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7900.0
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2016-07-12 00:00:00 UTC
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Nasdaq 100 Movers: FAST, STX
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-fast-stx-2016-07-12
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nan
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nan
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In early trading on Tuesday, shares of Seagate Technology pc ( STX ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 19.8%. Year to date, Seagate Technology has lost about 21.3% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Fastenal ( FAST ), trading down 2.7%. Fastenal is showing a gain of 8.2% looking at the year to date performance.
Two other components making moves today are Kraft Heinz ( KHC ), trading down 1.4%, and American Airlines Group ( AAL ), trading up 8.3% on the day.
VIDEO: Nasdaq 100 Movers: FAST, STX
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are Kraft Heinz ( KHC ), trading down 1.4%, and American Airlines Group ( AAL ), trading up 8.3% on the day. In early trading on Tuesday, shares of Seagate Technology pc ( STX ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 19.8%. And the worst performing Nasdaq 100 component thus far on the day is Fastenal ( FAST ), trading down 2.7%.
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Two other components making moves today are Kraft Heinz ( KHC ), trading down 1.4%, and American Airlines Group ( AAL ), trading up 8.3% on the day. Year to date, Seagate Technology has lost about 21.3% of its value. VIDEO: Nasdaq 100 Movers: FAST, STX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are Kraft Heinz ( KHC ), trading down 1.4%, and American Airlines Group ( AAL ), trading up 8.3% on the day. In early trading on Tuesday, shares of Seagate Technology pc ( STX ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 19.8%. And the worst performing Nasdaq 100 component thus far on the day is Fastenal ( FAST ), trading down 2.7%.
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Two other components making moves today are Kraft Heinz ( KHC ), trading down 1.4%, and American Airlines Group ( AAL ), trading up 8.3% on the day. In early trading on Tuesday, shares of Seagate Technology pc ( STX ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 19.8%. And the worst performing Nasdaq 100 component thus far on the day is Fastenal ( FAST ), trading down 2.7%.
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7901.0
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2016-07-12 00:00:00 UTC
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American Airlines Signs a Lucrative New Credit Card Agreement
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AAL
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https://www.nasdaq.com/articles/american-airlines-signs-lucrative-new-credit-card-agreement-2016-07-12
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nan
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nan
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As supply growth continues to outpace air travel demand in the U.S., driving down fares, it is more important than ever for airlines to diversify their revenue sources.
For many airlines -- especially the larger players -- co-branded credit cards represent a key source of ancillary revenue. For example, as of 2014, Delta Air Lines '(NYSE: DAL) co-branded credit card relationship generated $2 billion of revenue annually, about 5% of the company's total revenue.
Airline miles (or points) remain a valuable reward currency, enabling airlines to bargain for increased compensation from credit card companies. On Tuesday, American Airlines (NASDAQ: AAL) became the latest airline to score a lucrative upgrade to its credit card revenue stream.
American Airlines renewed its credit card partnerships this week. Image source: American Airlines.
Lots of money here
Among the major airlines, Delta kicked off the recent round of credit card negotiations. In late 2014, Delta Air Lines extended its co-branded card agreement with American Express . The new agreement called for AmEx to pay 15% more per frequent-flier mile beginning in 2015.
As a result, the updated agreement generated more than $400 million of incremental value for Delta last year. Delta's credit card-related income will continue to grow over the six-year life of the contract, including another increase in the per-mile payment next year.
In the year and a half since Delta signed its new deal, nearly every other major airline has followed suit. In most cases, airlines have renewed with their existing partners -- but only after extracting much higher payments for each "mile" or point.
An unusual arrangement
American's current credit card arrangement is unique in that it has two card-issuing partners: Citigroup (NYSE: C) and Barclays (NYSE: BCS) , a legacy of its merger with US Airways. Citigroup has been the longtime card issuer for American Airlines, while Barclays worked with US Airways before the merger.
Most onlookers have assumed that the combined airline would eventually choose a single credit card issuer and that Citi would get the nod. Instead, American is reupping with both Citigroup and Barclays.
Citigroup will remain the main credit card partner going forward. Its AAdvantage cards will be the only ones offered through American Airlines' website. Citi will also get exclusivity for digital, mobile, and direct mail advertising and in American's Admirals Club airport lounges. But Barclays will be allowed to offer co-branded cards in airports and will get exclusive in-flight marketing rights for its cards.
American Airlines believes that working with two card issuers like this will drive faster growth in the AAdvantage cardholder base.
American will get a big revenue boost
As has become common in the airline industry, American Airlines is extending its co-branded credit card partnerships long before they were due to expire. This allowed it to get an immediate step-up in credit card revenue, followed by further compensation increases down the road.
In an SEC filing, American Airlines stated that the new agreements will boost its pre-tax income by $200 million during the second half of 2016. It expects the benefit to rise to $550 million in 2017 -- the first full year under the revised agreements -- and increase further to $800 million in 2018.
These contractual improvements will lift American's pre-tax profit margin by 2 percentage points by 2018, relative to what it would have been under the old credit card agreements. The company expects additional (but smaller) pre-tax income gains after 2018.
Keeping American Airlines' profit margin afloat
American Airlines expects to record most of the incremental revenue from its new credit card agreements in its "other revenue" line. This means that this extra revenue won't help American stem its recent declines in passenger revenue per available seat mile, a metric that excludes other revenue.
Nevertheless, the new credit card agreements will have a big positive impact on the bottom line, which is what really matters. American Airlines still likely needs to slow its capacity growth to avoid significant margin deterioration over the next year. Nevertheless, American's increased credit card revenue stream will help to offset some of the fare pressure that has haunted it lately.
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Adam Levine-Weinberg has the following options: long January 2017 $30 calls on American Airlines Group and long January 2017 $40 calls on Delta Air Lines. The Motley Fool recommends American Express. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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.
|
On Tuesday, American Airlines (NASDAQ: AAL) became the latest airline to score a lucrative upgrade to its credit card revenue stream. As supply growth continues to outpace air travel demand in the U.S., driving down fares, it is more important than ever for airlines to diversify their revenue sources. Delta's credit card-related income will continue to grow over the six-year life of the contract, including another increase in the per-mile payment next year.
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On Tuesday, American Airlines (NASDAQ: AAL) became the latest airline to score a lucrative upgrade to its credit card revenue stream. In late 2014, Delta Air Lines extended its co-branded card agreement with American Express . American will get a big revenue boost As has become common in the airline industry, American Airlines is extending its co-branded credit card partnerships long before they were due to expire.
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On Tuesday, American Airlines (NASDAQ: AAL) became the latest airline to score a lucrative upgrade to its credit card revenue stream. American will get a big revenue boost As has become common in the airline industry, American Airlines is extending its co-branded credit card partnerships long before they were due to expire. Keeping American Airlines' profit margin afloat American Airlines expects to record most of the incremental revenue from its new credit card agreements in its "other revenue" line.
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On Tuesday, American Airlines (NASDAQ: AAL) became the latest airline to score a lucrative upgrade to its credit card revenue stream. In an SEC filing, American Airlines stated that the new agreements will boost its pre-tax income by $200 million during the second half of 2016. Keeping American Airlines' profit margin afloat American Airlines expects to record most of the incremental revenue from its new credit card agreements in its "other revenue" line.
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7902.0
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2016-07-12 00:00:00 UTC
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Why Shares of American Airlines Are Flying Higher Tuesday
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AAL
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https://www.nasdaq.com/articles/why-shares-american-airlines-are-flying-higher-tuesday-2016-07-12
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nan
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nan
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Image source: American Airlines Group.
What: Shares of American Airlines Group (NASDAQ: AAL) were flying 10% higher Tuesday after the company announced its pre-tax income would increase thanks to credit card deals with Citigroup (NYSE: C) and Barclays (NYSE: BCS) .
So what: American Airlines announced its pre-tax income would jump by $200 million this year, $550 million during 2017, and by $800 million in 2018. Typically, airlines only have one credit card issuer, so American is taking a more unique approach with Citi being able to promote its cards on American Airlines' website, mobile apps, direct mail, and in airport lounges, while Barclays will have exclusive rights to promote its cards on American Airlines flights.
Andrew Nocella, chief marketing officer for American Airlines, said the following in a press release:
Now what: It makes sense that shares moving 10% higher as a $1.55 billion addition to the company's pre-tax earnings over the next two-and-a-half years is nothing to sneeze at -- consider that during the first quarter, American Airlines generated pre-tax profit of $1.2 billion, excluding special items. Now with this bit of good news in their back pocket, investors will be turning to the company's second-quarter earnings report on July 22 hoping for a better-than-expected result after airline stocks have been beaten down throughout the first half of the year.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early, in-the-know investors! To be one of them, just click here .
Daniel Miller has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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.
|
What: Shares of American Airlines Group (NASDAQ: AAL) were flying 10% higher Tuesday after the company announced its pre-tax income would increase thanks to credit card deals with Citigroup (NYSE: C) and Barclays (NYSE: BCS) . Andrew Nocella, chief marketing officer for American Airlines, said the following in a press release: Now what: It makes sense that shares moving 10% higher as a $1.55 billion addition to the company's pre-tax earnings over the next two-and-a-half years is nothing to sneeze at -- consider that during the first quarter, American Airlines generated pre-tax profit of $1.2 billion, excluding special items. Now with this bit of good news in their back pocket, investors will be turning to the company's second-quarter earnings report on July 22 hoping for a better-than-expected result after airline stocks have been beaten down throughout the first half of the year.
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What: Shares of American Airlines Group (NASDAQ: AAL) were flying 10% higher Tuesday after the company announced its pre-tax income would increase thanks to credit card deals with Citigroup (NYSE: C) and Barclays (NYSE: BCS) . So what: American Airlines announced its pre-tax income would jump by $200 million this year, $550 million during 2017, and by $800 million in 2018. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
|
What: Shares of American Airlines Group (NASDAQ: AAL) were flying 10% higher Tuesday after the company announced its pre-tax income would increase thanks to credit card deals with Citigroup (NYSE: C) and Barclays (NYSE: BCS) . Typically, airlines only have one credit card issuer, so American is taking a more unique approach with Citi being able to promote its cards on American Airlines' website, mobile apps, direct mail, and in airport lounges, while Barclays will have exclusive rights to promote its cards on American Airlines flights. Andrew Nocella, chief marketing officer for American Airlines, said the following in a press release: Now what: It makes sense that shares moving 10% higher as a $1.55 billion addition to the company's pre-tax earnings over the next two-and-a-half years is nothing to sneeze at -- consider that during the first quarter, American Airlines generated pre-tax profit of $1.2 billion, excluding special items.
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What: Shares of American Airlines Group (NASDAQ: AAL) were flying 10% higher Tuesday after the company announced its pre-tax income would increase thanks to credit card deals with Citigroup (NYSE: C) and Barclays (NYSE: BCS) . Now with this bit of good news in their back pocket, investors will be turning to the company's second-quarter earnings report on July 22 hoping for a better-than-expected result after airline stocks have been beaten down throughout the first half of the year. The Motley Fool has no position in any of the stocks mentioned.
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7903.0
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2016-07-12 00:00:00 UTC
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Why American Airlines Group Inc (AAL), Seagate Technology PLC (STX) and Shutterstock Inc (SSTK) Are 3 of Today’s Best Stocks
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-group-inc-aal-seagate-technology-plc-stx-and-shutterstock-inc-sstk
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nan
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nan
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
It was another boffo day for U.S. stocks as the S&P 500 and the Dow Jones Industrial Average raced to record highs, gaining 0.7% and 0.66%, respectively. The Nasdaq Composite added 0.69%.
Oil prices climbed 4.5%, sparking a rally among energy and commodities names, which stoked risk appetite during Tuesday's session.
On another day of notable gains for U.S. stocks, American Airlines Group Inc (NASDAQ: AAL ), Seagate Technology PLC (NASDAQ: STX ) and Shutterstock Inc (NYSE: SSTK ) were legitimate stars.
American Airlines Group Inc (AAL)
Shares of American Airlines Group Inc, one of the largest U.S. carriers, soared 11.2% after Deutsche Bank analyst Michael Linenberg issued some bullish commentary on the airline industry in a note out Tuesday. The analyst raised his view of the industry to "buy" from "hold."
10 Stellar Dow Jones Stocks to Buy for Q3
"In light of the current valuations, we think downside is limited and that therefore investors can afford to be early given the rapidity in which airline share prices can appreciate once it becomes apparent that trends are indeed getting better," according to part of Linenberg's note posted by Bloomberg .
AAL rivals Delta Air Lines, Inc. (NYSE: DAL ) and United Continental Holdings Inc (NYSE: UAL ) also soared on the upgrade.
AAL also announced two new marketing partnerships with a pair of major banks today.
Seagate Technology PLC (STX)
Shares of Seagate Technology PLC surged 21.7% on volume that was more than quadruple the daily average after the hard disk drive maker raised its fiscal fourth-quarter revenue guidance to $2.65 billion from $2.3 billion. Analysts were expecting STX to post revenue of $2.5 billion for the quarter.
STX also said it will cut 14% of its workforce by the end of fiscal year 2017.
Needham raised its price target on STX to $33 from $31 while Maxim Group boosted its price target on STX to $35 from $25. Needham rates STX a "buy" while Maxim has a "hold" rating on the stock.
Shutterstock Inc (SSTK)
Shares of Shutterstock Inc climbed 14.2% on more than triple the average turnover after company unveiled a new advertising deal with Google parent Alphabet Inc (NASDAQ: GOOGL , NASDAQ: GOOG ).
10 Energy Stocks to Watch in 2016's Second Half
The deal gives GOOGL access to SSTK's massive "library of photos, illustrations and videos for digital and mobile advertising," reports Investors Business Daily .
Shares of SSTK are up more than 70% year-to-date.
At the time of this writing, Todd Shriber did not own any of the aforementioned securities.
More From InvestorPlace
5 Stocks to Buy for a Rocky July
10 Dividend Stocks at the Right Price Right Now
The post Why American Airlines Group Inc (AAL), Seagate Technology PLC (STX) and Shutterstock Inc (SSTK) Are 3 of Today's Best Stocks 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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On another day of notable gains for U.S. stocks, American Airlines Group Inc (NASDAQ: AAL ), Seagate Technology PLC (NASDAQ: STX ) and Shutterstock Inc (NYSE: SSTK ) were legitimate stars. American Airlines Group Inc (AAL) Shares of American Airlines Group Inc, one of the largest U.S. carriers, soared 11.2% after Deutsche Bank analyst Michael Linenberg issued some bullish commentary on the airline industry in a note out Tuesday. AAL rivals Delta Air Lines, Inc. (NYSE: DAL ) and United Continental Holdings Inc (NYSE: UAL ) also soared on the upgrade.
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On another day of notable gains for U.S. stocks, American Airlines Group Inc (NASDAQ: AAL ), Seagate Technology PLC (NASDAQ: STX ) and Shutterstock Inc (NYSE: SSTK ) were legitimate stars. More From InvestorPlace 5 Stocks to Buy for a Rocky July 10 Dividend Stocks at the Right Price Right Now The post Why American Airlines Group Inc (AAL), Seagate Technology PLC (STX) and Shutterstock Inc (SSTK) Are 3 of Today's Best Stocks appeared first on InvestorPlace . American Airlines Group Inc (AAL) Shares of American Airlines Group Inc, one of the largest U.S. carriers, soared 11.2% after Deutsche Bank analyst Michael Linenberg issued some bullish commentary on the airline industry in a note out Tuesday.
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On another day of notable gains for U.S. stocks, American Airlines Group Inc (NASDAQ: AAL ), Seagate Technology PLC (NASDAQ: STX ) and Shutterstock Inc (NYSE: SSTK ) were legitimate stars. American Airlines Group Inc (AAL) Shares of American Airlines Group Inc, one of the largest U.S. carriers, soared 11.2% after Deutsche Bank analyst Michael Linenberg issued some bullish commentary on the airline industry in a note out Tuesday. More From InvestorPlace 5 Stocks to Buy for a Rocky July 10 Dividend Stocks at the Right Price Right Now The post Why American Airlines Group Inc (AAL), Seagate Technology PLC (STX) and Shutterstock Inc (SSTK) Are 3 of Today's Best Stocks appeared first on InvestorPlace .
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On another day of notable gains for U.S. stocks, American Airlines Group Inc (NASDAQ: AAL ), Seagate Technology PLC (NASDAQ: STX ) and Shutterstock Inc (NYSE: SSTK ) were legitimate stars. More From InvestorPlace 5 Stocks to Buy for a Rocky July 10 Dividend Stocks at the Right Price Right Now The post Why American Airlines Group Inc (AAL), Seagate Technology PLC (STX) and Shutterstock Inc (SSTK) Are 3 of Today's Best Stocks appeared first on InvestorPlace . American Airlines Group Inc (AAL) Shares of American Airlines Group Inc, one of the largest U.S. carriers, soared 11.2% after Deutsche Bank analyst Michael Linenberg issued some bullish commentary on the airline industry in a note out Tuesday.
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7904.0
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2016-07-12 00:00:00 UTC
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United Continental Q2'16 Earnings Preview: Higher Oil Prices & Declining PRASM To Weigh On Results
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AAL
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https://www.nasdaq.com/articles/united-continental-q216-earnings-preview-higher-oil-prices-declining-prasm-weigh-results
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nan
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nan
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Key Trends:
United revised its PRASM guidance from a decline of 6.5%-8.5% to 6.5%-7.5%, implying a small improvement in the foreign currency environment. However, the drop in passenger unit revenue continues to be significant, which is likely to weigh heavily on the airline's June quarter revenue.
Recovery in crude oil prices in the last three months is expected to cause the airline to exceed its fuel price guidance for the quarter. This will, in turn, pull down the legacy carrier's operating margins.
Restricted capacity growth will continue to support the airline's bottom line, partially offsetting the negative impact of higher fuel cost.
In a bid to attract more traffic, United is increasingly focusing on elevating the customer experience by introducing free snacks, coffee, and transforming airport clubs.
Further, the company is further expanding its network, with services to destinations across Europe and Asia.
Have more questions about United Continental ( UAL )? See the links below:
Lower Unit Revenue And Higher Tax Expense Caused United Continental's 1Q'16 Earnings To Drop Despite Fuel Cost Savings
Currency Headwinds To Offset United Continental's Fuel Cost Savings For 1Q'16
How Will United's Equity Value Be Impacted If The Crude Oil Prices Rebound To $100 Per Barrel By 2018?
How Will United's Equity Value Be Impacted If The Crude Oil Prices Average At $50 Per Barrel In 2018?
How Will United's Revenue And EBITDA Grow Over The Next Five Years?
How Important Is United's International Division For Its Overall Equity Value?
What Is United's Fundamental Value Based On 2016 Estimated Numbers?
Why We Think United Continental Is Worth $65 Per Share?
What Drove United's Revenue And EBITDA Growth Over The Last Five Years?
How Has United's Revenue And EBITDA Composition Changed Over The Last Five Years?
What Is United Continental's Revenue And EBITDA Breakdown?
How Has United Continental Utilized Its Cash Flows Over The Last Three Years?
How Have Plummeting Crude Oil Prices Impacted United Continental's Operating Margin?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for United Continental
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis 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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Restricted capacity growth will continue to support the airline's bottom line, partially offsetting the negative impact of higher fuel cost. In a bid to attract more traffic, United is increasingly focusing on elevating the customer experience by introducing free snacks, coffee, and transforming airport clubs. For precise figures, please refer to our complete analysis for United Continental View Interactive Institutional Research (Powered by Trefis): Global Large Cap | U.S.
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See the links below: Lower Unit Revenue And Higher Tax Expense Caused United Continental's 1Q'16 Earnings To Drop Despite Fuel Cost Savings Currency Headwinds To Offset United Continental's Fuel Cost Savings For 1Q'16 How Will United's Equity Value Be Impacted If The Crude Oil Prices Rebound To $100 Per Barrel By 2018? How Have Plummeting Crude Oil Prices Impacted United Continental's Operating Margin? Mid & Small Cap | European Large & Mid Cap More Trefis 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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See the links below: Lower Unit Revenue And Higher Tax Expense Caused United Continental's 1Q'16 Earnings To Drop Despite Fuel Cost Savings Currency Headwinds To Offset United Continental's Fuel Cost Savings For 1Q'16 How Will United's Equity Value Be Impacted If The Crude Oil Prices Rebound To $100 Per Barrel By 2018? What Is United Continental's Revenue And EBITDA Breakdown? How Have Plummeting Crude Oil Prices Impacted United Continental's Operating Margin?
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What Drove United's Revenue And EBITDA Growth Over The Last Five Years? What Is United Continental's Revenue And EBITDA Breakdown? How Have Plummeting Crude Oil Prices Impacted United Continental's Operating Margin?
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7905.0
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2016-07-12 00:00:00 UTC
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Why American Airlines Group, Shutterstock, and Weatherford International Jumped Today
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-group-shutterstock-and-weatherford-international-jumped-today-2016
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nan
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nan
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Image source: American Airlines.
After waiting more than a year, investors have now seen record closing highs for two days in a row. The stock market added to its previous gains, rising on Tuesday to another record for the S&P 500. The Dow joined in on the record action with its first new all-time high since May 2015. Helping to send the market higher were reassurances that interest rate increases are likely to stay on hold for an extended period of time, changing the previous expectation for multiple rate increases this year. As long as Brexit-related economic fallout and other uncertainties persist, investors will have to watch closely, but stocks appear to be in favor for the moment in this summer rally.
Leading the way higher were American Airlines Group (NASDAQ: AAL) , Shutterstock (NYSE: SSTK) , and Weatherford International (NYSE: WFT) .
American flies higher
American Airlines Group jumped 12% on a strong day for the airline industry in general. Analysts following the sector believe American and its peers will bounce back from their recent share-price weakness, and they expect the decline in the key passenger revenue per available seat mile metric will give way to a more stable outlook going forward. In addition, American in particular announced that it had extended its relationships with its credit card partners, inking new agreements that will continue to provide frequent flier miles and other perks to customers.
The airline said the deals will boost income by as much as $800 million per year by 2018, showing the value of capturing customer loyalty in an increasingly concentrated airline industry. If current trends continue, American is well-positioned to benefit from resurgent passenger traffic in the months and years ahead.
Shutterstock takes a pretty picture
Shutterstock soared 14% after the provider of commercial imagery and music announced an agreement with Google . The image licensing deal will allow Google's digital and mobile display advertising products to gain access to Shutterstock's collection of more than 90 million images. By using an application programming interface solution from Shutterstock, Google will be able to tailor its use of images to its own needs. Shutterstock CEO Jon Oringer noted that his company's API and enterprise platforms "make it easy for companies like Google to access professional, high-quality content at scale and in a way that makes sense for their unique workflow." With Google becoming one of many companies that have integrated Shutterstock's search capabilities into their products, Shutterstock is gaining more attention across the industry.
Weatherford feels more energetic
Finally, Weatherford International climbed 10%. The oilfield services company was one of many winners on a strong day for the energy markets, in which crude oil climbed more than $2 to come close to $47 per barrel. Overall, Weatherford will do well if oil and gas exploration and production companies start ramping their activity levels back up, because it will be able to provide more services to its customers and eventually start to tighten up its pricing structure once again. Investors aren't expecting a quick turnaround, with losses projected through the company's next fiscal year. Eventually, though, Weatherford should stabilize once energy markets demonstrate that they can maintain equilibrium and slowly work their way back upward.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early, in-the-know investors! To be one of them, just click here .
Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Shutterstock. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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.
|
Leading the way higher were American Airlines Group (NASDAQ: AAL) , Shutterstock (NYSE: SSTK) , and Weatherford International (NYSE: WFT) . As long as Brexit-related economic fallout and other uncertainties persist, investors will have to watch closely, but stocks appear to be in favor for the moment in this summer rally. Analysts following the sector believe American and its peers will bounce back from their recent share-price weakness, and they expect the decline in the key passenger revenue per available seat mile metric will give way to a more stable outlook going forward.
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Leading the way higher were American Airlines Group (NASDAQ: AAL) , Shutterstock (NYSE: SSTK) , and Weatherford International (NYSE: WFT) . American flies higher American Airlines Group jumped 12% on a strong day for the airline industry in general. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Leading the way higher were American Airlines Group (NASDAQ: AAL) , Shutterstock (NYSE: SSTK) , and Weatherford International (NYSE: WFT) . American flies higher American Airlines Group jumped 12% on a strong day for the airline industry in general. With Google becoming one of many companies that have integrated Shutterstock's search capabilities into their products, Shutterstock is gaining more attention across the industry.
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Leading the way higher were American Airlines Group (NASDAQ: AAL) , Shutterstock (NYSE: SSTK) , and Weatherford International (NYSE: WFT) . After waiting more than a year, investors have now seen record closing highs for two days in a row. The oilfield services company was one of many winners on a strong day for the energy markets, in which crude oil climbed more than $2 to come close to $47 per barrel.
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7906.0
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2016-07-11 00:00:00 UTC
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These Are the 10 Lowest P/E Stocks -- but Are Any True Bargains?
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AAL
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https://www.nasdaq.com/articles/these-are-10-lowest-pe-stocks-are-any-true-bargains-2016-07-11
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nan
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nan
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Image source: Getty Images.
Below, we'll show you the 10 stocks that currently have the lowest forward earnings multiples, and then take a closer look at which companies have the best prospects going forward.
The top 10 lowest P/Es in the stock market
Here are the 10 stocks in the S&P 500 with the lowest forward P/E ratios as of July 8:
Data source: Yahoo! Finance.
The first thing to realize in looking at this list is that in some cases, company-specific challenges are responsible for low earnings multiples, and what looks like an obvious bargain actually includes plenty of uncertainty. Endo International is a good example, because the pharmaceutical company has posted huge losses for four straight years. Even in its most recent financial report, Endo said GAAP earnings for the year could come in as low as $0.25 to $0.55 per share. However, many sources measure forward earnings based on adjusted figures, and Endo thinks it will bring in $4.50 to $4.80 per share in adjusted earnings for the year. With Endo having seen huge asset writedowns, goodwill impairment charges, legal settlements, and losses from discontinued operations over the past several years, many would argue that it's unfair to ignore all of those items in favor of using adjusted figures that paint a rosier picture of Endo.
Industrywide issues
Image source: Ford.
Beyond company-specific issues, the list makes it clear that some industries are facing challenges that span many companies. The auto industry had a record sales year in 2015 as U.S. consumers jumped back into buying mode. Low gasoline prices that drivers hadn't seen in years helped support purchases of larger vehicles like trucks and sport-utility vehicles, which are among the most profitable for companies like Ford and General Motors. Yet part of the reason for the low earnings multiples for General Motors and Ford is that few expect the auto industry to be able to sustain its recent success . Automakers are cyclical, and huge sales one year can point to weaker results in future years. If fuel prices start to recover from their plunge in 2015, then it could be another headwind that hurts automaker stocks.
Similarly, the airline industry has had unprecedented success in generating profits, with Delta, American, and United Continental all using baggage fees and other ancillary charges to help boost their bottom lines. Consolidation in the industry has also reduced competition and made it easier for airlines to maintain their fare pricing discipline. Yet most of the concern surrounding airline stocks centers on declines in unit revenue. Some of the difficulties have come from ultra-low-cost carriers that have captured cost-sensitive travelers and eaten into potential profits at major airlines like Delta, American, and United Continental. Future rises in fuel costs could also reverse some profits. Yet if the airlines remain smart about keeping capacity under control, they'll face a much better chance of weathering any future storms.
Is there real value here?
One thing to consider in making value-based investments is what would happen if your investment thesis is wrong. With Ford and General Motors sporting forward P/Es of between 5 and 6, even if their earnings unexpectedly get cut in half at some future point, multiples of 10 to 12 would still be reasonably attractive. Both GM and Ford also pay strong dividends, and that can help shareholders get through tough times as well.
Image source: Delta Air Lines.
Airlines with forward earnings multiples in the 6 to 7 range are in a similar position, with even a 50% miscalculation producing true P/Es of 12 to 14. For airlines, the big question is whether serious competition will start to emerge and have a serious impact on potential future growth. In the past, boom times for profits have usually resulted in new airlines seeking to cash in on opportunities to make money, and the resulting fare wars have been a major reason so many airlines have had to go through bankruptcy proceedings at least once in their histories. To avoid that fate, airlines will have to be a lot smarter in how they manage their fleets and keep a close eye on their peers.
Stocks with low P/Es are attractive for value investors, but you can't just buy them all without looking at the conditions each faces. Only by understanding why a company's earnings multiple is so low will you avoid buying into value traps and instead find the best opportunities in the market.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early, in-the-know investors! To be one of them, just click here .
Dan Caplinger owns shares of Ford. The Motley Fool owns shares of and recommends Ford. The Motley Fool recommends General Motors. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The first thing to realize in looking at this list is that in some cases, company-specific challenges are responsible for low earnings multiples, and what looks like an obvious bargain actually includes plenty of uncertainty. Similarly, the airline industry has had unprecedented success in generating profits, with Delta, American, and United Continental all using baggage fees and other ancillary charges to help boost their bottom lines. Some of the difficulties have come from ultra-low-cost carriers that have captured cost-sensitive travelers and eaten into potential profits at major airlines like Delta, American, and United Continental.
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Similarly, the airline industry has had unprecedented success in generating profits, with Delta, American, and United Continental all using baggage fees and other ancillary charges to help boost their bottom lines. Some of the difficulties have come from ultra-low-cost carriers that have captured cost-sensitive travelers and eaten into potential profits at major airlines like Delta, American, and United Continental. The Motley Fool recommends General Motors.
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However, many sources measure forward earnings based on adjusted figures, and Endo thinks it will bring in $4.50 to $4.80 per share in adjusted earnings for the year. Low gasoline prices that drivers hadn't seen in years helped support purchases of larger vehicles like trucks and sport-utility vehicles, which are among the most profitable for companies like Ford and General Motors. In the past, boom times for profits have usually resulted in new airlines seeking to cash in on opportunities to make money, and the resulting fare wars have been a major reason so many airlines have had to go through bankruptcy proceedings at least once in their histories.
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Below, we'll show you the 10 stocks that currently have the lowest forward earnings multiples, and then take a closer look at which companies have the best prospects going forward. Even in its most recent financial report, Endo said GAAP earnings for the year could come in as low as $0.25 to $0.55 per share. Yet part of the reason for the low earnings multiples for General Motors and Ford is that few expect the auto industry to be able to sustain its recent success .
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7907.0
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2016-07-11 00:00:00 UTC
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Look Under The Hood: SPVU Has 16% Upside
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AAL
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https://www.nasdaq.com/articles/look-under-hood-spvu-has-16-upside-2016-07-11
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nan
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nan
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Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the PowerShares S&P 500 Value Portfolio ETF (Symbol: SPVU), we found that the implied analyst target price for the ETF based upon its underlying holdings is $28.80 per unit.
With SPVU trading at a recent price near $24.78 per unit, that means that analysts see 16.22% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SPVU's underlying holdings with notable upside to their analyst target prices are Delta Air Lines, Inc. (Symbol: DAL), United Continental Holdings Inc (Symbol: UAL), and American Airlines Group Inc (Symbol: AAL). Although DAL has traded at a recent price of $37.37/share, the average analyst target is 51.53% higher at $56.62/share. Similarly, UAL has 51.40% upside from the recent share price of $41.48 if the average analyst target price of $62.80/share is reached, and analysts on average are expecting AAL to reach a target price of $43.60/share, which is 45.14% above the recent price of $30.04. Below is a twelve month price history chart comparing the stock performance of DAL, UAL, and AAL:
Below is a summary table of the current analyst target prices discussed above:
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Below is a twelve month price history chart comparing the stock performance of DAL, UAL, and AAL: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SPVU's underlying holdings with notable upside to their analyst target prices are Delta Air Lines, Inc. (Symbol: DAL), United Continental Holdings Inc (Symbol: UAL), and American Airlines Group Inc (Symbol: AAL). Similarly, UAL has 51.40% upside from the recent share price of $41.48 if the average analyst target price of $62.80/share is reached, and analysts on average are expecting AAL to reach a target price of $43.60/share, which is 45.14% above the recent price of $30.04.
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Similarly, UAL has 51.40% upside from the recent share price of $41.48 if the average analyst target price of $62.80/share is reached, and analysts on average are expecting AAL to reach a target price of $43.60/share, which is 45.14% above the recent price of $30.04. Three of SPVU's underlying holdings with notable upside to their analyst target prices are Delta Air Lines, Inc. (Symbol: DAL), United Continental Holdings Inc (Symbol: UAL), and American Airlines Group Inc (Symbol: AAL). Below is a twelve month price history chart comparing the stock performance of DAL, UAL, and AAL: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now?
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Similarly, UAL has 51.40% upside from the recent share price of $41.48 if the average analyst target price of $62.80/share is reached, and analysts on average are expecting AAL to reach a target price of $43.60/share, which is 45.14% above the recent price of $30.04. Below is a twelve month price history chart comparing the stock performance of DAL, UAL, and AAL: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SPVU's underlying holdings with notable upside to their analyst target prices are Delta Air Lines, Inc. (Symbol: DAL), United Continental Holdings Inc (Symbol: UAL), and American Airlines Group Inc (Symbol: AAL).
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Below is a twelve month price history chart comparing the stock performance of DAL, UAL, and AAL: Below is a summary table of the current analyst target prices discussed above: Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Three of SPVU's underlying holdings with notable upside to their analyst target prices are Delta Air Lines, Inc. (Symbol: DAL), United Continental Holdings Inc (Symbol: UAL), and American Airlines Group Inc (Symbol: AAL). Similarly, UAL has 51.40% upside from the recent share price of $41.48 if the average analyst target price of $62.80/share is reached, and analysts on average are expecting AAL to reach a target price of $43.60/share, which is 45.14% above the recent price of $30.04.
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7908.0
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2016-07-10 00:00:00 UTC
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Airlines Will Have to Share the Wealth in Cuba
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AAL
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https://www.nasdaq.com/articles/airlines-will-have-share-wealth-cuba-2016-07-10
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nan
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nan
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American Airlines will be able to offer the most flights from the U.S. to Havana. Image source: American Airlines.
Last month, the U.S. government awarded the first set of route authorities allowing airlines to fly to Cuba. That decision covered all of Cuba except for Havana. Since there was relatively limited interest in flying to secondary Cuban cities, airlines basically got whatever they wanted.
By contrast, airlines requested nearly three times as many flights to Havana as the 20 daily routes that the Department of Transportation is allowed to allocate. As a result, the U.S. government is making airlines share the wealth when it comes to serving Cuba's capital and largest city.
Airlines aimed high
With only 20 daily routes to Havana up for grabs, some airlines tried to stake out huge positions there. Most notably, American Airlines (NASDAQ: AAL) asked to operate 10 daily round-trips between Miami and Havana, as well as daily flights from Charlotte and Dallas-Fort Worth and weekly flights from Chicago and Los Angeles.
JetBlue Airways (NASDAQ: JBLU) also had a big ask. It requested route authorities for 12 daily flights to Havana, spread across six U.S. gateway airports. JetBlue argued that the DOT should give most or all of the flights to low-cost carriers like itself, while shutting out legacy carriers like American Airlines that have historically charged higher fares.
JetBlue wanted more than half of the available Havana route authorities. Image source: JetBlue Airways.
Even Southwest Airlines (NYSE: LUV) , which has a much smaller footprint in Latin America and the Caribbean, aimed high. Southwest requested authority to operate nine daily round-trips to Havana, including six daily round-trips from Fort Lauderdale. Clearly, airlines see substantial potential in this market and want to maximize their share of the available route authorities.
These airlines will have to share
Not surprisingly, regulators at the Department of Transportation were hardly eager to give any airline a dominant position in Havana. As expected, the U.S. government decided to promote competition by spreading the available route authorities among numerous airlines and cities .
On Thursday, the government revealed its tentative flight allocation. American Airlines and JetBlue did receive the most Havana route authorities, but far less than they requested. American will be able to fly four times daily from Miami and once daily from Charlotte. JetBlue will get to fly twice daily from Fort Lauderdale (except for Saturday, when it will have one flight) and once daily from New York and Orlando.
Looking further down the list, Southwest Airlines was awarded two daily flights from Fort Lauderdale and one from Tampa. Delta Air Lines was also awarded three daily flights: one each from Atlanta, Miami, and New York. Spirit Airlines will get to fly twice a day from Fort Lauderdale. Rounding out the list, Frontier Airlines got a daily flight from Miami, Alaska Air got one from Los Angeles, and United Continental was awarded a daily flight from Newark plus a Saturday-only flight between Houston and Havana.
Southwest Airlines will be able to continue its Caribbean expansion in Havana. Image source: The Motley Fool.
Making sense of the DOT's decision
Geographically speaking, South Florida -- including both Miami and Fort Lauderdale -- will get nearly 60% of the available Havana frequencies. This makes sense, because a disproportionate number of Cuban-Americans live in the Miami area.
Of the remaining frequencies, the majority will serve the other four largest Cuban-American population centers in the U.S.: New York, Tampa, Los Angeles, and Orlando. The daily flights to Atlanta and Charlotte (and the weekly flight to Houston) are designed to funnel travel demand from the rest of the U.S. through some of the largest airline hubs in the country.
Beyond ensuring that areas with high demand for travel to Cuba (particularly South Florida) will get ample service, the DOT also worked to maximize competition. It's no accident that the frequencies from South Florida to Havana were split among six airlines, or that three airlines were awarded one flight each from the New York area.
Given the lack of operating history -- there have been no scheduled flights between the U.S. and Cuba in over half a century -- some of the DOT's route allocations may prove to be foolish in hindsight. However, the initial route awards do a good job of promoting competition and fairness as airlines try to capitalize on a once-in-a-generation opportunity in Havana.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
Adam Levine-Weinberg owns shares of Alaska Air Group, JetBlue Airways, Spirit Airlines, and United Continental Holdings and is long January 2017 $17 calls on JetBlue Airways, long January 2017 $40 calls on Delta Air Lines, long January 2017 $30 calls on American Airlines Group, and long December 2016 $30 calls on Spirit Airlines. The Motley Fool recommends Spirit Airlines. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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Most notably, American Airlines (NASDAQ: AAL) asked to operate 10 daily round-trips between Miami and Havana, as well as daily flights from Charlotte and Dallas-Fort Worth and weekly flights from Chicago and Los Angeles. Making sense of the DOT's decision Geographically speaking, South Florida -- including both Miami and Fort Lauderdale -- will get nearly 60% of the available Havana frequencies. Beyond ensuring that areas with high demand for travel to Cuba (particularly South Florida) will get ample service, the DOT also worked to maximize competition.
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Most notably, American Airlines (NASDAQ: AAL) asked to operate 10 daily round-trips between Miami and Havana, as well as daily flights from Charlotte and Dallas-Fort Worth and weekly flights from Chicago and Los Angeles. Southwest requested authority to operate nine daily round-trips to Havana, including six daily round-trips from Fort Lauderdale. Rounding out the list, Frontier Airlines got a daily flight from Miami, Alaska Air got one from Los Angeles, and United Continental was awarded a daily flight from Newark plus a Saturday-only flight between Houston and Havana.
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Most notably, American Airlines (NASDAQ: AAL) asked to operate 10 daily round-trips between Miami and Havana, as well as daily flights from Charlotte and Dallas-Fort Worth and weekly flights from Chicago and Los Angeles. Rounding out the list, Frontier Airlines got a daily flight from Miami, Alaska Air got one from Los Angeles, and United Continental was awarded a daily flight from Newark plus a Saturday-only flight between Houston and Havana. Adam Levine-Weinberg owns shares of Alaska Air Group, JetBlue Airways, Spirit Airlines, and United Continental Holdings and is long January 2017 $17 calls on JetBlue Airways, long January 2017 $40 calls on Delta Air Lines, long January 2017 $30 calls on American Airlines Group, and long December 2016 $30 calls on Spirit Airlines.
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Most notably, American Airlines (NASDAQ: AAL) asked to operate 10 daily round-trips between Miami and Havana, as well as daily flights from Charlotte and Dallas-Fort Worth and weekly flights from Chicago and Los Angeles. By contrast, airlines requested nearly three times as many flights to Havana as the 20 daily routes that the Department of Transportation is allowed to allocate. American Airlines and JetBlue did receive the most Havana route authorities, but far less than they requested.
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7909.0
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2016-07-08 00:00:00 UTC
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S&P 500 And Dow ETFs Post 2016 Closing Highs After Huge Jobs Beat
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AAL
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https://www.nasdaq.com/articles/sp-500-and-dow-etfs-post-2016-closing-highs-after-huge-jobs-beat-2016-07-08
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nan
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nan
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A massive jobs beat Friday propelled the S&P 500 and Dow indexes sharply upward, and the ETFs tracking them to 2016 closing highs.
SPDR S&P 500 ( SPY ) pushed 1.5% on the stock market today , recovering all its losses since the June 23 U.K. vote to exit the European Union shocked global financial markets. It finished at 212.65, its highest close so far this year.
For the week, SPY gained 1.3%; for the year, it's now up 5.4%.
SPDR Dow Jones Industrial Average ( DIA ) also edged up 1.4% to erase all its post-Brexit declines. It nabbed a 2016 closing high of 181.30 in a bullish sign for blue chip stocks.
That move took DIA to a 1.1% gain for the week and 5.5% for the year.
[ibdchart symbol="dia" type="daily" size="full" position="leftchart" ]
Transportation stocks contributed heavily to the Dow's advance Friday. United Continental ( UAL ), American Airlines ( AAL ) and Delta Air Lines ( DAL ) added between 2% and 4% each.
Small-cap funds fared even better, with those tracking Russell 2000 indexes jumping more than 2%.
Both developed-international and emerging-market stock ETFs participated in Friday's stock market rally.
SPDR Euro Stoxx 50 (FEZ) punched up 2.0%.
IShares MSCI Brazil Capped (EWZ) jumped nearly 5%.
Gold funds saw a brief, sharp sell-off in the wake of the strong U.S. jobs report, but closed higher near session highs.
Consumer discretionary was the week's best-performing sector in the S&P 500, up 2.2%. Energy was the only decliner, down 1.3%.
U.S. non-farm employers added 287,000 new workers in June, the Labor Department reported early Friday, blowing past economists' consensus views for an increase of 180,000 jobs during the month, and more than six times the revised 11,000 new hires in May.
12 Bellwether ETFs
Here's a look at how major exchange traded funds, tracking various asset classes, performed today, with Relative Price Strength (RS) ratings.
Following daily ETF market action can be key to successful investing:
SPDR S&P 500 ( SPY ), +1.5%, RS 60
PowerShares QQQ (QQQ), +1.5%, RS 52
SPDR Dow Jones Industrial Average ( DIA ), +1.4%, RS 60
IShares Core S&P Mid-Cap (IJH), +1.8%, RS 66
IShares Russell 2000 (IWM), +2.3%, RS 56
IShares MSCI EAFE (EFA), +1.5%, RS 28
Vanguard FTSE Emerging Markets (VWO), +2.2%, RS 52
SPDR Gold Shares (GLD), +0.6%, RS 83
United States Oil (USO), +0.1%, RS 22
IShares Core U.S. Aggregate Bond (AGG), +0.2%, RS 52
PowerShares DB U.S.$ Bullish (UUP), 0%, RS 41
IPath S&P 500 VIX Short-Term Futures (VXX), -6.4%, RS 3
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 ( UAL ), American Airlines ( AAL ) and Delta Air Lines ( DAL ) added between 2% and 4% each. A massive jobs beat Friday propelled the S&P 500 and Dow indexes sharply upward, and the ETFs tracking them to 2016 closing highs. U.S. non-farm employers added 287,000 new workers in June, the Labor Department reported early Friday, blowing past economists' consensus views for an increase of 180,000 jobs during the month, and more than six times the revised 11,000 new hires in May.
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United Continental ( UAL ), American Airlines ( AAL ) and Delta Air Lines ( DAL ) added between 2% and 4% each. SPDR Dow Jones Industrial Average ( DIA ) also edged up 1.4% to erase all its post-Brexit declines. PowerShares QQQ (QQQ), +1.5%, RS 52 SPDR Dow Jones Industrial Average ( DIA ), +1.4%, RS 60 IShares Core S&P Mid-Cap (IJH), +1.8%, RS 66 IShares Russell 2000 (IWM), +2.3%, RS 56 IShares MSCI EAFE (EFA), +1.5%, RS 28 Vanguard FTSE Emerging Markets (VWO), +2.2%, RS 52 SPDR Gold Shares (GLD), +0.6%, RS 83 United States Oil (USO), +0.1%, RS 22 IShares Core U.S.
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United Continental ( UAL ), American Airlines ( AAL ) and Delta Air Lines ( DAL ) added between 2% and 4% each. A massive jobs beat Friday propelled the S&P 500 and Dow indexes sharply upward, and the ETFs tracking them to 2016 closing highs. PowerShares QQQ (QQQ), +1.5%, RS 52 SPDR Dow Jones Industrial Average ( DIA ), +1.4%, RS 60 IShares Core S&P Mid-Cap (IJH), +1.8%, RS 66 IShares Russell 2000 (IWM), +2.3%, RS 56 IShares MSCI EAFE (EFA), +1.5%, RS 28 Vanguard FTSE Emerging Markets (VWO), +2.2%, RS 52 SPDR Gold Shares (GLD), +0.6%, RS 83 United States Oil (USO), +0.1%, RS 22 IShares Core U.S.
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United Continental ( UAL ), American Airlines ( AAL ) and Delta Air Lines ( DAL ) added between 2% and 4% each. For the week, SPY gained 1.3%; for the year, it's now up 5.4%. Both developed-international and emerging-market stock ETFs participated in Friday's stock market rally.
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7910.0
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2016-07-07 00:00:00 UTC
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Eight Airlines Tentatively Awarded Havana Flights
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AAL
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https://www.nasdaq.com/articles/eight-airlines-tentatively-awarded-havana-flights-2016-07-07
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nan
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
There will now be at least eight U.S. airlines launching Havana flights .
Flying to the Cuban capital has been a hassle up to this point, but 10 U.S. cities are looking to further normalize the country's relationship with the Caribbean nation by rolling out Havana flights.
President Obama has put in the work to help restore a connection between the two countries, and Alaska (NYSE: ALK ), American (NASDAQ: AAL ), Delta (NYSE: DAL ), Frontier (NASDAQ: FRNT ), JetBlue (NASDAQ: JBLU ), Southwest (NYSE: LUV ), Spirit (NASDAQ: SAVE ) and United (NYSE: UAL ) have all agreed to offer trips to the Cuba city.
You can fly out of Atlanta, Charlotte, Houston, Los Angeles, Newark, New York, Miami, Fort Lauderdale, Orlando and Tampa.
More From InvestorPlace
The 7 Best Dividend Stocks to Buy Now
10 Best Mutual Funds for the Rest of 2016
Delta Air Lines, Inc.: DAL Stock Could Take Flight
The post Eight Airlines Tentatively Awarded Havana Flights 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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President Obama has put in the work to help restore a connection between the two countries, and Alaska (NYSE: ALK ), American (NASDAQ: AAL ), Delta (NYSE: DAL ), Frontier (NASDAQ: FRNT ), JetBlue (NASDAQ: JBLU ), Southwest (NYSE: LUV ), Spirit (NASDAQ: SAVE ) and United (NYSE: UAL ) have all agreed to offer trips to the Cuba city. Flying to the Cuban capital has been a hassle up to this point, but 10 U.S. cities are looking to further normalize the country's relationship with the Caribbean nation by rolling out Havana flights. You can fly out of Atlanta, Charlotte, Houston, Los Angeles, Newark, New York, Miami, Fort Lauderdale, Orlando and Tampa.
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President Obama has put in the work to help restore a connection between the two countries, and Alaska (NYSE: ALK ), American (NASDAQ: AAL ), Delta (NYSE: DAL ), Frontier (NASDAQ: FRNT ), JetBlue (NASDAQ: JBLU ), Southwest (NYSE: LUV ), Spirit (NASDAQ: SAVE ) and United (NYSE: UAL ) have all agreed to offer trips to the Cuba city. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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President Obama has put in the work to help restore a connection between the two countries, and Alaska (NYSE: ALK ), American (NASDAQ: AAL ), Delta (NYSE: DAL ), Frontier (NASDAQ: FRNT ), JetBlue (NASDAQ: JBLU ), Southwest (NYSE: LUV ), Spirit (NASDAQ: SAVE ) and United (NYSE: UAL ) have all agreed to offer trips to the Cuba city. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips There will now be at least eight U.S. airlines launching Havana flights . More From InvestorPlace The 7 Best Dividend Stocks to Buy Now 10 Best Mutual Funds for the Rest of 2016 Delta Air Lines, Inc.: DAL Stock Could Take Flight The post Eight Airlines Tentatively Awarded Havana Flights appeared first on InvestorPlace .
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President Obama has put in the work to help restore a connection between the two countries, and Alaska (NYSE: ALK ), American (NASDAQ: AAL ), Delta (NYSE: DAL ), Frontier (NASDAQ: FRNT ), JetBlue (NASDAQ: JBLU ), Southwest (NYSE: LUV ), Spirit (NASDAQ: SAVE ) and United (NYSE: UAL ) have all agreed to offer trips to the Cuba city. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips There will now be at least eight U.S. airlines launching Havana flights . Flying to the Cuban capital has been a hassle up to this point, but 10 U.S. cities are looking to further normalize the country's relationship with the Caribbean nation by rolling out Havana flights.
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7911.0
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2016-07-06 00:00:00 UTC
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Nasdaq 100 Movers: AAL, ENDP
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-aal-endp-2016-07-06
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nan
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nan
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In early trading on Wednesday, shares of Endo International ( ENDP ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.1%. Year to date, Endo International has lost about 71.8% of its value.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 5.1%. American Airlines Group is lower by about 35.2% looking at the year to date performance.
Two other components making moves today are Netflix ( NFLX ), trading down 2.8%, and Incyte Corporation ( INCY ), trading up 2.8% on the day.
VIDEO: Nasdaq 100 Movers: AAL, ENDP
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 5.1%. VIDEO: Nasdaq 100 Movers: AAL, ENDP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group is lower by about 35.2% looking at the year to date performance.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 5.1%. VIDEO: Nasdaq 100 Movers: AAL, ENDP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 5.1%. VIDEO: Nasdaq 100 Movers: AAL, ENDP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Wednesday, shares of Endo International ( ENDP ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.1%.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 5.1%. VIDEO: Nasdaq 100 Movers: AAL, ENDP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Wednesday, shares of Endo International ( ENDP ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.1%.
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7912.0
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2016-07-06 00:00:00 UTC
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United Airlines to Start Non-Stop Flight Service to Auckland
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AAL
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https://www.nasdaq.com/articles/united-airlines-to-start-non-stop-flight-service-to-auckland-2016-07-06
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United Airlines, a unit of United Continental Holdings Inc.UAL , has launched a new non-stop flight service connecting San Francisco and Auckland. Three United flights to Auckland will take off each week from San Francisco International Airport till Oct 30. From Nov 1 the airline will operate daily flights to Auckland.
The new service will mark the inauguration of United Airlines' joint venture with Air New Zealand and displays the efforts of both airlines to strengthen their Star Alliance relationship. San Francisco is an integral point for United Airlines as the company operates flights to around 90 destinations from there.
Attractive Features of the New Flight Service
Auckland is a popular tourist destination with enticing features such as pristine sea views of Tasman Sea and Pacific Ocean, beaches and snow-capped mountains. The city has also carved a name for itself in adventure tourism for hikers and trekkers. Thus, the growing popularity of Auckland and New Zealand overall is expected to benefit United Airlines' plan to operate new flights on this route.
The new flight service will be operated through a Boeing 787-8 aircraft. The airplane has been built using lightweight composites, has state-of-art engines and enhanced aerodynamic design which enables a faster flight over longer distances. This is a part of the company's relationship with the Asia and Pacific Initiative to Reduce Emissions (ASPIRE) in accordance with which air traffic providers will provide optimal routes post departure and ground crew members will support to quicken the boarding procedure. This is an effort by United Airlines to reduce carbon footprint.
New Services By U.S. Airlines
Auckland is one of five new international destinations being added to United Airlines' San Francisco operations. The airline has added new destinations such as Tel Aviv, Xi'an China, and Singapore. Flights to Hangzhou, China are expected to start on Jul 13 this year.
Apart form United Airlines, several other U.S. airlines too have introduced new routes. American Airlines Group Inc. AAL recently launched a non-stop flight service between Auckland and Los Angeles with weekly capacity of almost 1600 seats. Delta Air Lines Inc. DAL has planned a New York-Glasgow route that will be launched in Mar 2017 while Southwest Airlines Co. LUV has introduced non-stop flights between Oakland and Long Beach.
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SOUTHWEST AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group Inc. AAL recently launched a non-stop flight service between Auckland and Los Angeles with weekly capacity of almost 1600 seats. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The airplane has been built using lightweight composites, has state-of-art engines and enhanced aerodynamic design which enables a faster flight over longer distances.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. AAL recently launched a non-stop flight service between Auckland and Los Angeles with weekly capacity of almost 1600 seats. New Services By U.S. Airlines Auckland is one of five new international destinations being added to United Airlines' San Francisco operations.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group Inc. AAL recently launched a non-stop flight service between Auckland and Los Angeles with weekly capacity of almost 1600 seats. United Airlines, a unit of United Continental Holdings Inc.UAL , has launched a new non-stop flight service connecting San Francisco and Auckland.
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American Airlines Group Inc. AAL recently launched a non-stop flight service between Auckland and Los Angeles with weekly capacity of almost 1600 seats. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Thus, the growing popularity of Auckland and New Zealand overall is expected to benefit United Airlines' plan to operate new flights on this route.
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7913.0
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2016-07-06 00:00:00 UTC
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Stock Market Today: Stocks Rebound Despite European Bank Woes
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AAL
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https://www.nasdaq.com/articles/stock-market-today%3A-stocks-rebound-despite-european-bank-woes-2016-07-06
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
U.S. equities finished higher on Wednesday, recovering from Tuesday's close and early session weakness despite ongoing pressure on the European banking system. Italian banks are in focus amid political bickering over a possible bailout. But the tailspin is catching the entire industry, with Deutsche Bank AG (USA) (NYSE: DB ) collapsing well below its 2008/2009 financial crisis lows.
Amid the ongoing fallout from the Brexit vote two weeks ago, and in response to weakness in the pound sterling, more than five U.K. property funds have suspended trading and blocked redemptions as investors scramble to sell in anticipation of further currency-driven losses.
Catalysts for the malaise include fears over the economic fallout from Brexit, political risk that the likes of Spain and Portugal could look to exit as well, and the realization that any new monetary policy stimulus effort is likely to further reduce long-term interest rates and thus further pinch bank sector profitability.
5 Stocks to Buy for a Rocky July
In the end, the Dow Jones Industrial Average gained 0.4%, the S&P 500 gained 0.5%, the Nasdaq Composite gained 0.8% and the Russell 2000 ended the day 0.7% lower. Treasury bonds were mixed, the dollar was mixed, gold gained 0.6% and crude oil gained 1.8%.
Healthcare stocks led the way higher, rising 1.2%. Telecom and consumer staples were the laggards, reversing some recent strength.
