLE ) has spent most of 2017 tripping over its own two feet to make new lows. Source: Shutterstock Broadly speaking, airline stocks trade with a low valuation and benefit from their largest input cost - oil - falling.
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Buffett also has big positions in American Airlines Group Inc (NASDAQ: AAL ) and United Continental Holdings Inc (NYSE: UAL ). Airline Stocks to Buy: Delta Air Lines (DAL) Click to Enlarge Source: Stockcharts.com It's quite possible that Delta Air Lines, Inc. (NYSE: DAL ) is the most attractive airline stock to buy at this point. Airline Stocks to Buy: Alaska Airlines (ALK) Click to Enlarge Source: Stockcharts.com Part of the attraction to DAL is that the stock is now above resistance.
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Buffett also has big positions in American Airlines Group Inc (NASDAQ: AAL ) and United Continental Holdings Inc (NYSE: UAL ). InvestorPlace - Stock Market News, Stock Advice & Trading Tips Although the S&P 500 continues to hit new all-time highs, doesn't mean all stocks are moving forward in a straight line. Airline Stocks to Buy: Delta Air Lines (DAL) Click to Enlarge Source: Stockcharts.com It's quite possible that Delta Air Lines, Inc. (NYSE: DAL ) is the most attractive airline stock to buy at this point.
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Buffett also has big positions in American Airlines Group Inc (NASDAQ: AAL ) and United Continental Holdings Inc (NYSE: UAL ). Airline Stocks to Buy: Alaska Airlines (ALK) Click to Enlarge Source: Stockcharts.com Part of the attraction to DAL is that the stock is now above resistance. Airline Stocks to Buy: Southwest Airlines (LUV) Click to Enlarge Source: Stockcharts.com Delta isn't the only airline Warren Buffett owns.
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7478.0
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2017-06-26 00:00:00 UTC
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The Zacks Analyst Blog Highlights: American Airlines Group, Delta Air Lines, Southwest Airlines and United Continental Holdings
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-american-airlines-group-delta-air-lines-southwest-0
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For Immediate Release
Chicago, IL - June 26, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include American Airlines Group (NASDAQ: AAL- Free Report ), Delta Air Lines (NYSE: DAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and United Continental Holdings (NYSE: UAL- Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Monday's Analyst Blog:
Airline Stocks Flying High on Multiple Tailwinds: 4 Picks
Stocks in the airline space are having a good time and are certainly back in favor, despite some challenges. Lets us delve deep to find out the factors behind the change in fortunes of airline stocks.
Improvement in Unit Revenue
Issues like unit revenue woes which had plagued airlines in the previous year seem to be a thing of the past. This is because the scenario regarding this key metric - a measure of sales relative to capacity for a carrier - has been improving steadily.
In fact, carriers like American Airlines Group (NASDAQ: AAL- Free Report ) and JetBlue Airways Corp. have unveiled bullish unit revenue forecasts for the second quarter of 2017. JetBlue has also said that the scenario for revenue per available seat miles (RASM: a key measure of unit revenue) is expected to vastly improve for the third quarter as well.
In addition, JetBlue received encouraging news lately when Moody's Investors Service, the rating services arm of Moody's Corp., upgraded the Corporate Family Rating for the carrier to "Ba1" from "Ba3." The firm is impressed by the carrier's strong balance sheet and efforts to deepen focus on its popular Mint service among other factors.
Impressive Balance Sheets
Moreover, the fact that airlines are in solid financial health can be made out from their employee as well as investor-friendly moves. To this end, Delta Air Lines (NYSE: DAL- Free Report ) and Southwest Airlines (NYSE: LUV- Free Report ) have hiked their quarterly dividend payouts this year. Moreover, they have also shelled out significant amounts to their employees as part of their respective profit sharing schemes.
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.
Fall in Oil Prices: A Boon for Carriers
The recent decline in oil prices bring in further good news for airlines as fuel costs represent a significant portion of their operating expenses. Currently, oil price is hovering around the $40 a barrel mark which represents a significant decline from the levels at the start of the year.
In fact, crude has lost over 20% on a year-to-date basis. It is to be noted that lower the oil prices better it is for the carriers' bottom line. Therefore, a sharp decline in oil prices implies that stocks in the airline space will continue to make huge savings thereby bolstering their balance sheets.
Bullish IATA Forecast
At its 73rd Annual General Meeting in Cancun, Mexico, the International Air Transport Association (IATA) said that airline companies are expected to be more profitable in 2017 than previously expected. IATA now expects global net profit for the industry to come in at $31.4 billion (the earlier projection hinted at profits of $29.8 billion for 2017).
The improved projection was driven by expectations of higher demand. While air travel is expected to grow 7.4% on a year-over-year basis, cargo demand is projected to grow 7.5% in 2017.
Zacks Industry Rank Highlights the Favorable Scenario
The positive developments are reflected by the bullish Zacks Industry Rank of 59 carried by the 25-member Transportation- Airline industry.
Notably, thefavorable rank places the industry in the top 23% of the 250+ groups that are enlisted. The positioning indicates a positive outlook. In fact, our back-testing shows that the top 50% of the Zacks ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
Airline Stocks that Should Grace Your Portfolio
Given this bullish backdrop, it seems to be a prudent idea to add stocks from this high flying sector to one's portfolio for high returns. However, with a plethora of stocks present in the airline space, it is by no means an easy task for investors to pinpoint potential outperformers. This is where the Zacks Rank, which justifies a company's strong fundamentals, can come in really handy. We narrowed down our choices with the help of our new Style Score System .
Our research shows that stocks with a Value Style Score of 'A' or 'B' when combined with a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) offer the best investment opportunities in the value investing space. You can see the complete list of today's Zacks #1 Rank stocks here .
Our Choices
United Continental Holdings (NYSE: UAL- Free Report ) based in Chicago is the holding company for both United Airlines and Continental Airlines. The company carries a Zacks Rank #2 and a Value Style Score of 'A.' Also, the Zacks Consensus Estimate for its current year earnings moved up 3.9% over the last 60 days to $7.26 per share.
Southwest Airlines is a passenger airline that provides scheduled air transportation in the US. The company carries a Zacks Rank #2 and a Value Style Score of 'B.' Furthermore, the Zacks Consensus Estimate for its current year earnings climbed 2.4% over the last 60 days to $3.85 per share.
SkyWest Inc. operates as a regional airline in the US.through its subsidiaries. The company has a Zacks Rank #2 and a Value Style Score of "A." The Zacks Consensus Estimate for its current year earnings moved up 4.3% over the last 60 days to $3.85 per share.
Deutsche Lufthansa Aktiengesellschaft operates as an aviation company in Germany as well as internationally. It operates through Passenger Airline Group, Logistics, MRO and Catering segments. Deutsche Lufthansa sports a Zacks Rank #1 and has a Value Style Score of "A." The Zacks Consensus Estimate for its current year earnings moved up 49.5% over the last 60 days to $2.87 per share.
Looking for Ideas with Even Greater Upside?
Most of Zacks' investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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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
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Southwest Airlines Company (LUV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 fact, carriers like American Airlines Group (NASDAQ: AAL- Free Report ) and JetBlue Airways Corp. have unveiled bullish unit revenue forecasts for the second quarter of 2017. Stocks recently featured in the blog include American Airlines Group (NASDAQ: AAL- Free Report ), Delta Air Lines (NYSE: DAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and United Continental Holdings (NYSE: UAL- Free Report ). Get the full Report on AAL - FREE Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on LUV - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Stocks recently featured in the blog include American Airlines Group (NASDAQ: AAL- Free Report ), Delta Air Lines (NYSE: DAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and United Continental Holdings (NYSE: UAL- Free Report ). Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, carriers like American Airlines Group (NASDAQ: AAL- Free Report ) and JetBlue Airways Corp. have unveiled bullish unit revenue forecasts for the second quarter of 2017.
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Stocks recently featured in the blog include American Airlines Group (NASDAQ: AAL- Free Report ), Delta Air Lines (NYSE: DAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and United Continental Holdings (NYSE: UAL- Free Report ). Get the full Report on AAL - FREE Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on LUV - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include American Airlines Group (NASDAQ: AAL- Free Report ), Delta Air Lines (NYSE: DAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and United Continental Holdings (NYSE: UAL- Free Report ). In fact, carriers like American Airlines Group (NASDAQ: AAL- Free Report ) and JetBlue Airways Corp. have unveiled bullish unit revenue forecasts for the second quarter of 2017. Get the full Report on AAL - FREE Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on LUV - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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7479.0
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2017-06-26 00:00:00 UTC
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Southwest Airlines (LUV) to Expand Via San Diego-Tampa Route
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-luv-to-expand-via-san-diego-tampa-route-2017-06-26
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In a bid to expand further, Dallas-based low-cost carrier Southwest AirlinesLUV announced that it will launch nonstop flights connecting Tampa, Fla. and San Diego. The carrier intends to start operations on the route from Jan 8, 2018 onward. In fact, tickets are already available for the new service.
Notably, prices have been kept low in a bid to attract more and more passengers on the new flights. The new route on operation should find favor among passengers as it expands their choice of travel between the favorite tourist destinations.
We note that Southwest Airlines has been constantly looking to expand its wings. To this end, it recently commenced flight service at Cincinnati/Northern Kentucky International Airport (CVG). Following this, the carrier offers a total of eight daily nonstop flights, five between CVG and Chicago Midway (MDW) and three between CVG and Baltimore/Washington International Airport (BWI).
In addition, the new flights' customer-friendly policies are a welcome relief for travelers who have been paying high fares so far. In fact, not only Southwest Airlines but most other carriers are looking to expand courtesy their strong financial position.
According to a projection by Airlines for America ('A4A') - the trade organization for the leading US airlines - US carriers which include the likes of American Airlines Group Inc. AAL , Delta Air Lines Inc. DAL , JetBlue Airways Corporation JBLU and Southwest Airlines are in for good times in the current summer season (Jun 1-Aug 31).
In particular, it is predicted that the summer of 2017 will be the busiest season of all times for American carriers in terms of air travel. This is because 4% more passengers are expected to fly to various destinations over the period compared with the last year (Read more: U.S. Carriers Likely to Have Busiest Summer, Says A4A ).
Apart from its expansion initiatives, Southwest Airlines was also in the news when it announced a 25% hike in its quarterly dividend payout last month. Moreover, its board of directors approved a new share repurchase program worth $2 billion at its annual meeting of shareholders. In fact, the new buyback scheme will replace another $2 billion repurchase plan that was completed recently.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells 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 Company (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.
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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According to a projection by Airlines for America ('A4A') - the trade organization for the leading US airlines - US carriers which include the likes of American Airlines Group Inc. AAL , Delta Air Lines Inc. DAL , JetBlue Airways Corporation JBLU and Southwest Airlines are in for good times in the current summer season (Jun 1-Aug 31). Click to get this free report Southwest Airlines Company (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 a bid to expand further, Dallas-based low-cost carrier Southwest AirlinesLUV announced that it will launch nonstop flights connecting Tampa, Fla. and San Diego.
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According to a projection by Airlines for America ('A4A') - the trade organization for the leading US airlines - US carriers which include the likes of American Airlines Group Inc. AAL , Delta Air Lines Inc. DAL , JetBlue Airways Corporation JBLU and Southwest Airlines are in for good times in the current summer season (Jun 1-Aug 31). Click to get this free report Southwest Airlines Company (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. Plus, you may download 220 Zacks Rank #5 "Strong Sells."
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According to a projection by Airlines for America ('A4A') - the trade organization for the leading US airlines - US carriers which include the likes of American Airlines Group Inc. AAL , Delta Air Lines Inc. DAL , JetBlue Airways Corporation JBLU and Southwest Airlines are in for good times in the current summer season (Jun 1-Aug 31). Click to get this free report Southwest Airlines Company (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, not only Southwest Airlines but most other carriers are looking to expand courtesy their strong financial position.
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According to a projection by Airlines for America ('A4A') - the trade organization for the leading US airlines - US carriers which include the likes of American Airlines Group Inc. AAL , Delta Air Lines Inc. DAL , JetBlue Airways Corporation JBLU and Southwest Airlines are in for good times in the current summer season (Jun 1-Aug 31). Click to get this free report Southwest Airlines Company (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 is because 4% more passengers are expected to fly to various destinations over the period compared with the last year (Read more: U.S. Carriers Likely to Have Busiest Summer, Says A4A ).
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7480.0
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2017-06-26 00:00:00 UTC
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Why Does Qatar Airways Want to Invest in American Airlines?
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AAL
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https://www.nasdaq.com/articles/why-does-qatar-airways-want-invest-american-airlines-2017-06-26
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Qatar Airways wants to buy a piece of the biggest airline in the world. In a securities filing last week, American Airlines (NASDAQ: AAL) stated that the fast-growing Middle Eastern airline plans to buy up to 10% of its stock.
This puts American in an awkward position, because it is part of a lobbying group -- along with Delta Air Lines (NYSE: DAL) and United Continental (NYSE: UAL) -- that seeks to limit Qatar Airways' growth in the U.S. Indeed, it's not clear what Qatar Airways is up to with its latest minority investment move.
Qatar Airways likes having partners
In recent years, Qatar Airways has shown more interest in partnering with other airlines than its larger regional rival Emirates.
For example, Qatar Airways is the only one of the three big Persian Gulf carriers that belongs to a major airline alliance. It joined the Oneworld group (which also includes the likes of American Airlines, British Airways, Cathay Pacific, Japan Airlines, LATAM, and Qantas) in late 2013.
Qatar Airways has also accumulated a 20% stake in IAG, the holding company that owns British Airways and Iberia (both fellow members of the Oneworld alliance). This shareholding arrangement paved the way for a revenue-sharing joint venture agreement implemented last fall. It has also led to IAG defending Qatar Airways' right to grow in Europe.
What is Qatar Airways up to?
Qatar Airways may just see an American Airlines investment as a way to make money by investing in a highly profitable airline. However, if that were the case, there are plenty of other airlines it could invest in, most of which are not lobbying aggressively against Qatar Airways.
A more plausible rationale is that Qatar Airways hopes to buy some influence through its investment, as seems to have been the case at IAG. Yet American Airlines doesn't need a capital injection. It doesn't even need the validation of a large third-party investor anymore, now that Warren Buffett's Berkshire Hathaway is one of its biggest shareholders .
A third possibility is that Qatar Airways -- which is effectively controlled by Qatar's government -- simply wants to create more ties between Qatar and the U.S. In the long run, this could have diplomatic or economic benefits for Qatar.
Qatar Airways has officially stated that its proposed investment in American Airlines would be passive in nature. This means it will not recommend changes to the board or management, suggesting that the third explanation may come closest to capturing Qatar Airways' true motives.
American Airlines isn't interested
So far, American Airlines doesn't seem remotely interested in having a cozy relationship with Qatar Airways. In an email to employees , American Airlines CEO Doug Parker stated, "[W]e aren't particularly excited about Qatar's outreach, and we find it puzzling given our extremely public stance on the illegal subsidies that Qatar, Emirates and Etihad have all received over the years from their governments."
Indeed, the Partnership for Open and Fair Skies -- a lobbying group consisting of American Airlines, Delta Air Lines, and United Continental -- claims that Qatar Airways received $15 billion in government subsidies between 2004 and 2014, in the form of interest-free loans, loan guarantees, and cash advances from the Qatari government.
Airline employees at American, Delta, and United have bought in to this campaign against the so-called ME3 carriers (Emirates, Etihad, and Qatar Airways). They recognize that a big influx of competition from the likes of Qatar Airways would force their employers to seek wage concessions to offset unit revenue declines.
American Airlines can't afford to back down from its strong stance against the ME3 carriers, as it would risk inciting more labor tensions. So while Qatar Airways may acquire a small stake in the world's largest airline, this development would probably have a negligible impact on the U.S. airline industry.