American Airlines Group Inc (NASDAQ: AAL ) lost 2% after being downgraded by analysts at Credit Suisse on higher balance sheet leverage and a worsening free cashflow outlook on rising fuel costs.
United Continental Holdings Inc (NYSE: UAL ) lost 2.4% on a downgrade from Credit Suisse, also on cash flow concerns.
Netflix, inc. (NASDAQ: NFLX ) lost 3.4% after being initiated at underperform at Jefferies on a more competitive environment and the likelihood that subscriber growth moderates.
The release of the June Federal Reserve meeting minutes was largely a non-event, with policy makers highlighting possible risks from the Brexit vote and the disappointing May payroll report. While a minority noted the risking financial stability risks of keeping policy too lax for too long, the majority prefers to take it slow with any subsequent rate hikes until inflation becomes a clear and present threat.
Apple Inc.: The Brexit Vote Could Put a Hurting on AAPL Stock
On the economic front, there was some good news from the June ISM services index, which rose to 56.5 from 52.9 in May (the lowest since February 2014) in what was the largest sequential increase since 2008. But some bad news from the U.S. trade report, with the deficit widening to $41.1 billion on a 1.6% jump in imports and a 0.2% drop in exports.
Moving forward, watch for the weakness in European banks - which U.S. financials conveniently ignored this afternoon - to resume overnight.
Anthony Mirhaydari is founder of theEdgeandEdge Proinvestment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers.
More From InvestorPlace
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10 Best Mutual Funds for the Rest of 2016
The post Stock Market Today: Stocks Rebound Despite European Bank Woes 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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American Airlines Group Inc (NASDAQ: AAL ) lost 2% after being downgraded by analysts at Credit Suisse on higher balance sheet leverage and a worsening free cashflow outlook on rising fuel costs. Amid the ongoing fallout from the Brexit vote two weeks ago, and in response to weakness in the pound sterling, more than five U.K. property funds have suspended trading and blocked redemptions as investors scramble to sell in anticipation of further currency-driven losses. Apple Inc.: The Brexit Vote Could Put a Hurting on AAPL Stock On the economic front, there was some good news from the June ISM services index, which rose to 56.5 from 52.9 in May (the lowest since February 2014) in what was the largest sequential increase since 2008.
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American Airlines Group Inc (NASDAQ: AAL ) lost 2% after being downgraded by analysts at Credit Suisse on higher balance sheet leverage and a worsening free cashflow outlook on rising fuel costs. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips U.S. equities finished higher on Wednesday, recovering from Tuesday's close and early session weakness despite ongoing pressure on the European banking system. Catalysts for the malaise include fears over the economic fallout from Brexit, political risk that the likes of Spain and Portugal could look to exit as well, and the realization that any new monetary policy stimulus effort is likely to further reduce long-term interest rates and thus further pinch bank sector profitability.
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American Airlines Group Inc (NASDAQ: AAL ) lost 2% after being downgraded by analysts at Credit Suisse on higher balance sheet leverage and a worsening free cashflow outlook on rising fuel costs. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips U.S. equities finished higher on Wednesday, recovering from Tuesday's close and early session weakness despite ongoing pressure on the European banking system. 5 Stocks to Buy for a Rocky July In the end, the Dow Jones Industrial Average gained 0.4%, the S&P 500 gained 0.5%, the Nasdaq Composite gained 0.8% and the Russell 2000 ended the day 0.7% lower.
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American Airlines Group Inc (NASDAQ: AAL ) lost 2% after being downgraded by analysts at Credit Suisse on higher balance sheet leverage and a worsening free cashflow outlook on rising fuel costs. Italian banks are in focus amid political bickering over a possible bailout. Healthcare stocks led the way higher, rising 1.2%.
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7914.0
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2016-07-06 00:00:00 UTC
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S&P 500 Movers: UAL, KMX
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https://www.nasdaq.com/articles/sp-500-movers-ual-kmx-2016-07-06
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In early trading on Wednesday, shares of Carmax ( KMX ) topped the list of the day's best performing components of the S&P 500 index, trading up 4.9%. Year to date, Carmax has lost about 7.2% of its value.
And the worst performing S&P 500 component thus far on the day is United Continental Holdings ( UAL ), trading down 5.4%. United Continental Holdings is lower by about 33.5% looking at the year to date performance.
Two other components making moves today are American Airlines Group ( AAL ), trading down 5.0%, and Endo International ( ENDP ), trading up 4.5% on the day.
VIDEO: S&P 500 Movers: UAL, KMX
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 5.0%, and Endo International ( ENDP ), trading up 4.5% on the day. And the worst performing S&P 500 component thus far on the day is United Continental Holdings ( UAL ), trading down 5.4%. United Continental Holdings is lower by about 33.5% looking at the year to date performance.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 5.0%, and Endo International ( ENDP ), trading up 4.5% on the day. And the worst performing S&P 500 component thus far on the day is United Continental Holdings ( UAL ), trading down 5.4%. VIDEO: S&P 500 Movers: UAL, KMX The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 5.0%, and Endo International ( ENDP ), trading up 4.5% on the day. In early trading on Wednesday, shares of Carmax ( KMX ) topped the list of the day's best performing components of the S&P 500 index, trading up 4.9%. And the worst performing S&P 500 component thus far on the day is United Continental Holdings ( UAL ), trading down 5.4%.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 5.0%, and Endo International ( ENDP ), trading up 4.5% on the day. In early trading on Wednesday, shares of Carmax ( KMX ) topped the list of the day's best performing components of the S&P 500 index, trading up 4.9%. And the worst performing S&P 500 component thus far on the day is United Continental Holdings ( UAL ), trading down 5.4%.
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7915.0
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2016-07-06 00:00:00 UTC
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Why American Airlines Group Inc (AAL), Lloyds Banking Group PLC (LYG) and Netflix, Inc. (NFLX) Are 3 of Today’s Worst Stocks
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-group-inc-aal-lloyds-banking-group-plc-lyg-and-netflix-inc.-nflx-are
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The Federal Reserve is content to hold off on any more rate hikes until all the Brexit dust settles, according to the minutes from its late June meeting . Between that and a higher-than-expected ISM Services Index score for June , the bulls were willing to turn what started out as a bearish day into a bullish one. The S&P 500 's close of 2099.73 was 0.54% better than Tuesday's close.
It wasn't a winning day for all stocks though. American Airlines Group Inc (NASDAQ: AAL ), Lloyds Banking Group PLC (NYSE: LYG ) and Netflix, Inc. (NASDAQ: NFLX ) each used more than their fair share of red ink.
American Airlines Group Inc (AAL)
American Airlines Group was the victim of a downgrade today, ending the session off by 2%.
10 "Growth" Stocks That Just Don't Have It Anymore
Credit Suisse did the deed, lowering its opinion of AAL shares from "outperform" to "underperform" on assumptions that passenger revenue per available seat per mile was in no position to rebound anytime soon. Credit Suisse analyst Julie Yates wrote:
"Until unit revenues show firm evidence of improvement, which requires capacity discipline or a macro reacceleration, the disillusion with owning airlines will persist, with rallies limited to those led by risk-on appetites instead of improving fundamentals."
Credit Suisse also downgraded United Continental Holdings Inc (NYSE: UAL ) for the same reason, sending it to a loss similar to the one AAL booked today.
Lloyds Banking Group PLC (ADR) (LYG)
For the second day in a row, Lloyds Banking Group PLC (ADR) ( LYG ) dished out the most misery to most investors, losing 7% of its value. With Wednesday's stumble, LYG shares are now down a jaw-dropping 41% since Britain voted two weeks ago to leave the European Union.
The crux of today's setback for LYG was news that as of Tuesday, asset managers had stopped withdrawals from real estate-based funds in an effort to quell what some would suggest is becoming an unmanageable outflow.
While the freeze doesn't work directly against LYG, indirectly it sends an alarming message about the broad real estate market, which could crimp Lloyds Banking Group's real estate lending business.
Peers and rivals Royal Bank of Scotland Group PLC (NYSE: RBS ) and Barclays PLC (ADR) (NYSE: BCS ) also lost more than their fair share of ground on Wednesday on the heels of the news.
Netflix, Inc. (NFLX)
Netflix isn't quite all most investors seem to think it is, according to Jefferies analyst John Janedis. He downgraded NFLX from "hold" to "underperform" on Wednesday , simultaneously lowering his target price on NFLX shares from $120 to $80.
The big target reduction mostly stems from concerns that the on-demand video service's U.S. subscriber growth was going to slow down much sooner and much more dramatically than most investors seem to believe. Janedis cited ODV competition as well as a slow-down in the growth of the number of consumers with broadband access as the core reasons for the downgrade.
Janedis also chimed in with a less-than-thrilling (although still net-positive view) of the company's international opportunity, underscoring a similar downgrade rationale from Needham posted on Tuesday . Once again, fallout from the Brexit decision was a factor.
NFLX closed 3.4% lower on Wednesday.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
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The post Why American Airlines Group Inc (AAL), Lloyds Banking Group PLC (LYG) and Netflix, Inc. (NFLX) Are 3 of Today's Worst Stocks 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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10 "Growth" Stocks That Just Don't Have It Anymore Credit Suisse did the deed, lowering its opinion of AAL shares from "outperform" to "underperform" on assumptions that passenger revenue per available seat per mile was in no position to rebound anytime soon. Credit Suisse also downgraded United Continental Holdings Inc (NYSE: UAL ) for the same reason, sending it to a loss similar to the one AAL booked today. American Airlines Group Inc (NASDAQ: AAL ), Lloyds Banking Group PLC (NYSE: LYG ) and Netflix, Inc. (NASDAQ: NFLX ) each used more than their fair share of red ink.
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American Airlines Group Inc (NASDAQ: AAL ), Lloyds Banking Group PLC (NYSE: LYG ) and Netflix, Inc. (NASDAQ: NFLX ) each used more than their fair share of red ink. More From InvestorPlace 7 Stocks You Should Dump From Your Retirement Portfolio 5 Stocks to Buy for a Rocky July The post Why American Airlines Group Inc (AAL), Lloyds Banking Group PLC (LYG) and Netflix, Inc. (NFLX) Are 3 of Today's Worst Stocks appeared first on InvestorPlace . American Airlines Group Inc (AAL) American Airlines Group was the victim of a downgrade today, ending the session off by 2%.
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American Airlines Group Inc (NASDAQ: AAL ), Lloyds Banking Group PLC (NYSE: LYG ) and Netflix, Inc. (NASDAQ: NFLX ) each used more than their fair share of red ink. More From InvestorPlace 7 Stocks You Should Dump From Your Retirement Portfolio 5 Stocks to Buy for a Rocky July The post Why American Airlines Group Inc (AAL), Lloyds Banking Group PLC (LYG) and Netflix, Inc. (NFLX) Are 3 of Today's Worst Stocks appeared first on InvestorPlace . American Airlines Group Inc (AAL) American Airlines Group was the victim of a downgrade today, ending the session off by 2%.
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American Airlines Group Inc (NASDAQ: AAL ), Lloyds Banking Group PLC (NYSE: LYG ) and Netflix, Inc. (NASDAQ: NFLX ) each used more than their fair share of red ink. More From InvestorPlace 7 Stocks You Should Dump From Your Retirement Portfolio 5 Stocks to Buy for a Rocky July The post Why American Airlines Group Inc (AAL), Lloyds Banking Group PLC (LYG) and Netflix, Inc. (NFLX) Are 3 of Today's Worst Stocks appeared first on InvestorPlace . American Airlines Group Inc (AAL) American Airlines Group was the victim of a downgrade today, ending the session off by 2%.
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7916.0
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2016-07-05 00:00:00 UTC
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Zacks Industry Outlook Highlights: Delta Air Lines, Southwest Airlines, American Airlines Group, Alaska Air Group and United Continental
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AAL
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights%3A-delta-air-lines-southwest-airlines-american-airlines
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For Immediate Release
Chicago, IL - July 05, 2016 - Today, Zacks Equity Research discusses Airlines, Part 3, including Delta Air Lines, Inc. ( DAL ), Southwest Airlines Co. ( LUV ), American Airlines Group Inc. ( AAL ), Alaska Air Group ( ALK ) and United Continental Holdings, Inc. ( UAL ).
Industry: Airlines, Part 3
Link: https://www.zacks.com/commentary/84701/all39s-not-well-in-the-airline-industry-here39s-why
Despite the multiple first-quarter 2016 earnings beats for airline stocks, the NYSE ARCA Airline index has declined over 12% in the last three months. This clearly hints at some underlying problems plaguing the sector.
Truth Behind the Beats
The first quarter of 2016 has seen airline heavyweights like Delta Air Lines, Inc. ( DAL ), Southwest Airlines Co. ( LUV ), American Airlines Group Inc. ( AAL ) and Alaska Air Group ( ALK ) report better-than-expected earnings. A detailed analysis of the releases reveal a picture quite contrary to the belief that only low oil price has driven the beats.
Oil prices have been weak for almost two years now. In view of the extended slump, it is quite natural that analysts had taken this into consideration while issuing their earnings per share estimates for the airlines. With cheap oil already factored in, it is clear that the reason behind the bottom-line outperformance lies elsewhere.
In fact, analysts had slashed their first-quarter estimates in the wake of multiple headwinds plaguing the industry. The downward revisions resulted in a highly conservative Zacks Consensus Estimate which made it easier for companies to record a beat. To illustrate our point, let's take a look at Chicago-based United Continental Holdings, Inc. ( UAL ). The Zacks Consensus Estimate for first-quarter 2016 earnings for this carrier was $1.17, down 54.8% from the comparable figure in the fourth quarter of 2015.
Brexit
On Jun 24, Britons voted in favor of exiting the European Union. As had been widely expected, the Brexit decision has created ripples throughout the world, rattling the global financial market. Airline stocks too have been hit hard with fears of travel demand slackening. In fact, the Brexit decision has worsened matters for U.S. airlines with exposure to Britain. According to the International Air Transport Association (IATA), with Brexit materializing, U.K.'s air passenger market is expected to shrink in the band of 3% to 5% by 2020.
Rise in Terror Attacks
The mass shooting at a nightclub in Orlando, described as the worst in the history of the U.S., and an explosion at the Shanghai Pudong airport on Jun 12 have hit airline stocks hard. However, these are not the only instances of terror attacks in recent times. The disappearance of the EgyptAir jet in May is also feared to a victim of terrorism. Such acts of terror impact airline stocks as there is a possibility of waning travel demand due to security fears. For instance, the Brussels attacks in March impacted Delta Air Lines' revenues substantially in the first quarter of 2016.
On May 31, the U.S. State Department issued a global travel alert to U.S. citizens citing the possibility of more terrorist attacks. Meanwhile, European carrier Ryanair Holdings recently stated that it expects a widespread cut in airfares as terror attacks usually have a direct impact on travel demand. Moreover, travel company Thomas Cook revealed that summer bookings had declined 5% in May from a year ago. Such fears were also reflected by the IATA projection which expects passenger travel growth (6.2%) in 2016 to be less than that recorded in 2015 (7.4%).
Unit Revenues
In the past few quarters, key revenue metric PRASM (a measure of sales relative to capacity for a carrier) impacted revenues for most of the carriers. Lower fuel surcharges on international flights due to reduced oil prices have been one of the main reasons behind the persistent decline in PRASM. Consequently, plunging oil prices have become a double-edged sword for airlines.
That PRASM will continue to hurt stocks can be made out from the second-quarter projections. United Continental expects consolidated PRASM to decline in the band of 6.5% to 8.5% for the second quarter while American Airlines forecasts a 6% to 8% drop in the metric.
Woes related to capacity and pricing have been haunting investors in the airline space for quite some time. Investors fear that capacity expansion may lead to oversupply in the market even as fuel costs remain weak. Capacity woes are likely to continue to hurt carriers in 2016, as has been predicted by the IATA, which expects capacity growth (6.8%) to outpace traffic expansion (6.2%).
Repatriation Issues
With economies like Venezuela and Nigeria are in the doldrums, the airlines operating in the beleaguered nations (with dwindling foreign exchange reserves) are facing tough times with regard to repatriation. In the wake of such issues, United Continental Holdings announced its decision to terminate flights connecting Houston and Lagos from Jul 1, thereby exiting Africa completely. According to a Bloomberg report, the Nigerian economy owed approximately $575 million (in airfares) to the airlines, as of Mar 31, 2016. The report also revealed FX reserves declining to as low as $26.5 billion leading to dollar repatriation being limited.
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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 (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
ALASKA AIR GRP (ALK): 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 05, 2016 - Today, Zacks Equity Research discusses Airlines, Part 3, including Delta Air Lines, Inc. ( DAL ), Southwest Airlines Co. ( LUV ), American Airlines Group Inc. ( AAL ), Alaska Air Group ( ALK ) and United Continental Holdings, Inc. ( UAL ). Truth Behind the Beats The first quarter of 2016 has seen airline heavyweights like Delta Air Lines, Inc. ( DAL ), Southwest Airlines Co. ( LUV ), American Airlines Group Inc. ( AAL ) and Alaska Air Group ( ALK ) report better-than-expected earnings. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL - July 05, 2016 - Today, Zacks Equity Research discusses Airlines, Part 3, including Delta Air Lines, Inc. ( DAL ), Southwest Airlines Co. ( LUV ), American Airlines Group Inc. ( AAL ), Alaska Air Group ( ALK ) and United Continental Holdings, Inc. ( UAL ). Truth Behind the Beats The first quarter of 2016 has seen airline heavyweights like Delta Air Lines, Inc. ( DAL ), Southwest Airlines Co. ( LUV ), American Airlines Group Inc. ( AAL ) and Alaska Air Group ( ALK ) report better-than-expected earnings. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL - July 05, 2016 - Today, Zacks Equity Research discusses Airlines, Part 3, including Delta Air Lines, Inc. ( DAL ), Southwest Airlines Co. ( LUV ), American Airlines Group Inc. ( AAL ), Alaska Air Group ( ALK ) and United Continental Holdings, Inc. ( UAL ). Truth Behind the Beats The first quarter of 2016 has seen airline heavyweights like Delta Air Lines, Inc. ( DAL ), Southwest Airlines Co. ( LUV ), American Airlines Group Inc. ( AAL ) and Alaska Air Group ( ALK ) report better-than-expected earnings. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report To read this article on Zacks.com click here. For Immediate Release Chicago, IL - July 05, 2016 - Today, Zacks Equity Research discusses Airlines, Part 3, including Delta Air Lines, Inc. ( DAL ), Southwest Airlines Co. ( LUV ), American Airlines Group Inc. ( AAL ), Alaska Air Group ( ALK ) and United Continental Holdings, Inc. ( UAL ). Truth Behind the Beats The first quarter of 2016 has seen airline heavyweights like Delta Air Lines, Inc. ( DAL ), Southwest Airlines Co. ( LUV ), American Airlines Group Inc. ( AAL ) and Alaska Air Group ( ALK ) report better-than-expected earnings.
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7917.0
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2016-07-05 00:00:00 UTC
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Why Shares of American Airlines and Delta Air Lines Plunged in June
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AAL
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https://www.nasdaq.com/articles/why-shares-american-airlines-and-delta-air-lines-plunged-june-2016-07-05
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Airline stocks had another bad month in June. American Airlines (NASDAQ: AAL) stock fell 11% last month, while Delta Air Lines (NYSE: DAL) shares plunged 16%, according to data from S&P Global Market Intelligence . Shares of their fellow legacy carrier United Continental (NYSE: UAL) barely managed to avoid a double-digit drop, declining 9% for the month.
Airline June stock performance. Data by YCharts .
American Airlines, Delta Air Lines, and United Continental all have substantial international operations. As a result, all three stocks tend to be extremely sensitive to global political and economic dislocation. This put them among the casualties of last month's Brexit referendum in the United Kingdom.
Brexit killed these stocks
In the two days following the U.K.'s vote to leave the European Union, shares of all three legacy carriers plunged . The declines ranged from 13% at Delta Air Lines to 17% at American Airlines.
The United Kingdom is a key market for all three legacy carriers. U.S.-U.K. routes account for more than 5% of systemwide capacity at both American Airlines and United Continental. Delta has a smaller direct presence in the U.K., but due to its 49% stake in British airline Virgin Atlantic, it effectively has a major presence there, too.
Brexit could have a significant financial impact on these airlines. First, flights to London typically carry a large share of high-fare business class travelers. If falling business confidence causes companies to pull back on travel spending, unit revenue on those routes could fall significantly. Second, the British pound has fallen to a multiyear low against the dollar. This reduces the revenue airlines receive for tickets sold in the U.K.
Brexit could impact unit revenue at all three legacy carriers. Image source: American Airlines.
That said, the U.K. hasn't taken any concrete action to leave the EU yet. Travel demand between the U.S. and the U.K. could rebound quickly. Indeed, United Continental announced last week that it will add flights from its West Coast hubs to London over the next year despite the Brexit-related uncertainty.
Delta was already in trouble
Last month, Delta Air Lines stock was also weighed down by CFO Paul Jacobson's comment at an investor conference that the company might miss its Q2 unit revenue guidance .
Back in April, Delta estimated that its passenger revenue per available seat mile (PRASM) would decline 2.5%-4.5% in Q2. PRASM then declined about 4% in April and 5% in May. Thus, Delta needed its revenue trend to improve from May to June just to reach the low end of its PRASM guidance.
Instead, Delta reported on Tuesday that PRASM fell by about 5% again in Q2. As a result, it will miss its unit revenue guidance for the full quarter. Delta blamed the shortfall on lower fares for last-minute bookings. This suggests that business travel demand remains somewhat shaky.
Delta Air Lines will miss its Q2 unit revenue guidance. Image source: The Motley Fool.
United sees clearer skies -- what about American Airlines?
Interestingly enough, United Continental announced in late June that its Q2 PRASM will wind up within the upper half of its guidance range. The carrier stated that unit revenue has exceeded expectations on its transatlantic and Latin American routes.
United still expects PRASM to decrease 6.5%-7.5% year over year, which would be worse than Delta's projected performance. Still, investors were relieved that the revenue gap between United and Delta isn't widening even further. Investors are also happy about the $3.1 billion profit improvement opportunity identified by United executives on an investor call last month. This is probably why United Continental stock was able to avoid a double-digit decline in June.
Meanwhile, American Airlines hasn't updated its guidance since April. Investors may have to wait until it releases its earnings report later this month to find out whether its performance was more in line with that of Delta or United.
For all three airline stocks, the key to a second-half rebound is better unit revenue performance. If tighter capacity discipline and easier comparisons in the second half of the year more than offset the negative impact of Brexit, shares of American Airlines, Delta Air Lines, and United Continental could come roaring back in the next several months.
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Adam Levine-Weinberg owns shares of United Continental Holdings and is long January 2017 $40 calls on Delta Air Lines and long January 2017 $30 calls on American Airlines Group. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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American Airlines (NASDAQ: AAL) stock fell 11% last month, while Delta Air Lines (NYSE: DAL) shares plunged 16%, according to data from S&P Global Market Intelligence . Shares of their fellow legacy carrier United Continental (NYSE: UAL) barely managed to avoid a double-digit drop, declining 9% for the month. If tighter capacity discipline and easier comparisons in the second half of the year more than offset the negative impact of Brexit, shares of American Airlines, Delta Air Lines, and United Continental could come roaring back in the next several months.
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American Airlines (NASDAQ: AAL) stock fell 11% last month, while Delta Air Lines (NYSE: DAL) shares plunged 16%, according to data from S&P Global Market Intelligence . If tighter capacity discipline and easier comparisons in the second half of the year more than offset the negative impact of Brexit, shares of American Airlines, Delta Air Lines, and United Continental could come roaring back in the next several months. Adam Levine-Weinberg owns shares of United Continental Holdings and is long January 2017 $40 calls on Delta Air Lines and long January 2017 $30 calls on American Airlines Group.
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American Airlines (NASDAQ: AAL) stock fell 11% last month, while Delta Air Lines (NYSE: DAL) shares plunged 16%, according to data from S&P Global Market Intelligence . Delta was already in trouble Last month, Delta Air Lines stock was also weighed down by CFO Paul Jacobson's comment at an investor conference that the company might miss its Q2 unit revenue guidance . If tighter capacity discipline and easier comparisons in the second half of the year more than offset the negative impact of Brexit, shares of American Airlines, Delta Air Lines, and United Continental could come roaring back in the next several months.
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American Airlines (NASDAQ: AAL) stock fell 11% last month, while Delta Air Lines (NYSE: DAL) shares plunged 16%, according to data from S&P Global Market Intelligence . The declines ranged from 13% at Delta Air Lines to 17% at American Airlines. Delta was already in trouble Last month, Delta Air Lines stock was also weighed down by CFO Paul Jacobson's comment at an investor conference that the company might miss its Q2 unit revenue guidance .
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7918.0
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2016-07-01 00:00:00 UTC
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United Continental Gains on Tentative Labor Deal with AFA
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AAL
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https://www.nasdaq.com/articles/united-continental-gains-on-tentative-labor-deal-with-afa-2016-07-01
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nan
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Low oil prices have been a boon for airlines, helping the carriers rake in high profits. Employees are eager to get a share of the pie which has given rise to new labor deals and related issues across the industry.
The latest news pertaining to labor deals came from Chicago-based United Continental HoldingsUAL . Shares of the carrier have gained over 5% ever since the company inked a tentative pay-related deal with the labor union (Association of Flight Attendants or AFA), representing its 25,000+ flight attendants. The agreement aims to bring the carrier's flight attendants under a single work group.
Apparently, this is the first contract pertaining to the cabin crew members since 2010 when United Airlines and Continental Airlines merged resulting in the formation of United Continental Holdings.
Ratification to Guarantee Significant Pay Hike
Although a positive development, there is still some way to go before the deal becomes operational. Following the provisional deal, it will now have to be ratified. Results of the ratification vote are expected by Aug 31 . In the event of it being ratified, the agreement, which will guarantee a significant increase in the pay of the carrier's flight attendants apart from other benefits, will be valid for five years. The increase in pay is expected to result in the flight attendants of the carrier being paid more than their counterparts at American Airlines Group AAL .
United Continental is hoping that it does not meet the same fate as Southwest Airlines LUV where the pilots turned down the tentative contract last year on two major grounds, per media reports. Apparently, the issues were related to code share agreements and "retro pay."
We expect investor focus to remain on further labor-related updates at United Continental. Whatever be the outcome, it cannot be denied that United Continental has adopted a more labor-friendly approach under CEO Oscar Munoz compared to his predecessor Jeff Smisek.
Zacks Rank & A Key Pick
United Continental currently carries a Zacks Rank #5 (Strong Sell). The carrier's bearish rank can be attributed to fears of reduced travel demand following the Brexit vote and the surge in terror attacks.
UNITED CONT HLD Price
UNITED CONT HLD Price | UNITED CONT HLD Quote
A better-ranked stock in the airline space is SkyWest, Inc. SKYW which sports a Zacks Rank #1 (Strong Buy).
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 >>
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 AIR (LUV): Free Stock Analysis Report
SKYWEST INC (SKYW): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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 increase in pay is expected to result in the flight attendants of the carrier being paid more than their counterparts at American Airlines Group AAL . Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In the event of it being ratified, the agreement, which will guarantee a significant increase in the pay of the carrier's flight attendants apart from other benefits, will be valid for five years.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The increase in pay is expected to result in the flight attendants of the carrier being paid more than their counterparts at American Airlines Group AAL . UNITED CONT HLD Price UNITED CONT HLD Price | UNITED CONT HLD Quote A better-ranked stock in the airline space is SkyWest, Inc. SKYW which sports a Zacks Rank #1 (Strong Buy).
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The increase in pay is expected to result in the flight attendants of the carrier being paid more than their counterparts at American Airlines Group AAL . Apparently, this is the first contract pertaining to the cabin crew members since 2010 when United Airlines and Continental Airlines merged resulting in the formation of United Continental Holdings.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The increase in pay is expected to result in the flight attendants of the carrier being paid more than their counterparts at American Airlines Group AAL . Results of the ratification vote are expected by Aug 31 .
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7919.0
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2016-07-01 00:00:00 UTC
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Zacks Industry Outlook Highlights: Delta Air Lines, Ryanair, American Airlines and Southwest Airlines
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AAL
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https://www.nasdaq.com/articles/zacks-industry-outlook-highlights%3A-delta-air-lines-ryanair-american-airlines-and-southwest
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For Immediate Release
Chicago, IL - July 01, 2016 - Today, Zacks Equity Research discusses Airlines, Part 1, including Delta Air Lines ( DAL ), Ryanair Holdings ( RYAAY ), American Airlines Group ( AAL ) and Southwest Airlines Co. ( LUV ).
Industry: Airlines, Part 1
Link: https://www.zacks.com/commentary/84559/airline-industry-stock-outlook---july-2016
Airlines Impacted by Terror Attacks, Brexit
As had been widely expected, the Brexit decision has created ripples throughout the world, rattling global financial markets. Airline stocks have been hit hard with fears of travel demand slackening. According to the International Air Transport Association (IATA), with Brexit materializing, the U.K.'s air passenger market is expected to shrink in the band of 3% to 5% by 2020. In fact, the Brexit decision has worsened matters for U.S. carriers with exposure to Britain.
Moreover, prior to Brexit, Britain had been part of the EU's single aviation market. Consequently, carriers of member states could fly freely to/within members. Now with Britain exiting the EU, the entire issue has gotten complicated.
Prior to Brexit, airline stocks had been grappling with issues such as the mass shooting at a nightclub in Orlando, FL and the explosion at the Shanghai Pudong airport on June 12. Fears that such attacks could lead to a dip in air travel demand resulted in widespread sell-offs in the aviation sector.
To add to the distress, the frequency of such attacks is increasing by the day. The disappearance of an EgyptAir jet in May is also feared to be an act of terrorism. Airline stocks were hurt even then. Moreover, the Brussels attacks in March dealt a heavy blow to Delta Air Lines ( DAL ) as its passengers were among the casualties reported in the departure area at Brussels' Zaventem Airport. The Atlanta, GA-based carrier's top line was negatively impacted to the tune of $5 million by the attacks.
In fact, on May 31, the U.S. State Department issued a global travel alert to U.S. citizens citing the possibility of terror attacks similar to those in Brussels and Paris (in Nov 2015). The ongoing European Soccer Championship in France has attracted many tourists. Moreover, the Catholic Church's World Youth Day scheduled to be held in Poland shortly is also likely to be heavily attended.
Citing fears of low travel demand, in May, European low-cost carrier Ryanair Holdings ( RYAAY ) issued a "cautious" outlook for fiscal 2017 on expectations of low airfares. Moreover, travel company Thomas Cook revealed a 5% decline in summer bookings compared to last year.
The twin threats are primarily responsible for the NYSE ARCA Airline index declining more than 5% over the last 30 days.
PRASM Concerns
As was the case in the past few quarters, issues related to passenger revenue per available seat mile (PRASM: a measure of unit revenue) hurt revenues of airline stocks in the first quarter as well. The metric, which is a measure of sales relative to capacity for a carrier, is expected to dent top-line growth in the second-quarter as well. For example, American Airlines Group ( AAL ) forecasts a 6% to 8% drop in the metric for the second quarter.
Lower fuel surcharges on international flights due to weak oil prices have been one of the main reasons behind the persistent decline in PRASM. Furthermore, outbreaks of diseases like the Zika virus and disputes similar to the ongoing one between legacy U.S. carriers and their Gulf counterparts pose challenges to the stocks in the airline space. The tough times for airlines is exemplified by the fact that the "Trans-Airline" sector currently has a Zacks Industry Rank #222 - placing it in the bottom 1/3rd of the 260+ industry groups.
Estimates Trimmed
In view of the headwinds mentioned above, earnings per share estimates were lowered by analysts ahead of the first-quarter earnings season, thus making it easier for companies to outshine the Zacks Consensus Estimate in the quarter gone by. Consequently, the plethora of earnings beats in the space in the first quarter was mainly due to the "lowered bar" and is not anything to be excited about. A major tailwind for airlines in recent times -- cheap oil -- has in all probability been priced in, as prices have been soft for almost two years now.
Airline players, as in the past few quarters, dished out a below-par performance on the top-line front. In fact, the picture might well be similar in the second quarter as well. This can be gauged from our latest Zacks Earning Trends report which predicts that earnings per share for the S&P 500 players in the transportation sector (one of the 16 Zacks sectors), of which airlines is a part, will decline 11%. Meanwhile, revenues are projected to decline 1.3%.
Oil Rebound
Another worrying factor for airlines is that oil prices are currently on their way up and hovering around the $50 a barrel mark. This marks a significant increase from the second half of February, when the commodity had slumped to a 12-year low of $26.21.
Despite oil's massive recovery since February, it's still around $50 - about half the level witnessed in mid-2014. Moreover, many believe that the odds are firmly stacked against a sustained rally. Therefore, we believe bottom-line expansion for airline players will be evident at least in the remaining quarters of 2016.
Financial Strength
Rally or not, it cannot be denied that soft oil prices have been a huge blessing to carriers by virtue of trimming their operating expenses significantly, thereby causing huge savings. For example, Delta expects to generate savings of around $3 billion in 2016 due to low fuel costs.
Naturally, carriers are in the pink of financial health, courtesy the huge cost savings arising from cheap oil. This has given rise to a surge in shareholder friendly activities such as dividend payments and buybacks in the space. For example, in May, Delta and Southwest Airlines Co. ( LUV ) hiked their respective quarterly dividend payouts.
The massive profits generated by carriers have encouraged them to shell out significant amounts to employees under their profit sharing schemes. Moreover, buoyed by their financial strength, carriers are constantly making additional infrastructural investments to enhance the flying experience of passengers.
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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 (DAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
RYANAIR HLDGS (RYAAY): 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 01, 2016 - Today, Zacks Equity Research discusses Airlines, Part 1, including Delta Air Lines ( DAL ), Ryanair Holdings ( RYAAY ), American Airlines Group ( AAL ) and Southwest Airlines Co. ( LUV ). For example, American Airlines Group ( AAL ) forecasts a 6% to 8% drop in the metric for the second quarter. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report To read this article on Zacks.com click here.
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For Immediate Release Chicago, IL - July 01, 2016 - Today, Zacks Equity Research discusses Airlines, Part 1, including Delta Air Lines ( DAL ), Ryanair Holdings ( RYAAY ), American Airlines Group ( AAL ) and Southwest Airlines Co. ( LUV ). Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report To read this article on Zacks.com click here. For example, American Airlines Group ( AAL ) forecasts a 6% to 8% drop in the metric for the second quarter.
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For Immediate Release Chicago, IL - July 01, 2016 - Today, Zacks Equity Research discusses Airlines, Part 1, including Delta Air Lines ( DAL ), Ryanair Holdings ( RYAAY ), American Airlines Group ( AAL ) and Southwest Airlines Co. ( LUV ). Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report To read this article on Zacks.com click here. For example, American Airlines Group ( AAL ) forecasts a 6% to 8% drop in the metric for the second quarter.
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For Immediate Release Chicago, IL - July 01, 2016 - Today, Zacks Equity Research discusses Airlines, Part 1, including Delta Air Lines ( DAL ), Ryanair Holdings ( RYAAY ), American Airlines Group ( AAL ) and Southwest Airlines Co. ( LUV ). For example, American Airlines Group ( AAL ) forecasts a 6% to 8% drop in the metric for the second quarter. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report To read this article on Zacks.com click here.
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7920.0
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2016-06-30 00:00:00 UTC
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4 Airline Stocks to Buy Despite Terror, Brexit Woes
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AAL
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https://www.nasdaq.com/articles/4-airline-stocks-to-buy-despite-terror-brexit-woes-2016-06-30
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nan
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nan
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The vote, last week, by Britons in favor of exiting the European Union (Brexit) shocked markets globally, taking indexes into a tail spin. The airline industry hasn't been spared the onslaught, with stocks plummeting on fears of slackening travel demand.
According to the International Air Transport Association (IATA), with Brexit materializing, U.K.'s air passenger market is expected to shrink in the band of 3% to 5% by 2020. In fact, U.S. carriers with exposure to Britain have borne the brunt of the Brexit vote. The Fort Worth, TX-based American Airlines Group AAL has been a major sufferer with its shares losing over 8% as it has high exposure (6.2% of capacity) to the U.K.
Other airline heavyweights like Delta Air Lines, Inc. DAL are also at risk following the disclosure of the results of the U.K. referendum which revealed that 51.9% of the votes were cast in favor of Brexit while 48.1% opposed the notion (read more: 4 U.S. Airline Stocks at Risk as UK Opts for Brexit ).
Terror Attacks on the Rise
In fact, the Brexit vote is not the only challenge confronting airline stocks. Stocks in the space have been grappling with issues arising from the mass shooting in Orlando on Jun 12, described as the worst in the nation's history. Such attacks hit carriers hard due to the associated fears of declining travel demand on security issues.
Airline stocks had moved south each time there has been an act of terror in the recent past. The attacks in Paris (Nov 2015), Brussels (Mar 2016) and the EgyptAir tragedy (May 2016) had all spelt doom. Apart from Brexit and terror-related issues, airline stocks are facing headwinds such as declining unit revenues as well.
Rebound in Sight?
Going by the price movement in the last two trading sessions, airline stocks seem to be bouncing back from the Brexit induced slump. The NYSE ARCA Airline index has gained over 5% over the same time frame.
Stocks in the airline space were not affected by the Jun 28 attacks at the Istanbul airport. This clearly highlights that the impact on carriers of such heinous acts are declining with the increase in frequency. Thus, it is highly probable that the consequences of such attacks are already priced in. However, we can get a more concrete view of this issue with time.
Oil: Chief Benefactor
It is common knowledge that cheap oil has benefited airline stocks immensely, resulting in massive savings as fuel represents one of the major expenses for carriers. Consequently, we have seen a surge in shareholder friendly (dividend and buybacks) and employee friendly (profit sharing) activities in the space.
The improved financial status of carriers has encouraged them to make substantial investments aimed at enhancing the flying experience for passengers.
Crude Resurgence: Not a Concern
Oil prices have been moving up for the last few months. The commodity is currently hovering around $50 a barrel, representing a significant upsurge from the 12-year low of $26.21 in Feb 2016. However, despite oil's significant recovery, the commodity is still trading at about half the level witnessed two years ago.
That oil prices will continue to aid airline stocks, at least for the remainder of the year, was hinted by the IATA projection of crude oil price (Brent) being $45 a barrel in 2016, compared to the 2015 price of $53.9 a barrel. Moreover, fuel expenses are projected to be almost 30% less in 2016 on a year-over-year basis.
Strong Stocks
The above write-up clearly suggests that airlines are poised to fly high in the days ahead. Consequently, adding airline stocks to one's portfolio won't be a bad choice despite the hiccups.
However, picking the right stocks is no mean feat, especially during times as distressing as this. This is where the Zacks Rank , which justifies a company's strong fundamentals, can come in really handy. In addition to a compelling Zacks Rank, we have utilized our new style score system , to zero-in on four airline stocks with bright prospects.
Our Choices
Skywest Inc.SKYW : The carrier, headquartered at St. George, UT, operates as one of the major regional airlines in the U.S. The Zacks Consensus Estimate for the current year has moved up 4.5% over the last 60 days.
Zacks Rank #1 (Strong Buy)
P/E:10.17 (versus 15.70 for the industry)
Value Score: A
Cathay Pacific Airways Ltd.CPCAY : The international airline is based and registered in Hong Kong. It also offers airline catering, aircraft handling and engineering services.
Zacks Rank #1
P/E: 5.34 (versus 15.70 for the industry)
Value Score: A
ANA Holdings Inc.ALNPY : This Tokyo-based company offers scheduled & unscheduled air passenger as well as air courier services. It is also involved in the buying, selling, leasing and maintenance of aircraft and aircraft parts. The Zacks Consensus Estimate for the current year has risen 12.5% over the last 30 days.
Zacks Rank #2 (Buy)
Value Score: B
Growth Score: A
P/E: 12.91 (lower than the industry average)
GOL Linhas Aereas Inteligentes S.A.GOL : This Brazilian low-fare airline has received a series of encouraging news lately. The carrier is undergoing a thorough restructuring process. Meanwhile, the company's top line is poised to benefit from the upcoming Rio Olympics. The carrier should also immensely benefit if 100% foreign ownership is allowed in the nation's carriers. Further, the bottom line is expected to expand 38.6% in 2017, way above the industry average of 7%.
Zacks Rank #2
Growth Score: A
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GOL LINHAS-ADR (GOL): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
CATHAY PAC AIR (CPCAY): Free Stock Analysis Report
SKYWEST INC (SKYW): Free Stock Analysis Report
ANA HOLDINGS (ALNPY): Free Stock Analysis Report
AMER AIRLINES (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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The Fort Worth, TX-based American Airlines Group AAL has been a major sufferer with its shares losing over 8% as it has high exposure (6.2% of capacity) to the U.K. Other airline heavyweights like Delta Air Lines, Inc. DAL are also at risk following the disclosure of the results of the U.K. referendum which revealed that 51.9% of the votes were cast in favor of Brexit while 48.1% opposed the notion (read more: 4 U.S. Click to get this free report GOL LINHAS-ADR (GOL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report CATHAY PAC AIR (CPCAY): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report ANA HOLDINGS (ALNPY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The vote, last week, by Britons in favor of exiting the European Union (Brexit) shocked markets globally, taking indexes into a tail spin.
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Click to get this free report GOL LINHAS-ADR (GOL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report CATHAY PAC AIR (CPCAY): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report ANA HOLDINGS (ALNPY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The Fort Worth, TX-based American Airlines Group AAL has been a major sufferer with its shares losing over 8% as it has high exposure (6.2% of capacity) to the U.K. Other airline heavyweights like Delta Air Lines, Inc. DAL are also at risk following the disclosure of the results of the U.K. referendum which revealed that 51.9% of the votes were cast in favor of Brexit while 48.1% opposed the notion (read more: 4 U.S. Zacks Rank #1 P/E: 5.34 (versus 15.70 for the industry) Value Score: A ANA Holdings Inc.ALNPY : This Tokyo-based company offers scheduled & unscheduled air passenger as well as air courier services.
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Click to get this free report GOL LINHAS-ADR (GOL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report CATHAY PAC AIR (CPCAY): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report ANA HOLDINGS (ALNPY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The Fort Worth, TX-based American Airlines Group AAL has been a major sufferer with its shares losing over 8% as it has high exposure (6.2% of capacity) to the U.K. Other airline heavyweights like Delta Air Lines, Inc. DAL are also at risk following the disclosure of the results of the U.K. referendum which revealed that 51.9% of the votes were cast in favor of Brexit while 48.1% opposed the notion (read more: 4 U.S. Oil: Chief Benefactor It is common knowledge that cheap oil has benefited airline stocks immensely, resulting in massive savings as fuel represents one of the major expenses for carriers.
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The Fort Worth, TX-based American Airlines Group AAL has been a major sufferer with its shares losing over 8% as it has high exposure (6.2% of capacity) to the U.K. Other airline heavyweights like Delta Air Lines, Inc. DAL are also at risk following the disclosure of the results of the U.K. referendum which revealed that 51.9% of the votes were cast in favor of Brexit while 48.1% opposed the notion (read more: 4 U.S. Click to get this free report GOL LINHAS-ADR (GOL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report CATHAY PAC AIR (CPCAY): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report ANA HOLDINGS (ALNPY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Airline stocks had moved south each time there has been an act of terror in the recent past.
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7921.0
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2016-06-29 00:00:00 UTC
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Will Turkey Terrorist Attack Affect Independence Day Travel?
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AAL
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https://www.nasdaq.com/articles/will-turkey-terrorist-attack-affect-independence-day-travel-2016-06-29
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nan
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nan
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Soon after the Orlando shootout, the world has been shocked yet again by the latest terrorist attack in Turkey. The Ataturk international airport in Istanbul was attacked on Jun 28 by three suicide bombers. The incident resulted in 41 casualties apart from injuring many more. Foreigners too are likely to be among those victimized in the attack. All flights from the airport were suspended after the incident for a few hours.
One of the three attackers began shooting in the departures area before all three blew themselves in the arrivals hall. The Turkish police attempted to avert the incident by firing at the suicide bombers but the situation could not be contained.
Globally, leaders and heads of states have condemned this attack on Europe's third busiest airport. Although no terrorist or militant outfit has claimed responsibility for this attack yet, the attackers are suspected to bear allegiance to either ISIS or Kurdish PKK. ISIS is becoming a major threat in Europe as evidenced by the previous terrorist attacks in Brussels and Paris. Additionally, Turkey has been facing constant challenges from Kurdish militants in the country's southeast region.
Impact on U.S. Airlines
This attack is expected to have a global impact on airlines. The U.S. Federal Aviation Administration had earlier suspended all U.S. flights from the Ataturk airport, which was later lifted. The Port authority of New York and New Jersey have increased surveillance and patrol across the three major airports in the state following the attack.
Travelers have already been jittery about visiting Europe owing to earlier attacks in the continent and many might end up cancelling their travel plans post the latest incident. The U.S. Independence Day weekend is around the corner and hence, the aforesaid attack is expected to adversely impact U.S. airlines.
TRANSPORTATION-AIRLINE Industry Price Index
TRANSPORTATION-AIRLINE Industry Price Index
Airlines for America ("A4A") - the trade organization for leading U.S. airlines - expects summer traffic to reach an all-time high this year and surpass the record set in 2015 by 4%. Passenger traffic between Jun 1 and Aug 31 is likely to be around 231.1 million compared with 222.3 million in the year-ago comparable period. However, the airline industry stocks have still been underperforming owing to global issues resulting in delayed or cancelled plans.
Most of the top airlines, such as American Airlines Group Inc. AAL , Delta Air Lines Inc. DAL , United Continental Holding Inc.'s UAL United Airlines and Southwest Airlines Co. LUV , have been struggling to life passenger unit revenues despite higher margins due to low oil prices . Therefore, macroeconomic uncertainties and unprecedented attacks pose greater challenges for airline companies.
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SOUTHWEST AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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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Most of the top airlines, such as American Airlines Group Inc. AAL , Delta Air Lines Inc. DAL , United Continental Holding Inc.'s UAL United Airlines and Southwest Airlines Co. LUV , have been struggling to life passenger unit revenues despite higher margins due to low oil prices . Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The Port authority of New York and New Jersey have increased surveillance and patrol across the three major airports in the state following the attack.
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Most of the top airlines, such as American Airlines Group Inc. AAL , Delta Air Lines Inc. DAL , United Continental Holding Inc.'s UAL United Airlines and Southwest Airlines Co. LUV , have been struggling to life passenger unit revenues despite higher margins due to low oil prices . Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. TRANSPORTATION-AIRLINE Industry Price Index TRANSPORTATION-AIRLINE Industry Price Index Airlines for America ("A4A") - the trade organization for leading U.S. airlines - expects summer traffic to reach an all-time high this year and surpass the record set in 2015 by 4%.
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Most of the top airlines, such as American Airlines Group Inc. AAL , Delta Air Lines Inc. DAL , United Continental Holding Inc.'s UAL United Airlines and Southwest Airlines Co. LUV , have been struggling to life passenger unit revenues despite higher margins due to low oil prices . Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Impact on U.S. Airlines This attack is expected to have a global impact on airlines.
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Most of the top airlines, such as American Airlines Group Inc. AAL , Delta Air Lines Inc. DAL , United Continental Holding Inc.'s UAL United Airlines and Southwest Airlines Co. LUV , have been struggling to life passenger unit revenues despite higher margins due to low oil prices . Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Impact on U.S. Airlines This attack is expected to have a global impact on airlines.
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7922.0
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2016-06-28 00:00:00 UTC
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Tuesday’s Vital Data: Facebook Inc (FB), JPMorgan Chase & Co. (JPM) and American Airlines Group Inc (AAL)
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AAL
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https://www.nasdaq.com/articles/tuesdays-vital-data%3A-facebook-inc-fb-jpmorgan-chase-co.-jpm-and-american-airlines-group
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
After just two days of heavy selling in the wake of the Brexit vote, U.S. stock futures are in rally mode this morning.
Bargain hunting depressed assets appears to be the theme in early trading, as even oil (up 2.6% at $47.52 per barrel) and the British pound are gaining ground. However, whether the rally has staying power or is just a "dead cat bounce" remains to be seen.
At last check, U.S. stock futures on the Dow Jones Industrial Average had gained 1.20%, with S&P 500 futures up 1.12% and Nasdaq-100 futures higher by 1.15%.
Options activity remained hot and heavy on Monday, as selling pressure continued to drive speculative traders toward put contracts. Overall, 18.1 million calls and 21.9 million puts changed hands on Monday, with protection and ETFs claiming the bulk of the day's activity.
The Top 10 S&P 500 Dividend Stocks to Buy Now
Over on the CBOE, put volume moderated a bit from Friday, as the single-session equity put/call volume ratio fell to 0.81, while the 10-day moving average held at a one-month high of 0.73.
In equity option news, Facebook Inc (NASDAQ: FB ) emerges as a bargain amid the Brexit selloff, with call traders looking toward Instagram subscriber numbers for inspiration. Elsewhere, JPMorgan Chase & Co. (NYSE: JPM ) options traders bet on a dividend increase and increased share buybacks ahead of the Fed's second round of stress tests. Finally, American Airlines Group Inc (NASDAQ: AAL ) saw a spike in call volume despite heavy British exposure.
Facebook Inc (FB)
With bargain hunting as today's theme in the early going on Wall Street, Facebook stock has emerged as one of the potential prizes of the Brexit selloff. FB has been in a bit of a slump since April, with the stock facing stiff headwinds near $120, but the plunge of the past two sessions has put the stock in oversold territory.
What's more, Instagram subscriber numbers hit last week , with the service topping 500 million users - doubling its subscribers in just two years. On average, Instagram is adding 100 million users every nine months.
Options traders apparently realized FB's oversold status on Monday, with calls making up 64% of the session's more than 550,000 contracts in total volume. The weekly July 1 series was a hotbed of short-term activity on Monday, riddled with a mix of buy-to-open and sell-to-open activity, as open interest at the $110 strike jumped to 4,795 contracts. With FB stock up more than 1% at $110.38 in premarket action, $110 call buyers appear to have been smart money - if FB can hold this perch through Friday's close.
JPMorgan Chase & Co. (JPM)
JPMorgan stock drew heavy call volume on Monday, for many of the same reasons that Bank of America Corp. (NYSE: BAC ) is seeing increased bullish options activity. The Comprehensive Capital Analysis and Review (CCAR), or the second round of Federal Reserve stress tests , arrives on Wednesday, and will determine whether banks can afford to increase dividend payouts and share buyback plans.
Options traders are clearly banking on positive results for JPM stock, as calls snapped up 58% of yesterday's total volume of 378,000 contracts. Currently, weekly options traders have their sights set on the July 1 series $60 call strike, where 4,243 contracts are currently open. This out-of-the-money strike is currently asked at 21 cents, or $21 per contract, with traders needing JPM to rally more than 4.5% to realize a profit.
American Airlines Group Inc (AAL)
While banks have gotten the most attention following the Brexit vote, airline stocks have also been hammered - especially those with heavy exposure to the U.K. American Airlines Group, unfortunately, has the highest exposure to the region among U.S. carriers, and the stock has been punished harshly, shedding more than 18% in the past two sessions.
Apple Inc.: AAPL Stock Is Dancing on a Cliff
Options traders appear to be betting on a recovery for AAL stock, however, as call volume surged on Monday. Overall, 238,000 contracts traded on AAL yesterday, with calls accounting for 65% of the day's take.
Short-term speculators have been extremely busy, with open interest at the weekly July 1 series $25.50 strike call soaring to more than 12,000 contracts. This option was last asked at 83 cents, or $83 per contract. Should AAL's premarket action carry over into open, these $25.50 strike calls are set to trade in the money.
As of this writing, Joseph Hargett did not hold a position in any of the aforementioned securities.
More From InvestorPlace
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10 All-American Stocks to Buy Now
The post Tuesday's Vital Data: Facebook Inc (FB), JPMorgan Chase & Co. (JPM) and 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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Finally, American Airlines Group Inc (NASDAQ: AAL ) saw a spike in call volume despite heavy British exposure. American Airlines Group Inc (AAL) While banks have gotten the most attention following the Brexit vote, airline stocks have also been hammered - especially those with heavy exposure to the U.K. American Airlines Group, unfortunately, has the highest exposure to the region among U.S. carriers, and the stock has been punished harshly, shedding more than 18% in the past two sessions. Apple Inc.: AAPL Stock Is Dancing on a Cliff Options traders appear to be betting on a recovery for AAL stock, however, as call volume surged on Monday.
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More From InvestorPlace 10 Stocks You Should Buy at a Moment's Notice 10 All-American Stocks to Buy Now The post Tuesday's Vital Data: Facebook Inc (FB), JPMorgan Chase & Co. (JPM) and American Airlines Group Inc (AAL) appeared first on InvestorPlace . Finally, American Airlines Group Inc (NASDAQ: AAL ) saw a spike in call volume despite heavy British exposure. American Airlines Group Inc (AAL) While banks have gotten the most attention following the Brexit vote, airline stocks have also been hammered - especially those with heavy exposure to the U.K. American Airlines Group, unfortunately, has the highest exposure to the region among U.S. carriers, and the stock has been punished harshly, shedding more than 18% in the past two sessions.
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American Airlines Group Inc (AAL) While banks have gotten the most attention following the Brexit vote, airline stocks have also been hammered - especially those with heavy exposure to the U.K. American Airlines Group, unfortunately, has the highest exposure to the region among U.S. carriers, and the stock has been punished harshly, shedding more than 18% in the past two sessions. Apple Inc.: AAPL Stock Is Dancing on a Cliff Options traders appear to be betting on a recovery for AAL stock, however, as call volume surged on Monday. Finally, American Airlines Group Inc (NASDAQ: AAL ) saw a spike in call volume despite heavy British exposure.
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More From InvestorPlace 10 Stocks You Should Buy at a Moment's Notice 10 All-American Stocks to Buy Now The post Tuesday's Vital Data: Facebook Inc (FB), JPMorgan Chase & Co. (JPM) and American Airlines Group Inc (AAL) appeared first on InvestorPlace . Finally, American Airlines Group Inc (NASDAQ: AAL ) saw a spike in call volume despite heavy British exposure. American Airlines Group Inc (AAL) While banks have gotten the most attention following the Brexit vote, airline stocks have also been hammered - especially those with heavy exposure to the U.K. American Airlines Group, unfortunately, has the highest exposure to the region among U.S. carriers, and the stock has been punished harshly, shedding more than 18% in the past two sessions.
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7923.0
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2016-06-28 00:00:00 UTC
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Brexit Trounces Shares of American Airlines, Delta Air Lines, and United Continental
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AAL
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https://www.nasdaq.com/articles/brexit-trounces-shares-american-airlines-delta-air-lines-and-united-continental-2016-06-28
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nan
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nan
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Even before U.K. voters opted to leave the EU, shares of the top three U.S. airlines were trading near their 52-week lows. After the vote results were announced, American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) shares all plunged to levels not seen since 2014 or earlier.
American Airlines, Delta Air Lines, and United Continental Stock Performance, data by YCharts
"Brexit" will undoubtedly have a negative impact on American, Delta, and United. Nevertheless, investors appear to be overreacting to this news by sending all three stocks down by double digits over the course of the past two trading days.
Brexit will cause trouble
The U.K. is an important market for all three U.S. legacy carriers. Flights to the U.K. account for 6.2% of capacity at American Airlines, 5.3% at United Continental, and 2.7% at Delta Air Lines, according to a Buckingham Research analysis .
This actually understates the U.K. exposure of American and Delta. American Airlines has a joint venture with U.K. flag carrier British Airways, while Delta has a joint venture with -- and also owns 49% of -- Virgin Atlantic. As a result, profit declines on U.S.-U.K. routes at British Airways and Virgin Atlantic would reduce the earnings of American and Delta, respectively.
American Airlines has the largest U.K. exposure of any U.S. airline. Image source: American Airlines.
The International Air Transport Association estimates that Brexit could reduce U.K. air travel passenger volume by 3%-5% by 2020, due to a 2.5%-3.5% decline in GDP that will never be recovered. The falling British pound will have an additional impact on outbound travel from the U.K., but the IATA believes that this will be offset by more tourists flying to the U.K. to take advantage of the favorable exchange rate.
Brexit's impact on legacy carrier profitability would extend beyond lower passenger volumes, though. London has a high concentration of premium demand from business travelers. A fall in business confidence could reduce demand for pricey business class tickets between the U.S. and London, having a disproportionate negative impact on unit revenue and earnings.
Airlines can react
The good news for investors is that airlines can adapt to changing demand trends. In this case, American, Delta, and United are likely to start reducing their capacity in the U.K. at the first sign of unit revenue weakness there.
In a worst case scenario, airlines would have to ground some planes. Even that wouldn't be the end of the world, as they would presumably remove their least cost-efficient planes from service first. However, they may also be able to redeploy some capacity from the U.K. to domestic routes or better-performing international markets.
These stocks are too cheap
By the end of the day on Monday, American Airlines and United Continental both traded for less than five times their projected 2016 earnings. Delta's valuation was only slightly higher, at 5.3 times the average 2016 analyst earnings estimate.
Airline stock valuations may have fallen too far. Image source: The Motley Fool.
While the airlines' profit margins will probably decline a bit from their 2015-2016 highs in the next year or two, the stocks are currently pricing in extremely severe margin contraction. As long as airlines remain willing to cut capacity in underperforming markets when necessary, the probability of this "doomsday" scenario occurring is remote.
For example, a downturn in Europe may be offset by improvements in Brazil and Japan. These markets have been trouble spots in recent years due in part to currency weakness, but the Brazilian real and Japanese yen have appreciated against the dollar recently.
Longer-term, if Brexit causes multinational corporations to shift jobs from London to the rest of Europe, it could boost travel from the U.S. to major business centers like Amsterdam, Frankfurt, Paris, Rome, and Zurich. That would play into the hands of Delta and United, whose joint venture partners have hubs in those cities.
Legacy carrier airline stocks may not be worth as much today as they were one week ago. But after markdowns ranging from 13% (Delta Air Lines) to 17% (American Airlines) they are even better buying opportunities for long-term investors willing to ride out heavy volatility in the months and years ahead.
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Adam Levine-Weinberg owns shares of United Continental Holdings and is long January 2017 $40 calls on Delta Air Lines and long January 2017 $30 calls on American Airlines Group. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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After the vote results were announced, American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) shares all plunged to levels not seen since 2014 or earlier. The falling British pound will have an additional impact on outbound travel from the U.K., but the IATA believes that this will be offset by more tourists flying to the U.K. to take advantage of the favorable exchange rate. Longer-term, if Brexit causes multinational corporations to shift jobs from London to the rest of Europe, it could boost travel from the U.S. to major business centers like Amsterdam, Frankfurt, Paris, Rome, and Zurich.
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After the vote results were announced, American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) shares all plunged to levels not seen since 2014 or earlier. As a result, profit declines on U.S.-U.K. routes at British Airways and Virgin Atlantic would reduce the earnings of American and Delta, respectively. Adam Levine-Weinberg owns shares of United Continental Holdings and is long January 2017 $40 calls on Delta Air Lines and long January 2017 $30 calls on American Airlines Group.
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After the vote results were announced, American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) shares all plunged to levels not seen since 2014 or earlier. American Airlines, Delta Air Lines, and United Continental Stock Performance, data by YCharts "Brexit" will undoubtedly have a negative impact on American, Delta, and United. Adam Levine-Weinberg owns shares of United Continental Holdings and is long January 2017 $40 calls on Delta Air Lines and long January 2017 $30 calls on American Airlines Group.
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After the vote results were announced, American Airlines (NASDAQ: AAL) , Delta Air Lines (NYSE: DAL) , and United Continental (NYSE: UAL) shares all plunged to levels not seen since 2014 or earlier. American Airlines, Delta Air Lines, and United Continental Stock Performance, data by YCharts "Brexit" will undoubtedly have a negative impact on American, Delta, and United. Brexit will cause trouble The U.K. is an important market for all three U.S. legacy carriers.
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7924.0
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2016-06-27 00:00:00 UTC
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Nasdaq 100 Movers: NXPI, CMCSA
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-nxpi-cmcsa-2016-06-27
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nan
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nan
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In early trading on Monday, shares of Comcast ( CMCSA ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.0%. Year to date, Comcast registers a 10.3% gain.
And the worst performing Nasdaq 100 component thus far on the day is NXP Semiconductors ( NXPI ), trading down 5.9%. NXP Semiconductors is lower by about 10.6% looking at the year to date performance.
Two other components making moves today are American Airlines Group ( AAL ), trading down 5.9%, and Alexion Pharmaceuticals ( ALXN ), trading up 0.6% on the day.
VIDEO: Nasdaq 100 Movers: NXPI, CMCSA
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 5.9%, and Alexion Pharmaceuticals ( ALXN ), trading up 0.6% on the day. And the worst performing Nasdaq 100 component thus far on the day is NXP Semiconductors ( NXPI ), trading down 5.9%. NXP Semiconductors is lower by about 10.6% looking at the year to date performance.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 5.9%, and Alexion Pharmaceuticals ( ALXN ), trading up 0.6% on the day. And the worst performing Nasdaq 100 component thus far on the day is NXP Semiconductors ( NXPI ), trading down 5.9%. VIDEO: Nasdaq 100 Movers: NXPI, CMCSA The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 5.9%, and Alexion Pharmaceuticals ( ALXN ), trading up 0.6% on the day. In early trading on Monday, shares of Comcast ( CMCSA ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.0%. And the worst performing Nasdaq 100 component thus far on the day is NXP Semiconductors ( NXPI ), trading down 5.9%.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 5.9%, and Alexion Pharmaceuticals ( ALXN ), trading up 0.6% on the day. And the worst performing Nasdaq 100 component thus far on the day is NXP Semiconductors ( NXPI ), trading down 5.9%. NXP Semiconductors is lower by about 10.6% looking at the year to date performance.
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7925.0
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2016-06-27 00:00:00 UTC
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The Zacks Analyst Blog Highlights: American Airlines Group, JetBlue Airways, Ryanair Holdings, Delta Air Lines 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-jetblue-airways-ryanair
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nan
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For Immediate Release
Chicago, IL - June 27, 2016 - 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 ( AAL ), JetBlue Airways Corp. ( JBLU ), Ryanair Holdings ( RYAAY ), Delta Air Lines, Inc. ( DAL ) and United Continental Holdings ( UAL ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Friday's Analyst Blog:
4 U.S. Airline Stocks at Risk as U.K. Votes for Brexit
Putting all speculation to rest, the Britons have voted in favor of exiting the European Union. Results of the U.K. referendum revealed that 51.9% of the votes (17,410,742) were cast in favor of Brexit while 48.1% (16,141,242) opposed the notion.
Going into details, 53.2%, 38%, 51.7% and 44.3% of the participants in England, Scotland, Wales and Northern Ireland, respectively, cast their votes in support of leaving the bloc after over four decades. As had been widely expected, the Brexit decision has created ripples throughout the world, rattling the global financial market.
Following Britain's decision to depart, the pound has taken a beating, slumping to its lowest point in 30 years. Also, the FTSE 100 tanked over 8% immediately after the commencement of trading. The impact has been so severe that Prime Minister David Cameron announced his decision to resign by October. The effects of Brexit are expected to catastrophic as far as British markets are concerned, at least in the short term.
US Markets to Feel the Tremor
In such a scenario, the ripple effects are expected to be felt across the Atlantic. With Britain accounting for 10% of revenues for 30 S&P 500 players, things do not seem to be rosy for US stocks. In fact, firms in the U.S. with exposure to Britain are likely to hit badly with the tumbling pound reducing U.S. earnings on repatriating the income.
Airlines to Face the Brunt?
The airline sector is already grappling with the effects of the recent terror attacks - the mass shooting at a nightclub in Orlando and the explosion at the Shanghai Pudong airport. Fears of travel demand waning with such attacks on the rise have caused carriers like American Airlines Group ( AAL ) and JetBlue Airways Corp. ( JBLU ) to trade near/at their 52-week lows. Apart from this, airlines are struggling with respect to unit revenues.
The tough times for airlines is exemplified by the NYSE ARCA Airline index declining over 4% since the Orlando shootings. Moreover, the bearish effect on the industry can be gauged from the from the fact that the "Trans-Airline" sector currently has a Zacks Industry Rank #204 - placing it in the bottom 1/3rd of the 260+ industry groups. The Brexit decision has worsened matters for U.S. airlines with exposure to Britain.
In fact, European airlines like British Airways and Ryanair Holdings ( RYAAY ) might face the brunt with leisure and business travel demand taking a hit. Moreover, Britain, by virtue of its EU membership, has been part of the EU's single aviation market till today. Consequently, carriers of member states could fly freely to/within members. Now with Britain exiting EU, the entire issue has become complex.
What's in Store for US Carriers?
We expect U.S. airlines to be hit by the Brexit results too. In fact, carriers with significant exposure are likely to feel the pinch more than others. The 2007 open skies agreement had facilitated the travel of U.S. through the EU apart from encouraging tie-ups with their European counterparts. Now with Brexit materializing, the future direction to be taken by the EU-US Open Skies Agreement is anybody's guess. For now, we have identified 4 U.S. carriers that could be at risk following UK's vote to leave the EU.
American Airlines Group Inc: Based in Fort Worth, Texas, the carrier has high exposure to Britain mainly due to its partnership with British Airways. The partnership apart, the carrier apparently has a higher exposure to UK than its peers with respect to capacity with 6.2% of round-trip capacity focused on the nation.
Delta Air Lines, Inc. ( DAL ) : Based in Atlanta, GA, the carrier operates quite a number of flights to Britain and has a significant stake in British airline -Virgin Atlantic. Last month, Delta strengthened its ties with Virgin Atlantic. The carriers altered their respective schedules for the summer of 2017 to facilitate travel between the U.S. and the U.K. The introduction of four weekly flights connecting Portland and London from May 26, 2017, was the highlight of the program. The Brexit vote has tossed the future of this partnership.
United Continental Holdings ( UAL ) : This Chicago-based carrier flies extensively to the U.K. which could hurt its profits substantially. In fact, the carrier is likely to be affected the most according to an Investors' News Daily report.
Alaska Air Group : This Seattle, WA-based owner of Alaska Airlines might also feel the pinch of Britain's departure. The carrier has a partnership with British Airways for some of its key routes. Usually passengers travelling domestically with Alaska book the carry forward trip on one of its partner airlines such as British Airways. With the pound losing value with respect to the U.S. dollar, traffic from Britain will is likely to suffer. As a result, Alaska's revenue and volumes would decline on domestic routes which serve as connectors for trans-Atlantic destinations.
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AMER AIRLINES (AAL): Free Stock Analysis Report
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RYANAIR HLDGS (RYAAY): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Fears of travel demand waning with such attacks on the rise have caused carriers like American Airlines Group ( AAL ) and JetBlue Airways Corp. ( JBLU ) to trade near/at their 52-week lows. Stocks recently featured in the blog include American Airlines Group ( AAL ), JetBlue Airways Corp. ( JBLU ), Ryanair Holdings ( RYAAY ), Delta Air Lines, Inc. ( DAL ) and United Continental Holdings ( UAL ). Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): 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 ( AAL ), JetBlue Airways Corp. ( JBLU ), Ryanair Holdings ( RYAAY ), Delta Air Lines, Inc. ( DAL ) and United Continental Holdings ( UAL ). Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report To read this article on Zacks.com click here. Fears of travel demand waning with such attacks on the rise have caused carriers like American Airlines Group ( AAL ) and JetBlue Airways Corp. ( JBLU ) to trade near/at their 52-week lows.
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Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include American Airlines Group ( AAL ), JetBlue Airways Corp. ( JBLU ), Ryanair Holdings ( RYAAY ), Delta Air Lines, Inc. ( DAL ) and United Continental Holdings ( UAL ). Fears of travel demand waning with such attacks on the rise have caused carriers like American Airlines Group ( AAL ) and JetBlue Airways Corp. ( JBLU ) to trade near/at their 52-week lows.
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Want the latest recommendations from Zacks Investment Research? Stocks recently featured in the blog include American Airlines Group ( AAL ), JetBlue Airways Corp. ( JBLU ), Ryanair Holdings ( RYAAY ), Delta Air Lines, Inc. ( DAL ) and United Continental Holdings ( UAL ). Fears of travel demand waning with such attacks on the rise have caused carriers like American Airlines Group ( AAL ) and JetBlue Airways Corp. ( JBLU ) to trade near/at their 52-week lows.
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7926.0
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2016-06-27 00:00:00 UTC
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Brexit Is Happening: 1 Big Airline Loser -- And 1 Winner
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AAL
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https://www.nasdaq.com/articles/brexit-happening-1-big-airline-loser-and-1-winner-2016-06-27
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nan
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On Thursday, voters in the United Kingdom narrowly approved a referendum to leave the EU. The unexpected result has already inflicted turmoil on global financial markets.
The ultimate economic impact of the U.K. exiting the EU is still hard to discern. Some airlines are likely to be negatively affected by the decision. Others won't feel much of an impact at all -- or could even benefit. American Airlines (NASDAQ: AAL) is likely to be a big loser from "Brexit." By contrast, Hawaiian Holdings (NASDAQ: HA) could be one of the few beneficiaries.
Turmoil in a key international market
Among U.S.-based airlines, American Airlines has the largest presence in the United Kingdom, representing more than 6% of its total capacity. Together with joint venture partner British Airways, it holds a dominant share of the U.S.-U.K. travel market, especially the key New York-London route.
US Dollar to Japanese Yen Exchange Rate , data by YCharts
This is important because Japan is Hawaiian Airlines' largest international market. In fact, it's about to get larger. Hawaiian plans to add a new daily flight from Tokyo's Narita Airport to Honolulu next month. It also hopes to add a second daily flight from Tokyo's Haneda Airport to Hawaii later this year. Together, these routes would nearly double Hawaiian Airlines' capacity from Japan.
In the past few years, a falling yen has repeatedly pressured Hawaiian Airlines' unit revenue. By contrast, the yen has now appreciated by about 20% against the dollar over the past year, ending last week at 102 yen/dollar. Not only does that raise the value of yen-denominated ticket sales, it also makes it cheaper for Japanese tourists to visit Hawaii.
The rising yen is likely to drive strong unit revenue growth for Hawaiian Airlines in Japan, just as it expands its presence there. This should more than offset the modest negative impact of Brexit on the carrier's other markets.
Airlines can adapt
The good news for airline investors is that while the airline industry is very capital-intensive, those capital investments are mobile. Hawaiian Airlines has made frequent changes to its international route network in recent years as market conditions have evolved. If there is a slump in the British air travel market, American Airlines can do likewise, redeploying some capacity to better-performing markets.
Additionally, the Brexit vote caused oil prices to slump 5% on Friday. If oil prices continue to trend lower, that will help offset any Brexit-related revenue weakness.
Still, for airline investors, Hawaiian Holdings looks like the better bet right now. In an environment where unit revenue is eroding for many airlines, Hawaiian sits in a privileged position due to the healthy supply demand dynamics in most of its key markets.
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Adam Levine-Weinberg owns shares of Hawaiian Holdings and is long January 2017 $30 calls on American Airlines Group and short October 2016 $50 calls on Hawaiian Holdings. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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American Airlines (NASDAQ: AAL) is likely to be a big loser from "Brexit." Together with joint venture partner British Airways, it holds a dominant share of the U.S.-U.K. travel market, especially the key New York-London route. US Dollar to Japanese Yen Exchange Rate , data by YCharts This is important because Japan is Hawaiian Airlines' largest international market.
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American Airlines (NASDAQ: AAL) is likely to be a big loser from "Brexit." By contrast, Hawaiian Holdings (NASDAQ: HA) could be one of the few beneficiaries. Turmoil in a key international market Among U.S.-based airlines, American Airlines has the largest presence in the United Kingdom, representing more than 6% of its total capacity.
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American Airlines (NASDAQ: AAL) is likely to be a big loser from "Brexit." Turmoil in a key international market Among U.S.-based airlines, American Airlines has the largest presence in the United Kingdom, representing more than 6% of its total capacity. Airlines can adapt The good news for airline investors is that while the airline industry is very capital-intensive, those capital investments are mobile.
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American Airlines (NASDAQ: AAL) is likely to be a big loser from "Brexit." Turmoil in a key international market Among U.S.-based airlines, American Airlines has the largest presence in the United Kingdom, representing more than 6% of its total capacity. This should more than offset the modest negative impact of Brexit on the carrier's other markets.
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7927.0
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2016-06-24 00:00:00 UTC
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Southwest Airlines Down on Dull View, Aircraft Delivery Delay
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-down-on-dull-view-aircraft-delivery-delay-2016-06-24
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Southwest Airlines Co.LUV recently announced a bleak outlook for the second quarter of 2016. The company now expects passenger revenue per available seat mile (PRASM) to rise by less than 1% this quarter. As per its earlier guidance, Southwest Airlines had expected a modest increase in this metric.
Shares of Southwest Airlines fell by 1.66% post this announcement.
The Zack Ranks #4 (Sell) stock also intends to delay the delivery from The Boeing Company of 67 new Boeing 737 Max jets by almost six years to manage capital spending. The planes, which were initially expected between 2019 and 2022, will now be delivered between 2023 and 2025. As a result, the company capital expenditure will be reduced by $1.9 billion.
At present, the company has 330 planes on order up till 2025. Being the fourth-largest airlines in the U.S, Southwest expects the number of aircrafts in it s fleet to reduce from 723 planes at the end of 2016 to 700 by 2017. The company would resume its fleet expansion plans after this period.
SOUTHWEST AIR Price
SOUTHWEST AIR Price | SOUTHWEST AIR Quote
Troubled times for Airline Industry
Airline industry stocks in general have been underperforming due to heightened concerns associated with terrorist attacks, low demand, and macroeconomic issues with Britain's decision to leave the European Union - popularly termed Brexit. Nonetheless, Southwest Airlines enjoys a more positive performance outlook than its peers, such as American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL and United Continental Holdings, Inc. UAL .
However, the delay in delivery of planes does raise concerns in the market that an overall muted demand in the industry might result in other airlines following the same path. As a result, shares of Boeing fell too after the Southwest announcement. Nonetheless, the stock retained value and inched up 1.4% by the time the market closed. Airlines have been enjoying higher margins due to low oil prices but average airfares have been falling and increasing concerns for investors.
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SOUTHWEST AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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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Nonetheless, Southwest Airlines enjoys a more positive performance outlook than its peers, such as American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL and United Continental Holdings, Inc. UAL . Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Being the fourth-largest airlines in the U.S, Southwest expects the number of aircrafts in it s fleet to reduce from 723 planes at the end of 2016 to 700 by 2017.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Nonetheless, Southwest Airlines enjoys a more positive performance outlook than its peers, such as American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL and United Continental Holdings, Inc. UAL . SOUTHWEST AIR Price SOUTHWEST AIR Price | SOUTHWEST AIR Quote Troubled times for Airline Industry Airline industry stocks in general have been underperforming due to heightened concerns associated with terrorist attacks, low demand, and macroeconomic issues with Britain's decision to leave the European Union - popularly termed Brexit.
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Nonetheless, Southwest Airlines enjoys a more positive performance outlook than its peers, such as American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL and United Continental Holdings, Inc. UAL . Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. SOUTHWEST AIR Price SOUTHWEST AIR Price | SOUTHWEST AIR Quote Troubled times for Airline Industry Airline industry stocks in general have been underperforming due to heightened concerns associated with terrorist attacks, low demand, and macroeconomic issues with Britain's decision to leave the European Union - popularly termed Brexit.
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Nonetheless, Southwest Airlines enjoys a more positive performance outlook than its peers, such as American Airlines Group Inc. AAL , Delta Air Lines, Inc. DAL and United Continental Holdings, Inc. UAL . Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Southwest Airlines Co.LUV recently announced a bleak outlook for the second quarter of 2016.
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7928.0
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2016-06-24 00:00:00 UTC
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Why American Airlines Group Inc (AAL), Royal Bank of Scotland Group PLC (RBS) and United States Steel Corporation (X) Are 3 of Today’s Worst Stocks
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-group-inc-aal-royal-bank-of-scotland-group-plc-rbs-and-united-states
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nan
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
In a referendum vote that shocked most of the world, Britain will begin its exit from the European Union, bringing an end to several years of (admittedly strained) membership in the political/economic bloc. Unsure of what happens now, traders chose to not take any chances and simply shed stocks until the dust settles. By the time the closing bell rang, the S&P 500 was at 2037.31, down 3.6% for the day.
Leading the bearish charge were American Airlines Group Inc (NASDAQ: AAL ), Royal Bank of Scotland Group PLC (NYSE: RBS ) and United States Steel Corporation (NYSE: X ). Here's what went wrong for each.
Royal Bank of Scotland Group PLC (RBS)
There's little doubt as to what spurred the 27% tumble from Royal Bank of Scotland Group shares today - the Brexit vote. The maneuver poses a threat to the nation's banks . Aside from potentially barring the industry's cross-border operation rights, the ties it's breaking with its EU trade partners could turn into outright economic stagnation.
RBS was hardly the only British bank to run into a headwind, though. Lloyds Banking Group PLC (NYSE: LYG ) shares also fell 23%, while Barclays PLC (NYSE: BCS ) closed 21% lower.
10 Stocks That Can Withstand the Brexit
Even with the Brexit overhang, however, it's possible the market unduly punished Britain's banks. The bullish case for RBS, LYG and most others after Friday's meltdown actually holds some water.
United States Steel Corporation (X)
British bank stocks were hardly the only stocks to get hard by Brexit on Friday, however. Stocks across the pond from completely different industries were hit similarly hard.
Case in point: United States Steel Corporation - better known as just U.S. Steel - fell more than 11% today.
The cause wasn't the same as the reason RBS and LYG were torpedoed though… at least not directly. X was upended because commodity prices plunged, and commodity prices plunged because the U.S. dollar surged. The U.S. dollar surged because (and here's the tie-in) the British pound got rocked, falling to a multi-decade low of $1.322 versus the U.S. dollar .
There's more presumption than certainty with the stumble from X and its basic materials/commodities peers, but presumption still managed to do plenty of damage.
American Airlines Group Inc (AAL)
Last but not least, Brexit's impact was far and wide today, even affecting U.S. airlines.
Yes, the plunge in commodity prices - including the 4.9% stumble from crude oil - will eventually lead to cheaper jet fuel prices, setting up cheaper operating costs for the likes of American Airlines Group and peer/rival Delta Air Lines, Inc. (NYSE: DAL ).
Dividend Aristocrats to Buy at Bargain Basement Prices
But the ripple effect of Britain's exit from the EU will also have a straightforward ripple effect on the economy, perhaps slowing economic growth down to a crawl. If that happens, demand for air travel could wither.
AAL ended the day down more than 11%, as it's got more than its fair share of exposure to the European market . DAL wasn't too far behind, though, with DAL more than an 8% loss of its own.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
More From InvestorPlace
The Brexit: Is It 2008 All Over Again?
10 Stocks You Should Be Ready to Buy at a Moment's Notice
The post Why American Airlines Group Inc (AAL), Royal Bank of Scotland Group PLC (RBS) and United States Steel Corporation (X) Are 3 of Today's Worst Stocks 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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Leading the bearish charge were American Airlines Group Inc (NASDAQ: AAL ), Royal Bank of Scotland Group PLC (NYSE: RBS ) and United States Steel Corporation (NYSE: X ). American Airlines Group Inc (AAL) Last but not least, Brexit's impact was far and wide today, even affecting U.S. airlines. AAL ended the day down more than 11%, as it's got more than its fair share of exposure to the European market .
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Leading the bearish charge were American Airlines Group Inc (NASDAQ: AAL ), Royal Bank of Scotland Group PLC (NYSE: RBS ) and United States Steel Corporation (NYSE: X ). 10 Stocks You Should Be Ready to Buy at a Moment's Notice The post Why American Airlines Group Inc (AAL), Royal Bank of Scotland Group PLC (RBS) and United States Steel Corporation (X) Are 3 of Today's Worst Stocks appeared first on InvestorPlace . American Airlines Group Inc (AAL) Last but not least, Brexit's impact was far and wide today, even affecting U.S. airlines.
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Leading the bearish charge were American Airlines Group Inc (NASDAQ: AAL ), Royal Bank of Scotland Group PLC (NYSE: RBS ) and United States Steel Corporation (NYSE: X ). 10 Stocks You Should Be Ready to Buy at a Moment's Notice The post Why American Airlines Group Inc (AAL), Royal Bank of Scotland Group PLC (RBS) and United States Steel Corporation (X) Are 3 of Today's Worst Stocks appeared first on InvestorPlace . American Airlines Group Inc (AAL) Last but not least, Brexit's impact was far and wide today, even affecting U.S. airlines.
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Leading the bearish charge were American Airlines Group Inc (NASDAQ: AAL ), Royal Bank of Scotland Group PLC (NYSE: RBS ) and United States Steel Corporation (NYSE: X ). American Airlines Group Inc (AAL) Last but not least, Brexit's impact was far and wide today, even affecting U.S. airlines. AAL ended the day down more than 11%, as it's got more than its fair share of exposure to the European market .
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7929.0
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2016-06-24 00:00:00 UTC
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American Airlines Slumps on Brexit Fears
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AAL
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https://www.nasdaq.com/articles/american-airlines-slumps-brexit-fears-2016-06-24
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nan
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Image source: American Airlines.
What: Shares of American Airlines (NASDAQ: AAL) slumped on Friday following the success of the U.K. referendum to exit the European Union. At 3 p.m. ET, the stock was down about 10%.
So what: While many stocks have been hit hard due to the Brexit, investors appear particularly worried about American Airlines. The company has more exposure to the U.K. than other major U.S. carriers, with 6% to 7% of its capacity affected, according to analyst estimates. The U.K. will presumably need to renegotiate agreements that allow domestic carriers to access foreign markets once it officially exits the European Union, potentially disrupting American Airlines' partnership with British Airways.
Currency is another problem. With the value of the British pound plunging relative to the U.S. dollar on Friday, currency translation effects could take a bite out of American Airlines' numbers. General economic uncertainty is another problem. Any slowdown in travel to and from the U.K. could hurt American Airlines' results.
Now what: There may be short-term pain for American Airlines (and for any company exposed to the United Kingdom). But a 10% decline in the stock price seems like an overreaction. Investors were panicking on Friday, selling pretty much everything, and American Airlines stock got knocked down as a result.
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Timothy Green has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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What: Shares of American Airlines (NASDAQ: AAL) slumped on Friday following the success of the U.K. referendum to exit the European Union. The U.K. will presumably need to renegotiate agreements that allow domestic carriers to access foreign markets once it officially exits the European Union, potentially disrupting American Airlines' partnership with British Airways. With the value of the British pound plunging relative to the U.S. dollar on Friday, currency translation effects could take a bite out of American Airlines' numbers.
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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. What: Shares of American Airlines (NASDAQ: AAL) slumped on Friday following the success of the U.K. referendum to exit the European Union. The U.K. will presumably need to renegotiate agreements that allow domestic carriers to access foreign markets once it officially exits the European Union, potentially disrupting American Airlines' partnership with British Airways.
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What: Shares of American Airlines (NASDAQ: AAL) slumped on Friday following the success of the U.K. referendum to exit the European Union. So what: While many stocks have been hit hard due to the Brexit, investors appear particularly worried about American Airlines. Investors were panicking on Friday, selling pretty much everything, and American Airlines stock got knocked down as a result.
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What: Shares of American Airlines (NASDAQ: AAL) slumped on Friday following the success of the U.K. referendum to exit the European Union. ET, the stock was down about 10%. Investors were panicking on Friday, selling pretty much everything, and American Airlines stock got knocked down as a result.
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7930.0
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2016-06-23 00:00:00 UTC
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The Zacks Analyst Blog Highlights: United Continental Holdings, Spirit Airlines, GOL Linhas Aereas Inteligentes S.A., American Airlines Group and Southwest Airlines
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-united-continental-holdings-spirit-airlines-gol-linhas
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For Immediate Release
Chicago, IL - June 23, 2016 - 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 United Continental Holdings, Inc. ( UAL ), Spirit Airlines ( SAVE ), GOL Linhas Aereas Inteligentes S.A. ( GOL ), American Airlines Group ( AAL ) and Southwest Airlines ( LUV ).
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
The past week saw United Continental Holdings, Inc. ( UAL ) issuing an improved outlook with respect to passenger revenue per available seat mile (PRASM: a key measure of unit revenue) for the second quarter of 2016. The company, at an investor call, also highlighted its plans to improve financial performance and operations. The announcement found favor with the investors and the stock gained 3.36% on Jun 21 to close at $44.86.
Low-cost carrier Spirit Airlines ( SAVE ) also rallied following its upgrade by Credit Suisse. On the traffic front, Latin American carrier GOL Linhas Aereas Inteligentes S.A. ( GOL ) revealed disappointing numbers for the month of May. Load factor (% of seats filled by passengers) declined as the contraction in traffic was more than that in capacity.
Meanwhile, according to the employment data for passenger airlines, there was a substantial year-over-year increase in full-time equivalent (FTE) employment this April.
On the price front, the NYSE ARCA Airline index gained only 0.26% to $82.98 over the past week.
Read the last Airline Stock Roundup for June 15, 2016 .
TRANSPORTATION-AIRLINE Industry Price Index
Recap of the Past Week's Most Important Stories
1. Chicago-based United Continental Holdings, which has been struggling for long, recently revealed plans to boost revenues, trim costs in a bid to improve its financial performance and gain customers. The company also unveiled an improved PRASM outlook for the second quarter of 2016.
The company now expects the metric to fall in the band of 6.5% to 7.5% (earlier forecast had called for a 6.5% to 8.5% decline). Through the proper execution of its initiatives, the carrier aims to generate additional revenues of $3.1 billion by 2018 ($300 million through operational improvement, $1.5 billion through commercial betterment and $1.3 billion by trimming cost structure).
2. GOL Linhas, weighed down by weak economic conditions and currency headwinds, reported dismal traffic numbers in May with all three key metrics viz. traffic, capacity and load factor moving south. Traffic - measured in revenue passenger kilometers (RPK) - stood at 2.80 billion, down 7.8% from a year ago.
Also, on a year-over-year basis, consolidated capacity (or available seat kilometers/ASKs) was down 6.6% to 3.74 billion mainly because of declines of 6.3% and 8.8% in domestic and international capacity, respectively. Load factor contracted 90 basis points to 74.9% in May 2016. Furthermore, in the month, the carrier witnessed a 21.3% decline in the volume of departures.
3. According to data released by the Bureau of Transportation Statistics, there was a 3.6% increase in the number of workers employed by U.S. scheduled passenger airlines. This marked the 29th consecutive month of year-over-year increase. The report also stated that the number of FTEs (407,763) for Apr 2016 was the highest since Jul 2008. According to the update, the most number of FTEs in the month were employed by the American Airlines Group ( AAL ), among the network airlines. Southwest Airlines ( LUV ) took the honors in the low-cost carrier category.
4. Good news flowed in for Spirit Airlines as analysts at Credit Suisse upgraded the rating on the stock to "Outperform." The firm also raised its target price on the carrier as analysts are bullish on its 2017 prospects despite increasing oil prices . Not only 2017, analysts expect performance of the low-cost carrier with respect to unit revenue to be better than its peers in the second half of 2016 as well.
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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 CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
SPIRIT AIRLINES (SAVE): Free Stock Analysis Report
GOL LINHAS-ADR (GOL): Free Stock Analysis Report
SOUTHWEST AIR (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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Stocks recently featured in the blog include United Continental Holdings, Inc. ( UAL ), Spirit Airlines ( SAVE ), GOL Linhas Aereas Inteligentes S.A. ( GOL ), American Airlines Group ( AAL ) and Southwest Airlines ( LUV ). According to the update, the most number of FTEs in the month were employed by the American Airlines Group ( AAL ), among the network airlines. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report GOL LINHAS-ADR (GOL): Free Stock Analysis Report SOUTHWEST AIR (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 United Continental Holdings, Inc. ( UAL ), Spirit Airlines ( SAVE ), GOL Linhas Aereas Inteligentes S.A. ( GOL ), American Airlines Group ( AAL ) and Southwest Airlines ( LUV ). Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report GOL LINHAS-ADR (GOL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. According to the update, the most number of FTEs in the month were employed by the American Airlines Group ( AAL ), among the network airlines.
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Stocks recently featured in the blog include United Continental Holdings, Inc. ( UAL ), Spirit Airlines ( SAVE ), GOL Linhas Aereas Inteligentes S.A. ( GOL ), American Airlines Group ( AAL ) and Southwest Airlines ( LUV ). Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report GOL LINHAS-ADR (GOL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. According to the update, the most number of FTEs in the month were employed by the American Airlines Group ( AAL ), among the network airlines.
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Stocks recently featured in the blog include United Continental Holdings, Inc. ( UAL ), Spirit Airlines ( SAVE ), GOL Linhas Aereas Inteligentes S.A. ( GOL ), American Airlines Group ( AAL ) and Southwest Airlines ( LUV ). According to the update, the most number of FTEs in the month were employed by the American Airlines Group ( AAL ), among the network airlines. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report GOL LINHAS-ADR (GOL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report To read this article on Zacks.com click here.
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7931.0
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2016-06-22 00:00:00 UTC
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United Airlines Up on Announcement of Plans to Drive Value
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AAL
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https://www.nasdaq.com/articles/united-airlines-up-on-announcement-of-plans-to-drive-value-2016-06-22
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nan
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nan
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United Airlines, a subsidiary of United Continental Holdings Inc.UAL , recently announced its plans to streamline its operations to bring itself back on the path of growth and profitability. At its investor call, the company outlined revenue enhancing and cost-cutting targets along with improving its outlook for the second quarter of 2016. United Airlines now expects passenger unit revenue to decline by 6.5-7.5% as against 6.5-8.5% projected earlier.
The company's shares gained 3.36% after these announcements.
United's Future Plans
United Airlines is aiming for revenue and efficiency gain of $3.1 billion through 2018. Three key target areas for implantation of its plans include commercial enhancements to increase revenues, cost structure improvisations to boost margins and better operational performance to enhance efficiency.
United Airlines expects commercial organizations to create value worth $1.5 billion. Customer segmentation is expected to generate $1 billion of revenues. United Airlines also expects to increase economy and front-cabin seating by 20% and 30%, respectively and boost third party channel sales to generate a total value of $750 million through 2018. New products like competitive entry level fares and customer centric bundled products are expected to generate $150 million and $100 million, respectively. In addition to customer segmentation, revenue enhancements are expected to generate approximately $500 million through a revamped Mileage Plus program ($300 million) and better revenue management system ($200 million).
The company expects redesigning of its cost structure to generate value worth $1.3 billion by 2018. United will be installing slimline seats and upgauge aircrafts to gain about $800 million. Effective cost-management programs comprising advance technology and integrated systems should help the company save another $500 million.
The company expects to generate the remaining $300 million from operational improvement. United has faced traveler ire in the past for cancellations as well as late arrivals and departures. However, the company has worked on these drawbacks and achieved better on-time arrival performances this year. By working on its shortcomings, the company exepcts to regain the confidence of its customers
In addition to its value-generating initiatives, the company will review its airport hubs, offer better food and beverages and provide customer-friendly application on mobile and the web for its customers.
UNITED CONT HLD Price
UNITED CONT HLD Price | UNITED CONT HLD Quote
Recent Developments
United Airlines recently announced the launch of United Polaris for its Business Class passengers to win back corporate travelers. The company has also signed new contracts with pilots, IAM-represented employees and dispatchers. Employee issues have been a major concern for the company and CEO, Oscar Munoz, has been grappling with the problems since his appointment last year. Settlement of these issues will undoubtedly help in improving the company's performance. United Airlines seems to be on track to regain its prominence in the industry as well as provide a touch competition to rivals such as American Airlines Group Inc. AAL and Delta Air Lines Inc. DAL . However, high capacity growth and low demand, global issues such as terrorist attacks and threat of the U.K. exiting the European Union - commonly referred to as Brexit - could affect the company's expected performance targets.
Zacks Rank and a Stock to Consider
United Continental Holdings currently has a Zacks Rank #5 (Strong Sell). Investors interested in the airline industry could consider Air France-KLM SA AFLYY , which sports a Zacks Rank #1 (Strong Buy).
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DELTA AIR LINES (DAL): Free Stock Analysis Report
AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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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United Airlines seems to be on track to regain its prominence in the industry as well as provide a touch competition to rivals such as American Airlines Group Inc. AAL and Delta Air Lines Inc. DAL . Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. United Airlines also expects to increase economy and front-cabin seating by 20% and 30%, respectively and boost third party channel sales to generate a total value of $750 million through 2018.
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Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. United Airlines seems to be on track to regain its prominence in the industry as well as provide a touch competition to rivals such as American Airlines Group Inc. AAL and Delta Air Lines Inc. DAL . Three key target areas for implantation of its plans include commercial enhancements to increase revenues, cost structure improvisations to boost margins and better operational performance to enhance efficiency.
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Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. United Airlines seems to be on track to regain its prominence in the industry as well as provide a touch competition to rivals such as American Airlines Group Inc. AAL and Delta Air Lines Inc. DAL . In addition to customer segmentation, revenue enhancements are expected to generate approximately $500 million through a revamped Mileage Plus program ($300 million) and better revenue management system ($200 million).
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United Airlines seems to be on track to regain its prominence in the industry as well as provide a touch competition to rivals such as American Airlines Group Inc. AAL and Delta Air Lines Inc. DAL . Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. United's Future Plans United Airlines is aiming for revenue and efficiency gain of $3.1 billion through 2018.
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7932.0
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2016-06-21 00:00:00 UTC
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UAL Stock: United Continental Holdings Inc Soars on $3.1B Efficiency Plan
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AAL
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https://www.nasdaq.com/articles/ual-stock-united-continental-holdings-inc-soars-31b-efficiency-plan-2016-06-21
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nan
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nan
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
United Continental Holdings Inc ( UAL ) is up around 3% in Tuesday early morning trading as the company announced a plan to increase sales and efficiency, adding a whopping $3.1 billion a year in operating income by 2018.
Previously, United CEO Oscar Munoz set a period of nine months to review UAL's strategy, but this was delayed after Munoz suffered a heart attack last October.
The news is welcome, as United has lagged behind both Delta Air Lines, Inc. ( DAL ) and American Airlines Group Inc ( AAL ) in terms of both traffic and operating income. UAL's operating income for the past year has clocked in at $5 billion, while competitors DAL and AAL have hit OI of $7.8 billion and $6.2 billion, respectively.
United's latest initiatives should boost sales by around $1.8 billion and save $1.3 billion.
What's to Come for UAL?
UAL plans to do this through commercial enhancements, cost structure changes and operational improvements. The goal is to achieve half of this efficiency plan over the next three years by charging steeper fares, optimizing passenger segmentation and cutting costs from delays and cancellations.
10 All-American Stocks to Buy Now
What's more, United assured investors that its Q2 consolidated passenger revenue would decline between 6.5% and 7.5% year-over-year, rather than between 6.5% and 8.5%. And Munoz is doing all he can to buoy customer sentiment around the United brand:
"As United continues its focus on elevating the customer experience, it recently announced the all-new United Polaris business class, free snacks and transformed airport clubs. And on July 1, United will introduce illy premium coffee on board all flights. Additionally, the company is expanding its industry-leading route network with new service to several destinations across Europe and Asia, including its new flight between San Francisco and Singapore."
But the UAL rally may have trouble beyond the company's control.
Namely, sentiment hasn't been the greatest for airlines of late, as the price of oil casts doubt over the airlines' ability to control pricing and the ongoing rout in per-passenger revenue has soured investors on the industry. Moreover, technically speaking, shares are just a couple percentage points away from colliding with a rapidly declining 50-day moving average.
Still, United is making the right strides toward winning back customers and investors alike. Today's move in UAL stock is justified, if nothing else.
As of this writing, John Kilhefner did not hold a position in any of the aforementioned securities.
More From InvestorPlace
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The post UAL Stock: United Continental Holdings Inc Soars on $3.1B Efficiency Plan 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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The news is welcome, as United has lagged behind both Delta Air Lines, Inc. ( DAL ) and American Airlines Group Inc ( AAL ) in terms of both traffic and operating income. UAL's operating income for the past year has clocked in at $5 billion, while competitors DAL and AAL have hit OI of $7.8 billion and $6.2 billion, respectively. The goal is to achieve half of this efficiency plan over the next three years by charging steeper fares, optimizing passenger segmentation and cutting costs from delays and cancellations.
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The news is welcome, as United has lagged behind both Delta Air Lines, Inc. ( DAL ) and American Airlines Group Inc ( AAL ) in terms of both traffic and operating income. UAL's operating income for the past year has clocked in at $5 billion, while competitors DAL and AAL have hit OI of $7.8 billion and $6.2 billion, respectively. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips United Continental Holdings Inc ( UAL ) is up around 3% in Tuesday early morning trading as the company announced a plan to increase sales and efficiency, adding a whopping $3.1 billion a year in operating income by 2018.
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The news is welcome, as United has lagged behind both Delta Air Lines, Inc. ( DAL ) and American Airlines Group Inc ( AAL ) in terms of both traffic and operating income. UAL's operating income for the past year has clocked in at $5 billion, while competitors DAL and AAL have hit OI of $7.8 billion and $6.2 billion, respectively. InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips United Continental Holdings Inc ( UAL ) is up around 3% in Tuesday early morning trading as the company announced a plan to increase sales and efficiency, adding a whopping $3.1 billion a year in operating income by 2018.
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UAL's operating income for the past year has clocked in at $5 billion, while competitors DAL and AAL have hit OI of $7.8 billion and $6.2 billion, respectively. The news is welcome, as United has lagged behind both Delta Air Lines, Inc. ( DAL ) and American Airlines Group Inc ( AAL ) in terms of both traffic and operating income. What's to Come for UAL?
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7933.0
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2016-06-21 00:00:00 UTC
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Delta Air Lines Down to Sell on Terror Attacks & Dull View
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-down-to-sell-on-terror-attacks-dull-view-2016-06-21
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nan
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nan
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On Jun 20, Zacks Investment Research downgraded Delta Air LinesDAL to a Zacks Rank #4 (Sell). Going by the Zacks model, companies holding a Zacks Rank #4 are likely to underperform the broader market.
Why the Downgrade?
Shares of Delta, like its peers including American Airlines Group AAL and United Continental Holdings UAL , have been suffering greatly due to the mass shooting at a nightclub in Orlando and the explosion at the Shanghai Pudong airport on Jun 12.
Such acts of terrorism impact airline stocks as there is a possibility of waning travel demand due to security fears. The timing of the attacks could not have been worse as the three-month period between June and August has been predicted to be the busiest one for U.S. carriers in terms of air travel.
Moreover, the explosion at Shanghai's Pudong International Airport highlights the necessity to tighten security at airports.
Outlook
Moreover, Delta issued a below-par guidance while reporting its May traffic figures. The carrier now expects passenger revenue per available seat mile (PRASM: a measure of unit revenue) to decline around 4.5% in the second quarter of 2016. The earlier projection had called for a decline in the band of 2.5% to 4.5%. Delta expects operating margin near the lower end (i.e. near 21%) of its previous view in the band of 21% to 23% for the second quarter.
Earnings Estimates
In view of this gloomy scenario, earnings per share estimates are moving south. Over the last 7 days, earnings estimates for the second quarter and full-year 2016 have been trimmed by 2 cents and 10 cents to $1.80 and $6.31, respectively. Moreover, the EPS estimate for 2017 has been reduced by 19 cents to $6.57 over the same time frame.
DELTA AIR LINES Price and Consensus
DELTA AIR LINES Price and Consensus | DELTA AIR LINES Quote
A Key Pick
Investors interested in the airline space may consider SkyWest, Inc. SKYW , which sports a Zacks Rank #1 (Strong Buy).
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DELTA AIR LINES (DAL): Free Stock Analysis Report
SKYWEST INC (SKYW): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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 Delta, like its peers including American Airlines Group AAL and United Continental Holdings UAL , have been suffering greatly due to the mass shooting at a nightclub in Orlando and the explosion at the Shanghai Pudong airport on Jun 12. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Such acts of terrorism impact airline stocks as there is a possibility of waning travel demand due to security fears.
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Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Delta, like its peers including American Airlines Group AAL and United Continental Holdings UAL , have been suffering greatly due to the mass shooting at a nightclub in Orlando and the explosion at the Shanghai Pudong airport on Jun 12. On Jun 20, Zacks Investment Research downgraded Delta Air LinesDAL to a Zacks Rank #4 (Sell).
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Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Delta, like its peers including American Airlines Group AAL and United Continental Holdings UAL , have been suffering greatly due to the mass shooting at a nightclub in Orlando and the explosion at the Shanghai Pudong airport on Jun 12. On Jun 20, Zacks Investment Research downgraded Delta Air LinesDAL to a Zacks Rank #4 (Sell).
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Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Delta, like its peers including American Airlines Group AAL and United Continental Holdings UAL , have been suffering greatly due to the mass shooting at a nightclub in Orlando and the explosion at the Shanghai Pudong airport on Jun 12. On Jun 20, Zacks Investment Research downgraded Delta Air LinesDAL to a Zacks Rank #4 (Sell).
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7934.0
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2016-06-18 00:00:00 UTC
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The U.S. Pilot Shortage Continues to Rear Its Ugly Head
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AAL
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https://www.nasdaq.com/articles/us-pilot-shortage-continues-rear-its-ugly-head-2016-06-18
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nan
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nan
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Today, it is more expensive than ever to train for a career as an airline pilot. At the same time, major airlines are about to be hit with a flood of pilot retirements as pilots reach the federally mandated retirement age of 65. To make matters worse, starting pay at regional airlines -- where most new pilots break into the industry -- remains quite low.
Over the past few years, this has resulted in a growing pilot shortage. The pilot shortage has already claimed several victims, most notably Republic Airways -- the second-largest regional airline in the U.S. -- which was forced into bankruptcy earlier this year.
Regional airlines have had trouble recruiting enough pilots recently. Image source: The Motley Fool.
Last week, American Airlines (NASDAQ: AAL) returned to a tried-and-true strategy to scrounge up more pilots for its regional carriers: big signing bonuses. Delta Air Lines (NYSE: DAL) and United Continental (NYSE: UAL) are taking a different approach, though. They are trying to reduce regional flying as much as possible.
Bigger bonuses than ever
In the past few years, as regional airlines have had more trouble recruiting new pilots, most have turned to signing bonuses to meet their hiring quotas. For example, in early 2015, nearly every regional airline was offering a signing bonus of at least $7,500, with many offering $10,000-$12,000.
American Airlines is now upping the ante at its three wholly owned regional airlines: Envoy, Piedmont Airlines, and PSA Airlines. Last Monday, all three announced enhanced pilot signing bonuses. They will now pay $15,000 to new hires. PSA and Piedmont are also offering $5,000 referral bonuses to current pilots who recruit new pilots for the company.
Envoy, PSA, and Piedmont also emphasize that they offer a direct pathway to becoming a pilot at American Airlines -- where pay rates are much higher. They have also rolled out retention bonuses of up to $20,000 to give current first officers an added incentive to stick around.
American Airlines has raised its signing bonuses for regional airline pilots. Image source: Republic Airways.
American's regional affiliates are spending freely on bonuses because they have to recruit pilots to support planned growth in addition to replacing those who leave (or move up to the mainline carrier). American Airlines currently plans to increase its regional fleet by 26 airplanes this year, including third-party regional airlines it contracts with. It grew its regional fleet at a similar rate last year, with its wholly owned regional carriers supplying the growth.
Delta and United go in a different direction
Delta Air Lines and United Continental have adopted a radically different strategy to address the growing pilot shortage. They are simply reducing the size of their regional fleets on a permanent basis.
Delta was quick to recognize the looming pilot crisis a few years ago. It started adding smaller 110-seat aircraft to its mainline fleet in 2013 while retiring most of the 50-seat jets in its regional fleet.
Delta is continuing down this path, having ordered 75 CS100 jets in late April. These jets, which will also hold about 110 seats, will allow Delta to continue retiring 50-seat jets over the next few years.
Meanwhile, United Continental has also been snapping up small mainline jets this year. It's part of a new plan for the company to shrink its 50-seat regional jet fleet to fewer than 100 planes by the end of 2019, down from more than 250 at the beginning of this year.
Of course, Delta Air Lines and United Continental will have to increase their mainline hiring to staff these new jets in addition to replacing retiring pilots. However, since they offer much better pay than regional airlines (and also compared to most low-cost carriers), they will have no trouble filling their open pilot positions for the foreseeable future.
Furthermore, a small mainline jet requires two pilots, just like a 50-seat regional jet. The move toward fewer departures on larger planes reduces the industry's pilot hiring needs, making the pilot shortage a little less severe.
Delta and United are reducing their risk
The approach taken by Delta and United seems more prudent than the route American Airlines is taking. By proactively reducing their regional fleets, they will be better able to handle any worsening of the pilot shortage.
There are certainly advantages to American Airlines' approach. With a big regional fleet, it can offer frequent flights to its hubs, even in relatively small cities. However, if the regional airline pilot pipeline dries up in the next few years, American could be forced to change its fleet plan in a big hurry.
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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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Last week, American Airlines (NASDAQ: AAL) returned to a tried-and-true strategy to scrounge up more pilots for its regional carriers: big signing bonuses. The pilot shortage has already claimed several victims, most notably Republic Airways -- the second-largest regional airline in the U.S. -- which was forced into bankruptcy earlier this year. American's regional affiliates are spending freely on bonuses because they have to recruit pilots to support planned growth in addition to replacing those who leave (or move up to the mainline carrier).
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Last week, American Airlines (NASDAQ: AAL) returned to a tried-and-true strategy to scrounge up more pilots for its regional carriers: big signing bonuses. American Airlines is now upping the ante at its three wholly owned regional airlines: Envoy, Piedmont Airlines, and PSA Airlines. American Airlines currently plans to increase its regional fleet by 26 airplanes this year, including third-party regional airlines it contracts with.
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Last week, American Airlines (NASDAQ: AAL) returned to a tried-and-true strategy to scrounge up more pilots for its regional carriers: big signing bonuses. American Airlines is now upping the ante at its three wholly owned regional airlines: Envoy, Piedmont Airlines, and PSA Airlines. American Airlines has raised its signing bonuses for regional airline pilots.
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Last week, American Airlines (NASDAQ: AAL) returned to a tried-and-true strategy to scrounge up more pilots for its regional carriers: big signing bonuses. For example, in early 2015, nearly every regional airline was offering a signing bonus of at least $7,500, with many offering $10,000-$12,000. PSA and Piedmont are also offering $5,000 referral bonuses to current pilots who recruit new pilots for the company.
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7935.0
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2016-06-16 00:00:00 UTC
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American Airlines Group Inc: Bulls Falling Silent in AAL
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-inc%3A-bulls-falling-silent-in-aal-2016-06-16
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nan
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nan
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The turbulence striking airline stocks just won't let up.
Any attempt to pull out of the nose dive has failed in short order, especially over the past two months.
With this morning's drubbing in American Airlines Group Inc ( AAL ), losses for the week have now extended to a harrowing 13% haircut.
All told, AAL stock has been cut in half over the past 18 months. And while troubled passengers may be citing its massively oversold status as reason for optimism, such a stat is about the weakest reason to bet on a rise.
Let's head to the charts to discover any other clues or price levels worthy of our attention.
AAL Stock Chart
First up we have the grandaddy of all technical signals - the trend. And I know it strains the obvious, but the trend for AAL stock on any and all time frames is lower. Which is a polite way of saying the bulls have been castrated across the land.
5 Stocks to Sell for June
With American Airlines well below all major moving averages, consider any and all rally attempts suspect.
And what of volume patterns? They too bear the bear's mark. Distribution days have multiplied in recent days as shareholders have fled to safer quarters.
Lest you think today's missive is leaning too bearish, I'll throw out a pinch of optimism for the few remaining airline lovers to cling to. While AAL is carving out a lower pivot low in the price chart, the RSI indicator is forming a higher swing low, or, at least it will if American Airlines can pivot higher in the next few days.
That right there is a bullish divergence suggesting the downtrend is slowing in momentum.
Bottom Line for American Airlines
If you're looking for a signal to start bottom fishing, I suggest waiting for a break of the $33.50 zone. The resistance breach will signal a reversal in the short-term trend, thus suggesting the bulls have finally established a foothold.
Until then, dispense with any bullish aspirations you may have for this stock.
Apple Stock: Why Apple Inc. Could Be the Next BlackBerry Ltd (AAPL BBRY)
As for the bears, I suggest caution with initiating new trades here. Chasing a stock already down 11% is bad form. The risk-reward is no longer favorable. Wait for some type of rebound, ideally to the declining 20-day moving average around $31 or $32, then grab put options.
The Aug $32 put option should do the trick. Your risk is limited to the initial debit while the reward is unlimited until the stock reaches zero.
At the time of this writing Tyler Craig had no positions in any of the aforementioned securities.
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The post American Airlines Group Inc: Bulls Falling Silent in 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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With this morning's drubbing in American Airlines Group Inc ( AAL ), losses for the week have now extended to a harrowing 13% haircut. All told, AAL stock has been cut in half over the past 18 months. AAL Stock Chart First up we have the grandaddy of all technical signals - the trend.
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While AAL is carving out a lower pivot low in the price chart, the RSI indicator is forming a higher swing low, or, at least it will if American Airlines can pivot higher in the next few days. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. With this morning's drubbing in American Airlines Group Inc ( AAL ), losses for the week have now extended to a harrowing 13% haircut.
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While AAL is carving out a lower pivot low in the price chart, the RSI indicator is forming a higher swing low, or, at least it will if American Airlines can pivot higher in the next few days. More From InvestorPlace 8 Tech Stocks Better Left Off the Grid After Crashing, Delta Air Lines, Inc. (DAL) Looks Ready for Liftoff The post American Airlines Group Inc: Bulls Falling Silent in AAL appeared first on InvestorPlace . With this morning's drubbing in American Airlines Group Inc ( AAL ), losses for the week have now extended to a harrowing 13% haircut.