10 stocks we like better than American Airlines Group
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and American Airlines Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of June 5, 2017
Adam Levine-Weinberg owns shares of Delta Air Lines. The Motley Fool owns shares of and recommends BRK-B. 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 a securities filing last week, American Airlines (NASDAQ: AAL) stated that the fast-growing Middle Eastern airline plans to buy up to 10% of its stock. Airline employees at American, Delta, and United have bought in to this campaign against the so-called ME3 carriers (Emirates, Etihad, and Qatar Airways). They recognize that a big influx of competition from the likes of Qatar Airways would force their employers to seek wage concessions to offset unit revenue declines.
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In a securities filing last week, American Airlines (NASDAQ: AAL) stated that the fast-growing Middle Eastern airline plans to buy up to 10% of its stock. This puts American in an awkward position, because it is part of a lobbying group -- along with Delta Air Lines (NYSE: DAL) and United Continental (NYSE: UAL) -- that seeks to limit Qatar Airways' growth in the U.S. Qatar Airways likes having partners In recent years, Qatar Airways has shown more interest in partnering with other airlines than its larger regional rival Emirates.
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In a securities filing last week, American Airlines (NASDAQ: AAL) stated that the fast-growing Middle Eastern airline plans to buy up to 10% of its stock. Qatar Airways likes having partners In recent years, Qatar Airways has shown more interest in partnering with other airlines than its larger regional rival Emirates. Qatar Airways may just see an American Airlines investment as a way to make money by investing in a highly profitable airline.
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In a securities filing last week, American Airlines (NASDAQ: AAL) stated that the fast-growing Middle Eastern airline plans to buy up to 10% of its stock. What is Qatar Airways up to? After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.
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7481.0
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2017-06-22 00:00:00 UTC
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Pre-Market Most Active for Jun 22, 2017 : SMFG, ORCL, SPLS, AAL, HAIN, QQQ, WB, STM, TMHC, BP, BABA, MOMO
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AAL
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https://www.nasdaq.com/articles/pre-market-most-active-jun-22-2017-smfg-orcl-spls-aal-hain-qqq-wb-stm-tmhc-bp-baba-momo
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The NASDAQ 100 Pre-Market Indicator is up 6.15 to 5,788.54. The total Pre-Market volume is currently 7,176,444 shares traded.
The following are the most active stocks for the pre-market session :
Sumitomo Mitsui Financial Group Inc ( SMFG ) is +0.1383 at $7.74, with 3,300,000 shares traded. As reported by Zacks, the current mean recommendation for SMFG is in the "strong buy range".
Oracle Corporation ( ORCL ) is +5.48 at $51.81, with 1,003,860 shares traded. As reported by Zacks, the current mean recommendation for ORCL is in the "buy range".
Staples, Inc. ( SPLS ) is +0.59 at $9.25, with 522,032 shares traded. SPLS's current last sale is 97.37% of the target price of $9.5.
American Airlines Group, Inc. ( AAL ) is +2.77 at $51.20, with 374,672 shares traded. As reported in the last short interest update the days to cover for AAL is 7.105442; this calculation is based on the average trading volume of the stock.
The Hain Celestial Group, Inc. ( HAIN ) is +1.94 at $35.10, with 344,565 shares traded. RTT News Reports: Bearish Trends In Crude To Be Reflected On Street Opening
PowerShares QQQ Trust, Series 1 ( QQQ ) is +0.16 at $140.90, with 309,315 shares traded. This represents a 38.48% increase from its 52 Week Low.
Weibo Corporation ( WB ) is -8.16 at $68.80, with 206,474 shares traded. As reported by Zacks, the current mean recommendation for WB is in the "strong buy range".
STMicroelectronics N.V. ( STM ) is -0.47 at $14.88, with 195,976 shares traded. STM's current last sale is 74.4% of the target price of $20.
Taylor Morrison Home Corporation ( TMHC ) is -0.98 at $23.11, with 178,393 shares traded. TMHC's current last sale is 103.87% of the target price of $22.25.
BP p.l.c. ( BP ) is -0.05 at $34.60, with 142,193 shares traded. BP's current last sale is 92.27% of the target price of $37.5.
Alibaba Group Holding Limited ( BABA ) is -0.75 at $142.54, with 135,505 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jun 2017. The consensus EPS forecast is $0.71. As reported by Zacks, the current mean recommendation for BABA is in the "buy range".
Momo Inc. ( MOMO ) is -1.59 at $37.11, with 90,084 shares traded. As reported by Zacks, the current mean recommendation for MOMO is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 reported in the last short interest update the days to cover for AAL is 7.105442; this calculation is based on the average trading volume of the stock. American Airlines Group, Inc. ( AAL ) is +2.77 at $51.20, with 374,672 shares traded. The following are the most active stocks for the pre-market session : Sumitomo Mitsui Financial Group Inc ( SMFG ) is +0.1383 at $7.74, with 3,300,000 shares traded.
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American Airlines Group, Inc. ( AAL ) is +2.77 at $51.20, with 374,672 shares traded. As reported in the last short interest update the days to cover for AAL is 7.105442; this calculation is based on the average trading volume of the stock. The total Pre-Market volume is currently 7,176,444 shares traded.
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American Airlines Group, Inc. ( AAL ) is +2.77 at $51.20, with 374,672 shares traded. As reported in the last short interest update the days to cover for AAL is 7.105442; this calculation is based on the average trading volume of the stock. RTT News Reports: Bearish Trends In Crude To Be Reflected On Street Opening PowerShares QQQ Trust, Series 1 ( QQQ ) is +0.16 at $140.90, with 309,315 shares traded.
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American Airlines Group, Inc. ( AAL ) is +2.77 at $51.20, with 374,672 shares traded. As reported in the last short interest update the days to cover for AAL is 7.105442; this calculation is based on the average trading volume of the stock. ( BP ) is -0.05 at $34.60, with 142,193 shares traded.
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7482.0
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2017-06-22 00:00:00 UTC
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Southwest Airlines Stock Upgraded: What You Need to Know
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-stock-upgraded-what-you-need-know-2017-06-22
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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...
Up more than 51% over the past year -- and beating the market by 35 points, by the way -- shares of Southwest Airlines (NYSE: LUV) have richly rewarded their owners. According to one analyst, though, Southwest's run is not yet done. Far from it, in fact.
This morning, stock rater Argus Research announced it is upgrading Southwest stock as a sort of best-of-breed play on the airline industry. Here are three reasons why Argus likes it.
1. Pricey...
Argus begins its analysis with a plain admission that Southwest stock does not look cheap on the surface. Costing 18.4 times trailing earnings, Southwest stock sells for a 56% premium to the 11.8 valuation on a share of American Airlines (NASDAQ: AAL) , costs 64% more than United Continental Holdings (NYSE: UAL) , and fetches a whopping 90% premium to industry giant Delta Air Lines (NYSE: DAL) -- both the biggest company in the industry by market cap, and the cheapest stock at just 9.7 times earnings.
2. ...but worth the price
And yet, Argus thinks Southwest stock deserves to be "priced slightly higher than the peer group." After all, Southwest Airlines is one of the "most profitable airlines in the world," as my fellow Fool Adam Levine-Weinberg pointed out earlier this year , with an operating profit margin that tops those of any of the three big legacy airlines named above.
In a report quoted on StreetInsider.com (requires subscription) this morning, Argus praises Southwest's "clean" balance sheet and "impressive record of returning capital to shareholders through dividends and share buybacks." Helping with the latter, I suspect, is the fact that Southwest's profits are of significantly higher quality than its rivals', and its balance sheet looks better as well.
3. Crunching the numbers
Consider: According to data from S&P Global Market Intelligence , every dollar of the $2.1 billion in net profit that Southwest Airlines reported earning over the past 12 months is backed up by $1.03 in actual free cash flow generated by its business. Compare that with:
Delta Air Lines, which reported earning $4 billion over the past year, but generated only $2.1 billion in free cash flow.
United, which reported profits of more than $2 billion, but whose free cash flow was less than $1.8 billion.
And most especially American Airlines, which reported earning $2.2 billion, but generated FCF of only $266 million -- just $0.12 on the dollar!
You can see right there that not only is Southwest Airlines is more profitable than its rivals, as Argus claims, but the profits it's earning are also more "real" than anything its competitors can match. No wonder, then, that when you turn to examine the companies' respective balance sheets, you find that Southwest's balance sheet is flush with $416 million more cash than debt -- while Delta carries $6.6 billion in net debt on its balance sheet, United is $8.5 billion in hock, and American carries a staggering $17.9 billion net debt load!
More profitable, and widening the gap
One final note before we close. Digging deep into Argus's research, TheFly.com (requires subscription) touches down upon the fact that Southwest has just finished investing $500 million in a new reservation system to streamline its business. Argus calculates that this investment will pay for itself in under three years, generating an additional $500 million in earnings by 2020. After that, presumably, the investment will continue earning profits, and adding to Southwest's bottom line -- widening the gap between Southwest and its rivals even further.
Mind you, at today's valuation of an enterprise value 17.4 times trailing free cash flow and a projected profits growth rate of only 14.3%, I wouldn't call Southwest Airlines stock cheap, exactly. But Argus Research is right. Within the airline industry, this company is clearly best of breed -- and worthy of its buy rating, just as soon as the price is right.
10 stocks we like better than Southwest Airlines
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*
David and Tom just revealed what they believe are the 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 June 5, 2017
Rich Smith has no position in any 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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Costing 18.4 times trailing earnings, Southwest stock sells for a 56% premium to the 11.8 valuation on a share of American Airlines (NASDAQ: AAL) , costs 64% more than United Continental Holdings (NYSE: UAL) , and fetches a whopping 90% premium to industry giant Delta Air Lines (NYSE: DAL) -- both the biggest company in the industry by market cap, and the cheapest stock at just 9.7 times earnings. Today, we're taking one high-profile Wall Street pick and putting it under the microscope... Up more than 51% over the past year -- and beating the market by 35 points, by the way -- shares of Southwest Airlines (NYSE: LUV) have richly rewarded their owners. In a report quoted on StreetInsider.com (requires subscription) this morning, Argus praises Southwest's "clean" balance sheet and "impressive record of returning capital to shareholders through dividends and share buybacks."
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Costing 18.4 times trailing earnings, Southwest stock sells for a 56% premium to the 11.8 valuation on a share of American Airlines (NASDAQ: AAL) , costs 64% more than United Continental Holdings (NYSE: UAL) , and fetches a whopping 90% premium to industry giant Delta Air Lines (NYSE: DAL) -- both the biggest company in the industry by market cap, and the cheapest stock at just 9.7 times earnings. Compare that with: Delta Air Lines, which reported earning $4 billion over the past year, but generated only $2.1 billion in free cash flow. No wonder, then, that when you turn to examine the companies' respective balance sheets, you find that Southwest's balance sheet is flush with $416 million more cash than debt -- while Delta carries $6.6 billion in net debt on its balance sheet, United is $8.5 billion in hock, and American carries a staggering $17.9 billion net debt load!
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Costing 18.4 times trailing earnings, Southwest stock sells for a 56% premium to the 11.8 valuation on a share of American Airlines (NASDAQ: AAL) , costs 64% more than United Continental Holdings (NYSE: UAL) , and fetches a whopping 90% premium to industry giant Delta Air Lines (NYSE: DAL) -- both the biggest company in the industry by market cap, and the cheapest stock at just 9.7 times earnings. This morning, stock rater Argus Research announced it is upgrading Southwest stock as a sort of best-of-breed play on the airline industry. No wonder, then, that when you turn to examine the companies' respective balance sheets, you find that Southwest's balance sheet is flush with $416 million more cash than debt -- while Delta carries $6.6 billion in net debt on its balance sheet, United is $8.5 billion in hock, and American carries a staggering $17.9 billion net debt load!
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Costing 18.4 times trailing earnings, Southwest stock sells for a 56% premium to the 11.8 valuation on a share of American Airlines (NASDAQ: AAL) , costs 64% more than United Continental Holdings (NYSE: UAL) , and fetches a whopping 90% premium to industry giant Delta Air Lines (NYSE: DAL) -- both the biggest company in the industry by market cap, and the cheapest stock at just 9.7 times earnings. Today, we're taking one high-profile Wall Street pick and putting it under the microscope... Up more than 51% over the past year -- and beating the market by 35 points, by the way -- shares of Southwest Airlines (NYSE: LUV) have richly rewarded their owners. Mind you, at today's valuation of an enterprise value 17.4 times trailing free cash flow and a projected profits growth rate of only 14.3%, I wouldn't call Southwest Airlines stock cheap, exactly.
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7483.0
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2017-06-22 00:00:00 UTC
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American Airlines (AAL) Climbs Higher as Qatar Airways Looks to Buy 10% Stake
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-climbs-higher-qatar-airways-looks-buy-10-stake-2017-06-22
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On Thursday, shares of American Airlines AAL are moving higher, up about 1.08% in late-morning trading after the company said it had recently received an unsolicited offer from Qatar Airways, the Middle Eastern country's state-owned airline, to buy as much as a 10% stake. AAL stock had gained about 6% in premarket trading .
In a regulatory filing released by American, Qatar's proposed purchase of 10% of the airline's shares equals a roughly $808 million investment. This interest in American followed a conversation between the two companies' CEOs, a discussion initiated by Akbar Al Baker, the chief executive of Qatar.
Qatar has filed under the Hart-Scott-Rodino (HSR) Act, and submitted the appropriate filings; the company said it has plans to make its stock purchase on the open market.
"The proposed investment by Qatar Airways was not solicited by American Airlines and would in no way change the company's board composition, governance, management or strategic direction," said American. The company stated that it will respond to the offer "in due course."
The U.S. airline giant also added in its regulatory filing that anyone who intends to buy over 4.75% of the company must gain board approval, but it has yet to receive any such request. And, American noted that there are foreign ownership laws that limit the percentage amount of foreign voting interest to 24.9%.
CNBC notes that this offer is somewhat shocking, as American's CEO Doug Parker has not shied away from criticizing Gulf carriers like Qatar in the past, "arguing they receive subsidies [that] have potentially hurt U.S. carriers as a result."
But American made sure to assure investors of its commitment to fair competition, saying the offer "also does not alter American Airlines' conviction on the need to enforce the Open Skies agreements with the United Arab Emirates and the nation of Qatar and ensure fair competition with Gulf carriers, including Qatar Airways," said the airline.
AAL is currently a #3 (Hold) on the Zacks Rank, with a VGM score of 'A.' Shares of American have gained about 4.6% year-to-date.
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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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On Thursday, shares of American Airlines AAL are moving higher, up about 1.08% in late-morning trading after the company said it had recently received an unsolicited offer from Qatar Airways, the Middle Eastern country's state-owned airline, to buy as much as a 10% stake. AAL stock had gained about 6% in premarket trading . AAL is currently a #3 (Hold) on the Zacks Rank, with a VGM score of 'A.'
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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. On Thursday, shares of American Airlines AAL are moving higher, up about 1.08% in late-morning trading after the company said it had recently received an unsolicited offer from Qatar Airways, the Middle Eastern country's state-owned airline, to buy as much as a 10% stake. AAL stock had gained about 6% in premarket trading .
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On Thursday, shares of American Airlines AAL are moving higher, up about 1.08% in late-morning trading after the company said it had recently received an unsolicited offer from Qatar Airways, the Middle Eastern country's state-owned airline, to buy as much as a 10% stake. AAL stock had gained about 6% in premarket trading . AAL is currently a #3 (Hold) on the Zacks Rank, with a VGM score of 'A.'
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On Thursday, shares of American Airlines AAL are moving higher, up about 1.08% in late-morning trading after the company said it had recently received an unsolicited offer from Qatar Airways, the Middle Eastern country's state-owned airline, to buy as much as a 10% stake. AAL stock had gained about 6% in premarket trading . AAL is currently a #3 (Hold) on the Zacks Rank, with a VGM score of 'A.'
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7484.0
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2017-06-22 00:00:00 UTC
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Qatar Airways Wants a 10% Stake in American Airlines Group Inc (AAL)
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AAL
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https://www.nasdaq.com/articles/qatar-airways-wants-a-10-stake-in-american-airlines-group-inc-aal-2017-06-22
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Qatar Airways is looking to acquire a 10% stake in American Airlines Group Inc (NASDAQ: AAL ).
Source: Oliver Holzbauer via Flickr
Qatar Airways made its intentions clear in a filing with the U.S. Securities and Exchange Commission. The company has also been open with American Airlines Group Inc about acquiring the stake. It plans to do so by purchasing AAL stock on the open market.
While Qatar Airways wants that 10% stake in American Airlines Group Inc, there is no guarantee it will get it. The acquisition of the shares would first need approval from AAL's board. The deal will also require approval from Department of Justice. The move comes as the state-owned airline looks to expand its presence in the United States.
American Airlines Group Inc, and other airlines in the United States, haven't been happy with Qatar Airways and other Persian Gulf airlines recently. They claim that the airlines are using subsidies from their governments to operate. This would breach the Open Skies agreement and AAL is seeking the Trump administration's aide in stopping it, reports The New York Times .
The 10 Best Stocks to Buy for the Next Decade
If Qatar Airways is able to take a 10% stake in American Airlines Group Inc, it would make it one of the largest investors in the company . The move to acquire a stake in a rival from another country matches previous efforts made by the airline. It has obtained stakes in International Consolidated Airlines Group , Meridiana and LATAM Airlines Group SA (ADR) (NYSE: LTM ) over the last few years.
AAL stock was up 1% as of Thursday morning.
More From InvestorPlace
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As of this writing, William White did not hold a position in any of the aforementioned securities.
The post Qatar Airways Wants a 10% Stake in American Airlines Group Inc (AAL) 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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This would breach the Open Skies agreement and AAL is seeking the Trump administration's aide in stopping it, reports The New York Times . InvestorPlace - Stock Market News, Stock Advice & Trading Tips Qatar Airways is looking to acquire a 10% stake in American Airlines Group Inc (NASDAQ: AAL ). It plans to do so by purchasing AAL stock on the open market.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Qatar Airways is looking to acquire a 10% stake in American Airlines Group Inc (NASDAQ: AAL ). The post Qatar Airways Wants a 10% Stake in American Airlines Group Inc (AAL) appeared first on InvestorPlace . It plans to do so by purchasing AAL stock on the open market.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Qatar Airways is looking to acquire a 10% stake in American Airlines Group Inc (NASDAQ: AAL ). It plans to do so by purchasing AAL stock on the open market. The acquisition of the shares would first need approval from AAL's board.
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips Qatar Airways is looking to acquire a 10% stake in American Airlines Group Inc (NASDAQ: AAL ). It plans to do so by purchasing AAL stock on the open market. The acquisition of the shares would first need approval from AAL's board.
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7485.0
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2017-06-22 00:00:00 UTC
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The Economic World Is Upside-Down -- Here's How I'm Profiting
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https://www.nasdaq.com/articles/economic-world-upside-down-heres-how-im-profiting-2017-06-22
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Compared to the past, there's something fundamentally different about the challenges central banks face today -- further proof that we're in uncharted economic waters.
Low interest rates, even negative rates in some countries, are a prime example. A couple of years ago, a chart of interest rates over the past 5,000 years began to circulate. One version of that chart, shown below, highlights that rates fell to a nearly 400-year low in the Great Recession.
I don't believe this is the worst economy in history, but I am seeing more and more indicators that this is an unprecedented economy. Within the past few years, we have seen many longstanding economic relationships change. Among them is the number of unfilled jobs. Historically, we've come to expect that there will be more job seekers than jobs. That relationship changed in 2015.
Now, there are more job openings (the blue line in the chart above) than jobs (the red line). In theory, this should lead to higher wages and inflation, but that isn't happening right now. That poses a tough question for the Federal Reserve when it comes to interest rates. Should they raise rates, an action that has usually been taken to keep inflation low, even when there is no sign of inflation? So far, that's been the case.
Even under the best circumstances, the Fed has a tough job. Right now, it's even tougher because so much is changing. Ten years ago, economists could have argued negative interest rates were impossible. Five years ago, economists would have argued there should always be more new hires than job openings because that's the way the jobs market works. Now, the charts show both of those arguments to be wrong.
I believe the Fed understands the economy is changing, and they're doing their best to understand what's different this time. Investors also need to understand markets change. In particular, the prospects of companies and even entire industries can change. We're seeing positive change in a number of industries right now, but one especially is standing out to me.
All Of A Sudden, Airlines Are Great Stocks To Own
Airlines, as a group, are just now breaking above their 2000 highs. In the past, the industry has suffered for a number of reasons. The primary reason was that management would engage in destructive price wars and buy new aircraft whenever business happened to pick up. It seemed that the industry failed to follow any type of long-term plan. The chart below shows that the industry has turned substantially higher in the past few years.
Airline stock prices now seem to be undervaluing the future. This makes sense -- investors tend to anchor their perceptions on what they saw in the past. Although airlines have done well in the past few years, investors have been waiting for proof that management really is focused on the long term. The chart above shows the industry is now reaching new highs, an indication that investors finally appear to be convinced.
Warren Buffett is among the investors who are bullish on airlines. In the past year, he has invested nearly $10 billion in the industry. This marked a significant turnaround in his thinking compared to 2002, when he said, "If a capitalist had been present at Kitty Hawk back in the early 1900s, he should have shot Orville Wright. He would have saved his progeny money." Now, he has invested billions in the largest airlines.
Buffett purchased billions of dollars' worth of stock in four airlines, investing $2.1 billion in American, $2.2 billion in United, $2.4 billion in Southwest and $3 billion in Delta. He's betting on the industry rather than the individual management teams. This is a break from his usual process, which involves identifying a market leader and taking a big stake in that company. His decision to invest in all four major airlines indicates he didn't find much to differentiate the companies from each other.
I agree with Buffett that all of the airlines offer value and all are worth considering as investments. This will be the case until investors re-anchor their positions on the industry. Eventually, investors will recognize that the companies are profitable and capable of delivering steady growth. When that happens, the price-to-earnings (P/E) ratios of the industry will rise. Until then, value investors should be accumulating positions.
Generate 4.3% And Get The Chance To Buy AAL At An 11.3% Discount
All of the major airlines are undervalued, including the stock I recently recommended to my premium Income Trader readers: American Airlines Group (NYSE: AAL ) .
AAL is currently trading with a P/E ratio of about 12 based on its earnings over the past 12 months. Looking ahead, analysts expect the company to report earnings per share ( EPS ) of $4.78 for this year and $5.39 next year. The stock is priced at just 10 times this year's estimated earnings. AAL offers deep value in a market that is largely overvalued.
The same analysis can be done for any of the major airlines, as a variety of measurements all point to undervaluation. Because of that, when airlines are on my list of potential trades, I focus on the trade itself rather than the company. I search for the largest reward and least risk among the major airlines. I zeroed in on AAL because it is usually among the last companies in the industry to report earnings.
For the purposes of my newsletter, that means July options should expire before the earnings are released, decreasing the risk on the trade.
If our trade works as planned, we'll generate a quick 4.3% in income. And even if we're wrong, we'll get the chance to buy AAL at an 11.3% discount to recent prices.
Talk about a win-win.
That's the benefit to using my conservative options strategy in Income Trader . Rather than recognizing the value in AAL and simply buying shares, we hedge our risk even further by TELLING the market what we'd like to pay for the stock (less than recent prices). And for our trouble, we earn income in the process.
If you want to know how to do this, I've got everything you need to get started. Simply follow this link to learn more .
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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.
© Copyright 2001-2016 StreetAuthority, LLC. All Rights Reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Rather than recognizing the value in AAL and simply buying shares, we hedge our risk even further by TELLING the market what we'd like to pay for the stock (less than recent prices). Generate 4.3% And Get The Chance To Buy AAL At An 11.3% Discount All of the major airlines are undervalued, including the stock I recently recommended to my premium Income Trader readers: American Airlines Group (NYSE: AAL ) . AAL is currently trading with a P/E ratio of about 12 based on its earnings over the past 12 months.
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Generate 4.3% And Get The Chance To Buy AAL At An 11.3% Discount All of the major airlines are undervalued, including the stock I recently recommended to my premium Income Trader readers: American Airlines Group (NYSE: AAL ) . AAL is currently trading with a P/E ratio of about 12 based on its earnings over the past 12 months. AAL offers deep value in a market that is largely overvalued.
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Generate 4.3% And Get The Chance To Buy AAL At An 11.3% Discount All of the major airlines are undervalued, including the stock I recently recommended to my premium Income Trader readers: American Airlines Group (NYSE: AAL ) . AAL is currently trading with a P/E ratio of about 12 based on its earnings over the past 12 months. AAL offers deep value in a market that is largely overvalued.
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Generate 4.3% And Get The Chance To Buy AAL At An 11.3% Discount All of the major airlines are undervalued, including the stock I recently recommended to my premium Income Trader readers: American Airlines Group (NYSE: AAL ) . AAL is currently trading with a P/E ratio of about 12 based on its earnings over the past 12 months. AAL offers deep value in a market that is largely overvalued.
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7486.0
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2017-06-20 00:00:00 UTC
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The Zacks Analyst Blog Highlights: JetBlue Airways, American Airlines Group, Delta Air Lines, Southwest Airlines and Spirit Airlines
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-jetblue-airways-american-airlines-group-delta-air-lines
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For Immediate Release
Chicago, IL - June 20, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include JetBlue Airways (NASDAQ: JBLU- Free Report ), American Airlines Group (NASDAQ: AAL- Free Report ), Delta Air Lines (NYSE: DAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and Spirit Airlines (NASDAQ: SAVE- Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Monday's Analyst Blog:
Will New Cuba Travel Policy Hurt U.S. Airlines?
On Jun 16, President Trump announced some changes to current U.S. policy on Cuba, which were put into action by his predecessor Barack Obama. The new policy is in line with Trump's promise during the campaigning phase. In fact, Trump had reportedly tweeted in November last year that he might terminate the deal, inked by Obama, in the event of Cuba not doing enough for its people.
Even though, he did not scrap the entire deal, the President announced certain changes in inline with his "America First" principle. Moving ahead, the new administration aims to restrict the flow of US money flowing into the oppressive Cuban military regime. Also, the new policy is dedicated to betterment of the Cuban people by pressurizing the island's government to broaden the private sector and reduce the military's interference in every profitable unit of the country.
In fact, to keep the Cuban military at bay, the President's policy aims to do away with travel directed toward benefitting the military, intelligence or security services of the island nation. Under the new restrictions, travel to Cuba on an individual basis would not be allowed. Even though individual travel has been banned, group travel is allowed.
A Brief Flashback
In 2014, President Obama had called for the restoration of diplomatic ties with Cuba after more than 50 years. As part of that process, travel restrictions were eased. Subsequently, many U.S. airlines started operating commercial scheduled flights to Cuba.
In Jun 2016, the U.S. Department of Transportation authorized six U.S.-based carriers to operate scheduled flights to nine second-tier Cuban cities. The first scheduled commercial flight to Cuba from the U.S. was operated by JetBlue Airways (NASDAQ: JBLU- Free Report ).
JetBlue Airways carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Notably, the approval to fly to Havana came two months later in August. The Havana routes were highly in demand among the US carriers as they collectively applied for the approval to operate nearly 60 flights to Havana on a daily basis. The erstwhile agreement with Obama allowed for only 20 daily roundtrip flights between the nations.
Would Individual Travel Ban Hurt Airlines?
Currently, the likes of American Airlines Group (NASDAQ: AAL- Free Report ), Delta Air Lines (NYSE: DAL- Free Report ) and Southwest Airlines (NYSE: LUV- Free Report ) operate scheduled commercial flights to Cuba. But following the revised order on Cuba, the carriers have adopted a wait and watch policy regarding their operations to the nation.
Airline heavyweights like Delta Air Lines and American Airlines have reportedly said that while their existing operations to the nation would continue, they would abide by any changes that might take place following the announcement of the new policy.
We note that the travel demand to Cuba had fallen short of expectations. Consequently, the likes of American Airlines trimmed their services to the nation. Lower-than-expected demand also caused the likes of Spirit Airlines (NASDAQ: SAVE- Free Report ) and Frontier Airlines to terminate flights there. Despite this factor, the new policy to ban individual travel is likely to hurt the top line of the US carriers operating in the country to some extent.
In fact, a recent Reuters report had suggested that cruise operators and airlines in the US could lose approximately $712 million in revenues on an annual basis, if Obama's policy was entirely reversed. While the entire policy has not been consigned to flames by the new US government, the prohibition on individual travel to the country might still shrink the revenues of carriers (through lower travel demand) operating in Cuba, a popular tourist destination.
However, only time will tell the extent to which revenues are actually hurt. Consequently, we expect investor focus to remain on the issue, going forward.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Get the full Report on JBLU - FREE
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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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JetBlue Airways Corporation (JBLU): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Southwest Airlines Company (LUV): Free Stock Analysis Report
Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Stocks recently featured in the blog include JetBlue Airways (NASDAQ: JBLU- Free Report ), American Airlines Group (NASDAQ: AAL- Free Report ), Delta Air Lines (NYSE: DAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and Spirit Airlines (NASDAQ: SAVE- Free Report ). Currently, the likes of American Airlines Group (NASDAQ: AAL- Free Report ), Delta Air Lines (NYSE: DAL- Free Report ) and Southwest Airlines (NYSE: LUV- Free Report ) operate scheduled commercial flights to Cuba. Get the full Report on JBLU - FREE Get the full Report on AAL - FREE Get the full Report on DAL - FREE Get the full Report on LUV - FREE Get the full Report on SAVE - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Stocks recently featured in the blog include JetBlue Airways (NASDAQ: JBLU- Free Report ), American Airlines Group (NASDAQ: AAL- Free Report ), Delta Air Lines (NYSE: DAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and Spirit Airlines (NASDAQ: SAVE- Free Report ). Currently, the likes of American Airlines Group (NASDAQ: AAL- Free Report ), Delta Air Lines (NYSE: DAL- Free Report ) and Southwest Airlines (NYSE: LUV- Free Report ) operate scheduled commercial flights to Cuba. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include JetBlue Airways (NASDAQ: JBLU- Free Report ), American Airlines Group (NASDAQ: AAL- Free Report ), Delta Air Lines (NYSE: DAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and Spirit Airlines (NASDAQ: SAVE- Free Report ). Get the full Report on JBLU - FREE Get the full Report on AAL - FREE Get the full Report on DAL - FREE Get the full Report on LUV - FREE Get the full Report on SAVE - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Spirit Airlines, Inc. (SAVE): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include JetBlue Airways (NASDAQ: JBLU- Free Report ), American Airlines Group (NASDAQ: AAL- Free Report ), Delta Air Lines (NYSE: DAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ) and Spirit Airlines (NASDAQ: SAVE- Free Report ). Currently, the likes of American Airlines Group (NASDAQ: AAL- Free Report ), Delta Air Lines (NYSE: DAL- Free Report ) and Southwest Airlines (NYSE: LUV- Free Report ) operate scheduled commercial flights to Cuba. Get the full Report on JBLU - FREE Get the full Report on AAL - FREE Get the full Report on DAL - FREE Get the full Report on LUV - FREE Get the full Report on SAVE - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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7487.0
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2017-06-20 00:00:00 UTC
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Saba Capital Management, L.P. Buys Clough Global Opportunities Fund, General American ...
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AAL
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https://www.nasdaq.com/articles/saba-capital-management-lp-buys-clough-global-opportunities-fund-general-american-2017-2
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Saba Capital Management, L.P.
New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE,
Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV,
Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO,
Sold Out:PPT, TSLA, BGX, DSL, EVG,
For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P.
These are the top 5 holdings of Saba Capital Management, L.P.
Wells Fargo Multi-Sector Income Fund ( ERC ) - 6,150,514 shares, 9.33% of the total portfolio.
First Trust High Income Long/Short Fund ( FSD ) - 4,608,568 shares, 8.73% of the total portfolio.
American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio.