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AAL Stock Chart First up we have the grandaddy of all technical signals - the trend. More From InvestorPlace 8 Tech Stocks Better Left Off the Grid After Crashing, Delta Air Lines, Inc. (DAL) Looks Ready for Liftoff The post American Airlines Group Inc: Bulls Falling Silent in AAL appeared first on InvestorPlace . With this morning's drubbing in American Airlines Group Inc ( AAL ), losses for the week have now extended to a harrowing 13% haircut.
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7936.0
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2016-06-16 00:00:00 UTC
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Nasdaq 100 Movers: AAL, SYMC
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-aal-symc-2016-06-16
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nan
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nan
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In early trading on Thursday, shares of Symantec topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.3%. Year to date, Symantec has lost about 8.4% of its value.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 3.9%. American Airlines Group is lower by about 30.8% looking at the year to date performance.
Two other components making moves today are BioMarin Pharmaceutical, trading down 3.6%, and Ctrip.com International, trading up 0.9% on the day.
VIDEO: Nasdaq 100 Movers: AAL, SYMC
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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VIDEO: Nasdaq 100 Movers: AAL, SYMC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 3.9%. American Airlines Group is lower by about 30.8% looking at the year to date performance.
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VIDEO: Nasdaq 100 Movers: AAL, SYMC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 3.9%. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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VIDEO: Nasdaq 100 Movers: AAL, SYMC 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 Symantec topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.3%. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 3.9%.
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VIDEO: Nasdaq 100 Movers: AAL, SYMC 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 Symantec topped the list of the day's best performing components of the Nasdaq 100 index, trading up 1.3%. And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group, trading down 3.9%.
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7937.0
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2016-06-16 00:00:00 UTC
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American Airlines Stock Sinks to New Lows: Will Buybacks Hit New Highs?
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AAL
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https://www.nasdaq.com/articles/american-airlines-stock-sinks-new-lows-will-buybacks-hit-new-highs-2016-06-16
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nan
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nan
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American Airlines (NASDAQ: AAL) was flying high at the beginning of 2015 as investors were optimistic about the combined impact of lower fuel prices and industry consolidation on airline profitability. Indeed, American Airlines earned a record profit last year.
However, investors haven't been too impressed lately, as American's persistent unit revenue declines have called into question the sustainability of its profitability. As a result, American Airlines stock has been on a downward trajectory for more than a year.
The further the stock has fallen, the more cash management has spent on share buybacks. With American Airlines stock recently hitting a new 52-week low near $30 -- close to its lowest level since the AMR-US Airways merger -- American Airlines may set a new record for share buybacks in the current quarter.
When the stock falls, buybacks rise
American Airlines' aggressive share repurchase strategy has plenty of detractors. Indeed, while the company has bought back a lot of stock in the past year, that hasn't helped arrest its stock slide.
On the other hand, it's hard to argue with the timing of its share repurchases. American's management hasn't been indiscriminately buying back stock just to prop up earnings per share. It bought back very few shares in early 2015 when American Airlines stock was near $50. By contrast, American has ramped up its buyback activity whenever the stock was near (or below) $40.
American Airlines Share Repurchases vs. Stock Price, data by YCharts
The first big spike in share repurchases came in Q3 2015, as American Airlines stock pulled back to around $40 even as the company reported a series of record profits. In that quarter, it spent $1.56 billion to repurchase 38.4 million shares.
American Airlines stock recovered somewhat in late 2015, so it cut back slightly on share repurchases in Q4, spending $1.1 billion. However, after the stock plunged in January, the company ramped up its buyback activity again. Last quarter, American Airlines spent another $1.56 billion to repurchase 39.3 million shares.
Get ready for a big jump in buybacks
Based on the company's liquidity, borrowing, and capital spending targets set out earlier this year, American Airlines probably has the flexibility to spend as much as $5 billion on share buybacks this year.
Since late April, American Airlines stock has been stuck below $35. Due to the lower stock price, if the company spends $1.56 billion on share buybacks again, it would probably be able to retire more than 45 million shares: a new record for a single quarter.
However, as noted earlier, American's management has tended to spend more money on share buybacks as the share price has fallen. If the company instead spends $2 billion on buybacks, it could potentially repurchase close to 60 million shares this quarter: roughly 10% of its outstanding shares.
Are more buybacks a good thing?
American Airlines' stock buybacks will help bolster its earnings per share, all else equal. But this doesn't mean that they are necessarily good for shareholders. That depends on whether American Airlines can sustain its profitability in the coming years.
The good news is that American Airlines' unit revenue trends could start to improve in Q3 due to lower competitive capacity growth in the U.S. and stabilization in Brazil. New revenue-generating initiatives such as the introduction of basic economy fares and international premium economy seats will provide a further boost in the next couple of years.
Presumably, American Airlines shareholders are optimistic about the company's prospects and expect these initiatives to help American maintain its double digit pre-tax profit margin. From that perspective, American's share buybacks look like a no-brainer.
However, with revenue slumping and fuel prices starting to rebound, it's possible that American's margins will erode rapidly over the next year or two. In that case, American Airlines may be throwing good money after bad -- perhaps even threatening its long-term solvency -- by spending ever-increasing amounts of cash on share buybacks.
I fall into the first camp. Last year's record high 15.3% adjusted pre-tax margin may have been unsustainable, but I expect American Airlines to be profitable enough in the long run to justify a significantly higher share price. But the evidence isn't clear-cut either way. Thus, American's huge share buybacks make American Airlines stock a particularly risky investment.
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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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American Airlines (NASDAQ: AAL) was flying high at the beginning of 2015 as investors were optimistic about the combined impact of lower fuel prices and industry consolidation on airline profitability. The good news is that American Airlines' unit revenue trends could start to improve in Q3 due to lower competitive capacity growth in the U.S. and stabilization in Brazil. In that case, American Airlines may be throwing good money after bad -- perhaps even threatening its long-term solvency -- by spending ever-increasing amounts of cash on share buybacks.
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American Airlines (NASDAQ: AAL) was flying high at the beginning of 2015 as investors were optimistic about the combined impact of lower fuel prices and industry consolidation on airline profitability. American Airlines Share Repurchases vs. Stock Price, data by YCharts The first big spike in share repurchases came in Q3 2015, as American Airlines stock pulled back to around $40 even as the company reported a series of record profits. Last quarter, American Airlines spent another $1.56 billion to repurchase 39.3 million shares.
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American Airlines (NASDAQ: AAL) was flying high at the beginning of 2015 as investors were optimistic about the combined impact of lower fuel prices and industry consolidation on airline profitability. With American Airlines stock recently hitting a new 52-week low near $30 -- close to its lowest level since the AMR-US Airways merger -- American Airlines may set a new record for share buybacks in the current quarter. American Airlines Share Repurchases vs. Stock Price, data by YCharts The first big spike in share repurchases came in Q3 2015, as American Airlines stock pulled back to around $40 even as the company reported a series of record profits.
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American Airlines (NASDAQ: AAL) was flying high at the beginning of 2015 as investors were optimistic about the combined impact of lower fuel prices and industry consolidation on airline profitability. Indeed, American Airlines earned a record profit last year. American Airlines Share Repurchases vs. Stock Price, data by YCharts The first big spike in share repurchases came in Q3 2015, as American Airlines stock pulled back to around $40 even as the company reported a series of record profits.
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7938.0
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2016-06-16 00:00:00 UTC
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Why American Airlines Group Inc (AAL), BioMarin Pharmaceutical Inc. (BMRN) and Cavium Inc (CAVM) Are 3 of Today’s Worst Stocks
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-group-inc-aal-biomarin-pharmaceutical-inc.-bmrn-and-cavium-inc-cavm
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nan
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nan
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Although the professional consensus was that it wouldn't sway the Federal Reserve much from its aim to hold interest rates steady for the foreseeable future, today's initial reaction to May's firm inflation numbers said the market thinks a rate hike could come sooner than later. By the time the closing bell rang though, those early losses were wiped away, and turned into a 0.31% gain. The S&P 500 closed at 2077.99.
While the market mustered a modest rebound, owners of American Airlines Group Inc (NASDAQ: AAL ), BioMarin Pharmaceutical Inc. (NASDAQ: BMRN ) and Cavium Inc (NASDAQ: CAVM ) weren't so lucky. These three stocks were among the worst of the worst.
Here's a closer look at why none of them could buy a friend on Thursday.
American Airlines Group Inc (AAL)
Already down 8% since this weekend's mass shooting at a gay club in Orlando, Florida, Bank of America/Merrill Lynch fanned the bearish flames for American Airlines Group today by downgrading AAL from "Neutral" to "Sell." However, the downgrade of AAL didn't stem from the likely quelling of travel plans in the shadow of rekindled terrorism fear. Rather, analyst Andrew Didora is concerned about the airline's soaring debt .
That said, Didora did acknowledge the potential impact the terrorist attack may have, as well as the volatility that a "Brexit" could create.
7 Stocks to Sell and Take Profits on Now!
Bank of America/Merrill Lynch also lowered its price target on AAL, from $42 to $27 , with today's 4% dip bringing it one step closer to that mark.
BioMarin Pharmaceutical Inc. (BMRN)
Some say it's an overreaction. Others disagree with that assessment. Whichever it is, it doesn't change the fact that BioMarin Pharmaceutical fell nearly 4% on Thursday following reports that the company had suspended recruitment for a trial of its hemophilia drug BMN 270.
There was no official statement on the matter from the company; one may or may not come at a later time. Rather, interested parties simply noticed at website www.clinicaltrials.gov that the study was being suspended . More often than not though, such a suspension is a sign that a trial had encountered unexpected problems, or failed to produce the hoped-for results. In fact, BMRN had already suggested at one point there may be some safety issues with BMN 270.
That's the point Evercore ISI analyst Mark Schoenebaum made today, explaining after he actually spoke with company representatives :
"We spoke with the company, who confirmed that today's news on clinicaltrials.gov is not new and that the posting of this update to the website just took a few weeks. Recall, BioMarin has said that they will need to speak with EU regulators prior to dosing the last 3 gene therapy patients in the trial (expected by around August) because one patient (#3) had an ALT elevation slightly above his ULN (47 vs ULN of 41). This discussion with regulators prior to dosing the last patients was meant to be an early safety precaution and was self-imposed as part of BioMarin's protocol for a first-in-human hemophilia A gene therapy."
Traders weren't sympathetic, however.
Cavium Inc (CAVM)
Last but not least, semiconductor maker Cavium saw its stock plunge more than 17% after announcing it was acquiring peer and rivalQLogic Corporation (NASDAQ: QLGC ) for a cool $1.4 billion. QLGC shares, conversely, gained more than 9% on the heels of the healthy offer.
The premise of the acquisition wasn't received well by analysts either, with at least four of them downgrading CAVM following the news. Canaccord Genuity analyst Matthew Ramsay opined :
"While we believe this acquisition could prove technologically prudent long term and adds important new elements to Cavium's product portfolio, the deal brings with it a stark shift in anticipated strategy given Cavium is just ahead of several new product ramps and potentially lowers the long-term growth rate of the company … given our anticipation of a more compressed valuation until closer to realized merger synergies and given our ongoing near-term concerns about lumpiness in the MIPS-based business, we are downgrading Cavium shares from Buy to HOLD until catalysts grow closer, and lowering our price target from $61 to $48."
Still, a handful of analysts are bullish on CAVM in the wake of the buyout. William Blair analyst Anil Doradla expects the combined companies to grow at an annual clip of 20% on what is an undeniable change in direction for Cavium.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
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The post Why American Airlines Group Inc (AAL), BioMarin Pharmaceutical Inc. (BMRN) and Cavium Inc (CAVM) Are 3 of Today's Worst Stocks 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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While the market mustered a modest rebound, owners of American Airlines Group Inc (NASDAQ: AAL ), BioMarin Pharmaceutical Inc. (NASDAQ: BMRN ) and Cavium Inc (NASDAQ: CAVM ) weren't so lucky. American Airlines Group Inc (AAL) Already down 8% since this weekend's mass shooting at a gay club in Orlando, Florida, Bank of America/Merrill Lynch fanned the bearish flames for American Airlines Group today by downgrading AAL from "Neutral" to "Sell." However, the downgrade of AAL didn't stem from the likely quelling of travel plans in the shadow of rekindled terrorism fear.
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While the market mustered a modest rebound, owners of American Airlines Group Inc (NASDAQ: AAL ), BioMarin Pharmaceutical Inc. (NASDAQ: BMRN ) and Cavium Inc (NASDAQ: CAVM ) weren't so lucky. More From InvestorPlace 10 Stocks You Should Buy at a Moment's Notice 5 Stocks to Sell for June The post Why American Airlines Group Inc (AAL), BioMarin Pharmaceutical Inc. (BMRN) and Cavium Inc (CAVM) Are 3 of Today's Worst Stocks appeared first on InvestorPlace . American Airlines Group Inc (AAL) Already down 8% since this weekend's mass shooting at a gay club in Orlando, Florida, Bank of America/Merrill Lynch fanned the bearish flames for American Airlines Group today by downgrading AAL from "Neutral" to "Sell."
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While the market mustered a modest rebound, owners of American Airlines Group Inc (NASDAQ: AAL ), BioMarin Pharmaceutical Inc. (NASDAQ: BMRN ) and Cavium Inc (NASDAQ: CAVM ) weren't so lucky. More From InvestorPlace 10 Stocks You Should Buy at a Moment's Notice 5 Stocks to Sell for June The post Why American Airlines Group Inc (AAL), BioMarin Pharmaceutical Inc. (BMRN) and Cavium Inc (CAVM) Are 3 of Today's Worst Stocks appeared first on InvestorPlace . American Airlines Group Inc (AAL) Already down 8% since this weekend's mass shooting at a gay club in Orlando, Florida, Bank of America/Merrill Lynch fanned the bearish flames for American Airlines Group today by downgrading AAL from "Neutral" to "Sell."
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While the market mustered a modest rebound, owners of American Airlines Group Inc (NASDAQ: AAL ), BioMarin Pharmaceutical Inc. (NASDAQ: BMRN ) and Cavium Inc (NASDAQ: CAVM ) weren't so lucky. More From InvestorPlace 10 Stocks You Should Buy at a Moment's Notice 5 Stocks to Sell for June The post Why American Airlines Group Inc (AAL), BioMarin Pharmaceutical Inc. (BMRN) and Cavium Inc (CAVM) Are 3 of Today's Worst Stocks appeared first on InvestorPlace . American Airlines Group Inc (AAL) Already down 8% since this weekend's mass shooting at a gay club in Orlando, Florida, Bank of America/Merrill Lynch fanned the bearish flames for American Airlines Group today by downgrading AAL from "Neutral" to "Sell."
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7939.0
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2016-06-15 00:00:00 UTC
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United Continental Slips to 52-Week Low on Terror Attacks
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AAL
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https://www.nasdaq.com/articles/united-continental-slips-to-52-week-low-on-terror-attacks-2016-06-15
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nan
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nan
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Shares of Chicago-based United Continental Holdings UAL tumbled to a 52-week low of $41.46 on Jun 14. Shares of the carrier, however, recovered marginally to close the trading session at $42.41.
Stock Takes a Beating
Shares of United Continental like its peers including American Airlines Group AAL suffered a great deal owing to the mass shooting at a nightclub in Orlando and the explosion at the Shanghai Pudong airport on Jun 12.
In the early hours of Jun 12, an individual by the name Omar Mateen opened fire at a nightclub in Orlando, FL, killing 50 people and injuring 53. The indiscriminate act of terror has been described as the worst mass shooting in the history of the U.S. Such acts of terrorism impact airline stocks as there is a possibility of waning travel demand due to security fears. The timing of the attacks could not have been worse as the three-month period between June and August has been predicted to be the busiest one for U.S. carriers in terms of air travel.
Moreover, an explosion at Shanghai's Pudong International Airport injured five people, including the attacker. The explosion highlights the necessity to tighten security at airports.
UNITED CONT HLD Price
UNITED CONT HLD Price | UNITED CONT HLD Quote
PRASM Woes Remain
Apart from the unfortunate incidents, woes related to passenger revenue per available seat mile (PRASM: a key measure of unit revenue) continue to hurt airline stocks and United Continental is no exception. The carrier expects the metric to drop 6.5% to 8.5% in the second quarter of 2016.
Zacks Rank & Stocks to Consider
United Continental currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the airline space include SkyWest, Inc. SKYW and Air France-KLM SA AFLYY . Both the stocks sport a Zacks Rank #1 (Strong Buy).
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SKYWEST INC (SKYW): Free Stock Analysis Report
AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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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Stock Takes a Beating Shares of United Continental like its peers including American Airlines Group AAL suffered a great deal owing to the mass shooting at a nightclub in Orlando and the explosion at the Shanghai Pudong airport on Jun 12. Click to get this free report SKYWEST INC (SKYW): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In the early hours of Jun 12, an individual by the name Omar Mateen opened fire at a nightclub in Orlando, FL, killing 50 people and injuring 53.
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Click to get this free report SKYWEST INC (SKYW): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Stock Takes a Beating Shares of United Continental like its peers including American Airlines Group AAL suffered a great deal owing to the mass shooting at a nightclub in Orlando and the explosion at the Shanghai Pudong airport on Jun 12. UNITED CONT HLD Price UNITED CONT HLD Price | UNITED CONT HLD Quote PRASM Woes Remain Apart from the unfortunate incidents, woes related to passenger revenue per available seat mile (PRASM: a key measure of unit revenue) continue to hurt airline stocks and United Continental is no exception.
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Stock Takes a Beating Shares of United Continental like its peers including American Airlines Group AAL suffered a great deal owing to the mass shooting at a nightclub in Orlando and the explosion at the Shanghai Pudong airport on Jun 12. Click to get this free report SKYWEST INC (SKYW): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. UNITED CONT HLD Price UNITED CONT HLD Price | UNITED CONT HLD Quote PRASM Woes Remain Apart from the unfortunate incidents, woes related to passenger revenue per available seat mile (PRASM: a key measure of unit revenue) continue to hurt airline stocks and United Continental is no exception.
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Stock Takes a Beating Shares of United Continental like its peers including American Airlines Group AAL suffered a great deal owing to the mass shooting at a nightclub in Orlando and the explosion at the Shanghai Pudong airport on Jun 12. Click to get this free report SKYWEST INC (SKYW): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank & Stocks to Consider United Continental currently carries a Zacks Rank #3 (Hold).
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7940.0
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2016-06-15 00:00:00 UTC
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Insiders Buy the Holdings of FAB ETF
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AAL
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https://www.nasdaq.com/articles/insiders-buy-holdings-fab-etf-2016-06-15
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nan
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nan
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A look at the weighted underlying holdings of the First Trust Multi Cap Value AlphaDEX Fund ( FAB ) shows an impressive 15.1% of holdings on a weighted basis have experienced insider buying within the past six months.
American Airlines Group Inc (Symbol: AAL), which makes up 0.34% of the First Trust Multi Cap Value AlphaDEX Fund ( FAB ), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $364,832 worth of AAL, making it the #61 largest holding. The table below details the recent insider buying activity observed at AAL:
AAL - last trade: $30.36 - Recent Insider Buys:
And Radian Group, Inc. (Symbol: RDN), the #160 largest holding among components of the First Trust Multi Cap Value AlphaDEX Fund ( FAB ), shows 8 directors and officers as recently filing Form 4's indicating purchases. The ETF holds $205,683 worth of RDN, which represents approximately 0.19% of the ETF's total assets at last check. The recent insider buying activity observed at RDN is detailed in the table below:
RDN - last trade: $10.64 - Recent Insider Buys:
10 ETFs With Stocks That Insiders Are Buying »
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and 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 (Symbol: AAL), which makes up 0.34% of the First Trust Multi Cap Value AlphaDEX Fund ( FAB ), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The table below details the recent insider buying activity observed at AAL: AAL - last trade: $30.36 - Recent Insider Buys: And Radian Group, Inc. (Symbol: RDN), the #160 largest holding among components of the First Trust Multi Cap Value AlphaDEX Fund ( FAB ), shows 8 directors and officers as recently filing Form 4's indicating purchases. The ETF holds a total of $364,832 worth of AAL, making it the #61 largest holding.
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The table below details the recent insider buying activity observed at AAL: AAL - last trade: $30.36 - Recent Insider Buys: And Radian Group, Inc. (Symbol: RDN), the #160 largest holding among components of the First Trust Multi Cap Value AlphaDEX Fund ( FAB ), shows 8 directors and officers as recently filing Form 4's indicating purchases. American Airlines Group Inc (Symbol: AAL), which makes up 0.34% of the First Trust Multi Cap Value AlphaDEX Fund ( FAB ), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $364,832 worth of AAL, making it the #61 largest holding.
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The table below details the recent insider buying activity observed at AAL: AAL - last trade: $30.36 - Recent Insider Buys: And Radian Group, Inc. (Symbol: RDN), the #160 largest holding among components of the First Trust Multi Cap Value AlphaDEX Fund ( FAB ), shows 8 directors and officers as recently filing Form 4's indicating purchases. American Airlines Group Inc (Symbol: AAL), which makes up 0.34% of the First Trust Multi Cap Value AlphaDEX Fund ( FAB ), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $364,832 worth of AAL, making it the #61 largest holding.
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American Airlines Group Inc (Symbol: AAL), which makes up 0.34% of the First Trust Multi Cap Value AlphaDEX Fund ( FAB ), has seen 2 directors and officers purchase shares in the past six months, according to the recent Form 4 data. The ETF holds a total of $364,832 worth of AAL, making it the #61 largest holding. The table below details the recent insider buying activity observed at AAL: AAL - last trade: $30.36 - Recent Insider Buys: And Radian Group, Inc. (Symbol: RDN), the #160 largest holding among components of the First Trust Multi Cap Value AlphaDEX Fund ( FAB ), shows 8 directors and officers as recently filing Form 4's indicating purchases.
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7941.0
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2016-06-15 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Delta Air Lines, United Continental Holdings, Southwest Airlines, American Airlines and JetBlue Airways
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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
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For Immediate Release
Chicago, IL - June 15, 2016 - 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, Inc. ( DAL ), United Continental Holdings ( UAL ), Southwest Airlines ( LUV ), American Airlines Group ( AAL ) and JetBlue Airways Corporation ( JBLU ) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Tuesday's Analyst Blog:
U.S. Carriers Sell Off in Wake of Orlando, Shanghai Attacks
Shares of major airlines stocks like Delta Air Lines, Inc. ( DAL ), United Continental Holdings ( UAL ), Southwest Airlines ( LUV ), American Airlines Group ( AAL ) and JetBlue Airways Corporation ( JBLU ) nosedived following the mass shooting at a nightclub in Orlando and an explosion at the Shanghai Pudong airport on Jun 12. With airline stocks plummeting on the twin acts of terror at different ends of the globe, the NYSE ARCA Airline index declined 2.69% to $84.45 on Jun 13.
Orlando Mass Shooting
In the early hours of Jun 12, an individual by the name Omar Mateen opened fire at a nightclub in Orlando, FL. The indiscriminate act of terror, described as the worst mass shooting in the history of the U.S., claimed at least 50 lives and injured around 53. Those dead included the gunman.
Such acts of terrorism impact airline stocks as there is a possibility of waning travel demand due to security fears. The timing of the attacks could not have been worse as the three-month period between June and August has been predicted to be the busiest one for U.S. carriers in terms of air travel.
According to the forecast released by the Airlines for America ('A4A') last month, approximately 231.1 million passengers will supposed to be transported by various U.S. carriers during the above mentioned period. This translates into a daily traffic of 2.51 million, up 4% year over year.
TRANSPORTATION-AIRLINE Industry Price Index
Shanghai Airport Explosion
Another violent act occurred in China on the same day, dampening the spirits of airlines. Four people were apparently injured at Shanghai's Pudong International Airport when a certain Zhou Xingbai threw an explosive laden bottle at a check-in counter. Following the incidence, the attacker tried to kill himself as well.
The above explosion highlights the necessity to tighten security at airports. In the wake of the attack, Chinese carriers lost value on Jun 13.
Terror Attacks Spell Doom for Airlines
There have been quite a few acts of terror across the globe over the past few months. Last November, the Paris attacks resulted in multiple casualties and injured many individuals. Shares of carriers like Air France-KLM Group were dealt a heavy blow by the act. The Brussels attacks in Mar 2016 also hit stocks in the sector. Furthermore, the EgyptAir tragedy last month resulted in a downward movement for airline stocks.
Following the terror attacks in Paris and Brussels, the U.S. State Department issued a global travel alert on May 31 to U.S. citizens citing the possibility of more terrorist attacks. The alert has primary been issued as Europe is likely to attract many tourists during the European Soccer Championship currently being held in France and the Catholic Church's World Youth Day scheduled to be held in Poland next month.
The Bottom Line
Even though airline stocks are benefiting immensely from the oil price slump, acts of terrorism continue to hurt stocks in the space. In fact, even the International Air Transport Association (IATA) has stated that it expects passenger travel growth (6.2%) in 2016 to be less than that recorded in 2015 (7.4%).
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
JETBLUE AIRWAYS (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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Stocks recently featured in the blog include Delta Air Lines, Inc. ( DAL ), United Continental Holdings ( UAL ), Southwest Airlines ( LUV ), American Airlines Group ( AAL ) and JetBlue Airways Corporation ( JBLU ) . Here are highlights from Tuesday's Analyst Blog: U.S. Carriers Sell Off in Wake of Orlando, Shanghai Attacks Shares of major airlines stocks like Delta Air Lines, Inc. ( DAL ), United Continental Holdings ( UAL ), Southwest Airlines ( LUV ), American Airlines Group ( AAL ) and JetBlue Airways Corporation ( JBLU ) nosedived following the mass shooting at a nightclub in Orlando and an explosion at the Shanghai Pudong airport on Jun 12. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): 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, Inc. ( DAL ), United Continental Holdings ( UAL ), Southwest Airlines ( LUV ), American Airlines Group ( AAL ) and JetBlue Airways Corporation ( JBLU ) . Here are highlights from Tuesday's Analyst Blog: U.S. Carriers Sell Off in Wake of Orlando, Shanghai Attacks Shares of major airlines stocks like Delta Air Lines, Inc. ( DAL ), United Continental Holdings ( UAL ), Southwest Airlines ( LUV ), American Airlines Group ( AAL ) and JetBlue Airways Corporation ( JBLU ) nosedived following the mass shooting at a nightclub in Orlando and an explosion at the Shanghai Pudong airport on Jun 12. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here.
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Here are highlights from Tuesday's Analyst Blog: U.S. Carriers Sell Off in Wake of Orlando, Shanghai Attacks Shares of major airlines stocks like Delta Air Lines, Inc. ( DAL ), United Continental Holdings ( UAL ), Southwest Airlines ( LUV ), American Airlines Group ( AAL ) and JetBlue Airways Corporation ( JBLU ) nosedived following the mass shooting at a nightclub in Orlando and an explosion at the Shanghai Pudong airport on Jun 12. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Delta Air Lines, Inc. ( DAL ), United Continental Holdings ( UAL ), Southwest Airlines ( LUV ), American Airlines Group ( AAL ) and JetBlue Airways Corporation ( JBLU ) .
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Here are highlights from Tuesday's Analyst Blog: U.S. Carriers Sell Off in Wake of Orlando, Shanghai Attacks Shares of major airlines stocks like Delta Air Lines, Inc. ( DAL ), United Continental Holdings ( UAL ), Southwest Airlines ( LUV ), American Airlines Group ( AAL ) and JetBlue Airways Corporation ( JBLU ) nosedived following the mass shooting at a nightclub in Orlando and an explosion at the Shanghai Pudong airport on Jun 12. Stocks recently featured in the blog include Delta Air Lines, Inc. ( DAL ), United Continental Holdings ( UAL ), Southwest Airlines ( LUV ), American Airlines Group ( AAL ) and JetBlue Airways Corporation ( JBLU ) . Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report To read this article on Zacks.com click here.
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7942.0
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2016-06-15 00:00:00 UTC
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New Strong Sell Stocks for June 15th
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AAL
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https://www.nasdaq.com/articles/new-strong-sell-stocks-for-june-15th-2016-06-15
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today:
• American Airlines Group Inc.AAL operates in the airline industry that provides scheduled passenger, freight and mail service. The Zacks Consensus Estimate for its current year earnings has been revised 1.6% downward over the last 30 days.
• Ardmore Shipping CorporationASC engages in the ownership and operation of product and chemical tankers. The Zacks Consensus Estimate for its current year earnings has declined 3.1% over the last 30 days.
• BBVA Banco Francés S.A.BFR is a full-service banker for large corporations, middle market businesses and individuals. It has seen the Zacks Consensus Estimate for its current year earnings being revised 3.9% downward over the last 30 days.
• Helmerich & Payne, Inc.HP is primarily engaged in the exploration, production, and sale of crude oil and natural gas and in contract drilling of oil and gas wells for others. The Zacks Consensus Estimate revision for its current year earnings was a negative 10.4% over the last 30 days.
• Old Dominion Freight Line Inc.ODFL is an inter-regional and multi-regional motor carrier transporting primarily involved in less-than-truckload shipments. The Zacks Consensus Estimate for its current year earnings has moved 1% lower over the last 30 days.
View the entire Zacks Rank #5 List .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ARDMORE SHIPPIN (ASC): Free Stock Analysis Report
OLD DOMINION FL (ODFL): Free Stock Analysis Report
BANCO FRANC-ADR (BFR): Free Stock Analysis Report
HELMERICH&PAYNE (HP): Free Stock Analysis Report
AMER AIRLINES (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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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: • American Airlines Group Inc.AAL operates in the airline industry that provides scheduled passenger, freight and mail service. Click to get this free report ARDMORE SHIPPIN (ASC): Free Stock Analysis Report OLD DOMINION FL (ODFL): Free Stock Analysis Report BANCO FRANC-ADR (BFR): Free Stock Analysis Report HELMERICH&PAYNE (HP): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. • Ardmore Shipping CorporationASC engages in the ownership and operation of product and chemical tankers.
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Click to get this free report ARDMORE SHIPPIN (ASC): Free Stock Analysis Report OLD DOMINION FL (ODFL): Free Stock Analysis Report BANCO FRANC-ADR (BFR): Free Stock Analysis Report HELMERICH&PAYNE (HP): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: • American Airlines Group Inc.AAL operates in the airline industry that provides scheduled passenger, freight and mail service. The Zacks Consensus Estimate revision for its current year earnings was a negative 10.4% over the last 30 days.
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Click to get this free report ARDMORE SHIPPIN (ASC): Free Stock Analysis Report OLD DOMINION FL (ODFL): Free Stock Analysis Report BANCO FRANC-ADR (BFR): Free Stock Analysis Report HELMERICH&PAYNE (HP): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: • American Airlines Group Inc.AAL operates in the airline industry that provides scheduled passenger, freight and mail service. The Zacks Consensus Estimate for its current year earnings has been revised 1.6% downward over the last 30 days.
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Here are 5 stocks added to the Zacks Rank #5 (Strong Sell) List today: • American Airlines Group Inc.AAL operates in the airline industry that provides scheduled passenger, freight and mail service. Click to get this free report ARDMORE SHIPPIN (ASC): Free Stock Analysis Report OLD DOMINION FL (ODFL): Free Stock Analysis Report BANCO FRANC-ADR (BFR): Free Stock Analysis Report HELMERICH&PAYNE (HP): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. View the entire Zacks Rank #5 List .
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7943.0
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2016-06-14 00:00:00 UTC
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Why American Airlines Group Inc (AAL), Novo Nordisk A/S (ADR) (NVO) and Synchrony Financial (SYF) Are 3 of Today’s Worst Stocks
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-group-inc-aal-novo-nordisk-a-s-adr-nvo-and-synchrony-financial-syf
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nan
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Despite a better-than-expected retail sales report for May , stocks started Tuesday's trading in the red, and struggled to shrug off that weakness all session long. By the time the closing bell rang, the S&P 500 was at 2075.32, down 0.18%.
It could have been worse though - you could have owned a stake in American Airlines Group Inc (NASDAQ: AAL ), Novo Nordisk A/S (ADR) (NYSE: NVO ) or Synchrony Financial (NYSE: SYF ). These three names were couldn't win for losing today, although for understandable reasons.
American Airlines Group Inc (AAL)
For the second day in a row, American Airlines Group was deep in the red, and in good company. Peers and rivals United Continental Holdings Inc (NYSE: UAL ) and Southwest Airlines Co (NYSE: LUV ) also lost a ton of their value today. It was AAL leading the way though, in terms of total pain dished out.
The prod was the same as Monday's. That is, this weekend's mass shooting at a gay club in Orlando by a man claiming an affiliation with a terrorist group has spooked some would-be travelers out of travel plans.
8 Tech Stocks Better Left Off the Grid
AAL closed nearly 5% lower today.
Novo Nordisk A/S (ADR) (NVO)
The good news is that Novo Nordisk diabetes drug Victoza does indeed cut risks to diabetic patients' hearts, as hoped. The bad news is that it doesn't do so well enough.
NVO shares lost nearly 5% of their value on Tuesday following the release of an update on a key trial of diabetes drug Victoza. All told, 22% of the drug's users were less likely to die of heart disease. Mathematically, the benefit of the drug was 13% better than alternatives. Problem: The drug's study needed to indicate a 15% improvement on currently achievable results to be considered a success.
While on some fronts the difference between the target efficacy and the actual efficacy would be negligible, it was critical that Victoza perform well, as a rival drug from Eli Lilly and Co (NYSE: LLY ) demonstrated 14% more effectiveness than the NVO drug in terms of heart safety.
Synchrony Financial (SYF)
Last but not least, Synchrony Financial, spun off from General Electric Company (NYSE: GE ) in mid-2014 , is still struggling on its own. SYF shares plunged 13% today when the credit card lender warned investors it expected its charge-off rate to grow rather than shrink next year . Specifically, the company believes its bad-loan write-offs will rise between 20 and 30 basis points.
Chief Financial Officer Brian Doubles commented on the outlook :
"There doesn't appear to be anything that pertains to how we're underwriting - it appears to be a general softening in the consumers' ability to pay. We're coming off historic lows; we wouldn't view this as a step change in consumer behavior necessarily."
Investors weren't sympathetic, however, and the market presumed Synchrony's headwind wasn't unique to Synchrony. Capital One Financial Corp. (NYSE: COF ) shares lost nearly 7% of their value, while American Express Company (NYSE: AXP ) ended the day down over 4%.
The 13% selloff was the stock's biggest-ever single-day loss.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
More From InvestorPlace
Tuesday's Best Stocks
5 Stocks to Sell for June
7 Monthly Dividend Stocks to Pay Your Bills
The post Why American Airlines Group Inc (AAL), Novo Nordisk A/S (ADR) (NVO) and Synchrony Financial (SYF) Are 3 of Today's Worst Stocks 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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It could have been worse though - you could have owned a stake in American Airlines Group Inc (NASDAQ: AAL ), Novo Nordisk A/S (ADR) (NYSE: NVO ) or Synchrony Financial (NYSE: SYF ). American Airlines Group Inc (AAL) For the second day in a row, American Airlines Group was deep in the red, and in good company. It was AAL leading the way though, in terms of total pain dished out.
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It could have been worse though - you could have owned a stake in American Airlines Group Inc (NASDAQ: AAL ), Novo Nordisk A/S (ADR) (NYSE: NVO ) or Synchrony Financial (NYSE: SYF ). More From InvestorPlace Tuesday's Best Stocks 5 Stocks to Sell for June 7 Monthly Dividend Stocks to Pay Your Bills The post Why American Airlines Group Inc (AAL), Novo Nordisk A/S (ADR) (NVO) and Synchrony Financial (SYF) Are 3 of Today's Worst Stocks appeared first on InvestorPlace . American Airlines Group Inc (AAL) For the second day in a row, American Airlines Group was deep in the red, and in good company.
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It could have been worse though - you could have owned a stake in American Airlines Group Inc (NASDAQ: AAL ), Novo Nordisk A/S (ADR) (NYSE: NVO ) or Synchrony Financial (NYSE: SYF ). More From InvestorPlace Tuesday's Best Stocks 5 Stocks to Sell for June 7 Monthly Dividend Stocks to Pay Your Bills The post Why American Airlines Group Inc (AAL), Novo Nordisk A/S (ADR) (NVO) and Synchrony Financial (SYF) Are 3 of Today's Worst Stocks appeared first on InvestorPlace . American Airlines Group Inc (AAL) For the second day in a row, American Airlines Group was deep in the red, and in good company.
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It could have been worse though - you could have owned a stake in American Airlines Group Inc (NASDAQ: AAL ), Novo Nordisk A/S (ADR) (NYSE: NVO ) or Synchrony Financial (NYSE: SYF ). More From InvestorPlace Tuesday's Best Stocks 5 Stocks to Sell for June 7 Monthly Dividend Stocks to Pay Your Bills The post Why American Airlines Group Inc (AAL), Novo Nordisk A/S (ADR) (NVO) and Synchrony Financial (SYF) Are 3 of Today's Worst Stocks appeared first on InvestorPlace . American Airlines Group Inc (AAL) For the second day in a row, American Airlines Group was deep in the red, and in good company.
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7944.0
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2016-06-14 00:00:00 UTC
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Some US Carriers Gain Approval to Fly to Cuba
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AAL
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https://www.nasdaq.com/articles/some-us-carriers-gain-approval-to-fly-to-cuba-2016-06-14
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nan
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Amid the gloom prevailing following the mass shooting at a nightclub in Orlando, some positive news flowed in for U.S. airlines as the carriers will soon be operating commercial flights to Cuba. The U.S. Department of Transportation (DOT) has authorized six U.S.-based carriers to operate scheduled flights to nine second-tier Cuban cities, thereby taking a step toward restoration of diplomatic ties with the island nation after more than 50 years.
Currently, many U.S. carriers offer charter service to Cuba. Following the DOT approval, the carriers can start operating commercial flights to the island this fall itself.
A Long-Standing Issue
Diplomatic ties between the countries were severed by the U.S. in 1961 after Fidel Castro overthrew the Cuban government to set up a socialist state and in the process started to establish strong relations with the erstwhile Soviet Union. In late 2014, President Obama called for the restoration of diplomatic ties with Cuba.
Following a series of talks, a non-legally binding arrangement aimed at restoration of scheduled flights between the nations was inked in February this year. Subsequently, the U.S. DOT received a plethora of applications from U.S. carriers seeking permission to operate commercial flights to Cuba, a favorite tourist spot for Americans prior to the embargo.
TRANSPORTATION-AIRLINE Industry Price Index
TRANSPORTATION-AIRLINE Industry Price Index
The Current Scenario
According to Transportation Secretary Anthony Foxx, the selected U.S. carriers will operate commercial flights from the cities of Miami, Fort Lauderdale, Chicago, Philadelphia and Minneapolis/St. Paul. The nine Cuban cities which will be connected to the U.S. via the commercial flights are Camagüey, Cayo Coco, Cayo Largo, Cienfuegos, Holguín, Manzanillo, Matanzas, Santa Clara and Santiago de Cuba.
The U.S. DOT has allowed airline heavyweights like American Airlines Group AAL , Southwest Airlines Co. LUV and JetBlue Airways Corp. JBLU to launch commercial flights to Cuba. The other airlines that have secured a go-ahead for the same are Frontier Airlines, Silver Airways and Sun Country Airlines.
Silver Airways was the only carrier to win permission to fly to all of the nine Cuban destinations. Following the approval, American Airlines will be able to operate two daily flights between Miami and Holguin, Santa Clara and Varadero (a resort town in Matanzas) apart from a single daily flight between Miami and Camaguey and Cienfuegos. The flights are expected to be operational from September this year. The Dallas-based Southwest Airlines will apparently operate flights between Fort Lauderdale, FL, and two Cuban cities.
The Long Island City, NY-based low-cost carrier JetBlue Airways intends to operate daily flights connecting the Fort Lauderdale-Hollywood International Airport to three Cuban cities - Santa Clara, Camagüey and Holguín.
Havana Routes Decision Awaited
However, airline players like Delta Air Lines DAL and United Continental Holdings UAL are still waiting for the permission to fly to Cuba. This is because the carriers had filed applications to fly to Havana and the DOT is likely to announce its decision on Havana routes later this summer. We remind investors that Delta had applied to operate flights connecting Havana with Atlanta, New York, Miami and Orlando. United Continental had applied for permission to fly to only Havana.
In fact, the Havana routes are highly in demand among U.S. carriers which have collectively applied for the approval to operate nearly 60 flights to Havana on a daily basis. The agreement allows for only 20 daily roundtrip flights between the U.S. and the Cuban capital. Naturally, all eyes will be fixed on the DOT's decision on the highly sought after Havana routes.
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 >>
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 AIR (LUV): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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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DOT has allowed airline heavyweights like American Airlines Group AAL , Southwest Airlines Co. LUV and JetBlue Airways Corp. JBLU to launch commercial flights to Cuba. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The U.S. Department of Transportation (DOT) has authorized six U.S.-based carriers to operate scheduled flights to nine second-tier Cuban cities, thereby taking a step toward restoration of diplomatic ties with the island nation after more than 50 years.
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DOT has allowed airline heavyweights like American Airlines Group AAL , Southwest Airlines Co. LUV and JetBlue Airways Corp. JBLU to launch commercial flights to Cuba. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. TRANSPORTATION-AIRLINE Industry Price Index TRANSPORTATION-AIRLINE Industry Price Index The Current Scenario According to Transportation Secretary Anthony Foxx, the selected U.S. carriers will operate commercial flights from the cities of Miami, Fort Lauderdale, Chicago, Philadelphia and Minneapolis/St.
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DOT has allowed airline heavyweights like American Airlines Group AAL , Southwest Airlines Co. LUV and JetBlue Airways Corp. JBLU to launch commercial flights to Cuba. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Following the approval, American Airlines will be able to operate two daily flights between Miami and Holguin, Santa Clara and Varadero (a resort town in Matanzas) apart from a single daily flight between Miami and Camaguey and Cienfuegos.
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DOT has allowed airline heavyweights like American Airlines Group AAL , Southwest Airlines Co. LUV and JetBlue Airways Corp. JBLU to launch commercial flights to Cuba. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The U.S. Department of Transportation (DOT) has authorized six U.S.-based carriers to operate scheduled flights to nine second-tier Cuban cities, thereby taking a step toward restoration of diplomatic ties with the island nation after more than 50 years.
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7945.0
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2016-06-14 00:00:00 UTC
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The U.S. Awards Airlines Routes to Cuba: The Big Prize Is Still Up for Grabs
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AAL
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https://www.nasdaq.com/articles/us-awards-airlines-routes-cuba-big-prize-still-grabs-2016-06-14
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nan
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nan
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More than half a century after the U.S. banned commercial airline flights to Cuba, scheduled service between the two countries is on the verge of resuming . Last Friday, the U.S. government awarded the first set of U.S.-Cuba route authorities.
American Airlines (NASDAQ: AAL) , Southwest Airlines (NYSE: LUV) , JetBlue Airways (NASDAQ: JBLU) , Frontier Airlines, Sun Country Airlines, and Silver Airways were all awarded routes to Cuba. However, all of these routes serve secondary cities in Cuba. Routes to Havana -- which are the real prize -- won't be allocated until later this year.
JetBlue was one of six airlines to be awarded routes to Cuba last week. Image source: JetBlue Airways.
Everyone gets what they want -- for now
The new U.S.-Cuba aviation treaty allows U.S.-based airlines to operate up to 110 daily flights to Cuba: 20 to Havana and 10 each to nine other international airports in the island nation.
Havana is Cuba's political, cultural, and economic hub -- and its largest city by far -- so airlines are extremely eager to fly there. When the U.S. government began the application process for allocating routes to Cuba, airlines requested nearly three times as many flights to Havana as the 20 daily frequencies that are available.
By contrast, airlines are a lot less interested in operating routes to Cuba's secondary cities. Some major airlines didn't even bother bidding for any flights other than to Havana. As a result, the Department of Transportation didn't really have to decide anything in awarding the non-Havana routes. Every airline got what it wanted. (The only exception was Eastern Airlines, a start-up carrier that isn't yet certified to operate scheduled commercial flights.)
How the flights shake out
American Airlines, which operates a large hub in Miami -- less than 200 miles from the northern shore of Cuba -- requested the most non-Havana flights of any airline. American plans to operate eight daily flights to secondary cities in Cuba. It will fly twice a day to Holguin, Matanzas, and Santa Clara; and once a day to Camaguey and Cienfuegos.
American Airlines will launch eight daily flights to Cuba this fall. Image source: American Airlines.
Tiny regional airline Silver Airways will operate 39 weekly flights from Fort Lauderdale to Cuba -- an average of five or six per day -- spread across all nine of Cuba's secondary international airports. That will give it the second largest number of frequencies. However, it will use 34-seat turboprops for its flights, giving it a smaller market share than its rivals.
JetBlue Airways and Southwest Airlines both plan to fly three times a day from Fort Lauderdale to secondary airports in Cuba. JetBlue will operate one flight each to Camaguey, Holguin, and Santa Clara. Southwest plans to fly twice a day to Matanzas and once a day to Santa Clara.
Ultra-low cost carrier Frontier Airlines will operate a total of 16 weekly flights from Chicago and Philadelphia to a handful of cities in Cuba. Finally, Sun Country Airlines will fly once a week from its base in Minneapolis to Matanzas and Santa Clara.
Now comes the hard part
Most airlines are likely to launch their recently awarded routes to Cuba's secondary airports sometime this fall. The beginning of scheduled service to Cuba should stimulate strong growth in passenger traffic, as the flights will be cheaper and more convenient than charter flights.
On the other hand, the U.S.-Cuba air travel market is still undeveloped. Havana is arguably the only "slam dunk" destination. Furthermore, travelers still need to provide proof that they fall within one of a dozen categories of approved travel. Pure tourism is still banned by the U.S. government.
Thus, some of the flights launching this fall may fail. That's just the nature of opening a new market. However, other routes could be unexpectedly successful, prompting capacity increases. Airlines will have to learn a lot about the U.S.-Cuba travel market in the coming years in order to fully capitalize on this enticing opportunity.
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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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American Airlines (NASDAQ: AAL) , Southwest Airlines (NYSE: LUV) , JetBlue Airways (NASDAQ: JBLU) , Frontier Airlines, Sun Country Airlines, and Silver Airways were all awarded routes to Cuba. Everyone gets what they want -- for now The new U.S.-Cuba aviation treaty allows U.S.-based airlines to operate up to 110 daily flights to Cuba: 20 to Havana and 10 each to nine other international airports in the island nation. When the U.S. government began the application process for allocating routes to Cuba, airlines requested nearly three times as many flights to Havana as the 20 daily frequencies that are available.
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American Airlines (NASDAQ: AAL) , Southwest Airlines (NYSE: LUV) , JetBlue Airways (NASDAQ: JBLU) , Frontier Airlines, Sun Country Airlines, and Silver Airways were all awarded routes to Cuba. Tiny regional airline Silver Airways will operate 39 weekly flights from Fort Lauderdale to Cuba -- an average of five or six per day -- spread across all nine of Cuba's secondary international airports. JetBlue Airways and Southwest Airlines both plan to fly three times a day from Fort Lauderdale to secondary airports in Cuba.
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American Airlines (NASDAQ: AAL) , Southwest Airlines (NYSE: LUV) , JetBlue Airways (NASDAQ: JBLU) , Frontier Airlines, Sun Country Airlines, and Silver Airways were all awarded routes to Cuba. How the flights shake out American Airlines, which operates a large hub in Miami -- less than 200 miles from the northern shore of Cuba -- requested the most non-Havana flights of any airline. Tiny regional airline Silver Airways will operate 39 weekly flights from Fort Lauderdale to Cuba -- an average of five or six per day -- spread across all nine of Cuba's secondary international airports.
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American Airlines (NASDAQ: AAL) , Southwest Airlines (NYSE: LUV) , JetBlue Airways (NASDAQ: JBLU) , Frontier Airlines, Sun Country Airlines, and Silver Airways were all awarded routes to Cuba. JetBlue was one of six airlines to be awarded routes to Cuba last week. American plans to operate eight daily flights to secondary cities in Cuba.
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7946.0
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2016-06-13 00:00:00 UTC
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Nasdaq 100 Movers: AAL, SYMC
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-aal-symc-2016-06-13
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nan
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nan
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In early trading on Monday, shares of Symantec ( SYMC ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.7%. Year to date, Symantec has lost about 13.8% of its value.
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 lower by about 24.3% looking at the year to date performance.
Two other components making moves today are Microsoft ( MSFT ), trading down 3.2%, and Netflix ( NFLX ), trading up 3.4% on the day.
VIDEO: Nasdaq 100 Movers: AAL, SYMC
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, SYMC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group is lower by about 24.3% looking at the year to date performance.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.3%. VIDEO: Nasdaq 100 Movers: AAL, SYMC 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, SYMC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Symantec ( SYMC ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.7%.
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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, SYMC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Monday, shares of Symantec ( SYMC ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.7%.
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7947.0
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2016-06-13 00:00:00 UTC
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S&P 500 Movers: MSFT, SYMC
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AAL
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https://www.nasdaq.com/articles/sp-500-movers-msft-symc-2016-06-13
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nan
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nan
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In early trading on Monday, shares of Symantec ( SYMC ) topped the list of the day's best performing components of the S&P 500 index, trading up 5.0%. Year to date, Symantec has lost about 13.5% of its value.
And the worst performing S&P 500 component thus far on the day is Microsoft ( MSFT ), trading down 3.3%. Microsoft is lower by about 10.3% looking at the year to date performance.
Two other components making moves today are American Airlines Group ( AAL ), trading down 3.0%, and Netflix ( NFLX ), trading up 3.4% on the day.
VIDEO: S&P 500 Movers: MSFT, SYMC
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 3.0%, and Netflix ( NFLX ), trading up 3.4% on the day. And the worst performing S&P 500 component thus far on the day is Microsoft ( MSFT ), trading down 3.3%. VIDEO: S&P 500 Movers: MSFT, SYMC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 3.0%, and Netflix ( NFLX ), trading up 3.4% on the day. And the worst performing S&P 500 component thus far on the day is Microsoft ( MSFT ), trading down 3.3%. VIDEO: S&P 500 Movers: MSFT, SYMC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 3.0%, and Netflix ( NFLX ), trading up 3.4% on the day. In early trading on Monday, shares of Symantec ( SYMC ) topped the list of the day's best performing components of the S&P 500 index, trading up 5.0%. VIDEO: S&P 500 Movers: MSFT, SYMC The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 3.0%, and Netflix ( NFLX ), trading up 3.4% on the day. In early trading on Monday, shares of Symantec ( SYMC ) topped the list of the day's best performing components of the S&P 500 index, trading up 5.0%. And the worst performing S&P 500 component thus far on the day is Microsoft ( MSFT ), trading down 3.3%.
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7948.0
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2016-06-13 00:00:00 UTC
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JetBlue Lowers View Despite Higher May Traffic, Stock Down
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AAL
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https://www.nasdaq.com/articles/jetblue-lowers-view-despite-higher-may-traffic-stock-down-2016-06-13
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nan
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nan
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Low-cost carrier JetBlue Airways Corp.JBLU witnessed an improvement in air traffic this May. Traffic - measured in revenue passenger miles (RPMs) - was 3.84 billion, up 10.7% from 3.47 billion recorded a year ago. On a year-over-year basis, consolidated capacity or available seat miles (ASMs) jumped 12.1% to 4.54 billion. However, shares of the company declined 1.84% to $18.09 due to guidance being lowered for the second quarter.
The load factor or percentage of seats filled by passengers decreased to 84.6% from 85.7% in May 2015 as capacity expansion outweighed traffic growth. JetBlue's preliminary revenue per available seat mile (RASM) in the month dropped roughly 7% year over year. For the first five months of 2016, JetBlue witnessed a 12.2% increase in RPMs to 18.58 billion and 13% rise in ASMs to 22.04 billion, both on a year-over-year basis. However, load factor declined 60 basis points to 84.3%.
Guidance Lowered
Despite growth in traffic, JetBlue lowered its performance guidance for this year due to expected decrease in demand. RASM is now expected to decline by 7.5% to 8.5% for the second quarter of 2016 as compared to a decline of 7% expected earlier. The company has also lowered its capacity guidance for the year. Projected ASM growth has been lowered to a range of 8-9.5% from 8.5-10.5% expected earlier. The below-par outlooks disappointed investors.
JETBLUE AIRWAYS Price
JETBLUE AIRWAYS Price | JETBLUE AIRWAYS Quote
A strong U.S. dollar and possible growth in fuel prices have resulted in airlines closely monitoring their forecasted performance. Delta Air Lines, Inc. DAL projected weaker growth, while American Airlines Group Inc. AAL maintained its earlier forecast. Also, Southwest Airlines Co. LUV announced that it expects slightly better revenues in the second quarter of 2016.
Network Expansion and Flights to Cuba
JetBlue, which carries a Zacks Rank #3 (Hold), is one of the best-performing budget airlines in the U.S. The company's focus on route expansion in order to improve operations in its service areas by driving passenger count and boosting ancillary revenues bode well. JetBlue received encouraging news recently when it was chosen as one of the six US based carriers by the U.S. Department of Transportation (DOT) to operate scheduled flights to Cuba.
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SOUTHWEST AIR (LUV): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
AMER AIRLINES (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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Delta Air Lines, Inc. DAL projected weaker growth, while American Airlines Group Inc. AAL maintained its earlier forecast. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The company's focus on route expansion in order to improve operations in its service areas by driving passenger count and boosting ancillary revenues bode well.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Delta Air Lines, Inc. DAL projected weaker growth, while American Airlines Group Inc. AAL maintained its earlier forecast. Guidance Lowered Despite growth in traffic, JetBlue lowered its performance guidance for this year due to expected decrease in demand.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Delta Air Lines, Inc. DAL projected weaker growth, while American Airlines Group Inc. AAL maintained its earlier forecast. Guidance Lowered Despite growth in traffic, JetBlue lowered its performance guidance for this year due to expected decrease in demand.
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Delta Air Lines, Inc. DAL projected weaker growth, while American Airlines Group Inc. AAL maintained its earlier forecast. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The load factor or percentage of seats filled by passengers decreased to 84.6% from 85.7% in May 2015 as capacity expansion outweighed traffic growth.
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7949.0
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2016-06-13 00:00:00 UTC
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Why American Airlines Group Inc (AAL), OraSure Technologies, Inc. (OSUR) and Petroleo Brasileiro SA Petrobras (ADR) (PBR) Are Three of Today’s Worst Stocks
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-group-inc-aal-orasure-technologies-inc.-osur-and-petroleo-brasileiro
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nan
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nan
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The bulls tried to pull the market out of the hole it was in at the open this morning, but when all was said and done, the early rally effort merely managed to set up an even higher intraday tumble. By the time the closing bell rang, the S&P 500 was at its low for the day, and still picking up bearish steam. The index closed at 2079.09, down 0.81% for the day, mostly on Brexit concerns .
Leading Monday's bearish charge were American Airlines Group Inc (NASDAQ: AAL ), OraSure Technologies, Inc. (NASDAQ: OSUR ) and Petroleo Brasileiro SA Petrobras (ADR) (NYSE: PBR ). Here's a closer look at why each was doomed from the start of Monday's trading.
American Airlines Group Inc (AAL)
It wasn't the only airline to tank on Monday, but the 4% plunge from American Airlines Group - given the company's market cap - dished out the greatest degree of pain.
The prod was this weekend's mass shooting at a gay club in Orlando, Florida, which claimed the lives of 50 and injured another 53 . Further fueling the selling was a bombing at a Shanghai airport this weekend.
5 Stocks to Sell for June
The Orlando shooter, Omar Mateeen, claimed to be a member if ISIS during the shooting. The market is presuming the act may be a sign of a new wave of other terrorist acts, and since airplanes are particularly vulnerable to terrorism, most airline stocks were down today in anticipation of a travel lull.
OraSure Technologies, Inc. (OSUR)
Raymond James pulled the rug out from underneath OraSure Technologies shareholders on Monday, downgrading the stock, and sending OSUR more than 12% lower.
The specifics: Raymond James had scored OSUR as an "Outperform," but lowered its opinion to a mere "Market perform" today when it got within striking distance of the firm's target price of $8.00.
Rather than pushing the target higher, analyst Nicholas Jansen believes OraSure fairly reflects its risk/reward scenario, as a long-term contract inked in 2014 could soon be cancelled with only six months' notice, and margins have likely reached their maximum plausible levels.
Petroleo Brasileiro SA Petrobras (ADR) (PBR)
Last but not least, as if the sheer political anarchy in Brazil against the backdrop of falling crude oil prices wasn't enough for Brazilian energy company Petroleo Brasileiro SA Petrobras (aka "Petrobras") to deal with, the sellers tore into PBR indiscriminately on Monday on the heels of news that the struggling company would soon be facing competition that is even more formidable.
Twitter Inc (TWTR) Stock Soars After LinkedIn Buyout … Keep Dreaming!
Rival Ultrapar Participacoes SA (ADR) (NYSE: UGP ) announced it would be acquiring Alesat Combustiveis , giving it greater scale, and making it even more of a powerhouse.
Fanning the bearish flames were aftershocks of the renewed uncertainty of the United Kingdom's membership in the European Union . Though such a maneuver wouldn't directly affect Brazil or Petrobras, it would rock all foreign exchange rates, and could in turn, shatter a fragile Brazil.
PBR would likely tumble in step with the country's stability. The stock closed more than 4% lower on Monday.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
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The post Why American Airlines Group Inc (AAL), OraSure Technologies, Inc. (OSUR) and Petroleo Brasileiro SA Petrobras (ADR) (PBR) Are Three of Today's Worst Stocks 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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Leading Monday's bearish charge were American Airlines Group Inc (NASDAQ: AAL ), OraSure Technologies, Inc. (NASDAQ: OSUR ) and Petroleo Brasileiro SA Petrobras (ADR) (NYSE: PBR ). American Airlines Group Inc (AAL) It wasn't the only airline to tank on Monday, but the 4% plunge from American Airlines Group - given the company's market cap - dished out the greatest degree of pain. More From InvestorPlace 8 Tech Stocks Better Left Off the Grid 9 Stocks to Buy Now for 21%-Plus Profit Growth The post Why American Airlines Group Inc (AAL), OraSure Technologies, Inc. (OSUR) and Petroleo Brasileiro SA Petrobras (ADR) (PBR) Are Three of Today's Worst Stocks appeared first on InvestorPlace .
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Leading Monday's bearish charge were American Airlines Group Inc (NASDAQ: AAL ), OraSure Technologies, Inc. (NASDAQ: OSUR ) and Petroleo Brasileiro SA Petrobras (ADR) (NYSE: PBR ). More From InvestorPlace 8 Tech Stocks Better Left Off the Grid 9 Stocks to Buy Now for 21%-Plus Profit Growth The post Why American Airlines Group Inc (AAL), OraSure Technologies, Inc. (OSUR) and Petroleo Brasileiro SA Petrobras (ADR) (PBR) Are Three of Today's Worst Stocks appeared first on InvestorPlace . American Airlines Group Inc (AAL) It wasn't the only airline to tank on Monday, but the 4% plunge from American Airlines Group - given the company's market cap - dished out the greatest degree of pain.
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Leading Monday's bearish charge were American Airlines Group Inc (NASDAQ: AAL ), OraSure Technologies, Inc. (NASDAQ: OSUR ) and Petroleo Brasileiro SA Petrobras (ADR) (NYSE: PBR ). More From InvestorPlace 8 Tech Stocks Better Left Off the Grid 9 Stocks to Buy Now for 21%-Plus Profit Growth The post Why American Airlines Group Inc (AAL), OraSure Technologies, Inc. (OSUR) and Petroleo Brasileiro SA Petrobras (ADR) (PBR) Are Three of Today's Worst Stocks appeared first on InvestorPlace . American Airlines Group Inc (AAL) It wasn't the only airline to tank on Monday, but the 4% plunge from American Airlines Group - given the company's market cap - dished out the greatest degree of pain.
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Leading Monday's bearish charge were American Airlines Group Inc (NASDAQ: AAL ), OraSure Technologies, Inc. (NASDAQ: OSUR ) and Petroleo Brasileiro SA Petrobras (ADR) (NYSE: PBR ). More From InvestorPlace 8 Tech Stocks Better Left Off the Grid 9 Stocks to Buy Now for 21%-Plus Profit Growth The post Why American Airlines Group Inc (AAL), OraSure Technologies, Inc. (OSUR) and Petroleo Brasileiro SA Petrobras (ADR) (PBR) Are Three of Today's Worst Stocks appeared first on InvestorPlace . American Airlines Group Inc (AAL) It wasn't the only airline to tank on Monday, but the 4% plunge from American Airlines Group - given the company's market cap - dished out the greatest degree of pain.
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7950.0
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2016-06-13 00:00:00 UTC
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American Airlines' Unit Revenue Turnaround Is About to Begin
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AAL
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https://www.nasdaq.com/articles/american-airlines-unit-revenue-turnaround-about-begin-2016-06-13
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nan
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nan
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Over the past year and a half, American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) have produced the worst unit revenue results among major airlines. Both carriers recently confirmed their Q2 unit revenue forecasts. American projects that passenger revenue per available seat mile (PRASM) will fall 6%-8%; United expects a 6.5%-8.5% PRASM decline.
US Dollar to Brazilian Real Exchange Rate , data by YCharts
Third, the Olympics will provide a short-term boost in demand for travel to Brazil in August. Given that American will face fairly easy year-over-year comparisons, there's a good chance that unit revenue in Brazil will turn positive next quarter, which would be a dramatic turnaround from the recent status quo.
Other initiatives will help, too
In addition to more favorable conditions in the domestic market and in Brazil, American Airlines will benefit from some revenue-enhancing initiatives it is working on. It recently implemented a new demand forecasting system. The new system had some teething pains earlier this year, but going forward it should make a positive contribution to American's revenue performance.
Looking further ahead, American and United both plan to roll out a new "basic economy" fare class by the end of the year. This will help with market segmentation by allowing them to match budget carriers' fares while encouraging less price-sensitive customers to pay a little more.
Finally, American Airlines is launching a new "premium economy" section for international flights beginning in late 2016. This will help it capture incremental revenue from passengers who are willing to pay to upgrade from coach but can't afford business class tickets.
American Airlines President Scott Kirby has warned that unit revenue isn't likely to return to growth until 2017. Still, a confluence of favorable factors should allow the carrier to dramatically reduce its unit revenue declines in the last two quarters of 2016.
A secret billion-dollar stock opportunity
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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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Over the past year and a half, American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) have produced the worst unit revenue results among major airlines. US Dollar to Brazilian Real Exchange Rate , data by YCharts Third, the Olympics will provide a short-term boost in demand for travel to Brazil in August. Given that American will face fairly easy year-over-year comparisons, there's a good chance that unit revenue in Brazil will turn positive next quarter, which would be a dramatic turnaround from the recent status quo.
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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. Over the past year and a half, American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) have produced the worst unit revenue results among major airlines. Both carriers recently confirmed their Q2 unit revenue forecasts.
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Over the past year and a half, American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) have produced the worst unit revenue results among major airlines. Given that American will face fairly easy year-over-year comparisons, there's a good chance that unit revenue in Brazil will turn positive next quarter, which would be a dramatic turnaround from the recent status quo. American Airlines President Scott Kirby has warned that unit revenue isn't likely to return to growth until 2017.
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Over the past year and a half, American Airlines (NASDAQ: AAL) and United Continental (NYSE: UAL) have produced the worst unit revenue results among major airlines. Both carriers recently confirmed their Q2 unit revenue forecasts. It recently implemented a new demand forecasting system.
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7951.0
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2016-06-13 00:00:00 UTC
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Are Airline Stocks (AAL DAL UAL JBLU LUV) Buys on the Dip?
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AAL
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https://www.nasdaq.com/articles/are-airline-stocks-aal-dal-ual-jblu-luv-buys-on-the-dip-2016-06-13
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nan
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nan
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Airline stocks sold off Monday in wake of the mass shooting in Orlando because investors worry that acts of terrorism take a toll on the travel industry.
Although they're right that such acts hurt airlines, the response to such events is really overdone. The market values lost are far in excess of any impact to the top or bottom lines.
Shares in Delta Air Lines, Inc. ( DAL ), United Continental Holdings Inc ( UAL ), American Airlines Group Inc ( AAL ), JetBlue Airways Corporation ( JBLU ), Southwest Airlines Co ( LUV ) fell between 2% and 5% in Monday trading.
7 Yawn-Inducing Stocks With Top-Grade Marks
That equates to several billion dollars of lost shareholder value, and yet the entire travel industry - airfare, hotels, car rentals and associated services - are thought to have cost the industry $8.2 billion in all of last year, according to data site YouGov and ProLogis , an aviation consultancy.
Airline Stocks Have Bigger Problems
That makes this sort market action sure sound like a disproportionate response. It also happens to be the case that the market usually gets over terrorist attacks pretty fast. Shares in major airlines are having a poor 2016, but that's because of the price of crude oil , which is inversely correlated with the sector.
It sounds perverse - cheap oil saves airlines tremendous money - but it stokes fears that they'll expand capacity and crush fare prices.
Smith & Wesson Holding Corp (SWHC) and Sturm, Ruger & Company (RGR) Are Ugly Trades
Oil prices, as well as the sluggish-to-outright crappy global economy, are much bigger risks to airlines stocks than a mass shooting in Orlando, as horrible as that event is.
The market knows this, but still has to bake it in. Expect airline stocks to recoup their losses in the coming sessions.
As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.
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The post Are Airline Stocks (AAL DAL UAL JBLU LUV) Buys on the Dip? 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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Shares in Delta Air Lines, Inc. ( DAL ), United Continental Holdings Inc ( UAL ), American Airlines Group Inc ( AAL ), JetBlue Airways Corporation ( JBLU ), Southwest Airlines Co ( LUV ) fell between 2% and 5% in Monday trading. The post Are Airline Stocks (AAL DAL UAL JBLU LUV) Buys on the Dip? 7 Yawn-Inducing Stocks With Top-Grade Marks That equates to several billion dollars of lost shareholder value, and yet the entire travel industry - airfare, hotels, car rentals and associated services - are thought to have cost the industry $8.2 billion in all of last year, according to data site YouGov and ProLogis , an aviation consultancy.
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Shares in Delta Air Lines, Inc. ( DAL ), United Continental Holdings Inc ( UAL ), American Airlines Group Inc ( AAL ), JetBlue Airways Corporation ( JBLU ), Southwest Airlines Co ( LUV ) fell between 2% and 5% in Monday trading. The post Are Airline Stocks (AAL DAL UAL JBLU LUV) Buys on the Dip? InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips Airline stocks sold off Monday in wake of the mass shooting in Orlando because investors worry that acts of terrorism take a toll on the travel industry.
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Shares in Delta Air Lines, Inc. ( DAL ), United Continental Holdings Inc ( UAL ), American Airlines Group Inc ( AAL ), JetBlue Airways Corporation ( JBLU ), Southwest Airlines Co ( LUV ) fell between 2% and 5% in Monday trading. The post Are Airline Stocks (AAL DAL UAL JBLU LUV) Buys on the Dip? InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips Airline stocks sold off Monday in wake of the mass shooting in Orlando because investors worry that acts of terrorism take a toll on the travel industry.
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Shares in Delta Air Lines, Inc. ( DAL ), United Continental Holdings Inc ( UAL ), American Airlines Group Inc ( AAL ), JetBlue Airways Corporation ( JBLU ), Southwest Airlines Co ( LUV ) fell between 2% and 5% in Monday trading. The post Are Airline Stocks (AAL DAL UAL JBLU LUV) Buys on the Dip? InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips Airline stocks sold off Monday in wake of the mass shooting in Orlando because investors worry that acts of terrorism take a toll on the travel industry.
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7952.0
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2016-06-11 00:00:00 UTC
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As Southwest Airlines and American Airlines Grow in L.A., Will United Shrink?
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-and-american-airlines-grow-la-will-united-shrink-2016-06-11
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nan
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nan
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In recent years, consumer advocates have complained that a series of airline mergers have eroded competition, driving up airfares. That may be true in some places, but it certainly isn't the case in Los Angeles.
In fact, Los Angeles is unique in the U.S. in that all of the major airlines consider it an important market and are fighting for position there. Toward that end, American Airlines (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) are both expanding in the L.A. area. So far, no airline has been able to build up much of a lead, though.
American Airlines just expanded by more than 10% in L.A. Image source: American Airlines.
On the other hand, one prominent airline analyst recently suggested that United Continental (NYSE: UAL) should consider shrinking in L.A. With the competition getting even tougher there, that's a course of action the struggling legacy carrier should definitely consider.
American unveils a big expansion
Los Angeles International Airport (LAX) has been bursting at the seams for years. Gate space is scarce, making it hard for airlines to grow there.
However, American Airlines announced in January that it was building two new gates to increase its capacity there. Earlier this month, it completed the project and added more than 20 daily flights at LAX. This included more than half a dozen new routes, serving important destinations like Seattle, Portland, Minneapolis, and New Orleans.
American Airlines will then add new international routes from LAX to Auckland, New Zealand, and Hong Kong in the next three months. It also hopes to begin flying nonstop to Beijing in December, although it is fighting with Delta Air Lines for the rights to that route.
With these new flights, American will offer more than 220 daily departures at LAX, where it is already the largest carrier with 19% market share.
Southwest looks to grow, too
Southwest Airlines is also looking to grow its presence in the L.A. region. While it hasn't been able to add new gates at LAX this year, Southwest is renovating its existing gates there. This will enable them to more readily accommodate the larger 737-800 aircraft that is becoming an increasingly important part of Southwest's fleet.
Southwest Airlines is also looking for ways to grow L.A. Image source: The Motley Fool.
This will allow Southwest to add capacity on high-demand routes even though gate constraints prevent it from adding more departures right now. Meanwhile, on high-frequency routes, Southwest may be able to cut a few flights as it adds more 737-800s. That would free up space for Southwest to launch flights to new destinations from L.A.
Indeed, Southwest has already announced that it will start flying from LAX to Pittsburgh in August. The carrier also applied earlier this month to fly to three popular Mexican beach markets -- Cancun, Puerto Vallarta, and San Jose del Cabo -- beginning in November.
Additionally, unlike its larger rivals, Southwest offers ample service to the other L.A.-area airports . It is the largest carrier at three of the region's four secondary airports. And last week, Southwest started operations at Long Beach Airport, giving it a presence at all five commercial airports in the L.A. metro area for the first time.
Tough choices for United Continental
While it never had a dominant position in L.A., United Continental was the largest airline at LAX not too long ago. However, two years ago it leased four excess gates there to American Airlines, allowing the latter to take the lead in market share.
Since then, United has gradually trimmed its flight schedule at LAX. Most recently, it decided to end its nonstop flight to New Orleans -- one of the markets that American just entered. The L.A. hub has been a perennial underperformer in United's route network due to the stiff competition it faces there, and the company doesn't seem to have a clear plan to fix it.
United has encountered growing competition at LAX recently. Image source: The Motley Fool.
That's a big reason why Wolfe Research analyst Hunter Keay thinks that United should more aggressively cut capacity in L.A.. Unlike all of its rivals in L.A., United Continental has a strong hub just 300 miles away in San Francisco. United already has twice as much capacity in San Francisco as it does at LAX and holds nearly 45% market share there.
American, Delta, Southwest, and even Alaska Air and JetBlue Airways are all likely to keep growing in L.A. in the coming years as they fight for position there. That's good for travelers, as it will keep fares relatively low.
It's not good for airline shareholders, though. Taking a back seat in the country's second largest city might seem like a humiliating defeat for United Continental. But United might make more money by focusing its operations on markets like San Francisco where it holds a true competitive advantage.
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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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Toward that end, American Airlines (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) are both expanding in the L.A. area. On the other hand, one prominent airline analyst recently suggested that United Continental (NYSE: UAL) should consider shrinking in L.A. With the competition getting even tougher there, that's a course of action the struggling legacy carrier should definitely consider. The carrier also applied earlier this month to fly to three popular Mexican beach markets -- Cancun, Puerto Vallarta, and San Jose del Cabo -- beginning in November.
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Toward that end, American Airlines (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) are both expanding in the L.A. area. American unveils a big expansion Los Angeles International Airport (LAX) has been bursting at the seams for years. Tough choices for United Continental While it never had a dominant position in L.A., United Continental was the largest airline at LAX not too long ago.
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Toward that end, American Airlines (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) are both expanding in the L.A. area. Southwest looks to grow, too Southwest Airlines is also looking to grow its presence in the L.A. region. Tough choices for United Continental While it never had a dominant position in L.A., United Continental was the largest airline at LAX not too long ago.
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Toward that end, American Airlines (NASDAQ: AAL) and Southwest Airlines (NYSE: LUV) are both expanding in the L.A. area. However, American Airlines announced in January that it was building two new gates to increase its capacity there. United has encountered growing competition at LAX recently.
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7953.0
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2016-06-10 00:00:00 UTC
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American Airlines' May Traffic Displays Moderate Growth
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AAL
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https://www.nasdaq.com/articles/american-airlines-may-traffic-displays-moderate-growth-2016-06-10
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nan
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nan
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Premier passenger carrier American Airlines Group Inc.AAL posted modest air traffic growth in the month of May. Traffic - measured in revenue passenger miles (RPMs) - was 19.4 billion, up 0.5% from 19.3 billion recorded last May.
On a year-over-year basis, consolidated capacity (available seat miles/ASMs) inched up 1.7% to 23.74 billion. However, the load factor or percentage of seats filled by passengers decreased to 81.9% from 82.8% in May 2015 as capacity expansion outweighed traffic growth.
In the first five months of 2016, American Airlines recorded 1.9% growth in RPMs to 89.24 billion, while ASMs inched up 2.7% to 111.22 billion, both on a year-over-year basis. Also, the load factor declined 70 basis points year over year to 80.2%. Moreover, total passenger count (Enplanements) in May decreased 0.1% and increased 0.4% in the first five months of 2016.
We believe that the company's route expansion plans, introduction of ancillary products and customer service enhancement bode well for the future. Further, the company has been reaping considerable benefits from its joint ventures and code share agreements.
Guidance Reiterated
American Airlines reiterated its forecast of a 6-8% decline in PRASM (passenger revenue per available seat mile) for the second quarter of 2016. The company also continues to expect a pre-tax margin of 14% to 16% for the second quarter.
The decrease in PRASM is most likely the result of higher capacity growth amid a bleak demand environment. Low fuel prices have resulted in high fare competitiveness alongside boosting margins.
Thus, American Airlines will need to maintain a capacity and demand balance.
Improved Loyalty Program and Wi-Fi Service
American Airlines recently announced changes to its award-winning AAdvantage customer loyalty program. The company will start to award miles based on the price of tickets instead of distance. The redesigned program will become effective as of Aug 1, 2016.
In order to improve the Wireless services available to its customers, American Airlines recently selected ViaSat Inc. VSAT to provide Wi-Fi on its Boeing 737 MAX fleet. The award-winning company is expected to provide a much faster, optimized and high quality Internet service to American Airlines' passengers.
Zacks Rank & Stocks to Consider
American Airlines currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the airline industry include SkyWest Inc. SKYW with a Zacks Rank #1 (Strong Buy) and Cathay Pacific Airways Limited CPCAY with a Zacks Rank #2 (Buy).
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 >>
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
CATHAY PAC AIR (CPCAY): Free Stock Analysis Report
SKYWEST INC (SKYW): Free Stock Analysis Report
VIASAT INC (VSAT): Free Stock Analysis Report
AMER AIRLINES (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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Premier passenger carrier American Airlines Group Inc.AAL posted modest air traffic growth in the month of May. Click to get this free report CATHAY PAC AIR (CPCAY): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report VIASAT INC (VSAT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In order to improve the Wireless services available to its customers, American Airlines recently selected ViaSat Inc. VSAT to provide Wi-Fi on its Boeing 737 MAX fleet.
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Click to get this free report CATHAY PAC AIR (CPCAY): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report VIASAT INC (VSAT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Premier passenger carrier American Airlines Group Inc.AAL posted modest air traffic growth in the month of May. Improved Loyalty Program and Wi-Fi Service American Airlines recently announced changes to its award-winning AAdvantage customer loyalty program.
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Click to get this free report CATHAY PAC AIR (CPCAY): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report VIASAT INC (VSAT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Premier passenger carrier American Airlines Group Inc.AAL posted modest air traffic growth in the month of May. In the first five months of 2016, American Airlines recorded 1.9% growth in RPMs to 89.24 billion, while ASMs inched up 2.7% to 111.22 billion, both on a year-over-year basis.
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Premier passenger carrier American Airlines Group Inc.AAL posted modest air traffic growth in the month of May. Click to get this free report CATHAY PAC AIR (CPCAY): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report VIASAT INC (VSAT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. However, the load factor or percentage of seats filled by passengers decreased to 81.9% from 82.8% in May 2015 as capacity expansion outweighed traffic growth.
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7954.0
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2016-06-10 00:00:00 UTC
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Gogo Inc (GOGO) Prices 12.50% Senior Notes worth $525M
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AAL
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https://www.nasdaq.com/articles/gogo-inc-gogo-prices-12.50-senior-notes-worth-%24525m-2016-06-10
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nan
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nan
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In-flight wireless services provider Gogo Inc.GOGO recently priced 12.50% Senior Notes with an aggregate principal amount of $525 million. The notes are set to mature in 2022. We remind investors that this is the second time that the company has issued such bonds. Two weeks ago, the company halted the sale of similar notes. As a result, it has increased the coupon rate by 50 basis points to 12.50% for the current issue.
Note Details and Utilization
The notes will be co-issued by Gogo's directly wholly owned subsidiary, Gogo Intermediate Holdings LLC and its indirect wholly owned subsidiary, Gogo Finance Co. Gogo Inc will act as a guarantor for the notes on a senior secured basis. The offering is expected to close on Jun 14, subject to customary closing conditions. The offering will be exempt from the registered requirements of the U.S. Securities Act of 1933 and will be made as a private offering, available only to qualified institutional investors.
Net proceeds from this offering will be used to repay Gogo's outstanding debt under its senior term credit facility. The company intends to use the remaining amount for capital and general corporate purposes. A portion of the proceeds may also be used to finance the launch and commercial roll-out of the company's next generation technology solutions, namely the satellite-based 2Ku system.
GOGO INC Cash from Financing (Quarterly)
GOGO INC Cash from Financing (Quarterly) | GOGO INC Quote
The Bottom Line
Presently, the company provides services via its ground-based network, which makes it impossible to connect to every passenger onboard. This operational hindrance has made American Airlines Group Inc. AAL , one of Gogo's major customers, to split contract orders between Gogo and its rival, ViaSat Inc. VSAT , for providing WiFi services to American Airlines' new 737 MAX fleet, manufactured by The Boeing Company BA . However, with additional financing in the bag through the bond issue, Gogo will be able to install the next-generation satellite-based system which will help bolster its revenues, going forward.
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 >>
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
VIASAT INC (VSAT): Free Stock Analysis Report
BOEING CO (BA): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
GOGO INC (GOGO): 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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This operational hindrance has made American Airlines Group Inc. AAL , one of Gogo's major customers, to split contract orders between Gogo and its rival, ViaSat Inc. VSAT , for providing WiFi services to American Airlines' new 737 MAX fleet, manufactured by The Boeing Company BA . Click to get this free report VIASAT INC (VSAT): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report GOGO INC (GOGO): Free Stock Analysis Report To read this article on Zacks.com click here. In-flight wireless services provider Gogo Inc.GOGO recently priced 12.50% Senior Notes with an aggregate principal amount of $525 million.
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Click to get this free report VIASAT INC (VSAT): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report GOGO INC (GOGO): Free Stock Analysis Report To read this article on Zacks.com click here. This operational hindrance has made American Airlines Group Inc. AAL , one of Gogo's major customers, to split contract orders between Gogo and its rival, ViaSat Inc. VSAT , for providing WiFi services to American Airlines' new 737 MAX fleet, manufactured by The Boeing Company BA . Note Details and Utilization The notes will be co-issued by Gogo's directly wholly owned subsidiary, Gogo Intermediate Holdings LLC and its indirect wholly owned subsidiary, Gogo Finance Co. Gogo Inc will act as a guarantor for the notes on a senior secured basis.
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Click to get this free report VIASAT INC (VSAT): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report GOGO INC (GOGO): Free Stock Analysis Report To read this article on Zacks.com click here. This operational hindrance has made American Airlines Group Inc. AAL , one of Gogo's major customers, to split contract orders between Gogo and its rival, ViaSat Inc. VSAT , for providing WiFi services to American Airlines' new 737 MAX fleet, manufactured by The Boeing Company BA . Note Details and Utilization The notes will be co-issued by Gogo's directly wholly owned subsidiary, Gogo Intermediate Holdings LLC and its indirect wholly owned subsidiary, Gogo Finance Co. Gogo Inc will act as a guarantor for the notes on a senior secured basis.
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Click to get this free report VIASAT INC (VSAT): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report GOGO INC (GOGO): Free Stock Analysis Report To read this article on Zacks.com click here. This operational hindrance has made American Airlines Group Inc. AAL , one of Gogo's major customers, to split contract orders between Gogo and its rival, ViaSat Inc. VSAT , for providing WiFi services to American Airlines' new 737 MAX fleet, manufactured by The Boeing Company BA . Note Details and Utilization The notes will be co-issued by Gogo's directly wholly owned subsidiary, Gogo Intermediate Holdings LLC and its indirect wholly owned subsidiary, Gogo Finance Co. Gogo Inc will act as a guarantor for the notes on a senior secured basis.
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7955.0
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2016-06-09 00:00:00 UTC
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Nasdaq 100 Movers: BBBY, AAL
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-bbby-aal-2016-06-09
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nan
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nan
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In early trading on Thursday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.3%. Year to date, American Airlines Group has lost about 21.5% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Bed, Bath & Beyond ( BBBY ), trading down 3.2%. Bed, Bath & Beyond is lower by about 8.7% looking at the year to date performance.
Two other components making moves today are Discovery Communications ( DISCK ), trading down 2.4%, and Endo International ( ENDP ), trading up 2.1% on the day.
VIDEO: Nasdaq 100 Movers: BBBY, AAL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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In early trading on Thursday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.3%. VIDEO: Nasdaq 100 Movers: BBBY, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is Bed, Bath & Beyond ( BBBY ), trading down 3.2%.
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In early trading on Thursday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.3%. VIDEO: Nasdaq 100 Movers: BBBY, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Year to date, American Airlines Group has lost about 21.5% of its value.
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In early trading on Thursday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.3%. VIDEO: Nasdaq 100 Movers: BBBY, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is Bed, Bath & Beyond ( BBBY ), trading down 3.2%.
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In early trading on Thursday, shares of American Airlines Group ( AAL ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 2.3%. VIDEO: Nasdaq 100 Movers: BBBY, AAL The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. And the worst performing Nasdaq 100 component thus far on the day is Bed, Bath & Beyond ( BBBY ), trading down 3.2%.
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7956.0
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2016-06-09 00:00:00 UTC
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S&P 500 Movers: NRG, SJM
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AAL
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https://www.nasdaq.com/articles/sp-500-movers-nrg-sjm-2016-06-09
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nan
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nan
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In early trading on Thursday, shares of J.M. Smucker ( SJM ) topped the list of the day's best performing components of the S&P 500 index, trading up 5.5%. Year to date, J.M. Smucker registers a 13.5% gain.
And the worst performing S&P 500 component thus far on the day is NRG Energy ( NRG ), trading down 7.9%. NRG Energy is showing a gain of 39.2% looking at the year to date performance.
Two other components making moves today are Freeport-McMoran Copper & Gold ( FCX ), trading down 5.2%, and American Airlines Group ( AAL ), trading up 2.6% on the day.
VIDEO: S&P 500 Movers: NRG, SJM
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are Freeport-McMoran Copper & Gold ( FCX ), trading down 5.2%, and American Airlines Group ( AAL ), trading up 2.6% on the day. Smucker ( SJM ) topped the list of the day's best performing components of the S&P 500 index, trading up 5.5%. NRG Energy is showing a gain of 39.2% looking at the year to date performance.
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Two other components making moves today are Freeport-McMoran Copper & Gold ( FCX ), trading down 5.2%, and American Airlines Group ( AAL ), trading up 2.6% on the day. And the worst performing S&P 500 component thus far on the day is NRG Energy ( NRG ), trading down 7.9%. VIDEO: S&P 500 Movers: NRG, SJM The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are Freeport-McMoran Copper & Gold ( FCX ), trading down 5.2%, and American Airlines Group ( AAL ), trading up 2.6% on the day. And the worst performing S&P 500 component thus far on the day is NRG Energy ( NRG ), trading down 7.9%. VIDEO: S&P 500 Movers: NRG, SJM The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are Freeport-McMoran Copper & Gold ( FCX ), trading down 5.2%, and American Airlines Group ( AAL ), trading up 2.6% on the day. Smucker ( SJM ) topped the list of the day's best performing components of the S&P 500 index, trading up 5.5%. And the worst performing S&P 500 component thus far on the day is NRG Energy ( NRG ), trading down 7.9%.
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7957.0
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2016-06-09 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Delta Air Lines, Alaska Air Group, Southwest Airlines, Spirit Airlines 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-alaska-air-group-southwest-airlines
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nan
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nan
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For Immediate Release
Chicago, IL - June 9, 2016 - 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, Inc. ( DAL ), Alaska Air Group, Inc. ( ALK ), Southwest Airlines ( LUV ), Spirit Airlines ( SAVE ) and American Airlines Group ( AAL ).
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
The past week saw the raising of the 2016 profitability outlook for the airline industry to $39.4 billion from $36.3 billion by the International Air Transport Association (IATA), courtesy weak oil prices . All regions, barring Africa, are expected to perform well in 2016 with North America expected to lead the show.
Moreover, woes related to passenger unit revenue (PRASM, a measure of unit revenue) continued to hurt Delta Air Lines, Inc. ( DAL ) with the Atlanta, GA-based carrier revealing that the metric declined 5% in May. On the other hand, Alaska Air Group, Inc. ( ALK ), the parent company of Alaska Airlines, reported healthy traffic numbers for May buoyed by increased demand.
Furthermore, expansion-related and labor friendly updates from Southwest Airlines ( LUV ) and Spirit Airlines ( SAVE ) gained attention over the past week. American Airlines Group's ( AAL ) announcement of modifying its frequent flier program also grabbed headlines.
Recap of the Past Week's Most Important Stories
1. Delta's May traffic - measured in revenue passenger miles (RPMs) - improved 3.3% and capacity expanded 3.5%. The greater increase in capacity compared with traffic caused load factor (percentage of seats filled by passengers) to decrease to 85.3% in the month. However, PRASM continued to decline due to adverse foreign exchange movements and soft domestic yields (read more: Delta Air Lines' May Traffic Up, PRASM Declines 5% ).
2. At its Annual General Meeting in Dublin, the IATA increased its projection for 2016 global net profit for the industry to $39.4 billion from the earlier $36.3 billion. The comparable 2015 figure was $35.3 billion. In the event of the forecast coming true, 2016 will be the fifth successive year of profit improvement for the airline industry (read more: Good Times to Continue for Airlines? IATA Says So ).
3. Alaska Air Group saw its May air traffic move up 11.6% year over year on an 11.3% rise in capacity. Load factor increased to 84.7%, courtesy the greater rise in traffic (read more: Alaska Air Group May Traffic Maintains Growth Trend ).
4. In a bid to expand, Southwest Airlines has filed an application with the U.S. Department of Transportation (DOT) for permission to fly to three more Mexican cities. The carrier intends to operate non-stop flights between Los Angeles and the Mexican destinations - Cancún, San José del Cabo/Los Cabos and Puerto Vallarta - from Nov 6, 2016, assuming that it gets the approval by Jun 30 (read more: Southwest Airlines Looks to Add 3 Mexican Destinations ).
5 Spirit Airlines inked a pay related tentative contract with the International Association of Machinists & Aerospace Workers or IAM. The provisional deal covers the members of the ramp service team of the low-cost carrier based at Fort Lauderdale-Hollywood International Airport. The ratification voting procedure will carried out later in the month.
6. In a customer-friendly move, the Fort Worth, TX-based American Airlines Group modified its AAdvantage Loyalty Program. Following the modification, the elite members of American Airlines' AAdvantage program will earn bonus miles for every dollar spent rather than the distance flown. The changes, similar to those made by its peers like Delta, will take effect from Aug 1. The carrier said that its elite fliers will earn five miles for every dollar spent on tickets (base fares and carrier-imposed fees). That number of miles awarded rises to seven, eight or eleven with an increase in elite status level - gold, platinum and executive-platinum, respectively.
Also from Jan 1, 2017, American Airlines intends to introduce another level to its elite class - placed between platinum and executive platinum levels. Moreover, for being eligible for the elite status, fliers need to meet minimum annual spending levels in addition to the existing elite-qualification requirements. For example, to qualify for the gold level, a flier will have to spend at least $3,000 apart from flying 25,000 miles or 30 segments annually. This change will also take effect from Jan 1, 2017.
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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 (DAL): Free Stock Analysis Report
ALASKA AIR GRP (ALK): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
SPIRIT AIRLINES (SAVE): Free Stock Analysis Report
AMER AIRLINES (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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Stocks recently featured in the blog include Delta Air Lines, Inc. ( DAL ), Alaska Air Group, Inc. ( ALK ), Southwest Airlines ( LUV ), Spirit Airlines ( SAVE ) and American Airlines Group ( AAL ). American Airlines Group's ( AAL ) announcement of modifying its frequent flier program also grabbed headlines. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): 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, Inc. ( DAL ), Alaska Air Group, Inc. ( ALK ), Southwest Airlines ( LUV ), Spirit Airlines ( SAVE ) and American Airlines Group ( AAL ). Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group's ( AAL ) announcement of modifying its frequent flier program also grabbed headlines.
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Stocks recently featured in the blog include Delta Air Lines, Inc. ( DAL ), Alaska Air Group, Inc. ( ALK ), Southwest Airlines ( LUV ), Spirit Airlines ( SAVE ) and American Airlines Group ( AAL ). Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines Group's ( AAL ) announcement of modifying its frequent flier program also grabbed headlines.
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Stocks recently featured in the blog include Delta Air Lines, Inc. ( DAL ), Alaska Air Group, Inc. ( ALK ), Southwest Airlines ( LUV ), Spirit Airlines ( SAVE ) and American Airlines Group ( AAL ). American Airlines Group's ( AAL ) announcement of modifying its frequent flier program also grabbed headlines. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report SPIRIT AIRLINES (SAVE): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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7958.0
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2016-06-08 00:00:00 UTC
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Delta Air lines (DAL) Poised for Growth on Low Fuel Costs
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-dal-poised-for-growth-on-low-fuel-costs-2016-06-08
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nan
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nan
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We issued an updated research report on Delta Air Lines, Inc.DAL on Jun 6, 2016.
Delta reported robust first-quarter 2016 earnings that surpassed the Zacks Consensus Estimate and almost doubled from the previous year on low fuel costs. However, the company's top line marginally missed our expectation and also deteriorated year over year. Nevertheless, the company's earnings history has been impressive with positive surprises in three of the last four quarters with an average beat of 1.84%.
Delta, like most other airlines, has been enjoying higher margins in the recent quarters with low fuel prices. For the second quarter, the carrier expects operating margin in the range of 21% to 23%. System capacity is likely to rise 2-3% year over year, whereas passenger unit revenues are projected to decline by 2.5-4.5%
The company is expected to generate savings of around $3 billion in 2016 due to low fuel costs. This is expected to help in boosting margins.
Higher Returns to Stakeholders
Delta has made consistent efforts to enhance returns to shareholders through dividends and share buybacks. The company returned $882 million to it shareholders in the first quarter. The company also remains on track to accelerate its share buyback program. This apart, Delta hiked dividends by over 50% in May this year to more than 20 cents per share. The new dividend is payable in the third quarter.
In addition to rewarding shareholders, the company has maintained an impressive record of sharing profits with employees. It paid $1.5 billion to employees in Feb this year as part of the 2015 profit sharing program. In fact, the company has paid $4.1 billion over the past five years to employees rewarding them for operational excellence.
Strong Balance Sheet
Delta has managed to reduce its debt significantly from the 2009 levels. Delta strives to maintain a strong balance sheet by effectively managing its capital expenses. To this end, the company deferred the delivery of four wide-bodied aircrafts from 2018 to 2019-20. The company intends to reduce capacity growth to below 2% in the second half of 2016. and expects to be the first carrier to return to "positive unit revenue growth later this year."
Headwinds
Various macroeconomic and geopolitical factors such as slow economic growth, terrorist attacks and rise of war zones have limited revenue growth for the airline industry. Delta's passenger revenue per available seat mile (PRASM) declined in May and the downtrend is expected to continue even in the months ahead. Additionally, issues such as feud with some Middle East airlines over market share and legal probe by the Department of Justice (DoJ) on unlawful coordination with American Airlines Group Inc. AAL , United Continental Holdings, Inc. UAL and Southwest Airlines Co. to limit seat availability remain concerns.
Growth and Estimates
However, Delta retains its strong brand name and continues to be one of the most profitable airlines in the industry. The company maintains a strong global network and keeps adding capacity in high traffic routes such as those to the United Kingdom.
The EPS estimates for this Zacks Rank #3 (Hold) stock has been pegged at $6.51 and $6.76 for 2016 and 2017, respectively. This translates to a growth of 41.18% this year and 3.94% in 2017.
A Stock to Consider
A better-ranked stock to be considered in the sector is Air France - KLM AFLYY , which sports a Zacks Rank #1 (Strong Buy).
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 >>
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DELTA AIR LINES (DAL): Free Stock Analysis Report
AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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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Additionally, issues such as feud with some Middle East airlines over market share and legal probe by the Department of Justice (DoJ) on unlawful coordination with American Airlines Group Inc. AAL , United Continental Holdings, Inc. UAL and Southwest Airlines Co. to limit seat availability remain concerns. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Delta reported robust first-quarter 2016 earnings that surpassed the Zacks Consensus Estimate and almost doubled from the previous year on low fuel costs.
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Additionally, issues such as feud with some Middle East airlines over market share and legal probe by the Department of Justice (DoJ) on unlawful coordination with American Airlines Group Inc. AAL , United Continental Holdings, Inc. UAL and Southwest Airlines Co. to limit seat availability remain concerns. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (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 (DAL): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Additionally, issues such as feud with some Middle East airlines over market share and legal probe by the Department of Justice (DoJ) on unlawful coordination with American Airlines Group Inc. AAL , United Continental Holdings, Inc. UAL and Southwest Airlines Co. to limit seat availability remain concerns. System capacity is likely to rise 2-3% year over year, whereas passenger unit revenues are projected to decline by 2.5-4.5% The company is expected to generate savings of around $3 billion in 2016 due to low fuel costs.
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Additionally, issues such as feud with some Middle East airlines over market share and legal probe by the Department of Justice (DoJ) on unlawful coordination with American Airlines Group Inc. AAL , United Continental Holdings, Inc. UAL and Southwest Airlines Co. to limit seat availability remain concerns. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. System capacity is likely to rise 2-3% year over year, whereas passenger unit revenues are projected to decline by 2.5-4.5% The company is expected to generate savings of around $3 billion in 2016 due to low fuel costs.
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7959.0
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2016-06-07 00:00:00 UTC
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ViaSat to Offer Internet Services on Zetta Jet Flights
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AAL
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https://www.nasdaq.com/articles/viasat-to-offer-internet-services-on-zetta-jet-flights-2016-06-07
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nan
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nan
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California-based communications company ViaSat Inc.VSAT is on a roll, clinching a deal from private airline company Zetta Jet, close on the heels of the lucrative win from American Airlines AAL .
In-Flight Connectivity
Zetta Jet entered a deal with ViaSat to offer faster and more reliable in-flight Internet connectivity. ViaSat will offer its services to Zetta Jet's "Bombardier Global ultra-long range" business aircraft. Meanwhile, ViaSat has garnered a solid reputation among airline companies for offering in-flight Internet service that facilitates high-quality live video streaming, VPN connections, video conferencing and high-quality Voice over Internet Protocol (VoIP) phone calls.
These offerings serve both leisure and corporate fliers, providing much optimism to Zetta Jet officials who believe that these services will help enhance customer satisfaction. As a matter of fact, Zetta Jet has witnessed over 40 GB of data consumption through ViaSat's network in business jets within the first month of the service rollout.
ViaSat's Networks
ViaSat has gained a strong foothold in the aviation industry, leveraging on the competence of its "Ka-band" and "Ku-band" satellite networks. The company's global network services serve approximately 90% of the world's popular flight routes, providing clients with unprecedented service quality. The company's in-flight Internet services are being deployed on commercial flights of Virgin America and The Boeing Company which has been driving significant revenue growth over the past few quarters.
Key Developments
Concurrent with the fourth-quarter earnings release, ViaSat announced a multi-year agreement with leading aerospace company, Dassault Aviation. Apart from this, the deployment of Fly-Fi - JetBlue's Wi-Fi brand powered by ViaSat's in-flight Internet system - in over 150 Airbus A320 and A321 aircraft of JetBlue is noteworthy. We believe that such contract wins fortify the company's leading position in end-markets, allowing it to gain a competitive edge over its peers.
ViaSat currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Ubiquiti Networks, Inc. UBNT and Sonus Networks, Inc. SONS . While Ubiquiti Networks sports a Zacks Rank #1 (Strong Buy), Sonus Networks carries a Zacks Rank #2 (Buy).
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SONUS NETWORKS (SONS): Free Stock Analysis Report
VIASAT INC (VSAT): Free Stock Analysis Report
UBIQUITI NETWRK (UBNT): Free Stock Analysis Report
AMER AIRLINES (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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California-based communications company ViaSat Inc.VSAT is on a roll, clinching a deal from private airline company Zetta Jet, close on the heels of the lucrative win from American Airlines AAL . Click to get this free report SONUS NETWORKS (SONS): Free Stock Analysis Report VIASAT INC (VSAT): Free Stock Analysis Report UBIQUITI NETWRK (UBNT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. These offerings serve both leisure and corporate fliers, providing much optimism to Zetta Jet officials who believe that these services will help enhance customer satisfaction.
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Click to get this free report SONUS NETWORKS (SONS): Free Stock Analysis Report VIASAT INC (VSAT): Free Stock Analysis Report UBIQUITI NETWRK (UBNT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. California-based communications company ViaSat Inc.VSAT is on a roll, clinching a deal from private airline company Zetta Jet, close on the heels of the lucrative win from American Airlines AAL . Meanwhile, ViaSat has garnered a solid reputation among airline companies for offering in-flight Internet service that facilitates high-quality live video streaming, VPN connections, video conferencing and high-quality Voice over Internet Protocol (VoIP) phone calls.
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California-based communications company ViaSat Inc.VSAT is on a roll, clinching a deal from private airline company Zetta Jet, close on the heels of the lucrative win from American Airlines AAL . Click to get this free report SONUS NETWORKS (SONS): Free Stock Analysis Report VIASAT INC (VSAT): Free Stock Analysis Report UBIQUITI NETWRK (UBNT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, ViaSat has garnered a solid reputation among airline companies for offering in-flight Internet service that facilitates high-quality live video streaming, VPN connections, video conferencing and high-quality Voice over Internet Protocol (VoIP) phone calls.
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California-based communications company ViaSat Inc.VSAT is on a roll, clinching a deal from private airline company Zetta Jet, close on the heels of the lucrative win from American Airlines AAL . Click to get this free report SONUS NETWORKS (SONS): Free Stock Analysis Report VIASAT INC (VSAT): Free Stock Analysis Report UBIQUITI NETWRK (UBNT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In-Flight Connectivity Zetta Jet entered a deal with ViaSat to offer faster and more reliable in-flight Internet connectivity.
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7960.0
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2016-06-07 00:00:00 UTC
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Why American Airlines Group Inc (AAL), LDR Holding Corp (LDRH) and United Natural Foods, Inc. (UNFI) Are 3 of Today’s Best Stocks
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AAL
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https://www.nasdaq.com/articles/why-american-airlines-group-inc-aal-ldr-holding-corp-ldrh-and-united-natural-foods-inc.
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nan
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nan
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
U.S. stocks rallied again on Tuesday as expectations that the Federal Reserve will raise interest rates later this month continue diminishing while oil prices continue rising. West Texas Intermediate topped $50 per barrel for the first time in 10 months Tuesday.
That helped the S&P 500 climb 0.13% while the Dow Jones Industrial Average added 0.1%. The Nasdaq Composite finished lower by 0.14%.
Even with higher oil prices, American Airlines Group Inc (NASDAQ: AAL ) was one of today's best stocks while LDR Holding Corp (NASDAQ: LDRH ) and United Natural Foods, Inc. (NASDAQ: UNFI ) joined that prestigious group for other reasons.
American Airlines Group Inc (AAL)
American Airlines, one of the largest U.S. carriers, flew higher by 3.5% on heavy volume a day after the company revealed changes to its frequent flier program. At the crux of AAL's frequent flier changes is money. Passengers that pay higher fares will receive bigger AAL rewards.
7 Best Stocks to Buy on the Next Dip
Shares of AAL rose today despite oil prices touching their highest levels of 2016 and even with data indicating that AAL had one of the highest number of canceled flights in the airline industry last month .
AAL shares are down more than 23% year-to-date.
LDR Holding Corp (LDRH)
Shares of medical device maker LDR Holding surged 63.8% on more than 60 times the average daily volume after Zimmer Biomet Holdings Inc (NYSE: ZBH ) said it will acquire LDRH for $1 billion.
ZBH's offer for LDRH equals $37 a share, a 68% premium to where shares of LDRH closed yesterday. The deal is expected to be finalized next quarter.
ZBH's acquisition of LDRH bolsters the former's position in the spine disorder surgical technology market, according to the Associated Press .
United Natural Foods, Inc. (UNFI)
Wholesale food retailer United Natural Foods soared 14% on volume that was more than seven times the daily average after the company said it earned 76 cents a share in its fiscal third quarter.
7 Big Tech Stocks Leading the Second-Half Charge
Analysts expected UNFI to earn 66 cents a share.
UNFI said sales for the period were $2.13 billion, slightly below the $2.16 billion analysts expected. For 2016, UNFI expects to earn $2.39 to $2.45 per share on sales of $8.46 billion to $8.5 billion.
At the time of this writing, Todd Shriber did not own any of the aforementioned securities.
More From InvestorPlace
The 10 Best Healthcare Stocks to Buy in a Rocky Market
The Top 10 S&P 500 Dividend Stocks to Buy Now
The post Why American Airlines Group Inc (AAL), LDR Holding Corp (LDRH) and United Natural Foods, Inc. (UNFI) Are 3 of Today's Best Stocks 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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7 Best Stocks to Buy on the Next Dip Shares of AAL rose today despite oil prices touching their highest levels of 2016 and even with data indicating that AAL had one of the highest number of canceled flights in the airline industry last month . Even with higher oil prices, American Airlines Group Inc (NASDAQ: AAL ) was one of today's best stocks while LDR Holding Corp (NASDAQ: LDRH ) and United Natural Foods, Inc. (NASDAQ: UNFI ) joined that prestigious group for other reasons. American Airlines Group Inc (AAL) American Airlines, one of the largest U.S. carriers, flew higher by 3.5% on heavy volume a day after the company revealed changes to its frequent flier program.
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Even with higher oil prices, American Airlines Group Inc (NASDAQ: AAL ) was one of today's best stocks while LDR Holding Corp (NASDAQ: LDRH ) and United Natural Foods, Inc. (NASDAQ: UNFI ) joined that prestigious group for other reasons. More From InvestorPlace The 10 Best Healthcare Stocks to Buy in a Rocky Market The Top 10 S&P 500 Dividend Stocks to Buy Now The post Why American Airlines Group Inc (AAL), LDR Holding Corp (LDRH) and United Natural Foods, Inc. (UNFI) Are 3 of Today's Best Stocks appeared first on InvestorPlace . American Airlines Group Inc (AAL) American Airlines, one of the largest U.S. carriers, flew higher by 3.5% on heavy volume a day after the company revealed changes to its frequent flier program.
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Even with higher oil prices, American Airlines Group Inc (NASDAQ: AAL ) was one of today's best stocks while LDR Holding Corp (NASDAQ: LDRH ) and United Natural Foods, Inc. (NASDAQ: UNFI ) joined that prestigious group for other reasons. More From InvestorPlace The 10 Best Healthcare Stocks to Buy in a Rocky Market The Top 10 S&P 500 Dividend Stocks to Buy Now The post Why American Airlines Group Inc (AAL), LDR Holding Corp (LDRH) and United Natural Foods, Inc. (UNFI) Are 3 of Today's Best Stocks appeared first on InvestorPlace . American Airlines Group Inc (AAL) American Airlines, one of the largest U.S. carriers, flew higher by 3.5% on heavy volume a day after the company revealed changes to its frequent flier program.
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Even with higher oil prices, American Airlines Group Inc (NASDAQ: AAL ) was one of today's best stocks while LDR Holding Corp (NASDAQ: LDRH ) and United Natural Foods, Inc. (NASDAQ: UNFI ) joined that prestigious group for other reasons. More From InvestorPlace The 10 Best Healthcare Stocks to Buy in a Rocky Market The Top 10 S&P 500 Dividend Stocks to Buy Now The post Why American Airlines Group Inc (AAL), LDR Holding Corp (LDRH) and United Natural Foods, Inc. (UNFI) Are 3 of Today's Best Stocks appeared first on InvestorPlace . American Airlines Group Inc (AAL) American Airlines, one of the largest U.S. carriers, flew higher by 3.5% on heavy volume a day after the company revealed changes to its frequent flier program.
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7961.0
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2016-06-06 00:00:00 UTC
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ViaSat Stock Gains on American Airlines Wi-Fi Contract
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AAL
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https://www.nasdaq.com/articles/viasat-stock-gains-on-american-airlines-wi-fi-contract-2016-06-06
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nan
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nan
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ViaSat Inc. VSAT shares jumped close to 5% as the company secured a contract to provide internet access on 100 new American Airlines Group AAL planes.
This contract breaks in-flight Wi-Fi services market leader Gogo Inc.'s GOGO stronghold on the airline's in-flight connectivity business.
Gogo used to deliver in-flight Wi-Fi for the majority of American Airlines' 1,100 aircraft using its ground-based system. However, if too many passengers logged in at the same time, web browsing tended to become slow. In contrast, ViaSat provides satellite-based broadband connections which deliver higher speeds and better quality.
Gogo's shares toppled more than 16% following the announcement, as ViaSat's win represents the loss of a significant piece of business for the former.
Under the contract, ViaSat will equip 100 new Boeing 737 MAX aircraft with satellite-based services, with the aircraft expected to go into service in September next year. Both the parties kept the terms and the value of the contract under wraps.
The new planes will leverage ViaSat's advanced high capacity Ka-band satellite system, including ViaSat-1, ViaSat-2 and ViaSat-3 satellite platforms. The airline will capitalize on ViaSat's first two generation satellite platforms. According to ViaSat, its offering will enable users to do practically anything online, including video and music streaming.
Passengers these days consider high-speed Internet as a standard amenity for airlines. They expect to be able to stream video and music, and browse the web, without the glitches that are common to ground-based systems. This has heightened the rivalry among broadband providers.
ViaSat has, till date, installed its system on about 500 commercial airplanes. This figure includes most of the United Continental Holdings, Inc.'s UAL Boeing 737 fleet as well as the JetBlue Airways' aircraft.
In fact, ViaSat recently announced a multi-year agreement with leading aerospace company, Dassault Aviation. Per the deal, ViaSat will equip the first Falcon 8X with its Ku-band terminal to deliver advanced Internet and corporate network access to operators. In addition, in February, ViaSat secured a deal to deliver Wi-Fi services to the domestic fleet of Qantas Airways.
ViaSat is preparing to launch two new satellites to increase its coverage areas, with one slated for launch in less than seven months. The ViaSat-3 platform will help to form a global broadband network with sufficient network capacity to allow better consumer choices with an affordable, high quality, high-speed Internet and video streaming service.
Going forward, ViaSat expects robust growth as it capitalizes on its competitive advantage and strong demand for its highly cost-effective satellite bandwidth products. The company expects strong growth opportunities in satellite services and government systems segments, which should drive top-line growth in the coming quarters.
ViaSat currently carries a Zacks Rank #3 (Hold).
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VIASAT INC (VSAT): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
GOGO INC (GOGO): 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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ViaSat Inc. VSAT shares jumped close to 5% as the company secured a contract to provide internet access on 100 new American Airlines Group AAL planes. Click to get this free report VIASAT INC (VSAT): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report GOGO INC (GOGO): Free Stock Analysis Report To read this article on Zacks.com click here. Per the deal, ViaSat will equip the first Falcon 8X with its Ku-band terminal to deliver advanced Internet and corporate network access to operators.
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ViaSat Inc. VSAT shares jumped close to 5% as the company secured a contract to provide internet access on 100 new American Airlines Group AAL planes. Click to get this free report VIASAT INC (VSAT): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report GOGO INC (GOGO): Free Stock Analysis Report To read this article on Zacks.com click here. The new planes will leverage ViaSat's advanced high capacity Ka-band satellite system, including ViaSat-1, ViaSat-2 and ViaSat-3 satellite platforms.
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ViaSat Inc. VSAT shares jumped close to 5% as the company secured a contract to provide internet access on 100 new American Airlines Group AAL planes. Click to get this free report VIASAT INC (VSAT): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report GOGO INC (GOGO): Free Stock Analysis Report To read this article on Zacks.com click here. Under the contract, ViaSat will equip 100 new Boeing 737 MAX aircraft with satellite-based services, with the aircraft expected to go into service in September next year.
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ViaSat Inc. VSAT shares jumped close to 5% as the company secured a contract to provide internet access on 100 new American Airlines Group AAL planes. Click to get this free report VIASAT INC (VSAT): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report GOGO INC (GOGO): Free Stock Analysis Report To read this article on Zacks.com click here. Under the contract, ViaSat will equip 100 new Boeing 737 MAX aircraft with satellite-based services, with the aircraft expected to go into service in September next year.