Clough Global Opportunities Fund ( GLO ) - 5,454,549 shares, 6.39% of the total portfolio. Shares added by 186.35%
Alpine Total Dynamic Dividend Fund ( AOD ) - 5,567,362 shares, 5.23% of the total portfolio. Shares added by 52.25%
New Purchase: JC Penney Co Inc (JCP)
Saba Capital Management, L.P. initiated holdings in JC Penney Co Inc. The purchase prices were between $5.5 and $8.47, with an estimated average price of $6.61. The stock is now traded at around $4.61. The impact to the portfolio due to this purchase was 0.99%. The holdings were 1,409,000 shares as of 2017-03-31.
New Purchase: American Airlines Group Inc ( AAL )
Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc. The purchase prices were between $40.35 and $49.59, with an estimated average price of $45.24. The stock is now traded at around $48.63. The impact to the portfolio due to this purchase was 0.97%. The holdings were 201,408 shares as of 2017-03-31.
New Purchase: Energy XXI Gulf Coast Inc (EXXI)
Saba Capital Management, L.P. initiated holdings in Energy XXI Gulf Coast Inc. The purchase prices were between $24 and $32.5, with an estimated average price of $29.44. The stock is now traded at around $20.51. The impact to the portfolio due to this purchase was 0.89%. The holdings were 260,601 shares as of 2017-03-31.
New Purchase: Consol Energy Inc (CNX)
Saba Capital Management, L.P. initiated holdings in Consol Energy Inc. The purchase prices were between $14.92 and $19.54, with an estimated average price of $16.96. The stock is now traded at around $14.02. The impact to the portfolio due to this purchase was 0.41%. The holdings were 215,164 shares as of 2017-03-31.
New Purchase: SUPERVALU Inc (SVU)
Saba Capital Management, L.P. initiated holdings in SUPERVALU Inc. The purchase prices were between $3.26 and $4.91, with an estimated average price of $3.9. The stock is now traded at around $3.18. The impact to the portfolio due to this purchase was 0.37%. The holdings were 848,860 shares as of 2017-03-31.
New Purchase: Avon Products Inc (AVP)
Saba Capital Management, L.P. initiated holdings in Avon Products Inc. The purchase prices were between $4.21 and $5.93, with an estimated average price of $4.99. The stock is now traded at around $3.51. The impact to the portfolio due to this purchase was 0.35%. The holdings were 694,224 shares as of 2017-03-31.
Added: Clough Global Opportunities Fund ( GLO )
Saba Capital Management, L.P. added to the holdings in Clough Global Opportunities Fund by 186.35%. The purchase prices were between $8.89 and $10.29, with an estimated average price of $9.76. The stock is now traded at around $10.58. The impact to the portfolio due to this purchase was 4.16%. The holdings were 5,454,549 shares as of 2017-03-31.
Added: General American Investors Inc. (GAM)
Saba Capital Management, L.P. added to the holdings in General American Investors Inc. by 358.52%. The purchase prices were between $31.12 and $33.85, with an estimated average price of $32.83. The stock is now traded at around $34.28. The impact to the portfolio due to this purchase was 3.52%. The holdings were 1,180,791 shares as of 2017-03-31.
Added: Alpine Total Dynamic Dividend Fund ( AOD )
Saba Capital Management, L.P. added to the holdings in Alpine Total Dynamic Dividend Fund by 52.25%. The purchase prices were between $7.58 and $8.32, with an estimated average price of $8.07. The stock is now traded at around $8.82. The impact to the portfolio due to this purchase was 1.79%. The holdings were 5,567,362 shares as of 2017-03-31.
Added: Valeant Pharmaceuticals International Inc (VRX)
Saba Capital Management, L.P. added to the holdings in Valeant Pharmaceuticals International Inc by 132.38%. The purchase prices were between $10.64 and $16.86, with an estimated average price of $13.76. The stock is now traded at around $13.31. The impact to the portfolio due to this purchase was 1.66%. The holdings were 2,315,900 shares as of 2017-03-31.
Added: Hertz Global Holdings Inc (HTZ)
Saba Capital Management, L.P. added to the holdings in Hertz Global Holdings Inc by 446.79%. The purchase prices were between $17.25 and $23.63, with an estimated average price of $20.88. The stock is now traded at around $9.21. The impact to the portfolio due to this purchase was 0.82%. The holdings were 501,433 shares as of 2017-03-31.
Added: Clough Global Equity Fund (GLQ)
Saba Capital Management, L.P. added to the holdings in Clough Global Equity Fund by 26.18%. The purchase prices were between $11.15 and $12.64, with an estimated average price of $11.88. The stock is now traded at around $12.59. The impact to the portfolio due to this purchase was 0.74%. The holdings were 2,473,734 shares as of 2017-03-31.
Sold Out: Putnam Premier Income Trust (PPT)
Saba Capital Management, L.P. sold out the holdings in Putnam Premier Income Trust. The sale prices were between $4.93 and $5.36, with an estimated average price of $5.21.
Sold Out: Tesla Inc (TSLA)
Saba Capital Management, L.P. sold out the holdings in Tesla Inc. The sale prices were between $216.99 and $280.98, with an estimated average price of $253.78.
Sold Out: Blackstone GSO Long Short Credit Income Fund (BGX)
Saba Capital Management, L.P. sold out the holdings in Blackstone GSO Long Short Credit Income Fund. The sale prices were between $15.69 and $16.44, with an estimated average price of $16.15.
Sold Out: DoubleLine Income Solutions Fund (DSL)
Saba Capital Management, L.P. sold out the holdings in DoubleLine Income Solutions Fund. The sale prices were between $19 and $20.42, with an estimated average price of $19.78.
Sold Out: Eaton Vance Short Diversified Income Fund Duration (EVG)
Saba Capital Management, L.P. sold out the holdings in Eaton Vance Short Diversified Income Fund Duration. The sale prices were between $13.76 and $14.15, with an estimated average price of $13.94.
Reduced: Allergan PLC (AGN)
Saba Capital Management, L.P. reduced to the holdings in Allergan PLC by 87.01%. The sale prices were between $210.8 and $249.32, with an estimated average price of $232.88. The stock is now traded at around $239.76. The impact to the portfolio due to this sale was -3.91%. Saba Capital Management, L.P. still held 20,203 shares as of 2017-03-31.
Reduced: Franklin Templeton Ltd Duration Inc Tr (FTF)
Saba Capital Management, L.P. reduced to the holdings in Franklin Templeton Ltd Duration Inc Tr by 57.47%. The sale prices were between $11.88 and $12.27, with an estimated average price of $12.09. The stock is now traded at around $11.97. The impact to the portfolio due to this sale was -3.84%. Saba Capital Management, L.P. still held 1,715,080 shares as of 2017-03-31.
Reduced: MFS Charter Income Trust (MCR)
Saba Capital Management, L.P. reduced to the holdings in MFS Charter Income Trust by 52.5%. The sale prices were between $8.31 and $8.74, with an estimated average price of $8.57. The stock is now traded at around $8.70. The impact to the portfolio due to this sale was -0.87%. Saba Capital Management, L.P. still held 673,976 shares as of 2017-03-31.
Reduced: Morgan Stanley Emerging Markets Domestic Debt Fund (EDD)
Saba Capital Management, L.P. reduced to the holdings in Morgan Stanley Emerging Markets Domestic Debt Fund by 67.02%. The sale prices were between $7.15 and $7.81, with an estimated average price of $7.57. The stock is now traded at around $8.17. The impact to the portfolio due to this sale was -0.73%. Saba Capital Management, L.P. still held 363,485 shares as of 2017-03-31.
Reduced: MFS Multimarket Income Trust (MMT)
Saba Capital Management, L.P. reduced to the holdings in MFS Multimarket Income Trust by 58.07%. The sale prices were between $5.93 and $6.23, with an estimated average price of $6.1. The stock is now traded at around $6.18. The impact to the portfolio due to this sale was -0.6%. Saba Capital Management, L.P. still held 516,508 shares as of 2017-03-31.
Reduced: MFS Intermediate High Income Fund (CIF)
Saba Capital Management, L.P. reduced to the holdings in MFS Intermediate High Income Fund by 92.56%. The sale prices were between $2.54 and $2.66, with an estimated average price of $2.6. The stock is now traded at around $2.83. The impact to the portfolio due to this sale was -0.39%. Saba Capital Management, L.P. still held 88,302 shares as of 2017-03-31.
Warning! GuruFocus has detected 2 Warning Signs with GLO. Click here to check it out.
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This article first appeared on GuruFocus .
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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Saba Capital Management, L.P. New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE, Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV, Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO, Sold Out:PPT, TSLA, BGX, DSL, EVG, For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P. American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio. New Purchase: American Airlines Group Inc ( AAL ) Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc.
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Saba Capital Management, L.P. New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE, Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV, Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO, Sold Out:PPT, TSLA, BGX, DSL, EVG, For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P. American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio. New Purchase: American Airlines Group Inc ( AAL ) Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc.
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Saba Capital Management, L.P. New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE, Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV, Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO, Sold Out:PPT, TSLA, BGX, DSL, EVG, For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P. American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio. New Purchase: American Airlines Group Inc ( AAL ) Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc.
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Saba Capital Management, L.P. New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE, Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV, Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO, Sold Out:PPT, TSLA, BGX, DSL, EVG, For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P. American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio. New Purchase: American Airlines Group Inc ( AAL ) Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc.
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7488.0
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2017-06-20 00:00:00 UTC
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Notable Tuesday Option Activity: CMI, AAL, LVLT
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AAL
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https://www.nasdaq.com/articles/notable-tuesday-option-activity-cmi-aal-lvlt-2017-06-20
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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 Cummins, Inc. (Symbol: CMI), where a total volume of 6,091 contracts has been traded thus far today, a contract volume which is representative of approximately 609,100 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 47.2% of CMI's average daily trading volume over the past month, of 1.3 million shares. Particularly high volume was seen for the $150 strike put option expiring August 18, 2017 , with 5,002 contracts trading so far today, representing approximately 500,200 underlying shares of CMI. Below is a chart showing CMI's trailing twelve month trading history, with the $150 strike highlighted in orange:
American Airlines Group Inc (Symbol: AAL) options are showing a volume of 23,699 contracts thus far today. That number of contracts represents approximately 2.4 million underlying shares, working out to a sizeable 43.6% of AAL's average daily trading volume over the past month, of 5.4 million shares. Particularly high volume was seen for the $49.50 strike call option expiring July 21, 2017 , with 10,668 contracts trading so far today, representing approximately 1.1 million underlying shares of AAL. Below is a chart showing AAL's trailing twelve month trading history, with the $49.50 strike highlighted in orange:
And Level 3 Communications, Inc. (Symbol: LVLT) options are showing a volume of 10,838 contracts thus far today. That number of contracts represents approximately 1.1 million underlying shares, working out to a sizeable 42.3% of LVLT's average daily trading volume over the past month, of 2.6 million shares. Particularly high volume was seen for the $62.50 strike call option expiring January 19, 2018 , with 10,000 contracts trading so far today, representing approximately 1.0 million underlying shares of LVLT. Below is a chart showing LVLT's trailing twelve month trading history, with the $62.50 strike highlighted in orange:
For the various different available expirations for CMI options , AAL options , or LVLT 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 $49.50 strike call option expiring July 21, 2017 , with 10,668 contracts trading so far today, representing approximately 1.1 million underlying shares of AAL. Below is a chart showing CMI's trailing twelve month trading history, with the $150 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 23,699 contracts thus far today. That number of contracts represents approximately 2.4 million underlying shares, working out to a sizeable 43.6% of AAL's average daily trading volume over the past month, of 5.4 million shares.
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That number of contracts represents approximately 2.4 million underlying shares, working out to a sizeable 43.6% of AAL's average daily trading volume over the past month, of 5.4 million shares. Below is a chart showing AAL's trailing twelve month trading history, with the $49.50 strike highlighted in orange: And Level 3 Communications, Inc. (Symbol: LVLT) options are showing a volume of 10,838 contracts thus far today. Below is a chart showing CMI's trailing twelve month trading history, with the $150 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 23,699 contracts thus far today.
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That number of contracts represents approximately 2.4 million underlying shares, working out to a sizeable 43.6% of AAL's average daily trading volume over the past month, of 5.4 million shares. Below is a chart showing CMI's trailing twelve month trading history, with the $150 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 23,699 contracts thus far today. Particularly high volume was seen for the $49.50 strike call option expiring July 21, 2017 , with 10,668 contracts trading so far today, representing approximately 1.1 million underlying shares of AAL.
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Below is a chart showing LVLT's trailing twelve month trading history, with the $62.50 strike highlighted in orange: For the various different available expirations for CMI options , AAL options , or LVLT options , visit StockOptionsChannel.com. Below is a chart showing CMI's trailing twelve month trading history, with the $150 strike highlighted in orange: American Airlines Group Inc (Symbol: AAL) options are showing a volume of 23,699 contracts thus far today. That number of contracts represents approximately 2.4 million underlying shares, working out to a sizeable 43.6% of AAL's average daily trading volume over the past month, of 5.4 million shares.
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7489.0
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2017-06-19 00:00:00 UTC
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3 Airline Stocks to Buy Before They Take Off
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AAL
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https://www.nasdaq.com/articles/3-airline-stocks-to-buy-before-they-take-off-2017-06-19
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InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Last week's mild bout of profit-taking was just what the doctor ordered for stocks in need of a breather. And, I might add, the list of overbought stocks needing a reprieve was quite large, what with so many big winners this year. Airline stocks are a perfect example. Many have flown to new 52-week highs, some have even reached record highs.
Source: Shutterstock
But chasing stocks at dizzying heights is never as satisfying as scooping them up at a discount. You see, savvy traders are loath to chase.
Instead, they lie in wait until a multi-day retreat ushers shares to a lower-risk entry point. These pullbacks bring stock prices back to support levels, which are altogether more attractive to deploy new trades from.
10 Stocks Ready for a BIG Move - in Either Direction
And that is exactly what's happened with airline stocks. Their uptrends remain firm and last week's retracement is providing an excellent buy-the-dip opportunity. Check out these three airline stocks ready for takeoff.
Airline Stocks to Buy: Delta Air Lines (DAL)
Click to Enlarge Source: OptionsAnalytix
Delta Air Lines, Inc. (NYSE: DAL ) shares are arguably the strongest of today's trio. Last week, DAL stock notched a new record high at $53.57.
Its uptrend boasts rising 20-day, 50-day and 200-day moving averages. And it's increasing in momentum as suggested by the RSI confirmation signal generated last week.
The recent retracement was shallow and lacked any significant signs of distribution. The candlestick formation of DAL's pullback was also quite clean.
Thursday's doji candle was followed up by a bullish reversal candle on Friday, illustrating a shift in control from bears to bulls.
To capitalize on Delta's next ascent, buy the Aug $50 calls for $3.50.
Airline Stocks to Buy: American Airlines (AAL)
Click to Enlarge Source: OptionsAnalytix
The action in American Airlines Group Inc (NASDAQ: AAL ) shares have been similar to DAL. Which, on a side note, should not be surprising. Stocks in the same industry virtually always develop patterns of a similar nature.
While AAL stock didn't score a new record high, it did notch a new 52-week high during its latest ascent. Last week's retreat carried the stock back to its rising 20-day moving average, which is a logical spot for support to form.
Like it's predecessor, AAL also saw RSI confirmation on its previous upswing, signaling its trend is increasing in momentum.
10 Great Stocks to Buy You Didn't Know Existed
If AAL pops above Friday's high ($49.45), buy the Aug $49 call for $2.60.
Airline Stocks to Buy: Alaska Air Group (ALK)
Click to Enlarge Source: OptionsAnalytix
Our final airliner is Alaska Air Group, Inc. (NYSE: ALK ). Unlike DAL and AAL, ALK stock's uptrend is arguably in its infancy. It just recently popped back above its 50-day moving average and formed a higher pivot high.
There are two ways to view this. Either ALK is the weakest stock of the bunch and destined to continue its underperformance. Or, ALK is due to play catch-up and will eventually tag its 52-week high near $100.
I'd argue for the latter, but either way, the stock has a solid pullback setup here.