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7962.0
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2016-06-06 00:00:00 UTC
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Can Gogo Bounce Back After Last Week's 17% Descent?
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AAL
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https://www.nasdaq.com/articles/can-gogo-bounce-back-after-last-weeks-17-descent-2016-06-06
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Image source: Gogo. http://gogoair.mediaroom.com/image-gallery?view=category&mode=gallery&cat=2747
There was a bit of turbulence for Gogo (NASDAQ: GOGO) investors last week. Shares of the leading provider of in-flight Wi-Fi surrendered 17% of their value after one of its biggest customers inked a deal with a rival provider of airborne connectivity.
American Airlines Group (NASDAQ: AAL) announced late last week that ViaSat (NASDAQ: VIAS) will be providing satellite-powered Internet access on 100 new Boeing 737 MAX planes that will be deployed into service in the fall of next year. American Airlines had turned exclusively to Gogo in the past to fuel its passenger connectivity solutions.
It's a pretty big deal, even if we're talking about roughly 10% of the American Airlines mainline fleet. It's a warning shot to Gogo the next time that the two parties sit down to negotiate terms for future deals. Gogo has always known that it's not the only player out there, but it may have figured that American Airlines wouldn't be mixing things up with rival providers. That makes it tricky when it's trying to sell full-day or even multi-day passes across several American Airlines flights.
The move also exposes the shortcomings of Gogo's original ground-based technology.
Up in the air
Gogo began offering in-flight Wi-Fi in 2008. It was a different time. The iPad had yet to be introduced. Smartphones weren't widely owned. Going online was more about checking email than streaming video or surfing the web.
Gogo's original platform delivers 10 megabits per second of bandwidth that have to be shared among everyone on the plane. It has become a problem as more people bring Wi-Fi-tethered devices, and it's a bigger issue because folks are paying extra to go online.
ViaSat's satellite-based solution offers 12 megabits per second to every passenger. This doesn't mean that Gogo has been disrupted. It has its own satellite-based platform, and American Airlines did ink a deal for Gogo's new 2Ku offering that is 20 times faster than its original air-to-ground solution. However, the battlefield is shifting. Competition between providers may be great for the airlines as well as its passengers, but it could lead to a bumpy flight for providers as negotiations intensify in the future.
Given Gogo's history of red ink -- it's come through with 17 consecutive profitless quarters -- and decelerating revenue growth, this is a hard time for Gogo to run into competitive pressures. There's money to be made as carriers inevitably upgrade to 2Ku, but the skies are getting crowded now.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines Group (NASDAQ: AAL) announced late last week that ViaSat (NASDAQ: VIAS) will be providing satellite-powered Internet access on 100 new Boeing 737 MAX planes that will be deployed into service in the fall of next year. It has become a problem as more people bring Wi-Fi-tethered devices, and it's a bigger issue because folks are paying extra to go online. It has its own satellite-based platform, and American Airlines did ink a deal for Gogo's new 2Ku offering that is 20 times faster than its original air-to-ground solution.
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American Airlines Group (NASDAQ: AAL) announced late last week that ViaSat (NASDAQ: VIAS) will be providing satellite-powered Internet access on 100 new Boeing 737 MAX planes that will be deployed into service in the fall of next year. http://gogoair.mediaroom.com/image-gallery?view=category&mode=gallery&cat=2747 There was a bit of turbulence for Gogo (NASDAQ: GOGO) investors last week. ViaSat's satellite-based solution offers 12 megabits per second to every passenger.
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American Airlines Group (NASDAQ: AAL) announced late last week that ViaSat (NASDAQ: VIAS) will be providing satellite-powered Internet access on 100 new Boeing 737 MAX planes that will be deployed into service in the fall of next year. Gogo has always known that it's not the only player out there, but it may have figured that American Airlines wouldn't be mixing things up with rival providers. It has its own satellite-based platform, and American Airlines did ink a deal for Gogo's new 2Ku offering that is 20 times faster than its original air-to-ground solution.
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American Airlines Group (NASDAQ: AAL) announced late last week that ViaSat (NASDAQ: VIAS) will be providing satellite-powered Internet access on 100 new Boeing 737 MAX planes that will be deployed into service in the fall of next year. http://gogoair.mediaroom.com/image-gallery?view=category&mode=gallery&cat=2747 There was a bit of turbulence for Gogo (NASDAQ: GOGO) investors last week. It has its own satellite-based platform, and American Airlines did ink a deal for Gogo's new 2Ku offering that is 20 times faster than its original air-to-ground solution.
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7963.0
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2016-06-06 00:00:00 UTC
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American Airlines Group (AAL) Stock Touches 52-Week Low
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-aal-stock-touches-52-week-low-2016-06-06
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Shares of Fort Worth, TX-based American Airlines GroupAAL tumbled to a 52-week low of $30.37during the course of the trading session on Jun 4. Shares of the carrier, however, recovered marginally to close the trading session at $30.81.
PRASM Woes Continue to Hurt
American Airlines, like many other carriers is suffering from woes related to passenger revenue per available seat mile (PRASM: a key measure of unit revenue). During the first quarter of 2016, the carrier reported a 7.5% decline in PRASM. The decline can mainly be attributed to adverse foreign exchange movements.
That PRASM woes will continue to hurt the carrier was evident from its second-quarter PRASM guidance. In fact, PRASM-related woes were primarily responsible for the top line shrinking 4% in the first quarter. The key metric is expected to decline in the range of 6% and 8% in the second quarter. Also, PRASM-related woes are primarily responsible for the stock shedding over 27% of its value so far this year.
It is a well-documented fact that cheap oil has benefitted airline stocks immensely with respect to bottom-line expansion and American Airlines is no exception. The carrier, which does not hedge fuel costs, expects to generate savings of approximately $1.6 billion due to weak fuel prices in 2016. However, lower fuel surcharges on international flights due to weak oil prices have been one of the main reasons for the persistent decline in PRASM. Consequently, plunging oil prices have become a double-edged sword for carriers.
We are also concerned about the weak traffic numbers posted by the company for the month of April. In April, traffic contracted 0.2% while capacity climbed 1.3%. Load factor (the percentage of seats filled with passengers) fell 120 basis points to 80.4% in April as traffic contracted while capacity expanded. Continuous decline in load factor can hurt the stock significantly.
Estimates on the Downswing
The downward earnings estimate revisions reflect pessimism over prospects of this Zacks Rank#3 (Hold) stock. Over the last 90 days, the 2016 Zacks Consensus Estimate for earnings has gone down $1.02 to $5.76 per share. Likewise, the Zacks Consensus Estimate for 2017 has plummeted 32 cents over the same time period to $6.15 per share. Earnings per share are expected to contract 12.8% on a long-term basis, further highlighting the gloomy scenario.
Stocks to Consider
Some better-ranked stocks in the airline space are SkyWest, Inc. SKYW , Air France-KLM SA AFLYY and GOL Linhas GOL . SkyWest and Air France sport a Zacks Rank#1 (Strong Buy) while GOL Linhas carries a Zacks Rank # 2 (Buy).
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 >>
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-ADR (GOL): Free Stock Analysis Report
SKYWEST INC (SKYW): Free Stock Analysis Report
AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Shares of Fort Worth, TX-based American Airlines GroupAAL tumbled to a 52-week low of $30.37during the course of the trading session on Jun 4. Click to get this free report GOL LINHAS-ADR (GOL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. However, lower fuel surcharges on international flights due to weak oil prices have been one of the main reasons for the persistent decline in PRASM.
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Click to get this free report GOL LINHAS-ADR (GOL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Fort Worth, TX-based American Airlines GroupAAL tumbled to a 52-week low of $30.37during the course of the trading session on Jun 4. PRASM Woes Continue to Hurt American Airlines, like many other carriers is suffering from woes related to passenger revenue per available seat mile (PRASM: a key measure of unit revenue).
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Click to get this free report GOL LINHAS-ADR (GOL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Shares of Fort Worth, TX-based American Airlines GroupAAL tumbled to a 52-week low of $30.37during the course of the trading session on Jun 4. PRASM Woes Continue to Hurt American Airlines, like many other carriers is suffering from woes related to passenger revenue per available seat mile (PRASM: a key measure of unit revenue).
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Shares of Fort Worth, TX-based American Airlines GroupAAL tumbled to a 52-week low of $30.37during the course of the trading session on Jun 4. Click to get this free report GOL LINHAS-ADR (GOL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. During the first quarter of 2016, the carrier reported a 7.5% decline in PRASM.
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7964.0
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2016-06-06 00:00:00 UTC
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Alaska Air Group (ALK) May Traffic Maintains Growth Trend
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https://www.nasdaq.com/articles/alaska-air-group-alk-may-traffic-maintains-growth-trend-2016-06-06
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Alaska Air Group, Inc.ALK posted a significant rise in air traffic for the month of May. Traffic - measured in revenue passenger miles (RPMs) - came in at 3.12 billion, up 11.6% from 2.8 billion recorded a year ago.
On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) rose 11.3% to 3.7 billion. Meanwhile, the load factor or percentage of seats filled by passengers increased to 84.7% from 84.5% recorded in May 2015 as traffic growth exceeded capacity expansion.
At the end of the first five months of 2016, Alaska Air Group generated RPMs of 14.7 billion (up 11.2% year over year) and ASMs of 17.8 billion (up 12.1% year over year). Load factor stood at 83% compared with 83.7% in the first five months of 2015.
We believe that increased demand for air travel coupled with continuous expansion of routes and enhanced customer satisfaction supported the impressive operating results. Also, passenger count in May and at the end of the five months period grew 7.7% and 7.4%, respectively.
According to an estimation made by Airlines for America ("A4A") - the trade organization for leading U.S. airlines - summer 2016 passenger volumes are expected to scale past the all-time high record set in 2015 by 4%. An estimated 231.1 million passengers are expected to fly scheduled U.S. airlines from Jun 1 to Aug 31, 2016 compared with 222.3 million passengers last year. This is a major positive for airlines like Alaska Air Group.
Alaska Air was included in the sought-after S&P 500 index on May 12, 2016. This is a commendable development for the company, which now joins the league of American Airlines Group AAL and United Continental Holdings UAL , which were included in the benchmark index last year. Alaska Air Group has been added to the S&P 500 GICS "Industrials" sector or Airlines Sub-Industry index.
Alaska Air Group currently carries a Zacks Rank #3 (Hold).
Stock to Consider
Investors interested in the airline space may consider SkyWest Inc. SKYW , which sports a Zacks Rank #1 (Strong Buy).
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 >>
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
SKYWEST INC (SKYW): Free Stock Analysis Report
ALASKA AIR GRP (ALK): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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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This is a commendable development for the company, which now joins the league of American Airlines Group AAL and United Continental Holdings UAL , which were included in the benchmark index last year. Click to get this free report SKYWEST INC (SKYW): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, the load factor or percentage of seats filled by passengers increased to 84.7% from 84.5% recorded in May 2015 as traffic growth exceeded capacity expansion.
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Click to get this free report SKYWEST INC (SKYW): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. This is a commendable development for the company, which now joins the league of American Airlines Group AAL and United Continental Holdings UAL , which were included in the benchmark index last year. At the end of the first five months of 2016, Alaska Air Group generated RPMs of 14.7 billion (up 11.2% year over year) and ASMs of 17.8 billion (up 12.1% year over year).
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Click to get this free report SKYWEST INC (SKYW): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. This is a commendable development for the company, which now joins the league of American Airlines Group AAL and United Continental Holdings UAL , which were included in the benchmark index last year. Alaska Air Group, Inc.ALK posted a significant rise in air traffic for the month of May.
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This is a commendable development for the company, which now joins the league of American Airlines Group AAL and United Continental Holdings UAL , which were included in the benchmark index last year. Click to get this free report SKYWEST INC (SKYW): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, the load factor or percentage of seats filled by passengers increased to 84.7% from 84.5% recorded in May 2015 as traffic growth exceeded capacity expansion.
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7965.0
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2016-06-06 00:00:00 UTC
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3 Stocks to Watch on Monday: Hercules Offshore, Inc. (HERO), Microsoft Corporation (MSFT) and Walt Disney Co (DIS)
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https://www.nasdaq.com/articles/3-stocks-to-watch-on-monday%3A-hercules-offshore-inc.-hero-microsoft-corporation-msft-and
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Friday was a difficult day for the stock market following data revealing that employers have added the least number of jobs in five years last month. The S&P 500 was down 0.3% Friday, while the Dow Jones Industrial Average dipped 0.2%.
Walt Disney Co (NYSE: DIS ) had good news from the box office over the weekend, Microsoft Corporation (NASDAQ: MSFT ) had a few announcements to share and Hercules Offshore, Inc. (NASDAQ: HERO ) has some extremely disappointing news for shareholders.
Here's what's happening with these companies as we enter the new trading week.
Hercules Offshore, Inc. (HERO)
One bankruptcy filing is bad enough, but two?
That's the fate of Hercules Offshore, Inc., which has just announced its second bankruptcy in as many years , sending already low-priced HERO stock into a 20% plunge in Monday's premarket trading .
10 Great Stocks That Will Make a Splash This Summer
The drilling contractor's first bankruptcy was filed last August, and six months ago, the company re-emerged. Now, after being unable to find a buyer for the business, it plans to sell off its assets and shut down the company, and it's offering between $12.5 million and $41 million to shareholders if they help the company get the plan approved.
Walt Disney Co (DIS)
DIS continues to enjoy good things from Zootopia, which is surpassing box office estimates by netting $1 billion around the globe.
The film is the second highest-earning Disney title since Frozen , which was released in 2013. Zootopia also is one of just two Disney flicks to make $1 billion in the box office, joining Captain America: Civil War .
The flip side, of course, is that Disney has had a few box office flops, too - including the Alice in Wonderland sequel. That, as well as weakness in its ESPN unit, has resulted in a 6% year-to-date drop for DIS shares amid an up year for the broader market.
Microsoft Corporation (MSFT)
Microsoft had plenty to share this weekend, including news on the virtual reality front.
The company is sharing its Windows Holographic Platform to developers , offering them the opportunity to use Microsoft's technology for augmented reality and VR hardware.
The tech giant also announced that Microsoft Band 2 will now come equipped with voice assistant Cortana .
Satya Nadella & Co. aren't pulling any punches in the smartphone industry as Microsoft and Xiaomi Corp. recently have partnered up to develop a $400 phone that they hope will cut into iPhone sales.
As of this writing, Karl Utermohlen did not hold a position in any of the aforementioned securities.
More From InvestorPlace
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The post 3 Stocks to Watch on Monday: Hercules Offshore, Inc. (HERO), Microsoft Corporation (MSFT) and Walt Disney Co (DIS) 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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That's the fate of Hercules Offshore, Inc., which has just announced its second bankruptcy in as many years , sending already low-priced HERO stock into a 20% plunge in Monday's premarket trading . 10 Great Stocks That Will Make a Splash This Summer The drilling contractor's first bankruptcy was filed last August, and six months ago, the company re-emerged. Satya Nadella & Co. aren't pulling any punches in the smartphone industry as Microsoft and Xiaomi Corp. recently have partnered up to develop a $400 phone that they hope will cut into iPhone sales.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips Friday was a difficult day for the stock market following data revealing that employers have added the least number of jobs in five years last month. Walt Disney Co (NYSE: DIS ) had good news from the box office over the weekend, Microsoft Corporation (NASDAQ: MSFT ) had a few announcements to share and Hercules Offshore, Inc. (NASDAQ: HERO ) has some extremely disappointing news for shareholders. More From InvestorPlace AMD's Killer Year Could Be Over 9 Cheap Stocks to Buy Now Under $10 The 5 Best Stocks to Buy for June The post 3 Stocks to Watch on Monday: Hercules Offshore, Inc. (HERO), Microsoft Corporation (MSFT) and Walt Disney Co (DIS) appeared first on InvestorPlace .
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips Friday was a difficult day for the stock market following data revealing that employers have added the least number of jobs in five years last month. Walt Disney Co (NYSE: DIS ) had good news from the box office over the weekend, Microsoft Corporation (NASDAQ: MSFT ) had a few announcements to share and Hercules Offshore, Inc. (NASDAQ: HERO ) has some extremely disappointing news for shareholders. More From InvestorPlace AMD's Killer Year Could Be Over 9 Cheap Stocks to Buy Now Under $10 The 5 Best Stocks to Buy for June The post 3 Stocks to Watch on Monday: Hercules Offshore, Inc. (HERO), Microsoft Corporation (MSFT) and Walt Disney Co (DIS) appeared first on InvestorPlace .
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips Friday was a difficult day for the stock market following data revealing that employers have added the least number of jobs in five years last month. Walt Disney Co (NYSE: DIS ) had good news from the box office over the weekend, Microsoft Corporation (NASDAQ: MSFT ) had a few announcements to share and Hercules Offshore, Inc. (NASDAQ: HERO ) has some extremely disappointing news for shareholders. More From InvestorPlace AMD's Killer Year Could Be Over 9 Cheap Stocks to Buy Now Under $10 The 5 Best Stocks to Buy for June The post 3 Stocks to Watch on Monday: Hercules Offshore, Inc. (HERO), Microsoft Corporation (MSFT) and Walt Disney Co (DIS) appeared first on InvestorPlace .
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7966.0
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2016-06-03 00:00:00 UTC
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Nasdaq 100 Movers: AAL, AVGO
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-aal-avgo-2016-06-03
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In early trading on Friday, shares of Broadcom ( AVGO ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.7%. Year to date, Broadcom registers a 11.7% gain.
And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.8%. American Airlines Group is lower by about 28.1% looking at the year to date performance.
Two other components making moves today are PACCAR ( PCAR ), trading down 3.0%, and Skyworks Solutions ( SWKS ), trading up 2.2% on the day.
VIDEO: Nasdaq 100 Movers: AAL, AVGO
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 3.8%. VIDEO: Nasdaq 100 Movers: AAL, AVGO The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group is lower by about 28.1% looking at the year to date performance.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.8%. VIDEO: Nasdaq 100 Movers: AAL, AVGO 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 3.8%. VIDEO: Nasdaq 100 Movers: AAL, AVGO The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. In early trading on Friday, shares of Broadcom ( AVGO ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 4.7%.
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And the worst performing Nasdaq 100 component thus far on the day is American Airlines Group ( AAL ), trading down 3.8%. VIDEO: Nasdaq 100 Movers: AAL, AVGO The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. American Airlines Group is lower by about 28.1% looking at the year to date performance.
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7967.0
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2016-06-03 00:00:00 UTC
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The Zacks Analyst Blog Highlights: United Continental Holdings, Delta Air Lines, Southwest Airlines, JetBlue Airways and American Airlines Group
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-united-continental-holdings-delta-air-lines-southwest-2
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For Immediate Release
Chicago, IL - June 03, 2016 - 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 United Continental Holdings Inc. ( UAL ), Delta Air Lines ( DAL ), Southwest Airlines Co. ( LUV ), JetBlue Airways Corp. ( JBLU ) and American Airlines Group ( AAL ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Thursday's Analyst Blog:
Good Times to Continue for Airlines? IATA Says So
Stocks in the airline space have hit a purple patch in spite of a few adverse factors. The decline in oil prices since mid-2014 has been a major boon for the stocks in this space. Meanwhile, the release of the profit forecast for 2016 by the International Air Transport Association (IATA) unveils a bright picture, again, thanks to cheap oil.
Soft oil prices have resulted in massive savings for carriers, courtesy a sharp reduction in their operating expenses as fuel costs represent a significant chunk of airline costs. Despite the recent rally, oil prices are still hovering around the $50 a barrel mark, a long way off the highs of mid-2014 when the commodity had traded in excess of $100 a barrel. Naturally, this has aided the bottom line of carriers significantly resulting in impressive performances with respect to earnings per share.
Profitability Forecast
At its Annual General Meeting in Dublin, the IATA increased its projection for 2016 global net profit for the industry to $39.4 billion from the earlier $36.3 billion. The comparable 2015 figure was $35.3 billion. In the event of the forecast coming true, 2016 would be the fifth successive year of profit improvement for the airline industry.
The bulk of the global profits ($22.9 billion) is expected to come from the North American region. The other regions, namely, Asia-Pacific, Europe, Latin America, Middle East and Africa are expected to generate post-tax net profit of $7.8 billion, $7.5 billion, $0.1 billion and $1.6 billion, respectively. African carriers are expected to continue their dismal performance in 2016, suffering losses to the tune of $0.5 billion.
Global net profit margin is expected to expand to 5.6% in 2016 from 4.9% a year ago. The top line is however projected to shrink 1.3% to $709 billion with passenger revenues dropping 1.3% to $511 billion and cargo revenues recorded a decline. Cargo demand is expected to grow only 2.1%, below the 2015 growth levels.
According to the forecast, 2016 is expected to see air travel growth of 6.2% compared with 7.4% growth witnessed last year. Capacity is projected to increase by 6.8% in 2016 as opposed to the 6.7% increase seen in 2015. According to the forecast, load factor (% of seats filled by passengers) for 2016 is expected to decline 40 basis points to 80% due to capacity expansion outweighing traffic growth. Yield is projected to decline 7% and unit costs are expected to reduce by 7.7%.
The research firm has also predicted that airline companies will earn $10.42 per passenger in 2016. The firm holds that oil prices will continue to fall in 2016 with the average price in the year hovering around $45 per barrel, down 16.5%. Fuel expenses are expected to decline considerably to $127 billion in 2016.
Although it is a fact that most carriers hedge at least some of their fuel costs, the majority of them should still continue to benefit considerably from the plunge in oil prices. Notably, carriers use a combination of calls, swaps and collars at varying WTI crude-equivalent price levels to hedge fuel costs.
IATA Forecast Follows Bullish A4A View
The rosy picture painted by the IATA for North American carriers, which include the likes of United Continental Holdings Inc. ( UAL ), Delta Air Lines ( DAL ), Southwest Airlines Co. ( LUV ), JetBlue Airways Corp. ( JBLU ) and American Airlines Group ( AAL ) comes close on the heels of 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 U.S. carriers in terms of air travel.
Headwinds Remain
Despite the benefits driven mainly by low oil prices, carriers are not bereft of headwinds. Issues like capacity woes, declining passenger revenue per available seat mile (PRASM), multiple probes and labor strife continue to hurt stocks in the space. These headwinds resulted in the NYSE ARCA Airline index losing 3.67% so far in 2016.
It is no secret that pricing and capacity worries have plagued airline stocks for quite some time. That capacity woes will continue to hurt carriers in 2016 was revealed by the IATA which expects capacity growth (6.8%) to outpace traffic expansion (6.2%). According to the report, capacity expansion has outpaced traffic growth for carriers in all regions except Latin America.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for 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 CONT HLD (UAL): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
AMER AIRLINES (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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Stocks recently featured in the blog include United Continental Holdings Inc. ( UAL ), Delta Air Lines ( DAL ), Southwest Airlines Co. ( LUV ), JetBlue Airways Corp. ( JBLU ) and American Airlines Group ( AAL ). IATA Forecast Follows Bullish A4A View The rosy picture painted by the IATA for North American carriers, which include the likes of United Continental Holdings Inc. ( UAL ), Delta Air Lines ( DAL ), Southwest Airlines Co. ( LUV ), JetBlue Airways Corp. ( JBLU ) and American Airlines Group ( AAL ) comes close on the heels of the forecast provided by Airlines for America ('A4A'). Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include United Continental Holdings Inc. ( UAL ), Delta Air Lines ( DAL ), Southwest Airlines Co. ( LUV ), JetBlue Airways Corp. ( JBLU ) and American Airlines Group ( AAL ). IATA Forecast Follows Bullish A4A View The rosy picture painted by the IATA for North American carriers, which include the likes of United Continental Holdings Inc. ( UAL ), Delta Air Lines ( DAL ), Southwest Airlines Co. ( LUV ), JetBlue Airways Corp. ( JBLU ) and American Airlines Group ( AAL ) comes close on the heels of the forecast provided by Airlines for America ('A4A'). Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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IATA Forecast Follows Bullish A4A View The rosy picture painted by the IATA for North American carriers, which include the likes of United Continental Holdings Inc. ( UAL ), Delta Air Lines ( DAL ), Southwest Airlines Co. ( LUV ), JetBlue Airways Corp. ( JBLU ) and American Airlines Group ( AAL ) comes close on the heels of the forecast provided by Airlines for America ('A4A'). Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include United Continental Holdings Inc. ( UAL ), Delta Air Lines ( DAL ), Southwest Airlines Co. ( LUV ), JetBlue Airways Corp. ( JBLU ) and American Airlines Group ( AAL ).
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Stocks recently featured in the blog include United Continental Holdings Inc. ( UAL ), Delta Air Lines ( DAL ), Southwest Airlines Co. ( LUV ), JetBlue Airways Corp. ( JBLU ) and American Airlines Group ( AAL ). IATA Forecast Follows Bullish A4A View The rosy picture painted by the IATA for North American carriers, which include the likes of United Continental Holdings Inc. ( UAL ), Delta Air Lines ( DAL ), Southwest Airlines Co. ( LUV ), JetBlue Airways Corp. ( JBLU ) and American Airlines Group ( AAL ) comes close on the heels of the forecast provided by Airlines for America ('A4A'). Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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7968.0
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2016-06-03 00:00:00 UTC
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ViaSat (VSAT) Rises, Gogo (GOGO) Falls on American Airlines (AAL) Wi-Fi Deal
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AAL
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https://www.nasdaq.com/articles/viasat-vsat-rises-gogo-gogo-falls-on-american-airlines-aal-wi-fi-deal-2016-06-03
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
ViaSat Inc (NASDAQ: VSAT ) had a good day as the company inked a contract with American Airlines Group Inc (NASDAQ: AAL ).
Rivals Gogo (NASDAQ: GOGO ) and its shares were hit hard on the news that ViaSat has been chosen as the in-flight provider of Wi-Fi for American Airlines.
The move will mark a step up in the world of in-flight Internet service as it is expected to be much faster and affordable compared to current in-flight Wi-Fi options.
Gogo was also affected by the Securities and Exchange Commission, which revealed in a filing that the company could lose a large chunk of its American Airlines business.
VSAT stock is up 4.5% Friday. GOGO stock is down 16.1% and AAL stock is down 2.7%.
More From InvestorPlace
30 Stocks the Smart Money Just Bought or Dumped
10 Great Stocks That Will Make a Splash This Summer
9 Cheap Stocks to Buy Now Under $10
The post ViaSat (VSAT) Rises, Gogo (GOGO) Falls on American Airlines (AAL) Wi-Fi Deal appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips ViaSat Inc (NASDAQ: VSAT ) had a good day as the company inked a contract with American Airlines Group Inc (NASDAQ: AAL ). More From InvestorPlace 30 Stocks the Smart Money Just Bought or Dumped 10 Great Stocks That Will Make a Splash This Summer 9 Cheap Stocks to Buy Now Under $10 The post ViaSat (VSAT) Rises, Gogo (GOGO) Falls on American Airlines (AAL) Wi-Fi Deal appeared first on InvestorPlace . GOGO stock is down 16.1% and AAL stock is down 2.7%.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips ViaSat Inc (NASDAQ: VSAT ) had a good day as the company inked a contract with American Airlines Group Inc (NASDAQ: AAL ). More From InvestorPlace 30 Stocks the Smart Money Just Bought or Dumped 10 Great Stocks That Will Make a Splash This Summer 9 Cheap Stocks to Buy Now Under $10 The post ViaSat (VSAT) Rises, Gogo (GOGO) Falls on American Airlines (AAL) Wi-Fi Deal appeared first on InvestorPlace . GOGO stock is down 16.1% and AAL stock is down 2.7%.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips ViaSat Inc (NASDAQ: VSAT ) had a good day as the company inked a contract with American Airlines Group Inc (NASDAQ: AAL ). More From InvestorPlace 30 Stocks the Smart Money Just Bought or Dumped 10 Great Stocks That Will Make a Splash This Summer 9 Cheap Stocks to Buy Now Under $10 The post ViaSat (VSAT) Rises, Gogo (GOGO) Falls on American Airlines (AAL) Wi-Fi Deal appeared first on InvestorPlace . GOGO stock is down 16.1% and AAL stock is down 2.7%.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips ViaSat Inc (NASDAQ: VSAT ) had a good day as the company inked a contract with American Airlines Group Inc (NASDAQ: AAL ). GOGO stock is down 16.1% and AAL stock is down 2.7%. More From InvestorPlace 30 Stocks the Smart Money Just Bought or Dumped 10 Great Stocks That Will Make a Splash This Summer 9 Cheap Stocks to Buy Now Under $10 The post ViaSat (VSAT) Rises, Gogo (GOGO) Falls on American Airlines (AAL) Wi-Fi Deal appeared first on InvestorPlace .
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7969.0
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2016-06-03 00:00:00 UTC
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Technology Sector Update for 06/03/2016: GOGO, AAL, VSAT, CRDS, MCZ
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AAL
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https://www.nasdaq.com/articles/technology-sector-update-06032016-gogo-aal-vsat-crds-mcz-2016-06-03
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Top Tech Stocks
MSFT -1.18%
AAPL +0.33%
IBM -0.38%
CSCO +0.24%
GOOG -1.06%
Technology stocks were finishing with small declines, with shares of tech companies in the S&P 500 dropping 0.1% this afternoon.
In company news, investors were pulling the plug on Gogo Inc ( GOGO ) Friday after a rival of the inflight Internet connection firm landed a big contract with American Airlines ( AAL ).
ViaSat ( VSAT ) said it was selected to provide inflight Wi-Fi service on American's new 737 Max fleet. Its shares were up almost 4% in late afternoon trading at $72.61 each.
Gogo also was pressured after saying in a regulatory filing it could lose a large slice of its business if American chooses to exercise options in its existing contract with the company allowing for a "deinstallation" from Gogo at any time.
"While we cannot predict with any certainty when and with respect to which aircraft American will exercise such option, we currently expect that the option will be exercised by American with respect to a significant portion, or potentially all, of such approximately 550 aircraft from time to time over the next several years," the company said in the Securities and Exchange Commission filing.
GOGO shares were down nearly 16% at $9.31 apiece, staying within close range of its session low of $9.35 a share. AAL shares also were down almost 3% at $30.78 each, earlier hitting a 29-month low of $30.37 a share.
In other sector news,
(+) CRDS, Trims Q2 net loss to $0.00 per share from $0.19 per share loss last year, beating single-analyst estimate expecting a $0.12 per share loss. Revenue climbs 10.5% to $210,000, trailing the $1.9 mln lone-analyst call.
(-) RITT, CEO Yossi Ben resigns but is expected to continue in the post during notice period beginning June 10.
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, investors were pulling the plug on Gogo Inc ( GOGO ) Friday after a rival of the inflight Internet connection firm landed a big contract with American Airlines ( AAL ). AAL shares also were down almost 3% at $30.78 each, earlier hitting a 29-month low of $30.37 a share. Technology stocks were finishing with small declines, with shares of tech companies in the S&P 500 dropping 0.1% this afternoon.
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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, investors were pulling the plug on Gogo Inc ( GOGO ) Friday after a rival of the inflight Internet connection firm landed a big contract with American Airlines ( AAL ). AAL shares also were down almost 3% at $30.78 each, earlier hitting a 29-month low of $30.37 a share.
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In company news, investors were pulling the plug on Gogo Inc ( GOGO ) Friday after a rival of the inflight Internet connection firm landed a big contract with American Airlines ( AAL ). AAL shares also were down almost 3% at $30.78 each, earlier hitting a 29-month low of $30.37 a share. Gogo also was pressured after saying in a regulatory filing it could lose a large slice of its business if American chooses to exercise options in its existing contract with the company allowing for a "deinstallation" from Gogo at any time.
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In company news, investors were pulling the plug on Gogo Inc ( GOGO ) Friday after a rival of the inflight Internet connection firm landed a big contract with American Airlines ( AAL ). AAL shares also were down almost 3% at $30.78 each, earlier hitting a 29-month low of $30.37 a share. Technology stocks were finishing with small declines, with shares of tech companies in the S&P 500 dropping 0.1% this afternoon.
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7970.0
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2016-06-03 00:00:00 UTC
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Consumer Sector Update for 06/03/2016: AVH,UAL,AAL,JVA,ZUMZ
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AAL
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https://www.nasdaq.com/articles/consumer-sector-update-06032016-avhualaaljvazumz-2016-06-03
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Top Consumer Stocks
WMT +0.01%
MCD +0.27%
DIS +0.16%
CVS -0.17%
KO +0.56%
Consumer stocks traded higher, with shares of consumer staples companies in the S&P 500 rising nearly 0.6% while shares of consumer discretionary firms in the S&P 500 were advancing around 0.3%.
In company news, Avianca ( AVH ) shares soared Friday following reports American Airlines and United Continental ( UAL ) were considering bids for the Panama-based airline company.
Avianca has been exploring strategic options that include selling all or a significant stake in the company, people familiar with the matter told Bloomberg.
The Wall Street Journal earlier reported Avianca was working with a financial advisor and had sent letters to potential bidders seeking to raise around $500 million, the newspaper said, citing sources it did not identify.
The company operates a fleet of about 180 planes flying to 105 destinations in 28 countries. Avianca said last month it was cutting deliveries from Airbus by $1.4 billion over the next 30 months as part of efforts to reduce debt.
AVH shares were up nearly 24% Friday afternoon at $6.42 each, topping out Friday at $6.78 a share.
In other sector news,
(+) JVA, Reverses $0.33 per share net loss last year after posting Q2 EPS of $0.14 per share. Net shares decline 29% year over year to $21.4 mln. No analyst estimates were available for comparison.
(-) ZUMZ, Q1 net loss of $0.08 per share beats analyst consensus by $0.03 per share. Net sales fall 2.6% to $173 mln, topping $172.4 mln Street view. Guides Q2 results below expectations, including 6% to 8% drop in same-store sales.
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, Avianca ( AVH ) shares soared Friday following reports American Airlines and United Continental ( UAL ) were considering bids for the Panama-based airline company. Avianca has been exploring strategic options that include selling all or a significant stake in the company, people familiar with the matter told Bloomberg. The Wall Street Journal earlier reported Avianca was working with a financial advisor and had sent letters to potential bidders seeking to raise around $500 million, the newspaper said, citing sources it did not identify.
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In company news, Avianca ( AVH ) shares soared Friday following reports American Airlines and United Continental ( UAL ) were considering bids for the Panama-based airline company. Net sales fall 2.6% to $173 mln, topping $172.4 mln Street view. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Consumer stocks traded higher, with shares of consumer staples companies in the S&P 500 rising nearly 0.6% while shares of consumer discretionary firms in the S&P 500 were advancing around 0.3%. In company news, Avianca ( AVH ) shares soared Friday following reports American Airlines and United Continental ( UAL ) were considering bids for the Panama-based airline company. AVH shares were up nearly 24% Friday afternoon at $6.42 each, topping out Friday at $6.78 a share.
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AVH shares were up nearly 24% Friday afternoon at $6.42 each, topping out Friday at $6.78 a share. (-) ZUMZ, Q1 net loss of $0.08 per share beats analyst consensus by $0.03 per share. Net sales fall 2.6% to $173 mln, topping $172.4 mln Street view.
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7971.0
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2016-05-30 00:00:00 UTC
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Can Airlines Combat Rising Fuel Costs?
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AAL
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https://www.nasdaq.com/articles/can-airlines-combat-rising-fuel-costs-2016-05-30
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nan
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nan
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Despite lingering oversupply worries and a vacillating dollar, U.S. crude prices continue to hover around the $50 mark. Recent production disruptions in Libya, Canada and Nigeria helped crude prices to cross $50 per barrel for the first time in seven months on Thursday. However, they closed lower and continue to remain below this psychological level.
But the airline industry is facing trouble on this count. Several large carriers are planning to take steps in the immediate future to combat an assault on their top lines. Despite satisfactory performances during the quarter, investors are clamoring for more, which may translate into higher airfares.
PRASMs Under Pressure
The biggest headwind airlines are facing at this point is a key revenue metric - passenger revenue per available seat mile or PRASM. This is a measure of sales relative to the capacity of a carrier.
For instance, last month United Continental Holdings Inc. UAL reported first-quarter 2016 earnings (on an adjusted basis) of $1.23 per share, which beat the Zacks Consensus Estimate by 6 cents. Consolidated PRASM or unit revenue declined 7.4% year over year.
This was a direct outcome of falling fares, which in turn are a result of lower fuel costs. Over the last two years, carriers have saved billions of dollars due to falling fuel costs. But this phenomenon has also proved to be detrimental since it resulted in airlines adding more and more seats to accommodate higher demand from passengers.
Fare Hikes Likely
By last year, airfares had fallen to a record low. An average round trip around the U.S had reached a five-year low. Airfares are continuing to fall this year with even trips to European destinations becoming more and more affordable. And this is giving airlines enough cause for worry.
It is now clear that airlines have been adding seats at a faster rate than the demand at which it was growing. Now, major carriers are preparing to raise fares. However, such changes are unlikely to happen in the near future. Fares are likely to remain low during a period when travel peaks.
Delta Air Lines, Inc. DAL has recently announced that it plans to cut growth at a faster rate this year. Delta expects passenger carrying capacity to increase by 2.5% as the fourth quarter approaches, compared to the end of last year. This is significantly lower than the 5.4% growth logged in the first quarter. United Continental has reduced planned growth for the current year by 0.5 percentage point. Meanwhile, American Airlines Group Inc. AAL has decided to cut planned international growth for 2016 from 6% to 2.5%. Similar announcements may be forthcoming from JetBlue Airways Corporation JBLU and Southwest Airlines Co. LUV .
In Conclusion
Air travelers have enjoyed a long period of low fares thanks to falling fuel prices. This situation is unlikely to change drastically in the near future. However, by the end of the year, they may have to pay higher prices in order to fly. In the interim period, they are likely to face the snaking queues at airports as they prepare to fly out for their vacations.
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 >>
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SOUTHWEST AIR (LUV): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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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Meanwhile, American Airlines Group Inc. AAL has decided to cut planned international growth for 2016 from 6% to 2.5%. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Recent production disruptions in Libya, Canada and Nigeria helped crude prices to cross $50 per barrel for the first time in seven months on Thursday.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, American Airlines Group Inc. AAL has decided to cut planned international growth for 2016 from 6% to 2.5%. Delta Air Lines, Inc. DAL has recently announced that it plans to cut growth at a faster rate this year.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, American Airlines Group Inc. AAL has decided to cut planned international growth for 2016 from 6% to 2.5%. Delta Air Lines, Inc. DAL has recently announced that it plans to cut growth at a faster rate this year.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, American Airlines Group Inc. AAL has decided to cut planned international growth for 2016 from 6% to 2.5%. Fares are likely to remain low during a period when travel peaks.
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7972.0
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2016-05-30 00:00:00 UTC
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Delta Air Lines Forays into New Skies, Adds Flight to Scotland
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-forays-into-new-skies-adds-flight-to-scotland-2016-05-30
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In tune with its plans to expand operations, Atlanta, GA-based Delta Air LinesDAL launched non-stop flights between New York and Edinburgh. The first flight (DL 409) of the year-round service from the John F Kennedy airport landed at Edinburgh on May 27.
In a bid to improve the flying experience for passengers, Delta is initially operating additional flights on The Boeing Company's BA 163-seat 757-200ER jets, which are equipped with modern facilities as well as Wi-Fi. However, with a busy summer season ahead, Boeing's wide-bodied 210-seat 767-300ER will also operate on the route from Jun 8 to early September. This summer is going to be exceptionally busy as highlighted by the Airlines for America ("A4A"). The trade association has predicted that the June-August period will be the busiest of all times for American carriers with approximately 231.1 million passengers flying by various U.S. carriers.
Delta's move to add Scotland to its network is a prudent one as the U.S. is the top inbound tourism market to the country. Meanwhile, Delta's move to launch flights between New York and Edinburgh will intensify competition in this transatlantic route as American Airlines Group AAL and United Continental Holdings UAL already connect the cities. This is likely to result in downward revision of fares. We expect investors to keenly wait for updates on Delta's latest expansion initiative.
Zacks Rank & A Key Pick
Delta Air Lines currently carries a Zacks Rank #3 (Hold). Investors interested in the airline space may consider SkyWest, Inc. SKYW which sports a Zacks Rank #1 (Strong Buy).
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 >>
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 (DAL): Free Stock Analysis Report
SKYWEST INC (SKYW): Free Stock Analysis Report
BOEING CO (BA): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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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Meanwhile, Delta's move to launch flights between New York and Edinburgh will intensify competition in this transatlantic route as American Airlines Group AAL and United Continental Holdings UAL already connect the cities. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. In tune with its plans to expand operations, Atlanta, GA-based Delta Air LinesDAL launched non-stop flights between New York and Edinburgh.
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Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Meanwhile, Delta's move to launch flights between New York and Edinburgh will intensify competition in this transatlantic route as American Airlines Group AAL and United Continental Holdings UAL already connect the cities. Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >> Want the latest recommendations from Zacks Investment Research?
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Meanwhile, Delta's move to launch flights between New York and Edinburgh will intensify competition in this transatlantic route as American Airlines Group AAL and United Continental Holdings UAL already connect the cities. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (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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Meanwhile, Delta's move to launch flights between New York and Edinburgh will intensify competition in this transatlantic route as American Airlines Group AAL and United Continental Holdings UAL already connect the cities. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SKYWEST INC (SKYW): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Want the latest recommendations from Zacks Investment Research?
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7973.0
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2016-05-26 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Southwest Airlines, Alaska Air Group, Ryanair Holdings, Delta Air Lines and American Airlines Group
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-southwest-airlines-alaska-air-group-ryanair-holdings
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For Immediate Release
Chicago, IL - May 26, 2016 - 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 Southwest Airlines ( LUV ), Alaska Air Group ( ALK ), Ryanair Holdings plc ( RYAAY ), Delta Air Lines ( DAL ) and American Airlines Group ( AAL ) .
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
The past week saw the Dallas-based carrier Southwest Airlines ( LUV ) announce two shareholder friendly moves - a dividend hike and a new share repurchase program. However, the recent crash of the EgyptAir jet into the Mediterranean Sea, claiming 66 lives, has been dominating headlines.
Furthermore, the employment data released by Bureau of Transportation Statistics for passenger airlines showed a substantial year-over-year increase in full-time equivalent (FTE) employment for March. Moreover, expansion related news from Alaska Air Group ( ALK ) grabbed headlines in the past week.
On the earnings front, European low-cost carrier Ryanair Holdings plc ( RYAAY ) reported healthy results in fiscal 2016 (ended Mar 31, 2016), on the back of increased revenues and low costs.
(Read the last Airline Stock Roundup for May 18, 2016 ).
Recap of the Past Week's Most Important Stories
1. Close on the heels of Delta Air Lines' ( DAL ) decision to hike its quarterly dividend payout, Southwest Airlines announced a dividend raise along with a new share repurchase program worth $2 billion. The low-cost carrier raised its cash quarterly dividend to $0.10 per share ($0.40 per share annualized), representing an increase of 33.33% over the previous quarterly payout (read more: Southwest Airlines Up on Dividend Hike & New Buyback Plan ).
2. Investigations are underway to determine the cause of the crash of the EgyptAir jet which was travelling from Paris to Cairo. According to a Bloomberg report, Egypt's aviation minister Sherif Fathy had cited terrorism as a probable cause behind the tragedy. Although it has not yet been proved conclusively that the flight was a victim to a terror act, we believe that in the event of it being proved so, travel to Europe will take a hit (read more: US Carriers Sell Off in Wake of EgyptAir Tragedy ).
3. Alaska Airlines, the wholly owned subsidiary of Alaska Air Group, announced the addition of a three-times-a-day nonstop service connecting San Diego to Sacramento and Burbank to San Jose. The new service is set to commence on Mar 16, 2017 (read more: Alaska Airlines Eyes Route Expansion, California in Focus ).
4. According to data released by the Bureau of Transportation Statistics, there was a 3.9% increase in the number of workers employed by U.S. scheduled passenger airlines for March. This marked the 28th consecutive month of year-over-year increase. FTEs for Mar 2016 came in at 406,113. According to the update, the most number of FTEs in the month were employed by the American Airlines Group ( AAL ) among the network airlines. Southwest Airlines secured the top spot in this regard in the low-cost carrier category.
5. Ryanair Holdings reported robust financial and operating numbers with net profit for fiscal 2016 up 43% year over year at €1,242 million. Moreover, load factor increased 500 basis points to 93%. The top line expanded 16% to €6,536 million on the back of an 18% rise in passenger count to 106.4 million. The customer friendly "Always Getting Better (AGB)" program drew massive number of new customers to Ryanair.
However, the carrier issued a "cautious" outlook for fiscal 2017 in the wake of the recent terror attacks. The carrier expects airfares to face pressure due to concerns which could hurt travel demand in Europe. That the carrier's fears are not baseless is reflected by the update coming from travel company, Thomas Cook. The agency has revealed a 5% decline in summer bookings compared to last year. With average fares expected to decline approximately 7%, net profit for fiscal 2017 is expected to increase only 13%. The company plans to fly 116 million passengers in fiscal 2017, reflecting an increase of 9%.
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Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today .
About Zacks
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! Register for your free subscription to Profit from the Pros .
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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.
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SOUTHWEST AIR (LUV): Free Stock Analysis Report
ALASKA AIR GRP (ALK): Free Stock Analysis Report
RYANAIR HLDGS (RYAAY): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
AMER AIRLINES (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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Stocks recently featured in the blog include Southwest Airlines ( LUV ), Alaska Air Group ( ALK ), Ryanair Holdings plc ( RYAAY ), Delta Air Lines ( DAL ) and American Airlines Group ( AAL ) . According to the update, the most number of FTEs in the month were employed by the American Airlines Group ( AAL ) among the network airlines. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include Southwest Airlines ( LUV ), Alaska Air Group ( ALK ), Ryanair Holdings plc ( RYAAY ), Delta Air Lines ( DAL ) and American Airlines Group ( AAL ) . Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. According to the update, the most number of FTEs in the month were employed by the American Airlines Group ( AAL ) among the network airlines.
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Stocks recently featured in the blog include Southwest Airlines ( LUV ), Alaska Air Group ( ALK ), Ryanair Holdings plc ( RYAAY ), Delta Air Lines ( DAL ) and American Airlines Group ( AAL ) . Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. According to the update, the most number of FTEs in the month were employed by the American Airlines Group ( AAL ) among the network airlines.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report RYANAIR HLDGS (RYAAY): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Southwest Airlines ( LUV ), Alaska Air Group ( ALK ), Ryanair Holdings plc ( RYAAY ), Delta Air Lines ( DAL ) and American Airlines Group ( AAL ) . According to the update, the most number of FTEs in the month were employed by the American Airlines Group ( AAL ) among the network airlines.
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7974.0
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2016-05-23 00:00:00 UTC
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The Zacks Analyst Blog Highlights: United Continental Holdings, Southwest Airlines, American Airlines Group, Airbus Group and Air France-KLM
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-united-continental-holdings-southwest-airlines-american
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For Immediate Release
Chicago, IL - May 23, 2016 - 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 United Continental Holdings ( UAL ), Southwest Airlines ( LUV ), American Airlines Group ( AAL ) ,Airbus Group SE ( EADSY ) and Air France-KLM SA ( AFLYY ) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Friday's Analyst Blog:
U.S. Carriers Sell Off in Wake of EgyptAir Tragedy
Shares of major airlines stocks like United Continental Holdings ( UAL ), Southwest Airlines ( LUV ) and American Airlines Group ( AAL ) lost ground following the disappearance of an EgyptAir jet. With airline stocks plummeting on the news, the NYSE ARCA Airline index declined 1.48% to $83.62 on May 19.
According to various media reports, EgyptAir (MS804), which was flying from Paris to Cairo, dropped off the radar over the Mediterranean sea. Apparently, 56 passengers and 10 crew members were on board the Airbus Group SE's ( EADSY ) A320. According to latest media report, debris from the plane were found in the Mediterranean Sea.
Will Travel Demand Drop?
According to a Bloomberg report, Egypt's aviation minister Sherif Fathy cited terrorism as a probable cause behind the incident. If the speculations come true, this would mark the second major terror act in the aviation space. We remind investors that in March this year, terror attacks at the Brussels airport and the Maelbeek metro station in central Brussels claimed over 25 lives and injured more than 200 people.
The disappearance of the EgyptAir jet liner and the subsequent fear of another terror attack hit tourism stocks with the effect spreading to the U.S.-based airline stocks which lost value on apprehensions of a fall in travel demand in Europe. We note that major airline stocks have a strong presence in the European market. For instance, Delta Air Lines had stated during its first-quarter conference call that the trans-Atlantic market is responsible for 15% to 20% of its revenues. No wonder, the fear of a fall in air travel demand has hit U.S. airline stocks hard.
Terror Attacks: A Major Concern
Even though airline stocks are benefiting immensely from the oil price slump, acts of terrorism continue to hurt stocks in the space. In fact, such attacks are becoming alarmingly more frequent. The March Brussels attacks impacted Delta's top line in the first quarter of 2016 while the attacks in Paris last year had impacted Air France-KLM SA ( AFLYY ).
Apart from terror attacks, challenges like outbreaks of diseases like the Zika virus and disputes similar to the ongoing one between legacy U.S. carriers and their Gulf counterparts are a major threat to aviation stocks.
Although it has not yet been proved conclusively that the flight from Paris to Cairo was a victim to another terror act, we believe that in the event of it being proved so, travel to Europe will take a hit. In case of a drop in demand during the peak summer season, U.S. airline stocks would suffer as trans-Atlantic flights generate a significant portion of their revenues.
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About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today .
About Zacks
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! Register for your free subscription to Profit from the Pros .
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 CONT HLD (UAL): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
AIRBUS GROUP NV (EADSY): Free Stock Analysis Report
AIR FRANCE-ADR (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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Stocks recently featured in the blog include United Continental Holdings ( UAL ), Southwest Airlines ( LUV ), American Airlines Group ( AAL ) ,Airbus Group SE ( EADSY ) and Air France-KLM SA ( AFLYY ) . Here are highlights from Friday's Analyst Blog: U.S. Carriers Sell Off in Wake of EgyptAir Tragedy Shares of major airlines stocks like United Continental Holdings ( UAL ), Southwest Airlines ( LUV ) and American Airlines Group ( AAL ) lost ground following the disappearance of an EgyptAir jet. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report AIRBUS GROUP NV (EADSY): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here.
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Stocks recently featured in the blog include United Continental Holdings ( UAL ), Southwest Airlines ( LUV ), American Airlines Group ( AAL ) ,Airbus Group SE ( EADSY ) and Air France-KLM SA ( AFLYY ) . Here are highlights from Friday's Analyst Blog: U.S. Carriers Sell Off in Wake of EgyptAir Tragedy Shares of major airlines stocks like United Continental Holdings ( UAL ), Southwest Airlines ( LUV ) and American Airlines Group ( AAL ) lost ground following the disappearance of an EgyptAir jet. Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report AIRBUS GROUP NV (EADSY): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here.
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Click to get this free report UNITED CONT HLD (UAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report AIRBUS GROUP NV (EADSY): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include United Continental Holdings ( UAL ), Southwest Airlines ( LUV ), American Airlines Group ( AAL ) ,Airbus Group SE ( EADSY ) and Air France-KLM SA ( AFLYY ) . Here are highlights from Friday's Analyst Blog: U.S. Carriers Sell Off in Wake of EgyptAir Tragedy Shares of major airlines stocks like United Continental Holdings ( UAL ), Southwest Airlines ( LUV ) and American Airlines Group ( AAL ) lost ground following the disappearance of an EgyptAir jet.
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Want the latest recommendations from Zacks Investment Research? Stocks recently featured in the blog include United Continental Holdings ( UAL ), Southwest Airlines ( LUV ), American Airlines Group ( AAL ) ,Airbus Group SE ( EADSY ) and Air France-KLM SA ( AFLYY ) . Here are highlights from Friday's Analyst Blog: U.S. Carriers Sell Off in Wake of EgyptAir Tragedy Shares of major airlines stocks like United Continental Holdings ( UAL ), Southwest Airlines ( LUV ) and American Airlines Group ( AAL ) lost ground following the disappearance of an EgyptAir jet.
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7975.0
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2016-05-21 00:00:00 UTC
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Airlines Are Getting Serious About Unit Revenue Growth
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AAL
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https://www.nasdaq.com/articles/airlines-are-getting-serious-about-unit-revenue-growth-2016-05-21
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American Airlines (NASDAQ: AAL) , United Continental (NYSE: UAL) , and Delta Air Lines (NYSE: DAL) have been posting disappointing unit revenue results for more than a year now. American and United have seen the biggest declines , but unit revenue has also fallen steadily at Delta.
Executives at all three airlines have predicted more than once that a revenue recovery was right around the corner. However, falling jet fuel prices and rising competition from ultra-low-cost carriers (ULCCs) have kept fares on a downward trajectory. Industry unit revenue is declining just as quickly today as it was a year ago.
Unit revenue trends haven't improved yet at most U.S. airlines. Image source: American Airlines.
However, fuel prices are starting to bounce back. As a result, some airlines' profit margins are starting to come under pressure. This has finally forced American, United, and Delta to get serious about putting unit revenue back on a sustainable positive trajectory.
Fixing irrational pricing
Some of the recent revenue weakness at U.S. airlines can be blamed on a change in the legacy carriers' philosophy about competing with ULCCs. Two or three years ago, the legacy carriers mainly ignored ULCCs, figuring that it wasn't worth competing for the most price-sensitive customers.
In the past year or so, they have executed a 180-degree turn and now typically match ULCC fares. Not surprisingly, that has created pricing pressure.
To serve this market profitably, Delta, American, and United are all in the midst of rolling out no-frills "basic economy" fares. By better differentiating between customers who are willing to pay for quality and those who just want the cheapest price, legacy carriers should be able to mitigate the negative impact of matching ULCC fares.
Capacity discipline is the key
Still, pricing strategy hasn't been the main cause of legacy carriers' weak unit revenue. Capacity growth that outpaced demand deserves most of the blame.
When oil prices were plunging, it was profitable for airlines to add capacity at the margins, even if it led to unit revenue declines. However, it now looks like most airlines will face year-over-year increases in their fuel bills within the next two or three quarters. That makes it imperative to keep capacity in line with demand.
All of the major airlines recognize this and are acting accordingly. United Airlines -- which has kept the tightest lid on capacity in recent years -- reduced its 2016 capacity growth plans by 0.5 percentage points last month. It is cutting back in weaker markets like Houston, Brazil, and the Middle East. Most of its growth is concentrated in San Francisco, where it is adding a slew of long-haul routes that won't face any direct competition.
United is focusing its growth on routes where it won't face competition. Image source: The Motley Fool.
Delta Air Lines is also ratcheting back on capacity growth. In Q4, domestic capacity will rise just 2.5% year over year, compared to 4%-plus growth in the first three quarters of 2016. Meanwhile, international capacity will remain flat-to-down year over year throughout 2016, with capacity down across all regions during Q4.
American Airlines is also slashing its growth. Last month, the carrier announced that it will increase international capacity just 2.5% year over year in 2016, compared to its original plan for 6% growth. American should also benefit from rivals' cutbacks in Brazil, a market that has been a big source of unit revenue pressure for the past year and a half.