Buy the Aug ALK $90 call for $3. ALK options are illiquid, so limit orders are a must.
At the time of this writing, Tyler Craig had no positions in any of the aforementioned securities.
The post 3 Airline Stocks to Buy Before They Take Off 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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Airline Stocks to Buy: American Airlines (AAL) Click to Enlarge Source: OptionsAnalytix The action in American Airlines Group Inc (NASDAQ: AAL ) shares have been similar to DAL. While AAL stock didn't score a new record high, it did notch a new 52-week high during its latest ascent. Like it's predecessor, AAL also saw RSI confirmation on its previous upswing, signaling its trend is increasing in momentum.
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Airline Stocks to Buy: American Airlines (AAL) Click to Enlarge Source: OptionsAnalytix The action in American Airlines Group Inc (NASDAQ: AAL ) shares have been similar to DAL. While AAL stock didn't score a new record high, it did notch a new 52-week high during its latest ascent. Like it's predecessor, AAL also saw RSI confirmation on its previous upswing, signaling its trend is increasing in momentum.
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Airline Stocks to Buy: American Airlines (AAL) Click to Enlarge Source: OptionsAnalytix The action in American Airlines Group Inc (NASDAQ: AAL ) shares have been similar to DAL. While AAL stock didn't score a new record high, it did notch a new 52-week high during its latest ascent. Like it's predecessor, AAL also saw RSI confirmation on its previous upswing, signaling its trend is increasing in momentum.
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Airline Stocks to Buy: American Airlines (AAL) Click to Enlarge Source: OptionsAnalytix The action in American Airlines Group Inc (NASDAQ: AAL ) shares have been similar to DAL. While AAL stock didn't score a new record high, it did notch a new 52-week high during its latest ascent. Like it's predecessor, AAL also saw RSI confirmation on its previous upswing, signaling its trend is increasing in momentum.
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7490.0
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2017-06-16 00:00:00 UTC
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Can FedEx (FDX) Spring a Positive Surprise in Q4 Earnings?
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AAL
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https://www.nasdaq.com/articles/can-fedex-fdx-spring-a-positive-surprise-in-q4-earnings-2017-06-16
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nan
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FedEx CorporationFDX is slated to release fourth-quarter fiscal 2017 results after the closing bell on Jun 20.
FedEx - a leading player in global express delivery services - has delivered a negative surprise of 10.65% last quarter. The company's earnings per share (on an adjusted basis) of $2.35 were well short of the Zacks Consensus Estimate of $2.63. Also, the bottom line declined year over year due to higher costs. However, quarterly revenues climbed 18.1% year over year and surpassed the Zacks Consensus Estimate.
Despite all the aforementioned pessimism, the FedEx stock has been performing well of late. Shares of FedEx have outperformed the Zacks categorized Transportation - Air Freight industry in the last one month. The stock has gained 12.28%, while the industry improved 8.83%, over the same period.
Zacks ESP: The Earnings ESP for FedEx is +0.77% as the Most Accurate estimate is pegged at $3.92, while the Zacks Consensus Estimate stands at $3.89. A favorable Zacks ESP serves as a meaningful and leading indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .
Zacks Rank: FedEx carries a Zacks Rank #3 (Hold). Please note that the stocks with Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates.
Meanwhile, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Factors at Play
After two successive earnings misses, the company now expects to perform strongly in the fiscal fourth quarter. It expects a margin of over 15% at its Ground unit in the fourth quarter of the fiscal, thereby driving the strong results, predicted for the final quarter of fiscal 2017.
The strong growth of e-commerce is also expected to aid results in the quarter. Moreover, FedEx's expanded product portfolio following the acquisition of TNT Express should aid results. During the quarter, FedEx launched flights connecting TNT's European air hub in Liège (Belgium) to the FedEx World Hub in Memphis (U.S.). Following this move, the TNT customers now have a direct access to the strong portfolio of FedEx services in both the U.S. and Canada. The company's efforts to reward shareholders through dividend payments and share buybacks are also worth appreciating.
However, headwinds like high costs might hurt the bottom line in the fiscal fourth quarter. We expect the company to provide a detailed guidance for fiscal 2018 in the conference call.
Other Stocks to Consider
Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases.
American Airlines has an Earnings ESP of +5.92% and a Zacks Rank #3. Alaska Air Group has an Earnings ESP of +3.32% and a Zacks Rank #3.
Canadian National Railway has an Earnings ESP of +6.38% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .
3 Top Picks to Ride the Hottest Tech Trend
Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy...
Last year, it was generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. Download Report with 3 Top Tech Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
Canadian National Railway Company (CNI): 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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Other Stocks to Consider Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. 3 Top Picks to Ride the Hottest Tech Trend Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy... Last year, it was generating $8 billion in global revenues.
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Other Stocks to Consider Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Other Stocks to Consider Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks ESP: The Earnings ESP for FedEx is +0.77% as the Most Accurate estimate is pegged at $3.92, while the Zacks Consensus Estimate stands at $3.89.
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Other Stocks to Consider Investors interested in the broader transportation sector may also consider American Airlines Group, Inc. AAL , Alaska Air Group, Inc. ALK and Canadian National Railway Company CNI , since our model shows that all these stocks possess the right combination of elements to post an earnings beat in their next releases. Click to get this free report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report Canadian National Railway Company (CNI): Free Stock Analysis Report FedEx Corporation (FDX): Free Stock Analysis Report To read this article on Zacks.com click here. Factors at Play After two successive earnings misses, the company now expects to perform strongly in the fiscal fourth quarter.
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7491.0
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2017-06-16 00:00:00 UTC
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Alaska Air Group (ALK) Lifts CASM View on Deal with Pilots
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AAL
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https://www.nasdaq.com/articles/alaska-air-group-alk-lifts-casm-view-on-deal-with-pilots-2017-06-16
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Alaska Air GroupALK , based in Seattle, WA, raised its forecast for a closely watched cost metric after pilots of Horizon Air, a subsidiary of Alaska Air Group, approved an amendment to the existing eight-year pay-related contract.
Pilots at Horizon Air who operates flights to more than 35 cities across the US, Canada and Mexico are represented by the International Brotherhood of Teamsters (IBT). Notably, following the amendment of the deal last month, compensation of the pilots (existing as well as new) has shot up significantly, implying toward a rise in labor costs. In fact, the carrier expects to incur a one-time cost approximately to the tune of approximately $9 million in the current year due to the ratification of deal.
Consequently, Alaska Air Group now expects cost per available seat mile or CASM (excluding fuel and other special items) in the range of 7.95 cents to 8 cents. The projected range is in fact an increase from the earlier guidance of 7.88 cents to 7.93 cents. We also note that the carrier raised the second-quarter forecast for fuel costs (economic) per gallon to $1.72 from $1.71. Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
The guidance for CASM has also been raised for full-year 2017. Due to the ratification, the company now expects the metric in the band of 8.02 cents to 8.07 cents (earlier guidance: 8 cents to 8.05 cents).
Moreover, we remind investors that total operating expenses (on a reported basis) had increased 50% year over year in the first quarter of 2017 primarily owing to the 33% rise in wages and benefits. Due to increased costs the bottom line had contracted 27.6%., Following the deal ratification and the subsequent rise in CASM view, we expect the bottom line to remain under pressure in the second quarter as well. As a result, the stock fell on Jun 15 following the news.
Price Performance
With its bottom line being hurt due to high costs, it is no surprise that Alaska Air Group has underperformed the Zacks categorized Transportation- Airline industry in the last three months. The stock has declined 5.3% against the industry's gain of 9% in the period.
We note that Alaska Air Group is not the only US carrier to be affected by higher labor costs. With labor deals in vogue in the airline space, it is natural that the costs are surging. In fact, this factor had not only hurt the bottom line of Alaska Air Group but other carriers like Delta Air Lines DAL , Southwest Airlines LUV and American Airlines Group AAL in the first quarter. The trend is most likely to continue in the second quarter as well.
3 Top Picks to Ride the Hottest Tech Trend
Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy...
Last year, it was generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. Download Report with 3 Top Tech 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
Southwest Airlines Company (LUV): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Alaska Air Group, Inc. (ALK): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 fact, this factor had not only hurt the bottom line of Alaska Air Group but other carriers like Delta Air Lines DAL , Southwest Airlines LUV and American Airlines Group AAL in the first quarter. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Pilots at Horizon Air who operates flights to more than 35 cities across the US, Canada and Mexico are represented by the International Brotherhood of Teamsters (IBT).
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In fact, this factor had not only hurt the bottom line of Alaska Air Group but other carriers like Delta Air Lines DAL , Southwest Airlines LUV and American Airlines Group AAL in the first quarter. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Due to increased costs the bottom line had contracted 27.6%., Following the deal ratification and the subsequent rise in CASM view, we expect the bottom line to remain under pressure in the second quarter as well.
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In fact, this factor had not only hurt the bottom line of Alaska Air Group but other carriers like Delta Air Lines DAL , Southwest Airlines LUV and American Airlines Group AAL in the first quarter. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Alaska Air GroupALK , based in Seattle, WA, raised its forecast for a closely watched cost metric after pilots of Horizon Air, a subsidiary of Alaska Air Group, approved an amendment to the existing eight-year pay-related contract.
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In fact, this factor had not only hurt the bottom line of Alaska Air Group but other carriers like Delta Air Lines DAL , Southwest Airlines LUV and American Airlines Group AAL in the first quarter. Click to get this free report Southwest Airlines Company (LUV): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Alaska Air Group, Inc. (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. Alaska Air GroupALK , based in Seattle, WA, raised its forecast for a closely watched cost metric after pilots of Horizon Air, a subsidiary of Alaska Air Group, approved an amendment to the existing eight-year pay-related contract.
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7492.0
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2017-06-15 00:00:00 UTC
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Saba Capital Management, L.P. Buys Clough Global Opportunities Fund, General American ...
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AAL
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https://www.nasdaq.com/articles/saba-capital-management-lp-buys-clough-global-opportunities-fund-general-american-2017-06
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nan
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Saba Capital Management, L.P.
New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE,
Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV,
Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO,
Sold Out:PPT, TSLA, BGX, DSL, EVG,
For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P.
These are the top 5 holdings of Saba Capital Management, L.P.
Wells Fargo Multi-Sector Income Fund ( ERC ) - 6,150,514 shares, 9.33% of the total portfolio.
First Trust High Income Long/Short Fund ( FSD ) - 4,608,568 shares, 8.73% of the total portfolio.
American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio.
Clough Global Opportunities Fund ( GLO ) - 5,454,549 shares, 6.39% of the total portfolio. Shares added by 186.35%
Alpine Total Dynamic Dividend Fund ( AOD ) - 5,567,362 shares, 5.23% of the total portfolio. Shares added by 52.25%
New Purchase: JC Penney Co Inc (JCP)
Saba Capital Management, L.P. initiated holdings in JC Penney Co Inc. The purchase prices were between $5.5 and $8.47, with an estimated average price of $6.61. The stock is now traded at around $4.87. The impact to the portfolio due to this purchase was 0.99%. The holdings were 1,409,000 shares as of 2017-03-31.
New Purchase: American Airlines Group Inc ( AAL )
Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc. The purchase prices were between $40.35 and $49.59, with an estimated average price of $45.24. The stock is now traded at around $48.97. The impact to the portfolio due to this purchase was 0.97%. The holdings were 201,408 shares as of 2017-03-31.
New Purchase: Energy XXI Gulf Coast Inc (EXXI)
Saba Capital Management, L.P. initiated holdings in Energy XXI Gulf Coast Inc. The purchase prices were between $24 and $32.5, with an estimated average price of $29.44. The stock is now traded at around $22.51. The impact to the portfolio due to this purchase was 0.89%. The holdings were 260,601 shares as of 2017-03-31.
New Purchase: Consol Energy Inc (CNX)
Saba Capital Management, L.P. initiated holdings in Consol Energy Inc. The purchase prices were between $14.92 and $19.54, with an estimated average price of $16.96. The stock is now traded at around $14.78. The impact to the portfolio due to this purchase was 0.41%. The holdings were 215,164 shares as of 2017-03-31.
New Purchase: SUPERVALU Inc (SVU)
Saba Capital Management, L.P. initiated holdings in SUPERVALU Inc. The purchase prices were between $3.26 and $4.91, with an estimated average price of $3.9. The stock is now traded at around $3.79. The impact to the portfolio due to this purchase was 0.37%. The holdings were 848,860 shares as of 2017-03-31.
New Purchase: Avon Products Inc (AVP)
Saba Capital Management, L.P. initiated holdings in Avon Products Inc. The purchase prices were between $4.21 and $5.93, with an estimated average price of $4.99. The stock is now traded at around $3.57. The impact to the portfolio due to this purchase was 0.35%. The holdings were 694,224 shares as of 2017-03-31.
Added: Clough Global Opportunities Fund ( GLO )
Saba Capital Management, L.P. added to the holdings in Clough Global Opportunities Fund by 186.35%. The purchase prices were between $8.89 and $10.29, with an estimated average price of $9.76. The stock is now traded at around $10.45. The impact to the portfolio due to this purchase was 4.16%. The holdings were 5,454,549 shares as of 2017-03-31.
Added: General American Investors Inc. (GAM)
Saba Capital Management, L.P. added to the holdings in General American Investors Inc. by 358.52%. The purchase prices were between $31.12 and $33.85, with an estimated average price of $32.83. The stock is now traded at around $34.02. The impact to the portfolio due to this purchase was 3.52%. The holdings were 1,180,791 shares as of 2017-03-31.
Added: Alpine Total Dynamic Dividend Fund ( AOD )
Saba Capital Management, L.P. added to the holdings in Alpine Total Dynamic Dividend Fund by 52.25%. The purchase prices were between $7.58 and $8.32, with an estimated average price of $8.07. The stock is now traded at around $8.77. The impact to the portfolio due to this purchase was 1.79%. The holdings were 5,567,362 shares as of 2017-03-31.
Added: Valeant Pharmaceuticals International Inc (VRX)
Saba Capital Management, L.P. added to the holdings in Valeant Pharmaceuticals International Inc by 132.38%. The purchase prices were between $10.64 and $16.86, with an estimated average price of $13.76. The stock is now traded at around $12.09. The impact to the portfolio due to this purchase was 1.66%. The holdings were 2,315,900 shares as of 2017-03-31.
Added: Hertz Global Holdings Inc (HTZ)
Saba Capital Management, L.P. added to the holdings in Hertz Global Holdings Inc by 446.79%. The purchase prices were between $17.25 and $23.63, with an estimated average price of $20.88. The stock is now traded at around $9.61. The impact to the portfolio due to this purchase was 0.82%. The holdings were 501,433 shares as of 2017-03-31.
Added: Clough Global Equity Fund (GLQ)
Saba Capital Management, L.P. added to the holdings in Clough Global Equity Fund by 26.18%. The purchase prices were between $11.15 and $12.64, with an estimated average price of $11.88. The stock is now traded at around $12.63. The impact to the portfolio due to this purchase was 0.74%. The holdings were 2,473,734 shares as of 2017-03-31.
Sold Out: Putnam Premier Income Trust (PPT)
Saba Capital Management, L.P. sold out the holdings in Putnam Premier Income Trust. The sale prices were between $4.93 and $5.36, with an estimated average price of $5.21.
Sold Out: Tesla Inc (TSLA)
Saba Capital Management, L.P. sold out the holdings in Tesla Inc. The sale prices were between $216.99 and $280.98, with an estimated average price of $253.78.
Sold Out: Blackstone GSO Long Short Credit Income Fund (BGX)
Saba Capital Management, L.P. sold out the holdings in Blackstone GSO Long Short Credit Income Fund. The sale prices were between $15.69 and $16.44, with an estimated average price of $16.15.
Sold Out: DoubleLine Income Solutions Fund (DSL)
Saba Capital Management, L.P. sold out the holdings in DoubleLine Income Solutions Fund. The sale prices were between $19 and $20.42, with an estimated average price of $19.78.
Sold Out: Eaton Vance Short Diversified Income Fund Duration (EVG)
Saba Capital Management, L.P. sold out the holdings in Eaton Vance Short Diversified Income Fund Duration. The sale prices were between $13.76 and $14.15, with an estimated average price of $13.94.
Reduced: Allergan PLC (AGN)
Saba Capital Management, L.P. reduced to the holdings in Allergan PLC by 87.01%. The sale prices were between $210.8 and $249.32, with an estimated average price of $232.88. The stock is now traded at around $235.22. The impact to the portfolio due to this sale was -3.91%. Saba Capital Management, L.P. still held 20,203 shares as of 2017-03-31.
Reduced: Franklin Templeton Ltd Duration Inc Tr (FTF)
Saba Capital Management, L.P. reduced to the holdings in Franklin Templeton Ltd Duration Inc Tr by 57.47%. The sale prices were between $11.88 and $12.27, with an estimated average price of $12.09. The stock is now traded at around $11.99. The impact to the portfolio due to this sale was -3.84%. Saba Capital Management, L.P. still held 1,715,080 shares as of 2017-03-31.
Reduced: MFS Charter Income Trust (MCR)
Saba Capital Management, L.P. reduced to the holdings in MFS Charter Income Trust by 52.5%. The sale prices were between $8.31 and $8.74, with an estimated average price of $8.57. The stock is now traded at around $8.66. The impact to the portfolio due to this sale was -0.87%. Saba Capital Management, L.P. still held 673,976 shares as of 2017-03-31.
Reduced: Morgan Stanley Emerging Markets Domestic Debt Fund (EDD)
Saba Capital Management, L.P. reduced to the holdings in Morgan Stanley Emerging Markets Domestic Debt Fund by 67.02%. The sale prices were between $7.15 and $7.81, with an estimated average price of $7.57. The stock is now traded at around $8.15. The impact to the portfolio due to this sale was -0.73%. Saba Capital Management, L.P. still held 363,485 shares as of 2017-03-31.
Reduced: MFS Multimarket Income Trust (MMT)
Saba Capital Management, L.P. reduced to the holdings in MFS Multimarket Income Trust by 58.07%. The sale prices were between $5.93 and $6.23, with an estimated average price of $6.1. The stock is now traded at around $6.16. The impact to the portfolio due to this sale was -0.6%. Saba Capital Management, L.P. still held 516,508 shares as of 2017-03-31.
Reduced: MFS Intermediate High Income Fund (CIF)
Saba Capital Management, L.P. reduced to the holdings in MFS Intermediate High Income Fund by 92.56%. The sale prices were between $2.54 and $2.66, with an estimated average price of $2.6. The stock is now traded at around $2.78. The impact to the portfolio due to this sale was -0.39%. Saba Capital Management, L.P. still held 88,302 shares as of 2017-03-31.
Warning! GuruFocus has detected 2 Warning Signs with GLO. Click here to check it out.
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Saba Capital Management, L.P. New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE, Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV, Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO, Sold Out:PPT, TSLA, BGX, DSL, EVG, For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P. American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio. New Purchase: American Airlines Group Inc ( AAL ) Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc.
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Saba Capital Management, L.P. New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE, Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV, Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO, Sold Out:PPT, TSLA, BGX, DSL, EVG, For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P. American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio. New Purchase: American Airlines Group Inc ( AAL ) Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc.
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Saba Capital Management, L.P. New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE, Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV, Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO, Sold Out:PPT, TSLA, BGX, DSL, EVG, For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P. American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio. New Purchase: American Airlines Group Inc ( AAL ) Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc.
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Saba Capital Management, L.P. New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE, Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV, Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO, Sold Out:PPT, TSLA, BGX, DSL, EVG, For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P. American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio. New Purchase: American Airlines Group Inc ( AAL ) Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc.
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7493.0
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2017-06-15 00:00:00 UTC
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Zacks Industry Outlook Highlights: United Continental, American Airlines Group, JetBlue Airways, Delta Air Lines and Southwest Airlines
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AAL
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights%3A-united-continental-american-airlines-group-jetblue
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nan
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nan
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For Immediate Release
Chicago, IL - June 15, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 2, including United Continental (NYSE: UAL - Free Report ), American Airlines Group (NASDAQ: AAL - Free Report ), JetBlue Airways Corp. (NASDAQ: JBLU - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ).
Industry: Airlines, Part 2
Link: https://www.zacks.com/commentary/117743/why-airline-stocks-should-still-grace-your-portfolio
It is a fact that stocks in the airline space have been confronted by multiple headwinds. These include margin issues as a result of rising expenses and 'headline risks' following the passenger fiasco at United Continental Holdings (NYSE: UAL - Free Report ). United Continental carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Despite the challenges, there exist some factors that still make investment in airline stocks worthwhile. Let's delve into the details.
Unit Revenue Scenario Vastly Improved
Woes related to unit revenues had palpably hurt airline stocks in the last couple of years. However, the scenario regarding the metric - a measure of sales relative to capacity for a carrier - has been improving.
For example, American Airlines Group (NASDAQ: AAL - Free Report ), which has been displaying unit revenue growth since the fourth quarter of 2016, recently raised its guidance for total revenue per available seat miles (TRASM: a key measure of unit revenue) for the current quarter.
The Fort Worth, TX-based carrier now expects TRASM for the quarter to grow in the band of 3.5-5.5% (the previous guidance had hinted at a growth in 3-5% range). The Long Island City, NY-based JetBlue Airways Corp. (NASDAQ: JBLU - Free Report ) expects revenue per available seat mile (RASM) for the second quarter of 2017 to grow in the band of 4-6% (the previous guidance hinted at year-over-year growth in the band of 3-6%).
Delta Air Lines (NYSE: DAL - Free Report ) is also bullish on the metric. United Continental projects the metric to increase in the band of 1-3% in the second quarter.
Airfares & Capacity
Airline companies had been plagued by the issue of declining airfares for quite some time. Also, airfares decreased in almost every month of 2016, with the decline in July being the sharpest. However, in 2017 air fares are projected to rise. Hiking air fares, while not customer friendly, is consistent with the carriers' objective of returning to unit revenue growth this year.
Moreover, most U.S. carriers are looking to curb capacity in 2017. For example, Delta has put the cap on 2017 system capacity growth at 1% in keeping with its objective of maintaining capacity discipline. According to a Bloomberg report , this year, capacity expansion for U.S. airlines is expected to be the least since 2013. This factor also supports air fare hikes in the current year.
Investor/Employee Friendly Measures Signal Financial Strength
It is a well-established fact that cheap oil has resulted in huge benefits for carriers by generating huge savings. Consequently, the balance sheets of carriers have been hugely strengthened. Shareholders have also reaped benefits from the solid financial positions of airline players.
Continuing its investor-friendly attitude, Delta increased its quarterly dividend by over 50% to 30.5 cents per share. The raised dividend will be paid to investors from the third quarter of 2017. Additionally, the board of directors approved a new share repurchase program worth $5 billion. The new share repurchase plan is expected to be completed by Jun 2020.
Along similar lines, low-cost carrier Southwest Airlines (NYSE: LUV - Free Report ) announced a 25% dividend hike to 12.5 cents per share (quarterly) together with a new buyback program worth $2 billion. Banking on balance sheet strength, some carriers have shelled out impressive amounts to employees as part of their profit-sharing schemes. For example, Delta paid more than $1 billion to its employees as part of its profit-sharing plan for 2016.
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.
A4A's Bullish View
Airlines for America ("A4A") - the largest airline trade association in the U.S. - has predicted that the three-month period (Jun 1-Aug 31) will be the busiest for U.S. carriers in terms of air travel. Strong demand for travel on the back of an improving economy is expected to drive passenger volumes to an all-time high.
Moreover, the volume (234.1 million) is likely to be 4% higher than the year-ago figure. In fact, the air travel projection for the summer translates into 2.54 million fliers per day, during the period. Apart from an improving economy, consumer confidence remains strong, resulting in more Americans going on vacations. Additionally, a much-improved job market and rising disposable income have given an added incentive for air travel.
Oil Still Below $50 a Barrel
Oil is currently hovering around $46 a barrel. While this represents a strong resurgence from the 12-year low of around $26 a barrel hit in Feb 2016, the fact that the commodity is trading at levels much lower than $100+ a barrel witnessed in mid-2014 still persist.
Moreover, it can be made out from Delta's projection on fuel prices per gallon that oil prices are unlikely to touch such highs any time soon. The carrier expects the metric to vary in the range of $1.70-$2.00 in the 2017-2020 period.
Moreover, the Vienna decision of OPEC and some non-OPEC producers arrived in May 2017 to extend the current level of production cut until the first quarter of 2018 hurt oil prices. Lower oil prices mean good news for companies in the airline space.
Other Major Tailwinds
High hopes on the future of airline stocks are further raised by the fact that Warren Buffett - one of the most revered investors of all-time - is continuing to take interest in airline stocks. The Oracle of Omaha increased his stakes in American Airlines and Southwest Airlines in the first quarter of 2017 by 8% and 10%, respectively. The data is according to a regulatory filing by Buffett's Berkshire Hathaway.
Furthermore, efforts of carriers to modernize their respective fleet by most carriers are encouraging. Additionally, carriers are looking to add new routes to widen travel choice.
Moreover, airline companies are also hopeful that the Trump era would see them operating with fewer regulations and in a low-tax regime. In a bid to modernize the obsolete U.S. air traffic control system, the President has proposed to privatize the nation's air traffic control system.
Multiple Earnings Beats in Q1
Despite the headwinds, the Q1 earnings season did see quite a few airline players, including heavyweights like Delta, American Airlines Group and United Continental, outperforming on the bottom line.
The likes of United Continental Holdings and American Airlines have not only topped earnings expectations but have also outperformed in terms of revenues. This clearly suggests that in spite of the multiple issues currently confronting the airline sector, all is not lost.
Check out our latest Airline Industry Outlook for more news on the current state of affairs in this market from an earnings perspective, and how the trend looks for this important sector at the moment.
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Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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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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United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Southwest Airlines Company (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): 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 15, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 2, including United Continental (NYSE: UAL - Free Report ), American Airlines Group (NASDAQ: AAL - Free Report ), JetBlue Airways Corp. (NASDAQ: JBLU - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ). For example, American Airlines Group (NASDAQ: AAL - Free Report ), which has been displaying unit revenue growth since the fourth quarter of 2016, recently raised its guidance for total revenue per available seat miles (TRASM: a key measure of unit revenue) for the current quarter. Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on JBLU - FREE Get the full Report on LUV - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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For Immediate Release Chicago, IL - June 15, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 2, including United Continental (NYSE: UAL - Free Report ), American Airlines Group (NASDAQ: AAL - Free Report ), JetBlue Airways Corp. (NASDAQ: JBLU - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ). For example, American Airlines Group (NASDAQ: AAL - Free Report ), which has been displaying unit revenue growth since the fourth quarter of 2016, recently raised its guidance for total revenue per available seat miles (TRASM: a key measure of unit revenue) for the current quarter. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL - June 15, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 2, including United Continental (NYSE: UAL - Free Report ), American Airlines Group (NASDAQ: AAL - Free Report ), JetBlue Airways Corp. (NASDAQ: JBLU - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ). Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on JBLU - FREE Get the full Report on LUV - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL - June 15, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 2, including United Continental (NYSE: UAL - Free Report ), American Airlines Group (NASDAQ: AAL - Free Report ), JetBlue Airways Corp. (NASDAQ: JBLU - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ). For example, American Airlines Group (NASDAQ: AAL - Free Report ), which has been displaying unit revenue growth since the fourth quarter of 2016, recently raised its guidance for total revenue per available seat miles (TRASM: a key measure of unit revenue) for the current quarter. Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on JBLU - FREE Get the full Report on LUV - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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7494.0
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2017-06-15 00:00:00 UTC
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Zacks Industry Outlook Highlights: United Continental, American Airlines Group, Hawaiian Holdings, Delta Air Lines and Southwest Airlines
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AAL
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights%3A-united-continental-american-airlines-group-hawaiian
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nan
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nan
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For Immediate Release
Chicago, IL - June 15, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 3, including United Continental (NYSE: UAL - Free Report ), American Airlines Group (NASDAQ: AAL - Free Report ), Hawaiian Holdings (NASDAQ: HA - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ).
Industry: Airlines, Part 3
Link: https://www.zacks.com/commentary/117746/will-these-headwinds-overrun-airlines
It is a well-established fact that some of the headwinds like declining unit revenues and depressed airfares, which had hit airlines in the last few years, are on the mend. Despite this optimism, one must be mindful of certain factors still hurting stocks in the space before investing in the sector. Let's delve into the details.
High Costs Distorted Q1 Earnings Picture
With labor deals in vogue in the aviation space, labor costs have been on the rise. In the recently concluded Q1 earnings season, growth on the bottom-line front was hardly visible for airlines due to high costs. For example, Q1 earnings at Delta Air Lines (NYSE: DAL - Free Report ) contracted 41.7% on a year-over-year basis due to higher costs. At Southwest Airlines (NYSE: LUV - Free Report ), the bottom line declined 30.7% year over year.
Apart from this, fuel costs increased and resulted in bottom-line contraction. For example, at American Airlines Group (NASDAQ: AAL - Free Report ), total operating expenses climbed 11.4% year over year to $9 billion primarily due to the rise in fuel costs.
In fact, American Airlines' shares fell on Apr 27, despite better-than-expected earnings and revenues in Q1, due to its announcement to hike wages of its pilots and flight attendants to match industry-leading standards. As a result, American Airlines is likely to see an increase of approximately $230 million in salary and benefit expenses in 2017, and $350 million in each of the following two years.
Repetition Likely in Q2
Increased costs are expected to hurt the bottom line of carriers in the second quarter too. United Continental Holdings (NYSE: UAL - Free Report ) expects unit costs to increase in the band of 4-5% from higher labor costs.
United Continental carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Hawaiian Holdings (NASDAQ: HA - Free Report ) expects cost per available seat mile (CASM), excluding fuel and special items, to increase in the band of 4.5% to 7.5%, mainly due to the sixty-three month pay-related deal cleared by its pilots in Mar 2017. Fuel cost per gallon is expected in the band of $1.60 to $1.70, which is higher than $1.55 recorded in the second quarter of 2016.
Higher Costs to Hurt Bottom Line
The International Air Transport Association (IATA) expects 2017 global net profit for the industry to decline 9.8% year over year to $31.4 billion . Average oil price for 2017 is expected to be $54 per barrel for Brent Crude (the comparable figure in 2016 was $44.6 per barrel). With most airlines, including heavyweights in the U.S. aviation space inking labor deals, it is of little surprise that labor costs are surging. IATA expects unit labor costs to increase approximately 3% in 2017.
The research firm has also predicted that airline companies will earn $7.69 per passenger in 2017 compared with $9.1 in 2016. Global net profit margin is expected to decline to 4.2% in 2017 from 4.9% a year ago.
Customer-Related Issues
The passenger-dragging incident at United Airlines, the wholly owned subsidiary of United Continental, on Apr 9, drew flak from across the globe, resulting in multiple apologies from the company.
As a fallout of the incident, United Airlines' CEO Oscar Munoz is now no longer guaranteed to be the company's chairman in 2018.
Another legacy carrier, American Airlines, also found itself in the middle of a passenger fiasco a few days later. Reportedly , a female passenger on one of American Airlines flights was seen crying in a video, uploaded on social media by a fellow passenger, following an ugly altercation with one of the flight attendants. The attendant reportedly hit her with her baby's stroller. The female passenger was subsequently escorted off the flight. The errant male flight attendant was "removed from duty."