United, Delta, and American have also made recent fleet plan changes that should limit capacity growth over the next few years.
Delta is deferring some aircraft deliveries. Image source: The Motley Fool.
In March, United decided to retire its 747 fleet by the end of 2018, a few years ahead of schedule. Just in the past week or so, Delta has deferred the deliveries of four A350s from 2018 to 2019 and 2020, while American Airlines has accelerated retirements for several different aircraft types. All of these moves foreshadow a slowdown in U.S. airlines' international growth.
Results coming soon
Airlines' near-term capacity cuts and longer-term fleet plan changes won't get unit revenue growing immediately. Nevertheless, investors are likely to see measurable progress this summer, as unit revenue declines start to moderate, with further sequential improvements coming in the fall.
Now that airlines are getting serious about reining in capacity growth to match demand, the industry should be able to return to unit revenue growth within the next 12 months. That will make investors a lot more comfortable about airlines' long-term profit potential.
There's something big happening this Friday
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Click here to be among the first people to hear about David and Tom's newest stock recommendations.
*"Look Who's on Top Now" appeared in The Wall Street Journal in Aug. 2013, which references Hulbert's rankings of the best performing stock picking newsletters over a 5-year period from 2008-2013.
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 (NASDAQ: AAL) , United Continental (NYSE: UAL) , and Delta Air Lines (NYSE: DAL) have been posting disappointing unit revenue results for more than a year now. Fixing irrational pricing Some of the recent revenue weakness at U.S. airlines can be blamed on a change in the legacy carriers' philosophy about competing with ULCCs. American should also benefit from rivals' cutbacks in Brazil, a market that has been a big source of unit revenue pressure for the past year and a half.
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American Airlines (NASDAQ: AAL) , United Continental (NYSE: UAL) , and Delta Air Lines (NYSE: DAL) have been posting disappointing unit revenue results for more than a year now. Capacity discipline is the key Still, pricing strategy hasn't been the main cause of legacy carriers' weak unit revenue. Results coming soon Airlines' near-term capacity cuts and longer-term fleet plan changes won't get unit revenue growing immediately.
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American Airlines (NASDAQ: AAL) , United Continental (NYSE: UAL) , and Delta Air Lines (NYSE: DAL) have been posting disappointing unit revenue results for more than a year now. United Airlines -- which has kept the tightest lid on capacity in recent years -- reduced its 2016 capacity growth plans by 0.5 percentage points last month. Now that airlines are getting serious about reining in capacity growth to match demand, the industry should be able to return to unit revenue growth within the next 12 months.
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American Airlines (NASDAQ: AAL) , United Continental (NYSE: UAL) , and Delta Air Lines (NYSE: DAL) have been posting disappointing unit revenue results for more than a year now. American should also benefit from rivals' cutbacks in Brazil, a market that has been a big source of unit revenue pressure for the past year and a half. United, Delta, and American have also made recent fleet plan changes that should limit capacity growth over the next few years.
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7976.0
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2016-05-18 00:00:00 UTC
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Southwest Airlines (LUV): Can Traffic Growth Counter Risks?
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-luv%3A-can-traffic-growth-counter-risks-2016-05-18
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On May 16, 2016, we issued an updated research report on Southwest Airlines Co.LUV , a low-fare, low-cost passenger carrier operating primarily on point-to-point routes.
The company reported better-than-expected earnings and revenues in the first quarter of 2016. Results were aided by low fuel costs. Moreover, healthy increases in passenger and other revenues were witnessed during the quarter. Furthermore, there was an increase in load factor during the quarter as traffic growth outpaced capacity expansion. We are also impressed by Southwest Airlines' constant efforts to expand its business.
Apart from these, the company's efforts to return value to stockholders through share buybacks and dividend payments are encouraging. Its board of directors has cleared a fresh $1.5 billion buyback program recently.
However, the airline industry is both capital and labor intensive. Also, most employees at Southwest Airlines are unionized, depending on various U.S. labor organizations. Failure to amend terms and conditions suitably with these unions may lead to work stoppages or strikes and hamper operations. Furthermore, the charged levied by the U.S. Transportation Department against five major American carriers including Southwest Airlines and its rivals, Delta Air Lines Inc. DAL , United Continental Holdings Inc. UAL and American Airlines Group Inc. AAL is a major concern.
On the other hand, the spread of mosquito-borne Zika virus earlier this year to multiple countries set off alarm bells, causing many carriers to offer rescheduling/refunds. The outbreak was a major setback for Southwest Airlines' expansion plans. Similar setbacks in the future may weigh heavily on the stock.
Southwest Airlines currently has a Zacks Rank #3 (Hold).
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 >>
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 AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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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Furthermore, the charged levied by the U.S. Transportation Department against five major American carriers including Southwest Airlines and its rivals, Delta Air Lines Inc. DAL , United Continental Holdings Inc. UAL and American Airlines Group Inc. AAL is a major concern. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. On May 16, 2016, we issued an updated research report on Southwest Airlines Co.LUV , a low-fare, low-cost passenger carrier operating primarily on point-to-point routes.
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Furthermore, the charged levied by the U.S. Transportation Department against five major American carriers including Southwest Airlines and its rivals, Delta Air Lines Inc. DAL , United Continental Holdings Inc. UAL and American Airlines Group Inc. AAL is a major concern. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (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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Furthermore, the charged levied by the U.S. Transportation Department against five major American carriers including Southwest Airlines and its rivals, Delta Air Lines Inc. DAL , United Continental Holdings Inc. UAL and American Airlines Group Inc. AAL is a major concern. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. On May 16, 2016, we issued an updated research report on Southwest Airlines Co.LUV , a low-fare, low-cost passenger carrier operating primarily on point-to-point routes.
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Furthermore, the charged levied by the U.S. Transportation Department against five major American carriers including Southwest Airlines and its rivals, Delta Air Lines Inc. DAL , United Continental Holdings Inc. UAL and American Airlines Group Inc. AAL is a major concern. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, healthy increases in passenger and other revenues were witnessed during the quarter.
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7977.0
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2016-05-17 00:00:00 UTC
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Delta Air Lines (DAL) to Hike Dividend, Close Buyback Plan
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AAL
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https://www.nasdaq.com/articles/delta-air-lines-dal-to-hike-dividend-close-buyback-plan-2016-05-17
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Per a recent Wall Street Journal report, Delta Air Lines Inc.DAL will pay an increased dividend to shareholders and conclude its ongoing share repurchase program by May 2017. The airline will pay an annual dividend of 81 cents, up 50% from the previous payout of 54 cents. This will mark the third consecutive quarter of a 50% dividend hike by the Atlanta-based airline since 2013.
Delta also plans to close the ongoing $5 billion share buyback program, which was launched last year, to increase shareholder value. It will make accelerated share repurchase of $375 million during the second quarter.
Fuel Savings Mean Shareholders' Gain
Given that fuel costs are one of the most significant expenses for airlines, soft crude prices have resulted in massive savings for carriers, thereby boosting their financial health. Naturally, this caused a massive rebound in the fortune of airline stocks, helping carriers like American Airlines Group Inc. AAL and Delta Air Lines, which had filed for bankruptcy protection not so long ago, rake in huge profits. Another low-cost carrier, Southwest Airlines LUV recorded its highest profit sharing payment ($620 million) this year.
The ongoing financial prosperity in the airline space has prompted carriers to pay out incremental dividends and undertake shareholder-friendly initiatives like share buybacks and profit sharing.
The Bottom Line
Delta Air Lines posted impressive air traffic data for the month of April, wherein the company reported revenue passenger miles (RPMs) of 17.34 billion, up 2.7% from 16.89 billion recorded a year ago. Consolidated capacity (or available seat miles/ASMs) also inched up 2.5% to 20.81 billion. The company has been reaping considerable benefits from route expansion plans, introduction of ancillary products, fleet revamping and customer service enhancements as well as from its joint ventures and code share agreements. Thanks to such steps, the airline overtook United Continental Holdings, Inc. UAL as the nation's second-largest airline based on traffic last year. We believe that the encouraging 2016 profitability forecast issued by the International Air Transport Association (IATA), along with Delta's encouraging operational results, will enable it to reap incremental benefits, going ahead.
Delta Air Lines presently carries a Zacks Rank #3 (Hold).
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 >>
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 AIR (LUV): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (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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Naturally, this caused a massive rebound in the fortune of airline stocks, helping carriers like American Airlines Group Inc. AAL and Delta Air Lines, which had filed for bankruptcy protection not so long ago, rake in huge profits. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Per a recent Wall Street Journal report, Delta Air Lines Inc.DAL will pay an increased dividend to shareholders and conclude its ongoing share repurchase program by May 2017.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Naturally, this caused a massive rebound in the fortune of airline stocks, helping carriers like American Airlines Group Inc. AAL and Delta Air Lines, which had filed for bankruptcy protection not so long ago, rake in huge profits. Per a recent Wall Street Journal report, Delta Air Lines Inc.DAL will pay an increased dividend to shareholders and conclude its ongoing share repurchase program by May 2017.
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Naturally, this caused a massive rebound in the fortune of airline stocks, helping carriers like American Airlines Group Inc. AAL and Delta Air Lines, which had filed for bankruptcy protection not so long ago, rake in huge profits. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The Bottom Line Delta Air Lines posted impressive air traffic data for the month of April, wherein the company reported revenue passenger miles (RPMs) of 17.34 billion, up 2.7% from 16.89 billion recorded a year ago.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Naturally, this caused a massive rebound in the fortune of airline stocks, helping carriers like American Airlines Group Inc. AAL and Delta Air Lines, which had filed for bankruptcy protection not so long ago, rake in huge profits. The ongoing financial prosperity in the airline space has prompted carriers to pay out incremental dividends and undertake shareholder-friendly initiatives like share buybacks and profit sharing.
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7978.0
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2016-05-17 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Delta Air Lines, United Continental Holdings, American Airlines Group and Southwest 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
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nan
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nan
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For Immediate Release
Chicago, IL - May 17, 2016 - 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 ( DAL ), United Continental Holdings ( UAL ), American Airlines Group ( AAL ) and Southwest Airlines ( LUV ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Monday's Analyst Blog:
Major Airlines Bump Up Dividends: More Hikes on the Way?
It was not too long ago that stocks in the airline space were struggling on the financial front, many of them even filing for bankruptcy protection. Airlines were struggling to stay afloat in the early part of the century, grappling with issues like high fuel costs, among others. Moreover, the U.S. terror attacks in Sep 2001 dealt a severe blow to airlines. To deal with such adverse factors, airlines resorted to cost-cutting measures like headcount reduction.
Gloomy Backdrop
Given this gloomy background, it is no surprise that big players in the space like Delta Air Lines ( DAL ) had filed for bankruptcy. The Atlanta, GA-based company had slipped into bankruptcy in 2005 and eventually managed to come out of it following its merger with Northwest Airlines. United Airlines had also filed for bankruptcy in 2002. The company in its current form -- United Continental Holdings ( UAL ) -- was formed in 2010 following the merger of United Airlines and Continental Airlines.
Meanwhile, American Airlines had filed for bankruptcy in 2011. The subsequent merger of AMR (American Airlines' parent group) and US Airways in 2013, which resulted in the formation of American Airlines Group ( AAL ), proved advantageous.
Oil Price Dip: A Godsend
The outbreak of the deadly Ebola virus in 2014 hurt stocks immensely in the airline space. However, Ebola-related fears subsided gradually and this coincided with the free fall in oil prices . With costs associated with fuel being one of the most significant expenses for airlines, soft crude prices have resulted in massive savings for carriers, thereby boosting their financial health. Naturally, this caused a massive rebound in the fortunes of airline stocks helping carriers like American Airlines and Delta Air Lines, which had filed for bankruptcy protection not too long ago, rake in huge profits.
The current financial prosperity in the airline space has prompted carriers to pay out dividends apart from engaging in activities like share buybacks and sharing of profits. Earlier this year, employees of Delta Air Lines received the highest payout in the history of corporate profit sharing programs. Low-cost carrier, Southwest Airlines ( LUV ) made its highest profit sharing payment ($620 million) this year.
American Airlines, which was earlier opposed to profit sharing, reversed its stance and embraced the scheme in Mar 2016. The much-improved balance sheets of the airlines have also seen a surge in buybacks.
Uptick in Dividend Payouts
The massive savings due to cheap oil has led to major players in the space paying healthy dividends to its shareholders, a development which did not seem feasible in the days of financial crisis for carriers.
In 2015, Delta Air Lines raised its cash quarterly dividend to 13.5 cents per share (54 cents per share annualized), representing an increase of 50% over the previous payout of 9 cents per share. Last year, Southwest Airlines too raised its quarterly dividend. The payout was increased 25% to 7.5 cents per share (30 cents per share annualized).
Will More Hikes Follow?
With oil unlikely to touch the highs witnessed in mid-2014 any time soon, airlines are expected to maintain the healthy run going ahead. Despite the recent rally, crude prices have been hovering around the $45 a barrel mark. This represents a significant decline from the approximately $105 per barrel in Jul 2014.
The encouraging 2016 profitability forecast issued by the International Air Transport Association (IATA) further justifies our bullish stance on airline stocks. The trade association expects the airline industry to register profits of $36.3 billion in 2016 with a net profit margin of 5.1%. That airline companies have witnessed a turn of fortunes as oil began to sink mid-2014 onward can be made out from the fact that IATA's 2016 profit projection is more than double the $17.3 billion achieved in profits in 2014.
Given this encouraging backdrop, we expect dividend hikes to continue in 2016. For example, Delta Air Lines, which made a whopping $5.9 billion in pre-tax profit in 2015, is a prime candidate to raise its dividend payout this year. The likes of Southwest Airlines may also follow suit. Whatever be the final outcome we expect investors in the airline space to stay focused on this burning issue.
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 >>
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today . Find out What is happening in the stock market today on zacks.com.
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 (DAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
SOUTHWEST AIR (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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Stocks recently featured in the blog include Delta Air Lines ( DAL ), United Continental Holdings ( UAL ), American Airlines Group ( AAL ) and Southwest Airlines ( LUV ). The subsequent merger of AMR (American Airlines' parent group) and US Airways in 2013, which resulted in the formation of American Airlines Group ( AAL ), proved advantageous. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (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 Delta Air Lines ( DAL ), United Continental Holdings ( UAL ), American Airlines Group ( AAL ) and Southwest Airlines ( LUV ). Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. The subsequent merger of AMR (American Airlines' parent group) and US Airways in 2013, which resulted in the formation of American Airlines Group ( AAL ), proved advantageous.
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Stocks recently featured in the blog include Delta Air Lines ( DAL ), United Continental Holdings ( UAL ), American Airlines Group ( AAL ) and Southwest Airlines ( LUV ). Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. The subsequent merger of AMR (American Airlines' parent group) and US Airways in 2013, which resulted in the formation of American Airlines Group ( AAL ), proved advantageous.
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Stocks recently featured in the blog include Delta Air Lines ( DAL ), United Continental Holdings ( UAL ), American Airlines Group ( AAL ) and Southwest Airlines ( LUV ). The subsequent merger of AMR (American Airlines' parent group) and US Airways in 2013, which resulted in the formation of American Airlines Group ( AAL ), proved advantageous. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report To read this article on Zacks.com click here.
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7979.0
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2016-05-17 00:00:00 UTC
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Why Did Delta Revise Its Capacity Guidance?
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AAL
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https://www.nasdaq.com/articles/why-did-delta-revise-its-capacity-guidance-2016-05-17
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nan
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nan
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Delta Air Lines ( DAL ) has lowered its system capacity growth to less than 2% for the second half of 2016 in order to improve its unit revenue and manage the rising fuel costs. With the capacity cuts, Delta aims to become the first network carrier to have a positive unit revenue, or PRASM, a popular metric closely tracked by the industry experts, in 2H'16. The airline had previously hinted at adjusting capacity to improve its unit revenue trajectory. Yet, the news came as a surprise to many investors, which caused Delta's stock to jump by over 3% in a single trading day. The market reacted positively to the news and expects the other network carriers - American Airlines and United Continental Holdings - to follow suit. The stock price of both the competitors was up almost 2%.
Below we present the revised guidance by the airline and the key reasons behind the revision.
Have more questions about Delta Air Lines ( DAL )? See the links below:
Delta's Profits Continue To Surge As Crude Oil Prices Remain Low In 1Q'16
What Should We Expect From Delta's 1Q'16 Results?
How Did The Legacy Carriers Perform Operationally In January?
Why Did Delta's Operating Margin Soar In 2015?
Delta Air Lines: The Year 2015 In Review
How Will Delta's Revenue And EBITDA Grow Between 2015 and 2018?
How Has Delta's Revenue And EBITDA Changed Over The Last Five Years?
What Is Delta's Revenue And EBITDA Brekdown?
What Is Delta's Fundamental Value Based On Estimated 2016 Numbers?
How Has Delta's Revenue And EBITDA Composition Changed Over The Last Five Years?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Delta Air Lines Limited
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis 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 ( DAL ) has lowered its system capacity growth to less than 2% for the second half of 2016 in order to improve its unit revenue and manage the rising fuel costs. With the capacity cuts, Delta aims to become the first network carrier to have a positive unit revenue, or PRASM, a popular metric closely tracked by the industry experts, in 2H'16. For precise figures, please refer to our complete analysis for Delta Air Lines Limited View Interactive Institutional Research (Powered by Trefis): Global Large Cap | U.S.
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Have more questions about Delta Air Lines ( DAL )? For precise figures, please refer to our complete analysis for Delta Air Lines Limited View Interactive Institutional Research (Powered by Trefis): Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap More Trefis 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 ( DAL ) has lowered its system capacity growth to less than 2% for the second half of 2016 in order to improve its unit revenue and manage the rising fuel costs. With the capacity cuts, Delta aims to become the first network carrier to have a positive unit revenue, or PRASM, a popular metric closely tracked by the industry experts, in 2H'16. Delta Air Lines: The Year 2015 In Review How Will Delta's Revenue And EBITDA Grow Between 2015 and 2018?
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The airline had previously hinted at adjusting capacity to improve its unit revenue trajectory. The stock price of both the competitors was up almost 2%. Delta Air Lines: The Year 2015 In Review How Will Delta's Revenue And EBITDA Grow Between 2015 and 2018?
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7980.0
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2016-05-13 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Delta Air Lines, Southwest Airlines, American Airlines Group, JetBlue Airways and Air France-KLM SA
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-delta-air-lines-southwest-airlines-american-airlines
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nan
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nan
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For Immediate Release
Chicago, IL - May 13, 2016 - 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, Inc. ( DAL ), Southwest Airlines Co. ( LUV ), American Airlines Group Inc. ( AAL ), JetBlue Airways Corp. ( JBLU ) and Air France-KLM SA ( AFLYY ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Thursday's Analyst Blog:
Earnings Beats Galore for Airlines: Is All Well Otherwise?
As the first-quarter earnings season draws to a close, we take note of the impressive bottom-line performances posted by many of the airline stocks. On taking a closer look at the releases, it is clear that cheap oil has notably benefitted the airlines' bottom lines.
It is a well-documented fact that cheap oil has helped airline stocks cut operating expenses to a great extent. The substantial savings has thus helped the carriers boost their shareholder-friendly (dividends, buybacks) and employee friendly (profit sharing) activities.
Is Cheap Oil to Be Thanked?
The first quarter of 2016 has seen major airline companies like Delta Air Lines, Inc. ( DAL ), Southwest Airlines Co. ( LUV ) and American Airlines Group Inc. ( AAL ), among others, report better-than-expected earnings. Meanwhile, we can take a look at the factors that might have brought about the earnings beats in this quarter.
Oil prices have been weak for over 18 months. Given the extended period of the slump, it is quite natural analysts had already taken this major tailwind for airlines into consideration while arriving at their earnings per share estimates. With cheap oil already factored in, we believe that the reason behind the earnings beats lies elsewhere.
Despite the obvious benefit from the plummeting oil prices , the airline industry is not free from headwinds ranging from passenger revenue per available seat mile (PRASM) woes, strengthening of the U.S. dollar and terror attacks. In view of these headwinds, the earnings per share estimates have been trimmed over the past few months. With the bar (pertaining to earnings estimates) being lowered significantly, courtesy the drastic downward revisions, it is of little surprise that most carriers have managed to beat the (highly conservative) Zacks Consensus Estimate in the first quarter.
It is also to be noted that oil prices have recovered to a great extent over the past few months. Currently, oil is hovering around the $45 a barrel mark, reflecting a significant increase from the 12-year low of $26.21 recorded in February. Thus, it is clear that low oil prices have not been the factor behind the outperformance by the airlines this quarter.
In spite of the impressive earnings performances in the first quarter, there are a number of headwinds prevalent in the airline space. Let's take a look.
Roadblocks
The main headwind threatening stocks in the space is with respect to a key revenue metric PRASM (a measure of sales relative to capacity for a carrier). As in the past few quarters, this key metric impacted the top line of the carriers in the first quarter too. For instance, sector heavyweights such as Delta, United Continental and JetBlue Airways Corp. ( JBLU ) reported lower-than-expected revenues in the quarter hurt by unit revenue woes. Lower fuel surcharges on international flights due to weak oil prices have been one of the main reasons behind the persistent decline in PRASM. Consequently, plunging oil prices have become a double-edged sword for carriers.
That PRASM will continue to hurt the stocks going forward too can be made out from the second-quarter projections for the metric. For example, United Continental expects consolidated PRASM to decline in the band of 6.5% to 8.5% for the second quarter while American Airlines forecasts a 6% to 8% drop in the metric. Capacity-related issues have also been an adverse factor.
Moreover, airline stocks have been hurt by the frequent terror attacks which have affected demand to a great extent. The Brussels attacks (in Mar 2016) impacted Delta's top line in the first quarter while the Paris assault had impacted Air France-KLM SA's ( AFLYY ) revenues last year. Furthermore, outbreaks of diseases like the Zika virus and disputes similar to the ongoing one between legacy U.S. carriers and their Gulf counterparts pose challenges to the stocks in the airline space.
To Wrap Up
The above write-up clearly suggests that despite the series of earnings beats in the first quarter, the airline space is not free from challenges. We note that despite posting an earnings beat in the first quarter on Apr 26, shares of JetBlue Airways were hurt by the 8% decline in PRASM to 11.35 cents and 7% fall in operating revenue per available seat mile to 12.41 cents. Moreover, the fact that the NYSE ARCA Airline index has declined above 6% over the past month further substantiates the fact that the series of earnings beats in the airline space have failed to cheer investors.
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 >>
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today . Find out What is happening in the stock market today on zacks.com.
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 (DAL): Free Stock Analysis Report
SOUTHWEST AIR (LUV): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report
AIR FRANCE-ADR (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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Stocks recently featured in the blog include Delta Air Lines, Inc. ( DAL ), Southwest Airlines Co. ( LUV ), American Airlines Group Inc. ( AAL ), JetBlue Airways Corp. ( JBLU ) and Air France-KLM SA ( AFLYY ). The first quarter of 2016 has seen major airline companies like Delta Air Lines, Inc. ( DAL ), Southwest Airlines Co. ( LUV ) and American Airlines Group Inc. ( AAL ), among others, report better-than-expected earnings. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): 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, Inc. ( DAL ), Southwest Airlines Co. ( LUV ), American Airlines Group Inc. ( AAL ), JetBlue Airways Corp. ( JBLU ) and Air France-KLM SA ( AFLYY ). The first quarter of 2016 has seen major airline companies like Delta Air Lines, Inc. ( DAL ), Southwest Airlines Co. ( LUV ) and American Airlines Group Inc. ( AAL ), among others, report better-than-expected earnings. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here.
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The first quarter of 2016 has seen major airline companies like Delta Air Lines, Inc. ( DAL ), Southwest Airlines Co. ( LUV ) and American Airlines Group Inc. ( AAL ), among others, report better-than-expected earnings. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here. Stocks recently featured in the blog include Delta Air Lines, Inc. ( DAL ), Southwest Airlines Co. ( LUV ), American Airlines Group Inc. ( AAL ), JetBlue Airways Corp. ( JBLU ) and Air France-KLM SA ( AFLYY ).
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Stocks recently featured in the blog include Delta Air Lines, Inc. ( DAL ), Southwest Airlines Co. ( LUV ), American Airlines Group Inc. ( AAL ), JetBlue Airways Corp. ( JBLU ) and Air France-KLM SA ( AFLYY ). The first quarter of 2016 has seen major airline companies like Delta Air Lines, Inc. ( DAL ), Southwest Airlines Co. ( LUV ) and American Airlines Group Inc. ( AAL ), among others, report better-than-expected earnings. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report JETBLUE AIRWAYS (JBLU): Free Stock Analysis Report AIR FRANCE-ADR (AFLYY): Free Stock Analysis Report To read this article on Zacks.com click here.
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7981.0
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2016-05-13 00:00:00 UTC
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Why Is Alaska Air Acquiring Virgin America?
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AAL
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https://www.nasdaq.com/articles/why-alaska-air-acquiring-virgin-america-2016-05-13
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nan
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nan
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Alaska Air Group ( ALK ) plans to acquire Virgin America ( VA ) in a deal valued at $4 billion. The combined entity is expected to generate annual revenue of more than $7 billion and is likely to deliver revenue and cost synergies of roughly $225 million, to be realized at the time of full integration. The primary objective of the deal is to expand Alaska Air's footprint in California and to s trengthen its competitiveness against the top four US airlines .
California has a population of 39.1 million, which is nearly 3.3 times the combined population of Washington, Oregon, and Alaska. Further, California handles about 185,700 passengers on a daily basis, which is more than 2.5 times the number of passengers handled by the other three states. However, despite being heavily invested in the region (in terms of daily seats), Alaska Air does not have a sizeable seat share in California. Thus, it makes economic sense for Alaska Air to expand in the region through its merger with Virgin America.
Post the merger, Alaska Air will have a notable seat share in the major cities such as San Francisco and Los Angeles, where it currently does not have much presence. Further, it will have the largest seat share in the entire West Coast, much higher than the legacy carriers. Hence, we believe that the Virgin America deal will allow Alaska Air to realize its plan of expanding its exposure to the West Coast, particularly California.
Have more questions about Alaska Air ( ALK )? See the following links:
How Will Alaska Air Benefit From The Virgin America Deal Operationally?
How Will The Virgin America Deal Alter Alaska Air's Capital Structure?
Has Alaska Air Paid A Fair Price For Acquiring Virgin America?
Alaska Air's Earnings Rise On The Back Of Rapid Capacity Growth And Lower Fuel Costs
How Has Alaska Air Used Its Increased Cash Flows From Fuel Cost Savings?
How Will Alaska Air's EBITDA Be Impacted, If Crude Oil Prices Rebound To $100 Per Barrel By 2018?
Capacity Expansions And Fuel Cost Savings Boost Alaska Air's 2015 Results
How Do Alaska Air's Operational Statistics Compare With Its Peers?
How Does Alaska Air's Market Share (By Capacity) Compare With Its Peers?
How Does Alaska Air's Operating Margins Compare With Its Peers?
How Much Will Alaska Air's Revenue And EBITDA Grow In The Next 3 Years?
How Has The Oil Slump Helped Alaska Air's Operating Margins?
How Has Alaska Air's Revenue And EBITDA Composition Changed Over the Last Five Years?
How Much Has Alaska Air's Revenue & EBITDA Grown In The Last 5 Years?
What Is Alaska Air's Fundamental Value Based On Expected 2015 Results?
What Constitutes Alaska Air's Revenue And EBITDA?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Alaska Air Group
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis 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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Post the merger, Alaska Air will have a notable seat share in the major cities such as San Francisco and Los Angeles, where it currently does not have much presence. Hence, we believe that the Virgin America deal will allow Alaska Air to realize its plan of expanding its exposure to the West Coast, particularly California. For precise figures, please refer to our complete analysis for Alaska Air Group View Interactive Institutional Research (Powered by Trefis): Global Large Cap | U.S.
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Alaska Air Group ( ALK ) plans to acquire Virgin America ( VA ) in a deal valued at $4 billion. Capacity Expansions And Fuel Cost Savings Boost Alaska Air's 2015 Results How Do Alaska Air's Operational Statistics Compare With Its Peers? Mid & Small Cap | European Large & Mid Cap More Trefis 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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Hence, we believe that the Virgin America deal will allow Alaska Air to realize its plan of expanding its exposure to the West Coast, particularly California. Alaska Air's Earnings Rise On The Back Of Rapid Capacity Growth And Lower Fuel Costs How Has Alaska Air Used Its Increased Cash Flows From Fuel Cost Savings? Capacity Expansions And Fuel Cost Savings Boost Alaska Air's 2015 Results How Do Alaska Air's Operational Statistics Compare With Its Peers?
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The combined entity is expected to generate annual revenue of more than $7 billion and is likely to deliver revenue and cost synergies of roughly $225 million, to be realized at the time of full integration. Hence, we believe that the Virgin America deal will allow Alaska Air to realize its plan of expanding its exposure to the West Coast, particularly California. Capacity Expansions And Fuel Cost Savings Boost Alaska Air's 2015 Results How Do Alaska Air's Operational Statistics Compare With Its Peers?
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7982.0
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2016-05-12 00:00:00 UTC
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The Zacks Analyst Blog Highlights: Alaska Air Group, Copa Holdings, United Continental Holdings, American Airlines Group and Southwest Airlines
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AAL
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https://www.nasdaq.com/articles/the-zacks-analyst-blog-highlights%3A-alaska-air-group-copa-holdings-united-continental
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nan
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nan
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For Immediate Release
Chicago, IL - May 12, 2016 - 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 Alaska Air Group ( ALK ), Copa Holdings ( CPA ), United Continental Holdings ( UAL ), American Airlines Group Inc. ( AAL ) and Southwest Airlines Co. ( LUV ).
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
Alaska Air Group ( ALK ) has been dominating the headlines in the airline space as it prepares to join the sought-after S&P 500 index on May 12, replacing SanDisk Corp., which is about to be acquired by Western Digital Corp.
On the earnings front, Latin American carrier Copa Holdings ( CPA ) hogged the limelight by reporting better-than-expected earnings and revenues in the first quarter of 2016. Furthermore, the past week saw heavyweights in the airline space like United Continental Holdings ( UAL ), American Airlines Group Inc. ( AAL ) and Southwest Airlines Co. ( LUV ) post their traffic numbers for the month of April.
Read the last Airline Stock Roundup for May 04, 2016 .
Recap of the Past Week's Most Important Stories
1. Alaska Air Group is set to join the S&P 500 after market close on May 12, 2016. The Seattle, WA-based carrier will be the first airline stock to join the S&P 500 this year. Fellow carriers United Continental and American Airlines were included in the benchmark last year. Alaska Air Group will be added to the S&P 500 GICS "Industrials" sector or Airlines Sub-Industry index as the carrier fulfills all the criteria for being included in the index.
On a separate note, the carrier announced plans of a codeshare deal and frequent flier pact with Japan Airlines. The customer-friendly move will be effective from Jun 29, assuming government approval.
2. Copa Holdings' first-quarter earnings (on an adjusted basis) of $1.66 per share were above the Zacks Consensus Estimate of $1.38. Results were aided by low fuel costs. The average price of fuel declined 27.2% year over year to $1.68 per gallon. Earnings were however significantly below the year-ago figure of $2.41 per share. Quarterly revenues declined 11.9% on a year-over-year basis to $557 million, primarily due to the 12.4% decline in passenger revenues.
Revenues, however, beat the Zacks Consensus Estimate of $549 million. Passenger revenue per available seat mile (PRASM: a measure of unit revenue) declined 14.5% to 9.7 cents in the reported quarter. Operating revenue per available seat mile (RASM) decreased 13.9% to 10 cents. Another important metric, yield per passenger mile went down by 15.4%. Passenger traffic (on a consolidated basis) climbed 3.6% during the quarter primarily on a 2.4% capacity expansion. Load factor (% of seats filled by passengers) improved 90 basis points to 77.4% as traffic growth outpaced capacity expansion.
On a separate note, the carrier unveiled its traffic numbers for April. Revenue passenger miles (RPMs: a measure of air traffic) improved 4.1% while Available seat miles (ASMs: a measure of capacity) fell 0.4%. Load factor (% of seats filled by passengers) improved 330 basis points to 76.1% as traffic expanded while capacity contracted.
3. Southwest Airlines revealed healthy traffic numbers for the month of April with RPMS rising 4.7% on a year-over-year basis to 10.4 billion. ASMs climbed 4.3% to 12.4 billion. The carrier continues to expect operating revenue per ASM (RASM) to increase modestly in the second quarter of 2016 (read more: Southwest Airlines April Traffic Strong; Maintains RASM View ).
4. United Continental Holdings, the holding company of United Airlines, posted a 1.9% decrease in RPMs for Apr 2016 on a 0.9% reduction in ASMs. The carrier still expects consolidated PRASM to decline in the range of 6.5% to 8.5% in the second quarter (read more: United Continental's April Traffic Falls, PRASM View Intact ).
5. American Airlines posted a 0.2% decline in April RPMs to 18 billion while ASMs climbed 1.3% on a year-over-year basis to 22.4 billion. Load factor fell 120 basis points to 80.4% in April as traffic contracted while capacity expanded. American Airlines still forecasts a 6% to 8% drop in PRASM for the second quarter of 2016. Moreover, pre-tax margin (exclusive of special items) is likely to remain in the band of 14% to 16%.
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About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today . Find out What is happening in the stock market today on zacks.com.
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ALASKA AIR GRP (ALK): Free Stock Analysis Report
COPA HLDGS SA-A (CPA): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
SOUTHWEST AIR (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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Stocks recently featured in the blog include Alaska Air Group ( ALK ), Copa Holdings ( CPA ), United Continental Holdings ( UAL ), American Airlines Group Inc. ( AAL ) and Southwest Airlines Co. ( LUV ). Furthermore, the past week saw heavyweights in the airline space like United Continental Holdings ( UAL ), American Airlines Group Inc. ( AAL ) and Southwest Airlines Co. ( LUV ) post their traffic numbers for the month of April. Click to get this free report ALASKA AIR GRP (ALK): Free Stock Analysis Report COPA HLDGS SA-A (CPA): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (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 Alaska Air Group ( ALK ), Copa Holdings ( CPA ), United Continental Holdings ( UAL ), American Airlines Group Inc. ( AAL ) and Southwest Airlines Co. ( LUV ). Furthermore, the past week saw heavyweights in the airline space like United Continental Holdings ( UAL ), American Airlines Group Inc. ( AAL ) and Southwest Airlines Co. ( LUV ) post their traffic numbers for the month of April. Click to get this free report ALASKA AIR GRP (ALK): Free Stock Analysis Report COPA HLDGS SA-A (CPA): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (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 Alaska Air Group ( ALK ), Copa Holdings ( CPA ), United Continental Holdings ( UAL ), American Airlines Group Inc. ( AAL ) and Southwest Airlines Co. ( LUV ). Click to get this free report ALASKA AIR GRP (ALK): Free Stock Analysis Report COPA HLDGS SA-A (CPA): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report To read this article on Zacks.com click here. Furthermore, the past week saw heavyweights in the airline space like United Continental Holdings ( UAL ), American Airlines Group Inc. ( AAL ) and Southwest Airlines Co. ( LUV ) post their traffic numbers for the month of April.
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Stocks recently featured in the blog include Alaska Air Group ( ALK ), Copa Holdings ( CPA ), United Continental Holdings ( UAL ), American Airlines Group Inc. ( AAL ) and Southwest Airlines Co. ( LUV ). Furthermore, the past week saw heavyweights in the airline space like United Continental Holdings ( UAL ), American Airlines Group Inc. ( AAL ) and Southwest Airlines Co. ( LUV ) post their traffic numbers for the month of April. Click to get this free report ALASKA AIR GRP (ALK): Free Stock Analysis Report COPA HLDGS SA-A (CPA): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report SOUTHWEST AIR (LUV): Free Stock Analysis Report To read this article on Zacks.com click here.
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7983.0
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2016-05-11 00:00:00 UTC
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JD Power Study: The 5 Best Airlines 2016
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AAL
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https://www.nasdaq.com/articles/jd-power-study-5-best-airlines-2016-2016-05-11
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nan
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nan
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InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
A new study from JD Power lists the best airlines in 2016. The study looked at how satisfied customers were with different airlines and rated them on a scale 1 to 1,000. Several factors were used to determine an airline's position in the ranking.
Source: Source: Flickr
Here are the top 5 traditional airlines from the JD Power study.
Alaska Air Group, Inc. ( ALK )
Delta Air Lines, Inc. ( DAL )
American Airlines Group Inc ( AAL )
Air Canada
United Continental Holdings Inc ( UAL )
To see more of the best airlines from the JD Power study, including the best low-cost ones, click here .
More From InvestorPlace:
8 Great Stocks to Buy Now to Trump the Summer Slump
7 Blue Chips That Are Getting Ugly in a Hurry
7 Bland Beauties That EVERY Investor Should Own
The post JD Power Study: The 5 Best Airlines 2016 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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Alaska Air Group, Inc. ( ALK ) Delta Air Lines, Inc. ( DAL ) American Airlines Group Inc ( AAL ) Air Canada United Continental Holdings Inc ( UAL ) To see more of the best airlines from the JD Power study, including the best low-cost ones, click here . The study looked at how satisfied customers were with different airlines and rated them on a scale 1 to 1,000. More From InvestorPlace: 8 Great Stocks to Buy Now to Trump the Summer Slump 7 Blue Chips That Are Getting Ugly in a Hurry 7 Bland Beauties That EVERY Investor Should Own The post JD Power Study: The 5 Best Airlines 2016 appeared first on InvestorPlace .
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Alaska Air Group, Inc. ( ALK ) Delta Air Lines, Inc. ( DAL ) American Airlines Group Inc ( AAL ) Air Canada United Continental Holdings Inc ( UAL ) To see more of the best airlines from the JD Power study, including the best low-cost ones, click here . The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Alaska Air Group, Inc. ( ALK ) Delta Air Lines, Inc. ( DAL ) American Airlines Group Inc ( AAL ) Air Canada United Continental Holdings Inc ( UAL ) To see more of the best airlines from the JD Power study, including the best low-cost ones, click here . InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips A new study from JD Power lists the best airlines in 2016. More From InvestorPlace: 8 Great Stocks to Buy Now to Trump the Summer Slump 7 Blue Chips That Are Getting Ugly in a Hurry 7 Bland Beauties That EVERY Investor Should Own The post JD Power Study: The 5 Best Airlines 2016 appeared first on InvestorPlace .
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Alaska Air Group, Inc. ( ALK ) Delta Air Lines, Inc. ( DAL ) American Airlines Group Inc ( AAL ) Air Canada United Continental Holdings Inc ( UAL ) To see more of the best airlines from the JD Power study, including the best low-cost ones, click here . InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips A new study from JD Power lists the best airlines in 2016. The study looked at how satisfied customers were with different airlines and rated them on a scale 1 to 1,000.
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7984.0
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2016-05-06 00:00:00 UTC
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Shipping Stocks Reporting Earnings Next Week: NVGS, NMM, NAT
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AAL
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https://www.nasdaq.com/articles/shipping-stocks-reporting-earnings-next-week%3A-nvgs-nmm-nat-2016-05-06
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nan
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nan
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The Q1 earnings season is over as far as S&P 500 players in the transportation space are concerned. According to the latest Earnings Trends Report , the growth rate for earnings in this widely diversified sector is +2.9% with an impressive 85.7% companies reporting better-than-expected earnings in the quarter. The impressive proportion of companies beating earnings estimates is due to the plain and simple fact of estimates being trimmed significantly over the past few months reflecting the overall challenging environment.
However, the overall earnings growth rate is still negative as per the report. In fact, 8 of the 16 Zacks sectors are expected to end Q1 with earnings growth in the negative territory. That transportation has managed to display positive bottom-line growth (in the S&P space) is mainly due to cheap oil. Fuel costs form a significant portion of operating expenses for any player in the transportation space. Consequently, the drop in oil prices has come in as a blessing for transportation players.
Major transportation players like Delta Air Lines DAL and American Airlines Group AAL have reported better-than-expected earnings in Q1, thanks to low fuel costs. Even though bottom-line performance has been quite impressive for transportation players, the picture is gloomy with respect to revenues. As has been the case in the past few quarters, the S&P 500 members of this sector have seen top-line contraction this time too. Revenues have declined 1.1% on a year-over-year basis.
With all the S&P 500 members in the transportation sector having already reported their quarterly numbers, there are only a few companies remaining to report from this space. Most of the "still-to-report" companies are shipping stocks. In fact, the shipping industry is going through tough times due to low freight rates, overcapacity, a dearth of bank financing, among other headwinds.
In the light of these challenging factors, let's take a peek into how 3 shipping stocks are poised ahead of their first-quarter results.
Things look rosy for shipping player Navigator Holdings Ltd.NVGS , based in London, as it has the right combination of two key ingredients - positive Earnings ESP and a Zacks Rank #3 (Hold) or better - necessary for increasing the odds of an earnings surprise.
The Earnings ESP for Navigator Holdings is +5.26% as the Most Accurate estimate is 2 cents higher than the Zacks Consensus Estimate of 38 cents. Moreover, the company has a Zacks Rank #3.
Founded in 2007 and based in Monte Carlo, Monaco, Navios Maritime Partners L.P.NMM is not likely to beat earnings.The Earnings ESP for Navios Maritime Partners is 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 7 cents. The company has a Zacks Rank #3 but that alone is not sufficient to secure an earnings beat.
Our quantitative model does not conclusively show an earnings beat for Hamilton, Bermuda-based company Nordic American Tankers LimitedNAT as well. The Earnings ESP for Nordic American Tankers is -3.23% as the Most Accurate estimate is 1 cent lower than the Zacks Consensus Estimate of 31 cents. Meanwhile, the company has a Zacks Rank #2 which alone is not enough for an earnings beat.
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 >>
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 (DAL): Free Stock Analysis Report
NORDIC AMERICAN (NAT): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
NAVIOS MARIT LP (NMM): Free Stock Analysis Report
NAVIGATOR HLDGS (NVGS): 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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Major transportation players like Delta Air Lines DAL and American Airlines Group AAL have reported better-than-expected earnings in Q1, thanks to low fuel costs. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report NORDIC AMERICAN (NAT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report NAVIOS MARIT LP (NMM): Free Stock Analysis Report NAVIGATOR HLDGS (NVGS): Free Stock Analysis Report To read this article on Zacks.com click here. In fact, the shipping industry is going through tough times due to low freight rates, overcapacity, a dearth of bank financing, among other headwinds.
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Major transportation players like Delta Air Lines DAL and American Airlines Group AAL have reported better-than-expected earnings in Q1, thanks to low fuel costs. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report NORDIC AMERICAN (NAT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report NAVIOS MARIT LP (NMM): Free Stock Analysis Report NAVIGATOR HLDGS (NVGS): 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 (DAL): Free Stock Analysis Report NORDIC AMERICAN (NAT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report NAVIOS MARIT LP (NMM): Free Stock Analysis Report NAVIGATOR HLDGS (NVGS): Free Stock Analysis Report To read this article on Zacks.com click here. Major transportation players like Delta Air Lines DAL and American Airlines Group AAL have reported better-than-expected earnings in Q1, thanks to low fuel costs. According to the latest Earnings Trends Report , the growth rate for earnings in this widely diversified sector is +2.9% with an impressive 85.7% companies reporting better-than-expected earnings in the quarter.
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Major transportation players like Delta Air Lines DAL and American Airlines Group AAL have reported better-than-expected earnings in Q1, thanks to low fuel costs. Click to get this free report DELTA AIR LINES (DAL): Free Stock Analysis Report NORDIC AMERICAN (NAT): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report NAVIOS MARIT LP (NMM): Free Stock Analysis Report NAVIGATOR HLDGS (NVGS): Free Stock Analysis Report To read this article on Zacks.com click here. According to the latest Earnings Trends Report , the growth rate for earnings in this widely diversified sector is +2.9% with an impressive 85.7% companies reporting better-than-expected earnings in the quarter.
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7985.0
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2016-05-04 00:00:00 UTC
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JetBlue Attacks Delta and American Airlines in a Lucrative Market
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AAL
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https://www.nasdaq.com/articles/jetblue-attacks-delta-and-american-airlines-lucrative-market-2016-05-04
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nan
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nan
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For more than three decades, the market for frequent "shuttle flights" from New York's LaGuardia Airport to Boston and Washington, D.C., has been split between two airlines. The identities of those two airlines have shifted over time, but today, Delta Air Lines and American Airlines are the two competitors.
Since Amtrak debuted its high-speed Acela Express service between Boston and Washington in late 2000, the airline shuttles have lost customers to rail travel. Starting this fall, Delta and American will face a new threat. Plucky upstart JetBlue Airways plans to start flying between LaGuardia Airport and Boston in late October, undercutting the incumbents' fares.
JetBlue will begin flying from Boston to LaGuardia Airport in late October. Image source: JetBlue Airways.
JetBlue seizes an opportunity
New York and Boston are JetBlue's top two markets. As a result, it's probably safe to say the company has been interested in the New York-Boston shuttle market for quite a while.
However, most of JetBlue's New York-area flights are based at JFK Airport, which is farther from Manhattan than LaGuardia. As a result, it's much less popular among business travelers. So, while JetBlue offers fairly frequent flights from Boston to JFK Airport, it's not attracting the same customers as the Delta Shuttle and the American Airlines Shuttle.
To compete seriously for business travelers on this route, JetBlue would need to fly from Boston to LaGuardia. The problem is, JetBlue doesn't have that many slots at LaGuardia Airport. Today, it uses them for lucrative flights to Florida. The high opportunity cost of repurposing those scarce slots for shuttle flights to Boston has kept JetBlue out of the market.
However, something changed recently. The FAA plans to lift the slot constraints on Newark Airport -- the third major New York City-area airport -- as of October 30. This will allow airlines like JetBlue to add flights there.
JetBlue therefore plans to shift six daily flights to Florida from LaGuardia Airport to Newark Airport. This will free up precious LaGuardia slots for JetBlue to operate six daily roundtrips to Boston on weekdays.
Competing on price
With six daily roundtrips, JetBlue still won't nearly match the schedules offered by Delta Air Lines and American Airlines, which each offer hourly service between New York and Boston. However, JetBlue plans to undercut its rivals on price, with one-way tickets as low as $49.
Delta is the market leader at New York's LaGuardia Airport. Image source: Delta Air Lines.
By contrast, roundtrip tickets on Delta or American typically cost $281 or more , according to Reuters. Tickets for Amtrak's high-speed Acela service also tend to be priced at more than $100 one way, although the slower regional trains are usually cheaper.
It's all about winning in Boston
JetBlue is the largest airline in Boston, with nearly 140 daily departures and 30% market share. This has enabled it to make significant inroads in the corporate travel market there. Indeed, short-haul business-oriented routes in Boston have been a bright spot for JetBlue recently.
This move into the Boston-LaGuardia market is just one more piece of JetBlue's strategy to dominate Boston. Over the past few years, it has gradually added new cities to its route map to capitalize on strong business demand out of Boston.
JetBlue has also started to bring its highly acclaimed Mint service to Boston to win over more business travelers. Two of the airline's three daily flights to San Francisco now feature a premium cabin with 16 flat-bed seats. In the next two years, JetBlue's transcontinental flights from Boston to Los Angeles, Seattle, and San Diego will also get Mint service.
JetBlue is bringing its Mint premium service to Boston. Image source: JetBlue Airways.
JetBlue is clearly gaining momentum among business travelers in Boston. It still has plenty of work to do as it fills out its route network there, but adding flights to LaGuardia Airport will further solidify its position as the No. 1 airline in Boston.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early, in-the-know investors! To be one of them, just click here .
The article JetBlue Attacks Delta and American Airlines in a Lucrative Market originally appeared on Fool.com.
Adam Levine-Weinberg owns shares of JetBlue Airways and is long January 2017 $17 calls on JetBlue Airways, long January 2017 $40 calls on Delta Air Lines,, and long January 2017 $30 calls on American Airlines Group. The Motley Fool is long January 2017 $35 calls on American Airlines Group. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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For more than three decades, the market for frequent "shuttle flights" from New York's LaGuardia Airport to Boston and Washington, D.C., has been split between two airlines. Since Amtrak debuted its high-speed Acela Express service between Boston and Washington in late 2000, the airline shuttles have lost customers to rail travel. Plucky upstart JetBlue Airways plans to start flying between LaGuardia Airport and Boston in late October, undercutting the incumbents' fares.
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Since Amtrak debuted its high-speed Acela Express service between Boston and Washington in late 2000, the airline shuttles have lost customers to rail travel. Plucky upstart JetBlue Airways plans to start flying between LaGuardia Airport and Boston in late October, undercutting the incumbents' fares. Adam Levine-Weinberg owns shares of JetBlue Airways and is long January 2017 $17 calls on JetBlue Airways, long January 2017 $40 calls on Delta Air Lines,, and long January 2017 $30 calls on American Airlines Group.
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So, while JetBlue offers fairly frequent flights from Boston to JFK Airport, it's not attracting the same customers as the Delta Shuttle and the American Airlines Shuttle. Competing on price With six daily roundtrips, JetBlue still won't nearly match the schedules offered by Delta Air Lines and American Airlines, which each offer hourly service between New York and Boston. Adam Levine-Weinberg owns shares of JetBlue Airways and is long January 2017 $17 calls on JetBlue Airways, long January 2017 $40 calls on Delta Air Lines,, and long January 2017 $30 calls on American Airlines Group.
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For more than three decades, the market for frequent "shuttle flights" from New York's LaGuardia Airport to Boston and Washington, D.C., has been split between two airlines. JetBlue therefore plans to shift six daily flights to Florida from LaGuardia Airport to Newark Airport. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
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7986.0
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2016-05-01 00:00:00 UTC
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Southwest Airlines Co. Just Handed Its Rivals a Big Gift
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AAL
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https://www.nasdaq.com/articles/southwest-airlines-co-just-handed-its-rivals-big-gift-2016-05-01
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nan
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nan
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Over the past year and a half, Southwest Airlines has gone back to its roots as a disruptive force in the U.S. airline industry. Southwest has added capacity rapidly while challenging its biggest competitors in many of their core markets.
Southwest Airlines has grown rapidly in the past year and a half. Image source: The Motley Fool.
However, those rivals can breathe a sigh of relief now. Last month, Southwest announced that it will accelerate the retirement of its aging fleet of 737 Classics to Q3 2017 because of issues related to pilot training. This means that American Airlines , Delta Air Lines , and United Continental are poised to benefit from a lull in competition beginning next fall.
Southwest Airlines challenges its rivals
Southwest has been a big thorn in the sides of American, Delta, and United lately. All three legacy carriers have reported persistent unit revenue declines since early 2015.
Of course, Southwest Airlines isn't the only cause of the revenue troubles at the Big Three. But as the only other airline with similar scale in the domestic market, it has a unique ability to affect supply/demand dynamics in the U.S. -- and Southwest's capacity surged 7.2% year over year in 2015.
This included tremendous growth in Dallas, a key hub market for American Airlines. Southwest also began operating international flights in Houston, a big hub for United Continental. Delta has been less directly affected by Southwest's recent growth -- which helps explain its better unit revenue performance -- but it still isn't immune, as Southwest has added seats in many markets.
Southwest's growth has contributed to its rivals' unit revenue declines. Image source: The Motley Fool.
With its profitability at record levels, Southwest plans to continue growing at a steady clip. It increased capacity about 8% year over year in Q1, adjusting for the leap year effect, and plans to grow 5%-6% for the full year. This will keep the pressure on its rivals, who are all facing slower than hoped-for revenue recoveries.
Southwest faces a training issue
However, Southwest has decided that because of uncertainty about the training requirements for its new 737 MAX fleet, it will have to retire all of its older 737 Classics before it puts the 737 MAX into service in the fall of 2017.
Southwest is known for operating only one aircraft type -- the Boeing 737 -- to simplify operations and pilot training. But there are many different variants and generations of the 737. Southwest mainly flies the 737 Next-Generation (NG) models that are currently in production, but it also has more than 100 737 Classics that were built during the 1980s and 1990s.
The same pilots can fly both generations of the 737. And it will be equally easy for Southwest to train pilots to fly both 737 NG and 737 MAX models. The problem is that Southwest doesn't know what it would need to do to train pilots to fly both the older 737 Classic and the brand-new 737 MAX. The only viable solution Southwest has found is to retire the remaining 737 Classic fleet before the 737 MAX enters service.
Capacity growth set to slow
Southwest had already planned to retire its last 737 Classics in 2018, so this decision only moves up the timeline by a year or so. However, it still had 129 737 Classics operating at the end of 2015 and only has 120 planes on order for the combined 2016-2017 period. This suggests that Southwest will end 2017 with fewer planes than it had at the beginning of the year.
CEO Gary Kelly emphasized that this doesn't mean Southwest's full-year capacity will decline next year. A more likely option is that it would continue operating about 50 737 Classics during the summer peak season and then retire them all right after Labor Day.
Southwest will retire its oldest 737s before it starts to fly the 737 MAX. Image source: Boeing.
Even in this scenario, Southwest's capacity growth seems likely to slow to about 2%-3% through the summer peak season before turning negative after Labor Day. The result is that American, Delta, and United could benefit from an easing competitive environment in 2017, especially later in the year. This will help them in their efforts to return to unit revenue growth.
The respite won't last
The bad news for the legacy carriers is that Southwest Airlines' growth slowdown won't last for very long. By the end of 2018, Southwest will be back to its previous fleet plan. That could mean an increase in growth in the second half of 2018, as the carrier laps its late-2017 capacity reductions.
Still, even a temporary respite from competition will help American Airlines, Delta Air Lines, and United Continental. It will give them a chance to get unit revenue on the right track -- and to prepare for Southwest's next wave of growth.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
The article Southwest Airlines Co. Just Handed Its Rivals a Big Gift originally appeared on Fool.com.
Adam Levine-Weinberg owns shares of The Boeing Company and United Continental Holdings, and is long January 2017 $40 calls on Delta Air Lines, and long January 2017 $30 calls on American Airlines Group. The Motley Fool is long January 2017 $35 calls on American Airlines Group. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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This means that American Airlines , Delta Air Lines , and United Continental are poised to benefit from a lull in competition beginning next fall. Capacity growth set to slow Southwest had already planned to retire its last 737 Classics in 2018, so this decision only moves up the timeline by a year or so. Even in this scenario, Southwest's capacity growth seems likely to slow to about 2%-3% through the summer peak season before turning negative after Labor Day.
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Still, even a temporary respite from competition will help American Airlines, Delta Air Lines, and United Continental. Adam Levine-Weinberg owns shares of The Boeing Company and United Continental Holdings, and is long January 2017 $40 calls on Delta Air Lines, and long January 2017 $30 calls on American Airlines Group. The Motley Fool is long January 2017 $35 calls on American Airlines Group.
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Southwest Airlines challenges its rivals Southwest has been a big thorn in the sides of American, Delta, and United lately. Delta has been less directly affected by Southwest's recent growth -- which helps explain its better unit revenue performance -- but it still isn't immune, as Southwest has added seats in many markets. Southwest faces a training issue However, Southwest has decided that because of uncertainty about the training requirements for its new 737 MAX fleet, it will have to retire all of its older 737 Classics before it puts the 737 MAX into service in the fall of 2017.