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Get the full Report on DAL - FREE
Get the full Report on AAL - FREE
Get the full Report on UAL - FREE
Get the full Report on HA - FREE
Get the full Report on LUV - FREE
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com/
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
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Southwest Airlines Company (LUV): Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 15, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 3, including United Continental (NYSE: UAL - Free Report ), American Airlines Group (NASDAQ: AAL - Free Report ), Hawaiian Holdings (NASDAQ: HA - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ). For example, at American Airlines Group (NASDAQ: AAL - Free Report ), total operating expenses climbed 11.4% year over year to $9 billion primarily due to the rise in fuel costs. Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on HA - FREE Get the full Report on LUV - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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For Immediate Release Chicago, IL - June 15, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 3, including United Continental (NYSE: UAL - Free Report ), American Airlines Group (NASDAQ: AAL - Free Report ), Hawaiian Holdings (NASDAQ: HA - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ). Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on HA - FREE Get the full Report on LUV - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL - June 15, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 3, including United Continental (NYSE: UAL - Free Report ), American Airlines Group (NASDAQ: AAL - Free Report ), Hawaiian Holdings (NASDAQ: HA - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ). Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on HA - FREE Get the full Report on LUV - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL - June 15, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 3, including United Continental (NYSE: UAL - Free Report ), American Airlines Group (NASDAQ: AAL - Free Report ), Hawaiian Holdings (NASDAQ: HA - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ). For example, at American Airlines Group (NASDAQ: AAL - Free Report ), total operating expenses climbed 11.4% year over year to $9 billion primarily due to the rise in fuel costs. Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on HA - FREE Get the full Report on LUV - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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7495.0
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2017-06-14 00:00:00 UTC
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Zacks Industry Outlook Highlights: United Continental, American Airlines Group, JetBlue Airways, Delta Air Lines and Southwest Airlines
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AAL
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights%3A-united-continental-american-airlines-group-jetblue-0
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For Immediate Release
Chicago, IL - June 14, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 1, including United Continental (NYSE: UAL - Free Report ), American Airlines Group (NASDAQ: AAL - Free Report ), JetBlue Airways Corp. (NASDAQ: JBLU - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ).
Industry: Airlines, Part 1
Link: https://www.zacks.com/commentary/117648/airline-industry-outlook---june-2017
Airline stocks did not set the stage on fire with their performance in the first quarter of 2017. In fact, it was nothing more than moderate with headwinds like high costs restricting bottom-line growth. With labor deals very much in vogue in the airline space, it is not much of a surprise that those costs are surging. This apart, the increase in fuel prices from year-ago levels have also spoiled the earnings picture.
Stocks in the airline space have been hurt by customer-related issues. The passenger dragging incident at United Airlines, the wholly owned subsidiary of United Continental (NYSE: UAL - Free Report ), on Apr 9, drew criticism from across the globe, resulting in multiple apologies by the company. United Continental carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
The likes of American Airlines Group (NASDAQ: AAL - Free Report ) have also faced passenger-related issues of late.
President Trump's goals of reversing the Cuba policy, set in motion by his predecessor President Obama, and widening the laptop ban are also serious threats to airline stocks.
Despite the above headwinds, there are plenty of factors to be bullish about the space. Let's delve a bit deep to unearth those factors.
Improving Unit Revenue Scenario Bodes Well
Investors interested in the airline space closely watch the performance of a stock with respect to unit revenues - a measure of sales relative to capacity for a carrier. While it is true that woes related to the metric had hurt the sector significantly in the recent past, the scenario has improved now.
For example, American Airlines has displayed growth with respected to total revenue per available seat mile (TRASM: a key measure of unit revenues) since the fourth quarter of 2016. It recently issued a bullish forecast on TRASM for the second quarter of 2017. American Airlines expects to perform well on the unit revenue front for the rest of 2017. The likes of JetBlue Airways Corp. (NASDAQ: JBLU - Free Report ) have also issued bullish forecasts for this key metric for the second quarter.
Moreover, the scenario of rising oil prices in 2017 provides airlines the scope to raise air fares, thereby boosting revenues.
Financial Strength
The strong balance sheets of major carriers have enabled them to engage in shareholder and employee-friendly activities. In keeping with this trend, Delta Air Lines (NYSE: DAL - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ) announced hikes to their quarterly dividend payouts by 50.6% and 25%, respectively. Moreover, both carriers announced fresh buyback plans.
Additionally, the prevalence of profit sharing schemes highlight the amiability of carriers. The solid financial health of airline players has led to increased investments aimed at improving flying experience of passengers.
Now, oil prices are currently much higher than the 12-year low of around $26 a barrel touched in Feb 2016, but are unlikely to touch the highs witnessed in mid-2014 any time soon. In fact, oil prices recently declined to below $50 a barrel as members of OPEC and some non-OPEC producers announced their decision to extend the current level of production cut until the first quarter of 2018. Lower oil prices imply greater savings for airlines, which in turn strengthen their balance sheets.
Impressive Projections
At its 73 rd Annual General Meeting in Cancun, Mexico, the International Air Transport Association (IATA) said that despite rising fuel prices and labor costs, airline companies are expected to be more profitable in 2017 than previously expected. IATA now expects global net profit for the industry to come in at $31.4 billion (the earlier projection hinted at profits of $29.8 billion for 2017). The bulk of the global profits ($15.4 billion) are expected to come from the North American region.
The improved projection was driven by expectations of higher demand. While air travel is expected to grow 7.4% on a year-over-year basis, cargo demand is projected to grow 7.5% in 2017.
The rosy picture painted by the IATA for North American carriers is backed by the forecast provided by Airlines for America ('A4A'). According to the projection, the three-month period between June and August will be the busiest one for the U.S. carriers in terms of air travel.
Zacks Industry Rank Highlights the Favorable Scenario
The positive developments are reflected by the bullish Zacks Industry Rank of 63 carried by the 25-member Transportation- Airline industry. The airline industry falls under the broader Transportation sector (one of 16 Zacks Sectors).
The favorable rank places the industry in the top 25% of the 250+ groups enlisted. The positioning indicates a positive outlook. In fact, our back-testing shows that the top 50% of the Zacks ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
To learn more visit: About Zacks Industry Rank .
Valuation Signals More Upside
The bullish Zacks Industry Rank is well supported by the segment's attractive valuation. Going by the 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, the industry doesn't look expensive at this point.
The industry currently has a trailing 12-month EV/EBITDA ratio of 7.9X, which is better than what the industry saw in the last five years. The ratio is almost near the low end of the 5-year range. The industry also compares favorably with the broader market on the same valuation metric.
Bottom line
The sector's attractive valuation, improving unit revenue scenario, bullish projections and other positives makes us believe that despite some headwinds, that good things are in store for airlines in 2017. Moreover, in the event of President Trump being successful in revamping the U.S. air traffic control system and cutting taxes, already cheap airline stocks would fly even higher.
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.
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Strong Stocks that Should Be in the News
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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
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Southwest Airlines Company (LUV): Free Stock Analysis Report
JetBlue Airways Corporation (JBLU): 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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For Immediate Release Chicago, IL - June 14, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 1, including United Continental (NYSE: UAL - Free Report ), American Airlines Group (NASDAQ: AAL - Free Report ), JetBlue Airways Corp. (NASDAQ: JBLU - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ). The likes of American Airlines Group (NASDAQ: AAL - Free Report ) have also faced passenger-related issues of late. Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on JBLU - FREE Get the full Report on LUV - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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For Immediate Release Chicago, IL - June 14, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 1, including United Continental (NYSE: UAL - Free Report ), American Airlines Group (NASDAQ: AAL - Free Report ), JetBlue Airways Corp. (NASDAQ: JBLU - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ). Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on JBLU - FREE Get the full Report on LUV - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL - June 14, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 1, including United Continental (NYSE: UAL - Free Report ), American Airlines Group (NASDAQ: AAL - Free Report ), JetBlue Airways Corp. (NASDAQ: JBLU - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ). Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on JBLU - FREE Get the full Report on LUV - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report JetBlue Airways Corporation (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL - June 14, 2017 - Today, Zacks Equity Research discusses the Industry: Airlines, Part 1, including United Continental (NYSE: UAL - Free Report ), American Airlines Group (NASDAQ: AAL - Free Report ), JetBlue Airways Corp. (NASDAQ: JBLU - Free Report ), Delta Air Lines (NYSE: DAL - Free Report ) and Southwest Airlines (NYSE: LUV - Free Report ). The likes of American Airlines Group (NASDAQ: AAL - Free Report ) have also faced passenger-related issues of late. Get the full Report on DAL - FREE Get the full Report on AAL - FREE Get the full Report on UAL - FREE Get the full Report on JBLU - FREE Get the full Report on LUV - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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7496.0
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2017-06-13 00:00:00 UTC
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Saba Capital Management, L.P. Buys Clough Global Opportunities Fund, General American ...
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AAL
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https://www.nasdaq.com/articles/saba-capital-management-lp-buys-clough-global-opportunities-fund-general-american-2017-0
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Saba Capital Management, L.P.
New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE,
Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV,
Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO,
Sold Out:PPT, TSLA, BGX, DSL, EVG,
For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P.
These are the top 5 holdings of Saba Capital Management, L.P.
Wells Fargo Multi-Sector Income Fund ( ERC ) - 6,150,514 shares, 9.33% of the total portfolio.
First Trust High Income Long/Short Fund ( FSD ) - 4,608,568 shares, 8.73% of the total portfolio.
American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio.
Clough Global Opportunities Fund ( GLO ) - 5,454,549 shares, 6.39% of the total portfolio. Shares added by 186.35%
Alpine Total Dynamic Dividend Fund ( AOD ) - 5,567,362 shares, 5.23% of the total portfolio. Shares added by 52.25%
New Purchase: JC Penney Co Inc (JCP)
Saba Capital Management, L.P. initiated holdings in JC Penney Co Inc. The purchase prices were between $5.5 and $8.47, with an estimated average price of $6.61. The stock is now traded at around $4.80. The impact to the portfolio due to this purchase was 0.99%. The holdings were 1,409,000 shares as of 2017-03-31.
New Purchase: American Airlines Group Inc ( AAL )
Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc. The purchase prices were between $40.35 and $49.59, with an estimated average price of $45.24. The stock is now traded at around $48.99. The impact to the portfolio due to this purchase was 0.97%. The holdings were 201,408 shares as of 2017-03-31.
New Purchase: Energy XXI Gulf Coast Inc (EXXI)
Saba Capital Management, L.P. initiated holdings in Energy XXI Gulf Coast Inc. The purchase prices were between $24 and $32.5, with an estimated average price of $29.44. The stock is now traded at around $23.45. The impact to the portfolio due to this purchase was 0.89%. The holdings were 260,601 shares as of 2017-03-31.
New Purchase: Consol Energy Inc (CNX)
Saba Capital Management, L.P. initiated holdings in Consol Energy Inc. The purchase prices were between $14.92 and $19.54, with an estimated average price of $16.96. The stock is now traded at around $15.51. The impact to the portfolio due to this purchase was 0.41%. The holdings were 215,164 shares as of 2017-03-31.
New Purchase: SUPERVALU Inc (SVU)
Saba Capital Management, L.P. initiated holdings in SUPERVALU Inc. The purchase prices were between $3.26 and $4.91, with an estimated average price of $3.9. The stock is now traded at around $4.10. The impact to the portfolio due to this purchase was 0.37%. The holdings were 848,860 shares as of 2017-03-31.
New Purchase: Avon Products Inc (AVP)
Saba Capital Management, L.P. initiated holdings in Avon Products Inc. The purchase prices were between $4.21 and $5.93, with an estimated average price of $4.99. The stock is now traded at around $3.47. The impact to the portfolio due to this purchase was 0.35%. The holdings were 694,224 shares as of 2017-03-31.
Added: Clough Global Opportunities Fund ( GLO )
Saba Capital Management, L.P. added to the holdings in Clough Global Opportunities Fund by 186.35%. The purchase prices were between $8.89 and $10.29, with an estimated average price of $9.76. The stock is now traded at around $10.57. The impact to the portfolio due to this purchase was 4.16%. The holdings were 5,454,549 shares as of 2017-03-31.
Added: General American Investors Inc. (GAM)
Saba Capital Management, L.P. added to the holdings in General American Investors Inc. by 358.52%. The purchase prices were between $31.12 and $33.85, with an estimated average price of $32.83. The stock is now traded at around $34.16. The impact to the portfolio due to this purchase was 3.52%. The holdings were 1,180,791 shares as of 2017-03-31.
Added: Alpine Total Dynamic Dividend Fund ( AOD )
Saba Capital Management, L.P. added to the holdings in Alpine Total Dynamic Dividend Fund by 52.25%. The purchase prices were between $7.58 and $8.32, with an estimated average price of $8.07. The stock is now traded at around $8.77. The impact to the portfolio due to this purchase was 1.79%. The holdings were 5,567,362 shares as of 2017-03-31.
Added: Valeant Pharmaceuticals International Inc (VRX)
Saba Capital Management, L.P. added to the holdings in Valeant Pharmaceuticals International Inc by 132.38%. The purchase prices were between $10.64 and $16.86, with an estimated average price of $13.76. The stock is now traded at around $12.51. The impact to the portfolio due to this purchase was 1.66%. The holdings were 2,315,900 shares as of 2017-03-31.
Added: Hertz Global Holdings Inc (HTZ)
Saba Capital Management, L.P. added to the holdings in Hertz Global Holdings Inc by 446.79%. The purchase prices were between $17.25 and $23.63, with an estimated average price of $20.88. The stock is now traded at around $9.63. The impact to the portfolio due to this purchase was 0.82%. The holdings were 501,433 shares as of 2017-03-31.
Added: Clough Global Equity Fund (GLQ)
Saba Capital Management, L.P. added to the holdings in Clough Global Equity Fund by 26.18%. The purchase prices were between $11.15 and $12.64, with an estimated average price of $11.88. The stock is now traded at around $12.87. The impact to the portfolio due to this purchase was 0.74%. The holdings were 2,473,734 shares as of 2017-03-31.
Sold Out: Putnam Premier Income Trust (PPT)
Saba Capital Management, L.P. sold out the holdings in Putnam Premier Income Trust. The sale prices were between $4.93 and $5.36, with an estimated average price of $5.21.
Sold Out: Tesla Inc (TSLA)
Saba Capital Management, L.P. sold out the holdings in Tesla Inc. The sale prices were between $216.99 and $280.98, with an estimated average price of $253.78.
Sold Out: Blackstone GSO Long Short Credit Income Fund (BGX)
Saba Capital Management, L.P. sold out the holdings in Blackstone GSO Long Short Credit Income Fund. The sale prices were between $15.69 and $16.44, with an estimated average price of $16.15.
Sold Out: DoubleLine Income Solutions Fund (DSL)
Saba Capital Management, L.P. sold out the holdings in DoubleLine Income Solutions Fund. The sale prices were between $19 and $20.42, with an estimated average price of $19.78.
Sold Out: Eaton Vance Short Diversified Income Fund Duration (EVG)
Saba Capital Management, L.P. sold out the holdings in Eaton Vance Short Diversified Income Fund Duration. The sale prices were between $13.76 and $14.15, with an estimated average price of $13.94.
Reduced: Allergan PLC (AGN)
Saba Capital Management, L.P. reduced to the holdings in Allergan PLC by 87.01%. The sale prices were between $210.8 and $249.32, with an estimated average price of $232.88. The stock is now traded at around $230.86. The impact to the portfolio due to this sale was -3.91%. Saba Capital Management, L.P. still held 20,203 shares as of 2017-03-31.
Reduced: Franklin Templeton Ltd Duration Inc Tr (FTF)
Saba Capital Management, L.P. reduced to the holdings in Franklin Templeton Ltd Duration Inc Tr by 57.47%. The sale prices were between $11.88 and $12.27, with an estimated average price of $12.09. The stock is now traded at around $11.97. The impact to the portfolio due to this sale was -3.84%. Saba Capital Management, L.P. still held 1,715,080 shares as of 2017-03-31.
Reduced: MFS Charter Income Trust (MCR)
Saba Capital Management, L.P. reduced to the holdings in MFS Charter Income Trust by 52.5%. The sale prices were between $8.31 and $8.74, with an estimated average price of $8.57. The stock is now traded at around $8.68. The impact to the portfolio due to this sale was -0.87%. Saba Capital Management, L.P. still held 673,976 shares as of 2017-03-31.
Reduced: Morgan Stanley Emerging Markets Domestic Debt Fund (EDD)
Saba Capital Management, L.P. reduced to the holdings in Morgan Stanley Emerging Markets Domestic Debt Fund by 67.02%. The sale prices were between $7.15 and $7.81, with an estimated average price of $7.57. The stock is now traded at around $8.21. The impact to the portfolio due to this sale was -0.73%. Saba Capital Management, L.P. still held 363,485 shares as of 2017-03-31.
Reduced: MFS Multimarket Income Trust (MMT)
Saba Capital Management, L.P. reduced to the holdings in MFS Multimarket Income Trust by 58.07%. The sale prices were between $5.93 and $6.23, with an estimated average price of $6.1. The stock is now traded at around $6.21. The impact to the portfolio due to this sale was -0.6%. Saba Capital Management, L.P. still held 516,508 shares as of 2017-03-31.
Reduced: MFS Intermediate High Income Fund (CIF)
Saba Capital Management, L.P. reduced to the holdings in MFS Intermediate High Income Fund by 92.56%. The sale prices were between $2.54 and $2.66, with an estimated average price of $2.6. The stock is now traded at around $2.76. The impact to the portfolio due to this sale was -0.39%. Saba Capital Management, L.P. still held 88,302 shares as of 2017-03-31.
Warning! GuruFocus has detected 2 Warning Signs with GLO. Click here to check it out.
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This article first appeared on GuruFocus .
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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Saba Capital Management, L.P. New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE, Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV, Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO, Sold Out:PPT, TSLA, BGX, DSL, EVG, For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P. American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio. New Purchase: American Airlines Group Inc ( AAL ) Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc.
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Saba Capital Management, L.P. New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE, Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV, Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO, Sold Out:PPT, TSLA, BGX, DSL, EVG, For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P. American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio. New Purchase: American Airlines Group Inc ( AAL ) Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc.
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Saba Capital Management, L.P. New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE, Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV, Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO, Sold Out:PPT, TSLA, BGX, DSL, EVG, For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P. American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio. New Purchase: American Airlines Group Inc ( AAL ) Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc.
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Saba Capital Management, L.P. New Purchases: JCP , AAL , EXXI , CNX, SVU, AVP, MBI, RAD, HYT, BOE, Added Positions:GLO, GAM, AOD, VRX, HTZ, GLQ, THC, GNW, CYH, GLV, Reduced Positions:AGN, FTF, MCR, EDD, MMT, CIF, HYG, THS, MTG, HIO, Sold Out:PPT, TSLA, BGX, DSL, EVG, For the details of Saba Capital Management, L.P.'s stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Saba+Capital+Management%2C+L.P. American Airlines Group Inc ( AAL ) - 1,750,000 shares, 8.42% of the total portfolio. New Purchase: American Airlines Group Inc ( AAL ) Saba Capital Management, L.P. initiated holdings in American Airlines Group Inc.
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7497.0
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2017-06-12 00:00:00 UTC
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American Airlines' Traffic & Load Factor Increase in May
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AAL
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https://www.nasdaq.com/articles/american-airlines-traffic-load-factor-increase-in-may-2017-06-12
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nan
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nan
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American Airlines Group Inc.AAL , a premier passenger carrier released impressive traffic results for the month of May. The company witnessed a 2.6% rise in traffic, measured in revenue passenger miles (RPMs), showing a record 19.9 billion.
On a year-over-year basis, the consolidated capacity (or available seat miles/ASMs) inched up 2.3% to 24.3 billion. Also, the load factor or percentage of seats filled by passengers increased to 82.1% from 81.9% in May 2016 as traffic growth outpaced capacity expansion.
On a year-to-date basis, the carrier registered a meager 0.3% rise in RPMs to 89.5 billion, while ASMs remained flat at 111.2 billion. Besides, load factor increased 30 basis points year over year to 80.5%. Also, the passenger count (PAX) declined marginally on a year-to-date basis.
The company maintains projection for second quarter 2017 total revenue per available seat mile (TRASM) to rise in the range of 3.5%-5.5% year-over-year. Additionally, its second quarter pre-tax margin excluding special items is expected to vary between 12%-14%, unchanged from the previous prediction.
American Airlines Group, Inc. Price
American Airlines Group, Inc. Price | American Airlines Group, Inc. Quote
Zacks Rank & Key Picks
American Airlines currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in airline space are Air France-KLM SA AFLYY , Deutsche Lufthansa AG DLAKY and International Consolidated Airlines Group SA ICAGY . All sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Shares of Air France-KLM, Deutsche Lufthansa and International Consolidated Airlines gained above 58%, 40% and 6% respectively, over a period of three months.
More Stock News: This Is Bigger than the iPhone!
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Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report
Air France-KLM SA (AFLYY): 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 , a premier passenger carrier released impressive traffic results for the month of May. Click to get this free report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. The company witnessed a 2.6% rise in traffic, measured in revenue passenger miles (RPMs), showing a record 19.9 billion.
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Click to get this free report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL , a premier passenger carrier released impressive traffic results for the month of May. American Airlines Group, Inc. Price American Airlines Group, Inc. Price | American Airlines Group, Inc. Quote Zacks Rank & Key Picks American Airlines currently carries a Zacks Rank #3 (Hold).
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Click to get this free report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL , a premier passenger carrier released impressive traffic results for the month of May. American Airlines Group, Inc. Price American Airlines Group, Inc. Price | American Airlines Group, Inc. Quote Zacks Rank & Key Picks American Airlines currently carries a Zacks Rank #3 (Hold).
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Click to get this free report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis Report Air France-KLM SA (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc.AAL , a premier passenger carrier released impressive traffic results for the month of May. On a year-to-date basis, the carrier registered a meager 0.3% rise in RPMs to 89.5 billion, while ASMs remained flat at 111.2 billion.
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7498.0
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2017-06-09 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Delta Air Lines, United Continental Holdings, Southwest Airlines, Hawaiian Holdings and American Airlines Group
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-delta-air-lines-united-continental-holdings-southwest-1
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For Immediate Release
Chicago, IL - June 09, 2017 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ), Hawaiian Holdings (NASDAQ: HA- Free Report ) and American Airlines Group (NASDAQ: AAL- Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday's Analyst Blog:
Airline Stock Roundup: IATA Lifts '17 Profit View; United Continental Calls Off Venezuela Flights
The last week was dominated by updates from the International Air Transport Association (IATA). The monthly data released by the IATA revealed a 10.7% year-over-year increase in demand for air travel across the globe for April 2017. Healthy growth in both international and domestic traffic resulted in a rise in the overall figure.
Another significant update from the trade association emerged recently when it raised its 2017 profitability outlook for the airline industry to $31.4 billion from the earlier forecast of $29.8 billion. Higher passenger and cargo demand primarily drove the increase in outlook. The bulk of the global profits ($15.4 billion) are expected to come from the North American region.
The IATA updates apart, the Atlanta, GA-based airline behemoth Delta Air Lines (NYSE: DAL- Free Report ) was in the news by virtue of its encouraging May traffic report. The Chicago, IL-based United Continental Holdings (NYSE: UAL- Free Report ) also grabbed headlines as it has reportedly decided to stop flying to Venezuela from next month due to lack luster demand.
An expansion-related update from Southwest Airlines (NYSE: LUV- Free Report ) also gained attention over the past week.
Recap of the Past Week's Most Important Stories
1. At its 73rd Annual General Meeting in Cancun, Mexico, the IATA said that despite rising fuel prices and labor costs, airline companies are expected to be more profitable in 2017 than previously expected. According to the revised forecast, air travel growth of 7.4% is expected in 2017 (the earlier forecast was 5.1%).
The improved demand scenario is anticipated to result in 4.1 billion passengers taking to the skies in 2017 (275 million passengers more than 2016 levels). In the event of this forecast coming true, 2017 would witness the highest year-over-year growth (Read more: IATA Lifts 2017 Profit View on Higher Demand: 5 Solid Picks ).
Earlier in the week, IATA also released its global traffic numbers for April. Global travel demand registered a double-digit year-over-year increase during the month, which incidentally was the fastest pace witnessed in six years. International travel demand climbed 12.5% with all regions exhibiting double-digit traffic growth for the first time in 12 years.
Despite the healthy rise, the ban imposed earlier this year on carrying large portable electronic devices on U.S. bound flights from 10 Middle Eastern and African airports appeared to hurt traffic on the Middle East-US route. On the other hand, demand for domestic travel climbed 7.7%, with growth witnessed in all markets save Australia.
2. Delta's May traffic - measured in revenue passenger miles (RPMs) - improved 1.7% and capacity remained flat on a year-over-year basis. Consolidated load factor, or percentage of seats filled by passengers, improved 140 basis points to 86.7%. This is because traffic expanded while capacity remained flat in the month leading to packed planes (Read more: Delta Air Lines May Traffic, PRASM Increase, Stock Up ).
3. Hawaiian Airlines, the wholly owned subsidiary of Hawaiian Holdings (NASDAQ: HA- Free Report ), reported healthy traffic numbers for May. Traffic climbed 8% on a 5% rise in capacity. The greater increase in traffic compared with capacity led to a 240 basis points increase in load factor to 86.7%.
Operating revenue per available seat mile in the second quarter of 2017 is now projected to grow in the band of 7.5% to 10.5% (the previous projection had called for a rise of 5.5% to 8.5%). The revision was due to better-than-expected yields primarily in the domestic market among other factors. Fuel cost per gallon (economic) is now projected in the band of $1.6 to $1.7 ($1.65-$1.75 projected previously).
Hawaiian Holdings sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
4. The ongoing economic crisis in Venezuela has compelled many carriers to trim capacity/suspend operations in that country. The list lengthened with United Continental announcing its decision to suspend operations in the nation. According to reports, the carrier will not operate flights on the Caracas-Houston route from Jul 1 as the route has ceased to be financially viable to United Continental.
5. Southwest Airlines has begun flight service at Cincinnati/Northern Kentucky International Airport (CVG) in a bid to expand. Following this, the carrier offers a total of eight daily nonstop flights, five between CVG and Chicago Midway and three between CVG and Baltimore/Washington International Airport (Read more: Southwest Airlines Begins CVG Flights to Spread Wings ).
What's Next in the Airline Space?
Investors await May traffic reports from the likes of American Airlines Group (NASDAQ: AAL- Free Report ) and Spirit Airlines in the coming days.
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Strong Stocks that Should Be in the News
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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
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
American Airlines Group, Inc. (AAL): Free Stock Analysis Report
United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Southwest Airlines Company (LUV): Free Stock Analysis Report
Hawaiian Holdings, Inc. (HA): 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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Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ), Hawaiian Holdings (NASDAQ: HA- Free Report ) and American Airlines Group (NASDAQ: AAL- Free Report ). Investors await May traffic reports from the likes of American Airlines Group (NASDAQ: AAL- Free Report ) and Spirit Airlines in the coming days. Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on AAL - FREE Get the full Report on LUV - FREE Get the full Report on HA - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ), Hawaiian Holdings (NASDAQ: HA- Free Report ) and American Airlines Group (NASDAQ: AAL- Free Report ). Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report To read this article on Zacks.com click here. Investors await May traffic reports from the likes of American Airlines Group (NASDAQ: AAL- Free Report ) and Spirit Airlines in the coming days.
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Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ), Hawaiian Holdings (NASDAQ: HA- Free Report ) and American Airlines Group (NASDAQ: AAL- Free Report ). Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on AAL - FREE Get the full Report on LUV - FREE Get the full Report on HA - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report American Airlines Group, Inc. (AAL): Free Stock Analysis Report United Continental Holdings, Inc. (UAL): Free Stock Analysis Report Southwest Airlines Company (LUV): Free Stock Analysis Report Hawaiian Holdings, Inc. (HA): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Delta Air Lines (NYSE: DAL- Free Report ), United Continental Holdings (NYSE: UAL- Free Report ), Southwest Airlines (NYSE: LUV- Free Report ), Hawaiian Holdings (NASDAQ: HA- Free Report ) and American Airlines Group (NASDAQ: AAL- Free Report ). Investors await May traffic reports from the likes of American Airlines Group (NASDAQ: AAL- Free Report ) and Spirit Airlines in the coming days. Get the full Report on DAL - FREE Get the full Report on UAL - FREE Get the full Report on AAL - FREE Get the full Report on LUV - FREE Get the full Report on HA - FREE Follow us on Twitter: https://twitter.com/zacksresearch Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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7499.0
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2017-06-09 00:00:00 UTC
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Spirit Airlines' May Load Factor Falls, Q2 CASM View Raised
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AAL
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https://www.nasdaq.com/articles/spirit-airlines-may-load-factor-falls-q2-casm-view-raised-2017-06-09
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Spirit AirlinesSAVE saw a 6.6% rise in traffic (measured in Revenue Passenger Miles or RPMs) to approximately 2.05 billion in May 2017 on a year-over-year basis. Available Seat Miles (ASMs) increased 9% to 2.41 billion. Load factor (the percentage of seats filled by passengers) decreased 190 basis points (bps) to 85.3% as capacity expansion outpaced traffic growth. Additionally, the airline recorded a 69.1% on-time performance and 94% completion factor for the same month.
On a year-to-date basis, Spirit Airlines witnessed a 10.2% year-over-year rise in RPMs to 9.63 billion. ASMs rose 13.2% to 11.64 billion. Load factor decreased 220 bps to 82.8%. Additionally, passenger flight segments in the first five months of 2017 rose to 9.62 billion, up 10.7%.
Notably, the company has been in the news recently due to the dispute with its pilots. Consequently, the carrier had to cancel multiple flights resulting in customer dissatisfaction. But the situation has been resolved, for now, following the temporary restraining order (TRO) issued by the U.S. District Court.
However, as a result of the disruption in its services caused by the dispute, the company had to incur costs pertaining to passenger re-accommodation and other factors. In fact, due to these costs this Zacks Rank #3 (Hold) low-cost carrier revised its second-quarter 2017 expectations for cost per available seat miles, excluding fuel (CASM). The metric is now expected to increase year over year in the band of 9% to 10% (old guidance had called for an increase in the range of 3.5% to 4.5%). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
We note that the guidance for total revenue per available seat miles (TRASM) has been trimmed as the disruptions pressurized the top line due to refunds to passengers. The metric is now expected to grow in the band of 4% to 5% in the second quarter of 2017 (old guidance had hinted at growth in the range of 4.5% to 5.5%). Capacity for the same period is projected to grow 14.5% (old guidance hinted at a 16.7% year-over-year growth). Also, fuel cost per gallon (economic) is now pegged at $1.66 per gallon compared with $1.76 expected earlier.
Price Performance
Shares of Spirit Airlines have underperformed the Zacks categorized Transportation-Airline industry over the last one month mainly due to the dispute with its pilots. The stock contracted 0.4% as against the industry's gain of 2.5% during the period.
We note that passenger related issues have hurt other US carriers too of late, including the likes of American Airlines Group AAL , Delta Air Lines DAL and United Continental Holdings UAL .
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. Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
United 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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We note that passenger related issues have hurt other US carriers too of late, including the likes of American Airlines Group AAL , Delta Air Lines DAL and United Continental Holdings 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 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. Load factor (the percentage of seats filled by passengers) decreased 190 basis points (bps) to 85.3% as capacity expansion outpaced traffic growth.
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We note that passenger related issues have hurt other US carriers too of late, including the likes of American Airlines Group AAL , Delta Air Lines DAL and United Continental Holdings 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 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.
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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 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. We note that passenger related issues have hurt other US carriers too of late, including the likes of American Airlines Group AAL , Delta Air Lines DAL and United Continental Holdings UAL . In fact, due to these costs this Zacks Rank #3 (Hold) low-cost carrier revised its second-quarter 2017 expectations for cost per available seat miles, excluding fuel (CASM).
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We note that passenger related issues have hurt other US carriers too of late, including the likes of American Airlines Group AAL , Delta Air Lines DAL and United Continental Holdings 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 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 fact, due to these costs this Zacks Rank #3 (Hold) low-cost carrier revised its second-quarter 2017 expectations for cost per available seat miles, excluding fuel (CASM).
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