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Southwest Airlines challenges its rivals Southwest has been a big thorn in the sides of American, Delta, and United lately. Southwest's growth has contributed to its rivals' unit revenue declines. The problem is that Southwest doesn't know what it would need to do to train pilots to fly both the older 737 Classic and the brand-new 737 MAX.
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7987.0
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2016-04-28 00:00:00 UTC
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Thursday's ETF with Unusual Volume: PEJ
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AAL
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https://www.nasdaq.com/articles/thursdays-etf-unusual-volume-pej-2016-04-28
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nan
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nan
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The PowerShares Dynamic Leisure and Entertainment Portfolio ETF ( PEJ ) is seeing unusually high volume in afternoon trading Thursday, with over 292,000 shares traded versus three month average volume of about 56,000. Shares of PEJ were down about 1.2% on the day.
Components of that ETF with the highest volume on Thursday were Delta Air Lines ( DAL ), trading down about 1.1% with over 5.6 million shares changing hands so far this session, and American Airlines Group ( AAL ), down about 0.8% on volume of over 4.8 million shares. Panera Bread ( PNRA ) is the component faring the best Thursday, higher by about 0.4% on the day, while Dominos Pizza ( DPZ ) is lagging other components of the PowerShares Dynamic Leisure and Entertainment Portfolio ETF, trading lower by about 9.1%.
VIDEO: Thursday's ETF with Unusual Volume: PEJ
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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Components of that ETF with the highest volume on Thursday were Delta Air Lines ( DAL ), trading down about 1.1% with over 5.6 million shares changing hands so far this session, and American Airlines Group ( AAL ), down about 0.8% on volume of over 4.8 million shares. The PowerShares Dynamic Leisure and Entertainment Portfolio ETF ( PEJ ) is seeing unusually high volume in afternoon trading Thursday, with over 292,000 shares traded versus three month average volume of about 56,000. Panera Bread ( PNRA ) is the component faring the best Thursday, higher by about 0.4% on the day, while Dominos Pizza ( DPZ ) is lagging other components of the PowerShares Dynamic Leisure and Entertainment Portfolio ETF, trading lower by about 9.1%.
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Components of that ETF with the highest volume on Thursday were Delta Air Lines ( DAL ), trading down about 1.1% with over 5.6 million shares changing hands so far this session, and American Airlines Group ( AAL ), down about 0.8% on volume of over 4.8 million shares. The PowerShares Dynamic Leisure and Entertainment Portfolio ETF ( PEJ ) is seeing unusually high volume in afternoon trading Thursday, with over 292,000 shares traded versus three month average volume of about 56,000. Panera Bread ( PNRA ) is the component faring the best Thursday, higher by about 0.4% on the day, while Dominos Pizza ( DPZ ) is lagging other components of the PowerShares Dynamic Leisure and Entertainment Portfolio ETF, trading lower by about 9.1%.
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Components of that ETF with the highest volume on Thursday were Delta Air Lines ( DAL ), trading down about 1.1% with over 5.6 million shares changing hands so far this session, and American Airlines Group ( AAL ), down about 0.8% on volume of over 4.8 million shares. The PowerShares Dynamic Leisure and Entertainment Portfolio ETF ( PEJ ) is seeing unusually high volume in afternoon trading Thursday, with over 292,000 shares traded versus three month average volume of about 56,000. VIDEO: Thursday's ETF with Unusual Volume: PEJ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Components of that ETF with the highest volume on Thursday were Delta Air Lines ( DAL ), trading down about 1.1% with over 5.6 million shares changing hands so far this session, and American Airlines Group ( AAL ), down about 0.8% on volume of over 4.8 million shares. The PowerShares Dynamic Leisure and Entertainment Portfolio ETF ( PEJ ) is seeing unusually high volume in afternoon trading Thursday, with over 292,000 shares traded versus three month average volume of about 56,000. VIDEO: Thursday's ETF with Unusual Volume: PEJ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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7988.0
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2016-04-27 00:00:00 UTC
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Why Delta Air Lines, Inc.'s Solid Earnings Report Led to Only a 2% Pop
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AAL
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https://www.nasdaq.com/articles/why-delta-air-lines-incs-solid-earnings-report-led-only-2-pop-2016-04-27
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nan
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nan
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Delta Airlines delivered a higher-than-expected first-quarter profit, along with plans for share buybacks. Yet the big carrier's stock price barely rose in response.
In this segment from the MarketFoolery podcast, Chris Hill talks to Jeff Fischer and JP Bennett about a few areas Delta and the other big airlines still need to work on, how they've changed their game for the better in the past decade or so, and why, just maybe, investors should give them the benefit of the doubt this time around.
A full transcript follows the video.
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This podcast was recorded on April 14, 2016.
Chris Hill: Let's start with Delta Airlines. First-quarter profits came in higher than expected. They're buying back stock. I feel like this is the type of quarter, and this is the type of results and what we're hearing from management, Jeff, that if we weren't talking about the airline industry, the stock would be up more than 2% today.
The airlines right now, Chris, are kind of living a Shangri-La moment. Their profits are so inflated by low fuel costs, and for better or worse, they're spending the windfall.
Because, we don't know when this is going to happen again.
[ laughs] Yeah. The better category, a lot of airlines -- and there are only a small handful of major airline companies in the country right now, and the world, which is a good thing for the industry -- but the majors are buying new airplanes, scheduling that out years ahead of time. They're increasing pay, and Delta and American have moved to profit sharing as well. So employees are benefiting. But while these costs are going up, airfare is holding steady or even going down a bit. So revenue per passenger mile is down. It was down 5% this quarter, and it's been down the past many quarters. So there's a lot of good here, but a lot that has Wall Street concerned, and that's keeping these stocks really, really cheap still.
Is it really just all about the gas prices? I get that that has a beneficial effect, not just for Delta, but for all of these airlines.
Well, which, Delta, earnings were up 27% this quarter to about $950 million, and about $700 million of that was from fuel savings.
[ laughs]
So a huge amount is thanks to fuel.
OK, so "yes" is the answer to that.
Yes.
It's basically all about the fuel. But, haven't -- and, JP, you're significantly younger than Jeff and I -- but in my lifetime, I feel like the airlines have gotten more efficient. I get the gas price. I understand why that matters a great deal. But I also feel like they're just more efficient, because I don't even remember the last time I was on a plane that wasn't, if not completely filled, 95% filled.
Yeah, I can't really remember -- except, maybe a couple red-eyes, where you're flying and it's like, "Oh, I can move to whatever seat I want." It seems like they're doing a much better job of maxing out that capacity whenever they get the chance to do so.
That is true. And Chris and I were talking before the show about the late '90s, even early in the millennium where you'd have a whole row to yourself no matter where you flew. I flew from here in D.C. to Chicago many times back and forth, where the plane was maybe a third full.
Right.
You could feel it was easier to take off, it's like, "Oh, and we're up in the air! We're so light!" But probably the best thing Delta's CEO said is that, if they don't start making more money, more revenue per passenger mile, then they will make adjustments to their fall capacity levels, meaning they'll bring capacity down a little bit. I think that's why American is up today, and Delta as well. The airlines, they were using their proceeds to go after market share, add new routes and whatnot, but there's been a little bit more capacity added, perhaps, than is needed. And that'll probably dial back down, especially once fuel costs go up again.
I completely understand the trepidation on Wall Street about the airlines as an industry. But one of the pieces of the story last week, with Alaska Air buying Virgin America , was the fact that you had Richard Branson talking about how tough it is for start-up airlines to get gates. And at the end of the day, for all of its flaws, this is an industry with an incredibly high barrier to entry.
And incredibly high costs, too. The gates are expensive. Exactly. Getting the routes that are profitable is extremely difficult. And that's why all this consolidation has happened, too, and that's been a good thing for the industry, and that's what has me still believing that --
[ laughs]
JP is laughing, and maybe rightly so. Usually I'm a skeptic. But in this case, I believe the airlines have learned, and there's few enough of them now that they can maintain profits. Now, they might be very slim profits when the economy turns or fuel prices go up, when the economy turns weaker.
Are you saying the magic four words? Are you saying, "This time it's different?"
Yes, he is saying that.
It may not be indefinite, but it is at least for a time period. Like, they learned the lessons of the past with the most recent bankruptcies. So for the next handful of years, at least, things will be profitable. Now, they might forget those lessons and make the same mistakes again, cycle through again, but hopefully not for a long time.
The article Why Delta Air Lines, Inc.'s Solid Earnings Report Led to Only a 2% Pop originally appeared on Fool.com.
Chris Hillhas no position in any stocks mentioned.Jeff Fischerhas the following options: long January 2017 $30 calls on American Airlines Group. JP Bennetthas no position in any stocks mentioned. The Motley Fool has the following options: long January 2017 $35 calls on American Airlines Group. The Motley Fool recommends Virgin America. Try any of our Foolish newsletter servicesfree for 30 days . We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. 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 this segment from the MarketFoolery podcast, Chris Hill talks to Jeff Fischer and JP Bennett about a few areas Delta and the other big airlines still need to work on, how they've changed their game for the better in the past decade or so, and why, just maybe, investors should give them the benefit of the doubt this time around. But one of the pieces of the story last week, with Alaska Air buying Virgin America , was the fact that you had Richard Branson talking about how tough it is for start-up airlines to get gates. Chris Hillhas no position in any stocks mentioned.Jeff Fischerhas the following options: long January 2017 $30 calls on American Airlines Group.
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The better category, a lot of airlines -- and there are only a small handful of major airline companies in the country right now, and the world, which is a good thing for the industry -- but the majors are buying new airplanes, scheduling that out years ahead of time. Chris Hillhas no position in any stocks mentioned.Jeff Fischerhas the following options: long January 2017 $30 calls on American Airlines Group. The Motley Fool has the following options: long January 2017 $35 calls on American Airlines Group.
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In this segment from the MarketFoolery podcast, Chris Hill talks to Jeff Fischer and JP Bennett about a few areas Delta and the other big airlines still need to work on, how they've changed their game for the better in the past decade or so, and why, just maybe, investors should give them the benefit of the doubt this time around. I feel like this is the type of quarter, and this is the type of results and what we're hearing from management, Jeff, that if we weren't talking about the airline industry, the stock would be up more than 2% today. The better category, a lot of airlines -- and there are only a small handful of major airline companies in the country right now, and the world, which is a good thing for the industry -- but the majors are buying new airplanes, scheduling that out years ahead of time.
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Chris Hill: Let's start with Delta Airlines. I flew from here in D.C. to Chicago many times back and forth, where the plane was maybe a third full. And that's why all this consolidation has happened, too, and that's been a good thing for the industry, and that's what has me still believing that -- [ laughs] JP is laughing, and maybe rightly so.
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7989.0
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2016-04-26 00:00:00 UTC
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3 Big Airliners Quickly Losing Altitude
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AAL
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https://www.nasdaq.com/articles/3-big-airliners-quickly-losing-altitude-2016-04-26
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nan
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nan
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InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips
While U.S. equities remain in stasis ahead of Wednesday's Federal Reserve policy announcement - with the Dow Jones Industrial Average parked just under the 18,000 level - a number of major industry groups are on the move.
Source: Grab Media
One such industry is airlines, which are being hammered here on disappointing earnings results. The broad theme is disappointing revenue and increased competition. Headwinds include added industry capacity and lower fuel surcharges.
10 S&P 500 Dividend Stocks to Buy Now
With that, a number of stocks are losing altitude fast. Here are three to watch.
Airliners Losing Altitude: American Airlines Group Inc (AAL)
American Airlines Group Inc ( AAL ) shares are on the decline after reporting a first-quarter earnings beat and a $2 billion share buyback program marred by in-line revenues and weak forward guidance.
On April 22, the company report earnings of $1.25 per share - six cents ahead of estimates - on a 4% year-over-year drop in sales to $9.44 billion.
But consolidated passenger revenue per average seat mile was 12.40 cents, down 7.5%. Moreover, management guided passenger revenue per available seat mile to down 7% to 8% from down 6% to 7% on April 11.
The company will next report results on July 22 before the bell. Analysts are looking for earnings of $1.63 per share on revenues of $10.3 billion.
Airliners Losing Altitude: Delta Airlines, Inc. (DAL)
Delta ( DAL ) initially moved higher after reporting an earnings beat on April 14, but then doubts about future guidance crept in.
Earnings came in at $1.32 per share on $9.25 billion in revenue, a 1.5% drop from last year. Passenger unit revenue fell 4.6% on dollar strength and increased capacity. Investors had been betting on a turnaround in Prasm on the anticipation of lower capacity.
Boeing Co: Will BA Profits Soar or Stall Out?
But it's slow in coming: Management guided Prasm down 3.5% for Q2. The company will next report results on July 20 before the bell. Analysts are looking for revenues of $1.85 per share on revenues of $10.6 billion.
Airliners Losing Altitude: United Continental Holdings Inc (UAL)
United Airlines ( UAL ) shares are being hit after lowering its passenger revenue guidance for the second quarter to down 6.8% to 8.5% vs. down 7.4% in Q1. Management noted that demand isn't keeping pace with supply increases. This despite reporting better-than-expected earnings of $1.23 per share (vs. $1.18 expected) on in-line revenues.
Analysts at Cowen downgraded the stock on lower Prasm guidance and structural issues.
The company will report results next on July 21 before the bell. Analysts are looking for earnings of $2.52 per share on revenues of $9.37 billion.
Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers.
The post 3 Big Airliners Quickly Losing Altitude 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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Airliners Losing Altitude: American Airlines Group Inc (AAL) American Airlines Group Inc ( AAL ) shares are on the decline after reporting a first-quarter earnings beat and a $2 billion share buyback program marred by in-line revenues and weak forward guidance. InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips While U.S. equities remain in stasis ahead of Wednesday's Federal Reserve policy announcement - with the Dow Jones Industrial Average parked just under the 18,000 level - a number of major industry groups are on the move. On April 22, the company report earnings of $1.25 per share - six cents ahead of estimates - on a 4% year-over-year drop in sales to $9.44 billion.
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Airliners Losing Altitude: American Airlines Group Inc (AAL) American Airlines Group Inc ( AAL ) shares are on the decline after reporting a first-quarter earnings beat and a $2 billion share buyback program marred by in-line revenues and weak forward guidance. Airliners Losing Altitude: Delta Airlines, Inc. (DAL) Delta ( DAL ) initially moved higher after reporting an earnings beat on April 14, but then doubts about future guidance crept in. Airliners Losing Altitude: United Continental Holdings Inc (UAL) United Airlines ( UAL ) shares are being hit after lowering its passenger revenue guidance for the second quarter to down 6.8% to 8.5% vs. down 7.4% in Q1.
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Airliners Losing Altitude: American Airlines Group Inc (AAL) American Airlines Group Inc ( AAL ) shares are on the decline after reporting a first-quarter earnings beat and a $2 billion share buyback program marred by in-line revenues and weak forward guidance. Airliners Losing Altitude: Delta Airlines, Inc. (DAL) Delta ( DAL ) initially moved higher after reporting an earnings beat on April 14, but then doubts about future guidance crept in. Airliners Losing Altitude: United Continental Holdings Inc (UAL) United Airlines ( UAL ) shares are being hit after lowering its passenger revenue guidance for the second quarter to down 6.8% to 8.5% vs. down 7.4% in Q1.
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Airliners Losing Altitude: American Airlines Group Inc (AAL) American Airlines Group Inc ( AAL ) shares are on the decline after reporting a first-quarter earnings beat and a $2 billion share buyback program marred by in-line revenues and weak forward guidance. On April 22, the company report earnings of $1.25 per share - six cents ahead of estimates - on a 4% year-over-year drop in sales to $9.44 billion. The post 3 Big Airliners Quickly Losing Altitude appeared first on InvestorPlace .
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7990.0
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2016-04-25 00:00:00 UTC
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Aircraft Parts Supplier Heico Riding Multiple Tailwinds
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AAL
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https://www.nasdaq.com/articles/aircraft-parts-supplier-heico-riding-multiple-tailwinds-2016-04-25
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nan
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nan
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When commercial and military aircraft parts wear down, Heico ( HEI ) is often the go-to supplier for replacements -- and lately more of those parts have been showing their age.
It's for a good reason, though. They're getting used more, thanks in part to lower oil prices .
"With lower oil prices, airlines are continuing to fly the older aircraft more; they've slowed down their rate of retirement substantially," Kenneth Herbert, an analyst at Canaccord Genuity, told IBD. "Older planes are much less fuel-efficient than new ones, but with oil at $40 a barrel rather than $100 a barrel, the higher cost of operating older aircraft is not nearly as bad."
That's just one of the reasons Heico is doing barrel rolls right now. Heico is drawing revenue from a number of sources, and sales are expected to accelerate from single-digit growth last year to double-digits this year.
Part of that will come from an acquisition of a parts supplier to military helicopters, but in Heico's first fiscal quarter, which ended Jan. 31, the higher growth rate had already started showing up. Revenue grew 14% over the prior year to $306.2 million. Adjusted earnings rose 20% to 49 cents a share.
The company raised its 2016 forecast on revenue and now expects growth of 14% to 15% vs. 8% to 10% previously, equating to $1.35 billion-$1.38 billion. It also raised its forecast for net income growth to 10% to 13% from 8% to 10%. Analysts expect total revenue to climb 15% this year to $1.37 billion, while per-share earnings are seen rising 16% to $2.28 a share, according to Thomson Reuters.
Heico has the benefit of drawing business from both the commercial and military side of aerospace. So if there is a reduction in military spending, its commercial side can pick up some of the slack. But that's not the case right now.
"The U.S. defense budget is rising again," Victor Mendelson, Heico's co-president, told IBD, adding that foreign military budgets in the Middle East and among some other U.S. allies such as South Korea and Japan are also rising. "NATO countries are involved in Syria and other hot spots. If these places heat up, there is a need for things we make."
In fact, both sides of the equation are humming, Mendelson says.
"Air traffic is up," Mendelson said. "It means that there are more planes flying, and there is greater flight frequency. The more the aircraft is utilized, the more parts Heico delivers. It's wear and tear."
Heico manufactures and distributes a wide range of aircraft replacement parts, including combustion chambers for engines, fuel shut-off valves, back-up power supplies for emergency exit lighting, power converters on GPS satellites and even underwater-locator beacons, or "pingers," for cockpit voice and data recorders, commonly known as black boxes.
"Everything we do is a highly specialized niche," Mendelson said.
Heico's military group is the smaller of its two main business units, with the flight support group the biggest. Revenue in the smaller division grew 17% to $104.2 million, reflecting acquisitions since last year, as well as 4% organic growth.
First-quarter sales in the flight support group, which includes commercial aviation, rose 12% to $204.6 million, even on softer organic sales in its repair and overhaul services product line, as well as a slowdown in South America.
Mendelson's co-president is his brother, Eric. Their father, Laurans Mendelson, is chairman and chief executive. The three took over the company in 1990, when it had just $26.5 million in sales, and then began an aggressive acquisition strategy to expand the firm's product line. The South Florida-based company took in nearly $1.2 billion last year.
"We knew nothing about aerospace, manufacturing or engineering. We knew about business," said Victor Mendelson. "We thought we had a good idea -- to expand the parts business."
Heico is a bit like a generic-drug maker. It provides low-cost copies of original products, which are regulated by the Federal Aviation Administration.
"Our replacement parts demand is driven by aircraft use and the airlines' need to save money," said Mendelson. "Our replacement parts are sold for 20% to 30%, less than OEM (original equipment manufacturer) parts. We essentially copy the parts on the original plane."
Heico competes with smaller parts makers, as well as with the likes of General Electric ( GE ) and United Technologies ' ( UTX ) Pratt & Whitney division. Heico supplies parts for just about every airline in the world, including United Continental ( UAL ), American Airlines ( AAL ), Lufthansa, British Airways and JetBlue Airways (JBLU).
Heico's $255 million acquisition of Robertson Fuel Systems in January now provides it with crash-worthy auxiliary fuel systems for military helicopters such as Lockheed Martin 's (LMT) Black Hawk and Boeing 's (BA) Apache and Chinook. Management increased its outlook for its electronic technologies group -- where its military work is handled -- to reflect the Robertson acquisition.
Though U.S. military spending is on the rise, proposed spending on some heavy helicopters will likely be pushed back another year. Still, Heico increased its revenue estimate in its electronic technologies group for the current year to growth of 27% to 30% to include gains from Robertson.
"Because Robertson's equipment has been made standard on more helicopters, that offsets the negative effect of fewer helicopters being produced," Victor Mendelson said.
Robertson was Heico's largest acquisition in a long string of buyouts, starting in 1990 when the company, under its new leaders, began to branch out from its original focus on aircraft engine parts.
It's made 60 purchases since then, eight of them last year alone. One was the purchase of 80% of privately held Aerospace & Commercial Technologies, which provides products and services to maintain the F-16 fighter fleet.
About half of Heico's revenue growth comes from acquisitions, and the rest from organic growth.
"We're working on a number of possibilities now," Mendelson said of potential candidates.
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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Heico supplies parts for just about every airline in the world, including United Continental ( UAL ), American Airlines ( AAL ), Lufthansa, British Airways and JetBlue Airways (JBLU). "With lower oil prices, airlines are continuing to fly the older aircraft more; they've slowed down their rate of retirement substantially," Kenneth Herbert, an analyst at Canaccord Genuity, told IBD. Heico competes with smaller parts makers, as well as with the likes of General Electric ( GE ) and United Technologies ' ( UTX ) Pratt & Whitney division.
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Heico supplies parts for just about every airline in the world, including United Continental ( UAL ), American Airlines ( AAL ), Lufthansa, British Airways and JetBlue Airways (JBLU). "The U.S. defense budget is rising again," Victor Mendelson, Heico's co-president, told IBD, adding that foreign military budgets in the Middle East and among some other U.S. allies such as South Korea and Japan are also rising. Revenue in the smaller division grew 17% to $104.2 million, reflecting acquisitions since last year, as well as 4% organic growth.
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Heico supplies parts for just about every airline in the world, including United Continental ( UAL ), American Airlines ( AAL ), Lufthansa, British Airways and JetBlue Airways (JBLU). When commercial and military aircraft parts wear down, Heico ( HEI ) is often the go-to supplier for replacements -- and lately more of those parts have been showing their age. Part of that will come from an acquisition of a parts supplier to military helicopters, but in Heico's first fiscal quarter, which ended Jan. 31, the higher growth rate had already started showing up.
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Heico supplies parts for just about every airline in the world, including United Continental ( UAL ), American Airlines ( AAL ), Lufthansa, British Airways and JetBlue Airways (JBLU). Heico is drawing revenue from a number of sources, and sales are expected to accelerate from single-digit growth last year to double-digits this year. Revenue in the smaller division grew 17% to $104.2 million, reflecting acquisitions since last year, as well as 4% organic growth.
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7991.0
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2016-04-25 00:00:00 UTC
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Is It Time to Give Up on American Airlines and United Airlines?
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AAL
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https://www.nasdaq.com/articles/it-time-give-american-airlines-and-united-airlines-2016-04-25
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nan
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nan
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Airline industry profits have soared in the past year as falling oil prices have led to huge cost savings. However, for most airlines, this profit growth has been marred by steep unit revenue declines.
Having unit revenue decline when fuel costs are plunging isn't necessarily a problem. In 2015, United Continental 's adjusted pre-tax profit more than doubled despite a 4.4% year-over-year decline in passenger revenue per available seat mile (PRASM). At American Airlines , adjusted pre-tax profit jumped 51% year over year, even though PRASM sank 5.4%.
United Airlines' adjusted profit more than doubled in 2015.
However, airlines' year-over-year fuel cost savings are starting to fade. Meanwhile, unit revenue continues to decline sharply at both United and American. Is this a signal that investors need to avoid these stocks?
Unit revenue starts to undercut profit growth
Last Wednesday, United Continental reported a solid 18% year-over-year increase in pre-tax profit for Q1. Given that its fuel bill plummeted by more than $600 million, profit would have risen a lot further if United had stabilized its unit revenue trend. Instead, PRASM fell 7.4% .
More importantly, United's management projected that unit revenue will decline 6.5%-8.5% in the second quarter. At the midpoint, that's actually a little worse than its Q1 performance. As a result, the company expects to earn a pre-tax margin of 13%-15% this quarter: only slightly higher than its Q2 2015 adjusted pre-tax margin of 12.7%.
At least United Airlines is receiving enough of a benefit from lower fuel costs that its profit margin is still expanding. In effect, United is getting extra savings because it lost about $1 billion on fuel hedges last year. Its fuel-hedging losses will be much smaller in 2016.
By contrast, American Airlines hasn't hedged any of its fuel costs in recent years. As a result, its profit margin is about to start declining.
For Q1, American's pre-tax margin increased slightly to 12.9% from 12.7% a year earlier, on a 7.5% PRASM decline. Pre-tax profit actually declined modestly due to the company's lower revenue. Even worse, American Airlines expects to earn an adjusted pre-tax margin of 14%-16% in Q2 -- down from 17.2% in Q2 2015 -- on a 6%-8% drop in PRASM.
American Airlines' profit margin is set to decline year over year in Q2. Image source: American Airlines.
Capacity is growing too quickly
There are a lot of reasons for the ongoing unit revenue declines at United and American. The strong dollar has undermined revenue in international markets. Falling fuel surcharges are pressuring revenue on some international routes as well.
However, the fundamental reason for the sharp unit revenue declines is that capacity is growing much faster than demand. Executives at both companies admitted on their recent earnings calls that a lot of supply has entered the market due to low oil prices, forcing prices down. This has been a problem on both domestic and international routes.
United and American are working to stabilize revenue
Both United Continental and American Airlines expect unit revenue to continue declining in the second half of the year, but at a more moderate rate. To some extent, this just reflects the impact of easier comparisons, as their unit revenue declines accelerated in the second half of 2015.
That said, there are also fundamental improvements in the works. Collectively, airlines appear to be slowing their capacity growth, which should lead to better unit revenue trends. Additionally, United and American both plan to introduce so-called "basic economy" fares later this year. This will allow them to continue matching budget carrier fares to keep planes full while mitigating the impact of discount fares on unit revenue.
Will the fuel effect work in reverse?
Thus, there is some hope that United Airlines and American Airlines will stabilize their unit revenue by 2017. Profit margins might be down a bit from the record levels set over the past year, but would still be quite high by historical standards.
Furthermore, both stocks are quite cheap, trading for under seven times projected 2016 earnings. That's less than half of the stock market average. This indicates that some level of profit decline is already incorporated in the current stock prices.
The key question is what will happen when fuel prices rebound, which will presumably occur sooner or later. In that situation, even flat unit revenue wouldn't be good enough to avoid severe margin compression.
American Airlines President Scott Kirby remarked on Friday that in recent years, fares have usually risen when fuel prices have increased, with a lag of three to six months. If that pattern holds in the future, then investors shouldn't be too concerned about the unit revenue drops today.
Industry consolidation has given the top four U.S. airlines a combined market share of more than 80%, which makes it easier for them to cut capacity rather than chase market share in a rising-fuel environment. That's good news for investors. But until this scenario actually plays out, the bull case for United Continental and American Airlines rests on an uncertain foundation.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
The article Is It Time to Give Up on American Airlines and United Airlines? originally appeared on Fool.com.
Adam Levine-Weinberg owns shares of United Continental Holdings, and is long Jan. 2017 $30 calls on American Airlines Group. The Motley Fool is long Jan. 2017 $35 calls on American Airlines Group. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. 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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Airline industry profits have soared in the past year as falling oil prices have led to huge cost savings. In 2015, United Continental 's adjusted pre-tax profit more than doubled despite a 4.4% year-over-year decline in passenger revenue per available seat mile (PRASM). American Airlines President Scott Kirby remarked on Friday that in recent years, fares have usually risen when fuel prices have increased, with a lag of three to six months.
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Unit revenue starts to undercut profit growth Last Wednesday, United Continental reported a solid 18% year-over-year increase in pre-tax profit for Q1. Even worse, American Airlines expects to earn an adjusted pre-tax margin of 14%-16% in Q2 -- down from 17.2% in Q2 2015 -- on a 6%-8% drop in PRASM. United and American are working to stabilize revenue Both United Continental and American Airlines expect unit revenue to continue declining in the second half of the year, but at a more moderate rate.
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Unit revenue starts to undercut profit growth Last Wednesday, United Continental reported a solid 18% year-over-year increase in pre-tax profit for Q1. United and American are working to stabilize revenue Both United Continental and American Airlines expect unit revenue to continue declining in the second half of the year, but at a more moderate rate. Thus, there is some hope that United Airlines and American Airlines will stabilize their unit revenue by 2017.
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American Airlines' profit margin is set to decline year over year in Q2. United and American are working to stabilize revenue Both United Continental and American Airlines expect unit revenue to continue declining in the second half of the year, but at a more moderate rate. Thus, there is some hope that United Airlines and American Airlines will stabilize their unit revenue by 2017.
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7992.0
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2016-04-23 00:00:00 UTC
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1 More Headache Coming for U.S. Legacy Airlines
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AAL
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https://www.nasdaq.com/articles/1-more-headache-coming-us-legacy-airlines-2016-04-23
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nan
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nan
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Since early 2015, unit revenue has declined steadily at the three biggest U.S. airlines: American Airlines , Delta Air Lines , and United Continental . Unit revenue trends have been particularly weak on international routes, due to factors like the strong dollar and persistent overcapacity.
Now the three legacy carriers have one more headache to look forward to in the key transatlantic market. Earlier this month, the U.S. Department of Transportation tentatively approved Norwegian Air Shuttle's plan to operate long-haul flights to the U.S. using an Irish subsidiary. This paves the way for further expansion by this disruptive budget carrier.
Norwegian shakes up transatlantic flying
Norwegian began flying to the U.S. in 2013 on a new long-haul fleet made up of Boeing 787 Dreamliners. Since then, it has made waves by offering extremely cheap fares on routes that hadn't had much competition previously.
Norwegian offers cheap fares on U.S.-Europe flights. Image source: Norwegian Air Shuttle.
For example, Norwegian was offering one-way fares from New York to London for as little as $255 even before fuel prices plummeted. That was less than half the price of the cheapest one-way ticket offered by any of its competitors.
Today, Norwegian operates 10 Dreamliners, so its market share for transatlantic flights remains quite low. However, it is contributing to overcapacity in that market, which has been noted by both Delta Air Lines and United Continental during their earnings calls this month.
Incumbents protest Norwegian's strategy
To help expand its presence in the U.S., Norwegian has wanted to use a long-haul subsidiary set up in Ireland. This proposal has elicited strong objections from Delta, American, and United, as well as their labor unions.
The legacy carriers and their unions allege that Norwegian Air Shuttle only wants to incorporate in Ireland in order to skirt U.S. and Norwegian labor laws. They have pointed to Norwegian's use of contractors hired through a Singapore employment agency rather than full-time employees and its plans to base flight crews in Thailand. (Norwegian has since promised to base its flight crews in Europe.)
Norwegian does pay less than the U.S. legacy carriers. However, the goal of its Irish subsidiary wasn't so much to outsource labor to a low-cost country as to avoid being stuck in a high-cost country. (Norway's per-capita GDP has been nearly double that of the U.S. in recent years, though the sharp drop in oil prices since 2014 has narrowed the gap.)
Norwegian's cost advantage is mainly driven by high utilization of its Boeing 787 fleet, fitting more passengers onto each plane, and the superior fuel efficiency of the Dreamliner. Labor costs are a much smaller part of the equation.
Norwegian fits more seats on its 787s than rivals like United Airlines. Image source: The Motley Fool.
Bad news for U.S. airlines, but great news for Boeing
In any case, the U.S. government didn't find any legal justification for blocking Norwegian from using its Irish subsidiary. As a result, American, Delta, and United are going to have to find a way to compete with Norwegian's cheap fares.
Indeed, there's a lot more competition coming. Norwegian Air ordered 19 787-9s from Boeing last October. It has also agreed to Dreamliner deals with various aircraft leasing firms. In total, it currently plans to quadruple its long-haul fleet to 40 Dreamliners by 2020.
After the DOT announced its tentative approval for Norwegian's Irish long-haul subsidiary, Norwegian CEO Bjorn Kjos stated that the company may exercise options for another 10 787-9s.
These planes won't all be deployed on routes to the U.S. -- Norwegian is also looking at flying to places like Canada, South America, and South Africa. But the massive fleet expansion will inevitably put steady upward pressure on transatlantic capacity, forcing the legacy carriers to either fight back with lower fares or cut their own capacity.
Norwegian's expansion isn't all bad news for U.S. business, though. Norweigan is quickly becoming one of the biggest fans of Boeing's Dreamliner. Many analysts have been worried about demand for Boeing's widebody planes like the 787. If Norwegian keeps growing rapidly beyond 2020, there could be a lot more orders coming for Boeing.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
The article 1 More Headache Coming for U.S. Legacy Airlines originally appeared on Fool.com.
Adam Levine-Weinberg owns shares of The Boeing Company and United Continental Holdings, and is long January 2017 $40 calls on Delta Air Lines, and long January 2017 $30 calls on American Airlines Group. The Motley Fool is long January 2017 $35 calls on American Airlines Group. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. 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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Earlier this month, the U.S. Department of Transportation tentatively approved Norwegian Air Shuttle's plan to operate long-haul flights to the U.S. using an Irish subsidiary. They have pointed to Norwegian's use of contractors hired through a Singapore employment agency rather than full-time employees and its plans to base flight crews in Thailand. Norwegian's cost advantage is mainly driven by high utilization of its Boeing 787 fleet, fitting more passengers onto each plane, and the superior fuel efficiency of the Dreamliner.
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Since early 2015, unit revenue has declined steadily at the three biggest U.S. airlines: American Airlines , Delta Air Lines , and United Continental . Earlier this month, the U.S. Department of Transportation tentatively approved Norwegian Air Shuttle's plan to operate long-haul flights to the U.S. using an Irish subsidiary. Adam Levine-Weinberg owns shares of The Boeing Company and United Continental Holdings, and is long January 2017 $40 calls on Delta Air Lines, and long January 2017 $30 calls on American Airlines Group.
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Norwegian shakes up transatlantic flying Norwegian began flying to the U.S. in 2013 on a new long-haul fleet made up of Boeing 787 Dreamliners. The legacy carriers and their unions allege that Norwegian Air Shuttle only wants to incorporate in Ireland in order to skirt U.S. and Norwegian labor laws. Adam Levine-Weinberg owns shares of The Boeing Company and United Continental Holdings, and is long January 2017 $40 calls on Delta Air Lines, and long January 2017 $30 calls on American Airlines Group.
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Earlier this month, the U.S. Department of Transportation tentatively approved Norwegian Air Shuttle's plan to operate long-haul flights to the U.S. using an Irish subsidiary. Norwegian shakes up transatlantic flying Norwegian began flying to the U.S. in 2013 on a new long-haul fleet made up of Boeing 787 Dreamliners. Norwegian's cost advantage is mainly driven by high utilization of its Boeing 787 fleet, fitting more passengers onto each plane, and the superior fuel efficiency of the Dreamliner.
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7993.0
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2016-04-22 00:00:00 UTC
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Why Did Hawaiian Holdings (HA) Close 11% Down on the Day
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AAL
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https://www.nasdaq.com/articles/why-did-hawaiian-holdings-ha-close-11-down-day-2016-04-22
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nan
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nan
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Image via www.travelagentcentral.com
Airliner Hawaiian Holdings (HA) released its fiscal 2016 first quarter results yesterday and many investors were not too happy with the results. Shares of the airline company closed on the day 11.36% down due to weaker-than-expected revenue figures.
Despite outperforming our EPS estimate by 6.67%, Hawaiian Holdings reported $551.18 million, which is noticeably, but not drastically, lower than our revenue estimate of $556 million.
Hawaiian Holdings president and chief executive officer Mark Dunkerley was not deterred from not meeting revenue estimates. "The outstanding first quarter results are a strong start to 2016," said Mr. Dunkerley. "Solid demand for travel to Hawai'i, manageable industry capacity growth, and the low cost of fuel combined with the exceptional service that our employees deliver to our guests propelled our record results this quarter. Looking ahead, our outlook is for these positive trends to continue reinforcing our confidence that 2016 will be a great year."
Some of Hawaiian Holdings' competitors fared better with regards to its earnings results and its recent stock prices.
Alaska Air Group (ALK) and Southwest Airlines (LUV) both reported their earnings yesterday to more promising results than Hawaiian Holdings. Alaska Air's adjusted earnings came in at $1.45 per share, outperforming our estimate of $1.42, and Southwest's earnings came in at $0.88 per share while our estimates were $0.84 per share.
Alaska Air's' revenues of $1.35 billion narrowly beat out our consensus estimate of $1.34 billion, with the top line growing 6% on a year-over-year basis, and Southwest's revenue figure of $4.82 billion narrowly eclipsed our $4.81 billion estimate as well and increased 9.3% on a year-over-year basis.
United Continental Holdings (UAL) also reported its fiscal 2016 first quarter earnings yesterday to mixed results. United's EPS figure of $1.23 per share beat our estimate by 6 cents, yet 19.1% on a year-over-year basis owing to higher taxes which mitigated the positive impact of low fuel costs.
American Airlines (AAL) reported its fiscal 2016 first quarter earnings early this morning with earnings per share of $1.25, 7 cents more than our estimate. Operating revenues were $9.44 billion, just beating our consensus estimate of $9.43 billion but representing a 4% year-over-year decrease.
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 >>
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SOUTHWEST AIR (LUV): Free Stock Analysis Report
HAWAIIAN HLDGS (HA): Free Stock Analysis Report
ALASKA AIR GRP (ALK): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines (AAL) reported its fiscal 2016 first quarter earnings early this morning with earnings per share of $1.25, 7 cents more than our estimate. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. "Solid demand for travel to Hawai'i, manageable industry capacity growth, and the low cost of fuel combined with the exceptional service that our employees deliver to our guests propelled our record results this quarter.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) reported its fiscal 2016 first quarter earnings early this morning with earnings per share of $1.25, 7 cents more than our estimate. Alaska Air Group (ALK) and Southwest Airlines (LUV) both reported their earnings yesterday to more promising results than Hawaiian Holdings.
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Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. American Airlines (AAL) reported its fiscal 2016 first quarter earnings early this morning with earnings per share of $1.25, 7 cents more than our estimate. Alaska Air's adjusted earnings came in at $1.45 per share, outperforming our estimate of $1.42, and Southwest's earnings came in at $0.88 per share while our estimates were $0.84 per share.
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American Airlines (AAL) reported its fiscal 2016 first quarter earnings early this morning with earnings per share of $1.25, 7 cents more than our estimate. Click to get this free report SOUTHWEST AIR (LUV): Free Stock Analysis Report HAWAIIAN HLDGS (HA): Free Stock Analysis Report ALASKA AIR GRP (ALK): Free Stock Analysis Report UNITED CONT HLD (UAL): Free Stock Analysis Report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Alaska Air's adjusted earnings came in at $1.45 per share, outperforming our estimate of $1.42, and Southwest's earnings came in at $0.88 per share while our estimates were $0.84 per share.
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7994.0
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2016-04-22 00:00:00 UTC
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American Airlines Group (AAL) Beats on Q1 Earnings
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AAL
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https://www.nasdaq.com/articles/american-airlines-group-aal-beats-on-q1-earnings-2016-04-22
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nan
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nan
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American Airlines GroupAAL came into existence following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways. The Fort Worth, Texas based company serves customers with more than 6,700 daily flights in more than 50 nations across the globe.
American Airlines Group has a healthy track record with respect to earnings. The company has delivered positive earnings surprises in each of the last four quarters, with an average beat of 1.70%.
Zacks Rank : Currently, American Airlines Group has a Zacks Rank #3 (Hold), but that could change following the company's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings : American Airlines Group beat on earnings. Adjusted earnings per share came in at $1.25, beating the Zacks Consensus Estimate of $1.18.
Revenue : Revenues of $9.44 billion were 4% below the year-ago figure. Quarterly revenues marginally beat the Zacks Consensus Estimate of $9.43 billion.
Key Stats : American Airlines Group's results in the quarter benefited from low fuel costs. This is because fuel costs account for a major chunk of an airline's operating expenses. During the quarter, the company returned more than $1.2 billion to its shareholders through the payment of $61 million in dividends and buyback of shares worth of $1.6 billion. Furthermore, the carrier also declared a dividend of $0.10 per share. The dividend will be paid on May 18, 2016, to the shareholders on May 4. We are impressed by the company's efforts to reward shareholders through stock repurchases and dividend payments. The carrier authorized an additional $2 billion buyback scheme which will end by Dec 31, 2017.
Check back later for our full write up on this American Airlines Group earnings report later!
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 >>
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
AMER AIRLINES (AAL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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American Airlines GroupAAL came into existence following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. The Fort Worth, Texas based company serves customers with more than 6,700 daily flights in more than 50 nations across the globe.
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American Airlines GroupAAL came into existence following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We have highlighted some of the key stats from this just-revealed announcement below: Earnings : American Airlines Group beat on earnings.
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American Airlines GroupAAL came into existence following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Rank : Currently, American Airlines Group has a Zacks Rank #3 (Hold), but that could change following the company's earnings report which was just released.
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American Airlines GroupAAL came into existence following the Dec 2013 merger of AMR (American Airlines' parent group) and US Airways. Click to get this free report AMER AIRLINES (AAL): Free Stock Analysis Report To read this article on Zacks.com click here. We have highlighted some of the key stats from this just-revealed announcement below: Earnings : American Airlines Group beat on earnings.
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7995.0
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2016-04-22 00:00:00 UTC
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Nasdaq 100 Movers: MSFT, ENDP
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AAL
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https://www.nasdaq.com/articles/nasdaq-100-movers-msft-endp-2016-04-22
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nan
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nan
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In early trading on Friday, shares of Endo International ( ENDP ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 5.9%. Year to date, Endo International has lost about 44.9% of its value.
And the worst performing Nasdaq 100 component thus far on the day is Microsoft Corporation ( MSFT ), trading down 7.9%. Microsoft Corporation is lower by about 7.4% looking at the year to date performance.
Two other components making moves today are American Airlines Group ( AAL ), trading down 6.1%, and Viacom ( VIAB ), trading up 3.4% on the day.
VIDEO: Nasdaq 100 Movers: MSFT, ENDP
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 6.1%, and Viacom ( VIAB ), trading up 3.4% on the day. In early trading on Friday, shares of Endo International ( ENDP ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 5.9%. And the worst performing Nasdaq 100 component thus far on the day is Microsoft Corporation ( MSFT ), trading down 7.9%.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 6.1%, and Viacom ( VIAB ), trading up 3.4% on the day. And the worst performing Nasdaq 100 component thus far on the day is Microsoft Corporation ( MSFT ), trading down 7.9%. VIDEO: Nasdaq 100 Movers: MSFT, ENDP The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 6.1%, and Viacom ( VIAB ), trading up 3.4% on the day. In early trading on Friday, shares of Endo International ( ENDP ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 5.9%. And the worst performing Nasdaq 100 component thus far on the day is Microsoft Corporation ( MSFT ), trading down 7.9%.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 6.1%, and Viacom ( VIAB ), trading up 3.4% on the day. In early trading on Friday, shares of Endo International ( ENDP ) topped the list of the day's best performing components of the Nasdaq 100 index, trading up 5.9%. And the worst performing Nasdaq 100 component thus far on the day is Microsoft Corporation ( MSFT ), trading down 7.9%.
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7996.0
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2016-04-22 00:00:00 UTC
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S&P 500 Movers: MSFT, SWN
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AAL
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https://www.nasdaq.com/articles/sp-500-movers-msft-swn-2016-04-22
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nan
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nan
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In early trading on Friday, shares of Southwestern Energy Company ( SWN ) topped the list of the day's best performing components of the S&P 500 index, trading up 15.1%. Year to date, Southwestern Energy Company registers a 72.7% gain.
And the worst performing S&P 500 component thus far on the day is Microsoft ( MSFT ), trading down 7.1%. Microsoft is lower by about 6.6% looking at the year to date performance.
Two other components making moves today are American Airlines Group ( AAL ), trading down 6.2%, and Norfolk Southern ( NSC ), trading up 8.2% on the day.
VIDEO: S&P 500 Movers: MSFT, SWN
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 6.2%, and Norfolk Southern ( NSC ), trading up 8.2% on the day. In early trading on Friday, shares of Southwestern Energy Company ( SWN ) topped the list of the day's best performing components of the S&P 500 index, trading up 15.1%. Year to date, Southwestern Energy Company registers a 72.7% gain.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 6.2%, and Norfolk Southern ( NSC ), trading up 8.2% on the day. In early trading on Friday, shares of Southwestern Energy Company ( SWN ) topped the list of the day's best performing components of the S&P 500 index, trading up 15.1%. Year to date, Southwestern Energy Company registers a 72.7% gain.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 6.2%, and Norfolk Southern ( NSC ), trading up 8.2% on the day. In early trading on Friday, shares of Southwestern Energy Company ( SWN ) topped the list of the day's best performing components of the S&P 500 index, trading up 15.1%. VIDEO: S&P 500 Movers: MSFT, SWN The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Two other components making moves today are American Airlines Group ( AAL ), trading down 6.2%, and Norfolk Southern ( NSC ), trading up 8.2% on the day. In early trading on Friday, shares of Southwestern Energy Company ( SWN ) topped the list of the day's best performing components of the S&P 500 index, trading up 15.1%. And the worst performing S&P 500 component thus far on the day is Microsoft ( MSFT ), trading down 7.1%.
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7997.0
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2016-04-22 00:00:00 UTC
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Why Hawaiian Holdings, Inc. Stock Plummeted Today
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AAL
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https://www.nasdaq.com/articles/why-hawaiian-holdings-inc-stock-plummeted-today-2016-04-22
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nan
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nan
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What: Shares of Hawaiian Airlines parent Hawaiian Holdings, were sinking today after reporting first-quarter earnings report last night. The stock closed down 11.4%.
So what: Hawaiian traded mostly sideways after releasing earnings last night, but the stock quickly began falling once trading opened today and was down nearly 10% by 9:45 a.m. ET. That pattern indicates that there was another factor pushing the stock down besides the earnings report. Airline stocks in general have sold off over the last two sessions on weak reports, and American Airlines , which reported earnings this morning, fell 4.4% today.
Hawaiian Holdings stock had doubled since October prior to last night's report so today's pullback may just be corrective selling after the rally. As for the report itself, the company said adjusted EPS more than doubled to $0.80, beating estimates of $0.76, while revenue increased 2% to $551 million, short of expectations.
CEO Mark Dunkerley called the first-quarter results "outstanding," adding, "Solid demand for travel to Hawaii, manageable industry capacity growth, and the low cost of fuel combined for record results in the quarter."
Now what: Hawaiian's guidance for the current quarter called for cost per average seat mile to rise faster than revenue, but for the full year that trend is reversed, with revenue rising faster. With essentially all of the airlines reporting earnings this week, investors seem to be nervous about the usual issues in the industry, such as overcapacity, rising oil prices , and rising cost per seat mile, but Hawaiian seems to be in a good position to keep growing profit. I'd attribute today's pullback to the strong recent growth, as the airline remains one of the best-managed and best-performing companies in the industry.
A secret billion-dollar stock opportunity
The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .
The article Why Hawaiian Holdings, Inc. Stock Plummeted Today originally appeared on Fool.com.
Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has the following options: long January 2017 $35 calls on American Airlines Group. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
Copyright © 1995 - 2016 The Motley Fool, LLC. All rights reserved. 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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Hawaiian Holdings stock had doubled since October prior to last night's report so today's pullback may just be corrective selling after the rally. As for the report itself, the company said adjusted EPS more than doubled to $0.80, beating estimates of $0.76, while revenue increased 2% to $551 million, short of expectations. I'd attribute today's pullback to the strong recent growth, as the airline remains one of the best-managed and best-performing companies in the industry.
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What: Shares of Hawaiian Airlines parent Hawaiian Holdings, were sinking today after reporting first-quarter earnings report last night. Now what: Hawaiian's guidance for the current quarter called for cost per average seat mile to rise faster than revenue, but for the full year that trend is reversed, with revenue rising faster. With essentially all of the airlines reporting earnings this week, investors seem to be nervous about the usual issues in the industry, such as overcapacity, rising oil prices , and rising cost per seat mile, but Hawaiian seems to be in a good position to keep growing profit.
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What: Shares of Hawaiian Airlines parent Hawaiian Holdings, were sinking today after reporting first-quarter earnings report last night. Airline stocks in general have sold off over the last two sessions on weak reports, and American Airlines , which reported earnings this morning, fell 4.4% today. With essentially all of the airlines reporting earnings this week, investors seem to be nervous about the usual issues in the industry, such as overcapacity, rising oil prices , and rising cost per seat mile, but Hawaiian seems to be in a good position to keep growing profit.
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What: Shares of Hawaiian Airlines parent Hawaiian Holdings, were sinking today after reporting first-quarter earnings report last night. Hawaiian Holdings stock had doubled since October prior to last night's report so today's pullback may just be corrective selling after the rally. With essentially all of the airlines reporting earnings this week, investors seem to be nervous about the usual issues in the industry, such as overcapacity, rising oil prices , and rising cost per seat mile, but Hawaiian seems to be in a good position to keep growing profit.
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7998.0
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2016-04-22 00:00:00 UTC
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Agree To Purchase American Airlines Group At $23, Earn 7.7% Using Options
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AAL
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https://www.nasdaq.com/articles/agree-purchase-american-airlines-group-23-earn-77-using-options-2016-04-22
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nan
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nan
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Investors considering a purchase of American Airlines Group Inc (Symbol: AAL) shares, but cautious about paying the going market price of $37.79/share, might benefit from considering selling puts among the alternative strategies at their disposal. One interesting put contract in particular, is the January 2018 put at the $23 strike, which has a bid at the time of this writing of $1.77. Collecting that bid as the premium represents a 7.7% return against the $23 commitment, or a 4.4% annualized rate of return (at Stock Options Channel we call this the YieldBoost ).
Selling a put does not give an investor access to AAL's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. And the person on the other side of the contract would only benefit from exercising at the $23 strike if doing so produced a better outcome than selling at the going market price. ( Do options carry counterparty risk? This and six other common options myths debunked ). So unless American Airlines Group Inc sees its shares decline 39.2% and the contract is exercised (resulting in a cost basis of $21.23 per share before broker commissions, subtracting the $1.77 from $23), the only upside to the put seller is from collecting that premium for the 4.4% annualized rate of return.
Worth considering, is that the annualized 4.4% figure actually exceeds the 1.1% annualized dividend paid by American Airlines Group Inc by 3.3%, based on the current share price of $37.79. And yet, if an investor was to buy the stock at the going market price in order to collect the dividend, there is greater downside because the stock would have to lose 39.25% to reach the $23 strike price.
Always important when discussing dividends is the fact that, 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 1.1% annualized dividend yield.
Below is a chart showing the trailing twelve month trading history for American Airlines Group Inc, and highlighting in green where the $23 strike is located relative to that history:
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 2018 put at the $23 strike for the 4.4% annualized rate of return represents good reward for the risks. 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 $37.79) to be 36%. For other put options contract ideas at the various different available expirations, visit the AAL Stock Options page of StockOptionsChannel.com.
In mid-afternoon trading on Friday, the put volume among S&P 500 components was 1.03M contracts, with call volume at 1.30M, for a put:call ratio of 0.80 so far for the day, which is unusually high compared to the long-term median put:call ratio of .65. In other words, there are lots more put buyers out there in options trading so far today than would normally be seen, as compared to call buyers. Find out which 15 call and put options traders are talking about today .
Top YieldBoost Puts 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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Investors considering a purchase of American Airlines Group Inc (Symbol: AAL) shares, but cautious about paying the going market price of $37.79/share, might benefit from considering selling puts among the alternative strategies at their disposal. Selling a put does not give an investor access to AAL's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. 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 1.1% annualized dividend yield.
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Investors considering a purchase of American Airlines Group Inc (Symbol: AAL) shares, but cautious about paying the going market price of $37.79/share, might benefit from considering selling puts among the alternative strategies at their disposal. Selling a put does not give an investor access to AAL's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. 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 1.1% annualized dividend yield.
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Investors considering a purchase of American Airlines Group Inc (Symbol: AAL) shares, but cautious about paying the going market price of $37.79/share, might benefit from considering selling puts among the alternative strategies at their disposal. Selling a put does not give an investor access to AAL's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. 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 1.1% annualized dividend yield.
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Investors considering a purchase of American Airlines Group Inc (Symbol: AAL) shares, but cautious about paying the going market price of $37.79/share, might benefit from considering selling puts among the alternative strategies at their disposal. Selling a put does not give an investor access to AAL's upside potential the way owning shares would, because the put seller only ends up owning shares in the scenario where the contract is exercised. 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 1.1% annualized dividend yield.
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7999.0
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2016-04-22 00:00:00 UTC
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American Airlines (AAL) Stock Falls Despite Earnings Beat
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AAL
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https://www.nasdaq.com/articles/american-airlines-aal-stock-falls-despite-earnings-beat-2016-04-22
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nan
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nan
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
American Airlines (NASDAQ: AAL ) posted its fiscal first-quarter results Friday .
The company beat expectations with $1.25 earnings per share versus the consensus estimate of $1.19 EPS, but these figures did not stop AAL shares from sinking.
Revenue for American Airlines' quarter fell behind expectations at $9.4 billion, missing Wall Street expectations by $40 million.
Foreign currency rates affected the airline negative, while underwhelming business in South America also pushed American Airlines' earnings down.
AAL stock is down 4% Friday.
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The post American Airlines (AAL) Stock Falls Despite Earnings Beat appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ: AAL ) posted its fiscal first-quarter results Friday . The company beat expectations with $1.25 earnings per share versus the consensus estimate of $1.19 EPS, but these figures did not stop AAL shares from sinking. AAL stock is down 4% Friday.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ: AAL ) posted its fiscal first-quarter results Friday . More From InvestorPlace Earnings Confirm It: GM Stock Is a Bargain Buy 8 Bargain Dividend Stocks to Buy Now 9 Best Cheap Stocks to Buy Now Under $9.99 The post American Airlines (AAL) Stock Falls Despite Earnings Beat appeared first on InvestorPlace . The company beat expectations with $1.25 earnings per share versus the consensus estimate of $1.19 EPS, but these figures did not stop AAL shares from sinking.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ: AAL ) posted its fiscal first-quarter results Friday . More From InvestorPlace Earnings Confirm It: GM Stock Is a Bargain Buy 8 Bargain Dividend Stocks to Buy Now 9 Best Cheap Stocks to Buy Now Under $9.99 The post American Airlines (AAL) Stock Falls Despite Earnings Beat appeared first on InvestorPlace . The company beat expectations with $1.25 earnings per share versus the consensus estimate of $1.19 EPS, but these figures did not stop AAL shares from sinking.
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InvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips American Airlines (NASDAQ: AAL ) posted its fiscal first-quarter results Friday . The company beat expectations with $1.25 earnings per share versus the consensus estimate of $1.19 EPS, but these figures did not stop AAL shares from sinking. AAL stock is down 4% Friday.
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